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.
Property sales data on non-resident buyers has proven interesting so far but is from conclusive and is not likely to singlehandedly trigger further action by the Government or the RBNZ. The new rules introduced late last year shrunk the pool of foreign buyers who were waiting for new IRD numbers.
A discussion on PropertyTalk on whether Landlords should own just a couple of rentals each has created some lively debate over the past few days. Property investment is deemed one of the causes of the Auckland housing crisis and last year the bright line test rule, and 70% LVR on Auckland rental properties came into effect to target investor activity.
In the media a couple of reliable sources confirm rent increases have not risen alot over the last twelve months – so where are the greedy Landlords? Property sales and prices continue to forge ahead with gusto while rents remain static thus widening the gap between sales and rents according to the latest Trade Me Property Rental Index.
The measures imposed last year by the RBNZ and the Government worked albeit for just a couple of months. Property prices dropped and we all took a breather from October through to February this year. The property data for March presented a rebound in both property sales and prices in Auckland and many other regions and this month is also buoyant. Therefore it’s likely more restrictions aimed at limiting demand for Auckland property will come into play soon.
It’s that time of year when property investors get ready for PropertyTutors’ one day property investing event called Property Masters. The event is held in Auckland and Wellington twice a year and it’s always popular among property investors. While the event’s format remains the same each time, the content is up-to-date and the event provides property investors with real examples of the buy-renovate-sell strategy called property trading and the latest on property funding and accounting from renown professional services firms.
Expect to see another increase in the property sales price data for Wellington when the Trade Me Sales Price Index is released for March 2016. Homes in the region have sold within days of being on the market for sale; and they’re being purchased for tens of thousands of dollars over the Government valuation.
Landlords may soon be required to test for Meth use in their rental properties in-between tenancies as part of the new Health and Safety at Work Act 2015. The reported rise in P-contaminated houses is somewhat alarming insofar as the clean up costs are in the tens of thousands, plus residing in a meth contaminated environment can have negative health implications.
While physically inspecting a property before purchase remains the norm in 2016, a report on future trends in the real estate sector predicts house hunters will be buying up homes from the comfort of their living room – using virtual reality.
House inspections prior to purchase will become less frequent over the next decade, as virtual reality will allow prospectors to examine three-dimensional replicas of properties for sale.
The RBNZ wants to see the sales data for February and March before assessing the effectiveness of their new measures that included the 70% LVR restriction for Auckland investment properties. New lending was at an all time high at $1.679 Billion for the week ending 4 March and the average size of loan set a new record. February property sales were up on the previous three months.
Auckland’s property market plateaued for a couple of months (December and January) but sales activity picked up in February. There were more property listings last month than in February 2015 plus a modest increase in the average asking price. RealEstate.co.nz reports Auckland’s average property price increased by a modest 4.5% on the previous month, January.