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

 


$9700 per property WOF cost for landlords?

$9700 per property WOF cost for landlords?

Property investors should be very alarmed that the amount each landlord could be expected to pay for upgrades associated with a proposed warrant-of-fitness scheme is $9700 for each property, Mike Butler of NZCPR said today.

The estimate is included in recommendations from the Children’s Commissioner who lobbied the government two years ago with Working Paper No.18: Housing Policy Recommendations to Address Child Poverty. Its 12 recommendations include a warrant-of-fitness scheme and a push for insulation and heating.

Early indications from two trials that are under way show that more properties fail than pass the test that requires ceiling insulation 120mm thick, under-floor insulation, and a supplied heater, Mr Butler said.

A rough cost-benefit analysis based on information in Working Paper No.18 shows that the total cost to owners of the 465,000 rental properties throughout New Zealand, at an average cost of $9700 per property, would be $4.5-billion.

The only benefit quantified in the report showed a saving of $2.90 per household (with a child aged less than 15) per month as a result of receiving insulation, which would be just. $34.80 a year per household or $16.1-million a year for 465,000 households.

That $16.1-million a year saving goes to the health system and private landlords pay $4.5-billion, which is a proposal that just does not stack up, Mr Butler said.

Property professionals know that no changes are required and the key problem in the rental sector is problem tenants, not problem landlords, Mr Butler said.

The WOF scheme should either be scrapped, or, if the government is really keen to spend to save money, the government should pay for the private sector upgrades, Mr Butler said.

Ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Crown Accounts: Government Ekes Out Six-Month Surplus Of $9M

The New Zealand government eked out a tiny surplus in the first six months of the fiscal year as growth in domestic consumption lifted the goods and services tax take, while uncertainties over the Kaikoura earthquake costs meant expenses were less than expected. More>>

ALSO:

Almost 400 Jobs: Shock At Cadbury's Dunedin Factory Closure

Workers at Cadbury in Dunedin are reeling after learning this morning that the iconic Cadbury factory is to close, with the loss of almost 400 jobs... “The company had reported it was doing well and this has come out of the blue,” says Chas. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news