Meth contamination is top of the list of concerns for property investors, with 38% of investors viewing it as a risk.
Government regulations (especially loan-to-value and proposed loan-to-income ratios) and tenants defaulting on payments were also top concerns for residential property investors, according to a recent ANZ
Property Investment Survey.
head of mortgages Glenn Stevenson told NZ Adviser
he expected meth contamination to be among their concerns as he had heard in discussions at conferences and forums that the issue was a big concern for landlords. He said fixing meth-related damage could set investors back tens of thousands of dollars.
“It did surprise me where it was ranking in terms of their concern – overall, one of the biggest,” Stevenson says.
“Maybe just literally on a day-to-day, what is occupying their mindset is this experience of how they deal with people smoking or manufacturing P in their house.”
The survey showed meth concerns were also greatest in the Waikato, where nearly two-thirds (63%) of investors said it was a risk.
Major meth-testing company, MethSolutions released figures which showed that 40% of the 8845 homes it had checked for meth contamination in the past four years tested positive, according to the NZ Herald, with figures higher across the North Island than the South Island.
"Each month more rental properties are being tested for meth and it saddens me that the rate is not dropping," company director Miles Stratford told the NZ Herald.
"This shows that the extent of the problem is widespread and the public is only just becoming aware of the need to protect their investment assets from tenant abuse."