Take from this what you will, I guess the whole idea of this site is to help each other out. From my view on the ground, the mood in Christchurch has changed. I'd have thought standard tenancies (as opposed to my room rentals) would take a bit longer to catch up with local economics due to their longer term nature.
There's still some work around but perhaps not the crying out for skilled workers there was, expected with EQC at 98% completion.
In the last 2 months I've had to drop my room prices by approximately 10% and removed a sleepout, expecting further drops still, as well as spending a fair bit on cosmetic improvements. I'm just about keeping the rooms at near full capacity but it's proving difficult. Whereas my phone would be constantly ringing as little as 6 months ago when I put an ad up, I now get one or two calls a day and the standard of tenant seems to have dropped slightly too. Doesn't help when I've got 5 rooms coming empty by this weekend.
According to a source at the bank, the major players in the house building game have gone from selling loads every month down to a trickle.
Checked in with the trade desk at the local Bunnings, they've noticed a significant drop of late.
Another investor I know is running at 30+% vacancy on their rooms (they haven't dropped prices I think).
Perhaps it won't be so bad if interest rates stay low but I'm feeling like some shirts may be lost reasonably soon. Doing my best to make sure it won't be mine, any tips for riding out this one are well received and appreciated as it will be my very first downturn! So far it's about improving quality, dropping prices and getting the portfolio revalued and credit in line before everything drops off.
There's still some work around but perhaps not the crying out for skilled workers there was, expected with EQC at 98% completion.
In the last 2 months I've had to drop my room prices by approximately 10% and removed a sleepout, expecting further drops still, as well as spending a fair bit on cosmetic improvements. I'm just about keeping the rooms at near full capacity but it's proving difficult. Whereas my phone would be constantly ringing as little as 6 months ago when I put an ad up, I now get one or two calls a day and the standard of tenant seems to have dropped slightly too. Doesn't help when I've got 5 rooms coming empty by this weekend.
According to a source at the bank, the major players in the house building game have gone from selling loads every month down to a trickle.
Checked in with the trade desk at the local Bunnings, they've noticed a significant drop of late.
Another investor I know is running at 30+% vacancy on their rooms (they haven't dropped prices I think).
Perhaps it won't be so bad if interest rates stay low but I'm feeling like some shirts may be lost reasonably soon. Doing my best to make sure it won't be mine, any tips for riding out this one are well received and appreciated as it will be my very first downturn! So far it's about improving quality, dropping prices and getting the portfolio revalued and credit in line before everything drops off.
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