Sentiment on PropertyTalk is investors will carry on despite their initial shock at the sudden announcement that come 1st September they’ll need a 40 percent deposit to purchase an investment property nationwide. A discussion commenced online a few minutes after the RBNZ announcement with replies from property investors showing many of the signs of grief.
Into the lion’s den of PropertyTalk goes a prospective first home buyer. You may be thinking – it’s quite a brave move given PropertyTalk is mostly frequented by property investors and landlords. However this first home buyer has already learned a lot from the investors whom have replied and offered him various points of view and suggestions on how to secure a first home.
Measures to dampen property demand are on the table and in the media it’s the upping the current LVR restriction on property investors that is most favoured as the most likely action taken by the RBNZ. However it may not be the only measure as the RBNZ Deputy Governor is reportedly saying DTI (debt to income) ratios may also have a role.
Demand is up for rental properties in most areas except Canterbury where the median rent has fallen over the past twelve months by two percent. Increased supply of property in Christchurch post-rebuild has meant less demand for rental accomodation and the median weekly rent is now back to where it was three years ago according to Trade Me Rent Price Index.
The types of properties gaining the most in value around the country right now are units, apartments and townhouses. These properties are typically smaller than your standalone three bedroom property and generally cheaper too so they’re highly sought after by property investors investing for yield.
Meth contamination is a big threat to rental properties as it’s popularity grows. Clean up costs are in the tens of thousands and investor experiences with contamination are now on PropertyTalk.com including this discussion: Meth testing between tenancies which has nearly clocked up 20,000 views in just nine weeks.
Enough already. It’s easy to just blame property investors for all that is wrong in the property market but it’s a cop-out at best. Property investors are not the cause of everything that’s wrong with the Auckland property market so why are they being unjustifiably targeted?
Most residential property investors start investing while in full-time employment. Income is a primary consideration in qualifying for home loans and the security a mortgagee’s full-time employment offers, is usually a key prerequisite for the lender.
The countdown is on now the Residential Tenancies Amendment Bill will be passed into law on 1 July 2016. From this date Landlords and Property Managers need to beware of their respective responsibilities around rental properties meeting the required standards by the ‘Amendments’ due dates.
A discussion on PropertyTalk on joint ventures this week suggests there are many property investors whom have heard of the joint venture strategy but have very little knowledge or experience of how it works. Entering into joint venture deals lightly can be thwart with obstacles that can turn a deal bad.
More than 500 people gathered in The Langham, Auckland over the weekend for the Property Masters event to meet property investment mentors: Sean Wood and Steve Goodey of PropertyTutors. Sean set up PropertyTutors in 2008 to mentor property investors in the property trading strategy.
A property listings drought is adding further fuel to our over-heated property market. Property prices are increasing everywhere except Taranaki according to Trade Me Sales Price Index and that’s got the RBNZ considering further action to curb demand.