As 2018 draws to a close, let’s dust off the crystal ball and take a look at what may be in store for Body Corporate, Cross lease, and Residents’ Society owners in 2019.
Steve Garland, General Manager Body Corporate
- Owners with mortgages will continue to see historic low interest rates during 2019. We may know that this will be the case, but the question is, will owners make the most of it?
- Annual levies should remain relatively flat next year aside from buildings which are experiencing distress (such as those facing remediation which come with nasty special levies). So if in 2019 you are not facing building issues it could present you with an ideal opportunity to either pay down some debt or alternatively build up your property rainy day fund.
- The insurance market will continue to come under stress which may see an increase in premiums, or for repetitive events specific to any one complex – like burst water pipes or flooding – an increase in excess.
- Don’t expect to see any changes to the Unit Titles legislation any time soon. The current Government is not convinced that the recent proposed changes go far enough so will hold off for now. KiwiBuild will retain their property focus as well as the proposed tax working group recommendations. Out of that will also come a focus from the Government on social housing issues and ensuring a second term in office.
- There will be an increase in investor owners using professionally managed property companies to take care of their tenants for them. This landscape is moving quickly with many legislative changes recently and more to follow so the opportunity for someone to take away the hassle of property management for a few cents on the dollar seems a no brainer.
- More property companies will look to open up a Body Corporate management division within their current operation to get in on the KiwiBuild housing hype.
- Don’t believe the hype.
2019 will continue to be another year in which the Body Corporate team at Auckland Property Management will work hard for you in assisting with the management of your home or investment property. We don’t always get it right 100% of the time but we aim too.
So on behalf of all the Body Corporate team we wish that you all enjoy the holiday season, and may 2019 bring you pleasant surprises and a stable world.