Property investment in 2016 may bring unprecedented property value growth in the regions as Auckland investors move to buy up rental properties in surrounding areas such as Waikato, Bay of Plenty and Northland.
The introduction of legislative changes in October targeting Auckland has resulted in a cooling of price growth for the time being however Auckland’s property woes continue with demand continuing to outstrip supply. Investor focus in the provinces will push up property values and the RBNZ say they could target specific areas in much the same way as they have done with Auckland.
Property investors will need to also keep an eye out for announcements on the minimum standards for rental properties in 2016. While the standards have not yet been announced, smoke alarms and insulation are considered the target areas. The Government made an announcement back in July 2015 and you can access it here – new quality standards for renting.
“Under proposed changes to the Residential Tenancies Act, landlords would have to make sure the property they rent out to tenants has ceiling and underfloor insulation that meets the new standard and is fitted with smoke alarms.
The smoke alarm requirements will come into effect from 1 July 2016. The insulation requirements will come into effect for all residential tenancies (including boarding houses) from 1 July 2019.
From 1 July 2016, all new tenancy agreements will have to include a statement from the landlord about the extent of insulation in the ceiling, underfloor and walls of their property.”
This blog article was written for PropertyBlogs by Mobilize Mail.