We do get asked a lot by out of town investors on our knowledge and opinion of the Hawkes Bay urban property market. So here it is: Over the past two weeks there have been plenty of articles in the local paper (HB Today) on facts that impact any residential property investor’s future. Let me just list the points. Read more!
I found we get a lot of information on property all the time, but often it felt as if property news was ever only about Auckland Wellington and Christchurch.
We were keen to get information together that affects the Hawke’s Bay market and I have now tried to collate what I could find.
This is data directly related to property as well as economic information that I think is significant. I welcome comments and information that could be of interest to anyone investing in residential property in Hawke’s Bay. This will sometimes just be the figures I took from an article, sometimes the whole article. Often it will be information from Hawke’s Bay, sometimes national information relevant to Hawke’s Bay. I will leave the interpretation to you.
WHAT IS DRIVING HOUSE PRICES AND RENTS UP? A commonly asked question and main factors quoted are: Number of sales low, Interest rates low, Official cash rate low, Immigration up, building consents up, mortgage approvals up, rents up. While we get bombarded with information on those factors, we are often frustrated with the lack of data available for the Hawkes Bay urban area. This is why we have decided to watch out for scraps of information to back up our anecdotal evidence on market development. We will do that under the heading “Housing demand Hawkes Bay”.
Consents for houses are up in Hawkes Bay but there is concern that there is a land shortage. Statistic New Zealand figures: 40 new dwellings were granted consent this January – twice that of last January (2015) (HB-Today 05-03-2016 P 13)
CHINESE VISITOR NUMBERS SET TO GROW – Currently 4 per cent of Chinese have a passport. This is expected to grow to 20% by 2025. (HB-Today Sat 05-03-2016 P 3)
RENT DEMAND AT RECORD HIGHS
Over the past 12 months we have experienced increasing and unprecedented demand from tenants for rental properties in all categories. This morning’s paper hints again at one of the causes:
“Migration still climbs
New Zealand saw another record net gain in migrants of 65,900 in the year to January,driven by increased arrivals from asia and Australia. The annual gain in migrants has set records for the past 18 months. Arrivals rose 10 per cent to 123,000 in the January 2015 year, while departures fell by 1 per cent to 57,100.” (Source: HB Today 26-02-2016)
We are actively looking for rental properties to manage!
We have recently had a fire at one of the properties we manage. A very frightening and costly experience. It is important for tenants to know, that insurances will examine if the fire has been caused by the tenant. We have just recently installed appr. 160 new 10 year life thermoptec smoke alarms to ensure all properties we manage have the best smoke alarms available to us. This is why! We were always shocked by the number (up to 50%) of smoke alarms we found with an empty or no battery or the smoke alarm removed, when we inspected properties. – Please watch the video – you can hear the smoke alarm! – No one got injured. RESPECT FIRE SAFETY!
During recent round of inspections we came across a number of properties where tenants have put up an inflatable pool. As a landlord we have a responsibility to act if a tenant elects to put up a pool in the garden that is not compliant with a variety of rules and regulations. No one wants an accident and no one wants to take responsibility for someone else’s actions.
Under the RTA (Residential Tenancies Act) the tenant is responsible for his and his visitors’ actions. Any inflatable pool with a water level higher than 400 mm of water is non-compliant. It is therefore necessary for landlords to be aware of the regulations and issue a 14 day notice to tenants if their pool does not comply. With that notice we attach advice about rules and where to get more information. You will find all the rules on both coucil’s websites:
NAPIER: http://www.napier.govt.nz/services/building-consents-information/swimming-pools Read more!
We are often asked by owners to write into our tenancy agreement that at the end of the tenancy the tenant has to have the carpets cleaned professionally.
Under the Residential Tenancies Act we cannot do that. The tenant must deliver the carpet back to us in a clean and tidy condition – not more – not less. Unfortunately, the definition of what is reasonably clean and tidy varies from person to person and we have to be able to prove (that is why we take lots of entry inspection photos) that the carpet was clean before and was not after.
The only situation where we can specify the need for carpet cleaning, is if the tenant has permission to have a cat or a dog, in which case we insert the following clause into the tenancy agreement:
“The landlord will allow the tenant to keep ………..
This permission is also only granted on the condition that the tenant agrees to have the carpets professionally cleaned by CARPET TECH Phone: 021-0418982 06-8444320) upon vacating the property as there may be health and safety issues arising out of having the dog on the property. (allergies of future tenants)
Equally, the tenant can expect a clean and tidy carpet at the beginning of the tenancy.