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 Capital City

We’re thrilled to welcome Propertyscouts Capital City to our franchise network! Leading the charge is Dave McCarry, a Wellington local with a passion for property investment and a dedication to helping property owners and tenants thrive. With an impressive background in retail, residential sales, and property investment, Dave brings a wealth of knowledge to the Wellington property market.

Dave’s committed to making a real difference in the lives of his clients. His deep community ties and industry expertise ensure that Propertyscouts Capital City is a great option for investors seeking expert property management in Wellington.

Click here to read more about Dave and the launch of Propertyscouts Capital City…

 

OCR Cut Brings Welcome Relief for Property Owners

The Reserve Bank has reduced the Official Cash Rate (OCR) from 5.5% to 5.25%—the first cut since early 2020. This change comes as inflation slows and offers much-needed relief for those grappling with high mortgage costs.

Kiwibank wasted no time, cutting a range of loan rates to help ease the burden on borrowers. Major banks including ASB, Westpac, ANZ, and BNZ quickly followed suit, making various reductions across both fixed and floating rates. This is a positive shift for property investors, providing some breathing room and potentially setting the stage for further rate cuts.

With these changes, there's growing optimism for the property market as we head into 2025.

 

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:

• Indication that banks are showing increased willingness to lend. 

• Concerns are mounting over the decline in net migration.

• Landlords reporting lower than usual tenant demand. 

 

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

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 a recent entry below: 

Question: I am an investor with a tenanted property and have a mediator's order with a consequential clause for rental arrears. The clause states that if the tenants default on the repayment arrangement, the tenancy will automatically terminate. The tenants have defaulted. How do I assert termination? Do I need to go back to the Tenancy Tribunal to prove the default and get a termination order?

Answer: No, you do not need to go back to the Tenancy Tribunal for a termination order. The default on the repayment arrangement combined with your mediator's order containing a consequential clause means the tenancy automatically terminates.

Firstly, notify your tenants in writing that the tenancy has terminated due to their default on the repayment arrangement. In your notice, set a date and time for them to hand the property back. Although the mediator's order may state immediate termination, it is practical to allow the tenants a bit of time to vacate the property.

If the tenants do not vacate by the set date, you will need to apply for an eviction warrant from the Ministry of Justice. This warrant allows a bailiff to evict the tenants and return possession of the property to you. 

You do not need to go back to the Tenancy Tribunal for this; you can rely on your mediator's order. However, include a ledger showing that the tenants have not met the payment arrangement when you apply for the eviction warrant. This will support your case and facilitate the process of regaining control of your property.

You may also need to file another Tenancy Tribunal application for the final rent you are owed, which can include "vacated arrears" – the rent for the period the tenants remained in possession of the property after the date you had asked for it to be handed back.

 

September 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. 

Investors Catching Up With First Home Buyers

Recent figures from the Reserve Bank reveal that investors have increased their share of mortgage advances, reaching the highest level since 2021. This uptick suggests that investors are starting to regain a stronger foothold in the market, finally catching up with first own buyers. With recent OCR cuts and new legislation designed to make investment more attractive, we’re seeing encouraging signs for a strong investor market in coming months. 

Property Values Remain Low

CoreLogic’s latest report, which uses a hedonic regression model for its Home Value Index, shows a continued decrease in property values across New Zealand. The index indicated a 0.5% drop in July, marking the fifth consecutive month of declines. Although values are still higher than pre-COVID levels, they remain significantly below the peak seen in January 2022. 

Investor Insight: Time to Hold or Invest

With increased supply in the market, we’d recommend holding off on selling and considering investing. For those with the cash-flow, you’re likely to have stronger negotiating power in the current market. With all factors tipping towards a stronger investor market, those who hold on to their assets could be sitting pretty moving into 2025. 

 

Investor Hotspot: Invercargill

We’re excited to introduce a new section in our newsletter- Investor Hot Spots! Each month, we’ll spotlight a different area across New Zealand, highlighting its investment potential. 

First up is Invercargill, a promising location for property investors. Although tucked away in the deep south, this is not an area to be underestimated. With nearly 50% of its population living in rental accommodation, Invercargill stands out as a high-demand rental market.

The median house price in Southland is highly affordable, sitting under $500,000. Rental yields in the region are notably strong, with a median gross yield of 5.76%, compared to the national median of 4.52%. 

This combination of steady tenant demand, high rental yields and low property prices make it an undercover hotspot for investors to consider. 

Considering investing in the area? Make sure to connect with Propertyscouts Invercargill to learn more about their property management options. 

 

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

"We are what we repeatedly do. Excellence, then, is not an act, but a habit." - Aristotle

 

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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.