How are you heating up your investment property?
If you're a property investor or thinking about making that leap, you'll need to know all about the latest property legislation. Introduced by the government last year, it means landlords will have to install appropriate insulation from July 1st this year.
While it might seem like a pretty big impost on your wallet, there will be subsidies available to help you through the process. But as we all know, insulation isn't a magical key to a warm home.
"A great first step"
Ensuring that an investment property is warm and functional can increase its appeal to tenants. But according to Chief Executive Officer of the New Zealand Property Investors' Federation (NZPIF) Andrew King, insulation alone "isn't even half the answer".
A January 27 release from the NZPIF states that 92 per cent of investment property owners or landlords have already installed heat pumps and insulation. However, heating and ventilation measures need to be taken by tenants to make sure homes stay dry as well as warm.
This could include fans, dehumidifiers or even natural solutions - but is this affordable for New Zealand tenants?
Lining them up
We're a long way from the days when everyone had an open fireplace and a throw rug to relax on in front of it. Now, the options for heating and drying a home are all over the place. Consumer NZ looked at all the different cost efficiencies of these methods in 2015, and the podium rankings went as follows:
- LPG unflued heaters (most expensive)
- Electric plug-in heaters
- Wood burners
- Nightstore or under floor electric heating
- Natural gas
- Heat pumps (least expensive)
Picking one of these in tandem with an appropriate ventilation system could see a home maintain its dryness and warmth, but it requires tenants to do their bit keeping heaters on and systems running. This is going to increase living costs, which presents its own set of problems.
The NZPIF has also called for certain heating items to be made tax-deductible, which could greatly improve your bottom line come the end of the financial year.
If you want to discuss your property investment prospects or cost-effective ways to manage a home loan as an investor, make sure to give us a call at Squirrel. We can't buy you a heater, but we can help you shape an ideal investment strategy.