1. Did you know there has been a change to the granny flat rules? As a refresher, the new law coming into force in 2026 allows a granny flat to be built without a building consent. Now, a dwelling up to 70 square metres will be able to be built, when this was previously 60 square metres. Whilst not a huge change, it will possibly now enable a two-bedroom dwelling to be built where only a one-bedroom dwelling was possible prior to that.

2. In the last issue, I touched upon some issues to consider when looking to buy leasehold property. If you do have the ability to buy a leasehold property, will you be able to freehold the property? Normally, all of the owners on the lease will also have to freehold their properties at the same time. Whilst the neighbours might be keen to go ahead, obtaining finance to do so may be difficult if they are not in a position to do so. Then there are the subdivision surveying and council compliance costs on top of that. I have heard that in certain circumstances there also may be an opportunity to freehold an individual property by itself.

3. In conjunction with reducing interest rates, bank test rates are also reducing, which is welcome news for investors. Bank test rates are used by banks to calculate whether borrowers can meet servicing tests. Not only do the bank test rates come into play when purchasing property and refinancing, they will also be used when you sell a property and want to keep some of the proceeds, and also when you are looking to extend interest-only terms on your lending.

Note: The above comments are for general information purposes only and do not constitute financial advice. We recommend consulting a registered financial advisor when considering your mortgage options.