Tenants & Landlords – There is now a new Tenancy Agreement.
Due to the amendments to the Residential Tenancies Act 1986 that come into force on 1 July 2016, Tenancy Services have updated their tenancy agreement which is now available on its website. The amendments require all residential rental properties to have smoke alarms installed by 1 July 2016, and for all tenancy agreements signed on or after 1 July 2016 to include a statement about the insulation status of the property.
Update to Sale and Purchase Agreement: Residential Land Withholding Tax (RLWT)
From 1 July 2016, RLWT will be payable on certain residential property sales by offshore persons. The Agreement for Sale and Purchase of Real Estate has been amended to provide protection for purchasers where the vendor does not have a conveyancer or is an ‘associated person’ to the purchaser.
The new RLWT clause for all Agreements for the Sale and Purchase of Real Estate will now be in all Sale & Purchase agreements prepared by Northies Real Estate.
Plaster built homes – Leaky Homes? Not always!
Heard some very interesting points at a seminar about plaster homes and being leaky or not! It was pointed out that all our homes leak. They are designed to allow water that does get in, to get out as well! It was also pointed out that many of our homes have water getting in around windows, maybe sliding doors, and where walls meet roof lines. And that the silicone and rubber joinery on aluminium windows has no guarantee and when they perish, water gets in. Replacement of windows and structure around them may be necessary, but not a complete re-clad of the whole house.
It may be a case of faulty products rather than a leaky home crisis needing re-cladding.
Finance and Bank Rates.
After reading an article in the local paper recently, I asked the Mortgage Broker – Alan Billington – for clarification. The question was – Does everyone have to have a 15% deposit when they purchase a home now? The reply was – “Yes, if it is with ANZ!” and here are some brief details:
ANZ – max LVR(Loan to Value Ratio) for Auckland 75%. Outside Auckland 90%. Max LVR where more than one property is held 70%. Applicants relying on overseas income max LVR 70%.
ASB – max LVR for NZ citizens or permanent residency 70%.Not using overseas income in loan assessments for non NZ citizens at present.
WESTPAC – max LVR 70% for NZ citizens, permanent residencies with overseas income.
BNZ – max LVR NZ citizens & permanent residencies outside NZ 60%.
There are other aspects to these that Alan can explain for you – 021 800 105 – or you can contact your financial person.
“Interest rates are absolutely relevant to the debate on housing affordability, particularly for first home buyers. People very rarely buy a home with upfront cash, instead paying for it over many years out of weekly earnings through a mortgage.
“The monthly repayments on a median home of $346,458 in 2008 would have cost $603 per week at the floating rate of 10.88 per cent, while a median home today, worth $506,000, would cost $538 a week at today’s floating rate of 5.64 per cent.” (Building & Housing Minister – Dr Nick Smith taken from his comments after the study by Massey University on 12 July 2016)
The sales statistics from the Real Estate Institute NZ came out on Friday. In the Eastern Beaches there has been – no change! For the first time in at least three years the median sale price has stayed the same for two months in a row. May and June 2016 – $1,100,000 and there were 33 less sales but they sold 5 days quicker. Compare that with all of Auckland and there was an increase in the median price of 1.99% from $805,000 to $821,000. So what does that tell us? Whatever you would like to make of it!
And the Reserve Bank’s moves on LVR(Loan-to-Value Ratio) and Property Investors needing a 40 per cent deposit – what do you make of that? How are they going to tell a Property Investor from a Property Trader?