Propertyscouts Invercargill

July Newsletter - 2nd Jul 2018

July Newsletter

Propertyscouts NZ Monthly newsletter – 2 July 2018

Methamphetamine. The great NZ myth?: Unless you haven’t heard…the Government have announced that we’ve all been ‘sucked in’ over methamphetamine (meth) contamination in rental properties. Apparently a bit of meth contamination does us no harm at all according to the Governments now retired head scientist, Sir Peter Gluckman. Really? There is no doubt that a huge testing and remediation industry has been built on the back of the meth hype. Millions of dollars have been spent on laboratory testing and cleaning up rental properties that wouldn't now be considered sufficiently contaminated to warrant anything more than a good ‘scrub down’. To us here at Propertyscouts the release of the Gluckman report was bitter sweet. On the one hand we really feel for the landlords out there who have unnecessarily spent thousands cleaning up their properties. On the other hand the simple and cost effective screening tests we at Propertyscouts implemented have saved our landlords thousands in unnecessary laboratory testing. So where to from here? Unless specifically asked not to, we will continue to screen for meth between tenancies. Any level of contamination will result in us taking action against the tenant/s, although it seems highly likely that the Tenancy Tribunal will only be supportive of a claim where the level of contamination exceeds 15 mg per 100cm2 – the ‘new’ level released in the Gluckman report.

Demand pushing up house prices: The Otago Daily times recently reported that the Dunedin housing market is on a roll with property stock barely meeting demand. Pressure is building on various property fronts, from population growth, the attraction of high rental yields, low interest rates and local gross domestic product growth, Colliers’ valuation director Joe Chapman said. According to the article a lot of Dunedin Landlords are “getting out” of the market as a result of having to insulate their properties in the face of the Healthy Homes Bill. Previously rented properties are being sold into the ‘home ownership’ market which is putting a huge strain on the Dunedin rental market resulting in pressure on availability and rental increases. For the full article follow this link: https://www.odt.co.nz/business/big-demand-pushing-dunedin-prices

What is Wealth? I read recently that wealth can be defined as “owning assets that produce income”. The author of the article went on to describe the 8 characteristics of Desirable Assets that Produce Income as being?

  1. Produces stable, predictable cash flow.
  2. Resistant to market cycles.
  3. Tax-advantaged.
  4. Able to be safely leveraged.
  5. In perpetual demand and not dethroned by the latest technological innovation, the mood on Wall Street, or a war in the Middle East.
  6. Doesn’t decline in value (may not skyrocket, but at least keeps up with inflation).
  7. Low hassle. Generates income largely on its own.
  8. Can be passed along to next generation.

Looks like he was describing rental property ownership. Not that we needed any convincing!

 

Please help our online profile: If you are happy with the service we offer then go in the weekly draw for a nice bottle of wine by writing some POSITIVE feedback about us on Google:

https://www.google.co.nz/webhp?sourceid=chrome-instant&rlz=1C1FLDB_enNZ540NZ540&ion=1&espv=2&ie=UTF-8#q=propertyscouts+Dunedin

Rental Market update: As indicated in the section above regarding demand pushing up house prices in Dunedin there is a shortage right across the country for good quality rental properties and here at Propertyscouts we need more properties to meet tenant demand. If you know of anyone with a rental property we’ll give you 3 months free property management on your own rental property if we are fortunate enough to pick up the management.

Maintenance: Thankyou to all of those landlords across NZ who responded positively to our recent mailout dealing specifically with rental property maintenance. It was a timely update on the responsibilities of landlords and us as property managers when it comes to carrying out maintenance on rental properties.

Insulation: The clocks ticking folks. Have your rental property insulated before 1 July 2019 or face the possibility of a $4000 fine.

FAQ: Lawns and gardens. Who’s responsible – the tenant or the landlord? Tenants are responsible for keeping lawns and gardens reasonably tidy, unless the landlord has agreed to do this. If the tenant wishes to prune or cut back any trees or shrubs they should first get the landlords permission and the tenant will then be responsible for removing the cuttings. Landlords are responsible for pruning and maintaining trees, shrubs and hedges and they must remove any cuttings. Landlords must also ensure that any trees, shrubs and hedges on the property are safe – for example they have not been damaged by storms or aren’t growing too close to power lines.

New Propertyscouts franchise: We’re getting to be bigger than Ben Hur! Our 13th NZ franchise is about to set up shop in the ‘greater Wellington’ region. The owners of the new franchise, Mark Roach and Erica Meuli have previous experience in the ownership of supermarkets so they will be a great ‘fit’ with our other franchise owners. More and more we are seeing the benefits of having a nationwide network of Propertyscouts businesses. Tenants moving around NZ seek us out for the great service we are able to offer them and landlords who diversify their property portfolios around the country can rely on our services (including our ‘signature’ rental guarantee) in more locations.

Disclaimer: Given the opinions expressed in parts of this email it’s important that we make it clear that the contents of this email are opinions and observations and made in good faith. We suggest that in all cases independent legal and financial advice is sought.

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