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: Friday, March 29th, 10:40AM

News

rss
Latest Headlines

Don't remove investor rights: NZPIF

Giving tenants automatic rights of renewal on all leases will unfairly disadvantage landlords, the NZ Property Investors Federation says.

Thursday, August 28th 2014, 12:00AM 1 Comment

by The Landlord

The Green Party yesterday revealed its housing policy for the looming election, which centred on improving life for the country’s tenants.

Among the proposals are a rental property warrant of fitness, a $327 million scheme to insulate 200,000 homes, moves to improve security of tenure for renting households and $3 million of funding to help tenants taking action against substandard rental housing.

The NZPIF said there was no argument that some vulnerable families needed help, but a rental WOF scheme was not the way to do it and the cost of WOFs would be passed on to tenants. Executive officer Andrew King said only 7% of the tenancy who called the Tenancy Services helpline were worried about the condition of their houses. “It is not a widespread problem.”

The money that would be spent on a WOF scheme would be better going to cover things such as insulation, subsidised heating and tenant education, King said.

"A WOF is expensive, which will do nothing to help rental prices or overcrowding,”  he said.  "Insulation is one part of providing a healthy home, but heating and ventilation are also critical elements. If tenants can't afford to turn on heating now, how will a WOF help them?"

Making insulation a tax-deductible expense would cost the Government less than the Greens’ proposed insulation plan, King said. “The Government Insulation scheme that the Greens want to reintroduce appeared in the past to be really an insulation installers’ scheme. Installing insulation was too expensive even with the $1300 Government Grant. Many Property Investor Association members insulated their rentals without using the Government scheme because it was more cost effective to do this.”

Green Party co-leader Metiria Turei said the average renting household moved every two years.  The Green Party wanted tenants to be given the right of renewal on any tenancy.  “At the moment rentals are not homes for too many families. Lack of secure tenancy results in high rates of transience for our poorest kids and price gouging by landlords… We want good tenants who follow the rules to be able to stay in their home for the long term.”

The Greens would also include a formula for calculating future rent increases, which landlords would be able to implement no more than once a year.

King said most landlords kept their properties for the long term and appreciated long-term tenants. “Tenants only have to give three weeks’ notice to vacate a rental property. This flexibility is a significant benefit of renting. Giving them the right to also stay in the property as long as they like is taking away the rights of the rental property owner.”

He said owners with financial or health problems needed to be able to sell their properties, even if tenants did not want to move. "The NZPIF believes there are better ways to match tenants who want long term security of tenure with rental property owners who want long term tenants. But neither party should have more rights than the other."

 

 

 

 

« Healthy lifestyle property market: REINZFree Investment Property Showcase Events: Auckland, Wellington and Christchurch »

Special Offers

Comments from our readers

On 29 August 2014 at 8:38 am jpaynter said:
Are the Greens or any government prepared to insulate landlords against escalating costs, such as rates, water and insurance? These are all above the inflation rate (and in the case of rates, a significant component of inflation). Add in the high cost of building products and tradesmen's rates and ownership costs are escalating. They are way above the cost of renting. Until this imbalance is rectified, it is pointless to legislate against rent increases and to secure the rights of tenants to permanent tenancies (even the government is removing this for State housing).

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
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 6.19 - - -
AIA - Go Home Loans 8.74 7.24 6.79 6.65
ANZ 8.64 7.84 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.24 6.79 6.65
ASB Bank 8.64 7.24 6.79 6.65
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - 7.24 6.79 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 7.84 7.39 7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 7.04 - -
Co-operative Bank - Owner Occ 8.40 7.24 6.79 6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.74 7.29 7.15
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.69 6.45 6.19
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 6.75 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.79 7.39 7.25
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 8.25 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 7.25 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.75 7.35 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
Resimac - LVR < 80% 8.84 ▼8.09 ▼7.59 ▼7.29
Lender Flt 1yr 2yr 3yr
Resimac - LVR < 90% 9.84 ▼9.09 ▼8.59 ▼8.29
Resimac - Specialist Clear (Alt Doc) - - 8.99 -
Resimac - Specialist Clear (Full Doc) - - 9.49 -
SBS Bank 8.74 7.84 7.45 7.25
SBS Bank Special - 7.24 6.85 6.65
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.74 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 8.04 7.55 7.45
Lender Flt 1yr 2yr 3yr
TSB Special 8.64 7.24 6.75 6.65
Unity 8.64 6.99 6.79 -
Unity First Home Buyer special - - 6.45 -
Wairarapa Building Society 8.60 6.95 6.85 -
Westpac 8.64 7.89 7.49 7.25
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 7.29 6.89 6.65
Median 8.64 7.29 7.32 6.65

Last updated: 28 March 2024 9:42am

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