Property Investment Information

The Reserve Bank of New Zealand is tipped to cut the official cash rate this month, but mortgage holders and first home buyers are warned not to expect lower interest rates yet.

ASB chief economist Nick Tuffley expects the Reserve Bank to drop the OCR 100 points to 6.5 per cent at the scheduled meeting on October 23. He says it is unlikely to act before then. Read the rest of this entry »

Tenants still have the upper hand in the rental market, and real estate agents are urging clients to inject their properties with the wow factor, or drop the rent if they want to fill them quickly.

Andrew King, vice-president of the New Zealand Property Investors’ Federation, says it’s common to experience a flood of rental listings during the slump phase of the property cycle.

“In a slow market, tenants have a high degree of choice and often face nervous landlords who may be willing to reduce rents just to secure a tenant,” he says. Read the rest of this entry »

Hundreds of New Zealanders are offloading their holiday homes and seaside baches – and some are going to desperate measures to sell up.

Estate agents report bargains galore for coastal property investors, with some homes and baches selling below government valuations.

Economic commentators debate the benefit of owning a second home in a holiday hotspot. Read the rest of this entry »

Landlords have developed their own set of rules, barring them from renting dirty places, telling lies or making racist remarks to tenants.

The national landlord membership and lobby group, the Property Investors Federation, has released a guide which it wants members to show to tenants.

Federation vice-president Andrew King said most members were already following the code.

“There’s nothing to stop members breaking it. We don’t have any powers over them – that’s the job of the Tenancy Tribunal and the courts. If we are aware of them not getting things right, then by keeping them as members we have a better chance of stopping them from getting into trouble.

“The code isn’t to regulate them, it’s to inspire professional and profitable behaviour and keep out of trouble.” Read the rest of this entry »

Mortgagee sales are tipped to quadruple in two years, and at least one expert is predicting an Auckland surge much sooner.

Property watchers say many homeowners are struggling as high interest rates, tightening credit, job losses and falling values hit home.

Bernard Hickey, managing editor of interest.co.nz, predicted the number of mortgagee sales would double to quadruple in the next two years. He said property listings on TradeMe and RealEstate.co.nz containing the word “mortgagee” had doubled to almost 400 in the past three months – 0.4 per cent of the total market. Read the rest of this entry »