tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Saturday, December 7th, 8:03AM

News

rss
Latest Headlines

Homestar launch prompts cost concerns

Property investors have given a lukewarm welcome to the launch of the Homestar property ratings scheme, citing costs and the possibility of compulsory accreditation as problematic.

Wednesday, November 10th 2010, 12:00AM 1 Comment

by The Landlord

The scheme is an initiative from the New Zealand building industry and aims to provide a comprehensive home rating system to help kiwis create healthier and more energy efficient homes.

Alex Cutler, CEO of the New Zealand Green Building Council, a Homestar joint venture partner, said the scheme "is expected to have an impact on property values, with a higher star rating providing a competitive edge for some houses on the market."

Martin Evans, president of the New Zealand Property Investors' Federation, was less convinced.

When it comes to rental property he said, "I can't really see tenants taking much notice."

However, Evans did say a higher rating in the present depressed market could prove beneficial as "any edge is important when there's not a lot of demand."

He said the Federation was not opposed to such a rating scheme but does not believe at present that the scheme would result in higher rated properties commanding higher rents.

Instead Evans said he thought the impact would be felt for owners of lower rated property, who would be forced to rent their properties for less.

The Homestar service provides a free online calculator that allows people to ascertain measures they can take to make their homes more energy efficient, though at present apartments are not included in its online calculator.

However, the Homestar Certificate Assessment, which provides a qualified rating for a property, requires validation by a third party.

Evans said the costs of assessment were a concern and that if the scheme became compulsory the Federation would lobby for a system where the trade people conducting any improvement work could also provide accreditation.

The issue of cost and compulsion was also highlighted by Auckland Property Investment Association president David Whitburn.

He said that with property investors already facing increased GST, rate rises in Auckland, Emission Trading Scheme costs and the recent Budget tax changes on depreciation "it's going to be another cost."

He believes the greatest impact will be felt by investors with older properties that would require more work.

On a more positive note for those with properties in better condition he believes the assessment cost would prove to be "relatively cheap" due to the fact higher rated houses could be rented for a higher price.

For those with higher rated property Evans believes the scheme is "definitely a marketing tool" as he says a five-star rated property could command an additional $10 a week over a three-star home.

He also said he believed that under a Labour/Green government the scheme would become compulsory, a view supported by comments from Green Party housing spokesman Gareth Hughes.

 "It's a wasted opportunity that the government has not put more resources into investigating a robust mandatory scheme, which would be far more effective at giving consumers the valuable information they want and need when buying or renting a home" Hughes said.

"The market clearly hasn't succeeded in delivering warm healthy homes or rentals in New Zealand, so it's clear that we need mandatory standards."

« Momentum building in house market, according to ANZFree Investment Property Showcase Events: Auckland, Wellington and Christchurch »

Special Offers

Comments from our readers

On 19 November 2010 at 1:10 pm Sandy Russell said:
I think this is a good idea, I am keen to keep my rental property in good shape and ensure it is insulated for Tennants and future selling
Derforch which
Commenting is closed

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • Advisors must take note of supervisor guidelines on AML/CFT
    “When I read this, the following memory plucked a note. Venue was a US financial planning conference maybe 30 years ago. Speaker...”
    1 day ago by Murray Weatherston
  • Partners kills its matrix
    “@Backstage, thanks. I agree there is no relationship to CoFI, though, from a service perspective, I have two other providers...”
    3 days ago by JPHale
  • Partners kills its matrix
    “Partners Life has decided to stop using its COM for advisers as it believes the system may breach the CoFI regulations which...”
    4 days ago by Amused
  • Partners kills its matrix
    “Insurance companies should stick to their lane. They are not advisers and even those that employ advisers should not be crossing...”
    4 days ago by Tash
  • [GRTV] The nitty gritty of Smart’s ETFs
    “Advisors should consider all gateways into investment markets including cheaply priced ETFs to provide access to low priced...”
    4 days ago by Pragmatic
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 4.94 - - -
AIA - Go Home Loans 7.49 ▼5.79 ▼5.49 ▼5.59
ANZ 7.39 6.39 6.19 6.19
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.79 5.59 5.59
ASB Bank 7.39 ▼5.79 ▼5.49 ▼5.59
ASB Better Homes Top Up - - - 1.00
Avanti Finance ▼7.90 - - -
Basecorp Finance ▼8.35 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.54 - - -
BNZ - Rapid Repay 7.54 - - -
BNZ - Std 7.44 ▼5.79 ▼5.59 5.69
BNZ - TotalMoney 7.54 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.69 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 6.95 5.79 5.59 5.69
Co-operative Bank - Standard 6.95 6.29 6.09 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - ▼5.99 ▼5.89 -
First Credit Union Standard ▼7.69 ▼6.69 ▼6.39 -
Heartland Bank - Online 6.99 ▼5.49 ▼5.39 ▼5.45
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.60 6.65 6.40 -
ICBC 7.49 ▼5.79 ▼5.59 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.25 6.89 6.59 6.49
Kiwibank - Offset 7.25 - - -
Kiwibank Special 7.25 5.99 5.69 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 7.94 ▼5.75 ▼5.99 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.49 6.95 6.29 6.29
SBS Bank Special - 6.15 5.69 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 4.94 5.15 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.19 6.49 ▼6.39 ▼6.39
TSB Special ▲8.64 ▲6.74 ▲6.49 ▲6.39
Unity 7.64 ▼5.79 ▼5.55 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society ▼7.70 ▼5.95 ▼5.75 -
Westpac 7.39 6.39 6.09 6.19
Westpac Choices Everyday 7.49 - - -
Westpac Offset 7.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 5.79 5.49 5.59
Median 7.54 5.99 5.89 5.69

Last updated: 6 December 2024 9:11am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com