Housing New Zealand investment?

Johann asks:
(updated on Friday, November 29th 2013)

Is it a good idea to purchase an investment property which has a long-term lease agreement with Housing New Zealand?

Our Experts Answer:

We suggest you seek independent legal advice in the first instance so that you are fully aware of what is involved when purchasing a property that has a lease agreement of this nature in place, given the Ministry of Business, Innovation & Employment provides advice on the Residential Tenancies Act 1986 (the Act), which covers the relationship between landlords and tenants. There are also certain situations that are excluded under the Act. One such situation that does not fall within the jurisdiction of the Act is the agreement between a property owner and their tenant (the sub-landlord) where the arrangement is specifically set up to enable the sub-landlord to sublet the premises for the purpose of providing social housing, where such an agreement is not used as an attempt to evade any of the provisions of the Act, and where the sub-landlord will not occupy the premises. Seeking independent legal advice is the next best step for you to take.

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