Property investors are buying fewer properties therefore there is less new rental stock in the market. While this will be pleasing the orchestrators of the recent LVR rule changes competition among property managers is now much tighter.
Property investors are part of the solution of making Auckland great again and their opportunities to invest locally are alive and well. However right now it’s only the Investors who have adapted well to the revised LVR restrictions who are active locally in Auckland.
Property investors say it’s always a good time to invest in property. Property values rise and fall and buying conditions change. However property investors continue to do well in any market when they focus on the core investing fundamentals. Property investor mentors from PropertyTutors say their investor clients are risk averse and only invest in properties with strong numbers (yield & equity).
Weekly rents rose just 4.8 percent in the twelve months to July 2016 according to Trade Me Rent Price Index. Tenants will be relieved Landlords are being realistic and not keen on hiking rents arbitrarily. Property sales have slowed and the average asking price has dropped significantly up ten percent since July 2015.
Property asking prices continue to drop in Taranaki. The downturn of their primary industries (oil, gas and diary) has made home buyers wary. The rest of the country has enjoyed months of capital gains except for Taranaki which has continued on a steady decline since August 2015 according to Trade Me Sales Price Index.
Banks have been given an extra month to process their back log of Pre-approvals therefore from 1 October all loans new and pre-approvals will need to adhere to the 60% LVR restriction rules. Yesterday the OCR moved to it’s lowest rate of two percent and the dollar rose more than a cent against the greenback. It could have gone lower too due to weak global conditions.
Tenants need to know they are now on notice regarding smoke alarms. The Tenancy Tribunal fined a Hamilton tenant for tampering with smoke alarms this month setting a new case-law precedent for future cases. Landlords and property managers have taken notice of this outcome and it can be said the Residential Tenancy Amendments Act 2016 (RTAA) effective 1 July 2016 is now very much part of Tenancy Tribunal legislation ‘tool-kit’.
The property investment Webinar series is kicking off on Thursday with Steve Goodey of PropertyTutors hosting a webinar titled: 60% LVR Funding Tactics From CEO’s. Executive level speakers from near Bank lenders will be on the webinar to answer questions on the new LVR restriction rules.
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.