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Rate drop likely

All eyes will be on Reserve Bank governor Adrian Orr on May 8, when he’s widely expected to announce a drop in the Official Cash Rate (OCR). Lower rates will favour investors looking to expand their portfolios, with opportunities beckoning in a slow market with prices in most areas off the peaks of recent years.

CGT veto hailed by investors

Months of speculation on the prospect of a capital gains tax on investment property ended with the property investment sector last week hailing the Goverment’s decision to put the idea of a CGT to bed, and Prime Minister Jacinda Ardern vowing it would stay off the agenda during her time at the top.

Maintenance failure costly

One private property owner has received a wake-up call when his tenant took him to the Tenancy Tribunal for failing to attend to property maintenance issues. The landlord’s claim to be an older person who did not know the requirements of the Residential Tenancies Act (RTA) cut no ice and the Tribunal ordered exemplary damages to be paid to the tenant.

Capital gains tax changes likely

As investors wait for the Government’s response to capital gains tax (CGT) recommendations to be announced this month, there are signs that it could significantly reduce the rate proposed by the Tax Working Group in its final report on February 1.

Holiday payments date

Rent payments for Easter and Anzac Day holidays.

Assurance on insurance

Major insurer AIG is pulling back from new business in earthquake-prone Wellington but property investors have been assured mortgage brokers will still be able to find willing insurers.

Capital Gains Tax causes stir

The Government has given itself until April to decide whether it will pursue a tax reform package based on the advice in the Tax Working Group (TWG) report released on February 21. A key point of contention is its recommendation for a capital gains tax on assets including residential rental properties.

Investor Insights

Standards revealed The Government has announced minimum requirements that residential rental landlords will have to meet for heating, insulation, ventilation, moisture and drainage, as well as rules to stop draughts. From mid-2021, all rental homes will be required by law to have a heater that can heat a main living area to 18 Degrees celsius.

LVRs could ease further

Further easing of LVR deposit requirements for property mortgages could follow over the next few years, Reserve Bank Governor Adrian Orr has revealed.

Investors still buying

Investors remained active in the residential property market as 2018 ended, despite pending government measures such as ring-fencing for tax relief on rental property losses and a possible capital gains tax, according to property data and analytics specialist CoreLogic.

Quinovic Franchise of the Year

There is always keen competition among Quinovic franchises across the country for our annual awards, and 2018 was no exception. Award categories included customer satisfaction, customer retention, sales as well as the highly coveted Franchise of the Year and Most Successful New Franchise.

What lies ahead in 2019?

The Reserve Bank delivered good New Year’s Day news for investors looking to increase their portfolios, by loosening the LVR restrictions.