The outlook for Property investment in 2018
The outlook for Property investment in 2018
by Super User
in Blog

THE OUTLOOK FOR PROPERTY INVESTMENT IN 2018

January 2018 has arrived and Landlords maybe feeling nervous about their investment property.  Some may well be wondering if it will still be viable to invest in property?  Property investment is almost a national past time in New Zealand with a lot of people relying on this for their future financial security and retirement.  So what is causing this change of outlook?  There’s definite cause for their concern too.

Well there are a number of Changes being made by Government and with that comes a degree of nervousness about will property investment still be profitable?

So what are the changes?

  1. First there is the ‘Bright line test’ moving from two to five years where if you make a profit on selling a property you will be required to pay capital gains tax.
  2. Then there is the extra costs and compliance with insulation by July 2018 and maybe even a WOF for rental properties.
  3. There is the prospect of a loosening of tenancy conditions whereby with such things as a rent increase only once per year (vs., current 6 monthly) longer notice periods for vacating and the ability for tenants to have pets.
  4. There is also a perceived tenant bias with recent tenancy tribunal cases.
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Buying A House? Don’t Make Mistakes!
Buying A House? Don’t Make Mistakes!
by Super User
in Blog

Buying A House? Don’t Make Mistakes!

Buying a house is probably one of the biggest purchases you will ever make.  So it makes sense that you want to do it right and get good value from your purchase.  You also need to protect your investment by ensuring there is nothing unseen that might come along to downgrade your value.  In life, there are risks with buying anything, but that doesn’t mean you have to leave yourself open to risk when buying your dream property.  Most people stay a minimum of 5 years in a property so you do need to know what is happening in the area you have chosen to buy in.

Buyer’s remorse is very real when it comes to shopping for homes, especially if you don’t look around enough or do enough research.  We have listed here a few ways that will help you to ensure you stay on the straight and narrow when it comes to home buying, and how you can keep your eyes wide open to avoid risks.

Education Is Key!

Buying a house isn’t an easy job or simple process. It takes time, patience, and the reliance on other people to ensure you get the best value for your money. You will, of course, consult the right advisors at the bank, and at the real estate agency. However, there’s nothing wrong with a little self-education so do as much independent research on the home you want, the area you want to live in, and the mortgage rates you can afford to pay.

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Nationwide Property Value Growth Rallies As Summer Arrives
Nationwide Property Value Growth Rallies As Summer Arrives
by Super User
in Blog

Nationwide value growth rallies as summer arrives for the housing market

Date: December 2017

The latest monthly QV House Price Index shows nationwide residential property values for November increased 6.4% over the past year which is a much faster rate of increase than last month’s annual growth of 3.9%. Values rose by 3.6% over the past three months which is also much faster than last month when the market slowed to a quarterly growth of 0.9% and the nationwide average value is now $664,485 which is 60.4% above the previous market peak of late 2007. When adjusted for inflation the nationwide annual increase drops slightly to 4.4% and values are now 33.9% above the 2007 peak. 

Meanwhile, residential property value growth across the Auckland Region was down 0.5% year on year which is the slowest annual rate since March 2011 but values ticked up over the past quarter rising by 0.4%. The average value for the Auckland Region is slightly higher than last month at $1,045,741 and values are now on average 91.4% higher than the previous peak of 2007.  When adjusted for inflation values dropped 2.4% over the past year and are 59.7% above the 2007 peak.

QV National Spokesperson Andrea Rush said, “It appears the spring/summer upturn has finally arrived in the housing market.”

“Nationwide value growth has surged 3.6% over the past three months led by stronger growth in Wellington, Dunedin and many other regional centres around the country.”

“Meanwhile, Auckland and Christchurch values also ticked up slightly over the past three months bucking a downward trend seen over the past couple of months.”

“However, values in Hamilton and Tauranga ticked down slightly and some areas to the south and north of Auckland that have seen very strong growth in recent years also saw values drop significantly including the Kaipara and Hauraki Districts both down around 4.0% over the past quarter.”

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