Welcome to the start of the financial year. If you are new to investing in residential property or would simply like a reminder of what property-related expenses you can claim on your rental business, click on our Landlord Information Guide.
March saw the introduction of new privacy laws that have a direct impact on the questions residential landlords and property managers can and cannot ask tenants when applying for properties. We are now required to operate a two-step application process that involves asking for additional information about a tenant once they have been considered a preferred applicant. Preferred applicants will then have their current and/or previous landlords contacted whilst your property manager asks a number of structured questions. Leading applicants will then have a background and credit check conducted on them via Centrix. This part of the vetting process remains unchanged. Rest assured that your property manager has been trained to manage these legislative changes and knows how to obtain the relevant information to choose the best applicants for your property.
There is no doubt that the Waikato housing market has softened in 2022. With a 147% increase of properties for sale in Hamilton compared to 1st April 2021, buyers have a lot more choice and sellers are having to adjust price expectations to meet the market. One particular segment of the market seems to be holding values well, that is the new-build investment market. Due to the fact that there are numerous tax advantages to purchasing new build properties, (100% interest deductibility, 5-year bright-line test) the demand for this asset class still remains high. The number of landlords considering selling their investment properties in a recent Tony Alexander survey has reduced to a survey low of 20% and the number of investors considering purchasing additional properties had increased by 6% in March. 65% of the survey respondents indicated that they planned on holding their investments for 10 years plus. With more selection of properties available and lending conditions remaining challenging, it is a great opportunity to buy well in the current market and add to investment portfolios. We have noticed a number of our landlords add to their portfolios in the month of March.
The rental portfolio that we have the pleasure of managing currently sits at 99% occupancy. Quality tenants are missing out on properties all too frequently due to a lack of available rental accommodation. If you are considering adding to your portfolio, rest assured the tenant demand is at an all-time high.
We welcome the return of our Ray White Maintenance department with a new handyman Shalvin Chand commencing duties in April. Shalvin will be available to conduct a large range of maintenance tasks on rental properties at favourable rates for our valued Ray White Hamilton Property Management clients.
I’ll take this opportunity to remind our valued clients that Online Rentals Ltd is now equipped to manage body corporates. If you are planning a development, we welcome the opportunity to discuss how Ray White Hamilton Property Management can take care of all of your body corporate and new tenancy management needs.
Enjoy the extra light in the mornings as the cooler weather approaches.
Online Rentals Ltd