Kiwi Mortgages Newsletter
News Digest (Supplied Content)
Auckland, April 16, 2017
Editors Note: The following are news and commentary bits contained in the latest issue Kiwi Mortgages Newsletter sent to us by Rakesh Bansal, Kiwi Mortgages Limited located at 116 Cavendish Drive, Manukau, Auckland. The following should be taken as just views of Kiwi Mortgages Limited and not specific advice. Kiwi Mortgages Limited and Indian Newslink absolve themselves of all responsibility in this connection.
Official cash rate 1.75% (unchanged) – Next review 11 May – OCR & MPS
Mortgage rates continue to evidence upward journey, a trend that started in the fourth quarter of 2016. The housing market showing clear signs of slowing down a little bit – especially in Auckland, thanks to LVR restrictions and of late the tight money policy of banks. No definite answers yet to whether it is just a breather or stretches for extended period of time as the drivers of the housing market (demand/supply gap and worsening) have not gone anywhere.
More houses needed
Whilst no one advocates speculation in property market but the genuine investors role in particularly Auckland housing market cannot be ignored as more new dwelling units are needed to bridge the gap.
Higher interest rates/increasingly tougher lenders credit criteria/further credit curbing regulations from the Reserve Bank of New Zealand might succeed in achieving the short-term goal but might potentially trigger a spiral reaction with nervous selling bringing prices down which is not good for anyone.
Non-banks thriving in tighter lending landscape could potentially be a good short term solution on case by case basis talk to us (Kiwi Mortgages) for detailed discussion.
Landlord ordered to refund
The tenancy tribunal at Manukau has ordered a Manurewa landlord to refund $15,840 of rent and $750 in damages for renting an un-consented garage as a separate household unit. Please also note the insurers also may not cover un-consented additions – is it worth the risk? please consider.
The median weekly rent for a typical New Zealand house (three to four bedrooms) representing nearly half of all rental properties, hit $500 ($380 in 2012) for the first time ever in February this year, new Trade Me Property rental data reveals.
Insulation for Rental Properties – By July 1, 2019, all rental properties will have to be insulated (ceiling and under-floor) and landlords are required to include an Insulation Statement on all new tenancy agreements signed since July 1, 2016.
A landlord who does not make a complete insulation statement or includes anything they know to be false or misleading is committing an unlawful act. Cost could range from around $2000 to $3500. Landlords would be well advised to commence this process now, before the rush starts. You could potentially be eligible for some government grants / council concessions – the insulation cost could mean increased rents but reduced electricity bills and safer, healthier houses.
Meth contamination remains a hot topic but landlords will have to wait longer to find out what the official testing and remediation levels will be set at.
Anti-Money-Laundering Law Changes Same like Banks, other organisations that receive and transfer funds (such as lawyers, real estate agents, accountants and car dealers) will soon require documentation such as proof of identification/funds source.
Changes to the Unit Titles Act – More changes are coming to the Unit Titles Act this year, as announced by the Minister of Building and Construction. Changes will include greater disclosure at the time of purchase, stronger governance and ensuring property maintenance plans are in place. The reason for this is due to larger numbers of apartments being built, and the increase in multi-owner types of accommodation that is becoming available.
The adult minimum wage rate has gone up 50c to $15.75 an hour from April 1, 2017. The starting-out and training rates have also risen by 40c to $12.60.
ACC Levy period 2017-2019: Whether employer or self-employed, your Work levy will go down by an average 10% over the next two years, compared to 2016/17 rates.
Contractors tax – All New Zealand resident contractors can have tax deducted from their pay at a rate of their choosing from April 1, 2017 from 10% up to 100%.
Some fresh insight
With the recent weather events, both here and in Australia, and the earthquakes damaging the Kaikura and Wellington regions, it is an opportune time to review your house and contents insurance – House replacement costs have risen steeply and so has the replacement costs of all the household, electronic equipment that we keep adding without ever realising their aggregate replacement value.
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