NZPrprtnvstrss158Jnr2017.pdf

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▶▶HOW
TO MAKE $$CASH$$
IN HOLIDAY HOTSPOTS ◀ ◀
JANUARY 2017
BIG BOLD
PLANS
PAST PROFILES
REVISITED
BUDGET
BLOWOUT?
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Contents
UPFRONT
03
EDITORIAL
04
NEWS
New year, new strategy.
Latest news affecting property investing.
Get your portfolio in order with
Peter Norris.
LVR impact is showing in data.
JANUARY
2017
11
YOUR MORTGAGE
12
YOUR HOUSE
18
FEATURES
18
PROFILES FROM 2016
24
YOUR 2017 FORECAST
Our investors have big plans.
32
FEATURE: BUDGET TIME
38
SERIES: COMMERCIAL
42
BEFORE YOU RENOVATE
Louise Richardson gives
you her top tips.
What you need to know
about earthquake proofing.
Diana Clement sorts out your
budget for the year.
The key players make their predictions.
PROPERTY
ADVICE
14
ASK AN EXPERT
Our panel of experts
answer your questions.
42
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NZ PROPERTY INVESTOR
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54
COLUMNS
46
YOUR ACCOUNTANT
Mark Withers talks tax system fairness.
Your plan for the year with Sue Irons.
Aaron Tunstall says it’s time to buy
for yield rather than capital gain.
Solving the housing affordability
crisis with Campbell Venning.
Michael Yardney outlines how to
identify an ‘investment grade’ property.
Achieving a successful tenancy with
Sarah Dawson.
47
YOUR PROPERTY COACH
48
YOUR APARTMENT
49
YOUR PROPERTY FINDER
50
YOUR STRATEGIST
51
YOUR PROPERTY MANAGER
EXCELLENT PROSPECTS FOR
GAINS IN HOLIDAY HOTSPOTS
REGULARS
59
FROM THE EXECUTIVE
OFFICER'S DESK
Investors are getting unfairly
blamed, writes Andrew King.
60
60
PROPERTY INVESTORS’
FEDERATION
80
BOOK REVIEW:
What the associations are
planning for January in your area.
We review our top picks.
STATISTICS
64
2
NZ PROPERTY INVESTOR
//
JANUARY 2017
64
STATISTICS
75
SALES STATISTICS
78
CLASSIFIEDS
Find out the median returns for rentals in your area.
Median house sale prices and numbers sold by region.
All the best professionals from your region.
FROM THE EDITOR
NZ Property Investor Magazine Ltd
Postal address
PO Box 2011,
Rotorua
Physical address
1448A Hinemoa Street,
Rotorua
T
07-3491920
F
07-3491926
www.propertyinvestor.co.nz
www.landlords.co.nz
NZ PROPERTY INVESTOR MAGAZINE
PUBLISHER
Philip Macalister
E
Philip@propertyinvestor.co.nz
NEW YEAR
NEW PLAN
EDITOR
Joanna Jefferies
E
editor@propertyinvestor.co.nz
STAFF WRITER
Miriam Bell
E
miriam@tarawera.co.nz
IF THE NUMBERS WORK
THEN THERE’S NO REASON
TO BE PUT OFF, WHATEVER
THE MARKET CONDITIONS
ACTIVE INVESTORS
ADVERTISING SALES
Cheryl Joubert
T
0800 345675
M
0274 202 069
F
07 3491926
E
sales@tarawera.co.nz
PRODUCTION
Jon Harding,
Debbie Morgan
SUBSCRIPTIONS
Dianne Gordon
T
0800 345675
To subscribe go to
www.propertyinvestor.co.nz
To change your address or
subscription details go to
www.propertyinvestor.co.nz/coa
CONTRIBUTORS
Diana Clement, Sarah Dawson, Allan Galloway,
Nick Goodall, Amy Hamilton Chadwick,
Vicki Holder, Ron Hoy Fong, Sue Irons,
Jenny Keown, Andrew King, Myles Noble,
Peter Norris, Bernard Parker, Kris Pedersen,
Louise Richardson, AaronTunstall,
Campbell Venning, Mark Withers,
Michael Yardney.
Welcome to a new year with
NZ Property
Investor.
I hope you’ve all had the chance to
put your feet up over the festive season and
are ready to get stuck in this year, should
that mean the first step onto the investment
property ladder, or the expansion of an
already established portfolio.
This month you’ll get market insights in
our 2017 forecast feature (p24). In writing
this piece, I spoke to many investors and
industry experts on their predictions for
the market outlook in 2017. As you can
imagine, it was an interesting exercise;
while one expert would say the economy is
looking stable, another would insist we are
heading into a recession. There were two
common threads though; firstly, the word
“conservative” was mentioned over and over
again in relation to how the aforementioned
investors are approaching the market; and
secondly, that if the numbers work then
there’s no reason to be put off, whatever the
market conditions.
Of the dozen or so investors I spoke to
there are a diverse number of strategies in
action this year. There are those who have
ceased buying; those who are targeting
the ‘softening’ marketplace as a buyer’s
opportunity; traders focusing on creating
capital for future buy-and-holds; new and
multiple builds replacing old stock; ancillary
dwellings being added; renovations to add
bedrooms; Auckland investors targeting
lower value properties in the provinces;
low-level meth contamination clean-ups
selling for big profit; and renovations to
add value and increase equity and/or rental
income on existing properties… phew.
In short, it’s all happening in 2017 and
there really is no need to be put off by
the potentially unpredictable changes in
the market. Acting conservatively means
knowing your numbers and being sensible
about how much you are willing to pay and
realistic about what you want to achieve.
Whatever strategy you choose to adopt in
2017, I wish you the best of luck.
Joanna Jefferies
Editor
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NZ PROPERTY INVESTOR
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