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We’re One Year Old! – Here’s your latest round of winter wisdom from Rentals co
Welcome to Rentals.co's newsletter bulletin. 

Greetings, everybody.

Rentals.co had its first birthday on August 1. We’re now operating in spiffy offices
with lovely décor and a solid team, but 12 months ago, it’s not as if the team started
from nothing! Rentals.co is a business which was carefully built because we, the
founders, saw a market opportunity to deliver property management with heart. We
recruited outstanding property managers, we put deeply experience leaders in place,
and we’ve been pursued a clean, respectable brand.

We do everything we can to match great people with great properties and set
market-realistic rents to suit everyone.

If you’ve noticed we excel in news, blogs and carefully crafted communication, it’s
because we care about our landlords’ experience and that of the tenants – hence
this latest newsletter, in which we provide the following updates:

Find out whether the OCR stimulus mean it’s a great time to invest in a
rental property
Urgent notes you need to know about the Residential Tenancies
Amendment Act 2019
Rents continue to rise – What this means for owners and occupants.


I’m a phone call away on info@rentalexperts.co.nz / 09 459 7139 if you need advice.
Cheers,

Al Inglis and the Team

 

Banks have dropped their rates in response to an Official Cash Rate review from the Reserve Bank. 


Banks have dropped their rates in response to an Official Cash Rate review from the Reserve Bank.

The OCR influences the price of borrowing money in New Zealand and provides the Reserve Bank with a means of influencing the level of economic activity and controlling inflation.

Here’s what’s happened:

With the RBNZ cutting the Official Cash Rate to 1.00% from 1.5%, our key interest rate down to the same as that in Australia.

Lower retail borrowing rates should support investment and the housing market.

The goal of the cut is to jumpstart spending and growth.

Banks dropped their interest rates immediately in response to the RBNZ cut, with ASB, BNZ, ANZ and KiwiBank all announcing cuts to home loan rates.

Recent house price weakness led the Reserve Bank to abandon its previous forecast that house price inflation will accelerate to 5%.

The OCR cut will clearly support residential property demand and prices, especially given recent positive labour market figures.

Banks will be looking to maintain their margins in advance of any extra capital requirements and loosening of the LVR rules in November.

Meanwhile Westpac chief economist Dominick Stephens says he thinks the consequence will be an upturn in the housing market, starting in the second half of 2019. Because Auckland house prices have been slowing tracking down for the past two years after a boom from 2010 through 2017, competition amongst the banks to give out nice low loan rates is already strong, 'rate wars' are frequent, and a lower-for-longer official cash rate also bodes well for mortgage rates over the next 1-2 years. Borrowers are sitting pretty. Property sales volumes and prices should hold up relatively well especially since the prospect of capital gains tax has now been taken off the table.

The upshot of it all: why would you keep money in the bank when property gives the best return?

Urgent info you need to know about the Residential Tenacies Amendment Act 2019 


New tenancy legislation includes updates it’s essential for landlords to know about.

Basically, landlords will be at a disadvantage in any Tenancy Tribunal compensation claim if tenants haven’t been offered a legally sound rental.

Expect the following from August 27:
* Limits to tenants’ liability for careless damage in rental properties.
* The Tenancy Tribunal full jurisdiction over cases concerning premises that are unlawful for residential purposes – so don’t have your tenants in garages or sleepouts which aren’t legally suitable to be rented.
* There will be more concrete regulations about how contamination of rental properties is tested and managed.

Click through to find out the updates which take effect on August 27.

Lets stop those who seek to kill renting in NZ 

Property Institute CEO Ashley Church wrote the following opinion in One Roof in late July regarding our coalition government’s position on the property investment sector.

“It’s hard to believe that any government could be so blind to the inevitable consequences of its rental housing agenda […] These policies are so aggressively anti-landlord that you could be excused for wondering if there is a deliberate plan to destroy the private rental sector […] Their policies will lead to higher rents, an exodus of investors and fewer rental properties at precisely the time when we need them the most.”

Mr Church’s piece said the current administration has done the following to hurt the interests of property investors:

• “It has introduced changes to tenancy laws which have moved toward regulation of rent increases and made it even more difficult to evict troublesome tenants.

• “It has extended the bright line test to five years to capture 'spectaculars' a move which demonstrates ignorance of the difference between speculation and property investment.

• “It has enacted legislation to ‘ring fence’ tax losses made on rental investments – a move which will end up shutting many new property investors out of the market.

“These policies are so aggressively anti-landlord that you could be excused for wondering if there is a deliberate plan to destroy the private rental sector,” Mr Church concluded.

Find the full article here

Want to know what we think at Rentals Co?


Demand for rental property will never be satisfied. Long term investors who aren’t provoked by flippant new changes will benefit from bricks and mortar investment.

There is no other investment like property. To learn about great investment properties on the market and for advice about when and how to snap one up, get in touch with Al Inglis and the team –

info@rentalexperts.co.nz
09 459 7139.

 

Click on through to enjoy our past newsletters

From the team at Rentals.co
ph 09 459 7139

www.RentalExperts.co.nz
Our  location is:

9-11 Reyburn Street
Whangarei, Northland 0110.
P.O Box 5043, Whangarei
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Rental Experts · 9-11 Reyburn Street · Whangarei, Ntl 0110 · New Zealand

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