From 12 December 2018 tenants can no longer be charged a letting fee. The legislation banning letting fees was passed in late October.

Many tenants paid their landlord a letting fee of a week's rent plus GST at the beginning of their tenancy. These letting fees cover the costs of the landlord's letting agent or lawyer in setting up the tenancy.

Whilst tenants will be pleased with this change, landlords have given the news a lukewarm response saying that the letting fee ban may lead to rent rises.

Overseas Investment Amendment Act 2018 now in force

The Overseas Investment Amendment Bill has become law and is now the Overseas Investment Amendment Act 2018 (the OIA Act). It has been in force since 22 October.

The implication for you is that when you next buy residential property, there will be another layer of compliance to be completed before your property purchase goes through. Read more…

Housing may be freed up with the new foreign buyer screening process being introduced in the Overseas Investment Amendment Bill.

The Bill is currently before the Committee of the whole House; following this, it will return to the House for its final reading. Once passed, the Bill will prevent people who are not New Zealand, Australian and Singaporean citizens or residents/resident visa holders, from investing in residential land without first obtaining consent.

This restriction includes all 'transactions' with residential property, not limited to purchasing but including entering into residential tenancy agreements for a term of five years or more, or entering into periodic leases that offer a certainty of term for three years or more.

The three grounds for consent will be granted where the investor can show the investment will:
1. Increase housing in New Zealand: this will be applied where investors build new apartment complexes off the plans or purchase hotel units and lease those units back to the hotel
2. Benefit New Zealand: this will apply where the foreign investment creates jobs or investment opportunities in New Zealand, or
3. The investor shows a commitment to New Zealand: investors must normally reside in New Zealand and have spent at least 183 days out of the last 12 months in New Zealand.

The Bill will not have retrospective effect, so any overseas investor who already owns land in New Zealand or those who already have a transaction (an agreement to purchase or an existing lease) in place at the date of commencement will fall under the restrictions of the current Act where residential land is not sensitive land.

For guidance more information on how this legislation could affect you buying or selling property – either now or in the future – please give us a call.

Going flatting for the first time is an exciting step for your adult children. They get to live with people their own age and you have your freedom. How can they make the most of this new-found independence with the least risk to them? Read more…

Low-income homeowners or homeowners in low-income areas could be eligible for the new government grant to assist in keeping their homes warm in winter.

On 1 July 2018 the new four-year government programme, Warmer Kiwi Homes, came into effect. Under this initiative the government will cover up to two-thirds of the cost of underfloor and ceiling insulation or, if you have a concrete floor, ground vapour barriers. Warmer Kiwi Homes only applies to homeowners who have a Community Services Card, however, funding help no longer stretches to landlords.

Warmer Kiwi Homes replaces the previous Warm Up New Zealand initiative that provided grants for 50% of the cost of ceiling and underfloor insulation for homeowner/occupiers who had a Community Services Card, or for landlords whose tenants had a Community Services Card.

In addition to Warmer Kiwi Homes, starting in July 2019 another government grant will be made available to cover two-thirds of the cost of installing heating appliances.

To find out if you are eligible for a Warmer Kiwi Home grant, click here, or don't hesitate to contact us.

We have covered meth testing previously here and here. However, since the release of the Gluckman report, it looks as though the threshold for meth testing in properties will be lowered.  Read more…