Wellington Propertyscouts

Mid December 2017 Wellington Propertyscouts Newsletter - 15th Dec 2017

Spreading the Christmas cheer:  There’s nothing worse than getting insignificant gifts that you know you will never use and we don’t want to add to your stress in that regard.  So, instead of sending you a gift destined for the rubbish bin (or to use as a re-gift at your next Xmas party), on behalf of all of our great property owners, Propertyscouts Wellington will be making a donation to Cure Kids.  Cure Kids does a great job in medical research in an effort to help save, improve and extend the lives of children with medical conditions. Some of their research has resulted in practical treatments being implemented worldwide.

Foreign Buyer Ban: Unless you’ve been living in a cave for the last 24 hours you would probably have heard of the foreign buyer ban that has just been given the green light. This puts a stop to foreign investment unless foreign buyers can show they are either increasing the number of residences, then selling them or they are converting the land to another use. What’s more, if they have residential property and then choose to leave the country, they are required to sell the house to enable ‘first home buyers’ to get into the market. We can see a few problems with this strategy, including, what if their house is a multi-million dollar mansion? Will it still need to be sold to help first home buyers? What if you are not a citizen but a long time resident and for whatever reason you go back to live overseas for a time, will you be required to sell?  Finally, will this Bill have a noticeable affect? An REINZ survey of 173 real estate agents revealed that currently only 3.8% of buyers are from overseas.

QV house price index:  Once adjusted for inflation, national house values are up by 4.4% year-on-year, leaving the national average value at $664,485.  According to a QV spokesperson national value growth was led by stronger growth in Wellington (up 9.8% over 12 months, $629,289), Dunedin and many other regional centres.  Easing of the LVR’s is likely to improve activity and demand in the housing market through the summer months the spokesperson said.

Property Investment vs Bitcoin:  Up until a couple of months ago most of us wouldn’t have even known what bitcoin was.  In fact, do we still even know what it is?  Wikipedia tells us that bitcoin is a ‘cryptocurrency and worldwide payment system. It is the first decentralized digital currency, as the system works without a central bank or single administrator’.  Perhaps you need to be under the age of 17 to understand what that means.  We still think that there’s security in bricks and mortar, but information from a local broker claimed that $150 invested in Bitcoin 6 years ago would now be worth a staggering $1.5 million! Now where did I park my time machine?     

Christmas Day Jokes: Q: What Carol do they sing in the Outback? A: Oh Camel ye faithful; Q: What do you call someone who is scared of Father Christmas? A: Santa Claus-trophobic.

FAQ:
Q:  As a landlord what are my obligations to fix or repair my property during the term of a tenancy? 
A:  Landlords have an obligation under the Residential Tenancies Act to provide and maintain premises in a reasonable state of cleanliness and provide and maintain the premises in a reasonable state of repair having regard to the age and character of the premises. 
Landlords who don’t meet these standards may be committing an unlawful act and tenants may sue (for exemplary damages) the landlord for breaching these standards or not meeting them.
Repairs and maintenance need to be addressed in a timely manner to prevent tenants taking Tribunal action.  Where a tenant can show that repairs have not been carried out in a timely manner or they’ve dragged on too long then our experience is that generally, they will be supported by the Tribunal.      

Next Newsletter:  Next year!  Wednesday 3 January 2018. 

From all of us to all of you... Have a very Merry Christmas & a Happy New Year

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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