Step on to the landlord ladder with Housing NZ

For thousands of inexperienced investors burned by Blue Chip and similar property schemes, the words "guaranteed rent" sound alarm bells.

But what if you could get guaranteed market rent for your investment property 52 weeks a year regardless of vacant periods _ with the security of knowing the Government was backing the lease?

It's not too good to be true. Changes to Housing New Zealand (HNZ) policies make the proposition of leasing a house to it more attractive than ever, especially for investors wanting to avoid the hassle of being a hands-on landlord.

Housing investment specialists Home Investments (2008) Limited calculate that on a property costing $460,000, bought on 100 per cent finance at 8 per cent interest and leased to Housing New Zealand, an investor could expect an eventual weekly profit of around $386. The property's increased value in 10 years would be $879,837.

Further encouraging news for would-be investors comes from National, which has confirmed it will retain existing tax rules and deduction provisions for rental property owners.

HNZ is the country's biggest landlord _ it owns or manages 68,000 properties throughout the country.

However, just under 3000 of the homes it rents out are leased from private property owners.

It leases privately owned properties in areas where there is high demand for affordable rental housing _ mainly in Auckland, but also in Christchurch, Nelson, Napier, Wellington, Tauranga, Hamilton, Whangarei and New Plymouth.

To read the full NZ Herald article click here

Posted: 18 Nov 2008

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