Originally posted by speights boy
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Investors will find ways to keep buying that will cost them more. Like mezz funding for example or blind structuring or whatever. THOSE costs will get passed on in rental increases. When you have a shortage of housing nothing will stop that train till the supply catches up. It's a finger in a dam solution. If the government really wanted to do something they could start buying up houses wholesale and provide housing that way. Oh that's right they used to do that but don't want to anymore. That's why they need investors to do it for them.
And last time they stomped on investors they caused a chronic rental shortage. They are just stoopid.
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Originally posted by Damap View PostInvestors will find ways to keep buying that will cost them more. Like mezz funding for example or blind structuring or whatever. THOSE costs will get passed on in rental increases.
ie just because your costs go up your rent won't necessarily if someone else doesn't have those costs and supplies cheaper.
You personally don't drive the market.
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Originally posted by Damap View PostInvestors will find ways to keep buying that will cost them more.
Comments like with 17% price growth the return doesn't matter.
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I don't speculate so I don't know what you mean.
As to your earlier comment now that 38% of all sales are to investors we do drive the rental market. Attack us and we will increase rents to recover costs. it's just business.
Most investors in Auckland especially are not trying to milk every dollar they can out of a tenant. It is simply a business. We try to minimise our losses or negative gearing and we operate on the lowest yields in the country already so anything that increases our costs will have to get passed on.
The only ones who aren;t in this position are cashed up buyers, most of whom are foreign. They pay cash so every dollar to them is a bonus. That's how they drove commercial yields so low by not requiring a decent return.
Residential is different though being so much bigger pool.
I personally don't see much speculation going on. Interest rates are so low it is easy to make deals work right now. The speculative part maybe is if in 5 years when loans come off rates have moved to 7 or 8% then there will be more blood in the water.
I learned in the GFC to never be exposed like that again. Get debt free is my new mantra, (after you have bought enough property that is) :-)
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I simply do not believe that will have any noticeable effect.
Reducing the Banks' supply of money to AKL investors will.
It won't stop investors it just adds complexity and cost, (without knowing what the changes will be at this time).
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hopefully the complete failure to plan for affordable growth
by the nimbie boomer planners of the ARC, auckland + supercity planners
will see their "let them eat cake" masters tossed out next council election
pity the cost to the whole country that sees the stop-gap solution to not enough housing in ak
being a penalty on the few people country wide actually putting enough money into housing
personally i don't see that phil goff
has the cojones to rein in the "out of control and out of touch" lefty foot soldiers who have, and still are, screwing the pooch on planning
http://www.stuff.co.nz/business/opin...ply-and-demand
Increasingly, financial markets are betting the Official Cash Rate will fall from its current level of 3.5 per cent some time this year.
But from where Wheeler sits, cutting rates will just inflame the Auckland housing market further, fuelling the threat it represents to financial stability, should the bubble burst.
He will resist lowering interest rates if it makes it even easier to borrow big for an over-priced house.
..until we build a lot more houses in Auckland, or restrict immigration numbers, this problem isn't going away.Last edited by eri; 16-04-2015, 10:23 AM.have you defeated them?
your demons
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I still think Eri the reality is we don't have a problem. In most developed nations people live where they can afford to live. There is plenty of cheap housing on Aucklands fringes people need a lesson in deferred gratification not investor bashing.
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Originally posted by Damap View PostI don't speculate so I don't know what you mean.
As to your earlier comment now that 38% of all sales are to investors we do drive the rental market. Attack us and we will increase rents to recover costs. it's just business.
That has little relationship to rents.
Supply and demand of rental tenancies will drive the rent - no matter what your costs are on the house you just brought.
Just think - if you paid an extra 20% for a house do you think that one house will get an extra 20% rent?
Removal of depreciation didn't increase rents - people said it would but it didn't.
There was no jump up in rents when it was removed.
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Originally posted by Damap View PostI still think Eri the reality is we don't have a problem. In most developed nations people live where they can afford to live. There is plenty of cheap housing on Aucklands fringes people need a lesson in deferred gratification not investor bashing.
And if you don't have to go into the CBD to work then you would be far better off.
Unfortunately they didn't price the cost of the hour or so you lost getting to or from work.
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rents are rising
and will continue to do so
until A LOT more housing is built
that'll mean cutting red tape
amended boundaries
more affordable building standards
reducing the ability of nimbies to stymie developments
that stop their home averages creeping towards $2,000,000have you defeated them?
your demons
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