Free advice for Landlords - ask our property experts a question

Do you have a property investment question you want answered? The Ask an Expert section is a free service provided for property investors in conjunction with a panel of selected property experts.

Please note that questions should be of a general nature about property investing and your question and the subsequent answer may be published in the NZ Property Investor magazine. There is a limit of ONE question per submission. We will use our discretion whether questions are published and we reserve the right to paraphrase your comments for our experts.

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Quinovic's outstanding people and systems provide the most professional, effective and reliable residential property management service in the NZ market for over 22 years.

Last answered question:

High power consumption

My tenant is complaining of high power bills ($250 to $300 per month) and is implying I should have the wiring of the house inspected. I bought the house a year ago and had a full building inspection carried out which showed no issue with wiring/electrical. I lived in the house for six months and didn't experience high power bills. I have already had a flow restrictor installed due to the tenant(s) (there are two tenants) having long showers and running the hot water cylinder out. The tenant has also been running the A/C from 'time to time'. Am I obliged to do anything further here?

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Kris is a respected commentator on the property and finance markets in New Zealand and overseas. He spends his time working closely with his support team sourcing clients leading edge finance strategies.

Last answered question:

Strategy for inheritance

We are inheriting a house and land. The land is big enough to hold three houses total. We will be freehold with no debt. Do we subdivide and build the two extra houses, or only build one house and market for a higher rental income from both properties?

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More Questions & Answers about Finance & Strategy »

Krister is ranked in the top 1% of all real estate agents nationwide and specialises in the high yielding Auckland apartment market. He is happy to share insights and information on any aspect from an extensive knowledge base built up over a decade.

Last answered question:

Plumbing cost liability?

Should an owner be informed of a leaking ceiling by the body corporate before the body corporate engages a plumber? The property is under rental guarantee with a management company? Does the owner and the owner of the upstairs apartment share the cost of the repair? Also, can I refuse to pay if work is done without my consent?

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Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.

Last answered question:

Selling investments to LTC

What I'm looking for is a little advice on investment property and tax.

We own our house - CV $1m. I owe $100k.

I bought an investment property 3 years ago for $1m. I owe $1m to the bank, current market value $1.4m (with Auckland's rapid price increases).

Now I'm thinking, how about creating a LTC and sell the investment property I own to my new LTC, and borrowing the $1.4m to use it to pay back the $1m and $100k - i.e. be mortgage free and buy a beach bach for the $300k (if I'm lucky).

The investment property rent income is $60k p.a. and the $1.4m loan at 6%, the interest cost is $84k - i.e about $30k loss p.a. after tax, return $20k which is about as much as we pay for our $100k loan interest p.a.

Do you think it is a good idea? Would the IRD & bank be OK with this?

Later on, I could always sell the bach to the LTC as well.

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More Questions & Answers about Tax/GST/LTC »

The Ministry of Business, Innovation & Employment provides information and guidance on building law and compliance, services including weathertight homes, and advice for tenants and landlords.

Last answered question:

Unhealthy rental

My partner recently found a property and had a look at it and applied for it to rent. The carpeting was stained and they said it would be cleaned. He paid the letting fee and one weeks rent in advance. At this time I had no time off work to view the property. So he took me along to view it when I had a chance. The carpet looks beyond cleanable, the house smells horrid, the blinds are broken and some of the curtains are stained. We were then told that the only water supply is tank water and we would have to buy and drink bottled water. I am six months pregnant and have been advised it is not safe for my child to bath in the water once she is born and I should not live there. But my partner has already signed the tenancy agreement. Can we get the one weeks rent in advance and letting fee back? We cannot move in there as it is totally unsuitable/unhealthy.

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Ron loves to share his passion for property and his coaching course provides one-on-one mentoring and support that will empower you with tools, strategies and valuable insights so you can achieve investment success and become a property master.

Last answered question:

Using cash reserves

To diversify my investment portfolio I want an investment property. I have a mortgage free family home with a value of $450,000. I've found a house that costs $145,000 with a RV of $149,000, rates of $2,200 and an expected rental of $255 per week. It is a small three bedroom house on a large section with loads of room for development. I have some cash reserves to build a garage, put in a heat pump, etc. As I have never done this before, does the figures work to make this worthwhile? Should I use my cash reserves to lower the mortgage amount or to tidy up the property to make it more attractive for renting?

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More Questions & Answers about Property Advice »

Last answered question:

Insurance for burnt properties

My tenant left a bucket of hot ashes outside on the wooden balcony. The bucket was full to the top. The wind picked up the ashes and set fire to the house. The fire spread to my house which is next door. The insurance won't cover a rebuild. I can't pay the bank because I've lost my income. The tenant has liability insurance for $1 million. If my insurance pays out, I can pay most of my debt that will be around $395,000. I am two houses down. Can I take the tenant to court for the cost to rebuild my house for approximately $500,000 and what are my chances of winning? Can I claim for both properties to be rebuilt?

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