Landlords worry about damage

Property investor Lisa Dudson has had a run of bad luck with damage to her properties.

She estimates there has been $28,000 of damage done to one Auckland property in particular in the past year.

‘‘There’s a lot of talk about evil landlords but not a lot of talk about tenants damaging property.’’

Taking a case to the Tenancy Tribunal might not offer much of a result.

‘‘I might get paid $5 a year for the next 365 years.’’

It was harder to make a claim for damage since a court ruling last year, she said, which meant landlords could not require their tenant to meet the costs of repair or pay damages when they had insurance specifically designed to cover that damage.

Damage had to be proved to be intentional.

The results of the latest ANZ/ New Zealand Property Investors’ Federation survey show damage to property and regulation are investors’ top concerns – regulation was cited as a risk by 52 per cent and damage 35 per cent.

Almost half said the Reserve Bank’s limits, which require investors to have 40 per cent equity in new loans, have significantly affected their investment strategy during the past year.

Dudson, who also operates a firm that helps people find properties, said the effect of those loan-to- value (LVR) rules had been dramatic.

She said ‘‘mum and dad’’ investors had been shut out of the market. ‘‘It’s made a huge difference.’’ The survey showed investors seemed to have decided the bottom of the market had been reached – the number who told the survey they planned to buy another property stabilised this year after steadily falling from 2011.

About 70 per cent said they planned to buy again at some point.

Sixty-one per cent of Auckland investors planned to buy again within two years, the highest of all the regions.

But the number of people who could not buy because of regulatory changes increased from 18 per cent to 33 per cent.

The survey found that only 3 per cent of investors now expect house prices to increase by between 11 and 20 per cent, compared to 19 per cent of investors in 2016.

The proportion expecting zero growth during the next year has risen from 3 per cent in 2016 to 13 per cent from the 2015 survey.

Rental expectations have also reduced.

Respondents across most of the country expected rental income to increase or hold steady during the next year but the percentage of investors expecting zero growth in the short term has risen from 10 per cent in 2016 to 19 per cent.

ANZ head of mortgages Glenn Stevenson said: ‘‘The 2017 ANZ Residential Property Survey results suggest that an inflection point has been reached in the market’’.

‘‘While most investors continue to expect positive changes in property values over the short and medium term, and in rental income, particularly over the medium term, expectations of growth have moderated consider- ably since last year’s survey.

‘‘Despite this, the survey reveals investors remain strongly committed to the sector.’’

Commentator Shamubeel Eaqub said it was notable that Canterbury investors expected rental increases.

‘‘MBIE [Ministry of Business, Innovation and Employment] data has been showing falling rents for three years now. Suggests extreme caution in interpreting this data – as these investors’ expectations are not very accurate.’’

He said investors’ concerns around methamphetamine damage – half those worried about damage were worried about meth – signified the need for government guidelines.

Police chase

Gore police were involved in a pursuit for more than 40 minutes before the car was stopped by road spikes early on Saturday morning. Sergeant Clint Wright, of Gore, said police were called to Mataura at 4.20am after a car was reported stolen from a Terrace Rd house. Police spotted the car on the Glencoe Highway and a chase ensued until Invercargill police staff deployed road spikes to stop it. A 22-year-old Invercargill man was charged with burglary, unlawfully taking a motor vehicle, failing to stop and driving while disqualified and appeared in the Invercargill District Court yesterday.

Speeding driver

A 30-year-old Invercargill man had his licence suspended for 28 days and received a $510 infringement notice after he was clocked driving at 142kmh by police on EdendaleSeaward Downs Rd on Friday.

Axe attack

A 51-year-old Wyndham man who attacked a vehicle with an axe at Wyndham on Saturday night was also charged with cultivating cannabis. Sergeant Clint Wright, of Gore, said police were called to a domestic incident at 1am a Redan St house, where an axe had been used to damage a car. While arresting the man, police found 31 cannabis plants. The man was charged with wilful damage and cultivating cannabis, and he will appear in the Gore District Court on November 8.

Airlifted after crash

Three people were transferred to Dunedin Hospital by rescue helicopter after a crash on MokoretaTahakopa Rd on Sunday. Sergeant Clint Wright said the driver of a Toyota Prado lost control on a bend, left the road and came to stop 15 metres down a gully. It was ‘‘miraculous’’ the vehicle did not roll, he said. Inquiries into the cause of the crash were continuing.

Lego theft

Two boys were caught after stealing $600 of Lego blocks in Gore last week. Sergeant Clint Wright said police were called to The Warehouse at Gore at 5.50pm on Friday, after a 12-year-old Gore boy and a 15-yearold Invercargill boy were caught shoplifting. Both boys had been referred to Youth Aid.

Fireworks, signs stolen

Fireworks and custom signs were taken from an Orepuki holiday home that was burgled multiple times during the school holidays. A police communications spokeswoman said the burglaries occurred between October 4 and 6 at an isolated crib on Mullans Rd, near Gemstone Beach. The offenders broke several windows and stole fireworks and three new, custom-made signs, the spokeswoman said.

Sir John Kirwan visiting

Westpac ambassador Sir John Kirwan will be in Lumsden tonight to share his personal story around depression, hope, and mental wellness. He will be speaking at Northern Southland College in Lumsden from 5.30pm until 7.30pm. Kirwan said youth in New Zealand and our rural sector have the highest suicide rates and not something people can ignore. With limited seats available, people need to register.

Website launched for visitors

Queenstown Airport has launched a microsite designed to assist Chinesespeaking visitors to more easily access important travel information online. It works across mobile, tablet and desktop devices.