Summit Rural Sales and Marketing Consultant Angus Malcolm, from our Richmond office on the current Rural Market. Here is what Angus had to say.

The rural market, impacted by different drivers to the residential market, has seen stock levels falling over the past six months and prices have remained strong in most sectors. With just 17 rural properties over 2ha in size listed in the Tasman District and 19 lifestyle properties, buyers are limited for choice.

Some of the main drivers for this change are:

- Supply volume remains constrained due to strong commodity prices in most sectors meaning vendors aren’t selling as their cash flows remain strong.
- Banks are keen to lend to rural properties with a proven cash flow, keeping their risk low.
- Rural demand has increased as people realise what can be bought for the same money as in town.
- Working remotely and flexible work options have become more common. This is enabling migration from cities to the countryside.

Although some of the rural sectors have increased uncertainty due to the Ukraine conflict, rising fuel costs, rising interest rates and disrupted supply lines, the overall sentiment is still relatively strong. Below we highlight three of the largest sectors:


1. Dairy. The industry has had a succession of payout forecast increases this season. Fonterra now sits at a mid-range forecast of $9.30 per kg of milk solids, making it the highest ever.

2. Beef. The strong overseas demand and a tightening of global beef supply are increasing prices and have led Beef and Lamb NZ to lift farm profit forecasts by 29% in 2021/22. Competition for traditional dry stock pasture land has seen significant pressure from forestry interests as the carbon price has strengthened over the past year.

3. Forestry. The industry has seen a highly volatile log market over the past year with overall profitability now also impacted by cost increases due to rising fuel prices.

Offsetting this is a massive expansion of new plantings on the back of carbon prices lifting 68% in the past year to over $76/tonne.

Overall, the strong commodity prices in many of the rural sectors will result in significant debt reduction, improved cash flows and improving bank balance sheets which will in turn free up lending for the rural sector. The Summit rural team is available to cast a fresh pair of eyes over your property to give you an up-to-date appraisal of its current value.

This article is from realestate.co.nz and the original one can be viewed by clicking here.

If you own a rental property, it’s likely you already know about the new healthy homes standards that came into effect on 1 July 2019. Landlords must already maintain their rental properties, but under the new standards, some will need to improve the quality of their property too. While it will ensure better and healthier homes for Kiwis, it can seem a bit overwhelming in the short-term. You might have questions like ‘What does this mean for me and my property?’ or ‘Is owning a rental property still a smart investment?’

The good news is that real estate is still a great asset. If you are willing to invest in keeping it healthy you won’t need to do as much maintenance in the long run. Plus, happy and healthy tenants are more likely to stick around and pay rent on time. Keeping your rental healthy will also remove any last-minute stress if your circumstances change and you were to sell the property.

Get ahead of the game and sort out your property now, by investing in a few key areas. Here are four easy steps to help make sure your investment is healthy and ticks all the boxes.

Before you get started, read up on the latest changes in regulation. The standards cover heating, insulation, ventilation, moisture ingress and drainage, and draughts – so check what’s required in each area. There are plenty of websites where you can find useful resources and the latest information - Raise the Standard has a handy rental health checklist to get you started.

While it’s easy to do this yourself initially, some of the standards (like insulation) may require some help or professional advice. Assessors and experienced professionals are the experts and will be able to help you create an overview of your property’s health, so you can keep track of what needs to be done.

Remember to book in regular property inspections to keep on top of maintenance issues. If your tenants don’t always let you know when problems arise, spark the conversation. Work together to solve problems as they crop up, as this will ensure your property stays in better condition in the long run.

Change won’t happen overnight. It’s important to plan and prioritise what needs to be done to keep your property healthy. By outlining this before you start work, you’ll find out what needs to be completed right away and what can be looked at later down the line.

Here are a few planning tips:

Taking action is the most important step. Before you begin any work, make sure you keep your tenants in the loop. You need to give your tenants at least 24 hours’ notice if you’re entering the property or doing work in order to meet the standards. It also helps if tenants know what upgrades you’re doing and why. There’s a great info sheet you can share with them that has simple information on the standards, and how they can help keep your rental healthy.

Some things, like painting, are okay for you to DIY – but for any bigger projects, like installing a new extractor fan, call in the tradies. It will pay off, in the long run, to get the job done well by an experienced professional.

Don’t let your hard work go to waste and stay on top of your paperwork. Landlords must keep a record of all upgrades and maintenance. This includes inspection reports, water bills, tenancy agreements, rent receipts and any documentation to prove that you’re complying with the new standards. Proper documentation can make life easy at tax time - and helps if you want to list your property in the future.

Now you know the key areas to work on, you can start ticking all the boxes when it comes to keeping your rental property healthy. It will help you attract and retain great tenants, who are willing to help ensure your property stays in great shape – making life easy for you when it comes time to sell.

For all the information you need to know to level up your rental property and stay ahead of the game, head to Raise the Standard.