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Should you become a landlord in 2024?

Anna
27 July 2024

Becoming a landlord is a significant decision that comes with both opportunities and responsibilities. As we move through 2024, the New Zealand property market presents a unique landscape that may make now an ideal time to consider investing in property.

New debt-ratio requirements, the bright-line test reverting to two years, changes to interest deductibility rules, and an increase in property listings nationwide have prompted many to view 2024 as an opportune time to consider their next investment. This positive outlook is expected to improve further in the coming months as highly anticipated changes to the Residential Tenancies Act (RTA) are finalised and become law.

Why is 2024 Good for Landlords?

- Market Stabilisation & Strong Rental Demand:

The property market is stabilising, offering a more predictable environment for investment. Rental demand remains strong, ensuring that your properties are likely to be occupied, reducing vacancy rates and increasing your return on investment.

- Regulatory Changes:

The new regulations, including the bright-line test reverting to two years, offer more flexibility in managing and timing property sales. This allows for strategic planning to minimise tax liabilities. Changes to interest deductibility rules bring welcomed relief to many. They also encourage landlords to rethink their investment strategies by reevaluating financing options, potentially restructuring loans, and exploring alternative tax benefits. The upcoming amendments to the Residential Tenancies Act (RTA) will also bring positive changes to notice periods and tenancy terminations.

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- Granny Flats as an Investment Opportunity:

The government is looking into simplifying the construction of granny flats. Proposed changes include building granny flats up to 60 square meters without needing building or resource consent. This could provide a flexible option for those with extra land. Many district plans already allow granny flats without resource consent, but the new legislation aims to standardise and simplify the process nationwide by mid-2025, potentially boosting yields and capital value for investors.

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- Access to Free Resources and Community Support:

The wealth of free information available online in 2024 is unparalleled. From tenancy advice to property management tips, you can find the support you need to navigate the responsibilities of being a landlord without significant extra costs. Online communities for landlords (including various Facebook groups) are more active than ever, providing a platform to share experiences and stay updated on market trends and best practices. Joining local property investor associations, such as the New Zealand Property Investors Federation (NZPIF), can be an excellent option for those serious about investing. While there is a small fee, which is tax-deductible, the benefits include access to reliable advice and a like-minded community with industry experts and long-time investors who are happy to share their opinions and answer questions.

- Affordable Technological Advancements and Automation:

In 2024, affordable technology simplifies property management. Apps and online platforms streamline listing rentals, tenant screening, rent collection, and maintenance. Modern automation tools manage routine tasks, allowing you to focus on growing your investment portfolio. These tools help you manage properties efficiently and remotely, staying compliant and focused on urgent matters, all at a fraction of the cost of hiring a property manager. This makes it easier to be your own boss without the need for an agent.

With the market becoming more stable and multiple helpful regulatory changes, now is a great time to build a profitable property portfolio. Whether you're looking to diversify your investments or generate a steady income, 2024 provides the perfect opportunity to start your journey as a landlord.


The information contained in this article is exclusively for promotional purposes. It does not in any way constitute legal advice and should not be relied upon as the basis for any legal action or contractual dealings. The information is not and does not attempt to be, a comprehensive account of the relevant law in New Zealand. If you require legal advice, you should seek independent legal counsel. myRent.co.nz does not accept any liability that may arise from the use of this information.

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