Will changes to zoning rules transform our green pasture into grey suburban sprawl? $12.50
SENTIMENT SURVEY RESULTS REVEALEDpowered by Kris Pedersen Mortgages SPECIAL REPORT
Resistance to Auckland Council development contributions heats up
a smarter path for
Prouse on the pros and cons of new builds.
offered by countercyclical investing.
ACCOUNTANT Do you find ‘plus GST, if any’ four scary words?
Could the loosening of greenfield land restrictions be the answer to New Zealand’s housing woes?
At Property Council’s Residential Development Summit earlier in the year, housing minister Chris Bishop passionately expounded on his vision for the future of housing. This included growing outward, as well as upward.
One way to address our high cost of housing, he stated, was by creating more supply; freeing up greenfield land around our major cities.
Much of this land is classed as highly productive under the National Policy Statement for Highly Productive Land (NPS-HPL) – which protects our domestic food supply.
But in Bishop’s analysis, the lower-quality land within this scheme could be used for housing.
At the summit he announced that cabinet had decided to remove the least productive land from under the rules governing NPS-HPL – allowing developers to access the land for development.
Running adjacent to this was the announcement of $100 million in lending from government, which allowed developers to access lower-cost finance in order to put infrastructure in place.
In our lead story this issue we ask if these changes are a silver bullet for the housing market – or a road to soulless suburban sprawl.
There are some of the opinion that we have enough new builds on the outskirts – properties sitting vacant as vendors shy away from cookie-cutter housing in the middle of nowhere.
But others feel that anything that makes development of land simpler and less mired in red-tape is a good thing. We traverse the ground between these positions and try to come to a balanced conclusion.
The results of our annual investor sentiment survey are also revealed in this issue.
There are some interesting results, particularly with regard to landlords intentions for rent increases in the year ahead.
Overall, property investors are in a holding pattern – there are opportunities out there, but the unsteady job market, geopolitical concerns, and the outflow of New Zealanders to other countries is leaving many in ”wait and see” mode.
Our profile subjects this issue are not so reticent.
Scott Unsworth and Greg Owen both have a background in highperformance sports.
And they have created a portfolio based on short-term accommodation in Auckland.
They transformed an underperforming property in Mission Bay into stylish holiday accommodation that’s commanding impressive returns. It’s all about utilising skills and understanding the importance of location – it helps that Scott’s wife is a talented interior designer who understands how to create stunning spaces.
Their winning formula has been repeated in their new venture, Stay Luxe, a luxury property management company that provides extremely high-end holiday homes for the rich (and sometimes) famous.
We hope you enjoy reading this issue as much as we enjoyed creating it. Stay warm and take care.
Joanna Mathers Publisher
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Mark Withers
Mark Withers and his team specialise in advising on propertyrelated transactions, valuation and restructure services, and tax planning.
Debbie Roberts
Debbie Roberts is a financial adviser with 25-plus years’ property investment experience. She co-founded Property Apprentice in 2010 with her husband Paul to help others achieve financial freedom through property investment.
Shadi Salehpour
Shadi is the owner of Let’s Rent, an award-winning property management company in Auckland known for its personalised approach and commitment to excellence. With a passion for fostering strong relationships between landlords and tenants, Shadi has built a reputation for integrity, innovation, and professionalism in the industry.
Sarina Gibbon
Sarina is an independent tenancy consultant, industry advocate and established media commentator. Her clients include the Auckland Property Investors Association, Renti and several property management organisations.
Matt Ball
Matt Ball is PR and advocacy manager for the New Zealand Property Investors Federation. Matt has decades of experience in PR and politics, is a property investor and has been a renter. These experiences help him represent and advocate for property investors and push for policy changes that benefit the whole industry.
Simon O’Connor
Simon is managing director of Sentinel Planning and has more than 20 years town-planning experience in the public and private sectors. He has significant Auckland-wide and international experience as a principal planner at Auckland Council and its predecessors in the policy and regulatory divisions.
Eve Prouse
Eve Prouse is a trusted property valuer and respected media commentator specialising in Auckland property markets - in particular South Auckland. Of Pacific heritage, Eve brings a unique, communityrooted perspective to her work.
David Faulkner
David is the general manager of property management for Property Brokers and is recognised as one of the leading experts in the New Zealand property management industry. He has been involved in the industry developing robust policies and procedures, training, and consultation services for many years.
Matthew Gilligan
Matthew Gilligan is a property investor, developer and tax adviser. He is managing director of chartered accounting firm Gilligan Rowe & Associates, where he heads the specialist property and asset planning divisions.
Leonie Freeman
Leonie Freeman is the chief executive of Property Council New Zealand. She has extensive experience in the property industry, having held top positions in both the public and private sector. From creating the concept of what is now realestate.co.nz, to buying and transforming her own residential property management business, she is a leading light in the industry.
Kris Pedersen
Kris Pedersen of Kris Pedersen Mortgages is a commentator on property and finance. His team sources top finance strategies.
Rachel Radford
Rachel Radford is the marketing lead for builderscrack.co.nz, New Zealand’s largest home improvement platform that connects homeowners with tradespeople. Her journalism background, combined with the platform’s comprehensive industry data, provides unique perspectives on nationwide property repairs and renovations.
Developers are poised to take legal action against Auckland Council over its proposed eye-watering hike in development contributions, particularly for greenfield projects, writes Sally Lindsay .
Developers are poised to take a judicial review against Auckland Council over its proposed eye-watering hike of up to 400 per cent in development contributions (DC) .
Under the council’s Draft Contribution Policy, released late last year, projects that would cost $30 million today are inflated to a 30-year price of $250 million and developers will be paying these charges on all new consents from next month.
Last year the average Auckland development contribution (DC) was about $50,000. Over the next decade, the council is aiming to invest $93.3 billion in infrastructure related to growth. To fund this and extend estimates for 30 years’ of infrastructure, the council is proposing to lift DCs from $20,000 to $50,000 per lot or household equivalent unit (HUE). Investment priority areas including Tamaki, Mt Roskill and parts of central Auckland, could see DCs rise as high as $119,000 per lot or HUE.
Subdivision Advocacy NZ (SANZ) spokeswoman Kirsty Merriman is leading a campaign with prominent property accountant Matthew Gilligan of GRA (Gilligan Rowe & Associates) to get the council to re-examine its modelling for the DCs.
Preliminary advice obtained by SANZ, from barrister Andrew Barker KC, backs up its claims the proposed DC charges could be illegal. He noted the financial modelling errors aren’t policy decisions, but factual errors that render the DC increases unreasonable.
Barker says calculating DCs based on nominal future infrastructure costs without accounting for the difference between the date of payment today and the date the cost is incurred, 30 years or more later, is a “reviewable error of law or an unreasonable decision by the council”.
Auckland Council financial strategy general manager Michael Burns says while staff are looking at issues with the contribution policy brought up in submissions to
the draft plan, it disagrees with SANZ and Barker’s assessment.
“The draft policy and modelling is a robust large piece of policy work and has been subject to external technical and legal review,” he says. It also doesn’t agree there is any error of law in the policy.
“If the council does not make and implement changes, SANZ will launch a judicial review,” Merriman says.
The lobby group says the key problems with the contribution policy include failure to discount future revenue to present value-inflating costs, excessive project add-ons and contingencies, such as traffic management at 13 per cent or 20 per cent, and contingencies of 50-70 per cent, when the industry standard is 10-20 per cent, and unrealistic housing growth forecasts.
Two of the biggest areas of concern are the over-estimation of contingencies and the escalation of costs without the discounting or opposite treatment of the revenue stream, Merriman says.
Under section 111 of the Local Government Act, the council is required to follow generally accepted accounting practices and the treatment of costs and revenue must be the same.
“It clearly and most obviously is not
doing so. The council’s procurement system is broken. It is not pricing work correctly. It is spending multiples more than the private sector because staff are estimating, and using expensive estimates at that.
“By the time those costs have been escalated into the future, they become a gross, egregious, nasty cost.
“It doesn’t only affect developers but ratepayers and tax-payers also,” Merriman says.
For example, a Mangere footpath renewal is 85 per cent ratepayer funded. Along with higher-thanprivate-sector overheads, a 70 per cent contingency is applied, it is delayed for 10 years, the capital expenditure is inflated, and the original $66 million dollar project turns into a $265 million dollar development, she says.
A more horrendous calculation error showed up in official information Merriman applied for on an $800 million Tamaki greenfield scale stormwater project covering Point England, Glen Innes and Panmure.
In meetings, council staff presented an alternative private $2 billion solution.
Merriman pointed out to council staff they had double-counted the project’s ground coverage and that brought the cost back to $1 billion. A cost approach for the supply and
‘By far the biggest effect of the increases will be on affordable houses as DCs make up the bigger portion of their costs’
installation of materials for the project had also been applied at five times the value a private developer would pay and the remaining $1 billion was trimmed back to $200 million.
“I was heard, a confidential meeting was held, and council staff have now gone back to the drawing board to fix the mistakes.
“Asking developers to pay today the costs of 20, 30, 55 years inflated is not reasonable. The law is clear – you can’t do that.”
By far the biggest effect of the increases will be on affordable houses as DCs make up the bigger portion of their costs, SANZ says.
In its contribution policy, the council claims the DCs will have no impact on house prices. In a surprising statement it says high DCs do not influence
housing costs because developers do not pass these fees onto buyers; instead, the market determines prices.
An incredulous Gilligan says this is “nonsense” dished up by the council’s favoured economic advisers.
“Of the nine economic reports on DCs, six did not agree with this assertion. The council only referenced the three that agreed in its study on the issue. And in 2013 the council received advice from the Internal Affairs Department, clearly saying development contributions do affect houses prices.”
The relationship between DCs and housing prices is fundamentally tied to economic principles of viability, supply, and demand.
Gilligan says the council is cherrypicking economic advice and analysis to justify increased DCs, which are a taxation on developers and home builders, and is boosting policies that
will contribute to the next housing crisis. “A significant increase in DCs directly impacts project feasibility by eroding developers’ profit margins. As a result, supply diminishes. Developers halt construction and landbank their assets, waiting for more favourable conditions.”
He says in short, supply crashes, and demand continues to build. Values get pushed up as a result, and it’s not until house prices increase that construction becomes viable, and so the end purchaser pays the higher DCs through resulting house price inflation.
In his advice to SANZ, Barker says it appears the council has used contingency and growth figures, land acquisition costs, projected dates for infrastructure development and the like in its calculations, which are not supported by industry practice or the council’s practice in other areas.
“It is unclear why the council has taken the approach of maximising the amount of DCs to be paid by current developers.
“If it is to achieve a purpose other than a fair and equitable contribution to infrastructure costs, then it would be exercising its powers for an improper purpose and the policy would be subject to review on this ground also.”
Barker’s advice also points out the council’s growth projections appear to have been manipulated to shift the burden to greenfield developments.
Merriman says an important note in his advice is the policy appears to be aimed at creating a generous and immediate revenue stream that the council can apply as it likes.
‘A significant increase in DCs directly impacts project feasibility by eroding developers’ profit margins. As a result, supply diminishes. Developers halt construction and landbank their assets, waiting for more favourable conditions’
While SANZ is not opposed to DCs and sees them as necessary to pay for infrastructure, Merriman says increases need to be honest, not inflated estimates.
She says they should stay at the existing level until the government’s new system of levies kicks in, or a commissioner can review the system to make sure the council’s funding models and allocations are fair.
“The whole system for growth contributions and infrastructure needs to be disassembled and put back together with an open and transparent procurement team.
“DC costs could fall if council procurement was better. Maybe it could be made private, managed or quoted at the time to get a far more accurate figure.”
Burns says the council has undertaken a thorough consultation process on the Development Contributions Policy, as a complex but significant piece of policy that affects Aucklanders.
enables. In large-scale development areas, such as Drury, Tamaki or Whenuapai, often the infrastructure will take decades to complete.
“The policy ensures the cost of new infrastructure is fairly shared between developers and ratepayers. Without this policy, ratepayers would cover the full cost of growthrelated infrastructure.”
Dividing the total cost by the total development gives the development contribution charge, Burns says.
The majority of councils in New Zealand set this as a simple flat charge, but there is an option to have indexed or annually increasing pricing.
“A number of submissions on the draft policy raised the pricing approach, which staff have considered and will provide advice on options to the governing body, including indexed or annually increasing pricing,” he says.
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“Staff are also focusing in particular on some changes to underlying financials; options for infrastructure investment; and flat vs indexed pricing.”
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A development contributions scheme looks at the total cost of growth infrastructure and allocates that cost across the total development that it
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Sally Lindsay explores the drivers influencing property in Aotearoa.
values fall as winter beckons
The average asking price for houses available for sale in April on Trade Me dropped to $855,150. Trade Me’s Property Price Index shows this was down 0.8 per cent compared to March, and down 2.6 per cent from the same month last year. Auckland fell 1 per cent compared with March – the biggest month-on-month decline in eight months. The average asking price was $1,046,900. Year-on-year, prices in Auckland
are down 3.2 per cent. The biggest decline was on the South Island’s West Coast where the average asking price in April fell 7.4 per cent from March. Otago went against the trend and posted a gain of 0.6 per cent compared to March. The total number of listings on Trade Me Property at the end of April was down four per cent from March, while use of the website by potential buyers declined by 13 per cent. Website realestate.co.nz shows the national average asking price on its
platform in April sank to $851,746, down from $884,995 in February – a drop of $33,249, or 3.8 per cent. In the main centres, asking prices declined in Auckland by $46,035, Wellington by $40,066, Canterbury by $16,347 and Otago by $50,128, exacerbated by the huge number of properties on the market. This has more than doubled over the past four years, rising steadily from 15,838 in April 2021 to 35,924 in April 2025. ■
Cotality’s (formerly CoreLogic) data shows the national median dwelling value increased by 0.3 per cent in April to $819,096. In data terms it means values are up 0.87 per cent in the three months to April, but down 2.02 per cent compared to April last year. Queenstown-Lakes remains the most expensive district in the country with a median value of $1,658,111, although values have declined monthly by 0.95 per cent and quarterly by 1.46 per cent. Auckland’s North Shore is the next most expensive district with a median value of $1,313,091, up 0.41 per cent for the month. At the other end of the scale, the most affordable districts were Ruapehu in the central North Island at $381,483 and Buller on the West Coast at $382,837. These are the only districts where median values are below $400,000. Cotality New Zealand chief property economist Kelvin Davidson says another boom in property values is unlikely. The stock of listings remains high and as interest rates for internal serviceability tests at the banks fall to less than seven per cent, caps on debt-to-income ratios for mortgage lending are becoming a bigger consideration for more borrowers. ■
A record high of 123,256 people left the country in the year to March. This was up from 106,689 in the year to March 2024 and 97,584 in the March 2023 year. This, and fewer people coming here, led to a big fall in migration, with a net population gain of only 26,351 over the year. That is down 74,024, or 74 per cent, from a net gain of 100,375 in the 12 months to March last year. An estimated 149,607 people arrived on a long-term basis in the 12 months to March this year. That’s down from 207,064 a year ago. ■
The slump in building consents might have bottomed out. Stats NZ data shows consents for new houses throughout the country rose 15.9 per cent from March last year to 3,398 in March this year. It was the highest number of new homes consented in any month of the year since June 2023. In the March year, 34,062 new houses were consented, down 3.3 per cent compared to the previous 12 months, following a 24.9 per cent decline the previous year. There was a surge in new apartments, with 495 consented, up 121 per cent compared to March last year, while townhouses and home units were also strong with 1,452 consented during the month, up 12 per cent on the previous year. Stand-alone house consents also blipped up, with 1,374 stamped, up 9.8 per cent compared to March last year. The total construction value of the new dwellings consented was $1.41 billion. That’s up 7.9 per cent compared to March last year, another positive indicator. Meanwhile Auckland Council figures show the council issued 899 code compliance certificates (CCCs) for new dwellings in February – the lowest month for a February month since 2020. That’s down from 1,291 or 30.4 per cent in January, and down from 1583, or 43.2 per cent in February last year. On an annual basis, the number of new homes completed in Auckland has declined from a peak of 19,560 in the 12 months to May last year, to 16,811 in the 12 months to February this year. That’s a drop of 14.1 per cent. ■
High levels of listings not helping the market
Sales volumes for Barfoot & Thompson during April were at a four-year high while prices were in decline and total stock levels hit a 17-year high. Auckland’s biggest real estate agency sold 842 residential properties in April, up 19.6 per cent on April last year and the best result in April since 2021. However, prices headed down. The median at $934,000 was down by $36,000 compared to March (-3.7 per cent) and down by $73,500 (-7.3 per cent) compared to April last year. This was the lowest median selling price in the month of April since 2020. The average selling price was $1,110,689, down by $34,356, or 3 per
cent compared to March and down by $102,139, or 8.4 per cent compared to April last year. Barfoot & Thompson received 1,578 new listings in April, only two fewer than the 1,580 in April last year. The total number of properties for sale, at 6,113, is the most the agency has had at the end of April since 2008, putting stock levels at a 17-year high. Barfoot & Thompson managing director Peter Thompson says sales slowed in the early part of April when talk of tariff trade wars reached its highest but rebounded quickly toward month’s end. “From a price perspective, the market showed no signs of lifting.” ■
Borrowers signed up for $8.5 billion in new mortgages last month – up 45.2 per cent from $5.8 billion in February and up 40.7 per cent from $6.035 billion March last year, the latest Reserve Bank data show. In March 2023 mortgage borrowers took out a smidgeon more at $6.036 billion. The total value of lending increased by a whopping 64.8 per cent for investors, who signed up for $1,779 billion, other owner-occupiers 39.7 per cent, who took out $4,924 billion and a lowly 24.5 per cent or $1,670 billion for first-home buyers. Investors’ share of new borrowings continues to rise and was up 0.4 per cent to 21 per cent from
20.6 per cent in February. Just a year ago investors share of new mortgages stood at a measly 17.9 per cent. While the country’s mortgage stock rose by $1.9 billion in March, the biggest monthly growth since December 2021 and the seventh month it has risen, the number of problem mortgages also rose by $61 million to $2.4 billion. Of the total $368.5 billion in outstanding bank mortgages, non-performing housing loans increased in March to $2,412 million month-on-month and $648 million or 36.7 per cent year-onyear, Reserve Bank figures show. The last time it was this high was in 2013. ■
REINZ data for April shows a continuation of the gradual recovery in New Zealand’s housing market. The house price index rose by 0.4 per cent in seasonally adjusted terms, a modest pickup from the 0.1-0.2 per cent gains in each of the previous five months. While prices are still down on the same time a year ago, the gap is narrowing, Michael Gordon, Westpac senior economist says. The price performance remains mixed across the country. The median price dropped by 1.1 per cent year-on-year to $781,000. Excluding Auckland, the median price remained unchanged year-on-year, at $700,000. Auckland’s median price declined by four per cent year-on-year, at $1 million. The number of properties sold rose by 9.5 per cent compared to April last year, lifting from 5,871 to 6,427 sales. Excluding Auckland, sales increased 11.1 per cent year-on- year from 4,023 to 4,470. The average time to sell improved for a fourth straight month. However, it remains longer than historic averages. “Lower mortgage rates have helped to revive interest among potential buyers since late last year. This has put only modest upward pressure on prices to date, but as the stock of unsold homes on the market is worked through, we expect to see house price growth pick up over the course of 2025,” Gordon says. ■
Westpac is sticking to its forecast of a 3.25 per cent OCR bottom and slightly lower interest rates, while the BNZ is predicting a base of 2.75 per cent and ANZ as well as Squirrel suggesting a drop to 2.5 per cent. Westpac chief economist Kelly Eckhold says the financial markets and some commentators’ kneejerk reactions to the uncertainties of the US-led global trade war are not helping. He says Westpac would rather take a more considered approach. “If things settle down, perhaps we have a bit of downside risk to our interest rates forecasts, but maybe not as much as some are predicting.” As for any effects on housing, Eckhold says there is no upward pressure on interest rates and house prices are going up slowly. Recent drops in wholesale interest rates are expected to lead to a cut of perhaps 20-25 basis points in fixed longer-term interest rates. “There is a decent chance there will be leg down in fixed mortgage rates again, which must be good for property investors as it will improve affordability. The bank anticipates more substantial changes in the housing market once the labour market improves.” ■
While further OCR cuts are likely, we may be nearing the low point for interest rates, writes Kris Pedersen .
As I write this, the budget has just been released.
I’m sure the Reserve Bank of New Zealand (RBNZ) was watching to see whether there was anything inflationary in it, with their next official cash rate (OCR) review announcement six days later, on May 28. By the time you read this, you will know the results.
I’m no economist, but I couldn’t see anything in the budget that should alarm them too much.
RBNZ may be feeling a bit uncomfortable, however. Their most recent business expectations survey showed that Kiwi businesses are expecting inflation to increase.
Everyone expects that there will be a further 25 basis point cut, which will take the cash rate from 3.50 per cent down to 3.25 per cent.
RBNZ commentary about what it is likely to do for the remainder of this year will be closely watched.
While there is definitely a large increase in investor interest, which can be seen through bank pre-approval levels in comparison to the last couple of years, the property market itself is relatively stagnant.
April had the largest level of stock overhang (the number of properties unsold at the end of each month) for any month in the last 10 years. It’s likely that this will continue for the remainder of the year, which may mean further OCR cuts. But whether we will get to the 2.50 per cent that some economists are recommending is yet to be seen.
It is fair to say that RBNZ has previously underestimated how far they will need to cut the cash rate. But mortgage arrears, credit defaults and liquidation numbers indicate the level of economic and financial pain being felt and it is likely further rate cuts will be required to turn the economy around.
Most banks seem to have settled into the one- and two-year pricing of 4.99 per cent and it will be interesting to see if a further rate cut spurs some more competition and who will lead it.
I would expect to see a minor drop by some banks, but it appears we are quickly getting close to what may be the low point in rates this cycle. At some stage over the next 12 months there may come a time where it makes sense to lock in for a longer term.
Other than Westpac bringing out a three-year rate at 4.99 per cent, there’s been no sign of any lender going under 5 per cent for that or longer rate terms.
I suspect we may see the one-year rate head towards a low of 4.5 per cent, but for other loan terms we may not see much more downwards movement. ■
The interest rates specified in this table were accurate on 15 May 2025. Interest rates are subject to change without notice. Different fees and charges apply to each loan depending on the motgage lender. Seek expert advice to determine the mortgage lender that is right for you and your circumstances. A disclosure statement is available on request and free of charge.
Investor-targeted listings from realestate.co.nz data have dropped 20 per cent month-onmonth – from 4,728 in March to 3,765 in April this year.
At a regional level, listings targeting investors dropped 27 per cent in Auckland (from 2,093 in March to 1,521 in April); Canterbury listings dropped from 562 to 485 (14 per cent); Wellington dropped 22 per cent (314 to 244) and Otago dropped from 136 to 116, a 15 per cent decrease.
This came down from a peak a month earlier – listings targeted at investors reached 4,728 nationally in March, up from 4,641 in February; January listings were lower than April’s at 3,382 (which is seasonally typical).
Vanessa Williams, general manager of marketing and media at realestate. co.nz, says that investors are able to be more strategic with their timing than owner-occupiers.
“It wasn’t surprising to see listings targeted at investors dip in April, which was reflective of the wider market. Unlike owner-occupiers, who often need to list their homes due to lifestyle
changes, such as growing families or separations, investors typically have more flexibility in their timing.”
Larger homes (namely three or four-bedroom properties) were the most likely to be pitched at investors in Auckland.
There were 676 three-bedroom homes, and 512 four-bedroom plus properties, targeted at investors in Auckland: with only 272 two-bedroom homes and 61 one-bedroom homes.
“This likely comes down to return on investment,” says Williams.
“With house prices remaining high in Auckland, investors may be looking to maximise rental income by purchasing larger properties that can accommodate families or multiple tenants. A four-bedroom home naturally commands a higher rent than a two-bedroom, helping offset higher costs.”
The lack of one-bedroom units was notable across the country: only 105
realestate.co.nz has been helping people buy, sell, or rent property since 1996. Established before Google, realestate.co.nz is New Zealand’s longest-standing property website and the official website of the real estate industry.
ABOVE Smaller dwellings are less likely to be targeted at investors.
RIGHT Three- and four-bedroom homes are being marketed to Auckland investors.
one-bedroom units nationally were targeted at investors.
Williams says this is unsurprising.
“There is a limited pool of onebedroom properties listed for sale across our site nationwide, so it’s not surprising that only 105 of those are being marketed to investors,” Williams shares.
“One-bedroom homes tend to be concentrated in city and cityfringe locations, and primarily in bigger cities such as Auckland and Wellington, where purchase prices can be relatively high and therefore rental yields can be less compelling.
“A good real estate agent will know their markets well and will choose their target buyers accordingly.”
Williams feels that the slow-down in investor listings might be seen as reflective of wider uncertainty in the market at present.
“What we’re seeing here may be a sign that many investors are choosing to sit tight amid ongoing global economic uncertainty, or in anticipation of potential market shifts.” ■
Our experts address your property queries
Do you have a burning property investment question you need an answer for? Whether you are just starting out in property investment, or an experienced investor, email joanna@informedmedia.co.nz to have your questions answered.
Matthew Gilligan Gilligan Rowe + Associates, gra.co.nz
Kris Pedersen
Kris Pedersen Mortgages, krispedersen mortgages.co.nz
Mark Withers PKF Withers Tsang, pkfwt.co.nz
QDoes a “security swap” exist when it comes to mortgages? We own a property valued at $1 million with a $340,000 mortgage on it. We also have another property mortgage free worth $700,000. Could we transfer the mortgage to the $700,000 property in order to make the $1 million property mortgage free?
AYes, they certainly do. Generally, there are a few things that come into the equation when banks assess whether they will or won’t do a security swap – loan-to-value ratio (LVR) and security type/suitability, and entity. In your case:
• LVR is fine on both accounts (assuming both standard residential properties), as the LVR is either 34 per cent or 48.6 per cent, which is well under the thresholds for LVR requirements.
• When it comes to security type/ suitability, what they are generally looking for is whether the property is also a standard residential property (not commercial, or specialist/unique in nature), and that there are no issues with the property (unconsented works, etc).
Sarina Gibbon Independent tenancy consultant, sarina@tenancy advisory.co.nz
Ryan Weir Propertyscouts, propertyscouts.nz
Something else that also can come into the equation at this point is whether the property is owneroccupied, or rental, or vacant land – all of which can be questions the bank may want to know the answers to. Then the entity generally needs to be the same (ie Smith Family Trust for Smith Family Trust) when swapping these properties. If an entity is different, provided it has the same people behind it, it’s usually okay, but can certainly add complexity. To make the process easiest, generally you want to swap something that is somewhat “like for like”. ■
Kris Pedersen
QI heard tenants will soon have the right to keep pets. I’ve had bad experiences in the past (dog urine ruined my carpet). Will I be forced to accept pets?
ANot exactly. The new law (expected later this year) will give tenants a “rebuttable presumptive right”
to have a pet, meaning landlords can’t say no without a valid reason. But you can decline pets if the property isn’t suitable, there are safety concerns, or body corporate rules prohibit them. The big difference here is liability. Unlike accidental or careless damage (where tenants often aren’t liable or are capped at the insurance excess), pet damage is
QWhilst renting, I bought an investment property in 2017. In 2022, I refinanced to buy my owner-occupied house with one large loan to facilitate my investment property and my own home. The refinancing was with the same bank. How would interest from that loan be apportioned to my investment property and owner-occupied home?
Afully the tenant’s responsibility – no cap. You can also require a professional carpet cleaning if a pet is kept indoors. While you may not have as much control as before, there are still protections in place for landlords. ■
Ryan Weir
Interest deductibility is determined by the use to which the borrowed money is put rather than the security for the lending. So, only the interest on the portion of the new debt that refinanced the original loan for the investment property is tax deductible. None of the interest on the portion of debt that was used to buy the non-income-earning personal home is deductible. ■
Mark Withers
QI have been given conflicting advice on whether I should move my owner-occupied home to a look-through company when it becomes a rental in a few weeks or just leave in in my name. How do I know which is the right way? The rental was purchased in 2017 and has a value of $670,000, a mortgage of $670,000 and rents for $700 a week. The owneroccupied home bought in May this year has a value of $675,000 and a mortgage of $420,000. The rental will not make a profit. What should I do?
AThat is an excellent question. Before I comment on the optimal structure for your existing home once it becomes a rental, I want to highlight how the tax rules work when it comes to assessing what
interest is deductible. Now that the interest limitation rules have been repealed, interest is deductible if incurred on money borrowed to buy, or improve a property that is generating rental income.
You state that there is $670,000 of bank borrowing in relation to your rental, which was bought in 2017 and has a current value of $670,000. The question here is how much of this $670,000 of bank borrowing traces back to the purchase, or improvement of, the rental? My suspicion is that a far lower amount of borrowing traces back to the purchase or improvement of the rental, and therefore the amount of borrowing on which you can claim an interest deduction is likely to be lower. With this in mind, you are highly likely to be better off carrying out a restructure of the existing home at the point of conversion to rental use and the purchase of a new home. I would also generally
recommend that the new home is settled into a trust for longterm asset protection and estate planning purposes. Having said this, without further analysis I cannot definitively say that you should do this because there are a number of other considerations that need to be taken into account before you proceed. Transferring the existing home into a rental entity can give rise to tax consequences, such as a resetting of the brightline “clock” and you need to be conscious of these consequences. Furthermore, whether the rental entity should be an LTC, or an “ordinary” company, or a “rental” trust is another issue that requires deeper consideration. In short, you should seek further advice here before you proceed. ■
Matthew Gilligan
QI visited my rental property a few days after a flat inspection to do some work on it. The tenant did not know I was going to visit, and they were away. The house was in a terrible state – do I have any right to demand they clean it up? As I stated, they did not know I was going to be there – have I done anything wrong by visiting the property without telling the tenant? Not sure how to proceed.
AThe issue here is that you’ve discovered a potential breach of the Residential Tenancies Act (RTA) while committing an unlawful act yourself. To put it another way, if in the course of robbing a bank, you witness another crime – would you make a citizen’s arrest? I know!
Unless you’ve given 24-hour notice or obtained your tenant’s specific consent before entering the property to carry out repairs, your entry is most
likely unlawful under Section 48 of the RTA, and the maximum penalty is $1,500.
Now, compare that to the potential breach under Section 40(1)(c) – the tenant’s failure to keep the premises “reasonably clean and tidy”. This is not an unlawful act, and no penalty is attached. That should tell you where the bigger problem lies.
Now, turning to the state of the property: It’s clear that it was up to standard during the original inspection – otherwise, you would have flagged it then. So the tenant tidied up before the inspection and then let things slip afterward. This is not uncommon. Who hasn’t cleaned up when they know someone’s coming over?
The key here is that this may not even be a breach of Section 40(1)(c) at all. The law says tenants must keep the property “reasonably clean and tidy” – not “absolutely spotless” or “clean to the landlord’s standards”. Remember, your property is your tenant’s castle.
As long as they’re not breaking the law, they get to live how they want.
So, what does this mean for your next steps? Here’s the thing: tenancy compliance is the easy part. Yes, everyone should follow the Act, but the real art of property management lies in human relationships. Your rental business’s long-term success depends on fostering trust, respect, and open communication with your tenants. If your interaction with this tenant is solely about RTA compliance, you risk turning a small issue into a big one, damaging not just the relationship, but also the future profitability and longevity of your rental portfolio.
My suggestions:
1. Front foot the unlawful entry. Apologise for the mistake, explain the steps you’ve taken to avoid it in the future. A little contrition, transparency, and personal accountability go a long way.
2. Wait for the appropriate standdown period, and then schedule another inspection with the correct notice (no less than 48 hours, no more than 14 days).
3. If the property remains in poor condition, have a constructive, adult conversation with your tenant. Be tactful and respectful. Don’t just focus on compliance – use this opportunity to align expectations. Let your tenant know that maintaining a clean and tidy property is important to you both, and ensure they understand the standards moving forward. Follow up with a 14-day notice to remedy if needed, and schedule a re-inspection with the appropriate notice. Always maintain a balance between enforcement and respect for the fact that it is their home.
Look beyond the knuckle-head stuff and focus on your mission, which is to build sustained and profitable tenancy relationships. You can know the Act inside out, but still flush your rental portfolio down the toilet if you lack tact, care, and a deep understanding of why you have rentals in the first place. ■
Sarina Gibbon
There’s a lot of concern about what the new rules around pets could mean for landlords, as Matt Ball explains.
One of the best parts of my job is travelling around the country talking to property investor associations. It’s great to meet people, find out what’s happening in their area, hear their concerns and update them on the work being done on their behalf by the Federation.
The mood around the country is subdued, with many areas having more rentals than tenants and landlords having to drop rents. Lots of factors affect the rental market, but is it just a coincidence that rents are dropping now that interest deductibility and 90-day no-stated-cause terminations are back?
No-one’s grizzling, this is business, and we’re used to dealing with ups and downs. I love how investors are still looking for that next deal that is going to give them a good return or the opportunity to add value or both. You’re an optimistic, innovative bunch. One thing that is consistently worrying investors, though, is pets. There’s a lack of detail about the pet rules coming into force later this year, a lack of clarity that’s creating uncertainty, which is never good. I’ll try to help with that.
The new pet rules are due to come into force later this year, once the arrangements for taking pet bonds have been put in place. Think October/ November. So do your prep now.
Some landlords have already been asked by tenants if they can have a pet, thinking the changes were in effect. They’re not, so you don’t have to grant a pet request, and you must not take a pet bond. Here’s a fishhook – you can’t add a pet bond to an existing tenancy after the changes come into effect. If you agree to a pet now, you can’t charge a bond for it later.
Once the new law comes into effect there will be a presumption that a tenant can keep a pet or pets unless a landlord has “reasonable” grounds not to allow them.
However, that presumption doesn’t mean they can just turn up with a pet without telling you. There must be written consent to keep a pet, either in the tenancy agreement or a separate document. If you do not allow a pet, the document must state the reasons why.
‘Lots of people have asked me “what’s a pet”, worried they’re going to end up with a horse or a goat’
Existing tenants may put in a request to have pet. You’ll have 21 days to respond, in writing. The response needs to include your decision, any conditions you may have on keeping a pet and – if you refuse to allow a pet –the grounds for refusal.
The act gives some examples of what reasonable grounds for refusal might be, or reasonable conditions for keeping a pet, but these aren’t exhaustive, and I suspect that what’s “reasonable” will be subject to some debate and a few tenancy tribunal hearings.
Reasonable grounds for excluding pets include:
• the property isn’t suitable (size, fencing, or “other unique features”)
• a rule or bylaw prohibits pets –I believe this includes body corporate rules
• the tenant has previously not complied with relevant by-laws relating to the pet or type of pet
• the number of pets
• the size or type of pet
• the pet causing damage or being disruptive
• a dog that has been classified as dangerous or menacing under the Dog Control Act or if you have reason to believe it has attacked people, pets or livestock previously
• the tenant has not agreed to a reasonable condition for keeping a pet
• the tenant previously failed to comply with a reasonable condition relating to keeping a pet.
You’ll note that some conditions are general in that they apply to the property in relation to keeping pets, and others are specific to the pet, type of pet or the tenant.
Reasonable conditions you may set if you consent to pets include:
• that the tenant pays a pet bond (up to two weeks rent)
• that pets are restrained while a landlord enters the property
• if a pet is allowed inside the house, you can include a condition requiring carpets to be cleaned to a professional standard at the end of the tenancy. Note the “professional standard” wording – you can’t require that the carpets are professionally cleaned.
These are good examples, but they don’t cover every possibility and how landlords apply them may differ, so that’s where the reasonable test may come in and cause trouble. If you and your tenant can’t agree on what’s reasonable the decision may be made for you by a Tenancy Tribunal adjudicator. To make life easier I suggest using one of the examples above if you are refusing consent or setting conditions unless you have no other choice.
Lots of people have asked me “what’s a pet”, worried they’re going to end up with a horse or a goat! A pet isn’t defined in the act, but most cases should be covered by the tests in the act. Clearly an apartment isn’t large enough for a horse, and few city places would be suitable for a goat (though I do have a goat story to share from my Auckland flatting days – ask me next time you see me).
An annoying rooster or other screeching bird would come under the “being disruptive” condition above, and possibly under a local by-law. What I’m saying is don’t worry about this bit so much, the pet rules are mostly intended for people with cats and dogs.
There are also changes in the act that deal with damage, but this article is long enough and that discussion will have to wait for a future date.
I hope this has been useful. To keep across this and other important topics, sign up for our weekly newsletter at nzpif.co.nz/#mailinglist. ■
Profile Scott Unsworth and Greg Owen
Scott Unsworth and Greg Owen have built up a highly successful short-term property portfolio and have built a luxury accommodation business in its wake, writes Joanna Mathers .
Photography by Stephanie Creagh.
When beautiful property and thoughtful interior design partner together, magic can happen. Property investors Greg Owen and Scott Unsworth understand this magic; together they have grown a successful portfolio, and a new business, in the luxury property space.
When Scott invested in a commercial/residential property on the corner of a popular street in Mission Bay in 2012, the properties were initially attracting a yield of 3 per cent. Having pivoted to short-term holiday accommodation with Greg’s help, the yield across the portfolio is 15 per cent. Their success has been based on many factors – the ability to read the market, understand trends, and utilise interior design to attract visitors – and their new luxury short-
stay accommodation business Stay Luxe is drawing on the lessons learned through this journey.
Scott is the founder of Orca, a leading sportswear brand that the former triathlon champion successfully licensed internationally. He lived overseas for many years, before returning to New Zealand in 2011 from Hong Kong; purchasing a property in the prestigious suburb of Kohimarama.
He and his wife Hildegard knew the property had potential but needed to be renovated – a project that took much longer than expected. But it was worth the wait.
“Hildegard is an interior designer, and she completely transformed the space,” says Scott. “By the time it was finished the value of the property had increased by 50 per cent.”
So enjoyable (and profitable) was the project that Scott decided he should find an investment property that he could work magic on again. In 2012, Scott found a mixed-use commercial and residential property in Mission Bay (a Chinese medicine practitioner used the top space and there was a residential tenant in the below apartment) that had a lot of potential.
While the location was great, others weren’t so keen. Neither the office space or the apartment was in great condition and Scott was new to the property investment, so the results were far from certain. But he was convinced.
Scott laughs when he remembers the rookie mistakes made when bidding for the property at auction.
“I put my hand up for everything,” he chuckles. “It was going up in
$1,000 increments and it hadn’t met the reserve.”
The properties didn’t sell at auction, but Scott negotiated with the buyer two days later, and the deal was sealed.
But the two properties were never his end game. There were four units in the building, the other two owned by elderly owner-occupiers who didn’t want to sell. But Scott wanted to own the entire corner site and was tenacious in his attempts to purchase them.
“I kept offering to buy the units, but they kept turning me down,” he says. “They were adamant that they would stay there for the rest of their lives.”
Eventually, one of the owners put their property on the market without telling him. He discovered that there was going to be an auction for the property and attended in secret –buying the property for $30,000
Scott and Greg have been friends for years and have turned their expertise in elite sport into success with high-end property.
above what the bank would lend him.
The final unit took some time to secure. Scott offered the owner a price he felt wouldn’t be bettered in the market. “I told him that this was his only chance at this price; that if he didn’t accept the offer, that was final.”
The owner didn’t accept the offer –but contacted Scott later to say he was ready to sell.
“I told him that original offer no longer stood, and I ended up paying $200,000 less than the original offer.”
Scott had four units in a great location in Mission Bay. But he was aware that keeping them as residential or commercial tenancies wasn’t going to achieve the results he wanted.
Enter Greg Owen. The highperformance sports coach, who owned an organisation that had worked alongside many of New Zealand’s elite athletes, had been friends with Scott for many years. He was looking for a new project, so Scott brought him on board to help oversee the transformation of his corner site into something more lucrative.
They had become aware of the potential for significantly higher yields in the short-term holiday rental market: “in fact, we would be attracting two or three times the income that you can achieve with long-term rentals,” says Scott.
Scott and Greg worked together on transforming the property into a series of charming coastal getaways. They oversaw the renovation of the units, with Hildegard helping with the interior design.
The four units were split into eight one-to-four bedroom apartments.
They decided on a coastal theme for the units – keeping the interiors the same, using the same kitchen in each. The units are targeted at the middle range of the market, not too expensive, not too cheap.
They had a good builder who explained everything to them as they went along, plus excellent architects and engineers. They also used a home design app that gave them
3D visualisations of what they wanted to achieve, which they would take to the architect.
“We changed plans a lot, which was sometimes hard on the builders,” laughs Scott.
Greg explains that the Mission Bay property has ended up bringing in excellent revenue: “It’s great because of the coastal location and it looks really prestigious,” he explains.
Covid inevitably had an impact on the Mission Bay property. With visitors locked out, they changed some of the rentals to long-term; and a lot of returning Kiwis needed a place to stay. (They have since changed the units back to short-term rentals).
But once the lockdown restrictions were lifted, there was the opportunity to repeat the winning formula with another coastal property. The five-bedroom home with a small self-contained dwelling was located in Tauranga, next to the beach. It was a run down 60s property, but the location was ideal. They repeated the formula – turning the property into four holiday units.
‘This provides the owners with a great income stream; and they are able to sell later if the opportunity arises’
“We were all on the tools,” explains Scott. “We managed to turn this one around very quickly.”
They ended up selling the Tauranga property last December, walking away with a considerable profit after the renovations.
The pair now have the Mission Bay and a Takapuna property – marketed under the brand Stay Mission and Stay Coastal. The Takapuna home is and a stunning four-bedroom beachside property. The interior design is courtesy of Hildegard; and the properties all perform extremely well.
Scott and Greg have recently launched a new venture, Stay Luxe, that offers luxury holiday accommodation for wealthy visitors to Auckland.
They were aware that there was a gap in the luxury accommodation
market and used the lessons they learned in creating beautiful holiday homes to market the properties to the right clients.
They are managing properties owned by high-net-worth individuals, some of whom are unable to sell their multi-million-dollar homes in the current market.
“This provides the owners with a great income stream; and they are able to sell later if the opportunity arises,” says Greg.
Greg helped build the website for Stay Luxe and he manages the business.
It’s been successful so far and this is a testament to the strength of their friendship and background in elite sport – bringing their expertise in the sporting world to New Zealand’s high-end holiday home market. ■
The coalition government has changed the rules around productive land, in order to facilitate future housing development. Is it a silver bullet or a fast-track to grey suburban sprawl? Sally Lindsay and Joanna Mathers investigate.
Keith Aldous (of Aucklandbased We Subdivide) shoots from the hip.
He’s aware of how the subdivisions that spread out from city centres into pastureland can become ugly and undesireable.
“There are numerous examples around Papakura and Papatoetoe in the south [Auckland] which look awful and they are not selling. They’re built quickly, cheaply, they’re not insulated properly and neighbours can hear each other.”
Aldous is pondering the changes to greenfield zoning rules that housing minister Chris Bishop announced at the Property Council Residential Development Summit earlier this year.
The changes relate to the National Policy Statement for Highly Productive Land (NPS-HPL), which was introduced by the last government to protect New Zealand’s highly productive soils.
The NPS-HPL protects a total of 15 per cent of the country’s landmass – an area nearly as large as Otago. Much of this protected land is around our biggest centres, and in Bishop’s view, the rules are impeding “growth busting to get out”.
“[We need to strike a balance]
‘They’re built quickly, cheaply, they’re not insulated properly and neighbours can hear each other’
KEITH ALDOUS
between how we protect our most productive land, and the development of more homes,” he stated.
In order to facilitate this, cabinet has removed the protected status of land with lower quality soil (classified as LUC-3 land), and opened it up for housing.
Gone is the previous government’s focus on intensification – Bishop wants New Zealand to grow up and out. To that end, government is also offering developers affordable finance to facilitate infrastructure for these developments.
The development phase of a project is often the riskiest – and private financiers reflect this by charging higher interest rates.
This being the case, National
ABOVE Suburbs will begin to spill into greenfield land under the changes to zoning rules introduced by the current government.
Infrastructure Funding and Financing (or NIFFCo) will be providing $100 million for low-cost financing of medium-sized greenfield developments over the development period.
NIFFCo will charge approximately what private financiers would charge for completed developments – saving developers money, which should be passed on to homebuyers.
But while the expansion of available land for housing makes sense in an theoretical sense – supply and demand, more houses, lower prices –Bishop’s plan is not without its flaws.
And some are concerned it may cause more problems than it solves.
Development in greenfield around the edges of cities can be problematic. Subdivision at scale is often standardised – endless streets of identical houses. The funding available favours large developers – who create at scale.
Clever master planning is needed to ensure bland suburban sprawl is avoided.
Aldous points to Milldale, on the northern outskirts of Auckland city, as an example of bland suburban sprawl. And he feels that the development changes will favour mega-developers.
“It will be the same old story, five or six builders buying superlots and creating generic two-storey box-standard houses”.
Even though there are some nice properties being built, he says “developers also run into problems when there is no overall design concept.
“The builders just put their own spin on what they want to build and nothing flows between them. There needs to be careful consideration before any development takes place. There needs to be more overall master planning of suburbs.”
South Auckland-based Ray White AT Realty Group director and branch manager Tom Rawson foresees another issue – a glut of new homes that no one wants to buy or rent.
The $100 million is being made available through National Infrastructure Funding and Financing (NIFFCo) for low cost financing of medium-sized greenfield developments – about 1,000 to 2,000 houses.
Under the new Greenfield Model, NIFFCo will lend to selected developers through Special Purpose Vehicles (SPV) at competitive interest rates for water and bulk transport, community and environmental resilience, infrastructure (eg roads, stormwater, public transport, cycleways and flood-protection design, consenting and delivery costs), to allow a project to progress.
Once the development is completed, the debt will be refinanced to private markets and the funding will ultimately be repaid by future homeowners through an annual levy based on factors such as land area, value and use.
The levy will be capped, but homeowners will know in advance how much they will need to pay and over what timeframe. When the property owners sells, the requirement to pay the levy will shift to the new owners. The levy ends once the infrastructure is paid for. Bishop claims the lower funding interest rate will mean an average
“We have ended up with hundreds of new homes in the rental pool, because developers can’t get the sale prices they want to make a decent margin,” he says.
He continues that taxpayers need to question why the government needs to fund developers at all? Is it because the banks won’t?
“Developers have probably been lobbying for this, saying the banks won’t lend them money and they need cheaper finance. For this type of funding to work (and address affordability) it has to be economical for developers to to buy the land, design, provide the services, build,
finance and sell the properties.
“At the moment it isn’t. And that’s true. But the banks aren’t lending the money because they see many greenfield subdivisions and developments as risky.”
Bigger developments on greenfield land have more risk. Infill developments in the city are seen as less risky as they are proven.
Canterbury-based construction expert Mike Blackburn has a different take. He says that anything that makes it easier, cheaper, faster and simpler to bring houses to the market is a good idea.
ABOVE AND LEFT Darfield and Amberly in Canterbury are experiencing significant demand from buyers who want a home with a backyard at a competitive price.
But he wonders if the $100 million allocated to funding will go far enough.
“One of my clients spent $500,000 just on an application to the local council for a 150-200 lot subdivision. That is $2,500 per section before a bulldozer even gets to the site. And that cost goes on the retail price of the house when it is completed.
“Developers spend that sort of money upfront in the hope they are going to get their developments across the line. If for whatever reason they don’t, then that money is just gone.”
He also questions whether developers will want to go through government scrutiny for their projects.
“Obviously sticking your hand out for any sort of loan from the government will come with a series of hooks regarding transparency and accountability for delivery.”
Nevertheless, Blackburn says that a significant percentage of the population don’t want to live in medium-density, multi-unit apartment or terraced complexes (he points to the thousands of unsold two-storey terraced houses around the country).
Having access to more land could be a great selling point.
“There is significant demand for greenfield developments, which is why fringe towns, such as Darfield and Amberley, are becoming popular because buyers can get a good size section with a backyard at a competitive price, within a 30-40-minute drive of Christchurch CBD. “[The changes] will give confidence to the industry, and with a bigger pipeline of land coming through, it will boost supply and keep prices down.”
NIFFCo has started working on a pipeline of medium-sized developments and says it will announce projects when transactions have “a high certainty of proceeding”.
At this stage only a small number of developers have made inquiries to NIFFCo about the funding and it will work with them to establish whether their developments are suitable for the funding.
Any additional funds above the $100 million will be subject to future ministerial decisions.
‘There is significant demand for greenfields developments, which is why fringe towns, such as Darfield and Amberley, are becoming popular because buyers can get a good size section with a back yard at a competitive price’
The agency says the new tool makes the cost of new infrastructure more transparent, while ensuring it falls primarily on the property owners who benefit across generations.
It’s useful to take the changes in context. In 2019 Auckland Council’s then chief economist David Norman said developing greenfield land was eye-wateringly expensive and had to be staged.
The (then) Future Urban Land Supply Strategy allowed for the staged development of about 140,000 greenfield dwellings over 30 years, with an estimated cost of council-
provided water infrastructure and central government-funded transport infrastructure at $21 billion (or about $140,000 per dwelling).
Developers contributed typically about a third of the cost.
This is where NIFFCo’s loan will help developers. The lower-cost financing over the development period will be at rates similar to what private financiers charge for completed developments. “This support will bridge the financing gap and help ensure that new homes continue to be built in areas where they are needed most,” a NIFFCo spokesperson explained. ■
Investors don’t have high expectations of the year ahead, but their concerns around availability of credit and high interest rates have reduced, according to our 2025 survey.
The muted property market has been reflected by a muted response from the investors who took part in the latest New Zealand Property Investor magazine investor sentiment survey.
House prices are currently stagnant – the most recent data from Cotality (formerly CoreLogic) reveals that shows that median property values have edged up by only 1 per cent in the past 3-4 months.
And investors are feeling this. When asked around expectations of property values, 45 per cent stated that prices would stay the same. Even though this was offset by the 45 per cent who felt prices may rise, the remaining 8 per cent believed the prices would decline – tipping the scale towards neutral of negative sentiment.
The changes to legislation around the 90-day, no-stated-cause terminations, the reinstatement of interest deductibility, and lower interest rates were predicted to increase buyer activity. But this hasn’t played out the way pundits thought – other factors including the soft labour market and debt-to-income ratio limits for mortgage lending, are keeping the market in in check.
Matt Ball from New Zealand Property Investors Federation (NZPIF) says that the low-key sentiment expressed in the survey reflects what they are seeing on the ground.
“The feedback is that there are still opportunities for the canny investor, who puts in the time and effort to find that property with a good yield or potential for improvement, but there are a number of factors holding back a wider market recovery.
“Income (rent) is down, and costs (rates, insurance, maintenance) are up. Interest rates are falling, but it will be 6-12 months to feel the full benefit and the money clawed back will largely be used to make up for previous losses or cover higher costs.”
The spectre of global economic unrest due to Trump tariffs is also lingering – plus uncertainty about next year’s election.
‘New build has limited opportunities to add value, and you are competing against the same product in the same market. In the case of twobedroom townhouses, good luck having a point of difference in rentals or when selling’ SURVEY RESPONDENT
“There is a lack of confidence that interest deductibility will remain in place. Add in low migration, high unemployment and a subdued New Zealand economy, and it’s not hard to see why many are in wait-and-see mode.”
Let’s dig down into the results to find out how New Zealand investors are feeling about the market.
Auckland once again topped the charts when it came to the amount of investment properties. Forty per cent of respondents stated that they owned properties in Auckland, with Canterbury coming second on 22 per cent, and the Wellington region on 20 per cent.
The stats shows that the vast majority of landlords weren’t “megalandlords” – it’s a sector proliferated with “mums and dads” who invest for future security.
Forty per cent of respondents stated that they owned between one and four properties, 18 per cent
owned between six and ten, and 23 owned between 10 and 20 properties. Only four per cent owned more than 20 properties.
The section on motivations reflect the preponderance of landlords investing sensibly for the future.
When asked the most important driver when considering investment properties, 37 per cent listed longterm value growth. Cash-flow creation came in second, with 26.8 per cent of respondents listing this as their most important driver. The least important drivers were equity creation, followed by reduction of debt and generation of income.
Landlord concerns have changed considerably since the survey was conducted last year.
In 2024, an overwhelming 85 per cent stated interest rates were their
primary concern; this year the 62 per cent of respondents listed that finding good tenants was at the top of mind. Ball states that this also aligns with what NZPIF is hearing.
“This is not surprising given what we hear from landlords around the country daily, and it’s just simple supply and demand.
“There are a record number of properties for rent – the highest in a decade according to Trade Me – and there isn’t the demand there for that supply. End result is it’s harder to find good tenants and rents are under pressure, with significant falls in rent in some places.”
Key survey results
How many investment properties do you own?
How long have you been investing for?
What is the most important driver when considering an investment property?
David Faulkner, general manager of property management at Property Brokers, says there are other factors coming into play.
“There are a multitude of reasons why landlords are finding properties hard to rent. Net migration, sluggish economy, increase in stock and less tenant movement are probably the biggest drivers.”
Low yields are also a concern, at 52 per cent, with lender’s servicing criteria and interest rates coming third at 30 per cent.
When the Credit Contracts and Consumer Finance Act (CCCFA) rules were ramped up in November 2021, mortgage advisors and those in the market for a new mortgages were thrown in the deep end.
The previous rules had been around since 2015, but the new tightening of the rules meant banks needed to scrutinise every Netflix bill and Uber Eats meal their client dialled up after a hard day in the office.
It led to loans being declined for ridiculous reasons, and made credit harder to come by.
Outcry ensued and the Labour government softened the rules; and these were further modified in July last year, enabling banks to have more wriggle room when assessing discretionary spending.
The outcome of this has flowed on to investors. When asked last year if they had any difficulty getting access to finance, 43 per cent stated “yes”. This has been reduced to 33 per cent this year.
“The test rates that banks use to assess affordability have dropped very fast in recent times which has made it a lot easier for lenders to meet bank requirements,” says Pedersen.
“While I still think some parts of the criteria are unnecessarily onerous, there is overall a lot more common sense being used than what we saw a few year ago with the CCCFA debacle, which effectively shut down mortgage credit for a while.”
Our respondents are loyal to their lenders – 56 per cent have lending with just one lender, with 17 per cent having two lenders and 26 per cent using three or more.
But Kris Pedersen, this year’s survey sponsor and owner of Kris Pedersen
Mortgages, says this is not ideal
“We do not recommend it. Banks definitely make the process easy, but investors need to keep in mind that they cross-secure the loans and properties together behind the scenes and this can cause multiple issues –from making it hard to continue to grow your investment portfolio if that lender says no, to having full control if the investor ends up in a difficult position and may need to sell.
“Investors need to keep in mind that it is now common practice for lenders to put you through a full application process if you are looking to discharge a security and retain debt with a bank. What has happened a lot in recent years is investors selling down because of the higher interest rate environment only for the bank to take all of the sales proceeds because of the cross-security and the client’s inability to meet the banks current lending requirements.”
Non-bank lenders are also increasing in popularity, with nearly 60 per cent using (or considering) non-bank lenders.
“Awareness [around non-bank lenders] has grown significantly in recent years,” says Paul Bendall, CEO of First Mortgage Trust.
“This shift is part of a broader global trend toward private credit. As traditional banks continue to be inflexible in their approach to lending, particularly when transactions are complex or fall outside standard criteria, borrowers are seeking more pragmatic, solutions-focused alternatives.”
Kris Pedersen says there is optimism in the market, if you look beneath the surface.
It can be quite easy, if you just keep an eye on the mainstream media, to think that property investor appetites have not changed at all from a year ago.
Scratch beneath the surface, though, and investor lending was up 65 per cent this March in comparison to the equivalent month last year.
It’s easy to argue that the market can’t be moving as there hasn’t been much talk of prices moving up. But the supply of listings we have seen has so far this year has been greater than the demand coming from buyers – at some stage this balance will tip.
We are almost on the 12-month anniversary from when Adrian Orr incomprehensibly decided to state that “real consideration” was given to a further rate hike. Two months later the Reserve Bank saw reason and proceeded to start their rate-cutting cycle, which has seen the OCR drop from 5.5 per cent then down to the 3.5 per cent we see today. Some economists still suggest we may see further cuts down to 2.5 per cent.
As a mortgage advisory business dealing predominantly with investors, we went from basically no one wanting a preapproval a year ago, to a surge of investors contacting us to get ready to buy. This surge increased with each rate cut.
The two main parts credit plays in the property cycle are the cost of credit and how easy credit is to get.
The cost side is clearly getting cheaper we are seeing signs of credit getting easier as well.
A major bank recently announced they would do 10-year interest-only loans and we recently have had a non-bank lender introduce mortgages up to 90 per cent LVR (only a 10 per cent deposit) for existing property.
Those who have been through previous property cycles know that these changes tend to be signs of a property market recovering.
The investors we are seeing now realise that the current economic malaise means that in the short term there are still likely to be a higher-than-normal number of vendors who are forced into sale situations, which results in the ability to purchase property for under market value.
If they wait until the power balance swaps from buyers back to sellers, they will have to pay more for property than what they can buy it for today.
Trump and his tariffs will make some people stay out of the market, but there are always some people who need a reason to procrastinate and do nothing. I suspect that the vast majority of investors who made the decision to buy this year will look back and be happy that they did so.
‘When considering good landlords like myself, who treat all tenants fairly and equally, I generally have no need for the 90-day provision, but it is good to know it is there. As for the loss of interest deductibility, that was so significant it just about crippled me, and meant I was considering selling up’ SURVEY RESPONDENT
When did you last BUY an investment property?
When did you last SELL an investment property?
What do you think NZ house prices will do over the next 12 months?
‘I prefer to do my own inspections and manage my own rent payments from tenants and have contact with tenants to form relationship. We have sold two rentals to long standing tenants’ SURVEY RESPONDENT
One of the most interesting results from the survey is around intentions to increase rent.
Given landlords’ concerns about finding tenants, it is interesting to note that 57 per cent of landlords were considering increasing their rents considerably in the next 12 months. Over 50 per cent were looking at an increase of 3-5 per cent and nearly 13 per cent considering an increase of over 10 per cent.
“This is strange, given the current state of the rental market,” says Ball from NZPIF.
“It could reflect the cost pressure landlords are under, but it could also be the triumph of hope over experience. Investors in many areas are having to cut asking rents by hundreds of dollars, prospective tenants are proactively asking for lower rents, and some sitting tenants are asking for rent reductions.”
He says that there are some circumstances in which landlords could get a rent increase, for example if they are currently charging well below market rent.
If yes, by how much?
“I have seen evidence that up to half of landlords have properties that are significantly under-rented, to the point that even a 10 per cent increase would leave them well below even current market rent levels,” he says.
But he continues that there is still strong demand for in some areas and for some types of property, and in these cases rent increases may be achievable.
“Finally, a landlord may have made improvements to a property, which can support a rent increase,” he says. ■
Taupo is a popular spot for holidaymakers, being the closest city to the North Island ski fields. But the rental market is softening as investors become more realistic about asking prices, as Sally Lindsay discovers.
Smack bang in the middle of the North Island, Taupo is based around the largest freshwater lake in the southern hemisphere, which offers a variety of activities like water-skiing, sailing, and kayaking. The surrounding forests provide opportunities for hiking and mountain biking.
Roughly three million people pass through the district every year. With the new expressways, it’s an easy 3.5-hour drive from Auckland and 4.5 hours to Wellington. This means it has been set up to cope with high visitor numbers.
The resort town is one of the North Island’s most popular holiday destinations, with its modest population of 30,000 swelling to a whopping 80,000 during summer.
As a result, there are plenty of shops, amenities, and attractions for
locals and visitors to enjoy.
Not only is Taupo a great place for a holiday, it has all the infrastructure and amenities of a bigger city without the hassles of traffic and overcrowding.
With an active local community who take pride in their town, it also has a relatively low crime rate and feels safe, so it’s no surprise it’s considered a family-friendly town.
Housing in Taupō is generally more affordable compared to larger cities, making it easier for families to save and buy homes.
The median price for a house in Taupo was $770,000 in March compared with $730,000 in February and $842,000 a year ago, REINZ data shows. This is substantially less than the Auckland region where the median price is $1,040,000 and not far behind Bay of Plenty’s $782,500.
At a suburb level CoreLogic data
Regional Review Taupo
show houses in Waipahihi increased by 3.6 per cent over 12 months from April 1 last year. Homes in the suburb rose from $1,083,300 to $1,122,400. Following on were houses in Omori rising 1.5 per cent from $778,850 to $790,200 and Kuratau where home ticked up 0.9 per cent from $814,300 to $821,700.
At the other end of the market, houses in Mangakino dropped 1.6 per cent from $510,150 to $502,100 closely followed by Turangi where they fell 1.5 per cent from $461,100 to $454,100.
Harcourts Taupo business owner Mary-Louise Johns says with 700plus properties on the market there is a high level of competition among sellers chasing buyers who are taking their time in making a purchase.
“We have been averaging 700 plus properties for sale for some time and if they are presented and marketed well, they can be under contract in 14 to 21 days with multiple offers.”
In saying that, Johns says there are also a number that languish on the market because they are not presented well and are “tricky” to move.
Buyer activity has been sluggish, however.
She says that can be put down to national and global economic
uncertainties and some owners downsizing.
“The recent higher interest rates also made buyers more cautious, although they have dropped back a bit now.”
Even though banks have rolled back on some of the strict criteria introduced when the Credit Contracts and Consumer Finance Act (CCCFA) changes were made in 2021, Johns says prospective buyers are still being asked for valuations.
“It’s not that long ago when buyers were caught in the global financial crisis with properties that weren’t valued at the price they truly were. So, the banks have become more cautious.”
Investors are starting to come back into the market, with the bright-line test and tax rule changes. They still have challenges making purchases stack up financially as prices are relatively high, Johns says.
Always on the look-out for a bargain, she says there is still the odd gem on
the market. But Johns has also seen the number of mortgagee auctions rise for owners who are over-leveraged.
Subdivisions are opening up as many people who suffered during the extended Auckland Covid lockdown have realised they can work from anywhere and have moved to Taupo “in droves”, Johns says.
“Taupo developers have done well from selling their completed projects, unlike some developers in big cities who have had to put unwanted
FROM TOP LEFT Sunset over Taupo township; Tongariro National Park; Huka Falls; fun in the snow at Mt Ruapehu; kayaking on Lake Taupo; Otumuheke Spa Park; children enjoy playing on the Taupo waterfront; mountain biking in the Wairakei Forest.
properties in the rental pool.”
On the other hand, there has been an increase in mortgagee sales. Johns says those that bought at the peak of the market might be getting caught a bit, especially if they are highly leveraged.
During Covid Taupo’s house prices shot up 46 per cent. This has caused problems in owners’ perception of where the value of their homes sits now.
“It has become apparent that 46 per cent rise wasn’t a true reflection
of where the value lies. Values have slipped back about 15 per cent.”
While vendors take time to become realistic about their home’s prices, Johns can see where they became unrealistic.
“You can’t accept a 46 per cent increase overnight and then not expect a 15 per cent drop when the market falters. Vendors are still at least 30 per cent ahead of the game, which is a massive increase on any investment, but it takes time to accept this.”
Annual change in Taupo’s median price and sales volumes over five years:
Investors also seem to like Taupo. Property management company
Property Brokers saw more investors buying and putting their properties up for rent at the end of last year and it has continued.
Mortgage advisers specialising in investment property say they have seen a big uptick from investors this year, particularly as house prices have come down.
Source: REINZ
Annual change in Taupo’s sales volumes across price bands over three years:
Source: REINZ
Taupo’s top 10 suburbs for capital growth in the year ending Ferbruary 1, 2025:
Property Brokers Taupo team leader/business development manager Rikki-lee Diack says the office has a mix of investors – some owning nine properties, others just one or two.
The number of rentals on the Taupo office’s book has increased slightly, but the regional rental supply is static.
Within the region, Property Brokers manages 400 rentals and last year (on average) 77 bonds in Taupo were lodged every month. In total 2,800 bonds for the Taupo area are lodged with Tenancy Services.
On Trade Me about 40 properties were advertised for rent and there has been an 8 per cent drop in rental asking prices compared to April last year. The median asking price is $600 a week in rent.
In Taupo the number of Airbnbs turned into permanent rentals has also contributed to the listings rise. Property Brokers property management general manager David Faulkner says the slowdown in the economy makes it harder for landlords because rents are primarily dictated by what tenants earn and can afford.
The agency has one property on its books for $1,000 a week rent – a five-bedroom, five-bathroom property in a nice area – but they are far and few between.
Source: Cotality
Values vary wildly in Taupo from the high $300,000s for a small unit to $4 million plus for a lakeside home. Buyers are piling into Taupo from across the wider North Island, but recently especially from the East Coast after Cyclone Gabrielle.
“They are coming here a bit disillusioned and with their insurance payout hoping for a better life near the beautiful lake surrounded by stunning mountains.”
Properties in good school zones,
close to the CBD are proving the most popular. High-end properties with direct lake access have been unaffected by price drops.
“They are really their own market and buyers who have money to spend on lakefront property always have money to spend there.
“You are looking at a beautiful home, with water lapping at its edge. You could be anywhere in the world, but you are in the middle of the North Island in an area voted New Zealand’s most beautiful large town two years in a row.”
Four-bedroom homes are the most sought after by renters, but there aren’t many, Diack says.
Most of the agency’s stock is threebedroom homes.
Presentation has become the key to getting tenants into a rental. Diack says viewings can yield 15 groups turning up or nobody at all. “As long as the rental is nice, clean, tidy and the lawns and gardens are done, potential renters will turn up.”
Most renters are local, although last year companies with work contracts
in the region led to an influx of renters. That hasn’t happened this year.
Property Brokers offers a rental guarantee to landlords and that has impacted the company’s bottom line this year because of the vacancy rates. However, the company will keep offering it.
It means landlords must listen to presentation and rents advice from the agency.
“Landlords can’t just put on a rent they expect to get,” Faulkner says. “A small percentage will try that, and their property will sit on the market.
“The pricing must be right. We have to be honest with landlords and what we find is the more information we provide them with about the market the better the response, because the data doesn’t lie.”
Faulkner believes landlords are
A great photo opportunity on the foreshore of Lake
becoming more realistic about rents as they come off high interest rates and no longer have to deal with the pressure of interest deductibility.
“That’s going to make it easier for landlords and that will help ease the pressure on rents as well. ■
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Caleb Pearson has tips for keeping maintenance costs down in rental properties.
When it comes to rental properties, wear and tear isn’t a question of if – it’s a question of when. Every tenant leaves their mark, whether it’s chipped walls, worn and stained carpet, or kitchen water damage from not using an extractor fan.
Maintenance costs must be factored into your expenses and long-term returns. If you are renovating, it’s worthwhile considering how strategic design choices can pay off over time. By considering your design and product selections for their lifespan – rather than just their price – you can create interiors that stand up to daily tenant use, without needing a contractor back in 12 months to replace things.
But that doesn’t mean the property can’t look good. Designing for durability isn’t about putting hospitalgrade finishes throughout your house; it’s about making smarter choices that consider the whole-of-life cost, not just the initial price tag.
Here are some key areas to consider.
Floors in any house get heavy use, making durability crucial. Our goto finishes are to polish wooden floors (if possible), use laminate vinyl planks, carpet in bedrooms, and tiles in bathrooms. But it’s never a onesolution-fits-all – each property will vary.
• Carpet: While there are more durable products than carpet, none offer the same comfort. We prefer carpet in bedrooms, where traffic is lighter, choosing a quality level, colour, and texture that will show less wear over time.
• Tiles: A hard, long-lasting, and easy-to-clean surface. Ideal for wet areas or high-traffic zones like entryways, but a full house of tiles can feel clinical. Smart selection and placement help balance this.
• Laminate vinyl planks: Attractive, modern, and durable – especially good for entries, hallways, and living areas, with many products offering water and scratch resistance.
Restored wooden floors are hardwearing and durable in rentals.
• Restored wooden floors: An affordable option if the floorboards exist already. Use a hard-wearing finish and consider whether spot repairs are possible or whether resurfacing would require a full recoat.
Any rental will suffer wall damage requiring touch-ups or repairs at some point. While wear and tear are inevitable, some practical steps can help minimise unintended damage:
• Use paints with mould and bacteria protection, especially in wet areas.
• Consider semi-gloss finishes for durability in high-touch locations like doors, trims, and cabinetry. While semi-gloss has lost popularity to satin finishes, it’s more durable.
• Colours: Neutral tones mask minor marks better than stark white or bold colours. Keeping a tin of touch-up paint after each repaint can also stretch your maintenance budget further.
Bathrooms, kitchens, and laundries are always vulnerable to higher wear and potential water damage. Water and steam can reach surfaces otherwise untouched and cause gradual deterioration that tenants may not even notice.
Work with reliable products that carry warranties and use contractors who will
guarantee their workmanship. Smart considerations include overflow outlets for sinks and baths, floor wastes, wallhung vanities (to avoid moisture sitting underneath), extractor fans with timers or automatic settings, and durable splashbacks to protect walls from water damage.
Not everything in a renovation needs to be top-end, but smart investors know where spending makes a difference. Big-ticket items like kitchens, appliances, bathrooms, and flooring warrant better-quality choices. However, dozens of smaller
items – light fittings, switches, door hardware, window security latches, window coverings, landscaping – also add up. Each should pass a quick durability test: Is this the right product for my property when considering design, cost, and expected lifespan? A moment’s thought here can save headaches (and money) later.
If a material or fitting breaks, how easily can it be replaced or patched? Working with products from common lines or mainstream suppliers means it’s easier and faster to source replacements.
While we love a design statement, it must match tenant expectations and be used in moderation. For the bulk of your selections, stick to standard, readily available products that offer consistent supply lines to protect your future maintenance options. If it is a complicated design detail or custom item, it may be an expensive repair if it is broken – so simplicity in design likely means more affordable now – and in the future.
Designing for durability isn’t about cutting corners – it’s about making considered, longer-term choices. Every repair avoided and every year a finish lasts longer adds directly to your longterm returns.
The goal is simple: renovate once, rent longer, and spend less time and money on maintenance between tenants. ■
Design statements are great, but they need to match tenant expectations and be used in moderation.
Christchurch-based Sarah Marwick turned her lifelong passion for property into a full-time business – completing 10 successful flips (and counting) with her husband, thanks to smart systems, sharp instincts, and the support of the Property-CEO community.
For Sarah Marwick, property has always been more than just a side interest. She bought her first home at 23, renovating as she lived in it, then selling and stepping up each time. Inspired by shows like Location, Location, Location and Grand Designs, she knew transformation was in her blood.
“I’ve always loved reworking a layout, choosing colour schemes, and bringing tired spaces back to life,” Sarah says. “It was something I did naturally, but I never saw it as a fulltime path – until I did.”
After years running a successful training business as an instructional designer, Sarah found herself wanting more creativity and hands-on work. That’s when she decided to take the leap – launching Proper Job Properties, a nod both to her English
roots and her commitment to quality renovations.
“I wanted to build homes with heart, done properly. No shortcuts. Just a proper job.”
Since launching, Sarah and her husband have completed 10 projects and are now flipping full-time. They currently have four projects on the go and aim to complete 12-15 per year.
The turning point came after joining Property-CEO, where she gained the tools, community, and confidence to scale her side passion into a serious business.
“Property-CEO helped us learn how to analyse deals, systemise our approach, and grow a network of like-minded investors and experts,” she says. “The support has been invaluable.”
Two standout flips in Christchurch helped Sarah and her husband sharpen their approach.
The first was a character home on Birdwood Ave that most people thought should be bowled down.
“Even the neighbours were shocked when we chose to renovate,” she laughs.
But she saw the bones and potential. Purchased for just over $600,000 and renovated for around $250,000, the property sold for over $1 million and attracted over 160 interested groups through the open homes.
“It was one of our biggest renos yet – and the result was stunning. We even turned an old fireplace into a quirky built-in drinks station that buyers loved.”
The second was a more subtle play: a tenanted home on Kellys Rd listed with a small agency. At first glance, it seemed overpriced – until Sarah discovered an outstanding $104,000 EQC payout that changed the numbers dramatically.
“Once we factored that in, the deal stacked up beautifully,” she says. Even though the renovation went slightly
OPPOSITE Birdwood Ave after renovation.
TOP LEFT Birdwood Ave bathroom before and after reno.
LEFT The Kelly Rd kitchen has been transformed.
BEFORE BEFORE
‘I loved property for years – now it’s our full-time business and we’re flipping 10-plus homes a year’
over budget, they still achieved a gross margin of 30 per cent.
For Sarah, renovation isn’t just about profit – it’s about quality and affordability.
“We work hard to keep costs down without compromising finish. Our aim is to create beautiful homes that firsthome buyers can actually afford.”
She’s built a tight team of trusted tradies, uses an interior designer for each project, and has developed systems to scope projects early, improve communication, and avoid end-of-project chaos.
“Now, I’ve got checklists for everything and encourage my team to speak up early with ideas or concerns,” she says. “It’s made a big difference.”
Leaving behind her office job to
flip homes full-time has been life-changing.
“I love seeing progress on site, solving problems in real time, and knowing we’re creating value,” she says. “Plus, we now have the flexibility to build a life around our family, not the other way around.”
To support their growth, Sarah and her husband are working with private investors, offering competitive fixed returns on short-term projects. They’re also open to joint venture partnerships and share more about their approach and recent projects on their website: properjob.co.nz.
“We’re growing fast – and it’s exciting to bring others along for the ride.” ■
Explore the flipping community she’s part of at property-ceo.com
create a warmer
Warmth is more than a compliance tick-box. It’s a first impression and could be the difference between a signed lease or another week without income.
The good news? These winter-proofing upgrades can be achieved with anything from a small initial spend to a larger, targeted investment. By tackling the essentials now, you’ll give your property a competitive edge as we move into a tenants’ market and brace for the cooler winter months.
Some would agree the Healthy Homes Standards are a starting point, not the finish line. To truly create a warm and inviting rental that stands out during inspections, consider the following.
• Does it actually feel warm when people step inside?
• Is there enough natural light?
• Is it free from condensation?
• Is it absent of damp or mouldy smells?
• Does the rest of the house feel warm?
If you can’t confidently say yes to any or all of these, keep reading.
These improvements are solid, sensible ways you can increase the warmth (and appeal) of your property.
The issue: Overgrown trees, hedges and bushes can block sunlight from reaching the home. This limits passive heating, increases reliance on electric heating, and contributes to dampness and mould, especially on the south-facing side. Sunlight helps reduce energy bills, dry out moisture-prone areas and reduces the likelihood of more serious damage to exterior cladding.
Maintenance solution: Hire an arborist or gardener to trim back vegetation that shades windows or exterior walls. Focus on areas where sunlight is
visibly blocked or where moss, mildew, or condensation are recurring issues. Regular pruning also prevents leaves from building up in gutters.
The issue: Bare windows or light fabric curtains let warm air escape and cold air in, especially early in the morning and at night. This not only affects heating efficiency but can also make a home feel colder and more exposed. Thermal curtains can cut heat loss through windows, helping tenants stay warm and lowering their energy costs.
Maintenance solution: Hire a curtain specialist to measure, supply, and fit thermal-lined curtains or blinds. Prioritise full-length curtains that cover the entire window frame and add pelmets or tracks that curve back to the wall to prevent heat escaping through the top and sides.
The issue: Older homes with singleglazed windows struggle to retain heat and are prone to condensation. This leads to cold rooms with a damp environment and mouldy smells. Double-glazing boosts thermal
Use an arborist to prevent your home becoming dark and damp due to shade from trees; thermal curtains are ideal for warming up winter homes; retrofitted double glazing keeps your home warm and dry; consider carpet with thermal underlay.
performance, reduces mould risk, and adds long-term value.
Maintenance solution: Hire a glazier or retrofit window specialist to install double-glazed panes into existing frames or upgrade full window units. If the budget is tight, start with south-facing rooms or areas with frequent condensation.
The issue: Cold, hard floors (like tiles, concrete or vinyl) lose heat quickly, making bedrooms and lounges feel uninviting – especially in winter. Upgrading or adding carpet and underlay helps lock in warmth, improves insulation, and instantly lifts comfort and appeal for tenants.
Maintenance solution: Hire a flooring specialist to replace or upgrade to carpet with a thermal underlay. Polyester and polypropylene are affordable, super soft and incredibly
stain and fade resistant. Solution-dyed nylon is hard wearing, and a go-to for families with kids and pets. Prioritise bedrooms and living areas. Inquire about products that exceed R-ratings for heat retention.
The issue: A fixed heater in the main living room might tick the box for compliance, but that doesn’t mean it’s making the rest of the property warm and dry. If heating is slow or
expensive to run, tenants will notice – especially during colder months. Going the extra mile to enable heating in bedrooms and home offices can give your property a competitive edge when leasing.
Maintenance solution: Hire a licensed electrician or HVAC specialist to assess how you can either maintain, upgrade or add a heating appliance to ensure you can heat other areas of the home. Upgrading to a modern, correctly sized heat pump can improve heating performance and energy efficiency.
For some types of properties, consider pairing the heating source with a heat recovery ventilation (HRV) system. While heat pumps provide warmth, HRV systems help circulate dry, fresh air and reduce condensation – creating a warmer, drier home overall.
With tenants having more options this year, properties that feel chilly during inspections will be quickly passed over for a warmer alternative.
Builderscrack data shows that the average spend on rental heating upgrades is around $2,090 – a cost that pales in comparison to even a few weeks of vacancy.
Another proactive move is scheduling seasonal garden
‘Builderscrack data shows that the average spend on rental heating upgrades is around $2,090 – a cost that pales in comparison to even a few weeks of vacancy’
maintenance for your tenant. While they are responsible for mowing the lawn and weeding the garden, you’ll need to hire a gardener or arborist to prune large trees or hedges as it requires specialist skills and equipment.
Pair this with proactive gutter cleaning to avoid a build-up of leaves, twigs and dirt that can result in water overflow and potential damage to the home’s exterior, interior, and foundation with heavy rain.
A warm rental can be achieved by unblocking natural light, upgrading window coverings, installing double-glazing, upgrading carpet, and installing modern heating appliances in more than just the living room.
Investing in any of these improvements will help to boost the appeal of your property and lower electricity bills, making it a serious contender in a tenants’ market. ■
Following the success of earlier exterior improvements in 2024, Tommy’s returned to complete a full interior renovation of the lower flat in Khandallah.
Tommy’s Transformations reimagined this oncetired property into a sleek, modern, and highly liveable home – offering outstanding long-term value for its owner.
When we first began, the flat was functional but extremely dated. Small, dark rooms, a worn and outdated kitchen and bathroom, and inefficient heating made it feel cramped and uninviting. It was clear that if the property was to remain competitive in Wellington’s rental market, a comprehensive upgrade was needed. Thanks to a full-scale renovation
The newly built deck provides an attractive outdoor living space.
through Tommy’s Transformations, the property has undergone a remarkable rebirth.
Key features of the project included the following.
• A complete rebuild of the kitchen, featuring brand-new appliances, engineered-stone benchtops, sleek white cabinetry, and subway tile splashbacks for a clean, timeless finish
• A full bathroom renovation with a modern vanity, new shower, and contemporary fixtures throughout
• Reconfiguration of internal walls to open up the living space, improving natural light and flow between rooms
• Installation of a new heat pump and full ventilation system, ensuring the home is dry, warm, and compliant with the latest Healthy Homes Standards
• New thermal curtains fitted throughout to improve energy efficiency and comfort
• LED lighting upgrades to brighten interiors and reduce energy consumption
• A full repaint of walls, ceilings, trims, and cabinetry in fresh, neutral tones, instantly modernising the home
The transformation is clear to see. Where once the property felt dated and confined, it now offers bright, airy,
and welcoming spaces that connect seamlessly to the newly-built deck –maximising outdoor living and leafy views across the Khandallah hillside.
Importantly, this project wasn’t just about improving aesthetics – it was a smart financial decision, too.
Prior to renovation, the flat was rented at $350 a week and had been at this level for many years.
Post-renovation, the refreshed home now attracts a young professional tenant at $550 per week –representing a $200 per week increase in rent, or an approximately 57 per cent uplift.
Annual rental income before reno:
$350 × 52 weeks = $18,200
Annual rental income after reno:
$550 × 52 weeks = $28,600
Annual increase in rental income:
$28,600 − $18,200 = $10,400 additional income per year
The owner invested $120,000 into the project through Tommy’s Transformations. This results in a gross cash return of approximately 8.7 per cent per annum on the renovation investment – purely from increased rental income, without factoring in any increase in capital value.
And beyond the financials, the property now enjoys:
• a far broader tenant pool
• quicker time to rent
• increased tenant quality and retention
• improved resilience against vacancy risk
• compliance with all Healthy Homes legal requirements.
At Tommy’s, we believe that a strategic, staged approach to improvement is key to maximising the potential of any investment property.
At Delhi Crescent, we prioritised
Would you like to unlock the full potential of your investment property?
Get in touch with the team at Tommy’s Transformations — we’ll show you what’s possible when smart thinking meets expert project management. Tommysrentals.co.nz
ABOVE Both the kitchen and bathroom have been renovated; the new look-home has achieved a 57 per cent rental increase.
structural safety and access first –rebuilding the staircase and improving outdoor flow – before turning our attention to the interior.
This approach meant we could enhance both the liveability and rental appeal of the property in the smartest possible way.
Now, with the transformation complete, the property is not only Healthy Homes compliant, modern, and efficient, but also offers the kind of lifestyle and quality that today’s tenants actively seek out.
Tommy’s Transformations delivers results that aren’t just visible – they’re measurable, creating real value for property owners and better homes for tenants. ■
Property Council’s Leonie Freeman outlines a smarter path forward for growth when it comes to development contributions.
Under the Local Government Act, councils are required to implement a Development Contributions Policy to help fund growth-related infrastructure. As the cost of growth continues to climb, many councils across Aotearoa are relying more heavily on development contributions (DCs) to finance future expansion.
But while DCs can support growth, they also risk stifling it – shaping the future of our cities and towns in the process.
Introduced in 2002, DCs were designed to help councils recover infrastructure costs by charging developers upfront for projects supporting growth areas. But the link between the fees collected and the infrastructure delivered has weakened. Developers – and by extension, homebuyers – often pay for infrastructure located far from their projects or decades from delivery.
The result? An unpredictable landscape that deters investment and undermines trust in the planning system.
Some councils are using development contributions (DCs) strategically to spur growth. In Southland, DCs have been under general remission since 2015 to encourage regional development.
Hamilton City Council offered a full remission in 2023 for buildings over six storeys in the city centre to drive intensification. In Christchurch, 100 per cent DC rebates introduced in 2014 within the Four Avenues helped breathe life back into the quakedamaged CBD.
By 2020, the scheme had supported more than 1,100 new homes and rebated $13.5 million – demonstrating the impact of targeted incentives.
Contrast this with Auckland’s Drury, where a 289 per cent increase in DCs in 2023 pushed fees per home to over $100,000.
Framed as part of a long-range infrastructure plan, the hike sparked criticism over fairness and feasibility. Developers who bought land
based on earlier fees now face huge, unexpected costs – with no certainty on when infrastructure will be delivered. While the council claims it won’t affect housing prices, those costs inevitably flow through to the buyer.
The issue isn’t just how DCs are calculated. Councils are underfunded and politically constrained in raising rates, so many have no choice but to look for alternative funding measures. In this environment, DCs become a convenient but flawed fix.
The government’s proposed shift to a development levy system signals a potential turning point. While not a silver bullet, we hope it is a step towards a smarter funding model that prioritises consistency, accountability, and strategic investment.
Crucially, the introduction of an independent regulator – a recommendation of Property Council New Zealand – could bring the national oversight the system so badly needs.
A regulator would ensure that levies are applied fairly, calculated using standardised methodologies, and reinvested into infrastructure that directly supports the areas generating the fees.
Ring-fencing contributions is another vital change. Fees collected in one suburb should no longer be used
to fund infrastructure elsewhere. This change aims to restore trust in the system by ensuring contributions are fairly invested in the communities that generate them.
Let’s be clear: a new system won’t necessarily make development cheaper – but it will offer greater predictability. For developers, certainty is as important as price. Advance notice of levy increases, phased rollouts, and alignment with national priorities would help create a more stable, investment-ready environment.
In time, higher infrastructure costs could be absorbed through lower land values – but only if the system is applied consistently and transparently across the country.
With the local Government (Infrastructure Funding) Bill expected later this year, now is the time to pause and reset. Councils should align their policies with national reform – not push ahead with inconsistent, piecemeal policies.
We need a system that delivers certainty, consistency, and transparency. One where levies fund the communities they come from, and where both councils and developers can plan with confidence.
New Zealand has an opportunity to get growth right. Let’s not waste it. ■
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New builds can be useful for investors, but it’s important to look below the surface of that gloss before you decide to buy, writes registered property developer Eve Prouse .
In today’s property market, shaped by tighter lending, rising interest rates, and greater tenant expectations, new builds are becoming an increasingly attractive option for Kiwi investors.
Offering convenience, compliance, and modern appeal, they tick a lot of boxes … but they also come with their share of drawbacks.
The appeal of new builds is rooted in their simplicity and modernity. You’re unlikely to be hit with any major maintenance costs early on, and most come with a 10-year master build guarantee. For investors wanting
a “set and forget” property, that’s a real advantage.
One of the major benefits of buying a new build is that it’s ready to rent straight away. These properties are typically constructed to meet Healthy Homes Standards, saving landlords significant costs in retrofitting older homes.
They’re attractive to tenants because they’re warm, dry, and wellinsulated. Features like double glazing and heat pumps are standard in most developments now.
New builds also tend to attract longer-term, higher-quality tenants, thanks to their comfort and presentation. With no need for immediate repairs or upgrades, landlords can avoid costly upfront expenses like new carpets or insulation. Financing is often more accessible too. Current lending rules may allow investors to purchase new builds with a deposit as low as 10 per cent, providing an entry point for buyers with limited capital. And when located in larger subdivisions or masterplanned communities, properties may benefit from gradual value uplift as
infrastructure like parks, schools, and retail precincts is developed.
There’s also a psychological appeal to tenants and buyers. People like being the first to live in a home – it feels fresh and clean, which helps with rentability.
While new builds offer simplicity, they don’t guarantee high returns –especially in the short term. One of the most common misconceptions is the expectation of quick capital growth.
There’s not a lot you can do to add value to a new build. With older homes, you might renovate or extend and see an immediate increase in value. With new builds, you’re fully reliant on the market, and that growth can be slow.
This lack of potential for
‘While new builds offer simplicity, they don’t guarantee high returns – especially in the short term’
manufactured equity can make new builds less appealing to investors focused on active wealth building.
The uniformity of large-scale developments also creates a competitive challenge when it comes time to rent and sell, as many homes have identical layouts, finishes, and features.
You can end up competing with half a dozen properties just like yours. That limits your ability to stand out or command a premium.
You may have paid a premium when you purchased the property brand new, which is not uncommon: this can take time to recover from and hurt your wallet.
Space can also be a drawback. Many new builds are designed to maximise density, which often means smaller floorplans, compact sections, and limited storage.
Garages are increasingly rare, and off-street parking may be minimal – or absent altogether.
For families or tenants with more than one car, that can be a dealbreaker. And it’s something that can affect resale down the line.
Another often-overlooked factor is the presence of hidden costs. While show homes appear turnkey, the base price may not include essentials like window coverings, extra heating or cooling, and landscaping.
Window treatments alone can cost thousands. You might think you’re getting a finished product, but there’s often still things to do before the property is fully tenant-ready.
Perhaps the most pressing concern for today’s investors is cash flow. With mortgage rates high and yields under pressure, some new builds are generating less rent than is needed to cover loan repayments.
A lot of investors are finding themselves having to top up the mortgage. That might be manageable on one property, or if it is a small amount, but if you’re holding several, properties or interest rates rise, it quickly becomes unsustainable.
New builds can be a smart move for investors seeking low-maintenance, compliant properties that are attractive to tenants. But they aren’t without risk. From limited value-add potential and uniformity issues, to hidden costs and possible negative cashflow, it’s essential to go into a purchase with full awareness of the financial realities.
They have their place in a smart portfolio. But investors need to be realistic. Do your sums, understand the ongoing costs, and don’t assume a new build means guaranteed capital gains or cashflow.
As with any property purchase, due diligence is key. For those considering a new build, consulting a local property valuer can offer insight into the realworld performance of similar homes –beyond what the brochure promises. ■
For more of Eve’s expert tips you can follow her at @eveprousepropertyvaluations or her website eveprouse.co.nz .
Investing when no-one else is can be a power move, as Debbie Roberts explains.
When markets are booming, it’s easy to feel confident. Prices surge, competition is fierce, and optimism is everywhere, right alongside FOMO.
But with property investing, the greatest opportunities often appear when buyer sentiment is low – not when it’s high.
Countercyclical investing is the strategy of buying residential property during market downturns, and has proven time and again to be
a powerful way to build long-term wealth. In New Zealand right now, it’s a power move you don’t want to sleep on. In quieter markets like this, buyers have the time and space to act strategically rather than emotionally.
In times of uncertainty, buyers and sellers get nervous. Prices stagnate or fall. Competition from other buyers is low. Suddenly, the homes you couldn’t touch a few years ago are within reach, and you call the shots at the
negotiation table. It’s called a “buyer’s market” for a reason. In short: when fear is high, opportunity is higher.
Buying when prices are stable or falling means you can negotiate better deals, resulting in a smaller mortgage and higher rental returns. Countercyclical investing isn’t just about buying cheaper, it’s about achieving better financial performance from the start. Lower property prices naturally improve rental yields.
Market volatility, media commentary, interest-rate uncertainty – it’s all noise over the long run.
Buying when others aren’t,
turbocharges your growth when the cycle turns.
Investing during a slump accelerates the compounding effect of property wealth. By entering at a low point in the cycle, investors amplify their gains as the market inevitably recovers.
After every downturn, there is always a recovery, followed by another boom. It’s called the property cycle. The best part is you don’t even have to time the market perfectly!
As long as you are buying a
property that suits your financial position and long-term goals, (because property investing is a longterm strategy after all), you will reap the rewards.
Investors that hesitate in the current market, will undoubtedly look back with regret in a few short years from now. Investors who maintain a clear, fact-based perspective –focusing on fundamentals like location, yield, and growth drivers – are the ones who seize the opportunities that fear creates.
‘If you want to build serious wealth, don’t follow the crowd. Buy when others hesitate’
Interest rates are already below the long-term average and are expected to continue to fall over the next few months. Bank lending criteria has relaxed significantly, meaning it’s easier to get a mortgage now than it has been for years.
We currently have a very balanced market in most parts of New Zealand. More buyers have started entering the market, but we have also seen a large increase in listings. With the number of people still worried about their job security (since the economy is not showing strong signs of growth yet) my thoughts are that this buyer’s market might be here for several more months. If you want to build serious wealth, don’t follow the crowd. Buy when others hesitate.
Countercyclical investing requires confidence, and a long-term vision –but for those who are prepared, the rewards can be significant. In today’s softer market, opportunities are not just available; they are abundant.
The question is whether you’re ready to move when others hold back. The next boom will come – and those who move first can win big. The best opportunities are currently hiding in plain sight, right now. Your future self will thank you. ■
If you want to learn more about the current property market and how to become a successful property investor (without anyone trying to sell you a property), join me at one of our upcoming FREE online events. Register at propertyapprentice.co.nz
Property Apprentice is the market leader in property investment advice. It is run by experienced coaches and financial advisers to give you the best support possible, to help you realise your goal of financial freedom. Visit propertyapprentice.co.nz, email info@propertyapprentice.co.nz or call 09 575 7736.
Simon O’Connor from Sentinel Planning in the second of a two-part piece on the red-zoning by Watercare of development land in Auckland.
One of the issues developers have been contending with is the time it takes to get a response from Watercare and the lack of detailed reasons (or online tools for self-assessment) that offer clarity around whether they can develop their sites.
Watercare’s online tool states an answer will be given in 10 working days, but most responses have been 20 working days, and in some cases, 60 working days.
The 60-day example started off as a 40-day response from Watercare that said the transmission network had capacity (beyond the pump station) but that the local network may not. In this instance, the local network was some 2km in total distance.
After another 20 working days, Watercare confirmed that the local network had capacity after all.
Developers are generally unable to participate in auctions due to the risk of water unavailability, and will seek long diligence periods for any deal to go through. Homeowners with potential development sites who are looking to sell are consequently receiving fewer and lower offers.
To address this, Sentinel recommends that sellers undertake both a planning and civil engineering feasibility report before going on the market. This way, they can provide as much certainty as possible.
This situation is not going to improve without mayoral or governmental intervention. Unfortunately, Watercare seems to have an infallibility complex in this regard.
The Watercare solutions have such long lead-in times that, in effect, large parts of the city will be undevelopable for decades.
This undermines the integrity and direction led by the Auckland Unitary Plan, it undermines all Auckland Council’s capacity testing, and it undermines the central government’s going-for-growth ambitions.
There is an easy solution that will address the immediate concerns of developers and one that has been historically accepted by Watercare in times of previous short-term moratoriums. Watercare has explicitly stated that onsite pumping during off-peak periods will not be accepted. The only reason given for this is the
concern about breakages. This is a very odd approach given that pumping is currently allowed on sites where the wastewater line is not gravity-fed and if a pump breaks, it is in the landowner or occupier’s interest to repair it as soon as possible for obvious odourrelated reasons.
It also seems that Watercare is trying to ration supply of new connections to developers. I have clients who have been informed that they can’t have eight connections, but they can have five, citing overflow at the local pump station as the reason.
Then a few weeks later, they approve another development in the same street for additional connections.
You are either at capacity or you are not. I cannot understand Watercare’s actions here. In New Zealand, it’s a first in, first served system for resource allocation: not the communist rationing system that Watercare appears to be using currently.
The Watercare vs Pak n Save case is an interesting one, given that it revolved around adequate fire sprinkler protection. Such matters are more important than the occasional overflow event. It does seem that corporates are able to get more favourable responses from Watercare once the media is involved. Yet the detail of the outcome remains a secret.
To me, the situation appears to stem from Watercare having a spending and budgeting problem. In part, they have failed to allocate the growth charges that they have collected via developments back into those local areas.
The cost of Watercare’s central interceptor has increased from $1.2 billion to $1.56 billion. In the New Zealand Herald, December 12, 2023, Watercare stated that the “additional funding will come from within Watercare resources and not Auckland Council and will allow us to complete the project as planned at the end of 2026”.
That cost is now $1.6 billion and Watercare’s website says that “the budget for this epic seven-year
project is $1.668 billion”.
On face value, it could be perceived that $400 million of additional funds from Watercare’s resources (infrastructure growth charges) had been reallocated from local projects to the central interceptor, or that the central interceptor has taken the lion’s share of the circa $300 million that it receives in infrastructure growth charges annually, which are required to be spent on network capacity-related maintenance and upgrades.
In a February announcement by Watercare, around how they support growth in Auckland with regard to Otara, reference was made to six projects in the local area with a timeframe of 2028-2040.
Projects two and three – namely the Otara catchment wastewater capacity upgrade and the Otara pump station upgrade, which capture approximately two-thirds of the Otara “red zone” –should be completed by 2036 at a combined cost of $90 million.
But the same project was detailed in a November 2022 memo (later presented in the February 2023 Wastewater Network Strategy to the Otara Papatoetoe Local Board) priced at $57 million, being the equivalent of circa 3,000 growth charges.
In 2022 this project was classified as a high priority as over the previous sixyear period there were 171 overflows in the Upper Tamaki River. Heavy rain was cited as the cause in two-thirds of the cases. There were 53 heavy rain pump station overflows in 2017 alone.
Yet here we are, eight years on, and the only action Watercare has undertaken is to “red-zone” the local area and prevent further development.
One does have to question if they are overstating their current concerns based on their historical efforts. Equally, the question as to why these works were not completed many years ago goes unanswered.
How are these capacity improvements going to be paid for when Watercare has prevented local development? This issue is exacerbated with the recent “water
Sentinel Planning is a specialist planning consultancy with a team of experts with deep knowledge, skills, and extensive experience. We deliver exceptional quality and cost-effective solutions, maximising your project’s potential and success through comprehensive understanding of the development process. sentinelplanning.co.nz
done well” legislation detailing that local contributions collected must be spent on local projects.
Another reason that I don’t believe the situation will improve is that Watercare has not been able to prepare satisfactory detailed applications for their own projects to Auckland Council.
Watercare’s current resource consent application to discharge wastewater from the continued (and expanded) operation of the Beachland’s wastewater treatment plant has now been put on hold by Watercare as the applicant.
The reason is that the reporting planner had recommended refusal of Watercare’s notified consent based on the expert advice of both the council’s consultant and in-house freshwater ecologists who stated that the “existing discharge is resulting in adverse effects in respect of water quality and freshwater ecology”.
That is before Watercare’s proposal to increase the volume of discharge, “which proposed a notable increase in discharge volume and associated contamination again with no, or minimal, improvement in respect of treatment”.
How can they even get their own applications for their upgrades so wrong yet expect the development community to wear the results of their actions.
I would implore mayor Wayne Brown and his team to undertake a thorough review of Watercare’s activities and practices. His team took aim at Auckland Transport and their affairs, backed with strong community support, and I suspect the same needs to be undertaken here.
The failures of Watercare as a council-controlled organisation, which we now face as developers, should never have occurred. The council now has the opportunity to fix Watercare’s mistakes and their lack of transparency. Watercare, you had one job to do, and you simply didn’t do it at all. ■
Sarina Gibbon investigates why good landlords are quietly leaving the market.
I’ve spoken at a few tenant events recently and, honestly, I’m pretty bummed out.
The stories I heard weren’t shocking so much as they were quietly troubling – tenants pressured into accepting unenforceable clauses, afraid to assert their rights for fear of rent increases or, worse still, losing their homes.
Bearing in mind, these tenants were the “privileged ones”. That alone is sobering. Because if this is what’s happening to them, imagine what’s happening to those who can’t turn up, don’t know their rights, or feel like they have no voice at all.
And while we often talk about these issues from the tenant side (and rightly so), what’s less acknowledged is how the same system is also alienating good landlords – those who
want to do right but are increasingly wondering if it’s worth the cost.
Take the Healthy Homes Standards. In principle, they’re a good thing. Everyone deserves a warm, dry, safe place to live. But the way we got here matters. These standards weren’t introduced because landlords collectively decided to raise the bar. They came about because too many didn’t – while the rest of us stayed silent.
If, as an industry, we had set better expectations for ourselves – called out slumlords, normalised warm housing, and refused to make excuses – then maybe the government wouldn’t have felt the need to be so heavy-handed. But that didn’t happen, so politics
stepped in to fill the vacuum.
And now, many landlords are contending with standards that, while well-meaning, are often too blunt. The rules apply uniformly to properties of vastly different ages, layouts, and quirks, with little room to account for practical differences. The outcome? Well-intentioned landlords spend significant sums complying with rules that don’t necessarily make a material difference to performance –and tenants don’t always end up with homes that actually feel warm, dry, or liveable.
Meanwhile, market rents continue climbing – and the sense of fairness continues slipping.
This is the part that wears down
landlords who are trying to do right. The ones who install heat pumps, double-glazed windows, and front-foot maintenance. The ones who care about their tenants and their homes. They don’t mind rules. But they do mind being treated like part of the problem. Because right now, the system doesn’t distinguish between those who cut corners and those who go the extra mile. Everyone gets the same scrutiny. Everyone carries the same burden. And over time, that breeds resentment and disillusionment. How many times have you quietly said to yourself, “I’m sick and tired of being called the bad guy”?
At the same time, a different kind of landlord is adapting to the system
in more calculated ways. More and more landlords are telling me – often with disturbing casualness – that it’s cheaper to risk the occasional fine than fully comply. Some rent exclusively to students – not because they’re better tenants, but because they’re less likely to kick up a stink.
Don’t get me wrong. I’m not trying to be holier-than-thou. I get that these behaviours are less about malice and more about realism. It’s a rational response to a system that feels difficult to navigate. Enforcement is inconsistent. Disputes drag on. Tribunal decisions vary widely. When landlords start treating compliance as a costbenefit exercise instead of a shared standard, we all lose. The law becomes a checklist, not a compass.
But the bigger risk isn’t those who game the rules – it’s those who walk away from the game altogether. The landlords we want in the market. The ones with good properties, fair instincts, and a long-term view. They’re quietly disengaging. Selling up. Switching to commercial. Opting out of a sector that feels increasingly adversarial and thankless.
And when they go, they take with them the very thing this rental market needs most: consistency, decency, and care.
This is the compliance cliff. Not a dramatic collapse, but a slow crumble of confidence and goodwill. It’s the feeling that effort isn’t recognised. That doing it right won’t shield you from being treated like you’re doing it wrong.
It’s also worth saying this: the largest advocacy voice for landlords in New Zealand – the NZ Property Investors Federation and its network of affiliated property investors associations – is supported by less than 1 per cent of landlords nationwide.
Think about that. The landlords who are doing the right thing, who seek advice, education, and peer standards – are already plugged into
these networks. The rest? They’re out there operating by their own rules, disengaged from any sense of shared culture or accountability.
That’s a big part of the problem. When the loudest voices represent the smallest group, policy gets made in a vacuum – and those left out of the conversation keep behaving badly, unchecked.
It doesn’t have to be this way. But it does require a cultural shift – not just more rules.
Rules can’t carry the weight of trust. That’s our job. As landlords, we need to stop tolerating the lowest common denominator in our ranks. We need to talk to each other like friends do –openly, honestly, and with care. And yes, sometimes that means calling each other out.
Stop laughing off stories of “tenants who don’t know their rights”. When you choose to stay silent, you become complicit. If we don’t set the tone, someone else will—and they rarely use a scalpel. Think sledgehammer: Wam. Bam. Thank you ma’am.
Good. You matter most.
If you’re still in the game – still showing up, still doing your best –thank you. You’re exactly who this sector needs.
But this is also your moment to lead. To say “We can do better – and we want to”. Not because the law says so, but because the culture we build matters more.
The future of renting in New Zealand shouldn’t belong to the ones who get away with it. It should belong to the ones who show up, speak up, and set a better standard. Let’s not just avoid the cliff. Let’s build something stronger on the other side. ■
Sarina Gibbon is an independent tenancy advisor with clients ranging from the Auckland Property Investors Association, Renti and several property management companies.
Does the phrase ‘plus GST if any’ fill you with fear? Should it? Mark Withers investigates.
Do the words ‘plus GST, if any’ immediately cause you anxiety when considering a property purchase?
For many they do. Long-term residential investors who have only involved themselves in investments with long-term tenants (where only GST-exempt supplies are made) will not be GST registered and these words may cause them anxiety.
In circumstances where a vendor is GST registered (for all or part of the supply of a property) a greater level of understanding of GST is needed.
Thankfully, the first question on the standard form sale and purchase agreement asks the vendor whether they are GST registered with respect to
the transaction. If they are, all parties are directed to complete the schedule one GST information section at the rear of the agreement.
This schedule one section gathers answers to questions on whether GST will be charged on all or part of the supply and determines whether the criteria for zero rating of the supply are met.
Also of critical importance is the “payment of purchase price“ section of the agreement where the parties are invited to negotiate on a plus-GST ( if any) basis or an inclusive-of-GST basis.
A GST registered vendor will generally want to negotiate on a plus GST if any basis. This ensures that the default position is that if a GST liability
exists with respect to the supply, this GST is added to the purchase price.
This then covers a situation where a GST-registered buyer purchases the property and provides the warranties needed to meet the zero-rating criteria, as opposed to a non-GSTregistered person buying the property, requiring the vendor to add the GST payable of 15 per cent.
An unregistered person will often feel more comfortable negotiating on an inclusive-of-GST basis as there is no opportunity then for the vendor to add the addition of GST to the contract price.
Fundamentally, the key to success is both parties having a clear understanding of each other’s GST
position before negotiating price, as any misunderstanding at this stage can create a 15 per cent difference in the expected outcome.
Zero rating was introduced to reduce the chances of the government having to pay a GST claim to a registered purchaser in a situation where they had failed to collect it from a registered vendor, something that happened all too often in the global financial crisis.
If both parties to a land transaction are GST registered and the purchaser provides a warranty that they will be using the property in a taxable activity (and that the property will not be their principal place of residence) then the transaction is compulsorily zero rated, meaning the vendor has no GST to pay
‘Fundamentally, the key to success is both parties having a clear understanding of each other’s GST position before negotiating price’
and the purchaser has nothing to claim.
Most transactions involving commercial property and farms therefore happen on this zero-rated basis. However, property traders and developers are often GST registered and so too are people that have used property for shortterm accommodation on Airbnb. In these situations, there may be a GST registered vendor selling to a nonregistered buyer requiring care and clarity by both parties around what basis GST is to be treated.
Adding to the confusion is the issue of split supplies. A split supply can occur when a dwelling that is exempt from GST is sold as part of a property that is a taxable supply by the vendor.
For example, a vendor may own a block of shops for which he is GST registered, but above the shops are some residential flats that are exempt from GST.
Again, in this situation the schedule one GST section of the agreement is critical. It asks the question whether any part of the property being sold is a principal place of residence and then requires a confirmation of whether this is a taxable supply that will be subject to GST … or an exempt supply that will not be.
Note, the question is not asking whether the dwelling was the vendor’s principal residence, it is asking whether it is anybody’s principal place of residence.
Generally, a split supply like this where there is a difference in GST
positions will require the price to be apportioned between the taxable and exempt portions.
This apportionment should not be confused with the purchase price apportionment rules that are instead focused on the split of commercial property for depreciation purposes, typically between the land, the building and the building fitout.
The schedule-one GST section is actually divided into three parts. Part one deals with the vendor’s position, part two deals with the purchaser, and part three deals with the nominee, as often the purchaser will have nominated an alternative party to complete the transaction, so it is necessary to pose questions that apply to the nominee if the party named as purchaser is not going to be the party completing the transaction.
Navigating the complexities of GST and the requirements for registration and the quirks of different types of supplies can be daunting; taxpayers should always seek professional advice when constructing contracts that involve GST, especially where the vendor is GST registered and is seeking to charge GST on some or all the supply of the property.
Always remember that if the vendor will be registered as part of the transaction the schedule-one GST information page must be completed by all parties, if you are not sure of the correct answers, stop, check, and get the facts straight before proceeding.
Getting the facts straight, and understanding the consequences of them, will take the fear away. ■
Real investors, real salaries, real problems… real success stories.
At almost 39, a high school teacher and single mum decided it was time to take charge of her financial future. Originally from Christchurch but now living in Wellington, Becky made the bold move into property investment – a decision she says has changed her life.
It all began in a rather unusual way: sitting on the couch, reading investment books aloud with a friend.
“But it was doing that that really changed things for me,” she says.
Here’s how Becky turned a few quiet reading sessions into a serious step toward long-term financial security.
sparked
Becky’s first steps into property weren’t taken alone. She credits a fellow teacher, who had emigrated from Fiji, for lighting the fire.
“She came to New Zealand determined to do better for herself. She made me read investment books with her,” says Becky.
“We read an Australian women’s book about financial freedom, and then I stumbled across the Property Academy podcast.”
Becky started listening in her car every day for about six months.
“That was enough to teach me a lot about the basics. I’d already bought my own home solo about eight years ago. So yeah – this is where I am today.”
Becky used the no cash needed method. That means she borrowed her deposit against her home and borrowed the rest against the investment property, using 100 per cent lending.
“I’m a person of action, and I have a lot of self-belief. Even if I can’t do something, I still think I can,” she says. Her attitude is “if you believe you can do it, you will. And if you don’t think you can, you probably won’t”.
But the reality of investing hasn’t been an easy ride. Eighteen months ago, Becky bought a two-bedroom, new build townhouse in Christchurch. She found a tenant quickly – but the real challenge came with the numbers.
She originally estimated she’d need to top up around $300 a week to cover rates, insurance, property management fees, and mortgage top-ups.
But it ended up closer to $370 a week – plus her own $500 weekly mortgage in Wellington. Becky drained her savings, cut back on luxuries, and tightened her belt.
“I love traveling and being independent. I haven’t really been able to do that for the last year and a bit. But it’s been worth it,” she says.
Despite the financial pressure, Becky didn’t want to slow down her mortgage repayments. Instead, she found creative ways to make ends meet. She:
Disclaimer: Just remember this is a column in a magazine, going out to thousands of people. It’s not personal financial advice. But, it is an example of what can be achieved with personalised financial advice. If you are wanting to book a consultation, email us through the website at https://www.opespartners.co.nz/contact
• paused her KiwiSaver contributions for a year
• took in a flatmate
• picked up extra management units at school, boosting her income by around $10,000 a year
• switched to a cheaper gym and free community fitness classes.
“I could’ve made life easier for myself, but that’s not me. These little sacrifices are what you’ve got to make,” she says.
“I just wanted to grind through, get through, and make it easier for myself this coming year.”
Even during the toughest times, Becky refused to compromise on two things: eating good food and staying active and healthy
“I’m not going to live off canned food and straight carbs,” she says firmly.
“I want to feed my son well, because if he’s eating properly, he’ll cope better with our busy life.”
Becky believes that knowing what you won’t sacrifice makes the other cutbacks far more sustainable.
“If you protect the things that matter, it’s easier to make the hard choices elsewhere.”
Becky’s advice is clear: “Make sure you’re well in yourself. Take time to look after yourself. Property should support your life – not become your life.”
Although the last 18 months have been a grind, Becky has no regrets.
“This hasn’t kept me up at night. I’m happy with my decision to get into property and stay in there,” she said.
With interest rates easing and her cashflow improving, Becky is looking forward to rebuilding her financial buffer – and finally ticking off a big goal: overseas travel. In 2026, she’s planning a trip to Albania.
“I just want to have some money in the back pocket so I can enjoy life again without stressing about every dollar,” she says. “These are short-term sacrifices for long-term freedom.” ■
Shadi Salehpour shares a true story about the value property managers can offer landlords.
Do I really need a property manager? For many, the answer isn’t obvious – until things go wrong.
Recently, a friend of mine –successful, independent, and the type to invite you to lunch midweek between beauty appointments – rang my work number in tears.
She’s a self-managing landlord with time on her hands and a couple of rentals under her belt. She had always handled things herself just fine. But not this time.
Through the smudged screen of my iPhone, I could see her eyes welling up.
“They’ve trashed my house,” she cried. “And I’m meant to be on a flight in a few days.”
What followed was a video walkthrough of the property: smashed floorboards, sofa with a missing seat, a large tv hanging off the wall, and as she walked through the rest of the house,
she complained about an unbearable dog smell, rubbish left behind, a broken gate, and lawns gone wild.
Just a few days ago, she called asking what to do with the granted Tenancy Tribunal order to end the tenancy due to unpaid rent. Fortunately, the tenants had left on receiving it, but unfortunately, they didn’t leave the property in a clean and tidy manner as per their tenant obligations.
What do I do? Her voice screamed panic, and now her high cheeks glistened with tears.
At that moment, she wasn’t a landlord with time and resources – she was a person overwhelmed, facing a problem she didn’t know how to fix. Despite our years of friendship, in that moment, she finally saw my worth as a property manager – especially because she couldn’t get hold of anyone at Tenancy Services.
“You should’ve got a property manager!” I wanted to tell her.
Not me – North Shore is too far –but someone
Still, now was not the time for an “I told you so” and I put my pride aside – I will wait for when she invites me to one of those midweek lunches, that is if I am free (like her).
We started with the basics: document everything with photos, use note app on your phone to make a list of all defects and cleaning. And of course, there was no routine or pre-tenancy inspection, according to my friend the tenant was fine so she did not deem these necessary and didn’t bother with them.
Gentleman’s handshake (or in this case lady’s handshake).
Next I told her to identify what items were perishable or valuable, what needed to be stored, and what could be legally discarded.
Under Section 62 of the Residential Tenancies Act, landlords must follow a careful process when dealing with goods left behind. The tenant was also
clearly in breach of Section 40(1)(e) (iii), which requires tenants to leave the premises reasonably clean and tidy and remove all rubbish.
She then needed a team –gardeners, floor specialists, cleaners, carpet care, basic handymen jobs. But she had no one to call.
This is where property managers often make a quiet but significant difference.
Property managers have access to trusted tradespeople and, because of the number of properties we manage, we’re able to secure fair and competitive pricing.
We also rely on property management software that provides detailed inspection reports, rent
‘So you don’t need a property manager for when things are right. You need one to make sure you are in a strong position for when things go wrong’
ledgers, photo logs, and time-stamped records. These aren’t luxuries – they’re essential tools that support us when dealing with damage, disputes, or Tenancy Tribunal proceedings.
And here’s something many landlords overlook: winning a case at Tribunal doesn’t start at the end – it starts at the very beginning.
It starts with the paperwork, the entry condition report, the signed tenancy agreement, the routine inspections documenting smells, damages, tenant education, the rent monitoring, the maintenance logs.
These form the foundation of any tenancy – and are often what determines how it ends. As a private landlord my friend started off well, with good intentions and a handshake, but things don’t always go that way.
As property managers we don’t do handshakes, records need to be kept, evidence needs to be solid.
Most of the time, the quality of the outcome at the end of a tenancy reflects the quality of the process. When these processes are missing or incomplete, even the most organised self-managing landlord can find themselves overwhelmed and exposed.
What happened to my friend isn’t unusual. As property managers, we see it more often than people might realise – it has even happened to me!
The cause isn’t always intentional tenant behaviour. Sometimes it’s personal hardship, mental health struggles, financial stress, family violence, illness, or unexpected life events that change everything overnight. Not long ago, I found
myself at a property trying to explain to my client how a smooth 2.5-year tenancy had suddenly turned into complete chaos.
There was rubbish left behind, damages, missing smoke alarms, and even personal items like birth certificates and medicine still in the fridge with the children’s names on them. No effort had been made to clean up.
Within days, we had the property back to normal.
Despite everything, I stayed in communication with the tenant. She didn’t explain what had happened, but she apologised and signed over the bond – which wasn’t enough to cover the costs. We had to go to court, and today the debt is being paid off at $30 a week. Good, experienced property managers know the importance of acting within timeframes, dealing with tenants professionally and keeping the right distance – not blurring the lines between landlord and tenant.
One important thing to remember is that property managers don’t prevent these events. What they do is document, the rule is remember nothing but document everything and when s**t hits the fan, manage the aftermath because you set up to be prepared for the worst.
They don’t step in; they are already there when things go wrong and work to minimise loss, restore order, and move forward quickly and professionally.
So you don’t need a property manager for when things are right. You need one to make sure you are in a strong position for when things go wrong. Like they say, a decent one is worth their weight in gold! ■
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Nichole Lewis , author of No Money Deals , shares her tips for buying property.
For many young people, entering the property market feels like a distant dream. The challenges are undeniable – rising house prices, soaring living costs and stricter lending criteria make it increasingly difficult to save your deposit. These barriers often force people to rent or live at home for longer periods, delaying their chance to purchase their first home.
But is buying your first property really as unattainable as it seems? Or is it time to reevaluate the advice we pass on and reshape the narrative?
For generations, young buyers have been encouraged to start their property journey with the family home. But is this always the best starting point?
My international best-selling book Property Quadrants, inspired by Robert Kiyosaki’s Cash Flow Quadrants, challenges this conventional wisdom. While it outlines the family home (Quadrant One) as a foundational step, it also suggests alternative entry points into property. One alternative lies in Quadrant Four’s focus on cash-flow positive
investment properties. Instead of buying in a prime city location with a significant price tag, buyers could consider purchasing a more affordable property outside major urban centres that comes with multiple income streams, making them self-sustaining or even profitable. Current schemes like KiwiSaver limit its use to owner-occupied homes, expanding the rules to support investment properties could empower more first-home buyers to get started. If property itself can generate income, why not use property to pave the road toward owning your dream home?
One challenge aspiring property buyers face is the lengthy process of saving the deposit. But what if traditional methods of saving aren’t the only solution?
Book two in the Property Quadrants series, No Money Deals, sheds light on strategies that allow individuals to get started in property with little to no upfront capital.
No Money Deals introduces a variety of strategies, such as:
• property finding – locating undervalued or off-market properties for other buyers and earning a fee
• contemporaneous settlements
– on-selling a property without requiring upfront funds
• vendor ventures and joint ventures
– partnering with property owners or investors to share resources and returns
• long settlements with access –gaining access to properties to add value before settlement
• money partners – collaborating with financial backers who fund projects in exchange for a share of profits.
These methods not only lower the barriers to entry, but also allow beginners to gain valuable experience, and experienced investors to continue to grow their portfolio.
No Money Deals explains real-life examples, for instance, how Jesse bought his first property with only $34,000.
John, after overspending, used property deals to replenish $20,000 and get back on track.
Another story turned a multi-unit, multi-title property into a $134,000 profit with an initial spend of just $575. These success stories demonstrate that property is not just about acquiring a home but leveraging opportunities to create financial freedom.
A key takeaway from experienced investors is the importance of starting small and building steadily. Sir Bob
Jones, one of New Zealand’s bestknown property moguls, began his career by taking modest steps in the market. His advice was:
• seek guidance – surround yourself with experienced mentors and learn from those who’ve walked the path before you.
• start small – celebrate your wins. Each deal provides valuable lessons.
• balance buying and selling – to build a sustainable portfolio, sell some properties while holding onto others to generate cash flow.
These strategies are echoed by many successful investors. Whether buying your first home or growing your portfolio in excess of 100 properties, the principles remain the same. Patience, persistence, and purpose will guide you toward sustainable growth.
Many first-time buyers are held back by fear. They worry about making the wrong decisions or losing money.
A golden rule to mitigate risk and build confidence is: it’s better to have wished you’d bought and didn’t than to have bought and wished you hadn’t.
A cautious-yet-optimistic approach highlights the importance of due diligence and taking calculated risks. By starting with no-money deals, aspiring investors can dip their toes into the market without exposing themselves to significant financial risk. For example, on-selling a deal to an investor for $10,000 might seem modest, but it’s a meaningful step toward building momentum.
Property is not a sprint but a marathon. It’s about starting small, learning continuously, and expanding your network of experts. You might begin with a modest profit, but as you gain experience and build relationships, your opportunities will grow exponentially.
No Money Deals is designed to help you move past the hurdles and into a property you may have thought was out of reach. By leveraging creative strategies, tapping into expert advice, and taking action you can create your roadmap to success. One thing is certain: if you are determined and take action, the possibilities in property are limitless. ■
If you want to talk property, I’m just a call away. Together, we can help you unlock your potential in property. For more information visit thepropertylifestyle.com
Peter Ambrose discusses how the New Zealand Property Investors Federation is working with investors to ensure they continue to have a place at the decision-making table.
The only thing that stays constant in our chosen industry is change. In the last few years, I’ve seen more changes impacting investors, landlords and tenants than the previous 20. This means that we must adapt to keep relevant and viable in the face of fast-moving political and environmental influences.
This applies to NZPIF as well. Over the last nine months we have set a new strategic direction with a focus on being relevant in this environment and driving change to support, educate
and advocate for the industry. Our three key focus areas are advocacy, associations and federation membership.
As the property investors’ national federation, we are being more proactive in supporting the industry inside parliament and ensuring investors have a voice in all things property related. To that end, we have employed an advocacy and PR manager, and I know you are now hearing regularly from Matt
Ball. Through Matt’s contacts, we are now meeting regularly with all major political parties and living in Wellington has made it easy for me to regularly get into the Beehive. This is already making a difference, and our key focus now is to represent the industry and influence policies leading up to the 2026 elections.
We encourage all property investors and those thinking about buying their first investment to join their local
RIGHTS!
‘With over 300,000 private residential property investors in New Zealand, it is
s w e h a v e , t h e m o r e p e r s u a s i v e o u r c a s e b e c o m e s .
S t r e n g t h i n n u m b e r s c a n m a k e a l l t h e d i f f e r e n c e . T o g e t h e r ,
w e c a n p r o t e c t p r o p e r t y i n v e s t o r s a n d p u s h f o r f a i r e r p o l i c i e s .
W h y J o i n ?
everyday Kiwis trying to secure their financial future and supplement their pension. For example, did you know that 85 per cent of people who invest in residential rental property have a job, are self-employed, or both? Ordinary, hard-working Kiwis who are
S u p p o r t A d v o c a c y E f f o r t s : S t a n d t o g e t h e r i n p u s h i n g
f o r f a i r p o l i c i e s t h a t p r o t e c t p r o p e r t y i n v e s t o r s .
S t a y I n f o r m e d : R e c e i v e t h e m o n t h l y
A d v o c a c y U p d a t e a n d w e e k l y m e d i a
u p d a t e s o n k e y i s s u e s .
H a v e Y o u r S a y : P a r t i c i p a t e i n
s u r v e y s a n d p r o v i d e f e e d b a c k
o n i s s u e s a f f e c t i n g t h e i n d u s t r y .
If we want the investor market to look like it does now, one dominated investments instead of large, faceless corporations, we need to stop the instead highlight the many positive contributions investors and landlords
We also need to create a stable and fair environment so the next generation can invest with confidence and carry on providing private rental accommodation
A property investment is a large and long-term investment – why take the risk if the rules keep changing with
Sign up for Advocacy Membership today.
This is “why” behind everything that we’re doing as a Federation.
Scan the QR code above to join.
THANK YOU FOR THE
work, please visit our website.
I would like to finish this contribution with a thought around future property investors in New Zealand.
Where will they come from and what will the industry look like in 10 or 20 years?
media to change the image of property investors and to create an environment in which existing investors can thrive, and new investors will enter the market.
I hope you’ll join us in making this vision a reality. ■
Monthly round-up of events and meetings at our property investor associations.
NEXT MEETING: Go to www.apia.org.nz/ events for details on upcoming meetings. APIA hosts 100 events and presentations for its members each year.
NEXT MEETING: June 17, 2025
NEXT MEETING: TBA
TOPIC: Contact admin@ waikatopia.org.nz for more information about this meeting.
TOPIC: Join us for our annual general meeting and show home tour. Free for all members and guests, come and tour the latest show home in New Plymouth, share some drinks and nibbles and complete our election of officers for 2025/26. Show your support for our association and talk to an executive member about volunteering today.
NEXT MEETING: August 6, 2025 at SALT Auditorium 35 Matipo Street, Palmerston North.
TOPIC: Speaker TBC.
NEXT MEETING: June 18, 2025 at Ray White, 64 Queen Street, Blenheim Central, Blenheim 7201
TOPIC: Super games evening.
NEXT MEETING: June17, 2025 at Honest Lawyer, 1 Point Road, Monaco, Nelson TOPIC: Join us for our fourth meeting of the year with special guest Tania Elmer – property investment journey and exit strategy.
SOUTHLAND
NEXT MEETING: TBA
NEXT MEETING: Wednesday June 25 @ 7pm
NEXT MEETING: Monday 09 June 2025 @ 7pm at Tauranga Club, Level 5, Devonport Towers, 72 Devonport Road
TOPIC: Rental Rules, Political Moves & Investor Wins: Hear from Matt Ball, NZPIF’s PR & advocacy manager.
NEXT MEETING: Tuesday, June 10, 2025 @ 6pm at NZHL Office, 1109 Fenton Street
TOPIC: Finding Smart Investments in Today’s Market with seasoned property investor Daryl Fisher.
NEXT MEETING: TBA
TOPIC: Contact hawkesbay@ nzpif.org.nz for more information about this meeting.
NEXT MEETING: TBA
TOPIC: Contact wairarapa@ nzpif.org.nz for more information about this meeting.
NEXT MEETING: June 12, 2025 at Lifepoint Church, 61 Hopper Street, Mount Cook, Wellington 6011.
TOPIC: Join us for our annual general meeting (AGM) and an inspiring evening with Chris and Warwick Dugdale, seasoned investors whose passion for people, property, and projects has transformed both communities and lives.
NEXT MEETING: June 7, 2025 at Hotel Elms, 456 Papanui Road, Christchurch
TOPIC: CPIA Women in Property - join us for a discussion session with Liz Harris.
NEXT MEETING: 18 June 2025 at Caroline Bay Community Lounge, Timaru Port, Timaru 7910
TOPIC: Contact south-canterbury@nzpif.org.nz for more information about this meeting.
NEXT MEETING: TBA
TOPIC: Contact northotago@nzpif.org.nz for more information about this meeting
TOPIC: Contact southland@nzpif.org.nz for more information about this meeting.
NEXT MEETING: June 24, 2025 at OPIA Offices, 8 Turakina Road, South Dunedin
TOPIC: Finance panel meeting.
TOPIC: Contact northland@nzpif.org.nz for more information about this meeting. Join a property investor association for industry updates, networking and commercially independent information – a great way to protect your rental property investment.
W i t h t h e e l e c t i o n j u s t 1 8 m o n t h s a w a y a n d t h e p o l l s t i g h t e n i n g ,
a c h a n g e i n g o v e r n m e n t c o u l d m e a n a r e t u r n t o h a r s h a n t i -
l a n d l o r d p o l i c i e s . N O W I S T H E T I M E T O A C T .
N Z P I F i s a l r e a d y a d v o c a t i n g i n W e l l i n g t o n , b u t t o t r u l y m a k e
a n i m p a c t , w e n e e d t h e p o w e r o f a u n i t e d v o i c e . T h e m o r e
m e m b e r s w e h a v e , t h e m o r e p e r s u a s i v e o u r c a s e b e c o m e s .
S t r e n g t h i n n u m b e r s c a n m a k e a l l t h e d i f f e r e n c e . T o g e t h e r , w e c a n p r o t e c t p r o p e r t y i n v e s t o r s a n d p u s h f o r f a i r e r p o l i c i e s .
W h y J o i n ?
S u p p o r t A d v o c a c y E f f o r t s : S t a n d t o g e t h e r i n p u s h i n g
f o r f a i r p o l i c i e s t h a t p r o t e c t p r o p e r t y i n v e s t o r s .
S t a y I n f o r m e d : R e c e i v e t h e m o n t h l y
A d v o c a c y U p d a t e a n d w e e k l y m e d i a
u p d a t e s o n k e y i s s u e s .
H a v e Y o u r S a y : P a r t i c i p a t e i n
s u r v e y s a n d p r o v i d e f e e d b a c k
o n i s s u e s a f f e c t i n g t h e i n d u s t r y .
Sign up for Advocacy Membership today.
Jun/Jul 2025
The key to any good Investment is Information. NZ Property Investor magazine, with the trusted data supplied by Corelogic would like to show you how you could use this data to optimise your next investment search.
1
Compare rents and values for 3 and 4 bedroom houses in a given suburb
Then consider what the rent and value increase would be if you renovated a 3 bedroom property into a 4 bedroom property.
Example: Manurewa North going from 3 to 4 beds, looks like an increase of about $200,000 and rent of about $80 a week.
2
Estimate an increase in rent from a renovation
Example: If my house is in Manurewa North and has 3 bedrooms. If it currently rents for $590 and has 3 bedrooms, a renovation could push it up the rental range to the upper quartile. Currently $670. That’s an $80 increase. Estimate the 1 year increase. This can also be useful when estimating how the value of your property may have changed over the prior 12 months, which can then impact your ability to purchase your next property.
3
Estimate rental demand and how long it will take to find a tenant
For instance there were 48 bonds issued in Dinsdale South in the last month. That means there are about 12 3-bed houses renting in that suburb per week. That might tell you something about how much vacancy you might have.
The
As applications rent arrears issues increase, David Faulkner continues his call for an overhaul of how the tribunal works.
Recent changes in the Residential Tenancies Amendment Act have given the tribunal authority to make decisions on applications without holding a hearing and basing their decisions purely on the evidence in front of them.
However, they are only applying this to hearings that do not involve the termination of a tenancy and to cases where a landlord may have unlawfully entered the premises. The issue here is that many Tenancy Tribunal cases involve issues around rent arrears, so this change will have limited or no impact on the speed of the tribunal.
Tenancy Services provides information on the number of applications made to the tribunal. We see whether a landlord or tenant is making the application and categorise the disputes. We can see that landlord applications are on the rise, predominantly due to rent arrears, which comprise approximately 80 per cent of all landlord applications.
The graph below shows that landlord applications have increased back to pre-Covid levels. The significant drop from Q1 to Q2 in 2020 was due to the lockdown and
emergency changes to the RTA to ensure that tenants could not be evicted due to rent arrears unless they were 60 days or more behind in rent. The cost of living and rising rents have affected everyone, and this is reflected in the rising number of applications. Interestingly, tenant applications have not increased. We are seeing more complex applications by tenants and the involvement of more tenant advocacy groups. Expect this trend to continue, particularly as we pass the Healthy Homes deadline.
The rising number of applications strains the tribunal’s ability to hear cases quickly. Rent arrears can soon blow out if a dispute is unresolved within the first four weeks. This negatively impacts both landlords and tenants. Landlords are out of pocket and may struggle to service a mortgage, while tenants risk their homes, which can impact their credit rating and the prospect of finding a new property.
A solution I have previously tabled is to make rent arrears-only decisions without needing a hearing. This would exponentially speed up the wait time for hearings. Remember that the
Tenancy Tribunal is a form of dispute resolution. In most rent arrears-only cases, there is no dispute. An in-person hearing will occur if a tenant withholds rent due to a landlord allegedly breaching the contract.
However, if there is no dispute and decisions are based on evidence, why bother having a hearing when the tenant has already gone and will not turn up in most cases?
All the landlord needs to do is provide evidence, such as a signed tenancy agreement to confirm the start date of the tenancy, as well as a rent summary and any 14-day breaches they may have sent. This would be enough evidence for an adjudicator to seal an order to end the tenancy.
The tenants will be notified of the claim and allowed to put forward their case before making the decision. Once the order is sealed, the tenants can still seek a rehearing if a substantial miscarriage of justice has occurred. Landlords and tenants have five working days to do so after the tribunal’s decision. The tribunal order can also reflect this by not granting possession to the landlord until those five working days have expired.
One day, we may see artificial intelligence replace adjudicators, speeding up the process. However, that is unlikely to happen anytime soon, and just thinking about the possibility of that happening is somewhat surreal!
So, with that in mind, let’s look at some practical solutions to speed up the process so that it is fairer for both parties. Amend the law to allow termination of tenancies but only in rent arrears cases. ■
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