APIA Blog

RSS Feed

Raewyn Stanaway: Residential property investing - new builds vs existing

Friday, October 23, 2020

 

There are lots of options available when looking to invest in residential property and one consideration is whether to buy an existing property or a ‘new build’.

With the current RTA and Healthy Homes legislation, there is indeed a lot to think about.

Existing Homes

Unless you are buying an existing house that is already 100% compliant with current legislation, or wish to do any work required yourself, you should be prepared to spend some time and money to ensure an existing home is completely compliant for rental purposes.

Having a Healthy Homes check done as part of your due diligence when buying an existing property is important. Does the property meet the current and impending Healthy Homes Standards? This includes insulation, heating, draught stopping, ventilation, moisture ingress and drainage. If not, have you allowed for the costs to make the home compliant?

Can the property be legally rented? Is the property a legal dwelling that meets current building codes? This includes any extensions, alterations, decks, granny flats and sleep outs.

Are there likely to be any major upcoming maintenance or expenses over the next few years For example, how old is the hot water cylinder? Will the house need rewiring or new plumbing? Is the roof and/or guttering likely to need repairs or replacement? Will the kitchen or bathroom need work? Does the exterior need painting? Are the floor coverings wearing out? Are the grounds in good condition and easy for tenants to keep maintained?

Is the property going to attract good quality tenants? The best properties get the best long term tenants and the best rents!

New Homes

New properties should be compliant with current building codes and will meet the Healthy Homes standards apart from perhaps heating in the living room.

New homes will have minimal maintenance for many years and you will have warranties for workmanship, fixtures and fittings, and any appliances installed.

You may have to invest in some easy care landscaping, tree planting etc to attract good long-term tenants and add value to your investment, but generally, a new build should be relatively low maintenance for many years.

In summary, you will need to weigh up the potential return on your investment either way, but making sure you have planned for any immediate compliance costs and/or upcoming maintenance needs to be taken into consideration.

Please feel free to contact me if you have any questions or if you would like some information about our professional property management services.  I am always happy to have a chat! You can reach me at r.stanaway@barfoot.co.nz or call 0274319471. 


ABOUT THE AUTHOR

Raewyn Stanaway

Raewyn leads the Property Manager Team at Barfoot & Thompson Grey Lynn. Her extensive background in corporate management along with running her own businesses has made her the perfect candidate for the role. She has a strong focus on customer service and believes that communication is key to building long term relationships.


 

 

 

 

 

Recent Posts


Tags

data security legal cost Must knows legal advice renovation water bill warren buffett LIM robert kiyosaki Editor's Choice mortgage re agent initio election2020 heating interest deductibility opes partners watercare development CoreLogic business shortland chartered accountants structure government tenant Case study property maintenance sale and purchase negotiation short-term rental winz early termination Standards New Zealand lvr tenancy tribunal housing package Jeff Bezos landlord retaliatory notice smoke alarm relationship bankruptcy buyer's agent partners anti-social behaviour Guest blog Level 4 CCC rtaa2020 HSWA wins How to education khh yield Tribunal case study speculator productivity trespass property shower dome Holler reserve bank holiday house damage Question and answer airbnb kiwibuild tenancy issues termination ventilation property cycle capital gain equity tenancy services insurance fixed-term tenancy privacy unitary plan house prices apia interest only quiet enjoyment nzpif interest rates extractor fan return rent control wealth creation off the plan trust parry v inglis personal growth maintenance rta reform RBNZ Investor story auckland council finance brightline rent arrears ring-fencing beginner investor Landlording sublease subdivision banking recycling equity bad tenant rta will ocr letting HHGA cgt Property (Relationships) Act market rent Sponsored post minor dwelling rental market letting fee DTI Q&A meth sale and purchas Investment tip financial advisers act ird debt enforcement barfoot and thompson boarding house rent property apprentice housing affordability insulation income property management positive cash flow heater rent increase twg report investment strategy trademe first home buying scotney williams principal and interest clnz heat pump management gluckman report TCIT worksafe television auckland buying rules building rental wof meth contamination cat election 2017 daikin HHS Gluckman commerce commission bond form skill shortage warm up new zealand asbestos inspection anz Kris Pedersen Mortgages and Insurance property value investor mindset p lab covid-19 cash-flow market housing bubble tax Must know Market report RTAA 2019 bond buying ask an expert

Archive

Introducing Our Partners
Principal Sponsor - Kris Pedersen Mortgages & Insurance logo Gold Sponsor - Barfoot & Thompson logo Gold Sponsor - CoreLogic logo Property Apprentice logo The Insulation Warehouse logo The Renovation Team logo The New Zealand Property Investors' Federation logo
09 360 2376
info@apia.org.nz

The Tenancy Practice Service and TPS Credit Control work closely with the Auckland Property Investors' Association. Our vision of bringing helpful resources, documents and high quality services to Auckland Property Investors and Property Managers is shared by APIA, so its a partnership that works well. 

The Auckland Property Investors' Association is a great organisation for those who want access to advice and information from a range of industry experts and partners. 



Mathieu Holt- Managing Director, The Tenancy Practice Service & TPS Credit Control
Through the Association I found the channels and methods to fund the purchase of property I never dreamed about. Grant Brown

All round it has been one of those things Neil and I felt was really worthwhile belonging to. We have learned so much it has just built our confidence in what we are doing.

Janice Bieleski
I read two articles in the monthly magazine that saved me over $5,000. That is my membership fee for the next 26 years and I am sure I will learn a whole lot more! John Duncan
Fantastic organisation. The networking opportunities are brilliant and provide us with information and opportunities that cannot be obtained anywhere else. We learn something new at every meeting and we've been in this game for nearly 20 years. Pauline and Gyanen Kumar

I find the information obtained from various APIA meetings very useful in guiding my own property investment and rental management.  I also enjoy the networking opportunities with like-minded investors.  I am inspired by other investors’ success and find the more experiences and knowledge that I share with others, the more confident I become.  

Thanks to all APIA event organizers and administrators for your brilliant work. 

Stella Shao

I like talking to people and learning from their experience because it gives me the confidence to invest well. I think it is a knowledge thing. I now know I am doing things the right way.

Stephen Weatherall

My APIA membership has become a total success.

Every time I attend a monthly or regional meeting I come away with so many useful and positive tips that have added value to my property investments and management.

Not only that, the website is a great place for practical advice and useful information. It has now evolved into an important resource for my business.

Talk about value for money! The discounts I have been getting at Bunnings when I present my APIA membership card have more than paid for my annual subscription!

Tim Duffett, Plan A Investments Limited