Press Releases - NZ Property Investors Federation
Costs increasing faster than rental prices
The latest Consumer Institute cost of living survey shows that general costs in providing rental property have increased faster than rental prices. In addition, wage increases were 66% higher than rental price increases.
“Rental property providers have been keeping rental costs down when many of their costs and the price they have to pay for new rental properties is increasing at a faster rate” said NZ Property Investors’ Federation Executive Officer, Andrew King. “It is also pleasing to see that wages are increasing at a faster rate than rental prices which will continue to help tenants with their living costs”. Read more ....
Healthy Homes standards announced - Briefing Paper from Andrew King, Executive Director, NZ Property Investors Federation
Government has confirmed what the standards will be for their Healthy Homes Bill which was passed late last year. The standards are as expected. Hwever the requirement for energy efficient heaters in the living area and current insulation levels are a disappointment.
Where a heater over 2400 watts is required it must be energy efficient which is likely to mean a heat pump. The NZPIF position was that heat pumps would add around $15pw to rents but were not wanted and would unlikely to be used by many tenants. We thought that just providing a fixed form of heating and leaving it to the owner and tenant to establish what the tenant wanted would have been better. Read more ...
Tenancy Services new bond form designs
Tenancy Services has updated its bond forms to make it easier for landlords and tenants to complete them. The lodgement and refund forms are now one page, to help you print and submit them. We’ve also added extra detail so we get all the right information the first time, and don’t need to come back to you as often. We encourage you to use the new forms every time you need them. The process remains exactly the same. Whenever you need to lodge a bond, request a refund or transfer, or update a bond record, you can simply download a form from our website. Remember – everyone needs to sign the form they’re completing, otherwise there might be delays.
Tax change bad news for tenants
The IRD states that in NZ, tax is applied to a person's net income and there are no restrictions on loss making from any source. However the Government is introducing a Bill to just ring-fence rental property tax losses.
“When you examine the statements made by Labour, we believe these are misguided” said Andrew King, Executive Officer of NZ Property Investors’ Federation (NZPIF). Read more ...
Indirect payment of letting fees may be the unintended outcome
Property managers are to be banned from charging tenants a letting fee from 12 December this year. Read more...
Domestic war zones will increase under proposed tenancy law changes
A Motueka street has returned to normality after three years of turmoil caused by the actions of Housing NZ tenants in one rental property.
Relieved residents say that parents are now letting their kids ride their bikes and scooters on the street and other children are playing in the area again. They describe the last three years as a domestic war zone of loud parties into the early hours, abusive language towards children at the address, and verbal abuse to passers-by. Read more ...
Oral Questions — Questions to Ministers Question No. 2—Housing and Urban Development - Hon Judith Collins questions Hon Phil Twyford
2. Hon JUDITH COLLINS (National—Papakura) to the Minister of Housing and Urban Development: Is he confident that the proposals included in the reform of the Residential Tenancies Act 1986 discussion document will benefit both landlords and tenants? Read the questions here Oral_Questions_-_Judith_Collins_to_Minister_Twyford
Draft Submission - New Zealand Property Investors Federation
Please find attached an update on the NZ Property Investors Federation position on the Residential Tenancies Act Review.
The actual submission is still in development, but this should provide a good impression of what it will contain that hopefully helps in the development of either individual member's or PI association's submissions.
Scotney Williams - RTA Amendments and new Healthy Homes Regulations - Submission Template
Scotney has very helpfully drafted two submission templates for the above two pieces of legislation/regulation.
Here is the submission document (it is one document - page 1 and 2 are on the RTA amendments and pages 3 & 4 are on the new Healthy Homes regulations. Click on the link, it will open in Microsoft Word and print off. You can return it to Capital Property Investors Association (completed, signed and dated) and we will submit them on your behalf. Otherwise you can submit directly (see information below).
Submitting your RTA proposed amendments submission (closing date 5pm Sunday 21/10/18)
You can either email your submission to RTAreform@mbie.govt.nz,
Or post to: Residential Tenancies Act Reform
Housing and Urban Branch
Building Resources Markets
Ministry of Business, Innovation and Employment
PO Box 1473
Submitting your Healthy Homes regulations submission (closing date 6pm Monday 22/10/18)
- email your submission to email@example.com, or post your submission to
Healthy Homes Standards
Housing and Urban Branch
Ministry of Housing and Urban Development
PO Box 1473
The Ministry of Business Innovation and Employment (MBIE) has released two reviews that will have an enormous impact on our industry. You only have a short time to have your say on these proposals.
They are the Residential Tenancies Act and what standards should be imposed as part of the Healthy Homes Guarantee Act.
The NZPIF and PIAs around the country will be making submissions. However tenant groups have been organising people to make submissions on these two issues and currently more tenants have had input than rental property providers. It is imperative that you and as many rental property owners as possible have your say. Read more ...
Rental System in Not Broken
Today’s CoreLogic Market Pulse report shows that rents haven’t been outpacing property costs or people’s wages. The rental system is not broken as some have been vocally saying.
“Landlords are very aware that housing in New Zealand is expensive and the CoreLogic data shows that they are doing their best to keep rental price increases as low as possible. This is completely opposite to the commonly held view that rental property providers are profiting at the expense of tenants”, says Andrew King, Executive Officer of NZ Property Investors’ Federation (NZPIF) Read more ...
Rental property WOF
The Green Party has today relaunched a campaign to introduce a rental property Warrant of Fitness.
“Private owners provide around 85% of rental properties in New Zealand. Do we really think that making it harder and more expensive to provide those rental properties is going to improve rental affordability and choice for tenants?” asks Andrew King, Executive Officer of the NZ Property Investors’ Federation (NZPIF). Read More ...
Proposed standards need to be cost effective
Government has released proposed standards for their Healthy Homes Guarantee Bill. This covers improved standards to rental properties that are additional to the rental property Minimum Standards Act that was passed in 2016. Read more ....
A landlord’s wish list
“Government has outlined changes they want to undertake to help tenants, but the NZ Property Investors' Federation (NZPIF) would also like to see changes to help those providing rental properties,” says Andrew King, Executive Officer of the NZPIF.
Around 80% of Tenancy Tribunal time is taken up with tenants not paying rent. It is a huge issue for the industry and needs to be addressed. Read More ...
Rent Arrears, A Big Issue for the Rental Property Industry - 8 August 2018
"Rent arrears are by far the largest reason for applications to the Tenancy Tribunal" says NZ Property Investors’ Federation Executive Officer, Andrew King. "It can also take many weeks to even get a Tenancy Tribunal hearing, while tenants can sit in a property without paying rent. Without a Tenancy Tribunal order you cannot get a non-paying tenant out of your property. Even when you do, it can then take many more weeks to get a replacement tenant". Read more...
Andrew King's response to Renters United blueprint for change - 1 August 2018
Investment houses are fairly taxed - an opinion piece by Andrew King - 3 July 2018
A study from the tax working group and comments from an economist have been used recently to claim rental property is under taxed and rental property buyers have an advantage over home buyers. Both the study and the comments are incorrect.
Andrew King wrote this opinion piece, published in the NZ Herald on 3 July, which is an overview of all the points he has been making about tax on rental properties. Read the full article now.
Chief scientist recommends higher safe meth level
The New Zealand Property Investors' Federation welcomes Sir Peter Gluckman's report into the negative health effects of methamphetamine (meth).
"It seems that a considerable amount of money is being spent on a problem that doesn't appear to exist" says NZPIF Executive Officer Andrew King.
Gluckman’s recommended level of 15 is still 300 times lower than the lowest dose recorded to have a pharmaceutical effect. Read more ...
Short supply of houses increases rents and creates working poor
"The last few years have seen record population growth which has caused a sudden need for extra housing" said NZPIF Executive Officer, Andrew King. "While the focus has been on house prices and first home buyers, little attention has been paid to the drastic need for extra rental accommodation".
This fact demonstrates that, while the Salvation Army has said that high rents are creating the working poor, the problem is also one of insufficient supply of rental housing. Read more ...
Trend of Rising Rent Continues
Just released April rental statistics show that New Zealand rental prices have continued to grow over the past year.
In order to remove monthly variations, the NZ Property Investors' Federation averages three months of rental prices for the year ended April 2018 and compares it to the same period in 2017.
Overall, rental prices are up 4.4% to $433 per week. This is about the same price rise compared to the year ended April 2017 when rents rose by 4.2%. Read more ...
Questioning the Tax Working Group’s property calculations
The Tax Working Group (TWG) appears to be showing an unbalanced approach to rental property investment, by using incorrect calculations and inconsistent assumptions to assess relative tax rates for different asset classes.
In their background paper "Future of Tax" the TWG say that "property remains under taxed compared to other investments. For instance, any profits from the sale of a long term property investment generally isn't taxed." This is misleading as the IRD has confirmed that similar profits from the sale of shares, farms, businesses and other assets that grow in value are also untaxed. Read more ...
Rental prices continue to rise
Just released March rental statistics show that New Zealand rental prices have continued to grow over the past year.
"There have been so many cost and regulatory increases over the last few years that it isn't a surprise that rental prices are increasing as they are" said NZPIF Executive Officer Andrew King. "Unfortunately the situation looks likely to continue." Read more ....
No good outcome from ring-fencing losses
Stuart Nash announced today that “In conjunction with the recently announced extension to the bright-line test, ring-fencing losses from rental properties would make property speculation less attractive and level the playing field between property investors and home buyers". Read more ...
Over half of rentals don't have a letting fee
Government is looking at introducing a law banning tenants from being able to pay a letting fee when securing a new rental property.
A tenant advocacy group in Scotland called Shelter, successfully lobbied to have a ban on letting fees introduced in that country in 2012. Shelter then produced a report in 2013 which showed that the ban was successful and did not result in rental price increases. Read more ...
Should letting fees be abolished?
The NZ Property Investors' Federation (NZPIF) doesn't think legislation to prohibit the charging of letting fees is required. Read more ...
No immediate answers in housing stocktake
“The NZPIF agrees with the authors of the Housing Stocktake released today that private rental housing will continue to feature prominently in our future housing landscape”, says Andrew King, Executive Officer.
“The Housing Stocktake does not have any new information, but it is interesting to have it in one place,” he says. Read more ...
Reserve Bank's Announcement Welcomed - 29 November 2017
The NZ Property Investors' Federation (NZPIF) is pleased with the Reserve Bank's announcement that LVR restrictions are to be eased for home buyers and rental property providers” says Andrew King, executive officer of the NZPIF. Read more ...
Landlords offer stable tenancies - 15 September 2017
A survey of 816 rental property owners shows that 49% would like their tenants to stay in the property for a very long time as they have no intention of selling. Another 12.7% would like them to stay for at least the next 10 years after which they may start thinking about selling the property. Read more ....
816 landlords react to Labour's housing proposals - 13 September 2017
The NZ Property Investors' Federation (NZPIF) received 816 responses to a survey of rental property owners giving their thoughts on a variety of matters currently affecting their industry. Read more ...
Labour needs to front up on housing policies - 11 September 2017
To assist voters in their decision making on September 23, Labour needs to front up on the cost of their housing policies for rental property providers and their tenants.
In last week’s economic overview, BNZ Bank Economist, Tony Alexander, pointed to two Labour policies that he believes would lead to higher rental prices. Read more ....
One sided review of renting - 23 August 2017
Tenant advocates have produced a report calling for widespread changes to the rental industry that if introduced would cause more harm for the tenants they represent than good.
The advocates admit that their findings are not representative and that the nature and timing of the review meant they were more likely to hear from people sharing negative experiences. However this didn't stop them from using the report to call for a string of changes to the rental property industry. Read More ...
Is a WOF for rental properties the answer? - 17 August 2017
Wellington Council is introducing a voluntary Warrant of Fitness for rental properties that they intend to make compulsory in three years. The council says that they want to raise standards and that "every Wellingtonian deserves a warm dry home". Read more ....
New NZ Standard for meth contamination released today - 29 June 2017
“The NZ Property Investors' Federation is very pleased to see the release of the NZ Standard for meth contamination today” said Andrew King, executive officer read more ...
Increase will benefit low income families - 25 May 2017
The NZ Property Investors' Federation (NZPIF) congratulates the Salvation Army for their advocacy work that has seen the accommodation allowance increase for low income families ... read more
Tenants’ liability for damage - 23 May 2017
“The NZ Property Investors' Federation is pleased that Government is taking action to remedy the situation of tenants not being responsible for damage they accidently cause in rental properties,” says Andrew King, Executive Officer of the NZPIF. However the general principle of the bill is that tenants are still not liable for accidental damage they cause and this is very disappointing. Read more ...
Investors’ tax benefits overstated - 14 May 2017
Labour has announced that they are removing the ability of rental property providers to offset losses. They call it a speculation tax loophole, but it is a tax provision available to all investments. Read more ....
Well maintained properties make good sense - 27 April 2017
“The NZ Property Investors' Federation promotes good maintenance of rental properties to its members. This makes good business sense as tenants of well-maintained properties are likely to stay longer, meaning lower vacancy rates,” says Andrew King, Executive Officer. Read more ....
It's always hard to buy a home - 12 April 2017
“Many people claim that housing has never been less affordable and that it is an impossible dream for today's young people”, says Andrew King, Executive Officer of the NZ Property Investors’ Federation. “While these well-meaning people believe they are standing up for young first home buyers, they may in fact be doing them a disservice.” Read more....
Property Bright Line Test working well - 3 February 2017
“Recent CoreLogic data shows that flipping or rapid on-selling of houses is not as common as people may believe” says Andrew King, Executive Officer of the NZ Property Investors’ Federation. Read more ...
Rental property providers reject accusations - 24 January 2017
The New Zealand Property Investors' Federation (NZPIF) rejects accusations made against rental property providers by the Monte Cecilia Housing Trust.
Trust Chief Executive Bernie Smith said "When the government increases housing subsidies for families, some property owners put the rent up in accordance with the increase, so the family isn't any better off". Read more ...