Taranaki Property Investors' Association

taranaki@nzpif.org.nz

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18-10-2022

TPIA 18th October Monthly Meeting: OPES Partners

Richard Woodd, TPIA Executive Committee

PROPERTY STRATEGIES FOR 2023

We had a near-capacity crowd of 67 for our monthly public seminar at the Plymouth International Hotel, October 18, with Opes Partners being the drawcard.

Andrew Nicol could not make it due to illness but his fellow director Ed McKnight did very well, possibly putting on an extra good show for his mum from Hawera who was in the audience.

Ed and Andrew are the dynamic duo behind one of NZ’s most popular daily podcasts, The Property Academy, which Ed says has had 4.7 million downloads and is also viewable on YouTube. Opes publishes the simply superb monthly NZ Property investor magazine. And they have just published a book on the subject, Wealth Plan ($30 incl shipping).

Ed spoke for over an hour and answered many questions. His main topic was ‘property strategies that will work in NZ in 2023:

1.Add a bedroom within the internal floor plan, 760s-80s build era best for this.

2.Multi-unit tenancy, up and down separation, council consent vital, and sound proofing; if the two flats qualify as new builds under the IRD definition they will be exempt from the new investor taxes.

3.Kitchen & bathroom upgrade, and don’t overlook tiling, which can be great value for cost.

4.Fixtures & fittings (doorknobs, handles, light switches, towel rails etc), replace anything that outdated.

5.Internal paint job and associated décor features.

6.Carpets professionally cleaned or replaced.

7. Add a 1 or 2 bedroom cabin (no bathroom or kitchen, no consent needed), but if it all adds up to 4-5 bedrooms, you will need an extra bathroom.

 

Other tips:

If you move an existing dwelling as little as 1 metre off its site, it becomes a tax exempt new build, but note that new build definitions differ between local and government agencies. *Must receive a new CCC and be able to prove the move was to complete further subdivision or construction of your site.

Model your cashflows using the Opes return on investment calculator, sub-titled ‘the Holy Grail of spreadsheets’ (free download available from Opes website).

Non-bank lending: at higher interest rates (around 7% at present) and you should be able to cover that from rent. You may be able to secure interest-only for 3 years on 40% lvr deposit.

If there’s a change of government coming: National’s Chris Bishop is saying they’ll change the interest-deductibility and capital gains tax rules in their dfirest 100 days, but I’m sceptical it will happen that soon, unless there is a National-Act coalition. There will possibly be tougher tenancy rules for landlords and rent controls if Labour is returned, but I doubt they can tax any further.

NZ Property Investor back issues from the last 8 years will be available free online soon for NZPIF members.

 

DRINKS ARE ON US!

Don’t miss our 2022 windup night, Tuesday November 15 at the Plymouth, where selected experts will run small rotating workshops on topical matters and you can ask about anything.

Doors open 7pm, $20 for non-members, bookings essential, no cash at door. Everyone gets a chit for a free drink from the bar. Tea, coffee & biscuits provided from 7pm.

Tags: opes - monthly meetings

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