PHOTO: CATHY YEULET/123RF Rent freezes and bans on evictions are causing a “perfect storm” for property investors.
Property investors are being hit by a “perfect storm” that is predicted to drive many out of the market.
Rents have been frozen and evictions are on hold for the next three months as the country responds to the Covid-19 outbreak and lockdown.
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Tenants can still terminate their tenancies, if they wish, but they can revoke termination notices their landlords have already given them.
They cannot be forced out of a property until their rent is at least 60 days in arrears.
A survey of New Zealand Property Investors Federation members found that 2 per cent of their tenants had stopped paying rent. Another 6 per cent had left their rental properties. The average amount of rental income lost after one week of lockdown was $1059.
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