Property Management Update:
Tis the season to enjoy the colours of autumn – perhaps the prettiest of all the seasons. Therefore it is a timely reminder that gutters and downpipes need to be cleaned (once the leaves have finished falling), and it’s a good time to make sure vegetation immediately surrounding houses, is cut back so that it isn’t touching windows and/or eaves and the roof.
Asbestos – do you know if your property has asbestos or not? Most people don’t know and many properties built between 1950 – 2000 probably do in one way or another. Whilst that in itself is no big deal – it’s just something we need to be aware of should any work need to be carried out to the property e.g extraction fan to a ceiling and perhaps the ceiling is stippled – before work can be carried out an asbestos test would need to be carried out before work could begin. Or in a recent example that we have had –old bathroom lino originally secured with an asbestos glue – had to be removed by an approved asbestos company before the new lino could be installed. You will have no doubt heard about all this in the media of late. New legislation now in force throughout NZ makes it necessary for houses constructed within this timeframe, to be checked for the presence of asbestos before renovations/repairs or improvements can take place. The contractors we use are aware of this and will certainly draw this to our attention at the quoting stage of any potential work. By identifying the possibility of the presence of asbestos, we can then discuss with you how best to manage repairs going forward. It’s not necessary to have a managed asbestos plan for each. Just important to remember that we must act within the law when carrying out repairs/maintenance or renovations concerning asbestos.
Insulation – we note that some of you are still to yet to approve quotes for this. Remember all rental properties should be insulated as per the 2016 legislation by 1 July 2019. The longer you leave it the more expensive it is likely to be. https://www.tenancy.govt.nz/insulationdeadline/
Ventilation and Heating – these two important features of living in a property go ‘hand in hand’ and it is from now till spring during our 3 monthly inspections that we will be very careful to check that both are being carried out. Lack of ventilation and heating contribute to condensation and mould within a property.
The Healthy Homes Bill – The Building Warrant of Fitness and the Letting Fee – the current update on these changes is that we expect to know by the end of the year the outcome of this legislation – we will update you all once we know for sure about what will be law going forward in 2019.
The rental market to date – it’s always the question that people ask! Here in Christchurch – we operate very differently from the rest of NZ. Whilst much of the rest of NZ suffers from lack of supply of available rental properties, resulting in increasing rents (due to lack of supply), here in Christchurch we still have many properties for rent resulting in an oversupply. Having said that we are still renting properties and some rent after just one viewing!! Of course for this to happen the property must present well and be keenly priced in order to achieve minimal vacancy.
Click on the link below to hear more from our Division Manager Tania Ellis & our BDM Kelly Lang
Tony Alexander the economist for BNZ has an interesting item in his weekly newsletter regarding his views on placing money on deposit as opposed to owning property.
“A few weeks back I wrote an article comparing potential returns from keeping a property I have in Auckland or selling it and depositing the money. I thought overview readers might find some interest in it. One of my properties is a little studio in Auckland. At a stretch, it might sell for just under $300,000. Let’s assume it did, I could bank a capital gain and feel clever. But what would I then do with the money as a conservative investor?
If I put the $300,000 in the bank I could get 3.5% which after tax would deliver $7000 in the hand each year. After 10 years I would have saved up $70,000 plus some compounded interest.
Am I indifferent between the two options? No. After 10 years my $300,000 term deposit will still be $300,000 plus my accumulated interest. My little apartment, however, is really, really unlikely to still be priced at $300,000 a decade from now. I would expect it to rise at a pace of 2% per annum.
Therefore, attractive as the thought of getting $300,000 in the hand is at the moment. If the alternative is placing the capital on term deposit and watching inflation eat my capital away, I opt to keep the property and rent it out. ”
We are great fans of investment properties and suggest perhaps our clients should look at some of the larger residential investment properties with 5 or more bedrooms. The returns of these properties can be around 6.5% pa, which is excellent compared with a bank deposit rate as the above article says you are not having your capital eroded by inflation.
We endeavor to alert our clients to investment properties as they become available but if you are thinking that now is the time for you to look at purchasing check out our website @ www.wkb.co.nz or give us a call on 348 4149 and let us have a chat.
37 Monks Spur Road, Mt Pleasant
If you are thinking of selling whether your investment or own home
Let us know anytime: [email protected] or 03 348 4149
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