I am considering purchasing a house leased to housing nz. Any feedback from investors as to whether this is a good thing or not? As I understand it the rental returns are guaranteed but what I want to know is are there typically problems with tenants? damage to houses? or other things to consider? Any feedback or experiences appreciated!
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Search the forum. There are a number of threads on it. Be cautious. HNZ have a history of claiming damage is reasonable wear and tear and treating the property owners like their clients. -
2 reasons I would NEVER consider Housing NZ leased rentals
- Typically lower than market rent
- Contract is long term (usually at least 5 yrs). their contracts are also written heavily in their favour and are concrete solid i.e. almost impossible to contract out of.
someone can correct me if I am wrong, but from my understanding even if you sell the house during the contract period, the new owner has to continue and they CANNOT kick out the NZH tenant (new owner inherits the tenat). This makes it VERY difficult to sell the house as you are limiting your potential buyers to landlords whom are willing to take on a NZH rental.
I for one would run a mile. What is the piont of owning a rental with no control.
ShaneLast edited by Shane D; 03-07-2012, 06:53 PM.Comment
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Yes must admit I would struggle to be convinced that a government agency could do an efficient job at running a rental property and I don't fancy the lack of control either.Comment
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