Lowest rents for a decade

[Cadmium]

Lowest rents for a decade
NZ Herald

4:00AM Sunday Apr 26, 2009
Anna Rushworth
_______________________

Landlords across the country are slashing rents to avoid having their properties stand empty as tenants find themselves in the best position for a decade.

Figures released by Crockers Real Estate this week showed substantial decreases across some of Auckland's most prestigious suburbs.

The picture is similar in other centres, such as fast-growing Tauranga and adventure capital Queenstown.

Letting agents said the recession meant cash-strapped tenants could no longer afford the record rents of yesteryear.

And owners desperate to maintain mortgage payments on investment properties were being forced to accept shorter tenancy agreements than they wanted.

Read More....


NOTE Muppet and I hit the post button at the same time. I thought Muppet might be taking a day off today.

Mods please feel free to delete this version as there is no point having two threads about the same article.

[exnzpat]

Now, where have I heard this before? Oh, yes. “The Day the Bubble Bursts” by Olly Newland. What year was that published? 2003 I think. Anyone?


Is it beginning to dawn on any of you that your old buddy exnzpat may have been right --65% to 75% drop in home prices!

[muppet]

Very interesting ex.

Gold in 2003 US$320/oz
Gold in 2009 US$913/oz

Why?

[Viking]

Because China is buying it all in preference to buying American debt. So USA and UK bankrupt by Xmas.

[Gibber]

Because China is buying it all in preference to buying American debt. So USA and UK bankrupt by Xmas.

Viking - I thought the USA and UK were already bankrupt!!

[Rosco]

In general are investors finding that rents are going down? From what I have heard from other investors and what I have seen with our own rentals, is that rents are going up slightly?

In a few areas there are bound to be a huge amout of spec building that can't be sold and is therefore rented. This will hurt the rental market short term, and this is probably why Tauranga and Queenstown were identified.

What do others think?

Ross

[exnzpat]

Very interesting ex.

Gold in 2003 US$320/oz
Gold in 2009 US$913/oz

Why?

Easy. Gold is being hoarded.

Shorted, if you like.

But soon, when cash is King, gold will be sold again and the price will fall. All things are cyclical. Don’t forget – the gold standard no longer applies and is no longer tied to the dollar. This means gold can really take a dump – but it probably won’t. But, is it a sustainable investment? Personally, I think there are far better things to invest your money in than gold.

But, I should say, that before getting too excited about gold, you should consider taking a close look at exchange rates and exactly why gold prices inflate when the dollar falls. Note: the key word of that last sentence was inflate.

To all of you who think that US cannot handle its international debts have totally misjudging this place. You have forgotten one thing. The one thing that makes this world turn – it is not gold – it is oil – and we own it all (yes we do!). Don’t you think that the Chinese know this? What is it that you don’t understand about this? This economic downturn is not a competition and even if it were New Zealand isn’t part of it. New Zealand is simply a bystander, an observer, a victim. Personally, I find it amusing that you folks don’t understand this. Education is a far better investment than gold any day, though oil, it appears, is better.

Now, here is a question for you: why are manhole covers round?

[drelly]

For a start the premise of the article is bollocks. Rents are not lower than they were 10 years ago. No where near it.

[Cadmium]

For a start the premise of the article is bollocks. Rents are not lower than they were 10 years ago. No where near it.

Thank you for saving this thread from becoming yet another thread about gold. Otherwise, Badger will be along soon, and then the discussion will become completely incomprehensible.

I have been looking at villas and villa conversions in good areas for a while and am astounded at the rents people have been paying, compared with a nice new apartment in the city.

Could this be the time when people realise, "everyday dwellings for everyday people" are much easier to rent out than a posh place in Herne Bay at $1,200 per week?

Expensive rentals can fall victim to what I think Olly called the "Grunt Factor". i.e. people just grunt, and then go and find something cheeper to rent during hard times.

The increase in quaility family homes becoming rentals when they fail to sell could be a factor in this.

Whatever the case, Crockers want to condition their Landlords down.

What are other's thoughts?

[freezinhot]

Yes I read that article this morning, I also raised the rent $10 on a property to another couple.

Im not seeing a decrease, an increase maybe. There are loads of people still looking for a roof over their heads. Funny that.

FH

[tanmedia1]

Easy. Gold is being hoarded.

Shorted, if you like.

But soon, when cash is King, gold will be sold again and the price will fall. All things are cyclical. Don’t forget – the gold standard no longer applies and is no longer tied to the dollar. This means gold can really take a dump – but it probably won’t. But, is it a sustainable investment? Personally, I think there are far better things to invest your money in than gold.

But, I should say, that before getting too excited about gold, you should consider taking a close look at exchange rates and exactly why gold prices inflate when the dollar falls. Note: the key word of that last sentence was inflate.

To all of you who think that US cannot handle its international debts have totally misjudging this place. You have forgotten one thing. The one thing that makes this world turn – it is not gold – it is oil – and we own it all (yes we do!). Don’t you think that the Chinese know this? What is it that you don’t understand about this? This economic downturn is not a competition and even if it were New Zealand isn’t part of it. New Zealand is simply a bystander, an observer, a victim. Personally, I find it amusing that you folks don’t understand this. Education is a far better investment than gold any day, though oil, it appears, is better.

Now, here is a question for you: why are manhole covers round?

I left Shangahi y'day and the increase in the Chinese govt's gold holdings was all over the front pages of the English-language newspapers. Furthermore, it's second-hand news that the Chinese govt is stockpiling copper. Looks like a smart move to me.

I own oil too. I buy it monthly as well as oil producer equities. I agree that education is also a wise investment, but so is gold if you are willing to trade.

[tanmedia1]

Thank you for saving this thread from becoming yet another thread about gold. Otherwise, Badger will be along soon, and then the discussion will become completely incomprehensible.

I have been looking at villas and villa conversions in good areas for a while and am astounded at the rents people have been paying, compared with a nice new apartment in the city.

Could this be the time when people realise, "everyday dwellings for everyday people" are much easier to rent out than a posh place in Herne Bay at $1,200 per week?

Expensive rentals can fall victim to what I think Olly called the "Grunt Factor". i.e. people just grunt, and then go and find something cheeper to rent during hard times.

The increase in quaility family homes becoming rentals when they fail to sell could be a factor in this.

Whatever the case, Crockers want to condition their Landlords down.

What are other's thoughts?

At the end of the day, the majority of NZers cannot afford more than NZD500 a week for rent. People simply don't make enough money. Whatever "creative" solutions they do to reduce rent (taking in boarders, etc.) should put more downward pressure on rents as more people inhabit a single dwelling.

It's common sense really.

[revdev]

I own oil too. I buy it monthly...

How do you go about that Tan?

Cheers,
G

[tanmedia1]

How do you go about that Tan?

Cheers,
G

ETFs in the U.S. In my case, I go through a broker here in Asia.

[tpr2]

The top end has certainly dropped massively. stuff that was over 2k per week is down to $1500.

Mid to low end seems to be inching upwards.