Innholdsfortegnelse for November 2024 i NZ Property Investor

Interest rates are a hot topic among homeowners right now. After the low-interest rate environment that saw the market booming post-Covid, the higher OCR, and associated mortgage rate rises, have had a major impact on everyone who owns property. We tackle the interest issue in this magazine, exploring the current residential housing environment and the impact interest has on it. As our writer Sally Lindsay discovers, recent interest rate drops have brought investors back into the market. Mortgage adviser Kris Pedersen says: “Investors are looking at buying if they can make the numbers stack up or close to stacking up. Only a few months ago they didn't have that level of confidence because RBNZ Governor Adrian Orr and other economists were still talking about pushing the OCR, and consequently interest…

Kiwis are moving house more frequently than in the past. New realestate.co.nz data shows people are holding on to their homes for on average just five-and-a-half years. Aucklanders move more often than other homeowners around the country – five years and three months – while at the other end of the scale Kiwis held onto their properties for the longest in Taranaki (six years and five months) and Manawatu/Whanganui (six years and four months). It shows the “forever home” may be a thing of the past. Website spokeswoman Vanessa Williams says people move for many reasons: employment opportunities, more space, accommodating aging parents, or downsizing. “This frequent movement is likely a reflection of changing lifestyle needs and opportunities across New Zealand.” JOB OPPORTUNITIES She says Auckland offers good employment opportunities…

Property management has refocused on serviceoriented and tech-enabled management, but there are still glitches that can make relationships between tenants and landlords difficult. Some difficulties that end up before the Tenancy Tribunal involve the ending of tenancies, particularly a fixedterm tenancy. Under the Residential Tenancies Act (RTA) a landlord cannot give notice to end a fixed-term tenancy early. But if landlord and tenant agree, an agreement in writing can be made. The landlord may charge a fee for ending the fixed-term early. These fees should only be their actual and reasonable costs – for example, the cost to advertise for new tenants. The Residential Tenancies Amendment Act says landlords must consider all requests from tenants to assign the tenancy and must not decline unreasonably. If a tenant needs to move…

YOUR ACCOUNTANT What is land partitioning? Partitioning occurs where two people acquire land together then subdivide the land to enable each person to own their own individual lot, partitioning the land parcel and transitioning the joint ownership of the entire lot to individual ownership of respective portions of the original lot. Prior to the introduction of section CW 3C, the act of subdividing the land, then disposing of the respective titles to individual owners, was considered a taxable disposition of the land following the subdivision process. The exemption provisions are designed to avoid a tax liability occurring when there has been no effective change in “economic ownership” following partitioning of the jointly held land. For example, two people purchase a land lot as 50/50 co-owners, each putting in half the…

NZPIF ADVOCACY CORNER I thoroughly enjoyed meeting many of you in person for the first time. It was also a wonderful way to showcase members who are demonstrating best practice in what it means to be a property investor in New Zealand through the RentSkills and Renovation of the Year awards. We have some brilliant people in our sector and it's great to see their efforts get some recognition. We have a great industry, a business that's still relatively easy to get into and one which, with a bit of enterprise, hard work and initiative, can make a good return and provide a firm financial foundation for your future and your family. On top of that you get the satisfaction of providing a quality home for your fellow Kiwis. Creating…

FINAL WORD Smoke alarms are one of the most crucial safety features in any home, significantly reducing the risk of injury or death in a fire. New Zealand law requires smoke alarms in rental properties, with clear guidelines for landlords and tenants. But who's responsible for ensuring they are in working order: landlords, tenants or property manager? This article clarifies who holds responsibility and why property managers don't perform this crucial task. LEGAL FRAMEWORK The 2016 Residential Tenancies Regulations outline rules for installing and maintaining smoke alarms in rental properties. Under this legislation, landlords are ultimately responsible for ensuring smoke alarms are installed and functional at the beginning of each new tenancy. This includes ensuring alarms meet the New Zealand standards. Landlords must install photoelectric smoke alarms hardwired or powered…

UP FRONT NEWS The CoreLogic Buyer Classification figures have shown that first home buyers (FHBs) were again a key presence in the market in September, with a 26 per cent share of property purchases. That was down a little from August, but still pretty close to a record high. By contrast, relocating owner-occupiers (ie “movers”) remained quieter than normal, with around 25 per cent of activity. It's typical for movers to be closer to 30 per cent of the market, but their activity has probably been held back lately by conditional offers and reduced confidence that they'll be able to achieve a good sale before they buy again. Meanwhile, mortgaged multiple property owners (MPOs, including investors) continue to show signs of edging back into the market. From around 21 per…

UP FRONT NEWS Property Scounts has come up a with ways to help those who can't afford rentals, through its Dream Home application, that anyone can use. “When we can't help a tenant in the normal way there are ways around the problem,” says Property Scouts franchise owner, Didi Skinner. “We have a number of options for our tenants.” As an example, a young mother with two children, who can't afford to rent a three-bedroom house on her own, has taken a slightly more expensive three-bedroom, two-bathroom house and is using one of the bedrooms for a boarder, with Property Scouts permission. “That income helps her afford the rent and gives her and her children a decent home,” Skinner says. Property Scouts will work with tenants in this situation by…

HOUSE PRICES: DOWN REINZ data shows the national median sale dropped 2.3 per cent year-on-year, from $799,000 to $781,000, and increased 2.1 per cent month-on-month from $765,000. For New Zealand, excluding Auckland, the median price declined slightly by 0.7 per cent year-on-year (only $5,000), from $700,000 to $695,000. The median price increased 2.2 per cent compared to August 2024, up from $680,000. The total number of properties sold nationally dropped 1.1 per cent compared to September last year, down from 5,881 to 5,816. Compared to August 2024, sales counts declined 3.3 per cent, from 6,015 to 5,816. OCR: DOWN The Official Cash Rate has dropped 0.5 per cent to sit at 4.75 per cent and the Reserve Bank has indicated more cuts could come at its November meeting. INTEREST RATES: DOWN After…

YOUR DEVELOPER Maintenance management is a critical aspect of long-term success for a property development. For developers with a build-to-rent strategy, who are retaining properties as landlords or who plan on selling to investors, it's essential buildings are well maintained to preserve value, as well as keep up with the requirements of property regulations. A regulation to look out for and keep ahead of the curve before its official implementation is the Healthy Homes standards, which will require a thorough investigation into maintenance management. HEALTHY HOMES As of July 1, 2025, all rental properties are required to comply with the guidelines outlined in the Healthy Homes standards. The standard is being introduced in an effort to improve the quality of rental properties in New Zealand, many of which are cold,…

Q I signed an unconditional offer for a new build the developer said would be finished in two years and that's why I signed the agreement. However, I have just been told it's actually finishing in the first quarter of next year. Can I do anything about this? A The answer depends heavily on the terms of the sale and purchase agreement you signed. Most sale and purchase agreements are contained in a standard ADLS | REINZ agreement for sale and purchase which contains standard terms and, usually, further specific terms. However, it's not unknown for some developers to contract on bespoke terms, such as Du Val. For each agreement entered you will need specific legal advice. Beyond that, it's only possible to provide generic advice on possible options. If…

YOUR RATES After the inexplicable commentary in May from the Reserve Bank about the high potential for rates to have to go higher, we saw them follow the first cut in August to the Official Cash Rate with a further 50 basis points (0.5 per cent) on October 9. This decision was strongly supported when last Wednesday the inflation numbers came in for the September quarter and we had the headline number sitting within the Reserve Bank's target range for the first time since March 2021 at 2.2 per cent. This was significantly lower than previous quarters. COUNCIL RATES This happened despite half of that quarter's inflation numbers being caused by the largest increase in council rates since 1990. It all but guarantees at this stage that we should see…

DIY PROJECT ALICE AND CALEB PEARSON First impressions count, and the exterior is the first thing to be seen when walking onto a property. By making simple upgrades to the outside, you can make your house more appealing to its future owner or occupants and create a more attractive property. Here are a few of our favourite improvements that can make a big difference to the outside of your property. FRESH LOOK A fresh coat of exterior paint can transform the look of a house, making it look clean and cared for. Opting for neutral and trending colours is the safer choice here and helps appeal to a wider audience. Keep in mind an exterior repaint can be costly, which for a weatherboard house is about every seven to 10…

YOUR COMMERCIAL PROPERTY While residential assets may be the more familiar property investment option in New Zealand, unlisted commercial property funds offer an alternative to real estate ownership in a sector that's presenting exciting growth opportunities as the country's commercial environment evolves. Oyster Property Group is one of New Zealand's leading unlisted property fund managers and for more than 20 years has provide Kiwis with easy access to commercial property investment opportunities. With $1.8 billion in assets under management, Oyster purchases quality properties of significant scale in the office, industrial and large-format retail sectors, then executes strategies on behalf of its investors to deliver monthly income and potential for long-term capital growth. Oyster Property Group's general manager – property, Fabio Pagano, says it's Oyster's robust in-house management capabilities and value-add…

YOUR REVIEW Josh, a 23-year-old from Auckland, purchased his first home six months ago. Having worked towards this dream since he was 16, he and his wife have finally made it happen. In today's market, it's unusual for a 23-year-old to get on the property ladder, especially in New Zealand's most expensive city. Here's how Josh and his wife achieved their goal of building a new life together in Auckland. WHAT MOTIVATED YOU? Josh's journey began with his first job at a bike store in Wellington. When he started working, his parents encouraged him to set up a KiwiSaver account. “I don't know how I decided to put 10 per cent of my payslip into KiwiSaver, but I just did,” he says. Although the idea of home ownership wasn't on…