Ten year tenancies are back in the news and also in the discussion on PropertyTalk.com. On the news site stuff.co.nz an article reports Auckland Property Investors Association (APIA) have called for a change in the fixed term tenancy agreements offered to residential tenants.
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.
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.
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.
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.
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.
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.
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.