How is the rental market faring?

How is the rental market faring? Unabated inflation  Skyrocketing expenses  Pricey cost of living High interest rates These are some of the issues New Zealanders have been increasingly facing in the last few years. In addition, rents have consistently increased, and tenants are grasping at straws. While rents around New Zealand have increased, maybe at a different rate, one must understand that being a tenant comes with uncertainties. You may be asked to leave anytime and may never feel fully settled. Amidst this unpredictability, a constant increase in rent surely pinches, often causing financial strain and emotional stress for tenants. Kelvin Davidson, chief economist at property research firm Corelogic, says average rent has reached a record high. Yet, it doesn’t show the full extent of its impact on a tenant. He adds that you may pay an average rent, but you may not have an average income, so it takes up a much higher share of your budget. Meanwhile, a recent OECD report has pegged New Zealand among the world’s most expensive places to rent. The report says more than 25 percent of a family’s disposable income is spent on rent, placing New Zealand ninth among other countries. There are more concerning stats in the offing — we are one of only eight in which median housing costs used up more than 40 percent of disposable income for the lowest-income tenants. And here’s more data sourced from Tenancy Services showing that the median rent has risen from $200 a week to $550 a week between April 2002 and April 2022, an average increase of 5.19% per year. Despite such a spike and volatility in the rental market, a recent report by Deloitte shows that home ownership in New Zealand has significantly dropped to almost below 60 percent. The report adds that it is now at its lowest rate in nearly 80 years. What does all this mean? Should the government seriously consider implementing rental control? Or will the high rents slowly taper down, like all market trends? Experts think so. BNZ chief economist Mike Jones believes a slowdown in rental rates is approaching. He says rents are likely to flatten and fall a bit. More homes will become available as more first-time owners move into their new homes and many New Zealanders leave the country for greener pastures. New and more listings are likely as new builds become ready for occupancy. Such factors and the oversupply of homes in some areas could bring down demand and rents. This will not happen overnight, and tenants may have to play the waiting game. News Latest News Feeds All Posts Uncategorized How is the rental market faring? October 23, 2024Read More How to ensure your property investment is a success October 23, 2024Read More Does your rental property meet the Healthy Homes standards? October 23, 2024Read More

How to ensure your property investment is a success

How to ensure your property investment is a success Investing in properties is one way to maximize your wealth. When done right, it can yield a massive profit. Before you dive into the vast world of real estate investment, make sure you familiarize yourself with the market. Let’s deep dive into what actions you must take: Knowledge is power: Gain a comprehensive understanding of the market you’re eyeing for investment. Identifying and predicting potential growth areas becomes easier when you’re familiar with the trends. It’s not just about the current market situation, but also about the macroeconomic factors that influence it. Always have a plan: Your investment plan or strategy is your roadmap. It provides a holistic view and helps you prioritize your actions. Defining your plan allows you to manage your budget, explore mortgage options, plan property upgrades, or decide on the right time to sell. A well-thought-out plan is half the battle won. Location is key: Where you buy your property is one of the most crucial factors in successful investing. You should choose an area where housing is in demand, and has potential for growth. Excellent amenities, good transport connectivity and proximity to good schools and shopping centers are some of the factors you could consider. Network and network more: True for all professions and especially pertinent in property investment is to have a wide and reliable network. Engage with other investors, realtors, contractors, and other professionals to make your journey smoother and more profitable. Attending meet-ups and seminars is a perfect way to build and maintain your network. Stay informed: It is important to stay on top of legal, fiscal and regulatory changes that may impact your investments. Know your local zoning laws, rental regulations, and tax implications. Play the waiting game: Think long-term and have patience with property investments, as they are not get-rich-quick schemes. Data shows that property values appreciate over time and are dependable investments. Meanwhile, you can earn a steady income renting out your property and even increase its value in the rental market when you use the services of a property management. The tips discussed here are not conclusive. More factors play a critical role in boosting your property investment. Who better than OAKS Property Management Limited to be your partner as you embark on the property investment journey? Work with us for valuable insights and support as you navigate the real estate landscape. News Latest News Feeds All Posts Uncategorized How is the rental market faring? October 23, 2024Read More How to ensure your property investment is a success October 23, 2024Read More Does your rental property meet the Healthy Homes standards? October 23, 2024Read More

Does your rental property meet the Healthy Homes standards?

Does your rental property meet the Healthy Homes standards? Calling all landlords, as you have less than a year to meet the Healthy Homes standards, which became law on July 1, 2019. All rental properties must comply with these standards by July 1, 2025, and maintained over time. The Healthy Home standards aim to improve tenants’ living conditions by making their homes warm, dry and safe. Five basic requirements must be met: Heating, Insulation, Ventilation, Moisture ingress and drainage, and draught stoppage. The law came into action as rental homes were perceived as having more quality issues than owner-occupied homes. The new standards will help improve the living and health conditions of the tenants while protecting your investment, as you are less likely to face mold issues or mildew damage Let’s deep dive into what actions you must take: Heating:​ You must provide at least one fixed heater, especially for the main living room. Heat pumps may be the most common choice, but other types are also allowed. You must make sure the heating capacity meets or exceeds the calculated capacity. It’s imperative that you carry out regular checks and maintenance of all systems. Insulation: Ceiling and underfloor insulation are now mandatory and must follow the local rental area standards. For example, thicker insulation will be required in colder regions, and warmer areas may have different requirements. Proper insulation helps with temperature maintenance and reducing energy costs while caring for the tenant’s comfort and health. Ventilation: Your living space must have a window or door that opens outdoors. The idea is to ensure air circulation and minimize moisture buildup. Kitchens and bathrooms must have an extractor fan to manage moisture and humidity while preventing mold growth. After these changes, the air quality improves significantly inside homes and reduces health risks related to poor air circulation and dampness. Moisture ingress and drainage: Your rental property must have an efficient drainage system. The gutters and downpipes must be well-maintained to prevent water stagnation or flooding. Your pipes should be connected to a stormwater drain, and there must not be any standing water on your property. Avoid an unhappy tenant, as poor drainage can have a structural impact and increase your maintenance costs. Draught stoppage: You must block any unreasonable gaps or holes in walls, ceilings, windows, floors and doors that cause noticeable draughts. It ensures energy efficiency, as you can reduce costs due to heat loss. Your tenants will thank you for the comfort a warm home can bring. If your rental homes do not comply with the obligations under the Healthy Homes standards, you are liable to be held in breach of the Residential Tenancies Act 1986, and may face financial penalties or other enforcement action. So, do not delay. Take action now to ensure your rental properties comply with the Healthy Homes standards. This proactive approach will not only protect your investment but also enhance your standing in the rental market. News Latest News Feeds All Posts Uncategorized How is the rental market faring? October 23, 2024Read More How to ensure your property investment is a success October 23, 2024Read More Does your rental property meet the Healthy Homes standards? October 23, 2024Read More

Be smoke-alarm ready

Be smoke-alarm ready You could be a tenant or an owner. It’s now time to comply with the New Zealand Building Code update, which states that starting November 1, 2024, all new homes must have a smoke alarm system. As an owner, you must ensure that smoke alarms work in your rental property. The building code mandates installing a Type 1 smoke alarm or multiple interconnected smoke alarm devices Each device must include a smoke detector and an alarm. Interconnected smoke alarms send signals to other smoke alarms in a house, and when one alarm detects a fire and goes off, all the other smoke alarms in the house are activated. This interconnected system provides an additional layer of safety, especially when the occupants are not in the same room or are sleeping, making you feel more secure and protected. You must install smoke alarms within three metres of each bedroom door, in every room where a person sleeps, and in living spaces. A building owner or developer must ensure they’re available in the hallways, landings, and at each level or storey of a multi-unit home.Smoke alarms are also mandatory in boarding houses, rental caravans and self-con tained sleep-outs. The new smoke alarms must be photoelectric with a battery life of at least eight years or hard-wired. They must be installed according to the manufacturer’s instructions and meet international standards. The smoke alarms should also come with a hush-and-test button. Place your new smoke alarms on or near the ceiling. Installing them in the centre of a room may be a good bet, considering how other electrical appliances could delay or cause nuisance alarms. The manufacturer’s user guide and the Building Code document can be of more help. As an owner, you will ensure that smoke alarms function properly at the start of each new tenancy and remain in working condition. Meanwhile, if you are a tenant, it’s your responsibility not to remove, disconnect or damage the smoke alarm. You must also replace dead batteries and inform your landlord immediately if there are any problems with the smoke alarms. Both owners/landlords and tenants are liable to pay penalties if they do not fulfill the requirements and obligations, and more importantly, they put lives at risk if the smoke alarms do not function properly. oaksproperty.co.nz This new Building Code update will make your homes safer and more secure News Latest News Feeds All Posts Uncategorized How is the rental market faring? October 23, 2024Read More How to ensure your property investment is a success October 23, 2024Read More Does your rental property meet the Healthy Homes standards? October 23, 2024Read More