29-01-2009
President's January report
There usually is a feeling of optimism at the start of a new year and, in spite of the indications of an ongoing recession, 2009 is no exception. As must sell situations in the real estate market and decreasing interest rates combine to bring cash flow positive properties on to the market, many property investors will being to see fresh opportunities, which have not been around for quite some time. Becoming a member of a local Property Investors’ Association (PIA), if not a member already, will contribute to the background knowledge and information required to make the most of these opportunities. Click on the menu heading “local associations” on www.nzpif.org.nz to find the contact details of a PIA near you.
PIA members also have access to a range of member only discounts and deals and this is also a good time of year to acknowledge our many sponsors. Click on the menu heading Sponsors on the home page of www.nzpif.org.nz to find the full list. All sponsors provide benefits to our members. Here are details about some of our national sponsors - your local PIA will have information about the many local sponsors in your area.
The decision of the ANZ to become the NZPIF Platinum Partner and major sponsor highlights their aim to be the banking partner of choice for serious property investors. Their financial support of the NZ Property Investors’ Federation (NZPIF) has enabled the Federation to carry out its political lobbying role and to be recognised as the voice of the private rental industry. Their support of the annual NZPIF Conference and the annual ANZ Property Investors’ Survey have also been important. At the local level, many PIAs have joined the ANZ Partners’ Scheme, which gives an Association a positive return for every mortgage organised for one of its members. PIAs have enjoyed strong relationships with many ANZ personnel. Many of these are landlords too and able to see both sides of the coin. We appreciate working with such an informed and sympathetic sponsor.
Generation Homes became a new national sponsor last year. They are keen to offer our members great home deals and you will find out more about these if you log on to http://www.generation.co.nz/investor_specials
Careful research and reliable information will be vital when investigating some of the new opportunities in the market this year. QV Insider offers members a discounted subscription to their services. These will assist you to become the expert in your own business and less reliant on the advice of others. For instance, everyone says you can’t go wrong buying in a good area. However, the type of property you buy can make a huge difference to the return on your investment. QV Insider spotlights which rental properties will maximise your return in any area of New Zealand in which you anticipate investing
Careful selection of tenants has never been more important than it will be this year. . Accessing Veda Advantage Consumer Credit reports, or requesting the more comprehensive Bundled Consumer Credit Report, results in an objective way of forming a picture of a prospective tenant’s sense of responsibility and reliability. But remember you must have the tenant’s written approval to make these checks. Members of affiliated PIAs are given free annual memberships to Veda Advantage services, a saving of over $300 per year.
With so many property investors also being landlords, the NZPIF’s relationship with the Department of Building and Housing has been of high importance to our organisation. Being part of the series of New Landlord seminars run by the Department has given PIAs added profile and many Department of Building and Housing staff around the country are welcome speakers at PIA meetings. We also very much appreciated the Department’s support of the Landlord of the Year Award in 2008.
Maintenance of your property is critical if its true value is to be preserved. Guthrie Bowron and Dulux offer a special national pricing scheme for NZPIF members on their leading brand paints, wall paper, curtains and carpets. Show your NZPIF card at the time of purchase and the resulting discounts will mean cost effective renovations.
Electrical Services Limited, Placemakers, and Harvey Norman are just a few of the stores offering deals on purchases. Before shopping, it is worthwhile checking the Sponsors’ List on the website (or your local PIA) to find out if a particular account code needs to be quoted as well as producing a current NZPIF card.
Crombie Lockwood offers an excellent rental property insurance scheme which includes a provision for loss of rent and covers malicious damage plus damage through production of the drug P. Your Association can give you the name of your local Crombie Lockwood representative if you wish to take up this offer.. Alternatively, a Rentsure ® policy will cover loss of rent as well as malicious damage and theft. This stand-alone insurance policy, the first of its kind available in NZ, has led the field for six years and is solidly backed and underwritten by NZI. Rentsure® Specialist Landlords Insurance can be purchased on-line at www.rentsure.co.nz or by phoning 0800 RENTSURE (736878).
By using these national sponsors as well as the local ones, members cover the cost of their annual membership many times over. Each year it becomes more and more worthwhile to belong to a PIA affiliated to the NZ Property Investors’ Federation. The aim of the members of the NZPIF Executive Committee is to maintain this trend. The first meeting of the NZPIF Executive Committee for 2009 is on the 21 of February.
Martin Evans
President.