Rent crisis hits new high

[muppet]

Rent crisis hits new high

By Katherine Irvine
5:30 AM Thursday Feb 17, 2011
The rental price of a three bedroom house in Herne Bay has increased 12% in the past year. Photo / Herald on Sunday


Auckland's rental crisis is worsening, with prices rising 7 per cent in a year and desperate tenants going to extreme measures including offering to pay six months' rent in advance.
New figures show rents in the most desirable suburbs have jumped an extraordinary 24 per cent.
A lack of new construction and increasing demand from a booming population unable to get on to the property ladder are among factors getting the blame.
Last week, the Herald reported how 200 would-be tenants looked through one Kingsland rental property in just 30 minutes.
Real Estate Institute chief Helen O'Sullivan yesterday blamed the rental shortage on "pure demand and supply".
She said very little building had been done in the past 18 months as developers struggled to find finance for developments that were traditionally sought after by first-home buyers or people looking for investment units.
"You look around Auckland and you're not seeing major housing developments in rental pockets under way anywhere. The supply hasn't increased and demand has indeed grown," Mrs O'Sullivan said.
Nationally, rental prices have risen 3 per cent, according to Crockers Property figures released yesterday.
But in Auckland, the rise is more than double that.
It has been driven by rental prices in the desirable city-fringe areas such as Grey Lynn and Westmere where median rents for a three-bedroom house reached $675 a week in January - an increase of 22 per cent on the same time last year.
The median price for a three-bedroom house in Epsom, Newmarket and Royal Oak increased 24 per cent to $585 a week.

Read more at Granny Herald.

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10706841

[Momo]

Interesting. Thanks for sharing

[essence]

11 weeks searching, and still nowhere to call home

Feb 17, 2011

Event co-ordinator Kirsten Bird says finding a three-bedroom house on Auckland's city-fringe for herself, her partner and three friends has been "challenging, competitive and painful".

The 25-year-old has been looking since the end of November and was last night moving into a "cubby-hole" at her brother's while she continues searching.

"We knew it was always going to be hard because February is always a challenging month, with students coming back to university, but I've been blown away that it has taken 11 weeks to find somewhere that comes close to meeting our requirements."

Ms Bird, who flatted in Dunedin while she was a student at Otago University, said the quality and up-keep of her student flats in Dunedin were on par with what she had seen in Auckland. But the Auckland properties cost nearly twice as much.

She says she is now willing to compromise on the number of bedrooms, but not on quality.

"If you have got to hand over what pretty much amounts to a salary every year, it has to be clean, hygienic, no mould, no cracked walls."

She also doesn't want to be more than one bus stage from the central city.

[67910241]

but I've been blown away that it has taken 11 weeks to find somewhere that comes close to meeting our requirements."

Yeah, she's homeless cos she won't take anything less than Ponsonby or MAYBE Kingsland. With ensuite, preferably brand new. Internal garage.

She's even willing to settle on just 3 bedrooms and no walk-in warderobe.

How tragic!

NZ Herald - ever the favourite moaning news.

[67910241]

as Grey Lynn and Westmere where median rents for a three-bedroom house reached $675 a week in January

675 pw!!! WOW!

That's almost 5% RETURN. gross... but 5% - YAY!

[JABlog]

Move to somewhere cheap..same old story supply and demand pricing..

[67910241]

Move to somewhere cheap..same old story supply and demand pricing..

Nah, that's not the point JA. You're thinking rational.

She's got plenty of money to spend. She just CAN'T find a DECENT place to live, where she wants it, as soon as she wants it.

Daddy's little princess. God bless her...

[MarkButThis]

Heh, Mr Number guy, I read that article with the same viewpoint. How many times did the word 'want' pop up there?

I want a man to hide in a closet in my house and when I ring a bell he quietly comes out and massages my feet, only to go back into the closet when I ring the bell again.

BUT... it ain't gonna happen. I don't have the money. Boo hoo for me too.

[67910241]

I want a man to hide in a closet in my house and when I ring a bell he quietly comes out and massages my feet, only to go back into the closet when I ring the bell again.

Hey, I WANT your closet serf too, except that I WANT him to be a very good looking masseuse instead. In fact, what I want is not just a... ok... i'll stop here.

Anyway, the government must do something about this. My wants are not being met quickly enough. The society may very well collapse if this persists.

[jhab]

Renting price increased lot when I looked at Market Rent. But do you think it is temoporary or continue to increase the trench, I heard from my mate he got some enquiries to ask him at the open home if his property can do a business just like massage . Or the real agents want to push the buyers to purchase more property because of yield.

[watchful]

Hey, I WANT your closet serf too, except that I WANT him to be a very good looking masseuse instead. In fact, what I want is not just a... ok... i'll stop here.

Anyway, the government must do something about this. My wants are not being met quickly enough. The society may very well collapse if this persists.

Hey big buddy. Long time no hear. Prices have been steadily climbing (in some cases to quite ridiculous levels) here in Westmere. Can I ask, did you take my advice (quite some time ago) and buy the property you were renting in Ponsonby?

[Rolf]

Something I find really interesting is how much prejudice and ignorance a lot of people possess when it comes to house hunting - both when buying and renting. There are so many people who simply haven't got a clue about anything but their own suburb, or even their own street for that matter. In most cases they could find much much better value for money if they bothered looking in other neighboring suburbs, or (gasp) even in other parts of town...! But they just won't.

[freezinhot]

From a pure investment prospective, this type of hype is good for business, and last time I checked property investment is a business.

Next front page column please.

FH

[CherylSorin]

Rent price is increasing drastically. No wonder people are panicking and offering to pay 6 months in advance. Rent seems to be going up each month

[freezinhot]

As Dean said, this was on the cards, I wonder what the government is going to do about this now, give back depreciation?

All these rent increases must be down to losing depreciation among other obvious factors.

Surely they will see the light now.

FH