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Govt’s build-to-rent idea faces hurdles

Talk of the government becoming involved in build-to-rent apartment developments has been shot down by BNZ chief economist Tony Alexander.

Insulation pressure on as deadline passes

Reports of widespread shortages of insulation materials and labour are facing landlords who have missed the July 1 deadline to meet government insulation standards, introduced in 2016, requiring all rental properties to have ceiling and underfloor insulation installed wherever reasonably practicable, to meet the required standard.

Other news of interest to landlords includes:

Licensing call: The Property Managers Institute of New Zealand (PROMINZ) is joining tenant advocacy groups in calling for mandatory licensing of landlords. This follows a recent Tenancy Tribunal ruling in which a repeat offender private landlord was found guilty of failing to lodge bonds for 81 tenancies. PROMINZ said a licensing system would ensure only “fit and proper” landlords would be able to operate – including being able to advertise properties for rent.

Government sets out Healthy Homes rules

Landlords with rental homes that aren’t fully insulated are being urged to take action following implementation of the Government’s Healthy Homes standards this month. Insulation will be a legal requirement, along with all new Health Homes standards, from July 1 2019.

Mixed views on OCR cut’s impact

Residential property market watchers are divided on the likely effects of the Reserve Bank’s decision to cut the Official Cash Rate (OCR) to a record low of 1.5%, after it spent the last two years on hold at 1.75%.

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.