Compliant heating suggestions

[Rubicon]

What is the minimum heating we are required to put in a 3 brm house. Does it have to be a heat pump? We would welcome suggestions available in Wellington that are safe and tenant proof.

We also have a small one bedroom flat. Does it have to be wired in, or can I give them an oil heater?

We are elderly and getting past all this compliance stuff. Any advice would be much appreciated.

[artemis]

Yes heaters in the living room need to be fixed and there is a calculation tool at the below link to work out the heat output. Doesn't have to be a heat pump but probably does unless really tiny room.

Https://www.tenancy.govt.nz/healthy-homes/heating-standard/

Lots of other new rules coming in as well, plus big fines for not meeting them.

Most of the standards are not required yet, though statements are required for new tenancies that you promise to comply.

Quite likely we will have a Labour led government next month, but it is not a completely sure thing so worth holding off as most of the new standards and other changes could disappear almost immediately.

Although there can be significant costs to comply, the tenants are going to pay for the upgrades through rent increases and there should be capital gain coming too. Silver lining?

Seem to be more than a few landlords deciding the game is not worth the candle, selling up and enjoying the tax free capital gains. And no more hassles!

[Rubicon]

Yes heaters in the living room need to be fixed and there is a calculation tool at the below link to work out the heat output. Doesn't have to be a heat pump but probably does unless really tiny room.

Https://www.tenancy.govt.nz/healthy-homes/heating-standard/

Lots of other new rules coming in as well, plus big fines for not meeting them.

Most of the standards are not required yet, though statements are required for new tenancies that you promise to comply.

Quite likely we will have a Labour led government next month, but it is not a completely sure thing so worth holding off as most of the new standards and other changes could disappear almost immediately.

Although there can be significant costs to comply, the tenants are going to pay for the upgrades through rent increases and there should be capital gain coming too. Silver lining?

Seem to be more than a few landlords deciding the game is not worth the candle, selling up and enjoying the tax free capital gains. And no more hassles!

Thank you. Honestly speaking, its just all getting too much. We don?t like raising the rents and feel sorry for the tenants, but all out money seems to be going to taxes, insurance rates and compliance when our own home doesn?t have the luxuries we are forced to give to tenants. Yes have even seriously considering selling but worried about the safety of cash in the bank any more with the way things are going. Labour is great at taking what I?ve worked hard for to give to the sorts that never work or make sacrifices to help themselves.

Would still like someone to suggest a fixed non heat pump installation for the small flats. Many thanks.

[MargVan]

Rubicon, I completely understand when you say it's just all getting too much. We found this 3+ years ago, landlording just wasn't worth it as the only benefit came from capital gains, something largely out of our control. We also found that even with a good property manager, tenant circumstances can change and they can go from being model tenants to unreliable very quickly. We sold up and have never regretted it.
We took part of the gain to invest in a Commercial Property Fund and have a solid 6% pa (paid quarterly) income plus capital growth. We've also added to our share portfolio and rather enjoy the intellectual challenge of that - most is invested in solid, dividend paying shares but we do also keep a nice pot for more speculative shares, especially on the ASX.
So if you're over being a landlord all is not lost, there are other good opportunities that offering better returns than the bank with little risk.

[Rubicon]

Rubicon, I completely understand when you say it's just all getting too much. We found this 3+ years ago, landlording just wasn't worth it as the only benefit came from capital gains, something largely out of our control. We also found that even with a good property manager, tenant circumstances can change and they can go from being model tenants to unreliable very quickly. We sold up and have never regretted it.
We took part of the gain to invest in a Commercial Property Fund and have a solid 6% pa (paid quarterly) income plus capital growth. We've also added to our share portfolio and rather enjoy the intellectual challenge of that - most is invested in solid, dividend paying shares but we do also keep a nice pot for more speculative shares, especially on the ASX.
So if you're over being a landlord all is not lost, there are other good opportunities that offering better returns than the bank with little risk.

Thanks for the advice. Don?t you feel nervous about commercial property investment with so many businesses closing and retail too? The world is so different suddenly.
Still hoping for a suggestion for heating if anyone has one.

[MargVan]

Thanks for the advice. Don?t you feel nervous about commercial property investment with so many businesses closing and retail too? The world is so different suddenly.
Still hoping for a suggestion for heating if anyone has one.

Not nervous about commercial property at all, but then ours is solely an industrial fund so we have no exposure to retail or offices. The majority of tenants were essential businesses too. We were in two but when the government completely over-reacted about Covid-19 and placed us all into home detention, one fund cut the monthly dividend in half, the other went from 5% to 6% with every likelihood that that lost 1% will be caught up during the rest of the year. We've quit the first fund and increased our holding in the second as we felt the fund managers were more focussed on the investors than their own fees.

[artemis]

Non heat pump options. First you need to know the kw rating required using the government's calculator. Plus the restrictions on type. Once you have that information check out options on the big hardware store sites. Some are very reasonable. And have a chat to your sparky about installing before buying to make sure they can be installed as fixed heating and whether new RCD required.

You can also sell and spend - make your own home super comfortable and try a luxury cruise when we have them again!

I mentioned above wait till the election, that race is looking closer now, though anyone's guess eh!

[Rubicon]

Sorry what?s an RCD? I think my electrician might be my first stop although he?s getting as old us now. Not sure if we need to move to a younger bloke.

Nothing Id like better than to sell the lot...however the inheritors might think otherwise. Yes I agree the gap does seem to be narrowing, pity Judith doesn?t have enough time to forge ahead.

[artemis]

RCD is a circuit breaker and may be needed if the new load is too big for the current wiring. Your sparky will know for sure though would pay to check he is up with the Healthy Homes heating standards as they are quite new.

May I suggest talk to the inheritors. Quite probable they will have ideas and want you to be worry free and comfortable.

[SPerfect]

Thank you. Honestly speaking, its just all getting too much. We don?t like raising the rents and feel sorry for the tenants, but all out money seems to be going to taxes, insurance rates and compliance when our own home doesn?t have the luxuries we are forced to give to tenants. Yes have even seriously considering selling but worried about the safety of cash in the bank any more with the way things are going. Labour is great at taking what I?ve worked hard for to give to the sorts that never work or make sacrifices to help themselves.

Would still like someone to suggest a fixed non heat pump installation for the small flats. Many thanks.

Infrared heaters will work as well - especially if a smallish lounge area - theres a range of them available including being fixed to the ceiling and having remotes - again I'd make sure that is fixed. It's a drier heat and less costly than heat pumps to run and maintain

[Rubicon]

Thanks, will look them up. In any case even if we have to put 2 in a large lounge I still prefer it to the heat pumps that take up space outside as well and you need to worry about if the tenants are cleaning the filters or not.

[mrsaneperson]

I'm looking at infra red heaters as a viable option, anything from 1.5kw to 2.5kw is deemed as compliant. These retail for around $300 each and I think they are a better option than expensive, power hungry heat pumps.

[Perry]

Then all you have to do is persuade the tenants to turn them on in the winter. (No matter what sort of electrical heater it is!)

[wodger]

Rubicon, I completely understand when you say it's just all getting too much. We found this 3+ years ago, landlording just wasn't worth it as the only benefit came from capital gains, something largely out of our control. We also found that even with a good property manager, tenant circumstances can change and they can go from being model tenants to unreliable very quickly. We sold up and have never regretted it.
We took part of the gain to invest in a Commercial Property Fund and have a solid 6% pa (paid quarterly) income plus capital growth. We've also added to our share portfolio and rather enjoy the intellectual challenge of that - most is invested in solid, dividend paying shares but we do also keep a nice pot for more speculative shares, especially on the ASX.
So if you're over being a landlord all is not lost, there are other good opportunities that offering better returns than the bank with little risk.

Is the 6% before or after tax?

[MargVan]

Rubicon
Before but is a PIE fund so the tax is reduced by fund expenses and capped at 28%. Plus the income is paid at 6% of current valuation so as capital growth is booked the income paid rises. Foundation investors are now getting over 8% on their funds invested. There's a yearly valuation and even after lockdowns there is capital growth for 2020. If you want more info see provincia.co.nz.