Changing Times
Proposed government reforms are set to change the game for property investors. So it pays for them to know what is going on and to make sure their voice is heard.
1 October 2018
It’s a time of great change for investors. Nearly a year after the Labour-led Government took office, promising transformation, a flood of reforms are shaking up the housing market. And right now it’s the Government’s proposed tenancy law changes that are in the spotlight.
In a bid to redress what it sees as the imbalance between landlords and tenants, the Government has suggested an extensive overhaul of tenancy laws. Following on as they do from Renters United’s radical manifesto to “fix” the rental system, the proposals have left many investors worried.
The reforms themselves, particularly in tandem with the soon-to-be-introduced Healthy Homes minimum standards, will increase both the costs and work involved in providing rental properties. But it seems to me that it’s the adversarial approach of tenant advocates, and what that represents, that is of most concern to investors.
In a climate that is already ill-disposed to investors, the worry is that the reforms will tip the balance so far in favour of tenants that investors will lose control over their assets. This month our lead article takes a look at what the proposed reforms might mean for investors and how they can respond.
One message to emerge is that it is critical for investors to make sure they speak up and have a say during the consultation period. That could be via an individual submission or through their local Property Investors’ Association. To ensure some balance is retained in the ongoing dialogue about how New Zealand’s rental market will evolve, the voice of investors needs to be heard.
It’s also important for investors to make sure they are informed about the laws that apply to them – be they tenancy or tax, and how to act correctly within them. In general, they need to approach their investing as a business and, in this issue, we find out how business plans can help investors succeed.
The aim of this magazine has always been to provide a helping hand with all of this – and to educate, inform and inspire investors so they can build their portfolio and achieve their property goals. We have recently had a slight editorial change of guard: our amazing former editor, Joanna Jefferies, has taken up the role of associate editor and I’m now the editor.
But our goals remain the same. And, to that end, I want to encourage investors to get in touch with their stories, ideas and concerns. If you have something to say feel free to email me at editor@ propertyinvestor.co.nz. Alternatively, please head to the NZ Property Investor magazine Facebook page to make sure your voice is heard on the issues that matter to investors.