It’s been another busy month at Lodge City Rentals, with our team kept humming by fielding enquiries, holding property viewings and signing new tenancies. In exciting news for Hamilton’s growth: 35% of our July leases were signed to people moving from outside the city. This is the highest percentage we’ve ever seen.
Of course, we’re never too busy to meet with new landlords who understand the value a highly-skilled property manager can bring to their investment property. To that end, we’d like to offer an opportunity to our existing owners:
Refer a friend to Lodge City Rentals, and if they sign up to our property management service you’ll earn a $350 dinner voucher!*
To take advantage of this offer, your friend simply needs to get in touch with our Business Development Manager Nic Elliottyson on 021536435 or nice@lodge.co.nz and note your name as a referrer in the initial contact. We’ll take it from there and will be in touch with your voucher once they sign up.
Do reach out to me on 021 880 805 if you have any questions on this offer.
Like most months, there’s been plenty happening in the wider property industry. Last week we saw the Government do a 180-degree turn on some of their rental housing policy settings. It was announced that owners of 20-plus rentals in one development, offering tenancies of 10 years or more, can now claim interest deductibility on their mortgages.
They believe this move will encourage growth of the build-to-rent sector. However, we’re well aware this will be welcome news for some owners, while disappointing for many others not covered by the change.
The other hot topics for those interested in land development and planning are the medium density housing standards (MDHS) that came into effect on August 20, and also how the wider real estate market is tracking. I’ll elaborate on these a bit more for the remainder of this blog.
MDHS: What exactly is happening?
I’ve certainly seen a lot of mixed reactions since the Government’s MDHS were announced in 2021, with homeowners concerned over what could be built on their boundary and council members worried about ‘willy-nilly’ development across their cities.
Regardless of this, the standards came into effect for all tier 1 cities across the country (Auckland, Hamilton, Tauranga, Wellington and Christchurch) on August 20. The MDRS enable up to three houses to be built three storeys high on most sections in medium density residential zones without needing resource consent, provided they comply with all other development rules and are not subject to an exemption.
Hamilton City Council’s approach proposes to modify the Government’s mandate, and whilst it was approved by council on 18 August it will now go out for public feedback. This modification means the new rules are not expected to come into effect until the full plan change process is complete (late 2023 – early 2024).
From my perspective, this change will likely make the consent process easier for some, however many developments we see around Hamilton are more than three homes of three storeys, so will still require resource consent. And given the timings above, it will likely be a few years yet until we see the full effects of this policy.
Identifying properties with value and making a move
In his latest market report, Lodge Managing Director Jeremy O’Rourke noted that with the Hamilton real estate market going through a re-pricing, there are some real bargains out there for those who can identify them.
I know many of our seasoned investors will be well-versed in how to spot an ideal investment property, but for those in the market who would like to know what types of properties are in demand as rental properties, do reach out to me. I’m happy to share market insights and trends we are seeing across Hamilton and our neighbouring Waikato townships.
As Jeremy notes, the market has changed very quickly, but he believes it will switch back just as fast; so now could be the time to make your next purchase.
That’s all from me for August, and thanks again for being part of the Lodge Rentals team. We know and value the positive synergies between owners, tenants and our property management team, and understand their importance in ensuring the rentals process works smoothly.
See you in spring,
Jason Waugh
General Manager
Lodge City Rentals
*Refer a friend offer is available to all current landlord clients of Lodge City Rentals, as at 24 August 2022. Lodge City Rentals will supply the $350 dinner voucher within 20 working days of the contract being signed. There is no limit to the number of successful referrals (and thus incentives delivered) that can be successfully completed. The incentive cannot be exchanged or redeemed for cash, and is non-transferable.