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For both investors and tenants, the Residential Tenancies Act (RTA) is the be all and end all of anything involving a rental property. Having stayed mostly the same since its introduction in 1986, any changes to it are going to have a huge impact on the responsibilities landlords and tenants have to each other.

And with a new decade comes new rental rules, apparently. Last November the government announced a whole heap of ‘practical changes’ to the act in order to make renting fairer and more secure for tenants, and they’re set to be rolled out within the first half of this year. So, how will these changes affect investors and how can a property inspection report help? 

What’s changing and why?

The main amendments to the RTA are: 

• Limiting rent increases to once every 12 months rather than every six months.
• The banning of rental bidding.
• Ending no-cause evictions (at the moment, periodic tenancies can be terminated without a reason as long as the landlord provides 90 days notice – now, the RTA will have a set list of possible reasons for termination). 
• Letting tenants make minor changes or add small fittings to the property (like baby proofing, hanging pictures or installing fire alarms). 
• An increase to financial penalties (the Tenancy Tribunal can now award compensation or order work to be done up to the value of $100,000 instead of $50,000). 

The reality is that when the act was first introduced in the 80s, renting was generally a temporary situation for many people. But with house prices rising increasingly in recent years, there are now around 1.5 million New Zealanders living in rental properties – and plenty of those will spend their entire lifetimes in rented homes. With more and more people relying on rentals, the government decided that it was time for changes to make renting more fair and secure for tenants (in theory).

What does this all mean for investors?

While all of these changes make renting more comfortable for tenants, they also mean that as an investor, you’ll have less control over what is a pretty hefty investment. The main concern is around the lack of no-cause evictions and how it’ll become much more difficult to evict anti-social tenants. It will mean you’ll have to be more selective about who you have living in your properties and approach new tenancies with a bit more caution then you might already. 

What can you do from here?

While some commentators predict some investors will sell up because of the law changes, there’s no need to make any rash decisions. New Zealand still has a growing population and a strong economy, which bodes well for the future of the property market. They’ll always be people looking for rental properties, and with the right precautions and preparation, property investing should still be relatively smooth sailing.

To prepare yourself for the changes, it’s best to be a bit more vigilant. That might mean doing more extensive interviews with possible tenants, as well as having a building inspection completed on any property you’re looking to purchase as an investment.

A building inspection not only gives you an idea of the general condition of the property, it also lets you know what kind of work might need to be done in the future to meet tenant needs. A thorough property inspection report completed by a qualified inspector can identify problems before they get too serious and ensure that you’re not over-capitalising on something that will cost you more in the future, avoiding a messy and potentially expensive situation. 

Property laws can sometimes be a bit of a balancing act between what’s best for the tenant and what’s best for the landlord, and these particular changes may be leaning towards benefitting the tenant more than you right now. But, being a property investor and a landlord has always been a challenging yet rewarding job – and there’s no reason you can’t keep reaping the rewards.

Get a free quote for your pre-purchase property inspection now:

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As the year winds down, it’s time to relax and reflect – for some people anyway! In the property industry, the summer real estate season is just beginning and it’s as busy as ever. Summer is always a good time to consider selling, so there are plenty of homes on the market. 

Selling or purchasing a home can be stressful whenever, but it’s difficult to manage the process when you’re also wanting to spend time enjoying the gorgeous summer days. Nobody wants to miss out on the best time of year by being overloaded with paperwork and to-do lists, so we’ve put together a checklist to help you out – whether you’re purchasing or selling. 

Purchasing a new home

Purchasing a new home can often be pretty daunting – especially if you’re new to the property market. We’ve highlighted the main things you need to get sorted before you sign below the dotted line – so you can spend less time stressing and more time out in the sun. 

1. Figure out your price range
   • Have a look at your income and your expenses to know what you can afford and what you’ll be able to repay. A financial advisor or mortgage broker can also provide some professional advice as to what price you should be considering. 
2. Talk to a lawyer
   • It’s important to have a lawyer’s insight throughout your property purchase. They can help you understand the ins and out of your potential new home before you sign any unconditional agreements and make a commitment. 
3. Get your finance pre-approved
   • Do some research on different banks or talk to a mortgage broker so they can find the best mortgage rate for you. It’s no easy decision, so take the time to find the right agreement – sometimes people find a better deal at a different bank from their usual. 
4. Pay attention to all the fine print
   • Read anything multiple times before signing it to make sure you’re fully aware of what you’re getting yourself into. A home is an expensive commitment – one that most of us will only make once or twice in our life – so you want to make sure it’s right!
5. Get a property inspection before committing to your chosen property
   • While you may have fallen in love with the perfect property, you never know what problems the house might have. Get a professional property inspector to run an experienced eye over the home to identify any problems before committing to it.
6. Now you can fall in love with your property!
   • We’ve often seen people get too emotionally attached to their potential home before finding out it’s got some irreparable problems. If you’ve had all the proper advice from your lawyer and a thorough report from a property inspector, then you’re good to go! Get ready to bid or make an offer, and fall in love with your new home. 

Selling a home

Selling your home is a long process and something you need to start thinking about well in advance. We’ve created a checklist of most of the main things you should be doing to get your home ready to sell. 

1. Check that no non-permitted or non-consented work has been done on your property
   • Have a look at your home’s property file from your local council – it’ll have all the information about every bit of work that’s been done to your property so you can check everything matches up. Have a look at our previous blog all about non-consented work to find out more. 
2. Sort any repairs to your home
   • Have any loose door knobs or cracked tiles you’ve been meaning to fix for ages? Get those sorted before you sell to add value to your home. 
3. Give your home some TLC
   • Sometimes a fresh coat of paint or a polish can make all the difference for a potential buyer. Have a look around your home and identify any areas that might need a little bit of extra love. 
4. Talk to a real estate agent
   • A real estate agent will get the process moving forward, meaning you can relax and enjoy your summer as much as possible. Once you’ve decided on a method of selling – exclusive listing, auction, tender or open listing – they can help sort the rest. 
5. Get a pre-sale property inspection
   • Although property inspections are normally completed for buyers, it can save you a whole heap of hassle to get a pre-sale property inspection before selling. That way, you’ll get an idea of what needs to be fixed and what buyers may try to use when negotiating – so you won’t have any nasty surprises!
6. Consider staging
   • You might want to think about staging – even a few rooms – if your home is particularly high value. The living room, dining area, and kitchen are normally areas that people give a little spruce-up. 
7. Get the final utilities sorted
   • Once your house has been sold (congrats!), the work isn’t entirely over. There’s the pre-settlement inspection, a final check that all utilities have been paid or sorted, the move-out, and a quick clean to make sure your home is nice for its new owners. 
8. All sorted? Hand over the keys, relax, and enjoy the rest of your summer!

Whether you’re purchasing or selling a home, following a checklist and keeping on top of things will ensure the process is as stress-free as possible. With years of experience in the Auckland property market, The Property Inspectors have the experienced eyes to make sure your home is good to go this summer property season, so get a free property inspection quote now.

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When you think of 70s houses, what comes to mind? Groovy wallpapers, crazy colour combinations, and patterned carpets?

While all these are true, another lesser-known feature of many 70s homes is the flat roof. Flat roofs were considered modern and stylish back in the day, and while they still look great (unlike patterned carpets, which haven’t really stood the test of time!) they can cause some problems for homeowners as time goes by.

Now that it’s approaching almost 50 years since the 70s, a lot of houses built then are getting to the point of needing roof repairs or a replacement. If you’re considering purchasing a home with a flat roof, it’s a good idea to know all about the condition of the roof and how you would go about replacing it if needed – as well as why you need a pre-purchase house inspection.

Why flat roofs can cause problems

When I say flat roof, no roof is actually entirely flat. Every roof needs fall to ensure that rainwater and debris have somewhere to flow to. However, some homeowners find issues with a roof that isn’t pitched enough, as water can pool on the roof and leak into the house. A leaky home is very worrying – not only can water cause damage to the interior of a building, it isn’t great for your health either. If you’re worried about your home’s roof or the roof of a home you might be purchasing, have a look at one of our earlier blogs all about roofing red flags.

Changes in building codes

Houses with flat roofs were likely built in a time when building codes were a little different. In the 70s, roofs only required 1° of pitch/fall, whereas now iron roofs need to have a minimum of 3°. This can cause some grief when it comes to replacing a flat roof. As old roofs don’t comply with current building code regulations, you can’t replace like for like. This means you would need to increase the pitch of the roof to comply with the current building code and the roof manufacturer’s warranty (which would require a building consent). This would likely carry additional costs, such as new detailed plans of how the increase in pitch is to be carried out etc.  All in all, this can add up and give your wallet a bit of a hit!

Repairing or replacing?

If your roof is damaged and leaking, it’s crucial to do something about the problem quickly – but a lot of people find it intimidating to replace a whole roof. After all, it’s a big and costly job! However, it’s becoming clearer by the day that it’s often better for your wallet, and sanity, to invest in a full roof replacement.

The reality is that no roof lasts forever. No matter the house, the roof will need fully replacing eventually – if you get 50 years out of an iron roof you are doing well. The cost of replacing a roof is obviously dependent on size – an average 3 bedroom house can be anywhere from $10-20k, but can be more expensive for an older low pitch roof.

While the cost of replacing a roof is high, it’s a cost you have to consider against the annoyance of constantly patching up leaks. Individual repairs will always be cheaper in the short-term, but they’ve become more expensive in recent years and can really add up if you’re constantly having to get problems fixed. The health and safety costs for workers who are working on a roof (i.e. the scaffolding) are pretty much the same regardless of whether they’re working on one section or replacing the whole thing. If it’s looking like the roof will need a lot of repairs, it may be better in the long run to commit to replacing it all instead.

Before you consider purchasing a house with a flat roof, the first step is to find out when it was last replaced. If the roof is approaching the 50 year mark, it’s likely going to need replacing while you’re the owner of it – which is something to take seriously and to make sure you’ll have the budget for.

Getting a pre-purchase house inspection

If you’re wanting to make an offer on a property, it’s vital that you have the home properly inspected before you sign above the dotted line. A home is often the biggest investment any of us will ever make, so it’s important to make sure it’s not going to give you any trouble.

A pre-purchase house inspection is a thorough inspection of the house – roof and all – and can pick up on anything that may cause a problem in the foreseeable future. While a roof is often out of sight and out of mind, it is one of the most important features to keep your home warm, dry, and safe and ensure that it will keep doing its job for years to come!

If you’re looking at purchasing a house with a flat roof, get in touch today to have your pre-purchase house inspection sorted.

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Buying a home can be great – but generally you won’t be able to get one without finance. That’s why understanding what banks are looking for when they give a mortgage will stand you in good stead for starting on your property buying journey. Whether you’re seeking a mortgage from a bank or through a mortgage broker, you may be asked to provide a property inspection report that proves your chosen house is in an acceptable condition. It may seem slightly time-consuming and unnecessary, but you need to make sure that not only the bank is happy with the loan going ahead, but that you can also be assured you are making a fully informed decision. 

Getting a property inspection

Just because a property looks perfectly sound and acceptable doesn’t mean it is. Homes can have issues hidden to the untrained eye, which is why you’ll want to get any property you’re interested in buying inspected by a professional building inspector. A home is usually the biggest purchase you’ll make, so make sure you’re choosing the right home – one that won’t give you unnecessary grief in the future!

The bank cares as much as you do

For a bank to lend up to 90% of the value of a property, they want to know that nothing will stop you from keeping up with your future home loan repayments. If your newly purchased home is quickly in need of expensive renovations, you may need to borrow more money. Likewise, if a home is uninsurable and anything happens, you (and the bank) could end up losing out on a huge amount of money.

While the bank can repossess your property should you become unable to continue paying off your mortgage, they don’t really want to. It’s a liability for them to own a property and an unnecessary hassle to have to sell it. Instead, they want to avoid this possibility altogether by having home loan applicants provide a property inspection report. This ensures they don’t lend you money to purchase a house which is going to give both of you stress! 

Requirements for lending

Different banks have varying requirements for a home loan. Some of these policies might be better for you than others, depending on where you’re at. Make sure you do plenty of research about loan requirements to figure out what’s best – you don’t necessarily have to apply through your normal bank if another is more suited to your current needs. You could also approach a mortgage broker who deals with a large number of lenders and could save you time researching around. 

Banks have different views on what a sound property is. While some banks won’t loan against a house with a worrying inspection report, other banks also won’t approve a home loan for a house that is in an ‘unusual’ location, will be very expensive to insure, or that would only appeal to a very small, niche market. Make sure you chat to you your chosen lender about their individual policies to get a better idea of what is best for you and what to expect. 

Bear in mind that, even with all of these precautions in place and the care you’ve likely put into your application, getting a home loan is a privilege, not a right. Lenders may still decline your mortgage application despite everything being almost perfect. Regardless of whether your application is declined or accepted, you still want to know that a house you are seriously considering purchasing is in a safe and reliable condition. Getting a house inspection from a reliable property inspector is a crucial step in your home loan application process. 

Get a free quote for your property inspection report today.

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If you’re new to the property game or you’ve been sitting on the sidelines for some time, the range of tests, building inspections, and reports at your disposal can be both daunting and overwhelming. Before bidding at auction or putting an offer on paper, it’s important to do the groundwork and request the right reports and inspections to save yourself time, money, and heartache further down the track.

Pre-purchase property inspections, meth tests, LIM reports, property files… You’ll hear a bunch of terms throughout your property purchase journey, so it pays to understand what they mean before you get in too deep. Here’s a rundown of what these all mean and how they can help you make the best possible property purchase.

Property File

The local council is a wealth of information when it comes to purchasing property, and getting your hands on the property file is one of the first steps to understanding a property you’re looking at. The property file is a collection of all the documents the council holds on a particular property, including construction plans and any correspondence with the council.

You can request the property file from the council yourself and on most properties, you can visually match any works or alterations to the property with the information in the report. If there’s no record of any additions, the works could be non-permitted or non-consented and potentially costly for the new owner. Check out our guide to non-consented works to find out more about using your property file to avoid any issues with non-consented works.

LIM Report

Like the property file, the council also holds the Land Information Memorandum (LIM) for a property. The LIM report is a summary of all information about a property and includes rates, building consents, development of the property, and potential risks such as flooding or erosion. Prospective purchasers can request the report from the council, though it is often supplied via the vendor’s real estate agent. Have your lawyer cast an eye over the report to spot any potential risks or issues with the property before making an offer or heading along to auction.

Meth Testing

‘P’ houses and meth labs have all been hot topics in the news in recent years and no one wants to risk their family’s health or their investment by buying a contaminated property. Detecting meth contamination is a specialty test performed by professionals who swab sections of the property and analyse whether there is any level of contamination.

Smoking or producing the illegal drug can contaminate a property and a positive result could make it hard to secure tenants and impact the future resale potential. It’s expensive to decontaminate a property so if you have any concerns, have the property inspected by a professional before making an offer. Although I don’t offer this specialist service myself, I’m always happy to recommend someone so just get in touch.

Building Inspections

Of course, before writing an offer on a property or waving that hand around at an auction, building inspections are a critical step to provide peace of mind with your purchase. When performed by a professional building inspector, a building inspection will spot major defects or issues with the property and identify areas that could prove to be problematic in the future. The findings of a building inspection report may even provide an angle to negotiate on price. A building inspection will check moisture levels, foundations, structural conditions, building materials, and more. Having a professional building inspector give their unbiased report can eliminate unwelcome future surprises and give you the confidence to secure your new home or investment.

Keen on a property and ready to get a building inspection? Get a free quote today.

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