Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Property investors provide a service and fill the gap

Property investors provide a service and fill the gap.

The census document NZ in Profile 2014 and the findings of the BNZ/REINZ Residential Market Survey hint at a disturbing trend regarding home ownership in this country. Overall the residential market is improving compared with the findings of the previous BNZ/REINZ survey. However, potential first home buyers are still feeling the effects of the Reserve Bank’s LVR policy and many are reluctant to take the first step on to the property ladder. On the other hand, real estate agents are reporting that investor interest is strong and estimated sales to investors stand at over 19% compared with 18.5% nearly a year ago.

The census results show a fall in home ownership rate from 66.9% in the 2006 census to 64.8%. A recent NZPIF study into the cost of renting rather than owning the average NZ home shows that renting makes good financial sense at present. The study conducted for the December 2013 quarter showed that it is currently $138pw cheaper to rent than own the average NZ home. Renting has been cheaper than owning for many years and is another compelling reason encouraging people to choose renting over home ownership.

It is timely that investors are stepping in to purchase residential properties and provide rental homes for those who are unable or unwilling to purchase their own.

“Property investors are providing a service”, said Andrew King, Executive Officer of the NZ Property Investors’ Federation (NZPIF). “Like any other service providers, these property investors know they need to provide good quality homes. It is important that new investors learn about the business of being a landlord. Many of the programmes of the property investors’ associations affiliated to the NZPIF are educational in nature, assisting members to manage their property portfolios for the benefit of the tenants and the landlords. We recommend that more property investors become involved in these programmes.”

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news