Press release - Landlords are here to stay



Landlords are here to stay

Auckland, New Zealand - 10th January 2018 - Landlords welcome longer-term tenancies but remain cautious about other proposed tenancy law changes, results of the latest Auckland Property Investors’ Association member survey found.

The survey polled over 500 active Auckland landlords about the extent to which they expect to impacted by various proposals designed to affect the residential tenancy market. Across the board, landlords respond favourably towards the relaxation of LVR restrictions, better security of tenure through longer-term tenancies, and the Healthy Homes Guarantee Act. The survey also found that landlords are most concerned about the prospects of a capital gains tax, debt to income restriction, and the removal of the 42-day notice to terminate.
"While the results are hardly surprising at first glance," says Association President Andrew Bruce, "what is interesting, and in fact, encouraging to note is that on a 1-10 favourability scale, none of the issues polled is so abhorrent to landlords as to cause them to dump their portfolios." The survey shows long-term investors remain cautiously optimistic and steadfast in their approach to investing in this changing market. “These results strengthen our belief that property is not an overnight rags-to-riches story. Most of our members have taken a long-term approach to their investments which includes built-in contingencies and mechanisms to absorb additional costs brought on by adverse policies. It is the price of doing business,” says Mr. Bruce.
Additionally, the Association is encouraged by its members' response to the Healthy Homes Guarantee Act which is set to raise minimum standards for rental properties. Out of the ten issues polled, the HHGA ranks the third most favourable. "Our members are acutely aware that the HHGA goes hand in hand with the security of tenure. As landlords, we understand that it is in everyone's interest to provide a healthy and safe home for our tenants," says Mr. Bruce. "What we want to be careful of, at this stage, is to ensure that the HHGA strikes the right balance between maximising tenants' health without placing landlords under an undue burden that could ultimately distort the rental market with lesser rental stocks and increased rents." It is early days for the HHGA. Details of the new standards are yet to be decided. The Auckland Property Investors' Association plans to continue lobbying for a common sense approach that maximises the potential the HHGA has to improve residential tenancy across the board for New Zealanders.
The Auckland Property Investors' Association is a non-profit group supporting and representing Auckland landlords. Its latest membership survey polled over 500 of its members on the following issues (ranked in order of favourability):
  • Relaxation of current LVR restriction
  • Longer fixed-term tenancies
  • Healthy Homes Guarantee Act
  • Extension of Bright Line Test
  • Limiting rent increases to once a year
  • Removal of negative gearing
  • Ring-fencing tax losses
  • Removal of 42-day notice to terminate
  • Debt-to-income restriction
  • Capital gains tax



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