Propertyscouts Monthly Landlord Newsletter - December 2024
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 Far North
Welcome to Propertyscouts Far North, now under the expert leadership of Cara Dowie, who brings over 18 years of property experience.
Cara’s extensive background in property valuation, management, and finance makes her a valuable addition to our network. With a Bachelor’s degree in Property Valuation and Management, a Graduate Diploma in Finance, and additional certifications in health, safety, and project management.
Raised locally in Opua and now based in Kerikeri, Cara has a strong connection to the Far North community. Her local insights and community focus are set to bring a fresh, knowledgeable perspective to property management.
Click here to read more about Cara and the launch of Propertyscouts Far North.
Recent Property Investor Insights by Tony Alexander
We’ve read Tony Alexander’s latest report so you don’t have to! Here are the key insights shaping the New Zealand property market right now:
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Investors are feeling more positive about banks’ willingness to lend, with the tough credit conditions from 2021 now well behind us.
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Concerns about interest rates are easing, which has also helped calm worries about falling house prices.
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That said, the rapid drop in net migration is something investors are keeping an eye on
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: We have a rental property currently tenanted, but our daughter is returning from London early next year and plans to move into this property. The property is owned by our family trust, and I understand that we can give 63 days' notice under the RTA if a family member requires the home as their principal place of residence. However, I’m worried because, as I understand it, a family trust doesn’t technically have "family members." Can we still terminate the tenancy on these grounds, or could the trust ownership make this more complicated?
Answer: There is a common misconception that a trust cannot give notice to terminate a periodic tenancy because a family member genuinely requires the premises as their principal place of residence. However, this is not the case.
There is a Tenancy Tribunal case where a tenant challenged the validity of a notice given by a family trust to end the tenancy because a family member of the trustees wanted to move in. While this case was decided under the previous rules before the Residential Tenancies Amendment Act 2020, it still provides useful guidance. The Tribunal upheld the notice, citing that a trust is not separate from its trustees; therefore, trustees can give notice for their family or themselves to move into the property.
The key point here is that the property is legally owned by the trustees, not the trust itself. If the trustees and beneficiaries are the same individuals, as often is the case with family trusts, the trustees have the right to issue notice under the current law. However, the outcome might differ if the trust were a public trust or if the trustees were independent of the beneficiaries.
In summary, your family trust should be able to give notice to your tenant under these circumstances, provided there are no complicating factors like those mentioned.
December 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.
Investor Interest on the Rise!
Property investors are showing a lot of renewed interest on Trade Me Property! Searches for terms like "income," "home and income," and "rental" are on the rise, signaling that the market is heating up.
Recent changes in legislation have made things more appealing for landlords, like bringing back tax deductibility on mortgage interest and easing up on Brightline test rules. Add falling interest rates and more relaxed lending conditions into the mix, and it’s no surprise small investors are stepping back into the game.
CoreLogic’s Nick Goodall also notes that the gap between mortgage rates and rental yields is narrowing, making investment properties look even more attractive. It's definitely an exciting time for those in the property market!
Are you thinking about buying another rental? Get in touch. We can share what types of properties and locations are hot with tenants right now.
Our Take
High-income borrowers have started to re-engage, which is driving more demand for well-presented properties in desirable locations. That said, there are still some softer spots in the market where sellers are having to adjust their price expectations to meet buyers. For those looking to buy - we’d say get in quick while the prices are hot!
That's a Wrap for 2024!
As we near the end of another year, we want to thank you for trusting us to manage your investments in 2024. It’s been a pleasure working with you, and we’re looking forward to an even better 2025!
While we’re not sending a newsletter in early January - because we hope you’ll be enjoying quality time with family and friends - rest assured, all key processes will continue as usual during this period.
Quick Start Franchise Opportunities
We still have a variety of Quick Starts available - key areas to note are some opportunities available in Auckland, Tauranga, Taranaki & Palmerston North.
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
"The more you learn, the more you earn." - Warren Buffett
Sign Up to Our Mailing List
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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.