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


Rental Increase Freeze Not A Rent Freeze

The NZ Property Investors’ Federation (NZPIF) is concerned that many tenants have mistaken the Government announcement banning rent increases as a freeze on having to pay rent.

“We have heard from many members that their tenants have contacted them saying they no longer have to pay rent while other tenants are simply stopping their rental payments”, said Sharon Cullwick, the NZPIF Executive Officer.

Minister of Housing, the Hon Dr Megan Woods, has confirmed that tenants are still required to pay their rent.

There has also been confusion over mortgage holidays. Some tenants and tenant groups have interpreted this as mortgage holders not having to pay for their mortgages over a period of time. However, there is no free lunch here.

If a rental property owner applies for a mortgage holiday, Interest will still be applied to the mortgage. This, as well as a document setup fee of approximately $400, will result in the size of the loan increasing and over time the borrower will be paying interest on the interest payments they are deferring. Some mortgage holidays could end up adding one-two years to the length of the loan as well as substantial costs.

Many people believe that landlords are extremely wealthy people who own multiple houses which are debt free. This is far from the truth. The vast majority of rental property owners have just one rental property, with around 90% having just one or two rentals.

Rental property owners are ordinary New Zealanders who are facing all the same issues from Covid-19. They may also have lost their job or had their income cut just as has happened to other New Zealanders.

“We are asking our members to be compassionate with regard to their tenants, but we would also like tenants to understand that many landlords are facing financial difficulties as well”, said Cullwick.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Commerce Commission: Warns Genesis Over Business Billing Errors

The Commerce Commission has issued a warning to Genesis Energy Limited about billing errors concerning electricity line charges to business customers. Genesis reported the errors to the Commission. The Commission considers that Genesis is likely to ... More>>

QV: Tax Changes Yet To Dampen Red-Hot Housing Market

Just over a month has passed since the Government announced measures aimed at dampening the rampant growth of the property market, and yet the latest QV House Price Index data shows the market hit a new high in April. The average value increased 8.9% nationally ... More>>

Stats NZ: Consents For New Homes At All-Time High

A record 41,028 new homes have been consented in the year ended March 2021, Stats NZ said today. The previous record for the annual number of new homes consented was 40,025 in the year ended February 1974. “Within 10 years the number of new homes ... More>>

The Conversation: The Outlook For Coral Reefs Remains Grim Unless We Cut Emissions Fast — New Research

A study of 183 coral reefs worldwide quantified the impacts of ocean warming and acidification on reef growth rates. Even under the lowest emissions scenarios, the future of reefs is not bright. More>>

The Conversation: Why Now Would Be A Good Time For The Reserve Bank Of New Zealand To Publish Stress Test Results For Individual Banks

Set against the backdrop of an economy healing from 2020’s annus horribilis , this week’s Financial Stability Report (FSR) from the Reserve Bank (RBNZ) was cautiously reassuring: the country’s financial system is sound, though vulnerabilities remain. More>>

Reserve Bank: Concerned About New Zealand's Rising House Prices

New Zealand house prices have risen significantly in the past 12 months. This has raised concerns at the Reserve Bank of New Zealand – Te Putea Matua about the risk this poses to financial stability. Central banks responded swiftly to the global ... More>>