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Thursday news in brief

Life is busy and it’s easy to miss some of the stories that hit the news. So here’s a brief rundown of some of the stories that might have slipped by you this week…

Thursday, June 8th 2017, 11:00AM

by The Landlord

Rent to own policy from UnitedFuture

New Zealanders currently locked out of the housing market could face an easier path if UnitedFuture’s newly announced rent-to-own policy gains traction.

UnitedFuture leader Peter Dunne said that, under the policy, half of the affordable houses being constructed under the Government’s Auckland build project would be offered as rental properties – but part of the rent would go towards purchasing a share of ownership in the house.

“The rent people pay will be accumulated as savings earmarked for a deposit. Then when a tenant owns enough of the property to count as a deposit, they will be offered title to the property. They will then need to find appropriate financing for the property.”

Dunne said a generation is facing the prospect of lifelong renting and this policy would put them on a pathway towards home ownership. “We want to see specific targeting of people who are struggling to save for a deposit and pay their rent at the same time.”

Read more: Super City to get 34,000 new houses 

Costs of renting office space to residential tenants

A Wellington landlord has been ordered to pay $7,520 for illegally renting out space in a now demolished Molesworth Street office building to residential tenants.

Following a post-earthquake investigation by MBIE’s tenancy compliance team, the Tenancy Tribunal has ordered Prime Property Group Limited to pay back $6900 of rent and exemplary damages of $600 to the tenants.

Back in March, MBIE sought an order on behalf of the tenant against the landlord, saying the tenancy was prohibited under the Act because the building could not lawfully be used for residential purposes.

MBIE’s tenancy compliance team manager Steve Watson said the case was a prime example of taking advantage of someone who is in a vulnerable position. “This decision sends a strong message to landlords that the penalties are high if you are caught renting commercial property to tenants.”

Read more: Illegal renting charge for Molesworth landlord 

Rent controls warning from APIA

Growing calls for rent controls to be enforced in Auckland’s rental market to try to stop price gouging will only create another beast, according to the Auckland Property Investors Association (APIA).

APIA vice president Peter Lewis said that rent controls tend to reduce the supply of lower-end property to the market and slower supply growth then exacerbates the basic pricing problem. “There is no money in creating affordable housing if landlords can’t raise the rent to market rates.”

Overseas experience shows stringent enforcement of rent control lead to undersupply, long waiting lists for tenancies, black market activity, little maintenance of rental properties and urban decay, he said.

“In the local context, this proposal ignores the current law that restricts landlords to only charging a rent that is commensurate with other rents for a similar property within the area, and that tenants have the statutory right to appeal to Tenancy Services if they feel that their rents are unreasonably high.”

Read more: Auckland rental market under pressure

« Free Investment Property Showcase Events: Auckland, Wellington and ChristchurchIt’s CRUNCH TIME on the property clock »

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Lender Flt 1yr 2yr 3yr
AIA 4.55 3.19 3.19 3.49
AIA Special - 2.69 2.69 2.99
ANZ 4.44 3.15 3.25 ▼3.39
ANZ Special - ▼2.55 ▼2.69 ▼2.79
ASB Bank 4.45 3.19 3.19 3.49
ASB Bank Special - 2.69 2.69 2.99
Bluestone 4.44 4.44 4.44 4.44
BNZ - Classic - 2.65 2.69 2.99
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 3.25 3.29 3.59
Lender Flt 1yr 2yr 3yr
BNZ - TotalMoney 4.55 - - -
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.45 - - -
Credit Union Baywide 5.65 4.75 4.75 -
Credit Union South 5.65 4.75 4.75 -
First Credit Union Special 5.85 3.35 3.85 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online - - - -
Heretaunga Building Society 4.99 4.35 4.45 -
HSBC Premier 4.49 2.60 2.65 2.80
Lender Flt 1yr 2yr 3yr
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 3.99 2.58 2.68 2.79
Kainga Ora 4.43 3.29 3.39 3.85
Kiwibank 3.40 3.40 3.54 4.00
Kiwibank - Capped - - - -
Kiwibank - Offset - - - -
Kiwibank Special 3.40 2.65 2.79 3.25
Liberty 5.69 - - -
Nelson Building Society 4.95 3.45 3.49 -
Pepper Essential 4.79 - - -
Lender Flt 1yr 2yr 3yr
Resimac 3.49 3.45 3.39 3.69
SBS Bank 4.54 3.29 3.19 3.49
SBS Bank Special - 2.79 2.69 2.99
The Co-operative Bank - Owner Occ 4.40 ▼2.69 ▼2.75 ▼2.99
The Co-operative Bank - Standard 4.40 ▼3.19 ▼3.25 ▼3.49
TSB Bank 5.34 ▼3.35 3.49 3.79
TSB Special 4.54 ▼2.55 2.69 2.99
Wairarapa Building Society 4.99 3.75 3.99 -
Westpac 4.59 4.15 4.09 4.49
Westpac - Offset 4.59 - - -
Westpac Special - ▼2.55 2.69 2.79
Median 4.55 3.19 3.22 3.39

Last updated: 10 July 2020 9:02am

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