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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.

Easy Ways to Increase Your Property Value

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.

Key Changes to the Residential Tenancies Act

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.

A big jump in residential rents in January, but rents remained flat in Auckland

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.

What are the new tax deductibility rules on rental properties? Bright-line test 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.

Soft start to 2024 extends into February: CoreLogic

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.

Would you let AI choose your mortgage?

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.

Median rent for 1 bedroom apartments in Auckland CBD up by $60 in 12 months

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.

Tony Alexander: Three factors that will push up house prices in 2024

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.

Understanding Landlord Insurance

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.

New Government – so What’s Change?

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.

Auckland rents up $60 a week!

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.

Interest rates forecast: Have they peaked or is more pain on the cards?

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.

Expect house prices to rise 10% in 2024, and 15% in 2025

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.

Swimming Pool Responsibilities for Landlords and Tenants

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.

Tony Alexander: If investors win at the polls, expect FOMO to ramp up

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.

NZ House prices rising more than forecast

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.