Happy New Year!
On the back of a very eventful 2018, as we begin 2019 a lot of us who own investment properties will be wondering what this year will bring?
What we do know is that the deadline to have all rental properties insulated by the 1st of July is looming, and we have been hearing a lot about potential shortages of not only the product, but the labour to install as we get closer.
We should also see more around the Healthy Homes Guarantee Bill, with the Government hopefully giving us some information on what the ‘actual’ requirements are as opposed to the game of assumptions that we are currently having to play!
On a positive note it does look likely that the capital gains tax on investment properties has been at the very least stalled, and ring-fencing on costs does not seem to be too close either.
What I would like to see come into effect sooner rather than later is an amendment to what we are currently dealing with in relation to accidental or careless damage by tenants and the implications with insurance. My understanding is that a bill for this reform is sitting in parliament, however it has certainly taken a back seat to the other legislation we have seen pushed through last year. I do know there are lots who are pushing hard for this change, so I am as always optimistic that common sense will prevail and we will have a change to the current scenario.
As predicted we are starting to see a shortage of rental properties available, particularly in North Canterbury where there has historically been a large percentage of small investors who own one or two rental properties. They are either just overwhelmed with all the new legislation or struggling to get the dollars to add up, and thus they are not seeing them as a viable investment for them.
This, as you would expect is seeing rents beginning to rise already, so although a lot of changes are absolutely needed and beneficial, throwing them all at landlords at the same time is just pushing some too far.
Lets hope for both rental property owners and tenants, things settle down somewhat in the next 12 months!
We knew it was coming, and we were hoping for some clarity sooner rather than later, but as we have come to expect from our Governments, they have pushed it through with limited time to get all the ducks in a row and with limited information. I guess on the … Read more
You may be aware that the Residential Tenancies Amendment Bill had its Second Reading before Parliament last week. These long-discussed changes to the RTA (Residential Tenancies Act), (reinstatement of ‘no cause’ terminations, changes in notice periods, pet bonds, etc) are well and truly coming and we should know precisely … Read more