Property

Landlords slow to take up insulation subsidy

Just 5% of the country's rental housing stock has been insulated under the Government's Warm Up New Zealand scheme.

Monday, August 06th 2012

The scheme, which has been running since 2009, has insulated 230,000 houses in its first four years, more than the target of 188,500. But just 26,000 of those homes were rental properties.

The Green Party is now lobbying for funding to be extended when it runs out in 2014.

The scheme covers 33% of the cost of insulation, or up to $1300. If a homeowner or tenant is a community services cardholder, the subsidy increases to 60%.

While the scheme has been popular right across the country, landlords have been noticeably reticent, those involved say.

Mike Underhill of EECA, the Government partner in the scheme, said it was a challenge to appeal to property investors. "We're doing our best but it is an issue."

The Green Party has a bill in the ballot that would introduce minimum energy efficiency standards for rental properties.

Auckland Property Investors Association president David Whitburn acknowledged that landlords had been slow to take up the subsidy offer.

He said some landlords were concerned that installers were upping their prices in line with the subsidy, so there was only a discount if a tenant had a community services card.

"Landlords are savvy and wait until they have a tenant with a CSC in to get a better discount. Some have their own financial issues with properties in small towns or rural areas being vacant, so they don't have the cashflow to afford it. Others I know believe their rental properties are warmer than their own homes, so they don't do it."

Obtaining finance a strictly Auckland issue

Comments

On Tuesday, August 07th 2012 12:24 pm Tim said:

So I arranged for these guys to give me a quote. Still waiting...

On Tuesday, August 07th 2012 4:29 pm Julian said:

What I would like to know, is the price of retrofitting the insulation include having to strip off the interior walls and reclad afterwards included in the total cost of the rebate? Also I would like to use Airfoam to retrofit due to its non-invasive installation to co-incide with repainting exterior but this product is NOT included in approved insulation products, which to me is stupid. Using this product for me means that I do not have to disturb my tenants and can be done once they move out/or stay in residence.

On Tuesday, August 07th 2012 5:44 pm Steve Powrie said:

We were originally keen on making use of the EECA offer, but to be honest, it was cheaper to buy a "as new" 3.5kw floor mounted heat pump and, as we were having the roof replaced, get the roofer to install batts (supplied by us) purchased from Place Makers.

On Wednesday, August 08th 2012 8:57 am Andy said:

Has anyone considered that the installation price may have been inflated under the scheme, and you can possibly do the installation yourself CHEAPER without the subsidy than paying someone to do it? As many landlords are resourceful people, I would be inclined to think that the DIY'ers amongst us are doing just that!

On Monday, August 20th 2012 5:30 am James said:

I'm with Andy on this. Its ridiculous that the govt wouldn't subsidies DIY installs. I'd have done all my properties if they had.

On Monday, August 20th 2012 3:49 pm Fred said:

But what should the subsidy be for DIY? The $4 a square meter the installers pay for the left over stuff from Aussie or the $16 a square meter retail that they charge the gullible public & government in NZ. I tried to get an installation only quote for my rental and no one was interested because they make to much money out of selling the insulation to bother with just the installation.

SBS FirstHome Combo	6.74
Heartland Bank - Online	6.89
Wairarapa Building Society	6.95
Unity	6.99
Co-operative Bank - First Home Special	7.04
ICBC	7.05
China Construction Bank	7.09
BNZ - Classic	7.24
ASB Bank	7.24
ANZ Special	7.24
TSB Special	7.24

Unity First Home Buyer special	6.45
Heartland Bank - Online	6.55
SBS Bank Special	6.69
TSB Special	6.75
Westpac Special	6.75
China Construction Bank	6.75
ICBC	6.75
AIA - Go Home Loans	6.75
ASB Bank	6.75
Unity	6.79
Co-operative Bank - Owner Occ	6.79

SBS Bank Special	6.19
ASB Bank	6.39
Westpac Special	6.39
AIA - Go Home Loans	6.39
China Construction Bank	6.40
ICBC	6.49
Kiwibank Special	6.55
BNZ - Classic	6.55
Co-operative Bank - Owner Occ	6.55
TSB Special	6.59
SBS Bank	6.79

SBS FirstHome Combo	6.19
AIA - Back My Build	6.19
ANZ Blueprint to Build	7.39
Credit Union Auckland	7.70
ICBC	7.85
Heartland Bank - Online	7.99
Pepper Money Essential	8.29
Co-operative Bank - Owner Occ	8.40
Co-operative Bank - Standard	8.40
First Credit Union Standard	8.50
Kiwibank	8.50

Property

Landlords slow to take up insulation subsidy

Next Article

Comments

Most Read

Top Mortgage Rates

More Stories

Rate cuts needed to lift mood

Support for regulation

A better investment market

[OPINION] Recessionary times