Innholdsfortegnelse for April/May 2025 i NZ Property Investor

The government has announced it is making five key changes to its funding and financing toolkit. The new and improved infrastructure funding will include the following. 1. Replacing development contributions with a development levy system, which enables councils and other infrastructure providers to charge developers a proportionate amount of the total cost of capital expenditure necessary to service growth over the long term. Separate levies will be maintained for each infrastructure service, with levy zones expected to cover a predefined urban area. Levies will be calculated based on overall growth costs and expected levels of growth. 2. Establishing regulatory oversight of development levies to ensure charges are fair and appropriate by restricting local authority discretion about various matters, such as setting the methodology used to allocate project costs. 3. Increasing…

Investors again making their mark on the mortgage market First-home buyers who piled into the housing market at the end of last year and bought so they didn’t have to compete with the coming surge of investors, were on the right track. The latest Reserve Bank mortgage data shows that in January investors took out their biggest share of new mortgages in nearly four years. Of the $5.1 billion taken out in new mortgages, 22.5 per cent went to investors in January. A year ago, their share stood at just 17.8 per cent. Annual growth in new mortgages taken out by them was up 90 per cent to $1.153 billion, compared to the $607 million borrowed in January last year. In comparison, first-home buyers’ share of new mortgages at 20.2…

Rent arrears are an increasing problem for landlords as the cost-of-living crunch and unemployment has put many renters on the financial breadline. Rent arrears cases are clogging up the Tenancy Tribunal and there are calls for a separate division to handle these. Of the 6,093 landlord applications to the Tenancy Tribunal in the fourth quarter of last year, 62.25 per cent were rent arrears, with 46.80 per cent of all applications in Auckland. This works out to about 6 per cent of all tenancies going into arrears and about 2 per cent of landlords every quarter taking rent arrears cases to the tribunal. It’s not known how many landlords don’t go to the tribunal and come to an arrangement with tenants over arrears and forgo missed rent payments, or how…

With the cold weather drawing in, it’s important to make the most of your living spaces. A well-designed living space is a place where friends and family will be drawn to – a space to relax, chat, play and create memories. Open plan living is ideal – areas that connect lounge, dining, kitchen and dining spaces. It has a dual purpose – providing a functional space that is also highly functional. Before starting on any living room renovation project, it’s important to consider what you already have. What’s in your living spaces, how do they work? Where are the doors and thoroughfares, connections to other spaces, is there good natural lighting? This will help to provide a clear picture of what you are working with. Do you want to add…

To start with, what’s a non-physical change? Let’s illustrate this with an example. Joe has owned it a rental property for five years. He knows the land can be subdivided so he has successfully applied for and been granted a resource consent to divide the single lot into three. The market is filled with uncertainty though, so he cheerfully decides to “sell the dream,” and market the single undivided lot for sale with the benefit of the resource consent. Joe believes there should be no tax under the CB12 and CB13 subdivision provisions as the land has not actually been subdivided. But gaining resource consent is an example of a non-physical change to the land, and there can be tax implications from this and other types of non-physical changes. Section…

Being a property investor can be a rewarding experience, with mortgage rates reducing and signs of a recovery in the property market on the horizon, especially since we are still in a buyers’ market. But it can also come with its fair share of challenges. One of the most important decisions you’ll make (after purchasing a property) is whether to manage your properties yourself or hire a professional property manager. It is important to remember that although there are many self-managing landlords who will tell you that you will never find a property manager that will look after the property as well as you will, there are equally as many property investors who will tell you that life is way too short to manage your own rentals. So how can…

A 40-year-old Whakatane teacher had a dream to be financially independent. So, she bought her parent's home to help build her equity to buy her first investment. She had no idea it would lead to a full-blown portfolio … and financial freedom. Here’s how Te Ahuru got started in property investment. Like many investors, Te Ahuru says her journey started with a mix of curiosity, opportunity, and a bit of luck. She wasn’t from a wealthy family. But she saw people working into their 70s and she didn’t want that for herself. When she bought her first investment, she barely understood the implications of being a homeowner. All she knew was that owning an asset – that could appreciate in value while generating rental income – was a smart financial…

On the back of the February 19 50 basis point cut to the official cash rate (OCR) there has been the very welcome sight of interest rates starting with a four again. There’s been a rapid change to where we were in the middle of 2024, when interest rates were sitting in the high 6 per cent or early 7 per cent range and Reserve Bank governor Adrian Orr alluded that there was a chance of further increases. The Reserve Bank has now signalled that the pace of cuts is likely to slow, we are more likely to see future cuts being 25 basis points, rather than the 50 we have had over the last three reviews. Over the last year or so, we have been in favour of the…

Builderscrack is seeing a surge in demand for healthy homes-related property upgrades ahead of the July 1, 2025 deadline. Job data shows many landlords are now pushing to ensure their private rentals meet the standards before it becomes a compliance issue. We’ve broken down the latest compliance trends seen on Builderscrack, ways to avoid the compliance bottleneck, average costs of improvements and how to find the right tradespeople for the job to get your private rental up to standard. Rising demand for healthy homes upgrades The healthy homes standards were introduced to improve rental property conditions and ensure homes are warm, dry, and energyefficient. This includes raising the standard for heating, insulation, ventilation, moisture ingress and drainage, and draught stopping. While compliance deadlines have been phased in over the past…

The New Zealand government has passed the Overseas Investment (Facilitating Build-to-Rent Developments) Amendment Bill to support overseas investment in the build-to-rent (BTR) housing sector. This new piece of legislation aims to increase housing supply and provide more secure, affordable and quality rental options for New Zealanders. Although relatively new in New Zealand, BTR developments are a well-established accommodation offering in overseas markets and typically consist of medium-to-large scale rental properties. These developments appeal to tenants by providing stable, long-term, good-quality rental options, which in turn helps to maintain a steady demand for BTR properties. With the new legislation in place, the BTR sector in New Zealand is set for significant growth, benefiting both investors and tenants. Encouraging overseas investment A key feature of the new legislation is the introduction of…

New Zealand’s property investment landscape is constantly evolving, with new regulations, political shifts, and economic pressures shaping the industry. For property investors, staying informed and having a voice in these changes is more important than ever. That’s why the NZ Property Investors Federation (NZPIF) has introduced “advocacy membership”, a new way for investors to support fair policies and ensure their interests are heard. Why advocacy membership? Not every investor needs the networking opportunities or supplier discounts provided by a local property investors association (PIA). Some investors are no longer actively growing their portfolios, but still care about the future of property investment in New Zealand. Others want to ensure they are informed about key legislative changes without needing to attend local events. Advocacy membership is designed for those who want…

The CoreLogic Buyer Classification data has recently been showing a continued upward trend for the percentage share – and raw number – of purchases going to mortgaged multiple property owners (MPOs, including investors). Indeed, after a trough of 21 per cent in Q2 last year, mortgaged investors have now climbed back to almost 24 per cent of the market – still a touch below average, but nevertheless the highest presence since the middle of 2021. What lies behind these patterns? Clearly, the easing in the LVR rules on July 1 last year (35 per cent deposit down to 30 per cent) will have played a role, alongside the shorter bright-line test from the same date. Mortgage interest deductibility has been a factor too, which went back to 80 per cent…

Despite the rise of online tools, most Kiwis still see the value of working with real estate professionals, a new LJ Hooker study reveals. The findings reveal key shifts in how buyers navigate the property market, balancing affordability challenges with innovative solutions. Key insights from the research include: • less than a quarter of older Kiwis consider selling their home without a real estate agent, though nearly half (44 per cent) of Gen Z would • face-to-face meetings remain the preferred way to communicate with agents, despite advances in technology • co-ownership is gaining traction, with 33 per cent of New Zealanders open to buying a property with a friend or sibling – and 45 per cent of Gen Z. • 31 per cent of homebuyers have parents open to…

Sellers are increasingly targeting property investors according to listings data from realestate.co.nz. The number of properties aimed at investors increased from 2,972 in January 2024 to 3,382 nationally, a gain of over 13 per cent. Vanessa Williams from realestate.co.nz explains that listings were up across the board year-on-year, and the investor-targeted listings are a natural flow-on effect. This also reflects the wider trend of investors re-entering the market as government changes come into play. “The government has made changes that are favourable for investors: the reintroduction of interest deductibility, reduction in the bright-line test, and changes to the Tenancy Act that give control back to landlords.” Deep dive Drilling down deeper into the data offers some useful insights. The Otago market had an increase in listings targeted at investors of…

In an industry dominated by men, Eve Prouse stands out. The 36-year-old from South Auckland spent six years training to be a property valuer and has many unique insights around the industry. She also understands that property ownership is an investment in the future – having sold her first family home, she and her husband purchased a property with three free-standing homes, two of which she rents out. Getting started Prouse grew up in Manurewa, South Auckland. Her parents weren’t investors, and while she had an aunty who was briefly a real estate agent, she didn’t have role models in the industry as she was growing up. She studied marketing and management after leaving school and found work in the industry. But she didn’t love it. “I was working in…

West Auckland covers a large geographical area, from the city outskirts to the coast. It includes popular suburbs Avondale, Glen Eden, New Lynn and Titirangi, then extends over the Waitakere Ranges to the Tasman Sea, along the shores of Whatipu, Karekare, Piha, Bethells and Muriwai, before arcing back towards the city via Kumeu, Westgate, Massey, Henderson and Te Atatū. The region is known for its rugged beauty and eclectic charm. Nature reserves, wild surf beaches, hiking and mountain bike trails, orchards and vineyards dot the countryside. Culture thrives here too, with hidden gems around every corner from quaint cafés nestled in the bush to colourful art galleries and vibrant community markets that showcase local crafts and produce. The popular Waitakere Ranges are the backdrop for most of the west’s suburbs.…

When designing or upgrading an investment property, functionality should be at the forefront. Small adjustments to the layout can significantly impact desirability. Parking, for instance, is a key factor – tenants will always prefer a property where they can park directly outside rather than having to walk to a shared carpark. For multi-storey homes, convenience is key. A powder room on the main living level eliminates the inconvenience of guests having to travel upstairs, making the home more user-friendly and appealing. These thoughtful additions can set a property apart and improve rental demand. Creating a cohesive look Subdivision developments benefit from uniformity. A common mistake developers make is leaving the finishing touches, such as fences, gates, and decking, to the buyers. This often results in an inconsistent and unpolished look…

In 2018, a newly formed capital partnership between global investment firm KKR and leading New Zealand-based commercial property firm Oyster Property Group acquired the Central Park business park in Auckland, New Zealand’s largest and fastest-growing city. Central Park was an underutilised and outdated business park at the time of purchase. However, the partnership recognised the latent potential in its extensive landholding and prime location to maximise diversified income streams and strong tenant covenants. Central Park’s approach was to incorporate sustainability into the precinct followed a four-stage strategy designed to unlock its value through integrating key sustainability initiatives into its DNA. The aim has always been to meet and exceed industry best practices; demonstrate sustainability leadership beyond legislative requirements; ensure resilience while maintaining its sustainability credentials in a changing landscape; and…

I have been travelling up and down the country talking about the new changes to the RTA. And let me tell you this, nothing gets landlords and property managers more fired up than the two-day withdrawal pathway for victims of family violence. Let’s start with the basics. Under Section 56B, a tenant who is a victim of family violence can withdraw from a tenancy with two days’ written notice accompanied by an appropriate form of qualifying evidence. For the first two weeks following the withdrawal, rent is proportionally reduced in line with the percentage reduction in total number of tenants on the agreement. If one out of two tenants leaves, rent drops by 50 per cent; one out of three, 33.33 per cent; one out of four, 25 per cent.…

The changes to New Zealand’s Residential Tenancies Act (RTA), effective January 30, 2025, are set to reshape the landscape of rental agreements. Historically, fixed-term tenancies were the preferred type of tenancy agreement. However, since the previous Labour Government made radical changes to the Residential Tenancies Act in 2020, the need for fixed-term tenancies diminished due to landlords needing a valid reason to end a tenancy. Periodic tenancies became the norm as they offered tenants flexibility, and landlords had little need to prefer fixed-term arrangements. However, the new amendments may signal a shift in this dynamic, and I believe we will see a significant resurgence in the use of fixed-term tenancies. Previously, landlords needed valid grounds to terminate any fixed-term or periodic tenancy. This requirement, combined with the automatic transition of…