Landlords advised against increases

Last updated 05:00 14/03/2014

Relevant offers

Your Property

Rent falls affect west, not east New peek at Christchurch heritage project City pharmacy wait nearly over High-flying stairway takes shape inside new Crowne Plaza hotel Property returns at new high Four Canterbury homes win Master Builders House of the Year awards Industrial subdivision Waterloo Business Park unearths animal remains Big new backpacker lodge adds 300 beds to Christchurch Tenants regain upper hand in Christchurch rental market Canterbury house sales up, prices flat

Christchurch landlords are being advised not to use rising council rates and mortgage payments as an excuse to hike rents.

New rating valuations released for the city on Wednesday, and the Reserve Bank's boost to interest rates yesterday, mean most property owners will be facing larger bills.

But Canterbury Property Investors Association president Lewis Donaldson said landlords should be able to absorb both increases.

"It shouldn't have a big effect. Let's face it, investors have probably had it better over the last couple of years.

"We're doing better than previously, so it doesn't make things so tight for us."

However, Donaldson believed the increases would make some would-be landlords consider whether or not it was a good time to invest.

The rating revaluations will redistribute how this year's 6.5 per cent rise in rate take will be shared among residential property owners. The Reserve Bank's increase of base lending rates by quarter of a percentage point, with more signalled to come, saw banks begin raising mortgage rates.

Christchurch rents have been rising at the rate of about 12 per cent a year due to post-quake demand.

Property manager Diane Horner, of First Avenue, was also not expecting much in the way of rent rises.

"I don't think it will affect things hugely, because we've already had these big rent rises," she said.

"Rents might go up $10 a week at rent review time as usual, and we're hoping owners won't take this as a licence to increase rents further. We'd certainly counsel them not to."

Ad Feedback

- The Press


Special offers

Featured Promotions

Sponsored Content