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Residential property 2018

According to the ANZ economic outlook there are still enough positive forces that should see growth returning to “broadly around trend” over the next couple of years (abut probably not much more). The outlook still has a positive hue overall. The first RBNZ OCR hike is now expected no sooner than August which is positive for those with mortgages. To read the full report from ANZ please go to https://www.anz.co.nz/resources/f/0/f06fb659-6d33-481d-ab7c-03239667008d/ANZ-Market-Focus-20180130.pdf?MOD=AJPERES The housing market is soft with low turnover. Houses are taking longer to sell. the LVR lending levels have softened a little with the lenders being able to go over the 80% for owner occupied and 60% for investment. However, they can still only lend to these higher LVR’s for a certain percentage of their overall portfolio. That means existing clients and new clients in a stronger financial position may get priority. Another good site to check for economic updates is www.interest.co.nz Every economist has their own ‘educated’ point of view but nothing is set in concrete. At the moment it is still possible to refix interest rates under 5% for 1 year or in the early 5% for 2 and 3 years. It’s not that long ago that anything under 7.4% was considered a good rate. This is a good time to pay down existing lending however, no one can see rates hiking up dramatically at this stage. There are changes coming up in regard to residential property investment. Most seem to be in favour of tenants. As from 1st April 2018 all residential landlords will have a duty to provide safe warm and ‘healthy’ housing. However, it is...

Changes to the residential tenancy act

Proposed law changes will require action by landlords From 1 July, laws in the proposed Residential Tenancies Amendment Bill are due to come into force. The changes aim to reduce fire-related injuries and deaths and make homes warmer, drier and safer for the million New Zealanders who live in rental accommodation. Some of the proposed changes are: Smoke Alarms From 1 July landlords will need to have working smoke alarms installed in all their residential rental homes. Any replacement alarms installed after that date will need to have long life batteries and a photoelectric sensor. Hardwired smoke alarms are also permitted. Tenants will be responsible for replacing worn-out batteries in the smoke alarms and informing their landlords of any defects. Insulation All residential rental homes in New Zealand will be required to have insulation to keep a home warm in winter and cool in summer. Social housing (where tenants pay an income related rent) must be insulated by 1 July 2016 and all other rental homes by July 2019. Landlords will be required to provide a statement on the tenancy agreement about the location, type and condition of insulation in the rental home. Tenancy abandonment process The proposed law introduces an expedited process for a landlord to regain possession of their rental property when the property had been abandoned. The expedited process for regaining possession will enable a Tenancy Adjudicator to decide the case based on evidence landlords have provided in their expedited abandonment application. Landlords will not need to be present when the Adjudicator considers the evidence under this new process. The Tenancy Tribunal Application Online form will...

financial news links

Here are some good links for up to date news as it happens N.Z. Holds Rates Amid Global Slowdown, Benign Inflation How Europe got itself into such a financial mess, what might happen next and what it might mean for New Zealanders Weak profits dim NZ business confidence for third month  Treasury forecasts govt still on track for 2014/15 surplus, but warns of big downside risks due to global market uncertainties Consumers price index shows inflation of 0.4% in Sept qtr, lower than expectations of 0.7%, giving RBNZ more time to keep rates ‘lower for longer’ NZ pace of inflation probably slowed enough to keep central bank calm Long road seen to sustained property pick up  ...

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