MEET THE PERFECT TENANT: THE GOVERNMENT!

The beauty of purchasing new investment properties with attached Housing New Zealand Corporation leases is that they come with the perfect tenant. They pay you market rent every month like clockwork for a minimum of a decade and sometimes for as long as a quarter of a century!!! If there is any tenant damage the government is legally responsible.

This means that as an investor you need not meet the tenant, you won’t attend a tenancy tribunal, you won’t fret due to your investment being vacant nor will you be troubled if there is any damage to your property.
 

As a land lord you will be responsible for normal wear and tear. Your only other commitment is to be in contact with HNZC once a year to review the rent. HNZC gets an independent rental assessment to establish market rent.
 

I tend not to hear from my clients who purchase brand new properties with HNZC leases until they are ready to purchase another property. I believe the main reason for this, is that the properties are new so that there are no maintenance issues and the properties are extremely well managed. The few calls my investors received were requests as to whether the tenants could put in a herb garden and another was to paint the fence.

I am a property strategist and I recommend these properties for people who are busy or who are first time investors. Three doctors have invested in one complex in Hamilton with 3 duplexes for the elderly. They just do not have the time or inclination to deal with tenants.
 

In another development where there are 6 free standing two bedroom homes on their own section, a doctor bought two. They had owned rental properties for years but sold up older properties to purchase brand new maintenance free properties that will be hassle free. In the same complex a couple who would struggle if they had to cover any vacancy also invested here.
 

The specifications from Housing New Zealand are extraordinary. As they are the largest land lord in New Zealand the last thing they also want is to be running around repairing things. As a result they stipulate the sturdiest of fixtures. For example the kitchen bench tops are stainless steel. The kick boards are solid wood as opposed to chip board. There are over flows in every sink. The clotheslines are purpose built old fashioned T type lines built out of galvanized pipe.

The last 6 that came available virtually sold overnight. I currently have found another 7 only free standing brick and tile homes that have been purpose built primarily for the elderly. Contact me so as not to miss out on the very few that are currently available.