Investors given multiple reasons to return to the market

12 Apr 2024 The Lodge Real Estate Team

Property Investment

The Autumn leaves may be falling, but there’s still plenty of heat in the rentals market.

March saw 138 properties leased during the month and, as always, demand for rental properties continues to grow. The average time a property sat on the market was just 16 days, which shows tenants are moving fast and not leaving anything to chance.

As you will know, 1 April saw the welcome return of interest deductibility to the market, with landlords now able to claim 80% of their interest expenses as a cost for tax purposes, and 100% from 1 April 2025.

Earlier this month news of the government’s decision to loosen the “overly prescriptive” CCCFA (Credit Contract and Consumer Finance Act) was music to homebuyer and investors’ ears alike. The change will certainly be attractive to anyone looking at a mortgage and any change that helps people, including investors, purchase property is a good thing.

As recently as a few days ago, the government’s plan to reintroduce 90-day no-cause evictions and other changes to notice period laws will certainly be adding to the reasons as to why property investment is starting to look more attractive.

We are certainly noticing the effect all of this has had on the market, and already we are fielding more enquiries from investors who are looking to make their move. At the risk of sounding like a broken record, my advice to you, if you’re in this camp, is to start doing your due diligence now and avoid the FOMO strike.

Remember, the Investors Club is a good place to start if you’re keen to start, or re-start, your investment journey. Every week I send my top investment property picks just to make it a little bit easier to pick the properties that are going to be the best fit for tenants and add to your portfolio.

Healthy Homes isn’t playing around

A recent Tenancy Tribunal hearing found a Tauranga landlord guilty of breaching Healthy Homes standards, ordering $37,000 in damages to 17 tenants. The boarding house in question had several hot water taps removed, no proper cooking facilities, and no heating in the main living room, among other issues.

1 July 2025, just 14 short months away, is the deadline by which all investment properties must adhere to Healthy Homes standards. This recent fine in Tauranga should serve as a reminder that this is a very real standard, and that standard will be enforced with heavy financial consequences.

Here at Lodge, our compliance level is sitting at 79% and we have a strict plan in place to meet 100% well ahead of the official deadline in the next six months. If you’re not quite sure where your property lies in the context of this legislation, please get in touch with us.

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