Can I have an Open Homes/Private viewings:

These are not considered essential services so cannot take place in person. They could take place via online virtual tours or video conferencing type software, where people aren't required to leave their homes and no in-person contact occurs

What if my house is due to settle during the lockdown?

In lock down, vendors and purchasers will not be able to move in and out of their houses. For this reason, Auckland District Law Society is recommending that settlements be deferred until after the Alert Level 4 restriction is lifted. The party's lawyers will make appropriate amendments to the contract to facilitate this

What if I need to move during the lockdown period?

Travel will be restricted to essential travel only e.g. pharmacy/supermarket trip, so settlements and moving house should be deferred until after the Alert Level 4 restriction is lifted. The parties lawyers will make appropriate amendments to the contract to facilitate this

For rural sales and tenanted property sales: Auckland District Law Society have considered situations where sales may not involve people leaving their home or any in-person contact (e.g. where a property is tenanted and the tenancy will continue after settlement) and have advised that whilst settlement can occur where no one has to have contact, purchasers and vendors may encounter difficulties when trying to get A&I, mortgage instruction, and other legal forms issued and signed. So, deferring settlement may still be the safest option. We would strongly recommend that the parties seek and follow the advice of their lawyers and not assume settlement can or will be able to occur. Physical property inspections cannot occur when we are under Level 4 lockdown

Can I bridge finance:

Vendors/purchasers should talk to their bank or financial services provider in the first instance

What if I have a conditional contract on a property?

These can still be confirmed during lockdown provided no travel/face-to-face meetings are required. If the condition(s) cannot be met during the Alert Level 4 period, then both the buyer and seller should take legal advice and either extend the condition until after the lockdown period or cancel the contract. The party's lawyers will make appropriate amendments to the contract to facilitate this

What if I need to arrange a pre-settlement inspection?

These are unable to take place in person during lockdown, however, if both parties agree, these could take place using video conferencing

Property Management

Rental Viewings:

These are not considered essential services so are unable to take place during lockdown unless done by virtual reality tour or pre recorded video/photos or other technology. If tenants need emergency accommodation, they should contact Work and Income

Routine inspections:

These are not essential services, so should be deferred until after the lockdown period in consultation with the landlord and their insurer

Routine Maintenance:

As this is not an essential service it should be deferred until after the lockdown period in consultation with the landlord

Urgent Maintenance:

If this is related to essential services e.g. power, water, waste, gas then it is likely this can be undertaken during the lockdown period. However, we are awaiting confirmation from MBIE on this matter

Rental increases:

Cabinet has agreed to freeze all rent increases. Rent still needs to be paid during this period, however, if tenants have lost their jobs and need support they should talk to their landlord/property manager at their earliest convenience to work out a payment plan or to see what financial support is available to them.

No cause terminations:

Tenants can not be issued with a 90-day no cause termination notice during the lockdown period. We are awaiting further details from MBIE on this issue

Owner wants to move back into the property during lockdown:

The current law states a landlord must give 42 days’ notice if an owner or their immediate family wish to use the premises for their own use. Under the proposed changes (which are currently under review) this would increase to 63 days’ notice. We are waiting for confirmation in regard to which notice period should be used if this is required

Please stay safe, look after yourselves and your families. We will get through this together.

NB Please note that the following is advice that REINZ has been given at this point in time. This is not legal advice, but provides a recommended approach in certain situations.

So, how is the market?
We are seeing an increase in market energy with strong activity from determined buyers. In short, the market is humming. It’s all over the media, and it’s certainly ringing true in the statistics as well. If you are thinking of selling, it’s the best it's been in years.

What is contributing to the increase in sales volume? The high sales volumes have reduced available listings and with multiple active buying segments, this is resulting in a strong demand for quality properties. Also, an increase in confidence in the housing market which has been underpinned by a relatively strong economy, good employment rates and the low interest rate environment.

Manukau’s statistics
In Manukau, volume is up, stock remained tight, prices up and days to sell stable.
The median sale price for Manukau increased by 4.3% over a one year period and if we look at this data over a five year period, this has increased by 6.8%.

Market highlights
Across NZ, Listing supply has increased to 3.2% compared to the same time last year making it the busiest Jnaury in 4 years. In Auckland, this number increased by 9.7% making it the highest number of residential properties sold in the month of January since January 2016.

In Auckland, median house prices increased by 8.7% to $875,000 – up from $805,000 at the same time last year.

In summary
An extremely positive start to 2020 with all factors pointing towards a busy year ahead.

Only being interested when the market is hot

A lot of people decide to become property investors when house prices are rising.

In reality, you should have been buying three or four years ago. When it is doom and gloom, that is when you should be buying.

Buying in the wrong location

Investors should look for places where there was population growth, infrastructure and employment.

You've got to invest in those locations for growth. It helps people get the next deposit and keeps cashflow robust.

Not getting advice

Property investors should have an accountant with experience in property investment, a property mentor or a financial adviser to talk to. Local property investors associations can be helpful also.

It's important to have a plan and review it regularly

Talk to a lawyer and accountant to get the right ownership structure in place.

Trusts are great for asset protection but bad for tax efficiency. If the property is making losses, you could get stuck there.

Thinking finance is just about getting a loan

Fix parts of your loans on different terms, such as some floating, some fixed for a year, two years and three years, so they would come up for renewal at staggered intervals.

It smooths out the interest expense and means you can avail yourself of opportunities when low interest rates are offered.

Olly Newland cautioned against borrowing too heavily on your own home. "You shouldn't borrow more than the rent from the property will cover."

Not doing the numbers

People don't know the difference between the gross yield of a property - a basic calculation of the rent coming in as a percentage of the purchase price - and the net yield - what they would earn after all the costs were taken into account.

Costs could easily make the difference between a purchase being a good opportunity or a long-term drain on finances. - David Whitburn, project manager at Fuzo Property

Not managing the property well

Investors should ensure they had enough money aside to cover repairs and maintenance, and keep on top of it. Many would end up not putting rents up often enough or not knowing how to deal with problem tenants.

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