Covid-19 Economic & General Effects for PIs & PMs

[Perry]

No Surprises Here

From the Tenant Services web site

If any LLs breach these requirements, LLs may be liable for exemplary damages of up to $6,500.

However, there are no fines, damages, penalties or censure for any tenant who breaches these requirements. (Implied by omission)

How odd!

[Chris W]

Just the general commentary from Kiosaki & company about the crashing stockmarket

This one?

https://www.youtube.com/watch?v=aCDncXO7s4U

[Andrew]

Survey on effect of Covid-19


The NZPIF has developed a survey to guage the impact Covid-19 is having on rental property providers.

We will conduct this survey weekly to track effects over the coming weeks.

It is very short and only takes a few minutes to complete. It will only be open for a day or two each week, so please do it now if you can.

It is located at https://www.surveymonkey.com/r/GM97NMB

All the best to everyone.

PS: Perry, I'll post the results here!

[hawkeye]

You need a category agreed to waive this weeks rent.

[brokerman]

Mortgage holiday, sorry, deferment!

Mortgage Holidays very much top of the news at present, or shall we call it by its real name, mortgage deferment.

This should be a last resort as the interest not paid now will be added to the loan and then you pay interest on interest. Of course if this is the only option then it's essential to discuss with your lender in advance and not assume and therefore go into arrears. My understanding is that this deferred period will not affect affect credit score or loan history.

Alternatives might be.


1. If on P&I over a short term then request an extension to the term which then lowers the payments or
2. Request a period of Interest Only, even at high LVR the banks are listening with ANZ this morning offering this on a new 85% purchase.


In any event it's important to contact your lender (or any other supplier of services) and make a request for deferred or reduced payments, don't just not pay, this will certainly affect your credit rating down the track.

Stay safe and sane out there, we will get through this!

[donna]

Hi brokerman,

I was wondering if the mortgage deferment also applied to loans that are revolving lines of credit? I see you've mentioned P & I etc so what RLOCs if it's your only loan wouldn't it too be allowed in the 'mortgage holiday'?

cheers,

Donna

[brokerman]

Hi Donna, yes these are covered as treated the same as an interest only loan.

Hi brokerman,

I was wondering if the mortgage deferment also applied to loans that are revolving lines of credit? I see you've mentioned P & I etc so what RLOCs if it's your only loan wouldn't it too be allowed in the 'mortgage holiday'?

cheers,

Hi Donna, yes these are covered as treated the same as an interest only loan.


Donna

[Andrew]

Hi Hawkeye. That would be "Tenant in place and reduced rental payment agreed".

We will run this survey each week, to pick up changes like this.

Cheers

[donna]

And do you know if investors can get the mortgage deferment as I have read somewhere that it's only for owner occupiers.

[brokerman]

And do you know if investors can get the mortgage deferment as I have read somewhere that it's only for owner occupiers.

As far as I understand it it covers all residential mortgages.

[donna]

We need this Andrew - thanks. I like that it is weekly as our situation today may be different next week and the week after etc.

cheers,

Donna

[Andrew]

Thanks Donna. Hope you guys are all good and well.

[Learning]

Influenza has 3.5 million annually epidemics which
results in 250,000 to 500,000 deaths worldwide..mainly elderly and those with underlying health issues...every year..I repeat EVERY YEAR...China is already over 90% back to work...Why don't we shut the world down for influenza?

How often do they set up field hospitals in Central Park and convert convention centers in to intensive care wards for Influenza?

https://edition.cnn.com/2020/03/30/us/new-york-coronavirus-cases-deaths/index.html

[propertyfinder]

Rental shortage: surely this is only because of immigration. If the borders are closed then immigration should stop. It might swing the other way, that there are plenty of rentals or too many rentals. Homes that are now Air BnBs for tourism will be put on the normal rental market. Foreign students, particularly Asians, won't be coming to study in Auckland. What will happen to Auckland's apartment buildings (do any Kiwis live in them??). As the Baby Boomer generation starts dying (if NZ doesn't succeed in stamping out the virus then this could happen in large numbers) and their houses are vacant then all of this indicates to me there could be plenty of available housing.

If many jobs are lost, people run out of money and companies go out of business, especially if the lockdown carries on longer than a month, it would make it really hard to find tenants that can pay the rent, making any rental properties you have worthless if they can't produce an income.

[Jeffa]

Rental shortage: surely this is only because of immigration. If the borders are closed then immigration should stop. It might swing the other way, that there are plenty of rentals or too many rentals. Homes that are now Air BnBs for tourism will be put on the normal rental market. Foreign students, particularly Asians, won't be coming to study in Auckland. What will happen to Auckland's apartment buildings (do any Kiwis live in them??). As the Baby Boomer generation starts dying (if NZ doesn't succeed in stamping out the virus then this could happen in large numbers) and their houses are vacant then all of this indicates to me there could be plenty of available housing.

If many jobs are lost, people run out of money and companies go out of business, especially if the lockdown carries on longer than a month, it would make it really hard to find tenants that can pay the rent, making any rental properties you have worthless if they can't produce an income.

Oh no!it's the end of the world!! Lets sell our properties to Jeffa! And we can rent his properties!