Keep informed with PropertySage’s latest blog, offering landlords vital market updates, valuable insights, and expert advice to optimize rental properties and ensure a seamless, rewarding experience for tenants.
The housing market is looking better for buyers this year, with more listings and falling prices. In January, there were about 39,000 homes available, a 17% increase from last year, while the average asking price dropped to $842,900. This trend suggests that buyers have more options and lower prices as we enter the busiest season for real estate.
In January, property values in Aotearoa New Zealand fell by 0.1%, continuing a trend of limited movement over the past five months, with the national median value at $803,819—17.5% below peak levels from late 2021. Despite some signs of potential growth in specific areas, such as North Shore in Auckland, overall stability in property values suggests a cautious outlook, influenced by lower mortgage rates and increasing sales. However, challenges such as a soft economy and upcoming debt-to-income ratio caps may hinder a significant rebound in the market.
Trade Me Property reports an oversupply of rental properties, leading to a 36% increase in listings and a median rent decline to $630 per week. Landlords are advised to adjust rent expectations and enhance property appeal to attract tenants in this tenant-favorable market.
Tony Alexander discusses the Reserve Bank of New Zealand’s recent 0.5% cut to the Official Cash Rate, which has brought it down to 4.25%, while highlighting that the overall economic situation remains fragile with ongoing recessionary pressures and global trade challenges. Although there are signs of improvement in consumer sentiment and the real estate sector, the potential for significant reductions in mortgage rates—especially for longer terms—is limited due to persistent inflationary pressures abroad. Borrowers are advised to be cautious, as expectations for deeper interest rate cuts are fading.
Renting out your property in New Zealand can be rewarding, but it’s essential to understand the rental market and your legal obligations as a landlord. Ensure your property is well-maintained, set clear expectations for tenants, and communicate openly to foster a positive relationship. Remember, at PropertySage, we’re here to support you every step of the way in your rental journey!
CoreLogic’s Home Value Index reported a 0.5% drop in property values in September, marking the seventh consecutive month of decline and a total decrease of 4.7% since February. While values remain 16% higher than pre-COVID levels, they are nearly 18% below the post-COVID peak. In Auckland, most areas saw declines, indicating ongoing weakness in the housing market.
If you’re thinking about investing in property, you might wonder when the best time is to jump in. As a property manager in Auckland, I can tell you that while it’s hard to find the perfect moment, understanding the current market can help you make smart choices.
The average asking price for properties in Auckland has dropped below $1 million for the first time in nearly four years, reaching $986,750 in August 2024, marking five consecutive months of price declines. This shift presents new opportunities for buyers, as national prices also fell, with the average asking price at $818,250, leading analysts to suggest it could be a favorable time to purchase amidst ongoing market adjustments.
The New Zealand Government is proposing significant changes to the Residential Tenancies Act 1986, including reinstating 90-day no-cause terminations and adjusting notice periods for landlords and tenants. New pet regulations will allow landlords to require a pet bond and mandate written consent for pets, while also clarifying tenant responsibilities for pet-related damages. Additional amendments aim to improve clarity in tenancy agreements, streamline bond processes, and enhance protections for tenants facing family violence.
Tony Alexander predicts that house prices in New Zealand will rise before the end of the year, following a recent cut in the Official Cash Rate by the Reserve Bank, which is expected to continue decreasing in the coming years. However, challenges such as job insecurity, high property listings, and a weakening rental market may slow the overall recovery despite increasing buyer interest.
Rental prices in New Zealand have slightly decreased this month for the first time since 2022, with the median weekly rent dropping to $645 due to an increase in available rental properties and reduced demand. While Auckland remains the most expensive area, the South Island experienced notable price drops, particularly in Marlborough, while smaller properties have seen rising rents.
Allowing pets in rental properties can attract a wider range of tenants, encourage longer tenancies, and potentially increase rental income. To prepare, landlords should establish a clear pet policy, ensure property safety and durability, and maintain open communication with tenants regarding pet care.
The New Zealand rental market is seeing a significant increase in rental listings, up 40% in the last quarter, while rental demand has only risen by 2.5%.
As a property owner, there are many effective strategies you can use to boost the value of your real estate. This article will explore the most impactful methods to maximize the value of your property.
The New Zealand government has announced significant updates to the Residential Tenancies Act (RTA) that will impact how landlords manage their rental properties. These changes are set to take effect in 2025 and are aimed at improving the rental market and providing more stability for both landlords and tenants.
As a landlord in New Zealand, you have several key responsibilities and rights to ensure the well-being of your tenants and the compliance of your rental property with the law.
In January 2024, New Zealand experienced a significant rise in residential rents, setting a new record with the national median rent at $608 a week, largely influenced by a notable increase in Otago due to the return of university students, where the median rent soared from $520 to $675. This trend underscores the dynamic nature of the rental market, particularly in regions with seasonal population changes.
Interest deductibility on rental properties refers to the ability of property owners to deduct the interest paid on their mortgage loans from taxable income. The Labour government in New Zealand removed this ability, but the current government plans to reverse the changes and allow landlords to claim 80% of their interest expenses from April 1, 2024, and 100% from April 1, 2025. Additionally, there are proposed changes to the bright-line test, potentially reducing the period from 10 years to 2 years for properties acquired after July 2024.
National home values in New Zealand rose by 0.3% in February, continuing the trend of slower growth since December, according to CoreLogic’s House Price Index. While property values have increased for five consecutive months, the pace of gains has declined compared to previous months. The average property value in New Zealand now stands at $930,495, up 2.8% from September but still 10.8% below the recent peak.
The article discusses the potential of using AI in the mortgage industry. While AI-driven deals may offer faster and more accurate calculations and analyses, the human element and personalized advice provided by mortgage advisers are still considered essential. AI can assist in automating routine tasks and providing comprehensive information, but understanding individual circumstances and the broader economic context may still require human judgment and expertise.