Christchurch Rents

[Gladdynook]

May have been discussed here before, so apologies if it has been, but in case it hasnt...

has anyone noticed how crazy the rental market is in christchurch and neighbouring areas? I mean over $1000/wk for 1 and 2 bedroom places!

Seems the insurance companies are paying up to $XX per night to house owners in damaged houses, so there are a few people who are capitalising on this and charging whatever they like (up to what the insurance will pay out).

http://www.trademe.co.nz/property/residential-property-to-rent/auction-595335757.htm

http://www.trademe.co.nz/property/residential-property-to-rent/auction-615928493.htm

[Maccachic]

And a pet bond!

[DazRaz]

Yes, seen it. Those two seem high very for Chch atm. As soon as insurance money dries up, it will be back to normal.

[Orkibi]

And a pet bond!

that's illegal according to experts writing in the NZ property investors Magazine... (?)

The examples you gave is per night basses, this looks like people trying to take advantage of those who have nowhere to live.
or tradies who come to work in Chch.

[hawkeye]

This includes Electricity, Landline(no tolls), broadband (WiFi), Sky TV incl sport & basic channels and fully furnished so it is not comparable with a normal rental, but with a hotel. I would say a hotel with 2 bedrooms and that much space is a bargain at $165 per night. There are also all the extra costs like more vacancies and advertising and wear and tear on all the furnishings.
When we had a holiday house pre- earthquakes we were charging more than this. Our winter power bills were up to $600 per month because if people aren't paying for power they open a window if they get hot rather than switching off the heating. After all our expenses and work taking bookings , cleaning and with some vacancies you don't get a lot more than for a normal rental which requires a lot less work. It is also not covered by normal tenancy contracts so if things get broken and people won't pay there isn't much you can do. There are also GST implications - if it is let for less than 28 day periods and you exceed the GST threshold you have to pay GST and when you sell the property you have to pay GST on that. The furnishing and chattels in ours cost around $20,000 to buy, (although we did include sheets and towels). So no, it is not the same as a normal rental and not illegal and not unreasonable. Do the maths!

It shouldn't be listed in Trademe under rentals, it should be advertised on holidayhouses or bookabach sites etc. This is making the rental figures that Trademe supplies look ridiculous.

[sidinz]

Further to what Hawkeye said, these are largely used by families who have had to move out while their own homes are being fixed.
It's a win-win-win situation as it costs the insurance companies the same or less as it would to put the family in a hotel for the duration and the family gets more space, full facilities and doesn't have to put up with 'living out of a suitcase' for what could be a lengthy stay. They are also usually more conveniently-located for day-to-day family living than a hotel would be.

Think about it: if your family had to move out for say, six weeks while your house was being repaired, where would you prefer? A cramped hotel in a high-traffic area where you had to eat lots of takeaways or convenience meals, had to pay extra for Internet access etc. or a nicely-furnished house in a suburban area with all the mod cons?

The third 'win' is for the landlord. I've seen ads where these things are booked up for months. It's not a case of capitalising on people's misery, it's meeting the need for high-quality, temporary housing while insurance work is carried out.

[sjkpark]

Further to what Hawkeye said, these are largely used by families who have had to move out while their own homes are being fixed.
It's a win-win-win situation as it costs the insurance companies the same or less as it would to put the family in a hotel for the duration and the family gets more space, full facilities and doesn't have to put up with 'living out of a suitcase' for what could be a lengthy stay. They are also usually more conveniently-located for day-to-day family living than a hotel would be.

Think about it: if your family had to move out for say, six weeks while your house was being repaired, where would you prefer? A cramped hotel in a high-traffic area where you had to eat lots of takeaways or convenience meals, had to pay extra for Internet access etc. or a nicely-furnished house in a suburban area with all the mod cons?

The third 'win' is for the landlord. I've seen ads where these things are booked up for months. It's not a case of capitalising on people's misery, it's meeting the need for high-quality, temporary housing while insurance work is carried out.

Exactly. I'm renting out my place to a friend who is going through EQC repair while I am on overseas holiday.
She gets a nice warm house in a nice suburb close to her work, with a big backyard for her doggie.
I get some help with my mortgage.
Win-win for us.

[Wayne]

In general it seems rents are higher than they were since the earthquake which is only natural. The Property Investor mag warned people entering the CH market for the 1st time to watch their gearing and cash flow. Historically low interest rates and high rents could make fo a perfect storm in a few years with higher interest rates and rents back to normal.

[speights boy]

Not a rental issue as such, but highlights one of the Christchurch problems currently.

Vendors cheat on repairs

Buyers and real estate agents say some owners are selling unrepaired or badly fixed homes after pocketing insurance payouts and are hiding crucial information.

"She was most adamant she'd only had one payment - but once we made it clear it was a legal issue she suddenly remembered she'd had three payments."

Jones said even undeclared or partly fixed damage could cost tens of thousands of dollars to fix.
Some damage was out of sight or was hidden by cosmetic repairs.
Anonymously, several agents admitted to seeing lack of disclosure.
One said undisclosed insurance payouts were "becoming a problem" for buyers.

"There are some people out there - if there's a loophole, they'll exploit it. There are so many grey areas. It's a minefield."

"People need to be warned."
Other buyers have posted their frustrations with insurance problems on internet forums.
"Who has bought a house and the old owners not passed on the money for some of the claim?
"Help please," said one.

Another wrote: "Old owners lied to their solicitor, real estate agent etc . . . took a pay out for Sept claim, didn't do repairs".