Monthly Landlord Newsletters

 

Welcome back to the Propertyscouts monthly landlord newsletter, where we update you on all things New Zealand property market, investor insights, seasonal reminders, and more.

Introducing Propertyscouts Hutt Valley

Our new franchise that’s passionate about fostering better homes and investments throughout Lower & Upper Hutt. 

We’re excited to announce the latest addition to our franchise: Propertyscouts Hutt Valley! Leading this new venture is Ronan Quirke, who brings a wealth of experience from his background in technology and financial services, coupled with a genuine passion for property rentals.

Click here to read the full scoop on Ronan’s background & how Propertyscouts Hutt Valley came to be… 

What the Governments ‘Going For Growth’ Plan Means for Property Investors

Phase one of the Government’s “Going for Growth” plan has just been unveiled, and it’s set to shake up NZ’s property investment scene. The Government is introducing ambitious new housing growth targets for councils, with the aim to free up land and remove urban planning barriers that have been holding up development. For landlords, this could open up more options for higher-yield investments.

For investors starting to think through the option of ‘Build to Rent’ developments, proposed changes could see these becoming much more feasible and cost effective. Changes such as the removal of minimum floor area and balcony requirements could help cut down costs, maximising your development and investment. The plan also focuses on mixed-use developments, making cities more vibrant and connected, which could boost property values and rental yields. 

Overall, this rollout is a game-changer for investors looking to capitalise on an evolving housing market. 

 

Recent Property Investor Insights by Tony Alexander

Stay informed with the latest property insights provided by Tony Alexander. Learn about the developments and trends shaping the New Zealand property market currently, covering:

• The rate at which landlords are increasing rent demands is slowing down.

• Securing quality tenants has become more challenging since mid-2022.

• For the first time ever, more investors perceive a positive trend in banks' willingness to lend rather than a negative one.

 

The Latest Ask An Expert from Within the NZ Property Investor Magazine | August 2024

Propertyscouts is the designated Property Management Expert in the popular magazine: NZ Property Investor. Our Managing Director, Ryan Weir, recently entered a response to their recent 'Expert Advice Q&A'. View our August entry below: 

Question: I'm a property investor with a tenanted rental property that I plan to put on the market for sale. I intend to keep the tenants in the property while it's being sold and am considering reducing the rent as a gesture of goodwill for their cooperation in keeping the place tidy and allowing open homes. Is this a good idea, or is there a better approach to keep the tenants happy during the sale process?

Answer: Reducing the rent may seem like a considerate way to keep your tenants happy during the sale process, but I would advise against it. When you go to reinstate the rent back to the previous level, it could be considered a rent increase, which you may be precluded from doing as the Residential Tenancies Act states, “rent must not be increased within 12 months after the date on which the last increase took effect”.

Instead, I recommend an incentive payment system. Here's how it works: Continue charging the full rent, and keep a tally of the weeks the property is on the market. At the end of the sale process, if the tenants have cooperated fully (with your sole discretion and confirmation from your real estate agent, if you have one), you provide them with an incentive payment. This payment could be a set amount per week for the duration the property was on the market.

This approach ensures that the tenants remain motivated to cooperate throughout the entire process, knowing there is a financial reward at the end. If you simply reduce the rent, there's a risk the tenants might still not cooperate fully, and you would have lowered the rent without gaining the desired cooperation. An incentive payment system keeps everyone engaged and working towards a successful sale.

 

August Rental Market and Investment News Roundup

And of course, no newsletter is complete without a quick recap of recent news. Here are some key updates in the New Zealand property investment landscape. 

Lower Fixed Home Loan Rates

Great news for mortgage holders! BNZ, Kiwibank, ANZ, and Westpac have all cut their fixed home loan rates recently, with BNZ’s three, four, and five-year rates now starting as low as 6.39%. This comes after the Reserve Bank lowered wholesale interest rates. There’s a chance we might see further rate drops in the year ahead, depending on what the Reserve Bank decides with the official cash rate. This could mean less pressure for investors, with the lowered costs potentially improving rental yields in the not-so-distant future. 

Finding Lower Rates

Thinking of re-fixing your mortgages? It’s definitely worth doing some homework to find those lower rates. Many mortgage advisors have already been accessing some great rates before they hit the mainstream. For more tips and details on finding promotional or non-standard rates, check out this article by RNZ. 

 

Quick Start Franchise Opportunities

We still have a variety of Quick Starts available - key areas to note are some amazing opportunities available in Auckland, Tauranga, Palmerston North & Timaru. 

Enquiries are coming in fast, so make sure to chat to Ryan Weir by emailing ryan@propertyscouts.co.nz if you're interested. 

 

Quote to Ponder

"Do not wait to strike till the iron is hot; but make it hot by striking." - William Butler Yeats

 

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Stay tuned for more updates and valuable insights in our future newsletters! If you want to receive these directly to your inbox - sign up to our mailing list here: https://mailchi.mp/a2ede027d1c3/sign-up     

Disclaimer

Given the opinions expressed in parts of the email, it’s important that we make it clear that the contents are opinions and observations and made in good faith.  

Propertyscouts NZ (2020) Limited, trading as Propertyscouts, and its associated parties (including directors, agents, employees, officers or otherwise) have attempted to provide   this information to the best of their ability but do not make any representations or warranties of any nature (intended or implied) as to the accuracy of the information on this communication. All recipients of this communication should conduct and rely on their own enquiries in relation to the information on this communication.

The information available on the properties listed for sale, rent or otherwise, has been obtained from the vendor or landlord of the property and the appropriate professional service providers. We do not and cannot verify or guarantee the accuracy of the information obtained in relation to the properties.

The information and/or materials available in this communication are intended to be general information only and may be changed at any time, without notice to you. The information and/or materials in this communication should not be relied on under any circumstances as a substitute for legal, financial, real estate, or other professional and/or expert advice. To the maximum extent permitted by law, Propertyscouts and its associated parties disclaim all liability, responsibility, and negligence for any direct or indirect loss or damage suffered by any person arising from the information and/or materials presented in this communication or any information and/or materials that arise from it.