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.
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.
The rent for apartments in Auckland CBD has fully recovered from the impact of Covid and is now stabilizing. Rents have been steadily increasing over the past 18 months due to the return of overseas students and workers. Currently, rents have reached a peak and are settling at current levels. The next test for the apartment market will be in the first three months of this year when students return for the academic year.
The New Zealand housing market in 2024 is expected to be impacted by factors such as a decrease in new housing supply, increasing demand due to immigration, potential decrease in interest rates, and changes in tax deductions for investors. The average growth rate of housing prices is expected to be higher this year, particularly in urban areas.
According to Nick Tuffley, an economist at ASB Bank in New Zealand, it is more likely that the Reserve Bank of New Zealand (RBNZ) will start lowering interest rates in the second half of 2024 instead of waiting until 2025. This change in prediction is based on recent data showing a decline in the country’s economic growth.
Landlord insurance in New Zealand is highly recommended to protect rental property owners from potential risks and financial losses associated with tenant issues and unexpected events.
The new government coalition in New Zealand has made some changes that could potentially affect the property market. The foreign buyer tax has been dropped, the timeline for mortgage interest deductibility has been accelerated, and there may be a shorter brightline test for capital gains tax. However, the overall impact on the property market is expected to be relatively limited, and factors such as low rental yields and high mortgage rates will continue to play a significant role.
Regular meth testing in rental properties in New Zealand is essential for ensuring tenant safety, compliance with regulations, and property preservation, even though it is not legally required.
Residential rents in New Zealand have increased by an average of $40 per week nationwide, with Auckland seeing a $60 per week increase, and the highest rent increase occurring in Queenstown-Lakes at $130 per week.
PropertySage acknowledges the divided opinions among economists regarding the Official Cash Rate (OCR) and its potential impact on mortgage rates. They emphasize the importance of staying informed and seeking expert advice to navigate the changing landscape and make informed decisions about rental property investments.
The New Zealand property market is experiencing a high awareness of rising prices, reduced concerns about tax changes and tenant rules, and an increase in investor activity. However, the window of opportunity for first home buyers is closing due to these rising prices and increased competition, while a decline in new housing supply is expected to push prices even higher.
Navigating swimming pool responsibilities in New Zealand involves regular maintenance by tenants while landlords handle significant repairs. However, before installing a swimming pool, landlords should consider the additional costs and responsibilities, despite the potential property value increase and attractiveness to potential tenants.
Rents in Auckland’s CBD experienced a decline during the Covid lockdown as overseas student numbers dropped. However, as the number of students has been increasing again, average rents have climbed back to pre-Covid levels.
A survey of mortgage brokers reveals a strong presence of first home buyers in the housing market, indicating their continued influence despite higher mortgage rates. However, investor participation remains limited as they await election outcomes and potential tax rule changes. Real estate agents also report rising prices and increased attendance at open homes and auctions, suggesting an upward trend in New Zealand’s housing market driven by first home buyers.
New Zealand’s house prices are projected to rise in 2024 due to ongoing supply shortages and anticipated rate cuts, according to a Reuters survey. Despite the expected stabilization of house prices by 2024, affordability will remain a concern due to high mortgage rates and limited supply.
As a property owner, one of your top priorities is finding the right tenant. The ideal tenant respects your property, pays rent on time, and abides by the lease agreement. However, finding such a tenant can sometimes be challenging. This article will guide you through some effective strategies to help you find the right tenant for your property in New Zealand.
A National-led government could bring significant changes to the property investment landscape based on their proposed policies: