A MORTGAGE BROKER'S VIEW- Is your bank over secured?

Banks like having plenty of security, it’s what underpins any major finance application and gives them something to sell if things go ‘pear shaped’. What I often see happen with clients is the bank holds more security than is necessary. A bank is unlikely to be proactive and tell you they want to release a mortgage over one of your properties!
If you are a business owner or property investor for example with multiple properties, it’s worthwhile getting your structure and security position reviewed. It could be that existing securities have increased in value in such a way that a property could have its mortgage released.

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Are your Property Managers aware of new law changes?

Many private landlords will be unaware of new changes to the Residential Tenancies Act that stipulates changes in the law around insulation and clearly points out who is responsible for what around the installation of smoke alarms.

My belief has always been that gradually New Zealand will become more legislative with a greater emphasis on compliance when it comes to tenancy law and this will ultimately see more properties become professionally managed. The reason being many landlords will not want to carry the risk of making a mistake that ultimately may lead them to be fined. 

In my opinion, this is the major difference between Property Management in New Zealand compared to our colleagues across the ditch where there is so much more regulation around tenancy law.

The changes recently announced by the Government are certainly a step in that direction and our industry has the responsibility to ensure that they are educated and aware of the new law changes.

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Things You Need To Ask Before Buying An Investment Property....

Over the last 18 months we had  put in 12 offers on properties and while  we had been really close a couple of times , we still hadn’t managed to secure a property.  So I thought it was time for action, I would look for open tenders or properties that had a fixed price.   Yea right! we all know those come along each week in Wellington.  Open tenders it was!  Matt, who looks at TradeMe every day, saw a property he thought I would like. I rushed to the phone and arranged a viewing for the next day.  It was 2 large bedrooms with a study or 3rd (very small) bedroom, new kitchen and bathroom and the basement had potential.  It had been turned into 2 bedrooms with internal access in the 60s but did show signs of water damage.  This had been fixed according to the owner and she would supply invoices totaling $25K supporting this.  Alarm bells should be ringing at this stage but it didn’t smell or feel damp.  The LIM had been ordered so I made an offer with that being the only condition.  I arranged to meet with my builder the day after we went unconditional and this is where the drama started. 

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CLAUSE FOR SALES AND PURCHASE AGREEMENT

When we were discussing clauses to put in a sales and purchase agreement to buy an investment property we struggled to find one that fitted all our requirements.  Below is one that we believe covers the following; building inspection, drug testing -  P labs, water tightness, plumbing and electrical.

This agreement is, in all respects, conditional upon the purchaser being satisfied that the property is suitable for the purchaser’s requirements following the purchaser carrying out a due diligence verification of the property, including by way of example and without limitation...

1.The value and condition of the property including compliance with building and local authority regulations.

2.The terms of all encumbrances, rights and interests registered against or in respect of the title.

3.The overall financial suitability of the purchaser’s proposed purchase of the property.

The date for fulfillment of this due diligence condition is that date being (__) working days (we recommend 10 working days) after the date of this agreement. The parties acknowledge that this due diligence condition is inserted for the sole benefit of the purchaser and may at any time prior to this agreement being voided be waived by the purchaser giving written notice of waiver to the vendor.

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Rental properties face minimum standards rules ...

Rental properties will have to meet a set of minimum standards under rules to be unveiled by the Government next month.

The move will stop short of a full "warrant of fitness" for rentals but is aimed at ensuring all tenants have a safe and healthy home to live in, Government sources confirmed.

That is likely to include a requirement for insulation, although sources said there was still work to be done to set any standards at a practical level. It is due to be announced next month by Building and Housing Minister Nick Smith, along with an assessment of a warrant of fitness trial in state houses, and would apply to all rentals both private and public.  

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Article source:
Stuff
https://www.stuff.co.nz/national/politics/69212752/rental-properties-face-minimum-standards-rules