Back in August we wrote about the changes to the Residential Tenancy Act and how they will affect the rental market, particularly the amendment where tenancies will automatically roll over to periodic at the end of the fixed term. 

As of the 11th of February we will be adding a new clause to our tenancy agreement that will negate this change so we can carry on as normal without worrying about tenancies rolling over to periodic and creating uncertainty.  Tenants will still have the opportunity to sign a brand new fixed term agreement should they wish to stay on for another year.  The option for a periodic tenancy is also still available should the landlord decide that they prefer a periodic tenancy.

We won’t know 100% if this clause will stand up until it has been properly tested but we can’t see any logical, legal argument against it.

We are currently working through healthy homes reports and most things are common sense and quite straight forward.  In saying that, the more reports you go through, the more you see how ridiculous some of these new regulations are.  If someone can explain how a small gap in the lining of an internal wall that’s insulated will cause a draught, please contact us and let us know.

Even if some of these new regulations don’t make a lot of sense, the Labour Government (if they win the election) will fund MBIE’s Tenancy Investigations and Compliance team a further $16million over the next four years so we have to be on top of this to avoid fines.

As of 1 December any new tenancy agreement needs to have a Healthy Homes Statement of Compliance attached.  The Tenancy Services template is 13 pages long however we have drafted up a much simpler version that is only 1.5 pages long.   It’s not 100% complete but it’s very nearly done.

If you would like more information regarding any of the above then feel free to contact Matt on 0273100529 or matt@cutlers.co.nz.

“Dunedin’s median price increased to $568,000 — a record high for the city and 17% up on last year.”

Otago daily times

All the talk coming out of the initial Covid lockdown was how the property market would survive, looking at Septembers figures we can say the effect has been nothing short of a continuing boom with little impact on the monthly statistics.

The Greater Dunedin monthly sales figure for 2020 was 216, an increase of 5 sales from last September’s figure. The big change however is the record figure for median sale price, recorded at $568,000, a rise of over 17% from the corresponding time last year, $485,000. Median days to sell stays steady in comparison, sitting at 22 days.

The low and attractive borrowing rates would have to be the biggest factor that continues to drive our market upwards. Also, given the Reserve Bank has relaxed the rules around loan/value ratio for deposits, we are seeing many buyers taking advantage of these unprecedented rates and options currently available. Other factors will be the number of ex-pats arriving back in the country and buyers who have disposable income that is typically put towards overseas holidays.

With only 246 properties currently available in our market place, we still see many listings receiving large numbers at our open homes and multiple offers for the vendors to consider.

If you are looking to purchase a home we suggest you register your name and details with our team here at Cutlers. We will keep you updated with all the new properties we have coming to the market.