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16 38

CONTENTS JANUARY 2024

FEATURES UP FRONT COLUMNS REGULARS

16 PROFILE 02 FROM 48 YOUR 63 FROM THE
Education and action are THE TEAM DEVELOPER PRESIDENT’S DESK
key for Sarah Wilson. Anthony Corin talks

22 YEAR AHEAD 04 NEWS soundproofing. 64 AROUND

THE REGIONS
What’s in store for 2024? 08 TENANCY 49 YOUR
28 TENANCY ACCOUNTANT 65 NZPIF
Mediators are great for
09 TAX UPDATE Mark Withers looks at
relationship splits.
SPOTLIGHT –
GREEN-FINGERED
conflict resolution.
10 EXPERT ADVICE 50 YOUR SHORT- TENANTS
32 DIY PROJECT 12 YOUR HOUSE TERM RENTAL 66 NZPIF
Caleb and Alice’s top Eric Hammond on
SPOTLIGHT –
3 ways to add value.
15 YOUR RATES increased STL demand.
CONFERENCE
38 RENOVATION 51 PROPERTY 68 RENTAL &
Mary-anne Tobin with style INSIGHTS Greg Watson
insights for 2024. shares inspection tips.
SALES STATISTICS
54 REGIONAL 52 YOUR REVIEW 79 SUBSCRIBE
REVIEW Tauranga:
NZ’s lifestyle city.
Stevie Waring’s clients
join forces to invest. 80 FINAL WORD
.

NZ PROPERTY INVESTOR 1
FROM THE TEAM

THE CRYSTAL
BALL IS OUT
Our lead story this month explores what experts
NZ PROPERTY INVESTOR
think property investors might face in 2024. MAGAZINE PUBLISHER
Opes Media Limited
redicting the year ahead is an imprecise art. But there’s something 2/236 High Street,

P comforting about experts’ take on what might be; it provides some

sort of surety (even if it doesn’t eventuate). Surely an informed guess
is better than nothing.
Our lead story this month explores what is likely ahead for property investors
in 2024. We have a new government that is promising much, but many of the
Christchurch, 8011

EDITOR
Joanna Mathers
E joanna@propertyinvestor.co.nz
changes they are looking to make will take some time to be realised.
ART DIRECTOR
Sue Harrison, president of NZPIF, says that while property investors may see Sally Fullam
the new government as a sign for smoother sailing ahead, interest rates will E sally@propertyinvestor.co.nz
make it choppy.
ANZ’s chief economist Sharon Zollner says house prices are far below their ACCOUNT MANAGER /
peak and the bank’s position is that it will take years for them to return to the ADVERTISING SALES
heady heights of November 2021. Unemployment may rise, which could have an Stephanie Bryant
impact of the bank’s willingness to lend to people who are new to the market. M +64211658018
These are just a few of the predictions voiced in the story. Sally Lindsay has E stephanie@propertyinvestor.co.nz
also chatted to Jen Baird from REINZ; David Faulkner from Property Brokers;
WRITER
independent economist Tony Alexander; and Kelvin Davidson from CoreLogic.
Sally Lindsay
They all have interesting perspectives on the year ahead.
Mary-Ann Tobin, of Design Addiction, also looks into her crystal ball, SUB-EDITOR
predicting what the design trends will be for the year ahead. Although interior Mike Deacon
design doesn’t often feature strongly when we are renovating rentals, it’s very
important for those who have short-term rentals. If you fall into that category,
Tobin’s story should be of interest.
Our profile this month, Sarah Wilson, has always been convinced of the
power of property. She bought her first home, aged 23, with her husband. And
her long-term buy-and-hold rentals have served her well. She’s currently in the
process of developing one of her Auckland rental properties and adding five
new townhouses to the section – great for the housing pool in our largest city.
And if you are afraid of mediation, you should read Sarina Gibbon’s excellent
story on the topic. She believes it offers landlords a great service and a way
of getting your side of the story across if there are issues with a tenancy. As
general manager of Auckland Property Investors’ Association she has great
insights around this. We trust you find her story useful. SUBSCRIPTIONS
Jill Lewis
We hope you all had a lovely Christmas and new year. We look forward to T 0800 888 643
E subs@propertyinvestor.co.nz
informing and inspiring you in 2024.
To subscribe go to
All the best. www.propertyinvestor.co.nz/subscribe
From the team
CONTRIBUTORS
Shane Campbell, Anthony Corin,
Kelvin Davidson, David Faulkner,
Sarina Gibbon, Matthew Gilligan,
Eric Hammond, Sue Harrison, Caleb
Pearson, Kris Pedersen, Mary-anne
Tobin, Rachel Vogan, Stevie Waring,
Greg Watson, Ryan Weir, Mark
Withers.

2 NZ PROPERTY INVESTOR
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UP FRONT NEWS
IMMIGRATION BOOM A CHALLENGE
The jump in net migration has seen the country grow
by the population of a decent-sized city over the past
year, but that growth also brings headaches.
Almost 119,000 people flowed into
New Zealand over the 12 months to
the end of September – the largest
population gain through migration for
any 12-month period.
This boom in net migration has seen
NZ grow by the population of a decent-
sized city over the past year.
The population surge came from a net
gain of 164,000 overseas citizens coming
to the country long-term and a net loss
of 45,000 New Zealand citizens leaving
our shores – a new record level, with
Stats NZ estimating that about half of
those departures were to Australia.
Westpac economist Darren Gibbs
says migration figures will go through
several rounds of revisions over time.
Monthly arrivals stood at about 21,000 in
September, down from a peak of more
than 26,000 in April but still about 8,500
more than in September last year.
Most immigrants are coming from
India and, to a lesser extent, China and
the Philippines. About a third of people
arrived on a work visa, and about a
quarter on a visitor visa.
Given the increasing size of this flow,
4 NZ PROPERTY INVESTOR
understanding the economic impact
has become more important than ever,
Gibbs says.
“To date the huge migrant inflow
seems to be helping to alleviate
tightness in the labour market while also
underpinning a moderate lift in house
sales, prices and especially rents.
“How these competing influences
on the economy and inflation continue
to play out will have a bearing on the
required level of interest rates over the
year ahead.”
WAGE LEVELS
Historically, migrants from India, China
and the Philippines have earned slightly
below average wages in NZ. If that
remains the case, that implies more
upwards pressure on lower-priced
homes and rentals relative to those at
the top end of the market.
Many migrants have moved to
Auckland. As the country’s biggest city,
this has helped spur economic activity
despite nationwide gloominess, while
putting upwards pressure on house
prices, ANZ’s latest Property Focus says.
While Auckland has been building
houses rapidly in recent years, this is not
keeping pace with the volumes of new
arrivals, making the evolving demand-
supply balance a tailwind for prices
once more.
ANZ chief economist Sharon Zollner
expects the additional pressure in the
Auckland housing market to cause
spillovers to neighbouring regions such
as the Waikato and Bay of Plenty as
relative prices adjust, given these regions
are close to Auckland.
LABOUR MARKET
It’s not just house prices where pressure
is expected to emerge; rents are also
likely to see sustained increases from
higher population growth. However,
Zollner says at some stage the cooling
labour market will reduce tenants’
wage growth, meaning they will be
less able to pay higher rents. This will
limit landlords’ ability to continue to
raise rents.
Given the unprecedented amount of
extra people who have recently arrived
in the country and our inability to wish
new houses into existence, she says
there is a clear risk these extra people
will cause rents, house prices, inflation
and mortgage rates to rise more than the
bank or the RBNZ are expecting. Q

Christchurch-based Gold
Band Finance mainly focuses
on non-CCCFA loans.
THE QUANDARY SOME
INVESTORS FACE
Despite a recent rise in loan applications, Christchurch-based Gold Band
Finance is seeing people committed to buying investment properties they
probably no longer want to buy.
Gold Band Finance’s chief executive,
Martin Brennan, says some investors
entered contracts months ago, but the
market has moved, and they are being
forced to settle.
A combination of factors has led to
this situation, he says. Interest rates went
up, property prices went down. “In other
words, the house bought for say $10, is
now worth $8, which obviously leads to
impairment. Those investors are staring
down a loss of value and an increase in
funding costs. In a lot of cases, they can’t
get funding because the asset values
have gone down.
“It’s a challenge. A lot of people are
having to settle on them and are selling
them straight away. Some will sell for a
loss; it depends on the circumstances.”
It’s one reason Gold Band Finance
has given up on doing Credit Contracts
and Consumer Finance Act (CCCFA)
loans. “They are just too hard and an
operational risk when there is legislation
saying directors can be personally liable
for any non-compliance.”
BIG ISSUE
Directors and senior managers may
be personally liable, with penalties of
up to $200,000 and/or court ordered
damages or compensation.
He says the legislation was done with
good intentions, but when ambiguous
laws are passed its problematic. The
act does not tell lenders how much
borrowers can commit to servicing
a loan; they have to make their own
assessments and it’s a big issue.
Gold Band used to have a consumer
loan book of about $10 million, but it now
mainly does non-CCCFA loans. Brennan’s
question is where are those people
borrowing money from now?
Many industry pundits believe it’s from
rogue lenders charging high interest
UP FRONT NEWS
rates – the type who the National Party
said before the election should be
targeted in rewritten legislation aimed at
protecting vulnerable consumers without
unnecessarily limiting access to credit.
Although tweaks were made to
the legislation by the previous Labour
government, Brennan says Gold Band
still has reservations and will wait to
see how the new government rewrites
the CCCFA.
Gold Band has found loan demand
this year the strongest it has probably
been in the past three or four years for
CCCFA and non-CCCFA lending. It’s not
around budget, he says. “I think it’s about
a psychology. I’ve talked with people who
just think the change in government will
lead to a change in culture that will make
for a better environment. I don’t think
people are waiting for a specific piece
of legislation or something like that, it’s
more a psychological view.” Q
UP FRONT NEWS
CALL TO INCLUDE
PRIVATE LANDLORDS
The industry needs
to lobby the new
government to include
private landlords in any
rewrite of the Property
Managers Bill, says a
team leader.
The leader of a big property
management team says if there is any
rewriting of the Property Managers Bill,
introduced to Parliament by the previous
Labour government, it needs to include
private landlords.
Property Brokers property
management general manager, David
Faulkner, says the industry does need to
lobby the new government to include
CONSTRUCTION TAKES A FALL
The amount of building
work has dropped
2.4 per cent, a sharper
fall than at least one
bank forecast.
Although construction work is falling
away, the drop for the September
quarter is more than expected and so-
called resilience in the sector actually
reflects a shortage of labour and
significant capacity constraints plaguing
it over the past few years.
The amount of building work put in
place fell 2.4 per cent in the quarter,
while Westpac had forecast it to fall by
only 1.4 per cent.
However, Westpac says the result
needs to be put in context.
While there might have been a
sharper fall than expected, estimates of
building activity over the past year have
6 NZ PROPERTY INVESTOR
private landlords in any rewritten bill.
“If not that, at least to have a public
register of every residential landlord in
New Zealand.”
However, he isn’t convinced the bill will
be rewritten to any great extent or if at all.
The agency made a submission to the bill
and also backed the REINZ submission.
Faulkner says regulation of property
managers is necessary and a good thing
as it will increase professionalism in
the industry.
“There is a now a trend of more
landlords using property managers. I
believe more than 80 per cent of rental
listings are now listed through a property
management or real estate company.
That’s a big change from a few years ago.”
GREATER PROTECTION
He says regulation will lead to greater
been revised higher, says Westpac senior
economist Satish Ranchhod. “Taking a
longer-term perspective, building activity
has effectively been tracking sideways at
elevated levels over the past year.”
He says the capacity constraints and
labour shortages mean that although
many buildings are being consented,
actual building work isn’t keeping
pace, with backlogs developing and
completion times stretching out.
COSTS AND RATES
Financial conditions in the building
sector have become tougher over the
past year with large increases in build
costs and interest rates, as well as a
broader softening in economic activity.
Against that backdrop, fewer new
projects are coming to market and many
construction firms are reporting a sharp
downturn in orders.
Ranchhod expects that will result in a
protection for landlords, particularly
when it comes to money held in a
trust account, and helping professional
conduct. “Ultimately those benefits
flow through into the tenants; they
know that they’re going to be treated
professionally.”
Faulkner says it’s not always the
case when dealing with mum and dad
investors, and that is not denigrating
them.
“There’s a lot of skill that goes into
property management and landlords
need to know what they’re doing. Mum
and dad investors don’t always know
their rights and responsibilities under the
Residential Tenancies Act, so I think the
bill will go through.”
There is a risk that it may not because
ACT didn’t support Labour’s proposed
bill, but Faulkner thinks it’s a small
risk. “The coalition government can
change the bill, proceed with it as it
is, or scrap it. We think National and
New Zealand First will proceed with it
because they voted for it when it first
came before Parliament.”
The Property Investors’ Federation
has argued against private landlords
being included in the bill, saying
landlords are hardly going to rip
themselves off and a tenant can always
use the Tenancy Tribunal if they feel the
landlord is not keeping the rental up to
standard or breaching the Residential
Tenancies Act. Q
sharp slowdown in building activity over
the year ahead. “But for now, with many
firms still completing projects that were
already on the books, the downturn has
been modest.”
Looking across the main building
segments, residential construction has
now fallen 8 per cent from its 2022 peak.
Consents for residential projects have
fallen 20 per cent over the past year
with developers reluctant to bring new
projects to market and prospective buyers
cautious about purchasing off-plan.
Ranchhod says that will flow through
to lower building activity over the
next year.
While non-residential construction
levels have fallen 6 per cent from their
peak, the level of work in train is still high.
However, he says developers and real
estate firms are reporting a sharp drop in
the amount of planned work, with high
financing costs a major hurdle. Q
UP FRONT PROPERTY MANAGEMENT
THE QUESTION OF
HOW MUCH RENT
Sally Lindsay takes a look at the way rents are set
and the challenges around shifting regulations.
ne of the most asked
O questions is about rent – how
to set it and what level should
increases be at.
The previous Labour government
brought in rules around rent increases,
allowing only one increase a year for an
existing tenant or when a tenant leaves
the property.
One of the miscalculations landlords
make is believing the higher the rent, the
better calibre of tenants the property
will attract. This is a misnomer and the
complete opposite. The only tenants the
property will attract will be either two
families moving in together who can
afford the high rent or people who can’t
get any other property.
The rent needs to be priced correctly
for the location and the market it’s in.
It has to be on a par with the market if
it is to attract the right tenants, because
the right tenants will not pay over the
odds and they often have a choice
of rentals.
The message to landlords is to
increase rents in small increments that
are not out of kilter with the market.
SHOCK FOR TENANTS
In some situations, landlords often don’t
increase their rents for several years
if they have good tenants. They then
suddenly realise they are behind the
market, in deficit, and need to raise their
rent by $100 a week to hit the market
rate, which comes as a big shock for
the tenants.
With the increased costs of rates,
interest, insurance and interest tax
deductibility, owners’ costs are
increasing dramatically, and huge top-
ups have been needed. It simply isn’t
possible to pass these cost on to tenants
because that would mean huge rent
hikes of as much as 30 per cent, which
the rental market and tenants are not
able to sustain.
Landlords should make slow,
incremental rent rises so tenants
can afford it, say professional property
managers. If the right level is not
immediately obvious, get a
‘The rent needs to Award winning team
be priced correctly
for the location and
market it’s in’
Find tenants fast
professional property manager to do an
appraisal based on similar properties in
the area.
Over the past two years there has Online owner portal
been a push for landlords to increase
rents higher than inflation to cover
costs and make ends meet as an
alternative to selling. While most
landlords did not want to alienate their
tenants, if their property manager
We’re nice and we
advised them one of their properties is know our stuff!
severely under-rented and warranted a
rent rise, they have listened.
PRESSURE OFF Get in touch
In a reverse situation some tenants
have asked for a lower increase than
recommended, and as they have been
good tenants and costs are covered,
most landlords have agreed.
While the coalition government is
reinstating tax deductibility for landlords,
rents are unlikely to drop, but rises will
stabilise at lower levels. The pressure
will be off landlords because they have
some relief.
The cost pressures from higher
interest rates and the lack of tax
deductibility led to a surge of landlords
getting out of the rental market
because they couldn’t make the
numbers work.
Those who stayed in the market
have been contributing quite heavily
to their rentals in the form of mortgage
top-ups, and they are the ones
who will get the biggest relief from
tax deductibility.
Although that pressure is easing,
costs are still rising, particularly around
insurance and council rates.
The overall impact will probably
be that landlords who have been
thinking of selling may now stay in
the market. Q
09 887 7420
therentalbureau.co.nz
UP FRONT TENANCY
TENANT LEFT WITH BILL
DESPITE MOVING OUT
The Tenancy Tribunal has ruled a woman, who left a rental she shared with
her partner after discovering he was using meth, is still liable for damages.
A woman who left a rented Manurewa,
Auckland property she shared with her
partner after discovering he was using
methamphetamine is still liable for a
half share of Tenancy Tribunal awarded
exemplary damages and other debts
owed to the landlord.
The property was uninhabitable
at the end of the tenancy and
required extensive restoration after
decontamination, costing $40,284.
Taurean McLean McKenzie and the
woman were in a relationship at the
start and during most of the tenancy.
However, the woman, who has name
suppression, left the property after
discovering McKenzie was using meth in
agreement at the time she left the
property. She did ask the landlord,
when she told him about her former
partner using meth, if she could be taken
off the tenancy agreement, but that
didn’t happen.
After the meth testing McKenzie was
given seven days’ written notice to leave
the property, but he didn’t leave until five
days later.
Wise Property Management and Fan
applied to the tribunal for rent arrears,
refund of the bond, water bills, lock and
key replacement costs, $1,250 insurance
excess for the meth decontamination
and exemplary damages for unlawful use
of the premises and failing to vacate the
can pursue any debt she incurs against
McKenzie at the Disputes Tribunal.
The landlord was awarded exemplary
damages of $500 because McKenzie
failed to vacate the property on the
date given.
Northwood said McKenzie was aware
of the meth results, that the property
was declared uninhabitable, and he had
a hand-delivered letter advising of the
tenancy termination and the date he
must leave. Despite this, he remained at
the property for another five days.
The effect on the landlord was that
his arrangements to have the property
decontaminated were put on hold.
He had lined up several professional
TAX UPDATE
GOOD START BY
THE COALITION
Matthew Gilligan is encouraged by the new regime’s
approach to property, but he notes the devil is always
in the detail.
n November 24, 2023,
O New Zealand’s coalition
government with National,
ACT and NZ First was finally
announced, and some important
decisions around tax and property
investment have already been confirmed.
Note that when I wrote this article
many of the details were yet to be
revealed (but some may have been
clarified by the time you read this).
INTEREST RULES
The thing that we at GRA are most
pleased about is that the coalition
parties have agreed to speed up the
reversal of the interest non-deductibility
rules for property investors.
GRA and the Property Investors’
Federation (PIF) both lobbied National
and ACT to get these rules repealed,
and we are happy and relieved that ACT
has negotiated to push through the
changes more quickly than National was
originally planning.
Interest deductibility will be restored
to property investors over the next
couple of years as outlined below.
• 2023/24 tax year: 60 per cent
of interest cost will be deductible.
• 2024/25 tax year: 80 per cent
of interest cost will be deductible.
• 2025/26 tax year: 100 per cent of
interest cost will be deductible.
It is yet to be revealed how these changes
will exactly be implemented, or even if
this timing is correct as announced. We
say this because Nicola Willis was already
on record in the media at the end of
GET IN TOUCH FOR YOUR FREE CONSULATION WITH
NEW ZEALAND’S NUMBER ONE PROPERTY ACCOUNTANTS
W www.gra.co.nz ADDRESS
E info@gra.co.nz
P +64 9 522 7955
November talking about different timing,
which we interpret as a misunderstanding
of what has been announced.
What I can say with certainty is that
the reversal of the non-deduction rules
will help undo what was a manifestly
wrong tax policy that caused rent
increases, threw tenants out of their
homes when landlords sold their
properties, skewed investment away
from second-hand houses, and reduced
supply of rental properties.
ACT’s response to the combined
lobby efforts of the PIF and GRA, and
their follow-through on our request to
negotiate for us during coalition talks,
has shown ACT stands behind landlords
and has done what they said they would.
NO-CAUSE NOTICES
We are also pleased the new
government will reinstate 90-day no-
cause tenancy termination notices.
Labour’s removal of these caused
unnecessarily adversarial disputes in
the Tenancy Tribunal, and resulted in
landlords avoiding what they considered
to be risky tenants because eviction for
anti-social behaviour was so difficult.
This in turn put immense pressure on
social and emergency housing.
Now landlords will be more inclined to
give a marginal tenant a chance because
they know that if the tenant misbehaves
(eg annoys the neighbours, damages the
property, threatens the landlord), they
won’t be stuck with them.
BRIGHT-LINE CHANGE
Before the election, National signalled
Level 6, 135 Broadway Newmarket
PO Box 9918, Newmarket, Auckland
they would reduce the bright-line period
from 10 years to two. So, we know
what’s coming, but as yet we don’t
know when it will be implemented, and
whether it will be reduced to two years
or some other timeframe. Whatever it is,
a reduction from Labour’s imposed 10
years is good news.
Still to come is the detail. Will the
rule change be retrospective on houses
already owned, or prospective on new
assets only? When will it take effect? The
devil is always in the detail.
FOREIGN BUYER TAX
It was reported that the planned foreign
buyer tax on residential property “will no
longer go ahead”.
What has actually been agreed is that
there will be no changes to the current
foreign buyer rules, which stipulate that
only Australians and Singaporeans can
purchase residential property in New
Zealand. In other words, there will be no
foreign buyer tax because there will be no
loosening of the foreign buyer restrictions,
and hence, no foreign buyers to tax.
In summary, the policy changes around
interest non-deduction, bright-line and
tenancy rules are an excellent start
by the new coalition government in
my view. However, while it is exciting
news, we need to wait to see what the
detailed policy looks like. There are many
unanswered questions.
We will keep you posted on the
GRA website (www.gra.co.nz) as
further property and tax updates
are announced. Q
NZ PROPERTY INVESTOR 9

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.
KRIS PEDERSEN
Kris Pedersen of Kris
Pedersen Mortgages is a
commentator on property
and finance. His team sources
top finance strategies.
Phone 09 486 4719, www.
krispedersenmortgages.co.nz
MARK WITHERS
Mark and his team specialise
in advising on property-
related transactions,
valuation and restructure
services, and tax planning.
Withers Tsang
phone 09 376 8860,
www.pfkwt.co.nz
RYAN WEIR
Ryan is managing
director and franchisor of
Propertyscouts NZ. He’s
deputy chairman of the
RPMA and is passionate
about the property
management industry,
particularly, raising
industry standards.
SHANE CAMPBELL
A partner in Wynn Williams’
Dispute Resolution Team,
Shane specialises in complex
commercial disputes. He acts
on property disputes, product
liability, defective buildings
and professional negligence
- including claims for and
against lawyers, architects,
accountants, engineers, valuers
and property managers.
ERIC HAMMOND
Eric is the founder and
managing director of The
Stay Hub and Hammond & Co
Property Management.
His team specialise in both
short-term and long-term
rentals with a portfolio
spanning both central and
greater Auckland.
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 expertadvice@propertyinvestor.co.nz
to have your questions answered.
GETTING CROSS
ABOUT THE
CROSS-LEASE
Upset over development plans can be addressed,
but it pays to follow the correct procedure.
We have a neighbour who
Q shares a cross-lease with us
and three others in Auckland.
The neighbour is putting an 8x4 metre
unit on the back of their property,
which will overlook ours and severely
impact our privacy. It is openly
opposed by us and the others on the
cross-lease. Is there anything we can
do to stop the building going ahead?
All the materials are on site and the
builder is apparently due to start.
The answer to the question will
A depend on the wording of your
cross-lease, which vary. Most
cross-lease agreements prohibit lessees
from undertaking alterations or additions
without the other lessees’ consent. This
is usually with the proviso that consent
cannot be unreasonably withheld. In
deciding whether refusal is
unreasonable, judges will normally weigh
the detrimental effect on the other
lessees against your neighbour’s benefit.
Detriment can include matters such
as loss of amenity, peace or privacy
from being overlooked, which you say
applies here. For example, in one case
installation of French doors and deck
was said to create “a strong sense of
visual intrusion” making it reasonable to
refuse consent. Your options may vary
depending on where the proposed unit
is placed on the property ie, on common
property or on the neighbour’s exclusive
use area.
We recommend checking the flat plan
and cross-lease agreement carefully. If
you decide construction would be in
breach of the cross-lease agreement,
then this may be grounds to seek an
injunction from a court ordering your
neighbour to stop work and/or undo any
work carried out. If you want to prevent
construction work being carried out
prior to the case being heard, you will
need to give the court an undertaking as
to damages. This is a promise that if the
court ultimately decides against you, you
will reimburse your neighbour for loss
suffered because of the injunction.
In making any interim order to stop
work, the court will look at a range of
factors including how strong your case
as to breach is and how best to preserve
the status quo. As a court application
will involve legal costs, if time allows we
recommend writing to your neighbour
first, telling them that construction
would be in breach of the cross-lease
and that all other lessees object.
You could warn them that if they
continue, they risk a court ordering
removal of the unit at their own cost, in
addition to an order to contribute towards
your court costs. It would also be worth
noting in the letter that construction could
result in a defect in your neighbour’s title
and issues when their property is sold,
depending on the nature of the unit.
– Shane Campbell
My mum and I bought our first
Q
home in March last year. The
interest rate was fixed for two
years at 5.99 per cent. My mum died in
September and her will has my siblings
written into the house. What is the
likelihood of the mortgage being
rewritten under all of our names and the
interest rate being changed?
If you want to change the
A ownership then you will almost
certainly lose the interest rate.
Do note that if you do decide to go
down the path of adding your siblings on
that there can be other negative
implications to be aware of. If they
haven’t purchased a property previously
this may impact their ability to access

KiwiSaver later for a home for
themselves. Also note that lenders will
look at the full debt as being applied to
each person individually if anyone
applies for a mortgage in the future.
What I mean by this is let’s say there
were four of you so you each own 25 per
cent of the house and believe you are
responsible for 25 per cent of the
mortgage. The banks will load 100 per
cent of the mortgage onto any applicant
who applies for other mortgages
elsewhere, which can restrict what they
may want to do individually.
– Kris Pedersen
We have a property that will
Q need work when the tenant
leaves, in the next couple of
years. We are saving for this work but
as the savings are profit, we are subject
to tax. Is there any way of buying
vouchers or getting store credits for
items we will need for the renovation
at a later day, so it is not counted
as profit?
I would have several concerns
A over this. Firstly, if you wait until
a tenant departs before
undertaking maintenance that ultimately
leads to you selling the property rather
than re-letting it, the works lose their
nexus with the income earning activity
which is the renting. This then means the
works are considered capital works
designed to achieve the capital gain on
sale and are non-tax deductible, even if
they would have been deductible if re-let.
My second concern would be that
buying vouchers without actually taking
the goods or beginning the work leaves
you as an unsecured creditor of the
merchant. In the event the business
collapsed you would almost certainly
have lost your money. Lastly, the point at
which a deduction for the maintenance
cost (assuming the property is re-let) is
triggered is when the work the voucher
will pay for is undertaken and the
voucher redeemed, not the point in time
where the voucher itself is acquired.
My suggestion overall would be to
budget for the works needed and pay
for them when the work is undertaken,
ideally prior to the property becoming
unlet and certainly before the property is
marketed for sale.
– Mark Withers
My tenant has expressed
Q interest in adding a portable
pool for the summer, but I’m
feeling a bit concerned about potential
issues. Are there any specific rules and
regulations I should be aware of, and
would it be advisable to proceed with
caution in this situation?
Considering the tenant’s
A addition of a portable pool is a
decision that involves careful
consideration of legal and safety
aspects. Section 42B (Minor Changes) of
the RTA is pivotal here. Firstly, evaluate
whether the pool presents a risk of
material damage to the premises. For
instance, placing it on grass may risk
damage to the lawn. Additionally, assess
potential health and safety risks,
especially if there are young children in
or around the property. As the
PCBU (person conducting a business or
undertaking), conducting a thorough risk
assessment aligns with your obligations
under the Health and Safety Act.
Moreover, portable or above-ground
pools with specific characteristics may
require regulatory consent, such as a
building consent for a compliant fence.
If the pool’s height is less than 1.2 metres
above ground or it’s in proximity to
permanent structures like decks, fencing
may be mandatory.
– Ryan Weir
I have been renting out my
Q property investment in the
long-term rental market since
it was purchased six years ago. This
year I would like to explore short-term
renting. What will this switch mean in
terms of the Residential Tenancies Act
and protecting my property?
When you list your property in
A the short-term rental market,
things such as the Residential
Tenancies Act and Healthy Homes
regulations are not applicable. This
means any standard rental agreements
seen in long-term renting do not apply
to your property or the guests who stay
there. With that said, online travel agents
(OTA) such as Airbnb will have legally
binding terms and conditions that cover
aspects such as payments, cancellations
and damages. On Airbnb, all hosts are
offered AirCover free. This insurance
agreement includes up to US$3 million
EXPERT ADVICE
for host damage protection costs and
a further US$1 million for host liability
insurance.
Regardless of a booking platform’s
terms and conditions, hosts are also
entitled to draft their own rental
agreement. This can include rules
surrounding deposits and refunds, the
maximum number of guests staying
on the property, liability for accidents,
and things such as bringing a pet onto
the property. If you decide to include a
short-term rental agreement with your
listing, you need to ensure guests are
aware of its existence and the terms
prior to booking, not on checking in.
While OTAs usually have identity
verification rules in place for guests, to
best protect your asset we recommend
joining a professional property
management company that can
implement more thorough processes
for screening guests, including
background checks and social media
vetting. Joining a team of professionals
can also offer your guests 24/7 support
and ensure rules surrounding parties and
noise are upheld or dealt with as soon as
an issue arises.
– Eric Hammond
I have a rental property and
Q I need to know if I have to
pay tax or not. I have not made
any profit from rent yet. And what
about if I don’t pay tax and don’t
claim expenses?
When you say you have not
A made a profit from the rent
yet, the “$64 million question”
here is: How have you calculated your
profit? Unfortunately, tax is not so simple
as just looking at what the cash flow
position is. Some expenses that
you might expect to be deductible, are
not deductible. Interest is the prime
example of this if the property was
bought on or after March 27, 2021,
and it is not a new build or rented as
social housing.
In summary, whether you make a
profit or not from a tax point of view,
you need to file a tax return. Therefore,
I suggest you engage an accountant to
help you with this, and they will be able
to determine if there is a profit or loss for
tax purposes.
– Matthew Gilligan
YOUR HOUSE
LADIES AND GENTLEMEN,
WE HAVE LIFT-OFF
Average property values have left the launch pad, but
credit conditions and other market pressures mean the
stratosphere is a long way off, writes Sally Lindsay.
oreLogic’s House Price
C Index shows another rise in
November of 0.7 per cent.
The net result is that
average property values were up by
1.1 per cent over the three months to
the end of November, and the annual
change sits at -4.5 per cent, the softest
annual decline since November 2022,
when it was -2.9 per cent.
From the peak to September trough,
values fell 13.2 per cent. After the
increases in October and November,
values remain 12.3 per cent down from
the high, at $915,448.
Auckland, Hamilton, Tauranga,
Wellington and Christchurch had
monthly rises in the range of 0.7-0.9 per
cent, while Dunedin rose by a buoyant
1.9 per cent.
However, the market hasn’t exactly
soared away, says Kelvin Davidson,
CoreLogic’s chief property economist.
While sales volumes have been growing
steadily in percentage terms, it’s
from a low base that hasn’t translated
12 NZ PROPERTY INVESTOR
into a surge in the number of deals.
Meanwhile, credit conditions remain
challenging. “Even if mortgage rates
don’t rise much further, or even dip a bit
for the longer-term fixed rates, they’re
still high, and serviceability testing
remains a significant hurdle,” he says.
“Loan-to-value ratio rules are quite a
restraint on low-deposit lending as well,
although first home buyers are certainly
taking advantage of that speed limit
where they can.”
In Auckland the growth in property
values over November was fairly
consistent across the sub-markets,
with North Shore up by a robust 1.8 per
cent, but Rodney, Auckland City and
Waitakere in a more measured range
of 0.7-0.8 per cent. Franklin was a little
softer, while Manukau and Papakura
actually saw values drop in November.
“The results serve as a further
reminder this upturn may not be all
one-way traffic,” Davidson says.
The patchiness in property values
by sub-region, even though wider
market averages have started to turn
around, could well remain a feature in
coming months.
Further south, Wellington is another
key part of the country where property
values have also started to turn around
relatively promptly.
Lower Hutt and Porirua had seen
average values rise by 1.5 per cent in
November, with the latter’s figure now
up by almost 5 per cent in the past three
months. While that momentum may
not be maintained, for now Porirua is
showing steady gains.
Diversity in market conditions
exists outside the main centres, with
Queenstown at 3.2 per cent and
Gisborne at 1.9 per cent posting strong
gains in November. Whangarei at
-0.9 per cent and Rotorua at -0.6 per
cent lagged behind, while Nelson and
Invercargill were flat.
Davidson says this just illustrates
the variability evident from region
to region which might stay in play in
coming months.

Auckland value growth for
November was consistent across
sub-markets – with North Shore
up by 1.8 per cent.
AUCKLAND REBOUNDS
Wealthy Auckland buyers who can
afford $2 million-plus houses have
returned to the market in force.
The city’s biggest real estate agency,
Barfoot & Thompson, sold 91 properties
in November priced at more than
$2 million – the highest in a month for
20 months. Of this number, 24 sold for
more than $3 million, also the highest
number for 20 months.
Barfoot & Thompson’s managing
director, Peter Thompson, says the
housing market has accelerated with
sales numbers increasing significantly
and prices recovering most of the lost
ground recorded in the 12 months to the
end of November.
The agency sold 956 properties
in November, up 13 per cent on the
previous month and a third higher than
in the same month last year. It’s the
highest number of properties sold in a
month for 21 months.
Property prices have started to
bed in, with the median price hitting
$1,018 million – the highest in eight
months – while the average price
at $1,185 million was the highest in
19 months.
Significantly, the average sales price
for the month was up 2.8 per cent
on that for November last year. The
median monthly price in November
is within 4.4 per cent of its 2022
equivalent, the closest the 2023
monthly median price has come to
matching that for 12 months earlier.
WHAT’S DRIVING
HOUSE PRICES?
HOUSE PRICES: UP CoreLogic’s House Price
Index shows average property values were up
1.1 per cent over the three months to the end of
November, and the annual change sits at -4.5 per
cent, the softest annual decline since November
2022, when it was -2.9 per cent.
OCR: STEADY The Reserve Bank’s official cash
rate has been held at 5.5 per cent since July last
year after the RBNZ indicated it was at the end
of its tightening cycle. However, in its November
Monetary Policy Statement it said it could lift the
OCR again if inflation fails to drop.
INTEREST RATES: DOWN ANZ is predicting
the one-year mortgage interest rate should be
down to about 6.3-6.6 per cent mid-this year,
before dropping to 6 per cent in December.
BUILDING CONSENTS: DOWN The number
of new homes consented in October was down 21
per cent compared with October last year. Across
the board, 39,900 new dwellings of all types
were consented for the year to October and in the
month, there were consents issued for 3,060 new
homes, comprising 1,380 townhouses, flats and
units; 1,255 stand-alone houses; 201 apartments
and 184 retirement village units.
MORTGAGE APPROVALS: UP October’s new
mortgage commitments were $5.8 billion, up 11.2
per cent from $5.2 billion in September and up 3.5
per cent on an annual basis. New mortgages to first
home buyers rose 12.3 per cent to $1,369 billion
in October, up from $1,253 billion in September,
while lending to investors rose slightly, up to 17.7
per cent, or $1,021 billion, from $894 million in
September. The share of mortgages to first home
buyers has exceeded the share to investors each
month since April 2022, but the share of lending
to investors has been rising and increased from
15.4 per cent in January. The average value of
new mortgages across all borrower types rose to
$367,100, up from $347,000 in September.
RENTS: UP Rents across the entire market,
including existing tenancies, rose 4.1 per cent
nationwide in the year to October, according to
Stats NZ’s latest price index. That figure was up
1.5 per cent annually. It contrasted with Trade
Me’s latest rental figures, which show the national
median rent was up 7.5 per cent over the year, just
ahead of the 7.2 per cent rate of inflation. While
the national median rent was $575 in September,
a jump of $40 on the same time last year, it had
remained in the $570-$580 bracket since January
last year.
IMMIGRATION: UP Stats NZ data show
migration surged to a new record of 128,919 in the
12 months to the end of October. About 245,648
arrived in New Zealand on a long-term basis while
116,730 departed long-term, giving a net gain of
128,919. This is the biggest net gain ever recorded
in any 12 month period.
NZ PROPERTY INVESTOR 13
YOUR HOUSE
“This demonstrates prices being paid
are no temporary, short-term recovery,
but show a sound, rising market,”
Thompson says.
PRICE PREDICTIONS
ANZ is not expecting meaningful house
price rises this year.
Nationally, house prices are still a
long way below their peak and the bank
is forecasting it will take years to attain
those levels again.
Chief economist Sharon Zollner says
it’s not just house prices that are on
the weaker side – indicators for sales
and new listings show there is further
softness to come.
New listings are (just) above 2022
levels. Zollner says all else equal, this
extra supply will make it more difficult
for house prices to rise meaningfully
over the next few months. This lift in
listings is on top of an already large
stock of inventories, which needs to
decline before meaningful rises in house
prices are likely, she says.
“The risk is that house prices rise less
than we expect this year, given recent
modest further lifts in mortgage rates
and the somewhat faster-than-expected
labour market loosening. Dropping job
security is likely to make would-be first
home buyers more nervous about taking
the plunge, but there’s also a feed-back
loop here.
“Sharply rising unemployment can
negatively influence credit availability
too, making the outlook all the more
uncertain for credit providers.”
Zollner says the faster than
anticipated restoration of mortgage
interest deductibility and other landlord-
friendly policy changes agreed to by the
new coalition government are risks in
the other direction, although difficult
to quantify.
RENTS AND SUPPLY
Auckland’s rents are among the priciest
in the world.
The city has the dubious distinction
of being the third most expensive city
globally in which to rent. It’s only behind
Sydney and Tokyo.
The latest report by global real estate
agency Knight Frank shows Auckland
rents spiralled up by 13.1 per cent
over the 12 months to the end of the
September. That’s a 5.9 per cent increase
from the second to third quarter.
14 NZ PROPERTY INVESTOR
‘Auckland’s
rents are among
the priciest in
the world’
Property Investors’ Federation vice-
president Peter Lewis says he would be
surprised if rents had risen that much.
He says it may be possible for newly-
signed rental agreements, but would be
astonished if it related to existing rentals.
“While many landlords have put up
rents to existing tenants because costs
have gone up in terms of insurance, rates
and interest payments, I don’t think they
would have risen that much.”
For example, Lewis says he tries
to keep his rents at market level. On a
$500-a-week rental he would be putting
the rent up $40-$45 a week to keep up
with rising costs. “That’s about an 8-9
per cent weekly increase over 12 months.
“Providing rental accommodation
is the only industry in New Zealand
restricted to how often it can change or
increase prices. Petrol stations, banks,
supermarkets can put up prices as and
when they wish, but for some obscure
reason landlords are the only people
who are restricted to one rent increase
every 12 months.”
Knight Frank’s Prime Global Rental
Index show rents are rising at a rate
three-and-a-half times their long-term
pre-pandemic trend.
Strong global growth has pushed
prime rents 17.9 per cent above their
pre-pandemic high in the third quarter of
2019 and 25.5 per cent higher than the
pandemic low of the first quarter of 2021.
Auckland’s rent rises can be put down
to record numbers of new migrants
flooding into the country and a lack of
rental housing. Lewis says he has seen a
big increase in the number of migrants
looking for rentals.
Earlier last year he rented one of
his properties to a South African family
on a two-year work visa and he’s
expecting a house he has coming up
for rent to attract a slew of applications
from migrants.
FROM PAIN TO GAIN
Median resale profits on houses are just
short of $285,000, down from the peak
of $440,000 in late 2021, but still strong.
CoreLogic’s latest Pain and Gain
Report shows in the third quarter of last
year 92.6 per cent of houses were sold
for more than their original prices, but
the figure is down on 92.9 per cent in
the second quarter of last year and well
down on the 99.3 per cent in the fourth
quarter of 2021.
Although it still represents more
than nine in every 10 properties selling
for more than the owner originally paid,
the figure is also barely changed from
last year’s second quarter result of
92.9 per cent.
Put another way, says CoreLogic’s
Davidson, most property resellers in the
third quarter of 2023 still got a price
higher than what they originally paid,
reflecting the fact that most people have
held their property for several years.
“None of this should be too
surprising,” he says. “Driven by higher
mortgage rates, the wider downturn in
property values began in late 2021 and
ran for about 18 months, meaning that
a pass-through to less gain (or more
“pain”) for property resellers was always
inevitable – especially if they’d only had
a relatively short hold period of one to
two years, meaning they bought at or
near the peak of the market, and are now
selling in different conditions.”
For context, national average values
are about 13 per cent below the peak and
are back down to mid-2021 levels. That’s
roughly two years ago, and breaking
down the loss-making resales of the third
quarter, about 53 per cent of those had a
hold period of less than two years.
On the other hand, the wider property
market has now generally found a floor,
although some areas are still falling.
Davidson says given there can be
lags to some extent between market
values and the trends for the pain/gain
indicators, it wouldn’t be a complete
surprise if the resale performance
of property over the next quarter
or two weakened a little further –
especially if the labour market softens
more materially.
However, he says it also seems fair to
suggest the “pain” proportion is closer
now to its peak than the trough, and a
slow recovery in property values over
the next few years will eventually see the
loss-making proportion slowly decline
again over the medium term – especially
in most cases where the hold period has
been lengthy. Q
YOUR RATES

HAWKISH TONE
STILL CIRCLES
The tone adopted by the Reserve Bank suggests they
may not be done with rate increases quite yet, warns
Kris Pedersen.
he recent OCR review on dining out, the tourism, hospitality TWO-YEAR TERMS

T November 29 surprised no-one.

The cash rate was kept at 5.5
per cent, which was expected,
but the hawkish tone adopted by the
Reserve Bank suggested they may not
and retail industries are in for a
hard ride.
As mentioned above I expect this to
translate into pretty negative stories in
the first few months of next year and this
Having said that there are always
unforeseen circumstances (just think
Covid, the Russian-Ukraine war or
the Middle East) so if you want more
certainty or to hedge you may want to
be done with increases yet. should play a part in bringing inflation look at including 18-month or two-year
This went against the tone from numbers down. terms into your rate strategy.
most of the market, where over the last I am still in favour in most cases of I think at this stage rates any longer
month other economists (who had still the 12-month rate, with the belief we will (three to five-year fixed rates) are not
been predicting we may see an increase start to see the cash rate drop within worth the risk of fixing and being
early in 2024) started to agree that the that time. locked in. Q
massive OCR increases we have seen
over the preceding 24 months have been MORTGAGE 6 1 18 2 3 4 5
FLOATING RC
doing their job and the next move is LENDER MTH YEAR MTH YEARS YEARS YEARS YEARS
more likely to be a drop. ANZ 8.64 7.95 7.99 7.75 7.69 7.49 7.34 7.34 -
I do suspect there may be some ANZ Special - 7.35 7.39 7.15 7.09 6.89 - - -
misleading of the market going on
BNZ - Classic - 7.39 7.35 7.15 7.05 6.85 6.75 6.75 -
by the Reserve Bank, with them
knowing that further negative data BNZ - 8.69 - - - - - - - -
TotalMoney
coming through next year will assist
them in their attempt to get inflation HSBC Premier 8.59 - - - - - - - -
under control. HSBC Premier - - - - - - - - -
With the strong immigration numbers, LVR > 80%
and the housing market starting to HSBC Special - - - - - - - - -
show some positivity, the last thing
Kiwibank 8.5 8.39 8.35 - 8.05 7.79 7.69 7.69 8.55
the Reserve Bank wants is untamed
spending over the Christmas break. My Kiwibank - 8.5 - - - - - - - -
Offset
personal belief is that we will see a lot
Kiwibank Special - 7.39 7.35 - 7.05 6.89 6.79 6.79 -
more negative data in the first quarter
of next year in regard to job losses, SBS Bank 8.74 8.05 8.05 7.75 7.65 7.29 7.29 7.29 -
business failures and arrears around SBS Bank - 7.55 7.55 7.25 7.15 6.79 6.79 6.79 -
mortgages and credit overall. Special

TSB Bank 9.44 8.19 8.19 7.99 7.89 7.65 7.59 7.59 -
SPENDING DROP TSB Special 8.64 7.39 7.39 7.19 7.09 6.85 6.79 6.79 8.74
A recent Westpac survey showed
44 per cent of respondents expect Westpac 8.64 7.99 7.99 7.79 7.59 7.35 7.29 7.09 -
to spend less over this Christmas Westpac Offset 8.64 - - - - - - - -
season compared with last year. With
Westpac Special - 7.39 7.39 7.19 6.99 6.75 6.69 6.49 -
47 per cent expecting to spend less on
Median 8.64 7.39 7.45 7.15 7.4 6.87 6.85 6.92 8.25
holiday accommodation, 45 per cent
looking to spend less on travel and The interest rates specified in this table were accurate on 17 December 2023. 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
43 per cent a decrease on gifts and you and your circumstances. A Disclosure Statement is available on request and free of charge. Data provided by tmmonline.nz

NZ PROPERTY INVESTOR 15
PROFILE SARAH WILSON

16 NZ PROPERTY INVESTOR
EDUCATION
+ ACTION
= SUCCESS nvestor Dolf de Roos once said,

Sarah Wilson has discovered that learning and

taking action is the perfect property strategy,
writes Joanna Mathers.
Photography Stephanie Creagh.
I “The deal of a lifetime comes once
a week.” For Sarah Wilson, these are
words to live by.
“A lot of people are looking for an
ideal set of circumstances [before they
commit to investing] but educating
yourself and taking action is the best
thing you can do.”
Wilson lives in the leafy Auckland
suburb of Mt Eden, and she’s been
investing in property since 1998. She and
her husband Aaron were straight out of
university when they purchased their
first home in Glen Eden, west Auckland,
for the grand total of $165,000. They
were just 23.
The three-bedroom house on a large
section needed renovating, and they
spent too much on it, she recalls.
“It ended up costing more than what
we expected because we needed to
replace the roof and other things. But we
learned a lot buying that property and
going through that process. And we did
a lot of the work ourselves, which I think
was good.”
Their investment journey started eight
years later, in 2006.
Eighteen years on they are now
developing that first property and
putting years of experience and
education around property to good use.

FAMILY LEAD
Wilson grew up with a family of investors
– her parents understood the power of
property. “I think it probably encouraged
me to see buying property as a good
step,” she says.
Growing up in Hamilton, she left the
city after graduating from secondary
school, moving north to study at the
University of Auckland. It was here she
met Aaron; a young man who shared her
vision for the future. They would go on
to marry and embark on their property
journey together.

Wilson purchased her first

property – straight out of uni – in
1998. The Glen Eden home cost
the 23-year-old and her husband
Aaron $165k.
 ‘Wilson grew up
with a family of
investors – her
parents understood
the power of
property’

After purchasing their Glen Eden

home, Wilson’s passion for property
grew. With the internet in its infancy,
print was the key to education, and the
New Zealand Property Investor magazine
provided advice. She would also go on
to join the Auckland Property Investors’
Association (APIA), which provided her
with a supportive network.
So, by 2006, the couple were ready to
buy their first investment property.
They were interested in capital
growth, of course, but their primary
focus was cash flow and yield. So,
WIlson worked with real estate agents
and found a property in Mangere East
that fitted their requirements.
“We found a 1950s-era home-and-
income, which offered two income
streams,” she says.
On a large section, it also had
development (and capital growth)
potential. They purchased the property
for $320,000 from another investor
and kept the tenants who were already
living there.
The experience was so positive that
they quickly decided to buy again. “We
saw a ‘for sale’ sign outside a property
in Papatoetoe and decided ‘OK, we’ll get
that one too’.”
Another large home that suited
families, they bought this Mangere
East property for $318,000. The yield
across the two homes was a healthy
7.9 per cent.

THE EDGE
Networking has been a large part of
Wilson’s success. Alongside her APIA
membership, she was also a member
of Business Network International
(BNI): “I met accountants, people from
investment companies, mortgage
brokers, lawyers, real estate agents
and builders.”
This gave her a competitive edge;
her contacts helped her to get ahead
in property and in 2011 the couple were
ready to buy again.

18 NZ PROPERTY INVESTOR
PROFILE SARAH WILSON

Networking is a big part of

Wilson’s success. Along with
APIA she was also a member
of BNI – the contacts she made
helped her get ahead.

Wilson prefers to use property
managers and plans to continue
with this strategy.
They wanted to stick with their
tried-and-true strategy and settled on
a third property that fitted their criteria
– five bedrooms with a large section in
Manurewa, for $340,000.
Meanwhile, Aaron’s career had really
taken off, and the couple moved to the
Philippines in 2015. Wilson didn’t have
permission to work there, so studied
theology instead; she is currently
working towards her master’s degree in
this discipline.
But the tyranny of distance didn’t
stop the couple from investing. Using a
property finder, the couple bought an
investment property in Mangere East in
2015 – five bedrooms, on a large section.
And a year later, from a distance, they
facilitated the reno of their Papatoetoe
property. “We went on to sell this
PROFILE SARAH WILSON
‘Networking has
been a large part
of her success’
property to the tenants, in December
2021. It is their first house and they used
KiwiSaver to purchase,” she says.
RENOVATION PLAN
The couple returned home in 2018; and
the first job was to renovate the family
home in Mt Eden.
Further renovations were made last
year; this time it was the Mangere East
home purchased in 2015. “This resulted
in a rental increase – from $650 to $800
per week.”
And there has been another project
in the works – the development of
their first investment property in
Mangere East.
The two original dwellings have been
demolished, civil works undertaken, and
five townhouses are currently being
built. They aren’t interested in selling
the townhouses; instead, they will add
them to their portfolio of buy and hold
Auckland rentals.
Wilson has always used property
managers and will continue to do so. Her
strength lies in her instinct for properties
that will generate great cash flow and
provide homes for families.
While her commitment to education
and networking skill have stood her
in good stead, she says she’s not
without regrets. “I wish I’d bought
more properties earlier on,” she says.
While she understands why people are
cautious, she feels that educated risk is a
better choice than inaction due to fear of
the unknown.
“You don’t know how things are going
to turn out,” she says.
“I think it’s good to be educated in
terms of property investment, have
a good team of people that you’re in
contact with, but [realise you will need
to make] the best decisions based on
the imperfect information.” Q
NZ PROPERTY INVESTOR 21
WHAT’S IN STORE
THIS YEAR
A new government has taken the reins, the property
market is in a holding pattern and mortgage interest
rates are set to remain high for longer, so what does
that mean for investors this year?
Sally Lindsay has spoken to six experts for their
views on the next 12 months.

22 NZ PROPERTY INVESTOR
 FEATURE THE YEAR AHEAD
It’s difficult to predict the future
effects of climate change for the
Pacific Islands but there’s no
doubt it will increase population
numbers in NZ.
SUE HARRISON
PRESIDENT NEW ZEALAND
PROPERTY INVESTORS’
FEDERATION
While the signs are good for a better
housing market this year, it will still be
difficult for investors because interest
rates will remain high and possibly
increase into next year. House prices will
also rise.
One of the biggest house price
boosters is immigration. People have
to live somewhere and when there is a
restricted supply of rentals, demand and
rents go up ... and house prices increase.
It’s the inevitable outcome of housing
supply dropping.
What is really being underestimated is
what effect the impact of climate change
will have on housing and what, as a
country, we are doing about it.
No-one has got a grip on the number
of people who will have to leave Pacific
Islands for other countries, such as New
Zealand, when rising sea levels make
their homes and country uninhabitable.
It’s already happening.
What is this going to do to housing
demand in NZ and how long can the
country stop the immigration of people
who can’t live on their island homes?
The future of the housing market
is undoubtedly going to be climate
influenced. People are moving around,
making choices about where in the
future it’s wise to own homes and
investment grade properties. NZ needs
to be well placed for what is coming
in terms of climate change and it’s a
major issue no-one is really confronting
apart from insurance companies and
some councils.
Insurance companies have already
signalled they are not going to insure
many coastal properties or those on
floodplains in the future.
The price of insurance will massively
influence where people have investment
properties and by and large they are
not going to be those where insurance
premiums are high and rising, which is a
good thing as rentals need to be in the
safest places possible.
NZPIF would be keen to be part of a
working group or “think tank” with the
government to unpack how the country
is going to house people in the future
– what is going to make a difference to
increase housing supply, what does have
an effect and how is that managed?
The country needs solutions to these
problems and quickly.
 ‘Dropping job
security is likely
to make would-be
first home buyers
more nervous’
SHARON ZOLLNER

nervous about taking the plunge.

Although the coalition government is
reinstating tax deductibility for property
investors, the conditions need to be
right for more investors to come into the
market. If the numbers work a private/
public partnership could be considered to
investigate options for increasing housing.
If the drivers are right more landlords
will buy and the federation has the
courses and information to upskill them.
With a new government in place,
landlords are feeling slightly more
optimistic than they have for a while.
Over the past three years landlords have
felt marginalised and put upon. Many are
baby boomers and looking at available
options to provide money for their
retirement, unless they are being forced
to sell because of the tax imposition.
The changes that will be made will
set the market in the right direction
to provide renters with more options,
and the more the government involves
stakeholders in coming up with solutions
to the rental shortage, the better.
is that house prices rise less than we
expect next year, given recent modest
further lifts in mortgage rates and the
somewhat faster than expected labour
market loosening.
Faster than anticipated restoration
of mortgage interest deductibility
and other landlord-friendly policy
changes agreed to by the new coalition
government are risks in the other
direction, though difficult to quantify.
New labour market data shows
unemployment rising as tighter
monetary policy cools demand.
Dropping job security is likely to make
would-be first home buyers more
But there’s also a feedback loop
here. Sharply rising unemployment can
negatively influence credit availability,
making the outlook all the more
uncertain for credit providers.
And we don’t expect much relief
for mortgage holders next year. While
mortgage rates have probably peaked,
the Reserve Bank in its recent Monetary
Policy Statement kept the OCR at 5.5
per cent and indicated there wouldn’t
be cuts until 2025. It blamed rising
mortgage rates on record immigration.
The weaker than expected labour
market is one of several reasons we
changed our official cash rate (OCR)
call and no longer expect the RBNZ to
increase the OCR next year, but neither
cut rates.
Consistent with our OCR forecast
change, we have changed our forecasts
for the wholesale rates that underpin
mortgage rates, expecting them to peak
at a lower level, but remain high for longer.
While a lower peak is good news,
later cuts (all else equal) are likely to
keep the housing market somewhat

SHARON ZOLLNER
ANZ CHIEF ECONOMIST
Nationally, house prices are still a long
way below their peak and ANZ is
forecasting it will take years to get back
to those levels.
It’s not just house prices that are on
the weaker side – indicators for sales
and new listings show there is further
softness to come.
New listings are just above 2022
levels. This lift is on top of an already
large stock of inventories, which
needs to decline before meaningful
rises in house prices are likely. The risk

24 NZ PROPERTY INVESTOR

The cost of living and inflation
are still impacting what house
buyers can afford.
sluggish into 2025 by constraining
prospective first home buyers’ and
investors’ borrowing power.
That said, financial markets make up
their own minds about what they think is
going to happen, and to the extent they
anticipate sharp or imminent cuts, that
could put downward pressure on fixed
mortgage rates for a time – whether the
RBNZ actually delivers or not.
Most mortgage holders have refixing
coming up in the next year. If market
expectations for cuts strengthen from
here, wholesale rates and therefore retail
mortgage rates may be lower when that
date comes.
But if the inflation news turns worse
again and market expectations evolve
to price later cuts or even a chance
of more hikes, wholesale rates could
increase. Mortgage rates depend not
only on wholesale rates but also global
funding costs.
Whatever happens, many of these
homeowners will be rolling onto a much
higher rate.
KELVIN DAVIDSON
CORELOGIC CHIEF PROPERTY
ECONOMIST
Some investors, as we start off the year,
will be feeling a bit happier on the back
of signalled government changes to tax
deductibility. It will mean a bit more of a
positive vibe.
While tax deductibility is coming
back, 100 per cent doesn’t kick in for a
FEATURE THE YEAR AHEAD
couple of years. So even though these
rule changes might add to the mood,
when an investor actually sits down and
looks at the sums, they are still going to
have low yields and high mortgage rates.
Even with smaller tax bills, the high
interest rates mean there will still be
significant top-ups for many mortgaged
investors. The two key things (interest
rates and low yields) aren’t changing.
We might see some investors come
back in terms of purchasing, but it won’t
be a flood. When the rubber really hits the
road in terms of doing the sums it’s still
going to look a little bit tricky for most.
There’s a bigger picture too.
Affordability is a big issue for the housing
market, especially when higher for longer
mortgage rates are factored in.
The popular one and two-year
fixed terms are probably going to stay
pretty high. Although Westpac pushed
through some falls on longer-term three
to five-year fixed rates, hardly anyone
fixes for that long. In those really key
shorter-term rates, it’s still a story higher
for longer, so that’s going to keep some
pressure on.
Debt-to-income ratios are still likely in
the second half of next year in terms of
capping the size of loans in relation
to people’s incomes. That will be a
restraint on the market, but it might
not necessarily kick in straight away
because interest rates are doing the job
at the moment.
What it all amounts to is a pretty
cautious outlook. The emerging upturn
in sales volumes and house prices
will continue.
However, sales volumes are starting
from a low level, so even 10 per cent
growth would still leave them low. And
house prices might tick up 5 per
cent, maybe a bit more, but it’s nothing
like the sort of speed of upturns of the
past. There is positivity, but still a lot
of restraints.
Over the past three-and-a-half years
what we’ve really seen is the key role
of credit – the cost of credit and
the availability.
After the pandemic mortgage rates
collapsed and house prices surged. Then
the correction kicked in – mortgage
rates soared higher and house prices fell.
It shows the key role credit plays over
shorter horizons, especially for investors
trying to get mortgages now. It’s
expensive and, at the same time, rental
yields on property are quite mean.
It’s partly to do with the Reserve
Bank. Mortgage rates and the OCR
play a role, but other things matter,
such as loan-to-value ratios, the Credit
Contracts and Consumers Finance
Act (CCCFA), psychology and banks’
mortgage serviceability rates. Until
mortgage rates start to fall and people
expect them to fall, the housing market
will stay restricted.
The best guidance at this point is
that mortgage rates won’t really fall
significantly for a year or so at least.
NZ PROPERTY INVESTOR 25
FEATURE THE YEAR AHEAD
JEN BAIRD
REINZ CHIEF EXECUTIVE
What we are seeing and hearing is a
level of confidence from members.
Agents across the country are seeing
more activity – buyers and sellers feeling
more positive about what the market
is looking like post-election, although it
hasn’t shown up in the numbers yet.
Fundamentally the property market
is driven by interest rates, and the OCR
staying at 5.5 per cent just adds a level
of certainty.
The RBNZ has been clear about its
expectations, and this certainly helps.
People know what they’re dealing
26 NZ PROPERTY INVESTOR
with – a cash rate that will stay high for
a long period – and that impacts the
property market.
Inflation and the cost of living are
still big questions for people. And while
house prices might have come down,
the actual affordability equation has
changed again, and not in favour of
house buyers which, of course, is
the point.
It always comes down to finance and
that is expensive. Buyers are having to
carefully weigh up how much they have,
how much they can afford to pay, can
they do it now, and does it make sense?
That said, we are in the warmer
months, which are busier in real estate,
irrespective of market conditions. We
have seen sales prices levelling out and
the general sense in the market is that
the low point in this cycle is behind us.
Agents are handling more listings,
so more people are making the active
decision to sell. More people are at open
homes, there are more multi-offers on
properties, and more homes are being
sold at auction.
There is a sentiment element to this.
People are feeling more confident and
actually thinking maybe now is the time
to have a look around and see what’s
happening. Some of that is moving into
sales, but we know there is a certain level
of activity that happens in the market
anyway – from downsizing, retirement,
and moving for a new job.
Those people are in the market,
irrespective of conditions. Life happens
and a property transaction happens
because of that. People are not waiting
around for the market to be perfect.
An interesting point is vendors are
not selling before buying. A couple of
years ago things were moving so quickly
buyers would need to sell and have
that money available to buy
unconditionally at auction, and even
if it was not being auctioned the
property would sell quickly.
Now buyers can make a conditional
offer that includes selling their house as
we are in an environment where they
have a little bit more power and more
ability to call the shots.
The market feels more balanced than
it has been for some time.
TONY ALEXANDER
INDEPENDENT ECONOMIST
Immigration will have a significant
impact on the housing market this year.
I’ve been talking about this for quite
some time in the context of initially the
upward pressure on rents, which the
Reserve Bank mentioned several times in
in its last Monetary Policy Statement.
Over time immigration acts as an
incentive for young people to move
out of tenancies and into owning their
own property. We are not talking
about migrants buying properties, but
it becomes more expensive for other
people to rent, and the lack of rental
property is an increasing problem, so
more first home buyers are looking to
make a purchase.
But the key thing is going to be when
people start more deeply debating
the migration surge, particularly when
they realise what it means for housing
pressures. I don’t think we’re there yet,
but in Australia they are in the middle of
a big debate about housing pressures
from record net migration inflows.
When that debate comes to NZ at
some point in 2024, it will act as quite
a motivator for investors to re-enter
the market.
However, they will not come back
into the market in great numbers next
year – not until interest rates start falling.
Looking at my latest survey of real estate
agents there is no evidence of a frenzy
and no evidence of investors going back
wholesale into the market.
They are re-entering, but there’s
definitely no fear of missing out (FOMO).
Much of the reluctance is simply because
interest rates are too high in combination
with rising costs for insurance, council
rates and maintenance.
As far as falling house building goes,
changes the coalition government is
proposing (repealing the Resource
Management Act and providing some
undefined financial incentive for councils
to accelerate construction) are not
really going to make a great difference
to the market.
These are things that may have an
impact over a 10 to 20-year period, but
in the immediate future it’s not going to
offset still falling house production.
And, of course, the opposite is the
incentive for investors to buy with the
return of interest expense deductibility
far earlier than expected. And even
though it’s only 80 per cent deductibility
starting from April 1, for many people
80 per cent is as good as 100 per cent.
Frankly, waiting an extra year for the
Rents have been rising
8-10 per cent per year.
extra 20 per cent is pretty meaningless.
I expect house prices to rise 10
per cent next year. There is definitely
more confidence coming in terms of
expectations, but what I also find is a lot
of people have decided, OK, we’ve had
an election, the world is not so good,
Christmas is coming, let’s go sit on the
sidelines and come back in late January
or February. Rather than feeling that
they immediately need to move, buyers
are looking to go on holiday for a couple
of months.
DAVID FAULKNER
PROPERTY BROKERS PROPERTY
MANAGEMENT GENERAL MANAGER
With property management
regulations pending, more rentals will
be professionally managed by fewer
companies.
Costs and the pressure of regulations
on smaller companies will mean the
industry is dominated by bigger
companies. We are starting to see this
already. Several smaller companies are
starting to sell up and bigger companies
will take them over.
That doesn’t mean boutique property
management will disappear; it just
means there will be fewer of them.
The bigger companies will have more
resources in terms of training, with some
using external training providers.
Across the board, property
management knowledge has to improve
as managers are dealing not only with
the Residential Tenancies Act, but also
the Human Rights Act, the Privacy Act,
Consumer Guarantees Act, Building Act,
and Health and Safety Work Act.
People are starting to take property
management seriously as a career. Every
day is different, it can be stressful and
challenging, but it’s also rewarding and
has a creative purpose.
Automation will help property
managers. There are a lot of repetitive
tasks in property management that can
be automated, and it will enable them to
manage more comfortably.
For example, Property Brokers is
looking at rent arrears being automated
using software. A property manager is
still responsible, but the software does
the task rather than the manager.
Already, 360-degree inspections
for entry have been introduced. This
saves on average about 90 minutes of
a manager’s time and creates greater
transparency for a landlord.
With automation managers can start
handling more properties. The bigger
companies have an advantage when it
comes to the use of artificial intelligence
because they have more data, and with
that data they can make better decisions
and predictions.
For example, Property Brokers can
predict better how much money a
landlord is going to have to spend on a
particular type of property. That’s where
AI will come into play, but it still needs a
human to do the negotiating.
Rents have been on a steep rising
curve and increasing at 8-10 per cent
a year. It’s not sustainable for property
managers and landlords to keep
increasing them at those levels because
ultimately what dictates rent is what
people earn and what they can afford.
Big rent rises have occurred because
they have been steep in Auckland, which
makes up a third of the rental market,
and provincial NZ has been catching
up. In my opinion rent increases could
probably drop to about 4 per cent a year
over the next 12 months. Q
NZ PROPERTY INVESTOR 27
LANDLORD’S
BEST FRIEND
Mediation can provide both landlords and tenants with workable
solutions. Sarina Gibbon, general manager of Auckland Property
Investors Association, offers some tips.
mediation is the one that lets you have a
say in what an agreeable and enduring
resolution looks like. The alternative is
to leave everything in the hands of a
tribunal adjudicator. And I don’t need
to tell you how much of a gamble that
can be.
Don’t overplay the self-determination
aspect of mediation in your head. You
are not going to have your way just by
showing up. That said, there are some
techniques that will help you participate
effectively in a tenancy mediation and
influence the outcome. Here are some
simple ones that come to mind.
DON’T CRY OVER
SPOILED MILK,
BUT DO THROW IT OUT.
Try as media sensationalists might,
renting is far less Dickensian than they
would have you believe. There are hardly
any absolute victims or villains. For the
most part, landlords and tenants are
much the same. Everyone is doing their
some very complex
tenancy laws’
best to understand and navigate some
very complex tenancy laws. Most people
don’t arrive at a mediation with clean
gloves.
For genuine and inadvertent mistakes,
such as not providing a rent summary
on request, I suggest you fix them up
as best as you can, as soon as you can.
It’s less about doing the right thing (you
should) and more about being strategic
with your approach. Starting a mediation
with as clean a slate as possible saves
you precious time on knucklehead
stuff. Why bother when the ending is
merely a foregone conclusion? You are
better off spending most of the time on
contentious issues where you stand to
gain significant ground.
MAKE YOUR
COUNTERCLAIM.
Mediation is one of those rare moments
in life when it is appropriate, prudent
even, to air out your dirty laundry.
If you have legitimate grievances
against the tenant and find yourself
at the receiving end of a tribunal
application, file your counterclaim before
the scheduled mediation so that all the
outstanding issues can be addressed in
a single forum. There’s no point starting
on the back foot if you don’t have to. By
laying everything out at mediation, you
and your tenant can flesh out the best
way to resolve the dispute and move on.
If your (counter)claim involves rent
arrears, be sure to front up to the day
with an updated rent summary so
everyone knows precisely how much the
tenant owes.
KNOW THE
MEDIATOR’S ROLE
Cynics will have you believe that tenancy
NZ PROPERTY INVESTOR 29
FEATURE TENANCY
Mediators are problem solvers and can
help expedite fair outcomes for both
tenants and landlords.
mediators are ideologues powered by
a fervid desire to stick it to landlords.
That couldn’t be further from the truth.
Most landlords I’ve worked with have
come away from the process with the
view that mediators are problem-solvers
with a singular focus on expediting fair
and mutually agreeable outcomes. We
often think of tenancy mediators in
the context of mediation, but their role
is more pivotal and far-reaching than
that. They are also intermediaries in
subsequent negotiations between you
and your tenant if the mediation yields
no agreement.
Treat the moderator as an ally, not
an adversary. Defer to their expertise;
when it comes to tenancy, they know a
great deal about the law and where the
tribunal leans. Be a respectful participant
and do everything you can to help them
help you.
WANT VS NEED
Treat mediation not as a forum to
reaffirm your positions but rather as an
30 NZ PROPERTY INVESTOR
opportunity to further your interests.
What good is winning the battle if that
means losing the war?
Have two very specific outcomes in
mind: the best possible (what you want)
and the one you can live with (what you
need). Anything in between is a win.
These parameters will keep you
razor-focused on the big picture so you
don’t get carried away by the heat of
the moment. That steadiness of mind
will go a long way to help you negotiate
effectively with the tenant.
WATCH YOUR MOUTH
Chances are, relations are already
less than amicable. I don’t blame you.
It is hard to stay friends when legal
proceedings are involved. Conscious
uncoupling isn’t for everyone, and snark
can be oh-so-tempting. Find your inner
Michelle Obama; go high when the
tenant goes low.
Lower your voice, don’t interrupt the
tenant and wipe that scoff off your face.
Most importantly, sanitise your language.
The tenant isn’t lying; you just remember
things differently (bonus points if you
can provide documents that support
your narrative). “She is not crazy. Oh,
no. She just became highly distressed
after the floods. You did your best to do
what was right by her, but you couldn’t
do anything about insurance delays and
labour shortages. It is a shame that a
mediator has to get involved.”
Park the emotions at the door and
get your sardonic kick elsewhere. You
are not just there to negotiate with the
tenant. You are also signalling to the
mediator that yours is a worthy corner to
be on. And when it comes crunch time,
you want the mediator to go the extra
mile to get that deal you want across
the line.
GET THE ORDER SEALED
The agreement you make in mediation
will be recorded as a mediated order,
which is not legally binding unless it
is sealed.
Effectively, an unsealed order is a
gentleman’s handshake; there isn’t much
you can do if the tenant reneges on any
of the terms. Why run a marathon only
to drop out after 41kms? Always ask the
mediator to arrange for the order to
be sealed.
I often chuckle at the thought that,
as investors, we take great joy out
of negotiating for properties, but as
landlords, we shy away from tenancy
mediation when the two are much the
same. When you see mediation for what
it truly is: an opportunity to get your
rental business back on track, you will
come to appreciate how essential a skill
it is to have in your landlord toolkit. Q
 The myRent team

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DIY PROJECT CALEB AND ALICE PEARSON

TOP THREE WAYS

TO ADD VALUE
After renovating properties for the past 13 years,
Caleb and Alice Pearson, of Pearson + Projects,
have found three key areas to focus on.

BEFORE
 BEFORE AND AFTER
Improving the layout of
this kitchen opened up
the space. It’s now more
user-friendly with a
peaceful colour palette.

AFTER
DIY PROJECT CALEB AND ALICE PEARSON

BEFORE

ABOVE AND LEFT Open plan

is a popular choice for layout
improvements. Consider the flow
and likely furniture placement.

hen it comes to spending

W money on your property,

most homeowners
want confidence that
what they invest is adding value to
their property.
Whether you have a rental portfolio,
just moved into your own first home,
or are using your current property as
a stepping stone, investing in the right
locations can result in your property
being worth more than you invested.
If you are after the magic formula
for making a lot of money on your
property – sorry, it’s not that simple.
AFTER However, after renovating our own
properties for the past 13 years we have
refined the projects we take on to add
value. Here are three key areas we focus
on to guide our decisions on which
projects we prioritise.

IMPROVE THE LAYOUT

The default response to changing the
layout of a house is to make it open plan.
There is sound logic to this as the way
we live has shifted, and more people
enjoy living in connected environments
and better flow between rooms. But
there is more to layout than removing
walls in a house. Layout is about the flow
of the house, how each space connects
and how you want to live.
When reviewing the layout of your
house we focus on two key factors.
How we think the space will be best
lived in, and the likely placement of
furniture. While you can’t predict how

34 NZ PROPERTY INVESTOR
tenants will furnish a space, having a
vision for spaces means you are getting
the best outcome.
Take our renovation across as an
example. We removed the wall between
the kitchen and the living area. As we
planned the layout of the dining, kitchen
and lounge we thought about where
people would gravitate to, the walkways
through to the kitchen and deck, making
sure each space could still serve its
purpose within a shared setting.
The dining space design focused on
maximising the space in a functional
layout. The bench seat and shelving gave
the room a feature (and storage) but
pushed the dining table to be closer to
the wall, creating more room.
In another project we intentionally
didn’t remove the wall between the
kitchen and the lounge. In this smaller
two-bedroom unit (where the kitchen
BEFORE
also includes the laundry) the wall was
important. It created wall space in the
kitchen for storage and the stove, as well
AFTER
as a wall for the TV within the lounge.

UPDATE DESIGN
A refreshed look on the surfaces of your
home can really transform a property.
This could be a large-scale project, cost
effective or cosmetic, or a range of many
shades between.
There are several simple, cost-
effective projects you can do to update
the design of your house and make it
more appealing. We have been big users
of painting and wallpaper as they are
affordable projects that you can DIY and
have a big impact.
Other easy and cosmetic ideas
include changing light fittings, spray
painting your kitchen handles or door
handles, adding open shelves in your
ABOVE Select the right colour scheme to really improve your space.
laundry or finding a new mirror for your
BELOW A quick update can be as simple as replacing handles and a repaint.

BEFORE AFTER
DIY PROJECT CALEB AND ALICE PEARSON

BEFORE AFTER

ABOVE AND RIGHT A pendant light,

added shelving, a feature wall and
replacement fireplace gave this room a
designer feel.
BELOW This entrance hallway creates
the perfect welcome with its lighter and
brighter upgrade. If interior design’s not
for you a professional can help.
OPPOSITE PAGE Don’t forget your first
impressions: ensure your roof’s in good
condition, your gutters are clean and
maintained and the lawn and garden
are tidy.

BEFORE AFTER bathroom. In the kitchen above we gave

it a mini makeover on a small budget by
simply modernising the colour scheme
with paint, adding extra storage/
bench space, replacing the handles and
installing new feature lighting.
But a new coat of paint doesn’t
always result in adding value. It’s about
sourcing the right products, selecting
the right colour scheme, and enhancing
the room’s features.
In the above renovation we
transformed our space by adding new
drapes, a new pendant, restoring the
wooden floors, giving it a new colour
scheme, adding shelving and giving
the fireplace a designer look. If interior
design isn’t something you are
confident in, it is well worth getting a
professional’s advice.

36 NZ PROPERTY INVESTOR
 BEFORE
AFTER
FIRST IMPRESSIONS
First impressions last and this is true
when it comes to a house. The exterior
of your property plays a significant
part in the value of the house and can
cause headaches if not looked after.
There are many factors to consider here,
but maintenance is important for the
integrity of your home as well as making
it look appealing.
It’s important to ensure your roof
is in good condition, to clean or repair
your gutters and maintain your lawn or
gardens. Giving your house a water blast
is a great way of checking up on the
condition of the paint and getting rid of
moss or mould.
And we rarely miss an opportunity to
create an outdoor living space and add
landscaping elements. We find this to be
a great return on investment and adds to
a property and its appeal.
If you are planning to spend money
on your property, take time to make
a plan, think about these elements in
relation to your property, and where
you can make the biggest difference for
your investment. Q
NZ PROPERTY INVESTOR 37
RENOVATION

Our indoor spaces will

become even more of a
sanctuary in which to escape
the hustle and relax.

NEW YEAR,
NEW LOOK
Mary-anne Tobin, of Design
Addiction, gives her insight
into 2024 interiors, a year of
refresh and reset.

38 NZ PROPERTY INVESTOR
 e are going to see

W continued emphasis
in our home spaces to
create an invitation to
escape from our daily hustle and provide
a sanctuary to recover and reset. I think
we can all agree we deserve some much-
needed rest. With rising interest costs
and Covid fatigue overhanging, 2023 has
been a challenging year for many Kiwis.
Purchases of larger furniture
items may be reduced, and educated
consumers will focus more on styling
their homes or renovating existing
properties. Airbnb listings will increase
as an appealing method to source
additional revenue. Reduced travel
budgets will evoke a desire to renew our
existing home interiors in resourceful
and inviting ways.

NZ PROPERTY INVESTOR 39
40 NZ PROPERTY INVESTOR

LEFT Soft neutrals will continue to
be popular.
ABOVE A nature focus with
reclaimed woods and sand hues.
FLORAL STATEMENTS
The outdoors will be brought back
indoors; floral designs will be making
statements. Green tones will align with
the floral prints, but with more muted
tones such as olive and sage. The
psychological impacts of using green are
also positive as it represents harmony
and health, so it is a very restful hue.
Blue hues are also calming and
productive, which can aid in reducing
stress and helping relaxation. With more
focus on nature this brings warmth and
texture into spaces – reclaimed woods,
paired with golden and sand hues,
creating tonal spaces working together
beautifully as a colour palette. Deep
TKHEHWWHUZD\WRĆQGDWUDGHVSHUVRQ
Post your job at bc.nz
‘Educated
consumers will
focus more on
styling their homes
or renovating
existing properties’
earthy browns will ground our spaces.
Grey is out, brown is in, nature is here to
stay next year.
Natural fibre products such as
sheepskin, merino and Tibetan will be
used as layering with throws, exuding
warmth into our living areas. Dried floral
arrangements, branches and organic
sculptures will be seen more to style
properties. Heavier curtain fabrics
RENOVATION
will become more prominent, reminding
us of the stability our homes comfort
us with.
For the modern interior soft neutrals
will continue to be popular, underplayed
earthy neutrals, caramels, burnt orange
and muted green tones. Textured walls,
such as Venetian plaster, and lime
finishes for a marble/limestone aesthetic
will elevate our homes further.
MOODY HUES
While there will always be appeal for
bold, vibrant colours, we will see more
of a moody energy with darker interiors,
leather, and more detailing. The Lexus
SUV in Nori Green is a good example of
this deep moody green.
What’s your colour crush for 2024?
Resene Summer Rose – a muted
terracotta beige, faded with antiquity.
NZ PROPERTY INVESTOR 41
RENOVATION

ABOVE Following overseas trends black could be seen more again.

BELOW Flower arrangements and prints add to the nature theme.
Resene Double Duck Egg – a complex
muted green, grey, and blue. Resene
Baring Head – a moody and stormy grey
green blue. Resene Times Square – a
nearly black neutral.
In terms of upholstery and wallpaper
I see some exploration in design. The
Canvas by Mokum fabric range from
James Dunlop is stunning for a teen
room. We could see more softer hues
such as Resene Summer Rose or
Double Duck Egg Blue in nurseries.
Resene Contented is also a gentle and
warm option for these areas. Miss Lolo
has recently announced a 2024 floral
wallpaper range, and a collaboration
with Incy Interiors for a new children’s/
tween wallpaper range, which is exciting
to see.

BLACK MAY BE BACK

New Zealand is typically slower to take
on international trends, and we could
see some soft black features entering
the decor scene. With celebrities such
as Kylie Jenner launching her new

42 NZ PROPERTY INVESTOR
 black faux leather fashion line Khy, and
Renowned international interior designer
Kelly Wearstler is also seen in black more
frequently, you could see these fashion
statements enter home interiors.
By incorporating black into an
interior, it helps to anchor and ground
a space. Using subtle features and
accessories such as leather detailing
surrounding a mirror, black light fittings
or sconces, or something simple like a
black picture frame, decorative cushion
or black marble book ends.
Working from home offices and
hybrid working options will continue
to develop. We will continue to
create a harmonious home and
work environment. Design is three
dimensional; more emphasis will be
TKHEHWWHUZD\WRĆQGDWUDGHVSHUVRQ
Post your job at bc.nz
taken on the design and conceptual
planning, from walls to ceilings, to
floors and property styling. We won’t
2 The mid-brown sheepskin
collection and Margot chair from
Hawthorne Collections.
be taking risks next year; it will be more
educated methodical design planning. 3 Frank and Earnest Ceramics also
make the most delightful and
affordable unique handmade glazed
FAVOURITE FIVE mugs right here in Hamilton.
When times get tough financially, we
support our local artists and small
businesses. A more serene and tailored
4 Artists such as Author Ceramics
express creativity with curved
and organic ranges, made with clay and
identity for home will be important sand from our NZ shores – the Rosa and
in 2024. We will see more handmade Marlow pieces are a beautiful addition to
pottery with organic shapes and textures any home.
and continue to educate ourselves on
environmental awareness with a focus on
sourcing sustainable products.
5 The Canvas by Mokum fabric
range from James Dunlop is
stunning. Q
1 Ned Collections has released a
hand-crafted gorgeous bluff bowl
due to be released March 2024.
Head to www.designaddiction.co.nz to
see our services
NZ PROPERTY INVESTOR 43
UNLOCK THE VALUE
OF YOUR LAND
hen Chris and Andrea’s

W
Unlocking the value of your land could be easier children left home, they
than you think as one couple recently discovered. discovered subdividing
their section and building
a second home was an ideal way to
unlock the value of their land and get
what they wanted in a new home.
“When the kids left home, we decided
we should do something with our
extra land. We got a real estate agent,
weighed up our options, and decided it
was by far best to build a second home
on the site rather than sell the section,”
they said.
“It had to be a nice house, that would
complement our old home to keep
the value of both of them. GJ’s helped
us with all our boundaries, plans and
daylight angles, and dealt with all of the
contractors and services.
“It was a complex job made simple
with GJ’s. In the end it’s going to be a
really good investment. We’ve got two
really nice homes.”

44 NZ PROPERTY INVESTOR
 NEW BUILDS SPONSORED BY GJ GARDNER HOMES

BUSY LIFESTYLES
Many older homes in New Zealand were
built on large sites, and the houses were
often positioned at one end or corner of the
section to create a big outdoor space with
a huge lawn and gardens. But with today’s
busy lifestyles there comes a time when
mowing lawns and trimming hedges gets in
the way of doing the things you enjoy most.
Subdividing your existing section and
building a new home gives you a range of
options. You could:
• Sell the section, pay off your mortgage
• Live in one house, sell the other
• Live in one house, rent the other
• Sell them both
• Rent them both and go travelling.

If your home is on a large section, there’s

a good chance you could build a second
home on the same site or relocate your old
house and build several new ones.
Click on the QR code to hear
more about Chris and Andrea’s
journey here. And if you think
this might be the option for you,
call GJ’s to discuss your options.

GJ Gardner Homes is proud to be New Zealand’s Most Trusted Home Builder having built
almost 23,000 homes throughout NZ, with every home completed.
To discover for yourself why more New Zealanders trust GJ Gardner to build their
homes year after year than any other builder visit gjgardner.co.nz.

NZ PROPERTY INVESTOR 45
TWO-BED TOWNHOUSES
A POPULAR CHOICE
One of the most common investment properties remains a new two-bedroom
townhouse, but investors still need to do the numbers to ensure a good return,
writes Andrew Nicol.

wo-bedroomed townhouses

T are one of the most common

investment properties.
But, with so many new builds on
the market, how do you figure out if one
is a good investment or not?
IS SELWYN STREET A GOOD INVESTMENT?
PROPERTY DETAILS

SELWYN STREET DICKENS STREET COLOMBO

STREET
Here’s a case study of a development Suburb Addington Addington Sydenham
I recently recommended to investors Price $585,000 $629,000 $620,000
in Christchurch. Developer XXXXXXXXX XXXXXXXXX XXXXXXXXX
Bedrooms 2 2 2
WHAT’S THE PROPERTY?
Bathrooms 2 1 1
This development is at 377 Selwyn
Street. It’s a project of eight, two- Car parking 1 1 1
bedroomed townhouses in Addington, Floor area 73m2 n/a 80m2
Christchurch. The rental assessment
says it will likely fetch between
$520-$540 a week.
The developer is Four Avenues, a
company started by three brothers in tell you whether it’s a good investment within a few kilometres of each other.
2019 – Jack, George and Rob. They or not. Instead, you need to look at the Selwyn Street is at least $44,000
come from the Clifford family, an following three factors. cheaper than other comparable
established family in Christchurch who properties in the area. These three
accumulated an expansive portfolio of THE PRICE properties are all within a few kilometres
land over the years. The brothers are The most crucial factor when looking for of each other.
now developing townhouses on this new builds is price. It needs to be a good The Colombo Street property is
land. deal compared to other properties on $35,000 more expensive than Selwyn
But don’t spend too much time the market. This table compares Selwyn Street. It has a larger floor area but has
looking at the pretty visuals. They won’t Street with similar developments, all one less bathroom.

46 NZ PROPERTY INVESTOR
 NEW BUILDS SPONSORED BY OPES PARTNERS
A GOOD INVESTMENT?
There are two main numbers you need
to know when you invest in a property:
• cash flow (the amount of money
you need to top up the property
per week)
• return on investment (for every
$1 invested in a property, how much
do I get back?)
Let’s take a look at how Selwyn Street
measures up.
CASH FLOW
The primary way you make money
through a new build is by holding the
property over the long term.
The value goes up as the market
appreciates, but you can’t get those
gains unless you can afford to hold on to
the property. And like most properties
bought in 2023, the rent doesn’t cover all
expenses. That means the investor needs
to cover the shortfall. Investors call this
a “top-up”. It’s also known as negative
gearing in property circles.
By my forecasts, the investor will
need to top up Selwyn by $139 a week
in the first year, and continue to top-up
for eight years (although the amount will
come down as interest rates gradually
decline and rents continue to rise).
ROI FIGURES
Selwyn Street has a return on investment
of 266 per cent.
This means for every dollar you invest,
you’ll get $2.66 back (as well as your
initial investment).
For every dollar you put into Colombo
Street you get $2.28 back; Dickens
Street you get $2.45 back. So, from this
financial modelling, you’d say, “Selwyn
Street is the better investment.”
HOW DOES THE
PROPERTY COMPARE
TO OTHERS?
Addington is in the top 15 per cent
of suburbs for gross yields. And on
average, house prices in Addington
have increased 6.50 per cent per year
(Jan 00 - Sep 23).
Property prices in this area tend to be
more affordable, because they are 27.89
per cent lower than the average house
price in Christchurch.
Selwyn Street is expected to achieve
a gross yield of 4.75 to 4.83 per cent,
depending on the size of the property,
and the number of bathrooms. This is
higher than the Christchurch median of
4.06 per cent.
This rental range is very likely to be
achieved. Over the last six months, 630
different two-bedroom properties were
rented within the suburb. That makes up
37.5 per cent of all properties that found
a new tenant in Addington over that
time frame.
This shows that there is demand for
two-bedroom properties within the area.
HOW DO I BUY
A NEW BUILD?
If you’re looking to invest in a new build
property like this, there are two ways to
get one:
1. You can use the information to find
a property yourself through a
developer.
2. You can work with a property
investment company. These
businesses build you a financial plan
and then find new build properties
that fit that plan.
Opes Partners is one example of a
property investment company, although
there are others. Property investment
companies often don’t charge you a fee.
Instead, they get paid by the developer.
It’s a bit like mortgage brokers, who
usually get paid by the bank.
For my complete analysis on this
property, go to opespartners.co.nz/
selwyn Q
Through Opes Partners, Andrew Nicol
works with 97 developers from around
the country. He and his team of financial
advisers build Kiwi property investors
a financial plan and match these
investors with new build properties
that fit the plan.
NZ PROPERTY INVESTOR 47
YOUR DEVELOPER

THE IMPORTANCE OF
SOUNDPROOFING
As Kiwis find themselves living in closer proximity to
their neighbours, the need for effective soundproofing in
residential construction becomes key, writes Anthony Corin.

hings are rapidly changing the concrete cures, but with ICF these

T on the housing front in

New Zealand with higher
intensification of residential
developments across larger cities to
accommodate our quickly growing
population.
In particular this will become more
apparent as planning rules are set to
be revisited allowing greater housing
intensification with less restriction.
Apartments and townhouses are
popping up all over the place, with
property developers aiming to make
the most of the space under land
use rules.
While these developments help grow
and support communities, they also
raise new concern from a structural
standpoint; noise transmission between
shared walls. As New Zealanders find
themselves living in closer proximity to
their neighbours, the need for effective
soundproofing in residential construction
becomes very important to ensure
residents’ comfort and privacy.
SOUND TRANSMISSION
When it comes to measuring how
effective a material is at blocking
sound out, we use a tool called Sound
Transmission Class (STC) rating.
The higher the rating, the better
soundproofing capabilities the material
has. The scale measures from 25 to
65: 25 shows no soundproofing and
casual talking can be heard and
‘The way ICF
works with noise
control makes it
an ideal solution’
65 is completely soundproofed.
When we look at construction
systems, they vary in their soundproofing
performance. Take a timber-frame build
for example. It will usually sit around
30-40 on the STC scale, but if you
go for an option that uses denser
materials such as insulated concrete
formwork (ICF) you are looking at
a considerably higher STC rating
reaching 55+. This large difference
highlights the importance of considering
soundproofing capability of a
construction system.
STANDOUT CHOICE
When evaluating construction solutions
for effective noise reduction, ICF
emerges as a standout choice due to
its remarkable soundproofing qualities
and insulation. With the previously
mentioned high STC rating of 55+ it
means that even shouting would not be
heard from the other side of the wall.
ICF forms a solid barrier made of
two layers of insulating foam filled with
reinforced concrete. In a typical concrete
build the formwork is removed after
insulated forms are left in place. As
sound waves attempt to pass through
the wall, they encounter the insulated
foam and dense concrete mass which
effectively absorbs and dissipates this
energy, preventing it from travelling
through to the other side.
The way ICF works with noise
control makes it an ideal solution
for shared walls in settings such as
townhouses or apartment buildings,
ensuring enhanced acoustic comfort is
achieved. Additionally, the impressive
soundproofing standard of ICF makes it
a sought-after material for professional
recording studios. This is well utilised
in professional spaces, and we can also
translate this to residential developments.
In today’s changing landscape of
residential construction, making sure
our homes are quiet and cosy matters
more than ever. Opting for higher
quality solutions like ICF is a strategic
choice for developers. ICF is a great
choice for soundproofing purposes,
and also performs well across the board
in terms of durability, maintenance,
fireproofing, thermal performance, and
more. This all helps to create modern
living spaces.
For a developer it’s not only about
maximising space, it’s about keeping
residents comfortable with their privacy
and increasing the quality of their
living by building with innovative
construction techniques. Q

Anthony Corin and his team specialise in property development and construction using ICFs and operating through a relational
contract, open-book system. Shorcom Ltd, 0800 SHORCOM, www.shorcom.co.nz

48 NZ PROPERTY INVESTOR
YOUR ACCOUNTANT

TAX, PROPERTY AND

RELATIONSHIP SPLITS
Lawyers need to be mindful of potential tax
liabilities when advising on the fairness of
separation agreements, writes Mark Withers.

any investors will have a a trust can constitute a nuptial settlement concessions from the specific land taxing

M sense of the matrimonial

property rules that can give
a spouse or partner a claim
for 50 per cent of relationship property
assets after a relationship that has run
and establishing a trust while already in
a relationship will likely not offer much
protection in the event of separation.

‘CONTRACTING OUT’
provisions in the Income Tax Act.

for only three years.
This issue is often forefront in parents’
minds when they seek to assist children
into property.
The potential for money provided
to a child being halved because of a
relationship split down the line has
many worried about the best way to
provide this assistance and what the tax
consequences of navigating relationship
property rules might be.
Many people are under the common
misconception that the three-year period
that must elapse before a partner has
a claim begins from the point the couple
start living together in a traditional
de facto arrangement, i.e. under the
same roof.
The matter is not that clear-cut,
though. The three-year period begins
from when the relationship became “akin
to a marriage”. This does not necessarily
begin when you move in together under
the same roof.
Lawyers suggest the better
determinate of the start point is when
your friends and family begin to consider
you to be in a relationship with someone
who has become your “partner”
regardless of whether you are living
together. But even then, this leaves room
for interpretation and ambiguity.
In recent years, the protections that a
trust affords you from relationship claims
has begun to be eroded by the courts.
Adding a new partner as a beneficiary to
The best protection is entering a formal
relationship agreement where part 6
of the agreement under the Property
Relationship Act provides for couples
“contracting out” of the act.
Part 6 deals with the right to decide
how property is to be divided in the
event of separation.
These agreements can specify what
happens to assets during the lives of the
parties, on the death of one partner, and
in the event of separation.
These agreements are void unless
certain requirements are met, so they
are best left to lawyers to draft so they
are formal and binding. One of the main
requirements to be binding is that both
parties must have taken independent legal
advice before signing.
I have seen many situations where that
legal advice to one party is “don’t sign”.
This then forces a negotiation over the
terms, and concessions may be needed
by the wealthier party before agreement
can be reached.
With respect to taxation, Subpart
FB of the Income Tax Act provides the
general rule with regards to the division
of relationship property. This section
provides general rollover relief to property
transferred pursuant to a relationship
agreement.
There are also sections FB3A and FB4
that deal specifically with land.
These sections provide rollover relief
from bright-line and certain rollover relief
TAXING EVENT
The general rule is that the transferee is
deemed to have acquired the land at the
transferor’s cost and at the transferor’s
date of acquisition, which generally
means the transfer of property subject
to a relationship agreement does not
trigger a taxing event.
Care is needed with respect to future
plans. For example, let’s assume a wife
receives property that is tainted by her
ex-husband’s land dealing activity. No tax
will be triggered when these assets are
transferred to her under the separation
agreement but, if she subsequently sells
them within 10 years of his acquisition
date, she is liable for all the tax payable
based on her ex-husband’s cost price.
Lawyers need to be mindful of these
potential tax liabilities when advising on
the fairness of separation agreements.
For families making funds available
to children for house deposits, it must
be made clear whether the money is
provided as a gift or a loan. A loan can
be recalled in the event of a child’s
relationship ending, but a gift may well
have become joint relationship property.
It may also be appropriate to
encourage a child to formalise a
contracting out agreement before gifts or
trust distributions are made. The optimism
of youth often means these hard
conversations won’t happen unless some
pressure is exerted to encourage them.
As always, seek professional advice,
both legal and accounting, when
considering land transactions that can
have relationship property impacts. Q

Mark and his team specialise in advising on property-related transactions, valuation and restructure services, and tax planning.
PKF Withers Tsang & Co Phone 09 376 8860, www.pfkwt.co.nz

NZ PROPERTY INVESTOR 49
YOUR SHORT-TERM RENTAL

TIME TO TAKE
A GLOBAL VIEW
Within a short time online travel agents have dominated
nearly half the global travel market, with short-term rentals
serving as a core revenue driver, writes Eric Hammond.
ccording to Grand View Expedia falls under the Expedia staycations, the sudden surge of people

A Research, the short-term

rental market held an
estimated value of US$109.76
billion in 2022. The market’s expected
compound annual growth rate has been
projected at 11.2 per cent from 2023
to 2030. Key drivers for demand and
supply include healthy post-Covid travel
recovery and trends such as staycations.
While short-term renting has existed
for decades, it is still relatively new to
Kiwis. Property owners would not be
alone in assuming Airbnb was the only
notable platform, but this could not
be further from the truth. Airbnb does
hold one of the largest market shares
worldwide, but there are plenty of other
online travel agents that should be
considered when creating listings.
Booking Holdings is particularly
popular across European countries, with
Hospitality Europe reporting a market
share of 71.2 per cent in 2021. In 2022,
Holdings recorded US$121.3 billion in
gross travel bookings. The company’s
brands include booking.com and Agoda,
both travel specialists in short-term
rentals, with the latter primarily serving
the Asia-Pacific region. Roughly 89
per cent of the travel conglomerate’s
revenue comes from booking.com.
US AND THE WORLD
In the US, Apptopia’s most recent market
data on travel apps lists Booking.com
with a market share of 21.56 per cent and
Airbnb with 17.13 per cent. Worldwide,
Booking.com takes in just under 35 per
cent with Airbnb sitting at 22.90 per
cent. Expedia surpassed Airbnb in the
US with a share of 19.88 per cent, but
came in third worldwide.
Group’s network of brands, also home
to Vrbo. According to Peter Kern,
Vice-Chairman and CEO of the Expedia
Group, their third-quarter results in the
market for 2023 hit record figures for
revenue and profitability, reflecting “the
resilience of travel demand” in a post-
Covid world.
Despite market share breakdowns,
2023 data from Lighthouse suggests
that only one-third of vacation rentals
are listed across multiple OTAs
worldwide. Most inventory is exclusive
to Airbnb. For self-managed properties,
creating listings across every major
booking channel requires time and
technologies that owners often do
not have.
When you join a professional
management company, your property
will be pushed to every platform it
needs to be on to ensure your global
marketing reach is maximised. Of course,
some channels are exclusive to property
management companies, such as Homes
& Villas by Marriott International. This
platform caters to the luxury travel
market, with a global reach of over 157
million Marriott Bonvoy® members.
PREMIUM RATES
Unlike the likes of Airbnb, Homes &
Villas will only partner with property
management companies that uphold
their quality service standards. At
The Stay Hub, luxury properties can
command premium rates hitting up to
$5,000 per night, especially in peak
short-term rental season.
As we kickstart 2024, the past
year has seen a huge uptake in travel
and tourism expenditure. Alongside
using short-term rentals for work and
leisure has played a key role in demand.
Airbnb CEO Brian Chesky has said, “We
wouldn’t have recovered so quickly from
the pandemic had it not been for millions
of people working from Airbnbs.”
According to the platform’s latest
quarterly results, the company’s business
in Asia-Pacific has “fully recovered to
pre-pandemic levels”. Compared to Q3
2019, gross nights in the region grew
23 per cent in Q3 2023.
Across the New Zealand market,
Auckland has held a healthy rental
demand score of 95/100 on AirDNA for
the last quarter of 2023, while revenue
growth has sat between 92 and 95*.
According to the leading data platform,
other top-performing markets across the
country include Wellington, Queenstown
and Dunedin.
DEMAND CURVE
With pandemic restrictions now a thing
of the past, it has become clear that
demand for short-term rentals is not
slowing. This could perhaps, in part, be
attributed to the more intimate nature
of short-term renting, which avoids
the often-crowded hotel environment.
Expedia’s 2023 Travellers Index has
reported 35 per cent of travellers still
prioritise minimising Covid-19 exposure,
while 51 per cent state safety and
cleanliness is a top priority for travel.
The Stay Hub had a phenomenal year,
with bookings up 80 per cent as we end
2023. If you are interested in finding
out what you could earn in the industry,
reach out for a free appraisal. Q
*AirDNA data current as of
December, 2023

The Stay Hub offers a full range of Airbnb and short-term rental property management services, covering everything from
extensive global marketing to hands-on revenue management, guest vetting, cleaning after each stay, and plenty more. We have a
technological and data-led approach, with owner and guest experience at the heart of our operations. Visit www.thestayhub.co.nz.

50 NZ PROPERTY INVESTOR
PROPERTY INSIGHTS
TOP TIPS ON RENTAL
INSPECTIONS
Greg Watson shares his experience of visiting
thousands of homes.
ver my career I’ve been into
O thousands of homes and
filled out a huge number of
inspections. Throughout that
time there have been trends, lessons
learnt and some valuable tips I would
like to share with you. When conducting
inspections, I often feel like a “duck on
the water”. Tenants see me as happy,
polite, helpful and calm, much like the
serene surface of a duck gliding on
water. Meanwhile, beneath the surface,
my mind is like the duck’s feet, rapidly
processing what I consider the most
important aspects of the inspection.
In no order, I consider the following:
CARE FOR THE HOUSE
A general overall summary of the level of
care the tenants are taking. I note down
and photograph any damage caused
by the tenant. Some landlords wait to
sort out accumulated damage (using
the bond) at the end of a tenancy, but I
believe it’s a much better idea to address
issues at the time. This may include
a 14-day notice for tenants to rectify
damage and a subsequent follow-up
check. A proactive approach reinforces
acceptable behaviour, so hopefully the
tenants take more care going forward.
HOME HEALTH
The “health” of the home can affect
the value of your investment and the
health of your tenants. These are very
good reasons to be looking for evidence
of water damage, mould, dry rot and
rust. Spotting and dealing with problems
Greg Watson is an experienced property manager who excels in providing informed advice and continuously improving the property
management service. He is a recognised industry expert, winning national awards and contributing to industry standards.
Phone 06 353 7274, www.watsonrealestate.nz
‘The tenancy law
is on your side
when it comes to
several things you
may discover’
early should save money in the long run,
so make sure you have a close look. It
can feel uncomfortable to inspect closely
when the tenant is at home, but if you
explain why, it’s usually fine. For example,
I might say, “You will notice me looking
in the cupboards under the kitchen
sink; I am just looking for water-related
matters”. Likewise, it’s fine to look in
built-in wardrobes if you are looking for
damage such as signs of a leaky roof.
HAZARDS
Landlords have obligations under
the Health and Safety at Work Act
2015. Landlords are considered a “person
conducting a business or undertaking”
(PCBU). This means it’s important to
look for hazards at inspections and
take action required by law to mitigate,
reduce or remove them. Ideally, a
pre-inspection would have picked up
most hazards, but it is still important to
check regularly.
BREACHES
The tenancy law is on your side
when it comes to several things
you may discover during a routine
inspection. Anything from tenants
changing locks without permission,
more people living in the home than
the tenancy agreement allows, change
of tenants living in the home, and
evidence of pets when not allowed, are
breaches of tenancy law. Rather than just
accepting the situation, I believe it’s best
to either serve a 14-day notice to rectify
the breach or make a change to the
tenancy agreement signed by all parties.
If you have long-term tenants,
changing a tenancy agreement may
trigger the need for the house to comply
with Healthy Homes legislation, so get
advice before acting. Tenancy Services
have a helpful section on their website
which explains the type of changes that
will and won’t “trigger” this compliance.
CIVIL LAW
During an inspection it’s crucial to be
vigilant for violations of civil law, also
known as offences under the Crimes
Act 1961. I tend to look for evidence of
illicit drug use, cultivation or production
of prohibited substances and receipt of
stolen goods. The appropriate action to
take is to contact the police and obtain a
file number. This is crucial for compliance
with your insurance company. If you
know something bad is happening and
you fail to act, the insurance company is
less likely to pay out if things go wrong.
There’s lots to look out for at the
inspections and it’s always a good
idea to document everything well.
Good luck with the inspections, and
happy landlording. Q
NZ PROPERTY INVESTOR 51
YOUR REVIEW

MATES AND MORTGAGES

CAN WORK
Five friends in their early 20s worked together to buy
their first investment property ... and it turned out just
fine, writes Stevie Waring.

ochie didn’t have enough friends formed a company called Room They’ll go from there, but it will get to

L money to buy an investment

property by himself, but when
he and four friends banded
together to create a meaty deposit ...
they figured they’d go all out.
4, the number of the room three of the
friends once shared.

Here’s how five friends in their early
20s worked together to buy their first
investment property.
WHAT GOT THEM
STARTED?
The idea of investing as a group had
been in the works for years since three of
the five friends shared just one room in a
Dunedin flat in 2010.
Each member of the group wanted
a way to get onto the property ladder
as early as possible, but obviously it
wasn’t possible to go it alone. The initial
game plan was to renovate an existing
property in Oamaru, but as two more
friends joined the group, the type of
investment strategy changed.
They all realised they weren’t
builders and, coupled with the fact they
were scattered around the country, it
meant they needed a low-maintenance
investment.
WHICH INVESTMENT?
The group settled on a four-bedroom,
2.5 bathroom, standalone house in West
Auckland. The sale price was $925,000.
For a first investment, such a large
property was very impressive. “We
thought we might as well kind of go all
out,” was Lochie’s view of the purchase.
Everyone was able to front $50,000,
and all would contribute equally to top-
ups and expenses. Growth was the big
drawcard for Auckland.
To buy the property together the five
LESSONS LEARNED
Buying property is complicated enough,
but it becomes even more complex
when you’ve got multiple parties buying
and, specifically, when those people
aren’t in a relationship. This is because
banks pool the income of partners or
spouses. But, as a rule, if friends buy a
property together the banks assess their
incomes individually.
For instance, let’s say you and a
friend are going 50/50 on an $800,000
property. The bank assesses whether
you both can afford the mortgage
individually. But if you were a couple,
they’d add the money together and call
it household incomes.
This is why it can be harder for
friends. Lochie said the experience
was quite intense. There was a lot of
paperwork to go through, and there was
a lot of back and forth with the banks.
Many of the banks didn’t want to
touch an application with five people
involved. In the end, ASB did assess the
application on their collective incomes ...
and they gave them the “yes” too. How
income is assessed is at the discretion
of the bank. They’ll chop and change
depending on their lending appetite at
the time.
THE FUTURE
The five have their sights set on a
Christchurch property, but beyond that
there’s no real timeline.
Lochie says the initial plan was to get
on the ladder as early as possible and
get as many properties as they could.
a point where the friends will want to
settle down, start families, and eventually
buy their own homes.
And that’s OK. “We’re not going to be
investing with each other till we’re 70,”
Lochie points out.
He’s found a lot of pros by going
down this investment journey with his
mates. As a group you can afford a nicer,
better property than you otherwise
would because of pooled resources. The
downside is that the application process
is tough and can be more restrictive
when buying progressive properties.
But even more important, the last thing
you want to do is ruin a friendship if
everything turns sour.
This is why Room 4 got a
shareholders’ agreement drawn up in
2022. Lochie says it’s bulletproof and
covers everything from redundancies to
exit strategies.
ADVICE FOR OTHERS
Lochie says this way of investing
gets overlooked because it can be
quite complicated ... in every way. But
assuming everything goes well, it can
be quite lucrative. He says he would
absolutely recommend investing
with a friend, but probably wouldn’t
recommend doing it in a group of five.
NEXT STEPS
Lochie’s experience might resonate with
some potential investors. Maybe you
can’t afford to invest right now, so you
want to go in with friends.
If you want to discuss your options,
the next step is to book a Portfolio
Planning Session with us here at
Opes Partners. Q

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

52 NZ PROPERTY INVESTOR
A property
inspection app
for landlords.

19,337+ Inspections performed

639,020 Photos & videos uploaded
SUN, SEA
AND SALES
Post-election, the sun-soaked city of Tauranga has seen
a surge in house sales, as Sally Lindsay explains.
Images Tourism Bay of Plenty

estled on the sun-soaked

N shores of the Bay of Plenty,

Tauranga is a large city with a
small-town vibe.
While Captain Cook named the Bay of
Plenty area in honour of the plentiful fish,
timber and generous people, he could
well have been referring to the sunshine.
Tauranga is one of the sunniest places in
the country, receiving an average 2,200
hours every year.
Although Tauranga is classed as
one of the smaller cities (by area), the
rapidly increasing population has made it
New Zealand’s sixth-largest city
by population.
More than 150,000 people call
Tauranga home. In spite of this, it
generally doesn’t feel crowded.
REGIONAL REVIEW TAURANGA

At 232 metres tall Mount Maunganui

rewards its summit track climbers with
gorgeous bay views.
REGIONAL REVIEW TAURANGA
Development has mostly kept up with
the influx of people, and there are plenty
of housing options.
Job opportunities are one of the
things that makes Tauranga a practical
place to live. It’s part of the golden
triangle along with Auckland and
Hamilton, and it’s predicted these three
areas combined will be home to 53 per
cent of NZ’s population by 2031.
The unemployment rate in Tauranga
is about 4.7 per cent, a tell-tale sign that
there’s plenty of work to be found. It’s
one of the country’s biggest port cities
and there is opportunity in everything
from business, commercial fishing,
56 NZ PROPERTY INVESTOR
QUINN OCONNELL
agriculture, healthcare, education, retail
and hospitality.
Like every city in NZ, Tauranga has
an excellent quality of life, with a mix
of warmer weather, clean air, and a
close-knit suburban lifestyle. For young
professionals wanting to be in
a central location, cycling and walking
are common ways of commuting to
work, while families gravitate to outer
suburbs like Papamoa Beach, which are
still only a 15 to 20-minute drive from
the city.
It’s a popular tourist destination for
Kiwis who want immaculate beaches,
hiking trails, waterfalls, and water sports.
THIS PAGE FROM TOP Papamoa Surf Club,
picnicking at Pilot Bay.
OPPOSITE CLOCKWISE FROM TOP LEFT
Tauranga Art Gallery, biking at Summerhill
recreational farm, The Mt’s Izakai bar and
eatery, Matariki pou carvings – The Strand,
waterfront playground fun, Barrell Room on
Wharf Street.
It’s also a city that’s sprawling with
trendy cafes, restaurants and bars, giving
the perfect mix between outdoor and
indoor lifestyle.
AFFORDABLE OPTIONS
There are great housing neighbourhoods
throughout the entire city – suburbs,
outskirts, or coastal areas. Otumoetai,
Papamoa and Mt Maunganui are all
coastal, so generally carry a slightly
higher price tag. Yet not everywhere is
pricey. Tauranga Central and Gates Pa
offer great, affordable options to get you
into the area.
Price drops are falling back across
Tauranga; Judea had the biggest drop
for the year to November 2023. The
suburb fell 5.2 per cent from $752,500
in November 2022 to $731,650 in
November last year, followed by Bellevue
dropping 5 per cent from $817,500 to
$776,950, and Welcome Bay declining
4.6 per cent, from $865,450 to
$826,000. Parkvale and Pyes Pa both fell
4.5 per cent, Hairini 4.1 per cent, Gates
Pa 3.9 per cent, Bethlehem 3.7 per cent,
Papamoa 2.5 per cent from $944,850 to
$921,400, and Ohauiti 2.3 per cent from
$1,018,000 to $994,650.
 CHRIS PARKER

STRIKE PHOTOGRAPHY

BRIAN SCANTLEBURY QUINN OCONNELL


Raine & Horne director and
auctioneer Paul Billinghurst says there
has been much more housing market
activity since the election. “There
seemed to be a lot of people just waiting
to see what happened. It has picked
up since. We have more multi-offers on
properties and more people interested in
58 NZ PROPERTY INVESTOR
buying and selling, but it’s not the 2021
boom by any stretch of the imagination.”
More properties are coming onto the
market, but the ratio of buyers to listings
hasn’t changed that much.
“Vendors have finally woken up and
are meeting the market as opposed
to two years ago. It comes down to
ABOVE Spot the cruise ship, Mt Maunganui.
BELOW Twilight at Mount Hot Pools.
motivation and whether a vendor really
wants to sell, but there are more willing
to meet the market.”
Billinghurst says despite the
difficulties for investors over the past
two years with increasing tax payments
and costs for insurance and council
rates accelerating, there haven’t been
distressed sales across the board.
He says the agency is not seeing a
big flurry of investors either, probably
slightly more than usual, and a lot
just waiting until the new government
announced last year it was reinstating
tax deductibility. Investors can now claim
60 per cent this tax year, 80 per cent in
2024/25, and 100 per cent in 2025/26.
Investors agents have seen are the
ground breakers – those coming back
into the market before the government’s
new property policies have properly
kicked in. “They are definitely looking for
bargains,” says Billinghurst. “Previously
they would pay either just above market
price or come in with ‘we don’t care
what we pay, we just want to buy’
attitude. There is none of that from an
investor point of view at the moment.”

SAVVY INVESTORS
If a property has issues, such as a leaking
roof, and a first-time buyer is not going
to get financed, then investors will
swoop in. “The more seasoned investors
know they can fix the problems and
if they can get it at a bargain price,
then it’s worthwhile, whereas a first-
home buyer will be mortgaged up to
the hilt and the bank will not lend
because they cannot afford to repair
the house. Those kinds of investors are
always there.”
He says savvy and educated property
investors will always look at cash flow
and returns first, which generally means
they are after a bargain.
“They are always going to try to get a
property for the lowest price possible.
“When it is a mum and dad or not
very educated investor they get caught
up with the hype and believe that
property prices are going to rise by 10
per cent every year and interest rates will
stay low.
“They are buying emotionally
compared to those buying on financials
and who won’t buy if the figures don’t
stack up. The savvier investors will
gravitate to the ‘dunger’ around the
corner because it’s a better investment
and will rent for more.”
When taking offers on properties,
Billinghurst says they are more often
subject to sale. Not many vendors are
buying before they have sold, so stock
is fairly static. Several sellers are moving
into retirement homes and others are
moving out of the region, while there are
always movers within the city.
Cheaper properties are in the
$500,000-$600,000 range. Under
REGIONAL REVIEW TAURANGA
‘There are great
neighbourhoods
throughout the
entire city’
$500,000 are typically two-bedroom
homes or older style apartments. Very
seldom would a buyer get a three-
bedroom house under $500,000, he
says. At the height of the market an
average three-bedroom home would
sell for $700,000-plus, but that has now
dropped to between $500,000 and
early $600,000.
First-home buyers are looking in the
$750,000-$800,000 range, whereas a
few years ago when interest rates were
sub-three per cent, they would look at a
$1 million house. An $800,000 mortgage
was serviceable then, but now that
would be fairly challenging for most
people, Billinghurst says.
He says Tauranga’s housing market it
just as bad as the rest of the country in
that there are not enough rentals. It’s a
major problem, but the new government
should be a lot friendlier to landlords
when tax deductibility is restored, and
the bright-line test shortened.
RENTAL VIEWINGS
Propertyscouts Tauranga business owner
and property management specialist,
Adrienne Turner, says there is a huge
shortage of rental properties in the Bay
of Plenty.
“Even though Kainga Ora is building
dozens of houses, not everybody is
suitable to rent its properties and
middle-income earning families are
holding down more than one job to keep
a roof over their heads,” she says.
Thrown into the mix are people
relocating for jobs or commuting to
work in Auckland, all looking for a rental.
“With a rapidly growing population the
region is hundreds, if not thousands of
rentals short.”
This is shown up in the number of
viewings for each rental. Recently a two-
bedroom house Turner had on her books
had 54 applicants and more than that
number showed up at viewings. “This is
normal as people desperately search for
somewhere to live.”
Making light work of the application
process and the appropriate checks
keeps the business going smoothly.
“This is not a five-minute job when
there are 50-odd applications to deal
with and everyone is given a fair chance,”
Turner says.
New rentals are continually flowing
into the business from property owners
taking time out and travelling NZ in
campervans or caravans, going overseas,
and younger people trying mining in
Australia to make more money.
Investors are still buying properties as
rentals if they have the required 40 per
cent deposit or a good chunk of capital
in their own home or other properties
they own. However, Turner says a few
landlords she deals with (five in the
past year) have sold up mainly because
of high interest rates and difficulty in
servicing mortgage repayments. “This
would mean a huge hike in rents to cover
the difference and that would not be fair
on tenants.
 REGIONAL REVIEW TAURANGA

MEDIAN PRICE & SALES ABOVE Cyclists at Gate Pa memorial reserve.

Annual change in Tauranga’s median price and sales volumes over five years:
YEAR ENDING MEDIAN PRICE % CHANGE SALES % CHANGES
“Investors, of course, want to
Nov-23 $887,000 -9.4% 2,308 -1.4%
minimise their outgoings and should be
Nov-22 $979,000 5.3% 2,341 -24.8%
able to do this when tax deductibility
Nov-21 $930,000 24.7% 3,111 -2.6% is reinstated. When interest rates drop
Nov-20 $745,500 11.0% 3,195 -10.2% there should be an increase in more
Nov-19 $671,500 3,558 investors buying again.”
The city’s rental market fluctuates
Source: REINZ
quite a bit. Turner says when owners/
PRICE BAND SALES landlords notice rents increasing they
Annual change in Tauranga’s sales volumes across price bands over three years: feel they can achieve the same sort of
% OF SALES rent. “Bearing in mind Healthy Homes
standards, location and what is on offer
YEAR ENDING YEAR ENDING YEAR ENDING YEAR ENDING
PRICE BAND at their property has an impact on rents.
NOV 2020 NOV 2021 NOV 2022 NOV 2023
Less than $400k 1% 0% 0% 1% Comparisons at the time of renting out a
home are important to keep in line with
$400k-$599k 21% 5% 3% 7%
market rent, but not go overboard.”
$600k-$699k 19% 11% 9% 12% Popular rental areas are Mount
$700k-$799k 18% 14% 12% 15% Maunganui, Pyes Pa, Greerton and
$800k and over 41% 70% 76% 65% the Avenues for one to two-bedroom
homes and at the other end four to five-
Source: REINZ
bedroom houses.
SUBURBAN GROWTH Rent on a two-bedroom house starts
Tauranga’s top 10 suburbs for capital growth in the year ending October 1, 2023: at a minimum of $500 a week and for
SUBURB NAME MEDIAN VALUE MEDIAN VALUE ANNUAL % a basic three-bedroom home $680 a
1/11/2022 1/11/2023 CHANGE week. Houses that are priced right can
Ohauiti $1,018,000 $994,650 -2.30% take less than 28 days to rent. Q
Papamoa $944,850 $921,400 -2.50%
Bethlehem $1,099,900 $1,059,550 -3.70%
Gate Pa $700,000 $672,700 -3.90%
Hairini $795,850 $763,450 -4.10%
INVESTING IN
Pyes Pa $1,068,900 $1,021,200 -4.50% TAURANGA
Parkvale $682,900 $651,850 -4.50% For more information about
Welcome Bay $865,450 $826,000 -4.60% investing in Tauranga go to www.
Bellevue $817,500 $776,950 -5.00% tauranga.nzpif.org.nz
Judea $752,500 $713,650 -5.20%
Source: CoreLogic

60 NZ PROPERTY INVESTOR
 In the two-bedroom bracket (24 per
cent of all Tauranga houses recently
for rent), Tauranga Central/Greerton
has been the largest market, with 63
properties. It’s also had the highest
concentration rate (38 per cent), with
Pyes Pa/Hairini/Welcome Bay at the
other end of the spectrum. However,
the latter is a key area for four-bedroom
houses on the rental market.
For the key three-bedroom bracket
– 59 per cent of houses recently for rent
in Tauranga – Papamoa Beach has had
too, apart from Tauranga Central/
Greerton, at 49 per cent.
RENT AND YIELD
By matching average value to rent
we can look at gross yield for three-
bedroom houses in each area.
Median weekly rents for three-
bedroom houses across Tauranga
are in a fairly tight range of $660
(Tauranga Central/Greerton) up to
$700 in Papamoa Beach. However,
there’s a wider spread for the values of
Tauranga Central/Greerton, down to a
relatively low figure of less than 3 per
cent in Mt Maunganui.
That said, even with large parts of
Tauranga seeing rental yields on three-
bedroom houses below 4 per cent,
at least the growth in rents on those
properties might be looking appealing
to some investors. Growth of 5-7 per
cent over the past year has been fairly
common, with Papamoa Beach pushing
8 per cent, and Tauranga Central/
Greerton getting into double digits. Q
NZ PROPERTY INVESTOR 61
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NZPIF FROM THE PRESIDENT’S DESK
SUE HARRISON

EXCITING YEAR FOR

RENTAL INDUSTRY
It’s a good time to review investing, and social
housing could be a viable option for some owners,
writes Sue Harrison.
his is an exciting year to be part of New Zealand’s rental

T housing industry. While there are constant challenges

investing in “bricks and mortar” rental homes, the
importance of our place in the system is crucial. The
demand on housing is ever increasing post-Covid, with high
levels of immigration and record interest in moving to New
Zealand. We know that climate change is going to increase
people shifting to cooler climates, and it will be hard to keep the
borders closed on refugees.
Housing First, a social housing provider in Christchurch,
invited me to a breakfast before Christmas with other owners.
It was a pleasure to see several Canterbury Property Investors’
Association members also there as we heard about the great
work these agencies do; work that’s repeated around the country.

GOOD MANAGERS
Many owners find there is the satisfaction in meeting housing
needs and the convenience of having competent managers take
care of their rental.
Recently, an added incentive is having tax deductibility
allowed on rentals providing this type of housing. One of the
barriers has been insurance as not all companies will cover
social housing. Sometimes, education is needed around the care
managers take to cover the risk of damage. It’s only really an
issue if the property has to change providers.

FUTURE PLANS
The public/private partnership and spirit of collaboration is visible
in a very positive way through the connections. The removal of
tax deductibility, rising expenses and other risks associated with
owning rental housing has changed many owners’ future plans.
It’s a good time to review your investing; considering social
housing is a viable option for some rental investments.
We plan to run a national webinar on this topic, and other
topics of wide interest next year. Be sure to stay connected to
your local Property Investors’ Association to find out more.
www.nzpif.org.nz Q www.nzpif.org.nz or email admin@nzpif.org.nz to join now.

THANK YOU FOR THE CONTINUING SUPPORT FROM NZPIF BUSINESS PARTNERS

NZ PROPERTY INVESTOR 63
 NEXT MEETING: Thursday, February 8, 7pm at Lifepoint
Church, 61 Hopper Street, Mt Cook.
TOPIC: Email wellington@nzpif.org.nz for more information.
WAIRARAPA
NEXT MEETING: Thursday, February
22, 7.30pm at the Lone Star.
TOPIC: Contact Tim Horsbrugh on
NELSON 021992628 for more information.
NEXT MEETING: Tuesday, February 20, 6pm
Investor Dinner,
r 7.30pm presentation at the
Honest Lawyer, 1 Point Road, Monaco.
TOPIC: Top tips for managing residential
rental property, a Q&A session with
professional property managers MARLBOROUGH
NEXT MEETING: Wednesday, February 21,
7.30pm at Ray White Blenheim.
TOPIC: Speaker Braden Stanton, director
CANTERBURY Ray White Blenheim. A valuer’s and an
NEXT MEETING: Saturday, February 10, 10.30- investor’s story.
12.30pm, Rogues of Rotherham function room,
42 Rotherham Street, Riccarton, Christchurch.
TOPIC: CPIA Women in Property. Interested
in your financial future? Come along and hear
from Sheryl Sutherland, financial adviser,
r on SOUTH CANTERBURY
NORTH OTAGO NEXT MEETING: February 2024.
the topic of behavioural finance. NEXT MEETING: Please contact
TOPIC: Please contact Kerry Beveridge at
the association, Jeanette Halcrow
kiwikerry@gmail.com or 021482840 for
at krow47@xtra.co.nz or call
information on next meeting.
034348268 for information on
SOUTHLAND next meeting.
NEXT MEETING:
February 2024.
TOPIC: Email JOIN A PROPERTY INVESTOR
southland@nzpif.org.nz
OTAGO
NEXT MEETING: Tuesday, February 20. ASSOCIATION FOR INDUSTRY
for more information on UPDATES, NETWORKING AND
TOPIC: Come along to our annual OPIA Bus Trip.
this meeting. COMMERCIALLY INDEPENDENT
Email opia@opia.org.nz for more information.
INFORMATION – A GREAT WAY
TO PROTECT YOUR RENTAL
PROPERTY INVESTMENT.
 NZPIF SPOTLIGHT

TENANTS
WITH
GREEN
FINGERS
Research shows tenants
who are engaged with
growing food at home
or in communal areas
take more pride,
writes community
gardening ambassador
Rachel Vogan.
t’s been found that people who

I have gardening spaces report

a better quality of life, and by
providing spaces where tenants
can relax and grow food gives a sense
of belonging. The quarter-acre paradise
is long gone in New Zealand, but new
ways of growing food in small or shared
spaces are emerging.
The Canterbury Community Gardens
Association (CCGA) is leading the way
in communal gardening with 60 gardens
registered within the organisation. The
CCGA is keen to branch out and help
develop connections between landlords
and tenants in offering common spaces
to grow food, interact with others limit food waste in group housing CLOCKWISE FROM TOP LEFT Peggy Kelly CCGA
and share gardening skills. They are establishments. CCGA helps support and patron and Viviana Zanetti – Phillipstown Community
IMAGES: RACHEL VOGAN. COMMUNITY GARDENING AMBASSADOR / ADVOCATE

encouraging more property owners to
make spaces available for tenants and
residents to grow food, make compost
and recycle waste.
Communal growing spaces have
grown in popularity and post-Covid
are now very much on trend. With
densification comes less space to grow
food at home, and less ground is being
made available to tenants to put in
gardens or grow food. These areas bring
residents together in a harmonious way
to nurture each other and grow food.
Nationally, there is a growth in
community gardens being built and
this is seeing empty sections, pieces of
parks and road berms being turned into
abundant food growing spaces.
FOOD WASTE
One aim of CCGA is to help support
implementation of compost systems
or food recycling initiatives to help
educate families and individuals about
how easy it is to limit food waste by
recycling it into rich fertiliser or compost.
Worm farms, compost bins and bokashi
systems are all easy ways in which the
community can limit food waste and
recycle it at the same time.
Peggy Kelly, patron of the CCGA, is
keen to work with property investors
to enable more families to grow food.
“People tell us that they don’t have a
garden because they are ‘only renting’
or that they want to plant a patch but
are reticent about seeking permission
from their landlord or landlady in case
it will draw attention to themselves and
consequentially, their rent might go up,”
she says.
“We feel that these fears are
probably mostly unfounded and yet they
are real to some tenants. It seems to us
that it would be fairly easy to designate
a small patch of garden for growing food
Hub, flower borders with edible benefits, CCGA
Connecting Communities’ members, harvest-time.
such as silver beet, tomatoes, zucchini
and beans.
“It is possible to note in the tenancy
agreement an obligation to keep that
area tidy.”
SOCIAL CONTACT
Growing a garden or participating in
a community garden is likely to mean
the tenant will stay longer and take
better care of the property. Tenants who
come as immigrants will bring different
attitudes to cultivation. It may well be
their custom to grow food or indeed it
may become an economic necessity.
Gardening has many benefits, and this
includes increasing social contact and
collaboration.
For more information on the CCGA,
visit www.ccga.org.nz Q

NZ PROPERTY INVESTOR 65
NZPIF SPOTLIGHT
TIPS ON LIFE BY
TWO SUCCESSFUL
LEADERS
What do Paula Bennett and Steve Goodey have in
common? Turns out they both know how to use the
right building blocks in this thing we call life.
Paula Bennett and Steve Goodey speaking at the NZPIF annual conference in Queenstown.
t might be considered unusual to
I have Paula Bennett as the opening
speaker at the recent 2023 Annual
Conference of the NZ Property
Investors’ Federation.
Held in Queenstown at the Rydges
Lakeside Hotel overlooking the snow-
dusted Remarkables, an audience of
property investors from across the
country gathered to hear about the
latest trends in the housing market.
But what could Paula offer? For a
start she talked about working two jobs
to save enough money to purchase her
first house. Many property investors
in the audience could relate to that as
often they have built up their property
investment portfolios that way – working
hard and sometimes at more than one
job at a time.
66 NZ PROPERTY INVESTOR
‘Mistakes give you
resilience and the
strength to push
boundaries’
THE RECIPE
She decided it was up to her to make
it work and the recipe for success was
having a plan and a list of milestones;
sometimes it was just putting one foot in
front of the other.
Paula stressed it was important to get
rid of the voice saying you are not good
enough. In her case she actually called
that voice “Mildred”. When Mildred
became too insistent and loud, Paula
would walk her down the road and put
her in a taxi.
This visualisation was very effective
during the years Paula was managing
a range of 14 different ministerial
portfolios while she was a member of
Parliament.
During life you have choices, she said,
and doing what makes you happy is the
way to go.
This sentiment was echoed by Steve
Goodey, who had this confirmed early in
life when the profit from the sale of his
first house enabled him to travel rather
than get a job. Although now a very
successful property investor and possibly
at first glance a more appropriate
speaker at an NZPIF conference, he
also had life tips which can be used by
anyone in any walk of life.
THREE POINTS
Steve recommended looking at where
people are doing well, and learning how
to do that. He had three further points
for the audience: In life you should get
yourself sorted first; then work to leave
a legacy for your family; and finally
decide how you can contribute to the
community. Always look for cash flow
positive properties as the first three or
four you have will enable you to reach
your goals.
Paula stressed that you need to own
the life you lead. Not only doing what
makes you happy, but keeping it real.
Mistakes give you resilience and the
strength to push boundaries. When
she first considered going into politics,
she went ahead saying to herself “why
not me in Parliament?” She felt she
had nothing to lose, particularly as she
then stopped caring what other people
thought about her.
Steve Goodey put it another way by
simply saying you are the master of your
own destiny. Q
NZPIF is a not-for-profit organisation
and does not provide financial, legal,
tax or accounting advice. Information
provided by, on behalf of, or under the
auspices of NZPIF is necessarily of a
general nature. NZPIF and its officers
and agents have no responsibility or
liability of any kind to any person for
such information. NZPIF recommends
you consult appropriate professional
advisers before making any investment
decision or entering into any investment
or transaction.
 
   











  
     

, )- +$--$ &

,  - -)! $
,   -& &-
--$  !$--! #+
( %& &-$&" '  $- *   $- - $- $

 








 

    
   

RENTAL & SALES STATISTICS
JANUARY 2024
HOW TO USE THIS SECTION
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.

68 NZ PROPERTY INVESTOR
 Whangarei - Kamo/Tikipunga/
House 4 1498 33 645 - 725 655 5.1 31.8 768100 -10.0 27.3 4.4 16.8 3.5
Kensington
Whangarei - Whangarei Central/
Flat 2 816 0 - 0 0.0 0.0 489800 -5.4 36.5 0.0 0.0 0.0
Otangarei
Whangarei - Whangarei Central/
House 2 497 30 471 - 520 490 8.9 36.1 550250 -12.9 35.1 4.6 25.0 0.7
Otangarei
Whangarei - Whangarei Central/
House 3 1744 27 550 - 620 590 1.7 40.5 612200 -9.2 33.6 5.0 12.0 5.1
Otangarei
Whangarei - Ngunguru/Onerahi/
House 3 4509 69 576 - 650 605 7.1 34.4 827550 -13.1 30.0 3.8 23.2 3.4
Whangarei Heads/Waipu
Whangarei - Ngunguru/Onerahi/
House 4 2122 45 650 - 700 660 -2.9 34.7 1081650 -7.6 35.0 3.2 5.0 -0.3
Whangarei Heads/Waipu
Whangarei - Morningside/
House 3 1930 33 565 - 610 580 3.6 38.1 544900 -12.3 27.9 5.5 18.1 8.0
Raumanga/Maunu
Kaipara - Entire District House 3 3480 39 499 - 628 560 0.9 47.4 834200 6.5 59.4 3.5 -5.3 -7.6
Rodney - Wellsford/Warkworth/
House 2 1256 30 499 - 550 525 10.5 28.0 960500 0.8 36.9 2.8 9.6 -6.5
Helensville
Rodney - Wellsford/Warkworth/
House 3 4821 60 595 - 680 640 4.9 28.8 1117300 -8.7 26.4 3.0 14.9 1.9
Helensville
Rodney - Wellsford/Warkworth/
House 4 2780 36 650 - 739 695 -0.7 23.0 1570250 -4.1 39.7 2.3 3.6 -11.9
Helensville
Rodney - Orewa/Whangaparaoa Flat 2 870 12 521 - 550 548 0.0 32.0 841350 -7.7 21.0 3.4 0.0 9.2
Rodney - Orewa/Whangaparaoa House 2 1370 69 530 - 630 575 6.5 25.0 937500 -9.4 20.4 3.2 17.6 3.9
Rodney - Orewa/Whangaparaoa House 3 6322 96 640 - 740 695 6.9 21.9 1115750 -4.1 24.1 3.2 11.5 -1.7
Rodney - Orewa/Whangaparaoa House 4 5395 114 799 - 900 850 7.6 13.3 1374200 -10.8 27.3 3.2 20.6 -11.0
Rodney - Rewiti/Kumeu/Riverhead House 4 1725 33 798 - 850 825 3.1 13.0 1391350 -8.2 21.9 3.1 12.3 -7.3
Rodney - Gulf Harbour House 3 938 18 670 - 748 695 3.3 21.9 1036500 -6.3 18.0 3.5 10.2 3.4
Rodney - Gulf Harbour House 4 1152 15 730 - 795 780 7.9 26.8 1159200 -9.5 17.0 3.5 19.2 8.4

AUCKLAND
North Shore - Torbay House 3 1718 33 660 - 750 700 4.5 20.7 1163250 -5.6 19.0 3.1 10.7 1.4
North Shore - Torbay House 4 1395 36 820 - 901 873 10.5 16.4 1325600 -8.3 3.9 3.4 20.5 12.1
North Shore - East Coast Bays Flat 2 619 6 576 - 645 628 5.5 20.8 1039500 -11.3 16.6 3.1 19.0 3.6
North Shore - East Coast Bays House 3 1237 33 763 - 944 850 16.4 25.0 1677800 -15.3 2.6 2.6 37.4 21.8
North Shore - East Coast Bays House 4 1623 24 823 - 1138 988 12.9 15.6 2204800 -7.7 10.4 2.3 22.4 4.6
North Shore - Albany House 3 451 30 681 - 756 710 9.2 14.5 1211000 2.2 24.1 3.0 6.9 -7.7
North Shore - Albany House 4 903 27 823 - 980 895 12.6 19.3 1527300 -1.0 27.1 3.0 13.7 -6.1
North Shore - Wairau Park/Glenfield
House 3 1440 45 635 - 700 660 3.1 15.8 1047750 -5.6 24.0 3.3 9.2 -6.6
North
North Shore - Browns Bay House 3 795 18 700 - 828 750 14.0 15.4 1253700 -0.3 21.0 3.1 14.4 -4.6
North Shore - Rothesay/Murrays/
House 3 1131 33 690 - 825 730 6.1 9.0 1469650 -15.3 8.1 2.6 25.2 0.8
Mairangi Bays
North Shore - Rothesay/Murrays/
House 4 1827 33 838 - 965 900 9.8 16.1 1689250 -7.0 5.4 2.8 18.0 10.2
Mairangi Bays
North Shore - Takapuna Flat 2 793 0 - 0 0.0 0.0 1044700 -13.8 26.0 0.0 0.0 0.0
North Shore - Takapuna House 2 186 27 580 - 740 630 10.5 15.6 1528550 -11.3 17.5 2.1 24.7 -1.6
North Shore - Takapuna House 3 1182 36 790 - 958 863 21.5 19.9 1666000 -18.5 11.1 2.7 49.1 7.9
North Shore - Devonport Flat 2 522 9 485 - 615 540 -4.4 9.8 1050200 -5.5 18.2 2.7 1.1 -7.1
North Shore - Devonport House 3 1550 18 774 - 905 835 11.3 21.9 1851350 -15.5 14.0 2.3 31.8 6.9
North Shore - North Harbour/Pinehill House 3 906 27 698 - 808 780 11.4 20.0 1316900 -5.1 27.1 3.1 17.4 -5.6
North Shore - North Harbour/Pinehill House 4 1330 21 820 - 920 890 4.7 17.1 1527950 -4.2 21.3 3.0 9.3 -3.5
North Shore - Greenhithe/Unsworth
House 3 1161 15 720 - 850 790 17.9 27.0 1184050 -5.8 20.3 3.5 25.2 5.6
Heights

EXPLANATION OF STATISTICAL TERMS

No. of Properties: Total number of residential properties. No. of Bonds: Total number of bonds lodged in last three months. Median Rent: Weekly rent based on the bonds lodged in the latest three months.
Rent Quartile Range: Inter-quartile range of weekly rent based on the bonds lodged in the latest three months. Median Value: The median value of properties in the group based on estimating the current
market value of each property using our E-Valuer at the end of the latest month. Gross Yield: Annualised median rent as a percentage of median property value for specified time period.

NZ PROPERTY INVESTOR 69
RENTAL & SALES STATISTICS JANUARY 2024
trusted data

RENT MEDIAN RENT MEDIAN VALUE YIELD

RENTAL AREA NO. OF
TYPE BEDS PROPERTIES NO. OF
BONDS QUARTILE 1 YR 5 YR 1 YR 5 YR 1 YR 5 YR
RANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE
North Shore - Sunnynook/Westlake Flat 2 644 9 581 - 600 593 10.2 19.3 919650 -2.2 11.7 3.4 12.8 6.9
North Shore - Sunnynook/Westlake House 2 208 36 550 - 620 595 6.3 19.0 1298400 2.5 30.4 2.4 3.6 -8.8
North Shore - Sunnynook/Westlake House 3 1777 60 675 - 798 720 5.9 16.1 1259800 -10.4 16.3 3.0 18.2 -0.2
North Shore - Sunnynook/Westlake House 4 936 42 808 - 950 880 14.3 29.4 1569050 -8.2 17.8 2.9 24.5 9.9
North Shore - Glendhu/Glenfield Flat 2 581 6 535 - 571 543 1.5 14.3 752200 -4.2 12.1 3.8 6.0 2.0
North Shore - Glendhu/Glenfield House 2 199 21 538 - 630 590 12.8 21.1 956100 -2.3 26.1 3.2 15.5 -3.9
North Shore - Glendhu/Glenfield House 3 2207 51 650 - 734 695 10.3 24.1 1062250 -0.8 19.9 3.4 11.2 3.5
North Shore - Hillcrest/Northcote Flat 2 655 9 505 - 600 570 23.9 21.3 802950 -3.5 13.5 3.7 28.4 6.9
North Shore - Hillcrest/Northcote House 2 167 33 563 - 650 600 12.1 20.0 1107750 -6.4 13.0 2.8 19.8 6.2
North Shore - Hillcrest/Northcote House 3 1524 45 686 - 840 750 15.4 21.0 1235950 -6.6 23.3 3.2 23.5 -1.9
North Shore - Hillcrest/Northcote House 4 1130 21 835 - 1000 910 15.2 30.9 1536200 -5.4 24.8 3.1 21.8 4.9
North Shore - Beachhaven/Birkdale House 2 419 27 559 - 653 620 19.2 27.8 944750 -7.4 19.6 3.4 28.7 6.8
North Shore - Beachhaven/Birkdale House 3 3376 75 650 - 721 683 10.2 24.2 1061850 -0.8 21.2 3.3 11.0 2.5
North Shore - Chatswood/
Flat 2 454 6 543 - 560 550 8.3 20.9 789800 -6.6 13.1 3.6 15.9 6.9
Birkenhead/Northcote Point
North Shore - Chatswood/
House 2 247 15 585 - 663 600 8.1 11.1 1265550 -0.4 16.2 2.5 8.5 -4.4
Birkenhead/Northcote Point
North Shore - Chatswood/
House 3 1872 21 680 - 800 750 2.7 20.0 1445400 -9.2 29.7 2.7 13.1 -7.5
Birkenhead/Northcote Point
North Shore - Chatswood/
House 4 1665 18 800 - 1061 840 0.0 8.8 1659600 -4.8 18.1 2.6 0.0 -7.9
Birkenhead/Northcote Point
Waitakere - West Harbour House 3 2060 57 620 - 760 695 6.9 13.9 1132750 -5.6 29.6 3.2 13.3 -12.1
Waitakere - West Harbour House 4 2315 30 814 - 891 850 6.9 13.3 1418200 -6.7 24.9 3.1 14.6 -9.3
Waitakere - Massey/Royal Heights House 3 2948 93 630 - 720 680 15.3 36.0 961200 -4.2 26.9 3.7 20.3 7.1
Waitakere - Massey/Royal Heights House 4 1177 36 750 - 849 800 15.1 33.3 1086300 -5.8 28.8 3.8 22.2 3.5
Waitakere - Te Atatu Peninsula House 3 1192 39 650 - 700 680 4.6 19.3 1073150 -7.5 21.1 3.3 13.1 -1.5
Waitakere - Te Atatu House 3 716 24 630 - 671 650 12.1 23.8 961450 -7.1 20.6 3.5 20.6 2.6
Waitakere - Ranui House 3 1588 30 630 - 660 650 11.5 31.3 796300 -10.0 16.2 4.2 23.9 13.0
Waitakere - Henderson Flat 2 844 0 - 0 0.0 0.0 639350 -7.8 12.0 0.0 0.0 0.0
Waitakere - Henderson House 2 618 60 550 - 600 595 19.0 32.2 806600 -5.9 24.1 3.8 26.4 6.6
Waitakere - Henderson House 3 4455 96 610 - 680 650 9.2 26.2 958800 -6.2 19.5 3.5 16.5 5.6
Waitakere - Henderson House 4 2344 30 750 - 850 850 19.7 30.8 1128000 -4.6 22.6 3.9 25.5 6.7
Waitakere - Glendene House 3 1718 24 591 - 674 635 5.3 21.0 914750 -8.2 21.0 3.6 14.8 0.0
Waitakere - Kelston House 3 1471 24 588 - 700 650 8.3 22.6 934200 -5.5 25.2 3.6 14.7 -2.0
Waitakere - Glen Eden House 3 2446 45 594 - 660 648 12.7 29.1 864550 -8.5 17.2 3.9 23.1 10.2
Waitakere - Titirangi House 2 649 12 500 - 575 550 5.2 15.3 935250 -8.7 25.4 3.1 15.2 -8.0
Waitakere - Titirangi House 3 3954 24 600 - 700 650 0.0 18.2 1062150 -7.6 26.4 3.2 8.3 -6.5
Waitakere - New Lynn Flat 2 972 12 483 - 581 520 15.6 23.8 657550 -7.3 19.2 4.1 24.7 3.8
Waitakere - New Lynn House 2 422 48 531 - 615 568 13.6 28.5 881950 -10.6 25.2 3.3 27.1 2.7
Waitakere - New Lynn House 3 1740 54 600 - 671 650 8.3 18.2 973050 -8.6 19.5 3.5 18.5 -1.1
Waitakere - Western Beaches/Rural House 2 562 18 540 - 630 585 -1.7 39.3 964050 -8.5 22.8 3.2 7.5 13.4
Waitakere - Western Beaches/Rural House 3 1753 24 605 - 738 665 7.6 26.7 1052600 -7.1 15.5 3.3 15.9 9.7
Auckland - Central East Apt 1 4856 240 380 - 480 420 16.7 5.0 358150 -0.8 -15.9 6.1 17.7 24.9
Auckland - Central East Apt 2 2998 117 520 - 660 570 26.7 8.2 605300 -17.1 -5.2 4.9 52.7 14.1
Auckland - Parnell Apt 1 255 21 490 - 575 540 4.9 9.1 582000 -5.3 11.9 4.8 10.7 -2.5
Auckland - Parnell Apt 2 377 27 650 - 850 735 13.1 -2.0 0 0.0 0.0 0.0 0.0 0.0
Auckland - Parnell House 3 620 21 855 - 1098 995 3.3 18.2 2298900 -15.0 3.7 2.3 21.5 13.9
Auckland - Herne Bay/St Marys Apt 2 223 12 700 - 850 770 10.8 12.4 1182400 -1.2 10.8 3.4 12.1 1.5
Auckland - Ponsonby/Freemans Bay Apt 1 204 12 520 - 635 560 13.1 16.2 646700 -5.8 0.0 4.5 20.1 0.0
Auckland - Ponsonby/Freemans Bay Flat 2 371 9 570 - 650 590 0.0 0.0 1002400 -9.5 5.7 3.1 0.0 0.0
Auckland - Ponsonby/Freemans Bay House 3 1267 27 900 - 1120 995 1.5 8.2 2384450 -9.4 27.0 2.2 12.1 -14.8
Auckland - Pt Chevalier House 3 1331 21 700 - 900 775 0.6 15.7 1779100 -12.1 13.3 2.3 14.5 2.1
Auckland - Grey Lynn/Arch Hill Apt 1 365 33 545 - 625 590 13.5 20.4 565350 -5.7 26.3 5.4 20.3 -4.7
Auckland - Grey Lynn/Arch Hill Apt 2 484 12 719 - 888 820 11.1 20.6 927250 -3.6 3.2 4.6 15.3 16.8
Auckland - Grey Lynn/Arch Hill House 4 510 6 1000 - 1150 1100 16.4 25.7 2527350 -12.5 16.5 2.3 33.1 7.9
Auckland - Westmere/Surrey
House 3 1122 21 875 - 1013 940 10.6 20.5 2271800 -12.8 33.0 2.2 26.8 -9.4
Crescent
Auckland - Mt Eden Flat 1 719 21 405 - 480 450 7.1 17.8 509900 -14.0 2.2 4.6 24.6 15.2
Auckland - Mt Eden Flat 2 800 18 506 - 599 573 21.9 16.9 807450 -11.0 15.8 3.7 37.0 1.0
Auckland - Mt Eden House 3 945 18 743 - 890 770 4.1 5.5 2185400 -10.3 23.0 1.8 16.1 -14.2
Auckland - Waterview/Avondale
Flat 2 337 6 491 - 533 513 2.6 0.0 726050 -10.4 17.1 3.7 14.5 0.0
Heights
Auckland - Waterview/Avondale
House 3 977 27 670 - 770 750 18.1 24.0 1102450 -8.5 23.0 3.5 29.1 0.8
Heights
Auckland - Avondale House 3 1713 42 625 - 710 675 12.9 25.0 1010000 -4.7 20.9 3.5 18.4 3.4
Auckland - Blockhouse Bay/New
House 3 1668 57 660 - 750 693 11.2 17.5 1159100 -8.1 24.2 3.1 21.0 -5.4
Windsor
Auckland - Mt Albert/Owairaka Flat 2 785 15 535 - 580 560 9.8 20.4 719500 -11.2 12.2 4.0 23.6 7.4
Auckland - Mt Albert/Owairaka House 3 1459 18 665 - 808 750 11.9 13.6 1562750 -11.3 11.7 2.5 26.1 1.7

70 NZ PROPERTY INVESTOR
RENTAL & SALES STATISTICS JANUARY 2024
trusted data

RENT MEDIAN RENT MEDIAN VALUE YIELD

RENTAL AREA NO. OF
TYPE BEDS PROPERTIES NO. OF
BONDS QUARTILE 1 YR 5 YR 1 YR 5 YR 1 YR 5 YR
RANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE
Auckland - Mt Roskill/Wesley House 3 827 27 700 - 770 745 14.6 28.4 1078600 -5.6 14.8 3.6 21.4 11.9
Auckland - St Lukes/Sandringham Flat 2 871 21 530 - 580 550 11.1 17.0 699150 -9.1 7.4 4.1 22.2 8.9
Auckland - St Lukes/Sandringham House 3 1258 24 646 - 808 700 13.3 15.7 1573800 -11.8 24.2 2.3 28.4 -6.8
Auckland - Epsom Flat 2 711 12 550 - 610 598 6.8 13.5 967800 -8.1 11.8 3.2 16.2 1.5
Auckland - Three Kings House 3 575 9 645 - 750 745 8.0 10.4 1256750 -13.9 10.5 3.1 25.5 -0.2
Auckland - Royal Oak/One
/ Tree Hill House 2 311 30 578 - 718 645 15.2 21.7 1428200 -16.7 18.5 2.3 38.3 2.7
Auckland - Royal Oak/One
/ Tree Hill House 3 1450 42 740 - 850 780 8.3 20.0 1748850 -15.0 23.0 2.3 27.4 -2.4
Auckland - Royal Oak/One
/ Tree Hill House 4 1206 24 958 - 1100 1050 22.8 28.0 2359050 -7.6 17.5 2.3 33.0 8.9
Auckland - Onehunga/Oranga/Te
Flat 2 1740 18 555 - 595 575 9.9 21.1 759600 -9.9 6.0 3.9 22.0 14.2
Papapa
Auckland - Onehunga/Oranga/Te
House 2 890 75 573 - 630 620 12.7 24.0 1163800 -14.1 18.3 2.8 31.2 4.8
Papapa
Auckland - Onehunga/Oranga/Te
House 3 2359 51 678 - 768 725 6.6 17.9 1302850 -16.1 25.6 2.9 27.1 -6.1
Papapa
Auckland - Remuera Flat 2 446 9 560 - 620 580 6.4 11.5 985200 -9.2 4.2 3.1 17.2 7.0
Auckland - Remuera House 3 1730 54 800 - 965 913 8.0 14.8 2459550 -3.5 17.8 1.9 12.0 -2.5
Auckland - Remuera House 4 2011 24 975 - 1573 1150 6.5 27.8 3651300 -7.4 15.9 1.6 15.0 10.3
Auckland - Remuera South/
House 3 1310 24 780 - 850 800 3.9 17.6 1542550 -6.6 19.0 2.7 11.3 -1.2
Meadowbank South
Auckland - Penrose/Mt Wellington
Flat 2 465 9 545 - 565 550 10.0 22.2 681550 -6.0 16.4 4.2 17.0 5.0
South
Auckland - Penrose/Mt Wellington
House 3 1307 48 650 - 730 690 7.8 16.0 1137450 -5.6 42.2 3.2 14.2 -18.4
South
Auckland - Mission Bay/Orakei
/ House 3 1119 21 860 - 1000 970 19.3 21.3 1967850 -10.3 7.3 2.6 33.0 13.0
Auckland - St Helliers/Glendowie House 3 1839 30 800 - 953 850 8.3 16.1 1706050 -20.0 4.5 2.6 35.3 11.1
Auckland - St Helliers/Glendowie House 4 1659 15 1000 - 1195 1150 4.5 19.2 2339700 -15.8 -3.9 2.6 24.2 24.0
Auckland - Ellerslie Flat 2 621 15 510 - 570 525 4.0 12.9 750150 -6.4 12.0 3.6 11.1 0.8
Auckland - Ellerslie House 3 1260 30 710 - 850 750 7.9 15.4 1302400 -12.5 14.1 3.0 23.3 1.1
Auckland - Glen Innes/Pt England/
House 3 1272 33 630 - 765 680 7.9 13.3 1203200 -8.4 17.6 2.9 17.8 -3.6
Wai O Taiki
Auckland - Mt Wellington North Flat 2 610 15 498 - 578 550 8.9 23.6 700950 -5.8 12.4 4.1 15.7 10.0
Auckland - Otahuhu Flat 2 506 12 438 - 534 450 0.4 11.1 488050 -10.1 17.4 4.8 11.7 -5.4
Auckland - Otahuhu House 3 1040 21 600 - 700 650 3.2 25.0 919300 -8.9 31.4 3.7 13.3 -4.9
Auckland - Waiheke Island House 2 1676 12 595 - 678 645 1.6 32.4 1273400 -12.0 21.2 2.6 15.4 9.3
Auckland - Waiheke Island House 3 1980 15 759 - 950 893 19.1 42.9 1586250 -28.0 20.3 2.9 65.3 18.8
Auckland - Central West Apt 1 4687 222 400 - 534 465 16.3 16.3 379600 -3.9 -11.7 6.4 20.9 31.6
Auckland - Central West Apt 2 3941 177 500 - 650 580 16.0 11.5 528200 -6.2 -5.2 5.7 23.7 17.6
Auckland - Central West Apt 3 543 9 613 - 943 920 31.4 17.9 978600 -5.5 -5.1 4.9 39.1 24.3
Auckland - Lynfield House 3 1445 27 640 - 718 675 7.1 18.4 1108900 -10.6 19.9 3.2 19.8 -1.3
Auckland - Newton/Grafton Apt 1 893 45 435 - 590 530 24.7 17.8 352300 -10.3 -15.1 7.8 39.0 38.7
Auckland - Newton/Grafton Apt 2 1043 33 590 - 795 690 19.0 21.1 544850 -5.1 -1.5 6.6 25.4 22.9
Auckland - Eden Terrace Apt 2 589 15 590 - 735 650 8.3 12.1 746400 0.2 16.4 4.5 8.2 -3.8
Auckland - Hillsborough House 3 1499 39 650 - 770 720 12.5 21.0 1172950 -3.6 22.2 3.2 16.7 -1.0
Auckland - Meadowbank House 3 750 15 773 - 858 810 7.3 15.7 1711150 -6.7 27.7 2.5 15.0 -9.4
Auckland - St Johns Flat 2 346 9 550 - 600 580 16.0 22.1 812300 -16.2 10.1 3.7 38.4 10.9
Auckland - Mt Wellington Flat 2 343 0 - 0 0.0 0.0 707600 -5.9 16.3 0.0 0.0 0.0
Manukau - Mangere Bridge/Airport House 3 1661 18 679 - 750 700 3.7 25.7 1047850 -14.4 17.7 3.5 21.2 6.8
Manukau - Mangere House 3 2307 33 620 - 700 680 4.6 24.8 916950 -10.2 31.8 3.9 16.5 -5.3
Manukau - Mangere House 4 655 21 765 - 820 800 9.6 36.8 961050 -7.8 33.8 4.3 18.9 2.2
Manukau - Otara House 3 2216 39 650 - 750 700 12.9 35.4 768250 -6.1 30.6 4.7 20.3 3.6
Manukau - Papatoetoe North Flat 2 624 9 550 - 590 580 18.4 27.5 604000 -7.4 11.7 5.0 27.9 14.1
Manukau - Papatoetoe North House 3 904 33 658 - 773 740 13.8 29.8 888600 -3.7 18.9 4.3 18.3 9.2
Manukau - Manukau Central House 3 1260 21 628 - 720 698 14.4 26.9 809800 -7.0 19.9 4.5 23.0 5.8
Manukau - Botony Downs House 3 2360 30 700 - 758 723 4.8 18.5 1254050 -5.6 19.6 3.0 11.0 -0.9
Manukau - Botony Downs House 4 2398 21 790 - 920 850 6.3 21.4 1467950 -4.6 13.3 3.0 11.4 7.1
Manukau - Dannemora House 3 1181 24 720 - 798 755 11.0 18.0 1315350 -3.9 31.0 3.0 15.5 -9.9
Manukau - Dannemora House 4 2806 39 798 - 880 830 2.5 17.7 1426400 -5.1 21.1 3.0 8.0 -2.8

TAX AND PROPERTY INVESTMENT SIMPLIFIED

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NZ PROPERTY INVESTOR 71
RENTAL & SALES STATISTICS JANUARY 2024
trusted data

RENT MEDIAN RENT MEDIAN VALUE YIELD

RENTAL AREA NO. OF
TYPE BEDS PROPERTIES NO. OF
BONDS QUARTILE 1 YR 5 YR 1 YR 5 YR 1 YR 5 YR
RANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE
Manukau - Howick House 2 195 27 560 - 650 610 10.9 27.1 1150000 -1.4 27.0 2.8 12.5 0.1
Manukau - Howick House 3 1687 30 665 - 754 720 9.1 24.1 1280300 -4.5 22.3 2.9 14.3 1.5
Manukau - Howick House 4 1637 12 765 - 875 845 7.0 17.4 1606450 -4.0 20.8 2.7 11.4 -2.8
Manukau - Half Moon Bay/Farm Cove House 3 1443 33 650 - 750 700 7.7 25.0 1347000 -5.1 34.1 2.7 13.5 -6.8
Manukau - Highland Park House 3 1894 48 650 - 750 700 11.1 20.7 1335650 -6.8 42.1 2.7 19.2 -15.1
Manukau - Highland Park House 4 1019 30 763 - 890 800 3.2 27.0 1451700 -11.5 27.6 2.9 16.7 -0.4
Manukau - Pakuranga Flat 2 556 6 543 - 550 550 5.2 22.2 776300 -4.0 16.6 3.7 9.6 4.8
Manukau - Pakuranga House 3 1617 42 638 - 770 710 9.2 29.1 1300250 -0.5 36.2 2.8 9.8 -5.2
Manukau - Manukau and Manurewa
House 3 2362 33 668 - 750 720 6.7 23.1 971300 -7.8 12.5 3.9 15.6 9.4
Heights
Manukau - Manukau and Manurewa
House 4 1922 24 750 - 820 790 5.3 18.8 1143300 -3.8 20.9 3.6 9.5 -1.7
Heights
Manukau - Wattle Downs/Conifer
House 3 1498 24 675 - 750 723 11.2 31.5 958600 -12.7 31.7 3.9 27.5 -0.2
Grove
Manukau - Manurewa North Flat 2 834 12 503 - 534 520 8.3 20.9 564600 -12.8 16.5 4.8 24.2 3.8
Manukau - Manurewa North House 2 840 45 520 - 568 540 8.0 22.7 668600 -9.3 24.4 4.2 19.1 -1.3
Manukau - Manurewa North House 3 4224 144 640 - 700 660 6.5 26.9 809500 -3.3 24.8 4.2 10.0 1.7
Manukau - Manurewa North House 4 924 30 706 - 830 795 13.9 35.4 926500 -9.0 21.0 4.5 25.1 11.9
Manukau - Mangere East House 3 1150 27 650 - 700 680 4.6 24.8 846900 -7.8 28.9 4.2 13.4 -3.2
Manukau - Papatoetoe South Flat 2 1322 15 500 - 550 550 7.8 24.4 617600 -7.7 10.0 4.6 16.8 13.1
Manukau - Papatoetoe South House 3 985 33 680 - 735 700 7.7 25.0 905900 -1.9 22.6 4.0 9.7 1.9
Manukau - Papatoetoe West House 3 1040 24 635 - 700 685 12.3 24.5 845650 -5.2 19.8 4.2 18.4 3.9
Manukau - Weymouth House 3 1410 18 650 - 696 670 11.7 34.0 779800 -9.0 25.0 4.5 22.7 7.2
Manukau - Maraetai/Clevedon House 3 1115 24 650 - 765 720 2.9 20.0 1176400 -7.3 20.0 3.2 11.0 0.0
Manukau - Maraetai/Clevedon House 4 2406 36 820 - 915 850 4.3 18.9 1438050 -9.3 24.8 3.1 15.0 -4.7
Papakura - Takanini/Ardmore House 3 1632 45 650 - 720 680 6.3 25.9 882700 -7.4 25.8 4.0 14.8 0.1
Papakura - Takanini/Ardmore House 4 1333 36 770 - 800 800 9.6 23.1 1047900 -7.9 29.2 4.0 19.0 -4.8
Papakura - Papakura/Drury/Karaka Flat 2 762 6 465 - 519 483 0.6 20.8 607250 -13.0 25.4 4.1 15.7 -3.7
Papakura - Papakura/Drury/Karaka House 2 867 39 520 - 580 550 10.0 29.4 684700 -9.8 26.4 4.2 22.0 2.4
Papakura - Papakura/Drury/Karaka House 3 4538 129 640 - 720 675 12.5 36.4 801250 -9.6 23.8 4.4 24.4 10.1
Papakura - Papakura/Drury/Karaka House 4 2331 60 728 - 850 800 6.7 36.8 1080350 -12.6 20.0 3.9 22.0 14.0
Franklin - Pukekohe/Tuakau House 2 572 27 490 - 550 515 5.1 28.8 682150 -9.8 29.1 3.9 16.5 -0.3
Franklin - Pukekohe/Tuakau House 3 4311 75 570 - 650 600 1.7 27.7 860300 -2.3 29.3 3.6 4.1 -1.2
Franklin - Pukekohe/Tuakau House 4 2761 42 690 - 750 705 6.8 27.0 1012400 -9.7 31.0 3.6 18.2 -3.1
Franklin - Waiuku House 3 1640 24 573 - 670 600 11.1 33.3 785200 -8.8 40.3 4.0 21.8 -5.0
Franklin - Rural Franklin House 3 1891 39 608 - 671 645 12.2 34.4 810700 -12.5 32.3 4.1 28.2 1.6
Franklin - Rural Franklin House 4 1638 18 658 - 810 725 8.2 25.0 1041550 -14.6 34.4 3.6 26.8 -7.0

WAIKATO / BAY OF PLENTY

Thames/Coromandel - Entire District House 2 3947 24 418 - 500 450 0.0 34.3 1036850 1.9 59.5 2.3 -1.9 -15.8
Thames/Coromandel - Entire District House 3 9440 66 480 - 600 550 0.0 44.7 1205400 -1.1 57.9 2.4 1.1 -8.4
Hauraki - Entire District House 3 3310 33 475 - 600 540 8.0 54.3 637250 -2.7 55.5 4.4 11.1 -0.8
Waikato - Huntly House 3 1532 21 505 - 573 550 14.6 57.1 477700 -7.9 37.5 6.0 24.4 14.3
Waikato - Rural Waikato District House 2 935 24 450 - 500 495 10.0 50.0 722300 -3.0 53.6 3.6 13.4 -2.4
Waikato - Rural Waikato District House 3 2977 48 523 - 650 600 9.1 51.9 727950 -5.1 52.5 4.3 15.0 -0.4
Waikato - Rural Waikato District House 4 1054 21 628 - 760 650 0.0 32.7 862950 -10.2 40.7 3.9 11.4 -5.7
Matamata/Piako - Entire District Flat 2 517 9 343 - 415 400 0.0 40.4 528800 -2.6 53.4 3.9 0.0 -8.5
Matamata/Piako - Entire District House 2 777 27 420 - 470 450 4.7 50.0 572750 -6.9 56.1 4.1 12.4 -3.9
Matamata/Piako - Entire District House 3 4764 84 500 - 580 543 8.6 42.9 647750 -7.1 32.5 4.4 16.9 7.9
Matamata/Piako - Entire District House 4 1865 30 530 - 691 600 13.2 42.9 821700 -6.5 36.0 3.8 21.1 5.0
Hamilton - Te Kowhai/St Andrews/
House 2 719 51 514 - 550 530 1.9 34.2 700850 -1.6 51.5 3.9 3.6 -11.4
Queenwood
Hamilton - Te Kowhai/St Andrews/
House 3 4769 108 580 - 650 610 7.0 35.6 795800 -8.5 32.7 4.0 17.0 2.1
Queenwood
Hamilton - Te Kowhai/St Andrews/
House 4 3322 54 670 - 750 700 6.1 27.3 1066850 -9.3 36.8 3.4 16.9 -7.0
Queenwood
Hamilton - Flagstaff/Rototuna House 3 1739 57 630 - 684 650 3.2 30.0 928550 0.6 36.5 3.6 2.6 -4.8
Hamilton - Flagstaff/Rototuna House 4 4053 72 711 - 760 750 9.5 36.4 1038900 -2.5 34.4 3.8 12.3 1.5
Hamilton - Fairfield/Fairview Downs House 2 765 24 480 - 518 500 2.0 34.4 593000 -3.7 50.0 4.4 5.9 -10.4
Hamilton - Fairfield/Fairview Downs House 3 3026 66 550 - 600 580 7.4 38.1 663600 -6.4 45.0 4.5 14.7 -4.8
Hamilton - Fairfield/Fairview Downs House 4 713 24 598 - 658 620 3.3 29.2 771700 -10.2 41.1 4.2 15.1 -8.5

Ray White Hamilton

Online Rentals Ltd MREINZ

Smart investors know experience gets results

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Ray White Hamilton Property Management | 07 839 7066 | pm.hamiltonnz@raywhite.com

72 NZ PROPERTY INVESTOR
RENTAL & SALES STATISTICS JANUARY 2024
trusted data

RENT MEDIAN RENT MEDIAN VALUE YIELD

RENTAL AREA NO. OF
TYPE BEDS PROPERTIES NO. OF
BONDS QUARTILE 1 YR 5 YR 1 YR 5 YR 1 YR 5 YR
RANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE
Hamilton - Hamilton East/University Flat 2 787 15 399 - 463 430 10.3 34.4 512800 -3.2 39.6 4.4 14.0 -3.7
Hamilton - Hamilton East/University House 2 655 51 440 - 520 480 3.2 26.3 672850 -3.6 42.9 3.7 7.1 -11.6
Hamilton - Hamilton East/University House 3 2001 66 548 - 650 595 8.2 35.2 773000 -7.3 36.3 4.0 16.7 -0.8
Hamilton - Hamilton East/University House 4 914 33 610 - 710 650 7.8 30.0 881450 -8.6 36.3 3.8 17.9 -4.6
Hamilton - Hillcrest/Silverdale/
House 3 1603 45 550 - 610 580 5.5 34.9 791350 -4.5 36.9 3.8 10.4 -1.5
Tamahere
Hamilton - Dinsdale North/Nawton House 3 3321 51 530 - 585 570 5.6 35.7 692500 -4.4 38.5 4.3 10.4 -2.0
Hamilton - Dinsdale South/Frankton House 3 1605 33 525 - 585 550 1.9 34.1 692000 -5.5 50.4 4.1 7.8 -10.8
Hamilton - Hamilton Central/Maeroa/
Flat 2 473 12 365 - 430 383 -1.8 32.1 0 0.0 0.0 0.0 0.0 0.0
Frankton Junction
Hamilton - Hamilton Central/Maeroa/
House 3 1011 57 560 - 660 600 7.1 31.9 745100 -3.9 47.3 4.2 11.5 -10.5
Frankton Junction
Hamilton - Hamilton Central/Maeroa/
House 4 299 6 555 - 650 630 -10.0 20.0 0 0.0 0.0 0.0 0.0 0.0
Frankton Junction
Hamilton - Deanwell/Melville/Fitzroy Flat 2 520 6 395 - 460 400 -2.4 21.2 489050 -6.6 36.6 4.3 4.4 -11.2
Hamilton - Deanwell/Melville/Fitzroy House 2 609 63 470 - 545 500 6.4 31.6 695500 3.2 52.7 3.7 3.1 -13.8
Hamilton - Deanwell/Melville/Fitzroy House 3 3458 78 550 - 620 580 6.8 38.1 735050 1.2 51.0 4.1 5.5 -8.6
Hamilton - Deanwell/Melville/Fitzroy House 4 989 9 600 - 650 650 10.2 28.7 790600 -5.3 33.6 4.3 16.3 -3.7
Waipa - Cambridge/Leamington House 2 626 30 496 - 550 515 7.3 35.5 745100 5.0 53.4 3.6 2.2 -11.6
Waipa - Cambridge/Leamington House 3 2713 42 610 - 700 650 12.1 47.7 819050 -5.6 52.7 4.1 18.7 -3.2
Waipa - Cambridge/Leamington House 4 1338 12 700 - 768 750 15.7 38.9 1106200 -1.7 42.7 3.5 17.7 -2.7
Waipa - Te Awamutu House 3 2512 33 550 - 593 565 7.6 41.3 662100 -7.4 42.2 4.4 16.3 -0.7
Waipa - Rural Waipa House 3 1592 42 550 - 695 600 0.0 53.8 849250 -2.6 56.6 3.7 2.7 -1.7
Waipa - Rural Waipa House 4 1977 30 685 - 800 745 6.4 40.6 1220450 -5.0 50.1 3.2 12.0 -6.4
Otorohanga/Waitomo - Both Districts House 3 2041 30 400 - 525 450 2.3 50.0 453250 -2.6 70.1 5.2 5.0 -11.8
South Waikato - Entire District House 3 4482 87 450 - 525 480 4.3 68.4 430150 -7.8 76.9 5.8 13.2 -4.8
South Waikato - Entire District House 4 913 9 535 - 595 560 9.8 62.3 509900 -9.9 63.7 5.7 21.9 -0.9
Taupo - Taupo Central/Tauhara House 2 581 15 450 - 500 480 14.3 40.4 584400 -2.8 57.1 4.3 17.6 -10.7
Taupo - Taupo Central/Tauhara House 3 1550 27 550 - 623 578 13.3 56.2 685450 -3.3 55.8 4.4 17.2 0.3
Taupo - Taupo West/Taupo South House 3 3498 45 570 - 699 645 17.3 51.1 869050 -5.6 53.2 3.9 24.2 -1.4
Taupo - Taupo West/Taupo South House 4 1895 6 718 - 773 760 16.9 43.4 1062200 -9.8 23.4 3.7 29.6 16.2
Taupo - Rural Taupo House 3 3288 24 443 - 594 470 11.9 56.7 695250 -5.1 65.3 3.5 18.0 -5.2
Western Bay of Plenty - Kaimai/Te
House 2 670 21 537 - 578 560 12.0 60.0 764900 -1.5 52.7 3.8 13.7 4.8
Puke
Western Bay of Plenty - Kaimai/Te
House 3 2922 51 660 - 700 680 9.7 51.1 886850 1.9 59.0 4.0 7.6 -5.0
Puke
Western Bay of Plenty - Waihi Beach/
House 3 3646 27 560 - 650 600 7.1 36.4 1012850 -7.2 57.8 3.1 15.4 -13.6
Omokoroa
Western Bay of Plenty - Waihi Beach/
House 4 1935 15 650 - 750 700 -1.8 41.4 1207450 -10.9 45.9 3.0 10.1 -3.1
Omokoroa
Tauranga - Mt Maunganui Apt 2 617 12 614 - 726 680 15.3 36.0 0 0.0 0.0 0.0 0.0 0.0
Tauranga - Mt Maunganui Flat 2 764 9 545 - 600 575 8.9 40.2 892700 -16.6 36.8 3.3 30.5 2.5
Tauranga - Mt Maunganui House 2 723 33 550 - 650 590 7.3 35.0 1081500 -6.8 34.4 2.8 15.1 0.4
Tauranga - Mt Maunganui House 3 4096 69 663 - 750 693 6.6 28.3 1250650 -7.4 54.5 2.9 15.1 -17.0
Tauranga - Mt Maunganui House 4 1387 18 700 - 918 850 11.8 55.4 1808700 -27.3 45.4 2.4 53.9 6.9
Tauranga - Papamoa Beach House 2 735 30 361 - 628 550 -3.5 31.0 761250 -5.6 54.8 3.8 2.2 -15.4
Tauranga - Papamoa Beach House 3 5512 126 670 - 740 700 7.7 34.6 990100 -6.0 45.6 3.7 14.5 -7.5
Tauranga - Papamoa Beach House 4 3460 24 780 - 850 805 11.0 41.2 1138100 -8.1 42.3 3.7 20.8 -0.7
Tauranga - Pyes Pa/Hairini/Welcome
House 3 4545 60 635 - 725 680 6.3 40.2 819400 -5.6 30.9 4.3 12.6 7.1
Bay
Tauranga - Pyes Pa/Hairini/Welcome
House 4 2906 36 720 - 810 750 1.4 33.9 1027400 -0.2 38.8 3.8 1.5 -3.5
Bay
Tauranga - Tauranga Central/Greerton Flat 2 997 18 454 - 550 513 5.1 46.6 597550 -3.8 33.0 4.5 9.3 10.2
Tauranga - Tauranga Central/Greerton House 2 1419 63 540 - 600 580 10.5 45.0 655950 -6.4 34.0 4.6 18.1 8.2
Tauranga - Tauranga Central/Greerton House 3 4277 81 620 - 680 660 10.0 46.7 729800 -5.6 40.0 4.7 16.5 4.7
Tauranga - Tauranga Central/Greerton House 4 1183 15 710 - 873 780 0.0 44.4 940450 -13.1 38.9 4.3 0.0 4.0
Tauranga - Bethlehem/Otumoetai Flat 2 738 6 533 - 605 550 13.9 48.6 668700 -11.5 44.6 4.3 28.7 2.8
Tauranga - Bethlehem/Otumoetai House 2 875 33 513 - 600 550 0.0 37.5 765850 -3.7 40.0 3.7 3.8 -1.8
Tauranga - Bethlehem/Otumoetai House 3 5052 84 650 - 700 680 4.6 44.1 916400 -13.8 35.2 3.9 21.4 6.5
Tauranga - Bethlehem/Otumoetai House 4 3037 21 750 - 830 790 8.2 43.6 1179350 -8.2 33.0 3.5 17.8 8.0
Rotorua - Holdens Bay/Owhata/
House 3 2010 24 539 - 626 583 4.1 53.4 638850 -3.4 54.4 4.7 7.8 -0.6
Ngapuna
Rotorua - Kuirau/Hillcrest/Glenholme Flat 2 463 12 408 - 480 465 13.4 50.0 0 0.0 0.0 0.0 0.0 0.0
Rotorua - Kuirau/Hillcrest/Glenholme House 2 786 30 430 - 490 455 -1.1 35.8 508050 -5.5 42.3 4.7 4.7 -4.5
Rotorua - Kuirau/Hillcrest/Glenholme House 3 1952 27 550 - 625 600 5.3 60.0 595050 -6.7 35.5 5.2 12.9 18.1
Rotorua - Pukehangi South/
House 3 2112 21 570 - 680 620 6.9 44.2 676100 -5.0 38.8 4.8 12.5 3.9
Springfield

NZ PROPERTY INVESTOR 73
RENTAL & SALES STATISTICS JANUARY 2024
trusted data

RENT MEDIAN RENT MEDIAN VALUE YIELD

RENTAL AREA NO. OF
TYPE BEDS PROPERTIES NO. OF
BONDS QUARTILE 1 YR 5 YR 1 YR 5 YR 1 YR 5 YR
RANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE
Rotorua - Ngongotaha/Pleasant
House 2 994 27 450 - 500 480 4.3 65.5 464050 -7.7 52.5 5.4 13.1 8.5
Heights/Koutu
Rotorua - Ngongotaha/Pleasant
House 3 4612 63 548 - 620 570 3.6 50.0 540450 -3.2 63.8 5.5 7.1 -8.4
Heights/Koutu
Rotorua - Ngongotaha/Pleasant
House 4 969 21 600 - 645 620 5.1 33.3 713000 -8.7 44.8 4.5 15.1 -7.9
Heights/Koutu
Whakatane - Whakatane Flat 2 482 0 - 0 0.0 0.0 468400 -8.7 38.7 0.0 0.0 0.0
Whakatane - Whakatane House 2 786 15 420 - 540 480 11.6 43.3 677800 -0.1 72.4 3.7 11.8 -16.9
Whakatane - Whakatane House 3 3937 39 560 - 620 590 7.3 47.5 804750 -1.2 66.9 3.8 8.6 -11.6
Whakatane - Whakatane House 4 1441 12 585 - 650 610 6.1 27.1 0 0.0 0.0 0.0 0.0 0.0
Kawerau - Entire District House 3 1881 21 420 - 496 450 12.5 65.4 393150 -11.7 57.9 6.0 27.4 4.8
Opotiki - Entire District House 3 1287 15 450 - 490 470 11.9 67.9 497000 -11.1 54.4 4.9 25.9 8.7

HAWKE’S BAY / GISBORNE

Gisborne - Gisborne Flat 2 498 6 468 - 493 480 6.7 68.4 0 0.0 0.0 0.0 0.0 0.0
Gisborne - Gisborne House 2 1240 27 500 - 590 550 10.0 73.5 519400 -2.7 108.1 5.5 13.0 -16.6
Gisborne - Gisborne House 3 5788 54 600 - 700 650 5.7 80.6 612300 3.9 113.0 5.5 1.7 -15.2
Gisborne - Gisborne House 4 1741 15 675 - 750 700 3.7 62.8 758500 -8.8 79.1 4.8 13.8 -9.1
Wairoa - Entire District House 3 1578 12 450 - 485 470 18.1 88.0 0 0.0 0.0 0.0 0.0 0.0
Hastings - Havelock North Flat 2 339 0 - 0 0.0 0.0 638400 -7.2 45.0 0.0 0.0 0.0
Hastings - Havelock North House 3 2356 27 650 - 750 680 -2.9 36.0 964600 -5.0 48.9 3.7 2.3 -8.7
Hastings - Flaxmere House 3 2116 15 490 - 580 520 4.0 48.6 506200 -6.2 77.9 5.3 10.8 -16.5
Hastings - Hastings/Clive Flat 2 1657 24 420 - 480 455 3.4 44.4 508700 -4.1 70.5 4.7 7.9 -15.3
Hastings - Hastings/Clive House 2 1156 42 500 - 570 530 10.4 55.9 624950 -4.0 58.0 4.4 15.0 -1.3
Hastings - Hastings/Clive House 3 6518 78 570 - 650 610 5.2 48.8 710650 -8.8 50.6 4.5 15.4 -1.2
Hastings - Hastings/Clive House 4 1904 12 688 - 763 745 5.7 69.3 847300 -6.3 48.5 4.6 12.8 14.0
Napier - Napier Flat 2 1068 18 445 - 538 490 8.9 48.5 451350 -14.1 42.9 5.6 26.8 3.9
Napier - Napier House 2 1519 33 500 - 580 530 10.4 49.3 627900 -3.3 48.6 4.4 14.2 0.5
Napier - Napier House 3 7731 87 600 - 700 650 8.7 51.2 679650 -9.8 30.2 5.0 20.5 16.1
Napier - Napier House 4 2306 9 600 - 815 740 12.1 51.0 1005750 -5.9 49.1 3.8 19.1 1.3
Napier - Taradale/Awatoto House 2 703 18 530 - 625 560 7.7 45.5 645700 -4.0 37.5 4.5 12.2 5.8
Napier - Taradale/Awatoto House 3 4023 45 628 - 700 655 5.6 42.4 761800 -6.2 39.0 4.5 12.7 2.5
Central Hawkes Bay - Entire District House 3 2192 27 490 - 560 530 17.8 64.6 567400 -8.6 71.6 4.9 28.8 -4.1

TARANAKI
New Plymouth - New Plymouth
Flat 2 479 15 415 - 460 430 0.0 53.6 470750 -3.1 56.4 4.7 0.0 -1.8
Central/Moturoa
New Plymouth - New Plymouth
House 2 473 15 450 - 550 500 11.1 51.5 558000 -4.8 54.6 4.7 16.7 -2.0
Central/Moturoa
New Plymouth - New Plymouth
House 3 2480 51 585 - 680 625 13.6 64.5 607550 -4.5 46.7 5.3 19.0 12.1
Central/Moturoa
New Plymouth - Outer New Plymouth Flat 2 1319 6 405 - 448 420 -2.3 44.8 468400 -8.4 41.2 4.7 6.6 2.6
New Plymouth - Outer New Plymouth House 2 1159 51 460 - 550 500 11.1 47.1 612650 -5.9 39.3 4.2 18.1 5.6
New Plymouth - Outer New Plymouth House 3 7706 120 600 - 680 640 16.4 60.0 698350 -12.1 35.5 4.8 32.3 18.0
New Plymouth - Outer New Plymouth House 4 4152 36 700 - 790 750 13.6 50.0 945250 -1.3 54.7 4.1 15.1 -3.0
New Plymouth - Waitara/Inglewood House 3 2273 15 540 - 575 550 14.6 57.1 509100 -1.3 55.2 5.6 16.1 1.3
New Plymouth - Rural New Plymouth House 3 680 15 458 - 658 510 2.0 45.7 644700 -4.8 60.6 4.1 7.1 -9.3
Stratford - Entire District House 3 1447 18 489 - 550 525 14.1 87.5 469750 -6.9 77.6 5.8 22.5 5.6
South Taranaki - Hawera House 3 2379 36 500 - 550 530 10.4 65.6 441950 -5.4 70.5 6.2 16.7 -2.8
South Taranaki - Rural South Taranaki House 3 2162 30 395 - 500 453 20.8 81.2 367600 -3.0 104.2 6.4 24.6 -11.3
Ruapehu - Entire District House 3 2667 27 400 - 458 420 10.5 75.0 367400 -10.8 66.7 5.9 23.9 5.0
Ruapehu - Entire District House 4 599 6 431 - 468 438 9.5 0.0 461150 -13.3 73.4 4.9 26.2 0.0

MANAWATU / WHANGANUI
Whanganui - Entire District Flat 2 855 18 365 - 421 405 3.8 62.0 360200 -9.8 87.5 5.8 15.2 -13.6
Whanganui - Entire District House 2 2258 63 400 - 470 430 6.7 59.3 427150 -5.4 97.0 5.2 12.8 -19.2
Whanganui - Entire District House 3 8703 126 485 - 550 520 6.1 67.7 486600 -3.0 79.0 5.6 9.4 -6.3
Whanganui - Entire District House 4 2701 21 550 - 640 595 11.2 72.5 656150 0.1 71.1 4.7 11.1 0.8
Rangitikei - Entire District House 3 2484 39 400 - 530 470 4.4 80.8 431100 -7.6 107.4 5.7 13.0 -12.8

STRUCTURED
PROPERTY RENTAL SAFE TENANT
RENT
MANAGEMENT APPRAISAL SELECTION
COLLECTION
Call us on 07 349 3429 or email info@rotoruarentals.co.nz

74 NZ PROPERTY INVESTOR
and Lagoon
Tararua - Entire District House 3 2719 33 400 - 455 430 7.5 79.2 403350 -7.8 86.3 5.5 16.6 -3.9
Horowhenua - Entire District Flat 2 857 18 403 - 436 420 2.4 50.0 391800 -12.5 49.6 5.6 17.0 0.3
Horowhenua - Entire District House 2 2033 39 415 - 481 450 7.1 55.2 479950 -8.8 74.0 4.9 17.5 -10.8
Horowhenua - Entire District House 3 6477 84 475 - 580 530 6.0 64.6 551450 -9.9 57.3 5.0 17.7 4.6
Horowhenua - Entire District House 4 1971 18 585 - 650 625 2.5 43.0 727950 -9.4 48.4 4.5 13.1 -3.6

WELLINGTON
Kapiti Coast - Waikanae/Otaki House 2 1499 21 450 - 530 505 1.0 36.5 678950 -9.9 35.7 3.9 12.0 0.6
Kapiti Coast - Waikanae/Otaki
W House 3 4418 42 585 - 675 615 4.6 46.4 778700 -14.3 31.1 4.1 22.1 11.7
Kapiti Coast - Paraparaumu/Raumati House 2 1404 36 500 - 600 550 0.0 41.0 746850 -0.2 49.3 3.8 0.2 -5.5
Kapiti Coast - Paraparaumu/Raumati House 3 5163 84 620 - 703 650 1.6 44.4 786450 -8.7 29.4 4.3 11.2 11.6
Kapiti Coast - Paraparaumu/Raumati House 4 2640 18 700 - 860 795 7.4 44.5 952700 -11.6 33.4 4.3 21.5 8.3
Porirua - Paremata/Mana/Pukerua
House 3 1396 15 690 - 750 700 2.9 39.4 915550 3.7 39.3 4.0 -0.7 0.1
Bay
Porirua - Papakowhai/Whitby/
House 3 2310 42 699 - 780 730 4.3 35.2 865000 -3.6 32.3 4.4 8.1 2.2
Pauatahanui
Porirua - Papakowhai/Whitby/
House 4 2757 24 800 - 895 850 6.3 28.8 1114000 2.3 36.6 4.0 3.8 -5.7
Pauatahanui
Porirua - Titahi Bay/Onepoto/Elsdon
y House 3 1989 24 658 - 763 750 15.4 68.5 706000 -6.2 39.3 5.5 23.0 21.0
Porirua - Porirua East/Waitangirua
W House 3 2413 30 521 - 600 568 -3.7 33.0 593400 -5.3 41.6 5.0 1.7 -6.1
Upper Hutt - Trentham North/
Flat 2 631 18 470 - 520 499 5.1 42.6 477100 -10.5 52.8 5.4 17.3 -6.7
Wallaceville
Upper Hutt - Heretaunga/
House 3 1623 18 675 - 758 725 11.5 51.0 829300 -10.5 36.2 4.5 24.7 10.9
Silverstream
Upper Hutt - Trentham West/
Flat 2 677 15 470 - 550 500 0.0 40.8 479400 -10.5 42.2 5.4 11.7 -0.9
Eldersley/Clouston Park
Upper Hutt - Trentham West/
House 3 2567 18 644 - 735 680 7.9 38.8 729200 -5.2 34.8 4.8 13.9 2.9
Eldersley/Clouston Park
Upper Hutt - Totara Park/Maoribank/
House 3 2166 30 635 - 700 680 7.9 43.2 691250 -5.5 46.0 5.1 14.2 -2.0
Te Marua
T
Lower Hutt - Stokes Valley House 3 1916 12 600 - 710 665 0.0 46.2 629700 -7.2 42.7 5.5 7.8 2.4
Lower Hutt - W
Western Hills/Haywards House 3 2398 18 669 - 750 700 7.7 45.8 818950 -10.2 29.9 4.4 20.0 12.2
Lower Hutt - Wainuiomata
W House 3 3982 33 595 - 680 640 3.2 48.8 622550 -4.1 47.6 5.3 7.7 0.8
Lower Hutt - Taita/Naenae
T House 3 2244 24 624 - 660 650 4.0 47.7 657450 -4.8 41.7 5.1 9.2 4.2
Lower Hutt - Epuni/Avalon
/ House 2 490 33 570 - 630 620 7.3 55.0 729550 -6.1 29.0 4.4 14.2 20.1
Wellington - Johnsonville/Newlands Flat 2 1084 12 503 - 548 525 0.0 28.0 653300 -4.1 35.0 4.2 4.3 -5.1
Wellington - Johnsonville/Newlands House 2 472 51 550 - 640 560 1.8 21.2 787500 -5.8 35.3 3.7 8.1 -10.4
Wellington - Johnsonville/Newlands House 3 4855 93 665 - 755 700 6.9 27.3 867100 -4.0 26.8 4.2 11.3 0.4
Wellington - Johnsonville/Newlands House 4 2934 21 730 - 800 770 -3.5 11.3 1092300 0.5 32.2 3.7 -4.0 -15.8
Wellington - Tawa/Grenada North House 3 1882 30 648 - 720 675 3.8 35.0 788600 -6.1 28.2 4.5 10.6 5.3
Wellington - Tawa/Grenada North House 4 1514 15 720 - 900 800 9.6 34.5 942950 -6.9 34.8 4.4 17.7 -0.3
Wellington - Ngaio/Kaiwharawhara/
Flat 2 380 12 513 - 594 563 14.9 40.0 593200 -13.2 20.7 4.9 32.4 16.0
Wilton
Wellington - Ngaio/Kaiwharawhara/
House 3 1582 27 695 - 915 750 4.9 26.7 1010100 -9.4 21.8 3.9 15.8 4.0
Wilton
Wellington - Wadestown/Thorndon Apt 1 388 27 380 - 550 510 5.6 2.0 365050 -4.6 19.6 7.3 10.7 -14.7
Wellington - Wadestown/Thorndon Apt 2 313 21 600 - 770 700 0.0 2.9 620350 0.7 12.4 5.9 -0.7 -8.4
Wellington - Wadestown/Thorndon House 3 588 12 800 - 999 880 -16.2 32.9 1206400 -5.7 16.6 3.8 -11.1 14.0

NZ PROPERTY INVESTOR 75
RENTAL & SALES STATISTICS JANUARY 2024
trusted data

RENT MEDIAN RENT MEDIAN VALUE YIELD

RENTAL AREA NO. OF
TYPE BEDS PROPERTIES NO. OF
BONDS QUARTILE 1 YR 5 YR 1 YR 5 YR 1 YR 5 YR
RANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE
Wellington - Lambton Apt 1 941 54 460 - 583 500 14.9 25.0 299450 0.0 -1.6 8.7 0.0 27.0
Wellington - Lambton Apt 2 914 33 580 - 868 675 12.5 17.4 548450 -0.5 17.0 6.4 13.0 0.3
Wellington - Te Aro Apt 1 1212 156 400 - 540 485 2.1 12.8 405800 -5.2 8.5 6.2 7.7 4.0
Wellington - Te Aro Apt 2 1937 108 570 - 744 650 0.0 18.2 663050 1.0 17.6 5.1 -1.0 0.5
Wellington - Mt Victoria/Roseneath Apt 2 396 27 560 - 695 620 5.1 3.3 0 0.0 0.0 0.0 0.0 0.0
Wellington - Mt Victoria/Roseneath House 3 413 12 796 - 975 873 18.0 29.0 1433250 -10.3 13.1 3.2 31.6 14.0
Wellington - Hataitai Flat 2 226 12 555 - 613 595 14.4 38.4 636600 -5.9 25.3 4.9 21.6 10.4
Wellington - Vogeltown/
Flat 2 380 6 535 - 594 570 3.6 35.1 565650 -10.0 19.8 5.2 15.1 12.8
Berhampore/Newtown
Wellington - Vogeltown/
House 2 462 24 579 - 700 650 7.4 30.0 919250 -3.4 25.4 3.7 11.2 3.7
Berhampore/Newtown
Wellington - Vogeltown/
House 3 1199 27 750 - 818 795 6.0 22.3 1025950 -4.9 24.3 4.0 11.5 -1.6
Berhampore/Newtown
Wellington - Island Bay/Melrose House 3 1506 21 715 - 815 788 10.5 17.3 1109050 -6.9 24.7 3.7 18.7 -6.0
Wellington - Miramar/Strathmore House 2 438 24 588 - 681 640 3.2 23.1 901850 -2.7 30.0 3.7 6.1 -5.3
Wellington - Miramar/Strathmore House 3 2038 27 685 - 820 750 -0.7 15.4 983800 -9.3 20.7 4.0 9.5 -4.4
Masterton - Entire District House 2 1129 33 446 - 505 480 10.3 65.5 500000 -9.3 48.3 5.0 21.7 11.6
Masterton - Entire District House 3 4735 69 524 - 583 550 6.8 57.1 543100 -7.8 52.8 5.3 15.8 2.8
Carterton/South Wairarapa - Both
House 2 849 15 420 - 540 500 11.1 44.9 580500 -8.4 47.0 4.5 21.3 -1.4
Districts
Carterton/South Wairarapa - Both
House 3 3597 36 506 - 580 550 0.0 48.6 721900 -2.5 61.6 4.0 2.5 -8.0
Districts

NELSON / TASMAN
Tasman - Richmond/Wakefield/
House 3 3779 66 550 - 650 600 4.7 32.2 814900 -0.4 34.7 3.8 5.1 -1.9
Brightwater/Mapua
Tasman - Richmond/Wakefield/
House 4 2133 18 673 - 730 690 6.2 23.2 978350 -8.4 29.8 3.7 15.9 -5.0
Brightwater/Mapua
Tasman - Motueka/Rural Tasman House 2 1097 24 380 - 460 440 10.0 33.3 638400 -10.3 33.6 3.6 22.6 -0.2
Tasman - Motueka/Rural Tasman House 3 3887 30 500 - 570 550 3.8 42.9 709650 -10.8 30.8 4.0 16.3 9.2
Nelson - Stoke/Nayland/Tahunanui Flat 2 713 12 410 - 488 458 13.1 32.8 453100 -10.7 29.7 5.3 26.6 2.4
Nelson - Stoke/Nayland/Tahunanui House 2 1032 30 473 - 550 513 10.3 38.6 592250 -6.3 21.7 4.5 17.8 14.0
Nelson - Stoke/Nayland/Tahunanui House 3 3960 48 550 - 625 580 5.5 28.9 745700 1.3 30.0 4.0 4.1 -0.8
Nelson - Port Hills/Tahuna Hills House 3 1318 21 520 - 620 550 0.0 30.3 767350 -9.9 21.1 3.7 11.0 7.7
Nelson - Nelson Central/Nelson North Flat 2 607 12 375 - 453 438 10.1 32.7 499750 -4.1 31.8 4.6 14.8 0.7
Nelson - Nelson Central/Nelson North House 2 1095 36 465 - 550 500 8.7 31.6 629500 -5.5 30.3 4.1 15.0 1.0
Nelson - Nelson Central/Nelson North House 3 3428 54 526 - 620 570 0.0 29.5 754700 -5.6 30.9 3.9 6.0 -1.0
Nelson - Nelson Central/Nelson North House 4 1400 15 610 - 733 685 14.2 33.0 1029750 -3.0 27.7 3.5 17.7 4.1
Marlborough - Sounds/Rural
House 3 2645 21 458 - 643 550 13.4 57.1 781350 4.6 61.5 3.7 8.4 -2.7
Marlborough
Marlborough - Blenheim Central Flat 2 858 12 418 - 458 440 2.3 51.7 434150 -8.2 47.7 5.3 11.5 2.7
Marlborough - Blenheim Central House 2 656 24 450 - 490 475 5.6 48.4 522050 -4.9 42.9 4.7 11.0 3.9
Marlborough - Blenheim Central House 3 3183 48 535 - 595 570 11.1 46.2 597650 -2.8 47.7 5.0 14.3 -1.1
Marlborough - Blenheim Outer/
House 3 2726 33 550 - 600 570 9.6 50.0 692200 -1.3 43.4 4.3 11.1 4.6
Renwick
Kaikoura/Hurunui - Both Districts House 3 2704 27 390 - 550 450 12.5 25.0 631600 4.3 50.5 3.7 7.9 -16.9
Buller - Entire District House 3 2107 15 420 - 450 420 5.0 78.7 328600 -0.9 73.0 6.6 6.0 3.3
Grey - Entire District House 3 2594 18 358 - 445 400 12.7 42.9 345150 -0.6 60.5 6.0 13.3 -11.0

WEST COAST
Westland - Entire District House 3 1398 15 400 - 475 450 12.5 36.4 393050 -2.5 48.1 6.0 15.3 -7.9

CANTERBURY
Waimakariri - Rangiora/Kaiapoi Flat 2 794 0 - 0 0.0 0.0 460500 -1.5 45.1 0.0 0.0 0.0
Waimakariri - Rangiora/Kaiapoi House 3 4320 42 500 - 573 550 13.4 44.7 631650 -3.3 49.1 4.5 17.3 -2.9
Waimakariri - Rural Waimakariri House 3 3778 51 535 - 600 560 2.8 31.8 722000 -3.0 51.3 4.0 5.9 -12.9
Christchurch - Redcliffs/Sumner House 3 2218 12 563 - 763 625 6.8 38.9 1062250 0.0 54.4 3.1 6.8 -10.1
Christchurch - Woolston/Opawa Flat 2 915 9 405 - 425 410 0.0 31.4 417700 -2.1 52.3 5.1 0.0 -13.7
Christchurch - Woolston/Opawa House 2 778 48 470 - 524 500 11.6 47.1 540550 2.9 68.1 4.8 8.4 -12.5
Christchurch - Woolston/Opawa House 3 2980 36 490 - 580 540 12.5 38.5 592350 -2.3 58.4 4.7 15.1 -12.6
Christchurch - Woolston/Opawa House 4 897 6 628 - 650 650 23.8 49.4 750750 -7.4 35.6 4.5 33.7 10.2

76 NZ PROPERTY INVESTOR
RENTAL & SALES STATISTICS JANUARY 2024
trusted data

RENT MEDIAN RENT MEDIAN VALUE YIELD

RENTAL AREA NO. OF
TYPE BEDS PROPERTIES NO. OF
BONDS QUARTILE 1 YR 5 YR 1 YR 5 YR 1 YR 5 YR
RANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE
Christchurch - Aranui/Bromley/
House 3 3352 15 480 - 550 500 4.2 31.6 505900 -1.8 59.0 5.1 6.1 -17.2
Bexley
Christchurch - North Beach/New
House 2 1040 30 428 - 550 545 36.3 65.2 521550 -1.4 52.9 5.4 38.2 8.0
Brighton/Southshore
Christchurch - North Beach/New
House 3 2932 21 523 - 587 555 12.1 38.8 595050 -4.2 39.8 4.9 17.1 -0.8
Brighton/Southshore
Christchurch - North Beach/New
House 4 730 9 610 - 800 650 0.0 34.0 697250 -8.3 42.8 4.8 0.0 -6.1
Brighton/Southshore
Christchurch - Styx/Parklands House 3 2255 15 510 - 585 535 7.2 24.4 658300 0.6 39.8 4.2 6.6 -11.0
Christchurch - Styx/Parklands House 4 1775 12 650 - 750 703 8.2 33.9 856500 -4.7 40.0 4.3 13.5 -4.4
Christchurch - Marshland/Redwood House 3 2672 12 524 - 620 583 10.0 35.6 683500 -2.0 44.0 4.4 12.3 -5.9
Christchurch - Marshland/Redwood House 4 2356 9 655 - 733 720 18.0 44.0 890000 -2.5 44.4 4.2 21.1 -0.3
Christchurch - Linwood/Phillipstown Flat 2 1393 27 388 - 435 400 14.3 31.1 394100 -1.3 46.9 5.3 15.7 -10.7
Christchurch - Linwood/Phillipstown House 2 370 87 433 - 515 495 6.5 47.8 459350 -2.0 47.6 5.6 8.6 0.1
Christchurch - Linwood/Phillipstown House 3 1201 42 480 - 568 515 7.3 32.4 519400 -1.8 44.9 5.2 9.2 -8.6
Christchurch - Sydenham/Waltham Flat 2 1063 18 376 - 434 400 5.8 25.0 445350 -2.4 53.3 4.7 8.5 -18.4
Christchurch - Sydenham/Waltham House 2 324 72 469 - 525 500 11.1 35.1 554250 -1.4 52.7 4.7 12.7 -11.5
Christchurch - Sydenham/Waltham House 3 742 45 520 - 600 560 5.7 40.4 627600 -2.9 55.0 4.6 8.8 -9.5
Christchurch - St Martins/
House 3 1559 12 535 - 673 595 13.3 33.1 897200 6.0 70.8 3.4 6.9 -22.1
Beckenham/Huntsbury
Christchurch - Westmorland/
House 3 1652 24 600 - 684 650 18.2 47.7 954250 -3.2 62.8 3.5 22.1 -9.3
Cashmere/Barrington
Christchurch - Westmorland/
House 4 1725 15 700 - 1000 830 4.0 53.7 1244550 -1.4 56.8 3.5 5.5 -2.0
Cashmere/Barrington
Christchurch - Spreydon/Somerfield House 3 2506 48 550 - 645 600 13.2 39.5 663550 -4.3 50.6 4.7 18.2 -7.3
Christchurch - Spreydon/Somerfield House 4 515 12 556 - 623 590 -6.8 20.4 791850 -1.3 43.9 3.9 -5.6 -16.3
Christchurch - Hillmorton/Hoon Hay House 3 2365 27 550 - 600 570 2.7 35.7 643300 -3.4 50.5 4.6 6.3 -9.8
Christchurch - Richmond/Shirley House 3 2102 24 530 - 614 560 8.7 34.3 598900 0.2 48.2 4.9 8.5 -9.4
/ Albans
Christchurch - Merivale/St
Flat 2 930 18 395 - 455 410 2.5 24.2 572800 -9.3 45.3 3.7 13.0 -14.5
West
Christchurch - St Albans North/
House 3 1482 15 578 - 688 600 7.1 39.5 870000 0.3 59.6 3.6 6.8 -12.6
Mairehau
Christchurch - Fendalton/Strowan/
House 3 1507 27 575 - 780 650 11.1 44.4 1193300 -2.1 34.5 2.8 13.5 7.4
Bryndwr
Clutha/Southland - Both Districts House 2 2075 30 320 - 390 350 9.4 52.2 384300 -4.0 74.6 4.7 13.9 -12.8
Clutha/Southland - Both Districts House 3 7355 57 380 - 475 440 15.8 46.7 434700 -4.9 61.1 5.3 21.8 -9.0
Clutha/Southland - Both Districts House 4 2142 9 470 - 580 500 16.3 55.3 555500 -9.3 44.7 4.7 28.2 7.3
Gore - Entire District House 3 2539 24 380 - 480 435 20.8 67.3 379600 -3.9 67.8 6.0 25.8 -0.3
Invercargill - Central Invercargill/Bluff Flat 2 651 15 340 - 400 375 17.2 70.5 310950 -2.4 64.9 6.3 20.0 3.4
Invercargill - Central Invercargill/Bluff House 3 2648 33 438 - 513 465 10.7 57.6 401850 -5.8 61.6 6.0 17.6 -2.4
Invercargill - Suburbs Flat 2 1112 9 310 - 395 380 4.7 43.4 364650 -2.5 51.7 5.4 7.4 -5.4
Invercargill - Suburbs House 2 1015 39 385 - 450 420 7.7 47.4 455850 6.2 72.1 4.8 1.4 -14.4
Invercargill - Suburbs House 3 9191 123 450 - 530 480 9.1 60.0 441400 -2.2 60.2 5.7 11.5 -0.1
Invercargill - Suburbs House 4 2469 18 488 - 580 550 10.0 44.7 614800 -1.8 52.0 4.7 12.0 -4.8

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International, CoreLogic NZ helps clients identify and manage growth opportunities, improve performance and mitigate risk.
CoreLogic NZ provides clients with innovative, technology-based services as well as access to rich data and analytics.

The data is for the month ending October 31, 2023

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78 NZ PROPERTY INVESTOR
FINAL WORD
A DELICATE
BALANCING ACT
The housing policies brought in by the new
coalition government will need to find a
balance of fairness for both landlords and
tenants, writes David Faulkner.
e anticipate significant
W changes in 2024 as the
new coalition government
is set to hit the ground
running, particularly in reversing various
housing policies.
The National Party’s housing
plan focuses on boosting supply by
promoting build-to-rent as an asset
class, reinstating interest deductibility,
and reducing the bright-line test to two
years. Additionally, they plan to revise
tenancy laws to encourage investor
participation in the rental market.
One change with a lot of support
from landlords and many property
managers is returning to a 90-day
no-cause termination. This was well-
documented in the campaign leading up
to the election, allowing landlords to give
notice without reason.
They argue that vulnerable tenants
are being squeezed out of the private
rental sector because landlords are no
longer willing or able to give them a
chance. The fear is landlords will end up
having a tenant who is antisocial and
may cause damage to the property.
While understandable, swift termination
should be straightforward for tenants
causing willful damage, falling behind
David Faulkner 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.
80 NZ PROPERTY INVESTOR
on rent, or disrupting the community.
Landlords leaving due to rising
compliance costs and tenant-friendly
laws is another key factor to consider.
As landlords move on, tenants may
face a housing crunch with limited
affordable options. Under a Labour-led
government, the social housing waitlist
has unquestionably surged. In just six
years, from October 2017 to September
2023, the social housing register
increased from 5,844 to 25,2842, a
staggering increase of over 330 per cent.
Compelling reasons support a return to
previous legislation, granting landlords
the ability to serve notices.
SOCIAL CONTRACT
However, when you become a landlord
there is a social contract that goes
beyond a pure monetary measurement.
Tenants require more security than
landlords, as being a landlord is
voluntary. Of the approximately one-
third of the population that rents, many
would prefer to live in a home they own.
Rising prices in the past decade have
denied many tenants the chance to own
a home.
They are condemned to the rental
market for life. There are also broader
implications for our communities. Rising
family transience, beyond their control,
may lead to a surge in wider societal
issues. Family upheaval during and
after Covid may disrupt schooling,
impacting children’s mental health,
a concern some view as the new
pandemic. Constant school changes
could negatively impact our children’s
education and well-being, leading to
long-term productivity challenges.
With landlords able to give a 90-day
notice without reason, many tenants
may also fear exercising their rights
when there is a legitimate reason to do
so. I know tenants can seek the Tenancy
Tribunal for retaliatory notices, but
proving it is challenging.
It is, therefore, a delicate balancing
act. The country needs a solid private
rental sector, and landlords provide a
valuable housing solution. Making it too
complex leads to a rental stock shortage,
increased rents, and an explosion of
people waiting on the social housing
waitlist. Returning to a 90-day no-cause
termination may not address the issue.
Our priority is ensuring tenants feel safe
and secure in their homes.
BETTER PROTECTION
We should offer landlords better
protection by making it easier to remove
antisocial tenants. Some of the laws
introduced by the previous government
around antisocial behaviour need to be
revised. As things stand, removing an
antisocial tenant is only possible on a
periodic tenancy. This makes no sense.
Then you have to do the following.
• Send three separate occasions
within 90 days of how the tenant has
displayed antisocial behaviour.
• Each time, the landlord must provide
a notice specifying the antisocial
behaviour and the time and location.
• They also need to state how many
notices they have sent.
• The landlord must also apply to
the tribunal within 28 days of the
final notice.
There needs to be greater flexibility
within the law. Antisocial behaviour
severity varies and specifying notice
numbers limits adjudicators in ordering
termination when necessary.
Keeping the termination notice as
is and making the legislation more
landlord-friendly regarding dealing with
antisocial tenants is the best solution. Q
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