1. Find the Tenant with the Best Merit 

2. Collect the Right Information at the Very Beginning 

3. Ask Referees the Right Questions

4. Act Quickly

5. Bring in the Professionals 

1. Don't over capitalise and do a rough budget based on quotes or estimates for the expensive items.  Spend the most on what will be used the most and that you really want to last, e.g. appliances, plumbing, lighting and all horizontal surfaces i.e. flooring, bench tops, vanities, showers, etc.
2. Be generous with plugs for appliances, lamps, stereos, televisions, computers and heaters.
3. Neutral backgrounds allow tenants to create their own identify with their belongings.  Dominant colours, patterns and textures control the atmosphere of the space.
4. Wallpaper can be an excellent choice for general maintenance especially washable and scrub-able vinyl.  A good way of hiding imperfect walls.  
5. Avoid coarse or heavy textures for interior use as they absorb so much dirt, smell and dust and are harder to clean e.g. bricks, textured ceilings, long piled carpets.
6. Pay attention to safety issues and that they comply.  This includes: stairs and handrails, balconies, decks and terraces, smoke alarms, hearths for wood burners and fires, access to the exterior, somewhere handy to the range to put a hot pot that won't damage the surface such as tiles or stainless steel. 
7. Window treatments should retain heat, provide privacy and control the light.  They should be easily operated and firmly secured.  Avoid curtains in doorways.
8. Interior decorating schemes can be inspired by the style of architecture, existing fixtures and fittings, the outlook or personal preference.  Spaces can skillfully be manipulated by the use of colour, texture and pattern.  Lighter colours recede, darker colours advance.  Smooth textures recede, coarse textures advance.  Subtle patterns recede, contrasting patterns advance.
9. Pattern can be used to disguise defects in design, structure and style.  Clever applications on any surface can enhance an environment but must be chosen with care.
10. Wall hung cabinetry or vanity and shelves can be coloured the same as the walls to create an illusion of space whereas in contrast they would stand out.
11. Provide plenty of good, easily accessed storage.
12. Supply uncomplicated, reliable, well designed appliances that are easy to operate and clean and have a good service record.
13. Consider the use of timber for doors, framing, skirting boards, stairway handrails and dado lines because of its durability and long-term beauty.  Don't use MDF in wet areas.
14. Paint is the most versatile medium.  Use high gloss enamels on all doors, window framing, and skirting boards.  Use semi-gloss acrylic on walls (low sheen on imperfect walls) and anti mould paint in ceilings - dulux mould shield or similar.
15. Carpet is a wise flooring choice being soft and comfortable plus an insulating surface which helps with noise control.  Use darker colours with a fleck or a small pattern.  I prefer wool of extra heavy duty domestic or greater.  If short pile use thick underlay to give an impression of softness.
16. A mirror creates an illusion of space and is great in small bathrooms.
17. Allow for efficient ventilation to remove household smells and moisture to disappear.  Vent to outside.  If redesigning kitchen, put range on a outside wall if possible and use flexible aluminium ducting off the top of the range food to outside.  In bathrooms fit a heat, light and fan unit and have the electrician wire it up so that the fan goes when they use the heat or light function.  Have windows that can be secured open with ease.
18. Use ceramic disc taps in high use areas - kitchen, vanities and showers (single lever if possible).
19. Plan to have adequate lighting.  In dark rooms or long rooms, fit extra overhead lights.  Make sure there is outside lights around entrance door areas and areas that may be used at night i.e. patios, main entrance path etc.
20. I like to use 1830mm stainless steel sink bench in a breakfast bar design.  This enables a 600mm wide dishwasher to be fitted in the bench either side of the sink with drawers on the other side.  The services are run through a 100x50 framework at the back of the cupboard.

How did you fare in tonight's Property Quiz? 

Bear with us, we are getting somewhere with this analogy.  Just as the Stay Puft Marshmallow Man laid waste to New York City, sky-rocketing housing prices in Auckland are also dashing the dreams of first home buyers and everyday ma-and-pa investors.  Buyers are literally fleeing the city, for real. 

In response, the Reserve Bank Governor Graeme Wheeler (our designated PriceBuster) is reported to be considering placing a LVR restriction on Auckland property buyers.  Specifically, the restriction will require buyers to put down a bigger deposit than those who purchase outside of Auckland.  The rationale is simple, the harder we make it for people to buy property, the slower prices will increase as demands diminish with the buyer pool.

Make sense?

Is Mr Wheeler's proposal as awesome as the Bill Murray's unlicensed nuclear packs?  If implemented and enforced, will the LVR restriction literally be kicking arses in Auckland and taking names?  How will property investors and home buyers REALLY be affected?
 

The APIA Elves weigh in 

David Whitburn, APIA Head Elf

"The LVR restrictions will have the impact on making it harder for first home-owners and investors to buy properties in Auckland, as they will need to contribute more equity, and many will be unable to do this.  It will slow growth in the market prices, and assist wealthier overseas and New Zealand resident buyers to pick up properties at good prices.  There will be winners and losers with this policy and it is not the holy grail that the Reserve Bank hope for to quell the rising Auckland Housing Market.  A multitude of factors drive the prices - not just the financing environment."
 

Andrew King, speaking from the Mothership (i.e. New Zealand Property Investors' Federation)

"The LVR restriction being considered by the Reserve Bank could be seen as protecting some people from themselves. In the four or so years up to 2008, banks were aggressively promoting home loans, often without requiring any deposit from the purchaser. This definitely had an affect on increasing demand, but it was also very risky for the banks and the home buyers.

This type of lending may have also lured some people into property investment, who really could not afford it.

The NZPIF thinks that restricting the LVR ratios will restrict risky investment decisions providing an element of consumer protection, even if it is protecting them from themselves. It may also slow down property price growth, but it will not eliminate it completely.

Many rental property investors will have sufficient equity in their own home that increasing the LVR requirements will not stop them from effectively borrowing 100% for new property purchases.

Considering the general economy, higher LVR requirements also provide the Reserve Bank with a tool that can specifically target any excesses in the property market without incurring the negative impact on interest rates. This would be good for business and the overall New Zealand economy. It would also be good for rental property cash flow, as mortgage interest rates may not need to be raised as much by the Reserve Bank should the property market take off.  

So in summary, there are good and bad points. Raising LVR requirements will not affect the majority of rental property investors from making new purchases, however it may restrict the level of future property price growth."
 

Ammon Acarapi, our very own property Sun Tzu

"As we know the key fundamental for property values is supply and demand, so sure any such policy designed to slow down the demand for property would hold property values - to what degree however would be debatable. The biggest impact would be for first home buyers and younger investors who haven’t built up equity in their portfolios buy holding property through previous property cycles.

More experienced, well-heeled investors may pick up the slack as there is still a real problem with the fundamental under-supply of properties to house those people who most need it i.e. lower income Kiwis.  Rents would continue to increase as supply is further curbed, making property investment even more attractive to those who can put the deposits together to purchase properties.

This policy would not solve the real problem which is the under-supply of affordable properties. Policies designed to increase the supply of property however would have the desired outcomes of both holding house prices and providing housing for those who need it. In my opinion this is where policy makers should spend their concerted efforts."
 

So there you have it

It would seem that managing housing prices is a multifaceted issue one which cannot be easily solved or circumvented by one single policy.  We say it is time to get back to the drawing board and come up with a more comprehensive solution. 

What are your thoughts about the proposed LVR restriction in Auckland?  Would you welcome it as a property investor?  Auckland prices are climbing by the day - so who you gonna call?  Sound off by commenting below!

Jesse asks the APIA Expert Panel:

Can I buy two properties on the one mortgage?

Lena Li, ANZ Mobile Mortage Manager, Answers

Generally speaking, we lend base on an acceptable lending ratio and the type of security we hold.
 
The lower your existing lending ratio the more chance you can top up on an existing security to buy the second property.  Furthermore, we do not necessarily have to take your second property as security.  The deliberation of a top-up will be on a case-by-case basis.  If you want to borrow over 80% on your existing property, you will need to meet the criteria of over 80% lending but this can be assessed accordingly.  You may also put the whole lending into a flexible form of loan in some cases depending on individual needs and individual statement of position. 
 
For more information and personalised advice, contact a friendly ANZ mobile mortgage manager and they will be more than happy to help!
 

The APIA Property Expert Panel is ready to answer your property questions.  Write us an email to elves@apia.org.nz and we will get you an answer pronto!