Frequently Asked Questions

How is residential investment property defined?

A residential investment property is defined as a dwelling that is not occupied by the owner but is instead rented out.  This enables the owner to enjoy rental income and capital growth from the property and may also provide tax benefits.

What makes a good investment property?

A good investment property is one that is easy to rent, with steady tenant demand and gradually increasing rental rates.  It should be built from durable, proven materials and be low maintenance.

Location is an important factor.  Good investments are likely to be in areas close to universities, hospitals and city centres with good access to public transport and shops.  These properties will always be in demand from tenants and so their capital values will continue to increase.

Why are the components of a house listed out in a chattels valuation?

For tax purposes, a dwelling is broken down into land value, improvements value and chattels value. This makes it easier to maximise tax benefits.

How can I be sure a property from Assured Property will make a good investment?

Our brand new properties present an opportunity for the astute investor to receive a healthy financial return through a combination of regular and increasing cash flows, depreciation deductions that reduce your income tax and good capital gain.  Carrying out a ‘chattels valuation’ when purchasing ensures that the maximum deductions can be claimed by your accountant.  Another benefit to buying new property is that you can expect low maintenance costs.

I read that Assured Property is a member of the New Zealand Master Builders Federation, what does this mean?

First of all, the very fact that we have applied for and been awarded New Zealand Master Builders Federation membership sets Assured Property apart from other companies involved in the building of residential investment property.  Being a New Zealand Registered Master Builder means that Assured Property has met all the criteria set down by the Master Builders Federation to become one of New Zealand's premier building and construction companies.

A major benefit to buyers is the Master Build Guarantee on New Homes.  This guarantee covers a period of 10 years.    If for any reason Assured Property is unable to complete the project, Master Build Services Ltd will find another Registered Master Builder to do so.  If construction problems arise after completion and Assured Property is not able to resolve them, Master Builders Federation will step in to put things right.

In essence the Master Build Guarantee is about risk reduction and peace of mind.  Simply put, why would an investor buy a non-Master Builder investment property when they could buy from Assured Property.

How much is the deposit and when will I need to pay it?

A 10% deposit per property is payable on the sale and purchase agreement becoming unconditional.  The deposit will be securely held in our solicitor’s trust account until settlement which occurs 5 days after the certificate of title and code of compliance have been issued.  You are not required to make progress payments as we fund the development costs ourselves.  You simply pay a deposit on unconditional date and the balance on completion date.

Should I get professional advice?

Yes.  We will endeavour to assist you in any way possible, however, as when considering any legal agreement, it is recommended you seek independent advice relating to your individual circumstances.  We can recommend professionals that will advise you if required.

What will Rentfast Ltd charge to manage my property?

A fixed annual fee of $1195 + GST.  The fee is deducted from your monthly rental income.

How does Rentfast ensure the property is let to suitable tenants?

Rentfast carries out very thorough background checks including references from previous landlords and an employers along with credit checks.  Potential tenants are also checked against the Tenancy Institute of New Zealand (TINZ) database and Tenancy Tribunal records.

Who pays for the advertising for tenants?

Basic advertising costs are included in the annual fee of $1195 + GST.  This covers advertising on Trademe, the Rentfast website and signs on the property.  Any additional advertising requirements will be discussed on a case by case basis.

What will Rentfast do if a tenant misses a rent payment?

Rentfast has a zero-tolerance policy on rent arrears.  They take immediate steps to contact tenants and begin the process to recover arrears.  If the need arises, your property manager will represent you at mediation or Tenancy Tribunal hearings.

How much is the tenant required to pay before moving into my property?

Four weeks bond and one weeks rent in advance is required, along with a letting fee of one weeks rent +GST.

How often will my property be inspected?

Property inspections take place four weeks after a tenancy begins and then every four months thereafter.  Owners recieve written inspection reports, together with photographs where appropriate.

What happens if my property requires maintenance?

Rentfast will organise repairs and maintenance on your behalf as required.  If substantial maintenance is required, quotes will be obtained and a course of action discussed with you.