Workotel was established in Upper Riccarton in 2013 as a joint venture between Singaporean company Tee International and Christchurch construction and development company Artmatic Holdings.
Kiri Barfoot, a director of Barfoot and Thompson which manages around 16,500 rented Auckland properties, said that last year, rents only rose 3.2 per cent across all categories.
But in this year’s first quarter alone, CBD rents for properties which are mainly apartments jumped 9.69 per cent and rents for two-bedroom places across the entire city are up 4.62 per cent.
It’s the perfect house. It has everything inside you could possibly want, and you are absolutely in love. You know without a shadow of a doubt that this is the one, but there’s just one tiny problem that you can’t shake. You can’t change it, you can’t renovate it, and if you buy this house, you’ll be stuck with it forever. It’s plain and simply, just the wrong location.
For some people, the location of their new house is at the very top of their search lists. They won’t even look outside a certain radius for multiple reasons. Some of us have kids of school age that we don’t want to pull out and move them to a new school. Others refuse to move far from work or family. But there are those who may look to sacrifice the location of their dreams, for the house of their dreams.
For those of you who have found the perfect house, but in the wrong location, there’s plenty of ways to make the most of your new home. Let’s go through some of our favourites.
Up your resale value
If your location’s aesthetic, safety level and/or undesirable features stay relatively the same for decades to come, you might have a bit of a hard time selling it when it comes to that. To make sure that you have got a home that will sell eventually, make sure you complete a meth residue drug test before you even move in. If anyone asks when you go to sell, you can ensure that the home was cleared from meth residue before you moved in, which is a good selling point especially in a bad neighbourhood.
If there aren’t a lot of new houses in your neighbourhood, this is your perfect chance to make your home shine. That way when it comes time to sell, your house will stand out from all the rest by a mile. The exterior will be just as important, if not more important in this circumstance, than the interior. Making a good impression in a bad neighbourhood may help sway a buyer towards considering your home. Think about potential buyers driving through the neighbourhood, perhaps discouraged by the sight of it, and then driving up to your house for sale that’s gleaming with fresh paint and sparkles inside with new appliances. This is vital for selling your home quickly.
For the external, make sure the house is freshly painted before you think about selling, and the landscaping is clean, bright and tidy. Hire a landscape designer to help you out if you’re needing a quick revamp to your landscaping. For the interior, brand new appliances are always a huge selling point. Make sure any obvious fixes are fixed, like a broken hinge, a cupboard door that’s hanging off, or cracks in the wall. These seemingly small things that you have lived with for years can be an instant bad impression on a buyer. Use some of these ideas for increasing resale value as well.
Keep your security up to date
If the neighbourhood is really bad, you might consider keeping certain valuables, documents, jewelry, etc. out of the house. Think about a container rental or other type of safe place away from your home to keep the most important things. Make sure to install a home security system upon moving in. You might consider CCTV installation at the same time to amp up the safety.
Here are some additional tips to burglar-proof your home.
Look to the future
The truth is, nothing stays the same, and everything changes whether we want it to or not. Even if you had found your perfect house in your perfect neighbourhood, there’s no guarantee that in 10 years it’s exactly the location you wished for. Some areas of town that started out rough can turn into gems with a bit of city planning and community involvement. You might even consider getting involved in your local city council to see what kind of difference you can make for the future of your neighborhood!
It can feel a bit painful to sacrifice your ideal location for the perfect house, but it’s important that you stay optimistic. Perhaps you had to take your child out of their school and away from their friends. To be honest though, children are extremely adaptable and will surely make new friends and barely be fazed by the move within a year or two. That extra 30 or 40 minutes for your commute to work might be frustrating and annoying, but try to not think of it as that. Use that extra time for listening to your favourite music or podcast (try one of these amazing podcasts to get you started). You might even be able to negotiate different work hours or flexible working with your boss, considering your changed circumstances.
Be positive about the little things, like how friendly the movers were when you moved in, and how you’ll be able to explore a brand new part of town now. There are hidden gems of restaurants, coffee shops and retail shops all over a city, and you might have stumbled upon a heap of amazing places that you just haven’t discovered yet. Get curious and don’t be afraid to explore.
Remember that a bad location isn’t always a bad location for every single person out there. Circumstances change all the time, and while the location can be terrible right now, for you specifically, that doesn’t mean that it’ll always be that way, or that no one will ever buy your home when you sell it. Use these tips to keep your home fresh and updated, be positive about the future, and you’ll start to remember why you purchased this home in the first place – because you fell in love with the house!
Hutt City Council is being forced to redirect more than $19m to top up the budget for The Development Stimulus Package, which was introduced in 2012 to encourage rbuilding projects by not imposing resource consent and building consent fees, development contributions and reserves contributions.
The idea of having a property that makes money on itself without you lifting a finger is one that many people dream of. “We’ll just buy a property, rent it out, and it’ll pay off the mortgage and we’ll make heaps of cash”, is what many people say about a cash cow like a rental property. There are some truths to this, if done right, but there’s also a lot of reality that we’re missing. To bring you back down to earth, and to realise what you might actually be getting yourself into, we’ve put together some of the top things that you should know about buying a rental property.
We don’t write this to scare you out of buying; rather, the opposite! Rental properties can be extremely lucrative and can help boost your retirement savings and capital. But it is important that you know what type of work you can expect.
You’ll want a thorough budget
Let’s start with one of the most important things, first. Budgeting correctly for your own home is difficult but incredibly important, but budgeting for a second investment property like a rental is even more important. You aren’t just looking at whether or not you can afford the mortgage or having money set aside for a big repair, you also need to include what will happen if you don’t have tenants right away, or if you’re slapped with high taxes on the rent money you receive. Do your research, and talk with a financial advisor or even another rental manager if possible to get their insight.
Your budget will also need to include little things like when you have to hire out a carpet repair specialist in between tenants, or the cost of rental furniture to furnish a flat initially. Consider also the taxes on the building, like council taxes, as well as any utilities that you aren’t charging the tenant.
You’ll need to be able to pay two mortgages
The truth about rental properties is that there will always be a time when you’re paying two mortgages. Hopefully this is an occurrence that’s few and far between, but please make sure your budget is prepared for this. Even if it’s just one month in between one tenant moving out and another moving in, you should have plenty of room in your budget to cover this. We recommend having at least 6 months of the second mortgage covered, in case of long term repairs or a slow rental market. If you decide to work with a property manager instead of doing it yourself, they will likely have something written into the contract about what happens in these situations, and may cover you for a while.
You need to do a lot of research
The location and type of rental property you’re getting will decide what types of tenants you’ll get, so it’s something you need to think about. If you’re looking to attract students near a university, you’ll need a rental property that will suit them well, like small studio apartments that you can rent out at lower cost. Getting a rental appraisal will help you decide what rent you can get out of the property.
You might need renovations
If you aren’t buying a ready to move in property, be prepared to foot the bill for some reno costs. For easier renovations, you could consider doing them yourself too. Here’s a list of some renovations you might be able to tackle regardless of your experience. Basic renovations when buying a property might just be updating flooring or painting the walls, or it might be more extensive like replacing some plumbing in units.
You’ll need to write a lease
If you’ve never written a contract before, this one might seem a bit daunting, but it’s important to get right. You’ll want a strong lease that explains the ins and outs of the tenancy, as well as stating exactly what the terms and conditions are. It’s also important to include sections on what happens if a tenant needs to break the lease early, or other situations like that. That way, you both will be covered under the agreement.
You’ll be screening tenants
The tenants you have in your property should be responsible, pay rent, and alert you to any issues in the flat. It can be overwhelming to figure out who is going to be a good tenant, and still follow the tenancy laws at the same time. Here are some good tips for avoiding a bad situation with tenants.
Again, alternatively you could use a rental letting agent to take care of this for you. Many property management companies are well experienced in this process, and have access to background check software and may be able to perform a more extensive screening than you are able to.
You will be responsible for maintenance
Those midnight emergency calls about the toilet overflowing and the tenant can’t stop it are your calls to take now, good luck! In all honesty, these types of emergency calls won’t happen that often, but you will get calls about plumbing issues, something breaking, or other random maintenance often, and you’ll need to be prepared for it. If you’ve got a small property, it may be easy to keep up with the repairs yourself. For larger or multiple properties, you might need to look into hiring a maintenance company or person to manage the maintenance. If you’re lucky, you might also have a handy tenant in your property that could manage maintenance in exchange for reduced rent.
Okay, so maybe this is a lot to think about and it a bit scary, but if you can nail down these seven things than you’ll be in a lot better position to buy a rental property. Awareness is the most important thing, so simply being fully aware of the things that can go wrong and having a contingency plan for them will ensure that your rental property is a success, and that you’ll actually turn a profit from it.
If you’ve decided to rent out your property there are a number of channels that you can go down to make sure that both you and your tenant are protected. Your tenant will have most likely have looked through a number of houses for rent and they will have looked into some key areas for their peace of mind. They will want to be sure that all the relevant testing for the property and the lease agreement is of a good standard and adheres to all relevant rules and regulations. If you are the type of person that wants to take on all aspects of letting out your property yourself, then it is important that you make sure that all these aspects are covered in your lease agreement.
If an estate agent or letting agent has taken on board the letting of your property this will usually have taken care of this aspect. If however, you have decided to let out your property yourself without the help if any professionals then you will need to ensure that you have this included in the lease. Typically meth testing comes at the beginning or end of a lease, if suspected, so having a caveat about your right to test is important.
- Writing the Lease
If you are renting out your property the lease document between yourself and your tenant needs to cover the basic aspects that the tenant is responsible for and vice versa. It should outline the duties of each party so that you both understand what is required of each other. Having a well written lease is vital to prevent future problems which may otherwise occur.
Across the world there are a number of sites that will offer you a free template which will provide you a guide of how to correctly write a lease document. A lot of local governments have standardised documents which you can copy.
- Document Title
It is important to get the right title for your document. Having a title such as ‘lease’ would be okay but titles such as ‘lease agreement’ or ‘rental agreement’ are a better choice. This title chosen makes it much clearer as to what the document is about.
It is important to have a number of headings on your documents in order for it to be clear. Headings such as ‘term’, ‘rent’ and ‘property’ are all examples of titles that you could use. You can also even include a subsection which outlines the tenant’s responsibilities and the landlord’s responsibilities. Be sure to bold the titles so that they stand out and are clear.
On your document it is worth having a key which defines the document. A good example of this is to describe the word ‘rent’ so that it is explicit what is meant by rent.
Once the document has been completed don’t forget to leave a section for any signatures. The main signatures that will be needed are the tenant’s signature and the landlord signature.
- Checking the Law
This may sound like an obvious point but making sure that you adhere to all the local laws is crucial. If you innocently violate the law, you may invalidate your lease. The lease also needs to state the amount of rent that you will be charging and the frequency in which you will be charged. It is also important to advise the tenant of any other charges that may occur. Finally, don’t forget to state the length of the lease.
- Other aspects to include
On the lease you need to state where the rental property is located and if there are any other areas of responsibility. For example, any gardens or out buildings.
- The occupants
As the landlord, you’ll need to be aware of who is renting your property. You can list the names of any tenants on your lease. This will protect you if for example the tenant does not pay the rent.
- Agreeing on the rental length
As briefly mentioned above, the lease should contain a set time of how long the property will be leased for. Typically, a lease agreement is between six months and a year. That said, a short lease agreement can be possible too. You might want to add in a section on what would happen to the tenant if you put up the property for sale as well.
- Rent due date
The date that the rent is due to be paid can be added onto a lease agreement. Somewhere in the lease you also need to state any deposits that have been paid, and who they’ve been lodged with.
As part of a lease agreement it is a good idea to incorporate a section on the domesticated bills. State what the tenant is responsible for and make sure that you take accurate readings of any meters at the house before the tenant moves in to the property.
The deposit that the tenant pays should be documented, as mentioned above. A deposit is necessary in order to protect you from any damage that may occur to your property or your belongings within property whilst being rented. The deposit needs to be kept safe for when your tenants leaves so that you can return what is owed to them.
- Late Payments
On a lease agreement you need to outline the procedures for any late payments. This will help you should you ever need to terminate a lease agreement.
- The completed lease
Once your lease has been written and signed, your tenants are free to move in. Get your tenants to contact their moving company or shipping container house so that you can organise the start date of the agreement. It is worth discussing this with your tenants as some tenants like to have the house available a few days before they are ready to move their belongings in to it.
Writing a lease does not need to be daunting as long as it’s kept simple and all of the above steps are incorporated. The agreement is not there to catch anyone out, it acts as a legal guide to ensure that all parties are aware of what is expected of them, and protect both you and your tenants for the future.
Barfoot sold 474 houses last month, down from 665 in February 2018, the lowest monthly turnover since December 2008, a time when New Zealand’s mezzanine finance sector was in the process of collapsing and the global financial crisis was in full swing.
Finding the best tenants for your property can be a daunting task. Although somebody may seem okay initially, it’s impossible to judge what type of tenant they will make. From the tenant’s point of view, they will be looking for a number of attributes in a property that will suit their needs. They will judge your property on a number of aspects which we will cover shortly. For you, as the landlord, here are a number of ways to seek out the ideal tenants.
Referencing your tenants can be done in a number of ways. The first way would be to run a criminal background check. Although we hope that any criminal convictions will be spent, the type of convictions or the fact that they have been convicted in the past, may give you an insight in to the type of person you may be dealing with. Secondly you can choose to conduct a personal reference. Personal references can often be sought from a friend of the tenant or an employer. Although referencing may not directly point you to the type of person the tenant is, it will give you snippets of the type of lifestyle the tenant lives and you can then decide if this suits your property or what you are looking for in a tenant.
– Credit Checking
As with any investment, you want to ensure that you have a regular yield. Therefore, it is worth checking a potential tenant’s credit score as you will then be able to see if they will pay the rent on time. This gives you the peace of mind that they are financially secure. It is by no means a guarantee that they will pay, but it does help you to build a background picture of the tenant.
– Adhering To The Law
It is important that both tenants and landlords follow the rules and regulations that have been set by the local governments. When looking for the ideal tenants, the tenant will also expect to be treated fairly as well, as after all, it is a two-way process. If a tenant feels valued then there is more chance that they will respect your property in the way that you wish for.
– Rental History
The rental history of a prospective tenant will show you what type of tenant they have been in the past. Try to look for the reason as to why they are moving house to make sure that they are not just moving from one property to another.
– Creating Rules
When you embark on renting out a property, having some rules in place will make sure that your tenant is fully aware of what is expected of them. There is no point in assuming your tenant will know what you expect from them, you need to make things clear and black and white. Consider aspects such as:
- Will you allow pets in the property?
- Does the décor in the property need to remain as it is or can it be changed?
- Do the ages of any children in the property matter? If so what are your requirements.
You need to check to see if your tenant is in work and if so how long have they been working there for. Ask a prospective tenant questions such as:
- Have you moved in the last 6 months?
- What they earn as you need to make sure that they can comfortably afford to pay the rental amount.
– Go With Your Gut
When you have met a prospective tenant, it is human nature to make an instant judgment. If you get a bad feeling about a tenant then it is prudent to shy away from this tenant. Your basic instincts can often guide you. Again, it may not be a fair way of deciding between tenants and it is still very easy to make a mistake, but your instincts are not often wrong.
As you can see there are a number of ways of seeking out a good tenant. Another aspect to consider is what a prospective tenant will get from you and their expectations. Here are some examples:
If you take a look at the outside of a property and it is full of moss and in poor state of repair, it is worth hiring a moss removal treatment company to make sure that the appearance of the property is at its best. The same can be said for the guttering on a property. Gutter cleaning will show a prospective tenant that the property has be properly maintained. You also need to take a look at the doors and the windows of the property. Most of us will get the outside of the windows professionally cleaned but it’s also important to remember that if you have an interior window which has any damage or fogging or is dirty, this needs some attention. As remember a tenant spends most of the time inside the property not outside.
Tenants now look for a high level of security within a property. Having window and door locks and alarm system has fast become the norm. If, however you do not have an alarm in your property, getting one fitted is highly advisable. Alarm installation doesn’t have to be costly, but the more advanced that your system is, the more marketable your property will become. Consider add-ons such as panic buttons and alarm monitoring as these will show your tenants that you take security safely.
By taking the above advice in to account you can see that there are steps to follow when it comes to selecting the best tenant for your property.
If you are considering purchasing a rental property as an investment, then first off, congratulations on this exciting decision! To start, you’ll definitely need to look at property to let and scour local real estate companies. By doing this you’ll start to gain an idea of the type of rental yields that you could generate from your rental purchase. But there are many more aspects to consider before you contact a house lawyer, as you don’t necessarily have to buy a pre-existing property; you could also look for bare land for sale which you could either rent out or develop and put a new dwelling on it. Let’s now take a look at some top tips to consider before you go ahead and purchase a property for rental purposes.
To finance your rental property, it is vital that you get your personal budget in good order before you contact a refinance lawyer. Doing this will give your lawyer the head start in being able to find the best deals for loans that you may require to purchase your rental. It is not just about being able to afford the purchase of your property, you also have to factor in a contingency budget for any fees or repairs that may be required. It also advisable to know where to cut back when it comes to your personal finances as this is a great way of generating extra income when needed to do small things in your rental. There are specific aspects of finance that you need to also consider before purchasing a rental:
– Tax: Make sure you factor in any miscellaneous tax expenses that you may come into. It is worth remembering that rental income will affect your income tax.
– Own Household Expenses: Getting a handle on your utilities and household bills is a good way of formulating a strong budget. The less that you incur per month on your own domesticated bills will help you to cover the months where your rental is vacant. Remember you will still have to pay for the utilities at your rental property even when you don’t have tenants.
– Debt Clearance: You are still able to purchase a property even if you have debt against your name, but it is much easier if you clear your debts as best as you can. It allows lenders to see that you have a good control of your finances and it will also give you the opportunity to borrow more money at a lower rate.
– Be Realistic: Don’t suffer with delusions of grandeur. Be realistic about the amount of money that you can afford to spend on a property. It is far easier to keep within your means and build your portfolio if you keep a cap on your spending. If you spend too much initially, you may struggle to keep up with the payments on those inevitable vacant months.
– Getting Approved: Getting approved can be given an increased chance of success if you have a strong case to present. It is very easy to slip into simple traps which could ruin your approval rate. Get advice from industry experts about the best way of achieving your goal.
Picking Your Rental
It is worth doing thorough research on where you will purchase your rental property. Don’t get carried away with houses that you like for yourself. Try to buy sensibly and look for properties that will give you maximum yield with minimum investment. Check locally with the rental market and if you have a high percentage of families looking for rentals then properties suitable for families are what you should aim for. The same can be said for professionals, look for apartments, flats and smaller self-contained homes that would suit a professional couple.
Look for local amenities, schools, shops, pubs and restaurants which will all appeal to the average family renter. Having poor schools could put off potential tenants if they have school aged children. This is a very important factor to consider.
Type Of Property
If you are the type of person that is very handy around a home, then an older property could be suited to you as you will be able to keep up with the maintenance yourself. However, if DIY is not your thing, then a new build property with minimum maintenance may be more suitable for you.
Decide on what type of investment your rental property will be as there are many different options that people use:
– Buying For Yourself: It is not uncommon for people to buy a property and then get tenants in for a set amount of time so that they can cover their mortgage costs and make a small amount of profit.
– Buying Purely To Rent Out: You may have the intention of renting out the property for the duration of your mortgage term. In turn, this will give you an asset which has been paid for by your tenants. You then have the option to sell your property for a profit or just add the property to your portfolio of rentals.
Completing The Purchase
Once you have taken in all of the above aspects into account, you are now ready to complete your purchase. Try to focus on sticking to your budget and making sure that your rental purchase goes through without any hitches. As soon as you have tenants for your property you’ll have to make sure that you keep that property in a good state of repair so that your tenants will enjoy living there and rent for the full rental term. As part of an ongoing budget it is important that you make sure can cover the mortgage payments. In the event of your home being vacant for a length of time, this will give you the peace of mind that you need when renting out property.
So before you go ahead and purchase and rental property make sure that you take our top tips into consideration to stay within your budget.