rental increases - exploitation?

[donna]

Ann Gibson of NZH says rental increases are exploitation of the housing shortage. Umm what do we think?

Rents rise every year - don't they? Yes there will be some landlords working it and getting the most they can for their rental - but an average increase of $21 a week (mentioned in the article) doesn't seem like 'exploitation' the increases mentioned below are max 5%. Umm how much have rates and insurances gone up by?

Barfoot's figures show the average weekly rent rose $19 to $476 for a three-bedroom house, $17 to $499 for a four-bedroom home and $40 to $749 for five or more bedrooms.

Source

cheers,

donna

[PC]

This is who the herald has writing about property?

The paper lives off real estate advertising - yet they can't publish an intelligent balanced article about housing without using screaming land lord bashing headings.

Oh dear.

[McDuck]

... the increases mentioned below are max 5%. Umm how much have rates and insurances gone up by...

donna

The government is busy telling people that inflation is less than a few per cent, so when consumers see any group putting up prices by more that that, they see it as unfair and price gouging. $1000 dollars extra per year looks like piracy (in that context).

Bosses wont give pay rises either, because they just point to low inflation.

[Davo36]

Donna, I saw my tenant eating meat the other day, and so as a rapacious greedy landlord I put the rent up by $50 a week and backdated it by 6 months. It's only fair and reasonable I do so.

Also petrol had gone down so I expect to increase rents even further.

Surely this is what the Herald wants to hear?

Not the truth which is that despite my rents increasing slightly I'm still making less than last year due to interest rate increases, rates increases etc. ??

[Keys]

^^ and a bad PM experience?

[Damap]

It's twaddle. Although I am with Davo. I check my tenants rubbish and if I ever find anything pricier than Pams brands I up my rents as well.
The saddest part is people, well people who are poor through their own mis management, will believe this and spread it like wildfire. We are just an anti success society sadly.

[Rosco]

Rental properties is a business, the same as any other. The intention for every landlord should be to maximise their profit, so reviewing rents is an essential part of this.

Any business sets their price based on supply and demand. If there is a shortage, then prices go up. This is basic economics! Look at say the prices for builders and trades people in Christchurch or Auckland. There is a big demand, so the price would have gone up. Same with accommodation costs in Christchurch!

I often hate the media for distorting information and making one party look bad (often property investors)

Ross

[Damap]

Yep true Ross. I mean actually everything is the same it's just easy to make it a social issue than many other businesses.

[McDuck]

Rental properties is a business, the same as any other. The intention for every landlord should be to maximise their profit, so reviewing rents is an essential part of this.

Ross

I'm not so sure about this.
Some products are" luxuries", while others are "needs".
Shelter is a need, so might be thought of in a totally different light.
Mainly because, With a luxury product, there is choice, there is an out, one might just do without, or change brands, not so with shelter.

Mostly there is the sense that landlords are really growing fat on huge capital gains (rather than rent).

Isolating housing as simply a "business activity" is not going to be seriously entertained by any government worth it's salt.

[Damap]

That doesn't mean Ross is wrong. If it is anybodys job one could argue it is government or the church's "job" to provide housing to those who need it. Private landlords in the main choose it as a business so it should be considered as such.

[McDuck]

That doesn't mean Ross is wrong. If it is anybodys job one could argue it is government or the church's "job" to provide housing to those who need it. Private landlords in the main choose it as a business so it should be considered as such.

You don't really want to compete with the Government for tenants and rents do you?

Actually it's a sweet idea. The government could control house prices buy being the landlord of last resort. Similar to how the RBNZ is the lender of last resort. I like it!

[Damap]

Well we do don't we? That's my point. If someone is meant to be doing something for nothing for social reasons then let them do it. But that isn't a business mans problem. Unless government partners with us then we can agree to do it at a reduced margin.

[McDuck]

I think you'd notice if the Government was competing with you for rent and tenants.
Like the co-operative idea though.

[Damap]

I must be not unnerstannin' something. HNZ is sort of competition. Isn't that why private investors own houses because the state can't provide enough?

[speights boy]

The paper lives off real estate advertising - yet they can't publish an intelligent balanced article about housing without using screaming land lord bashing headings.

It's similar to those who moan about the likes of power companies putting their prices up.
Don't they understand shareholders have not even doubled their money yet since the Govt sold (only + 84%); and the yield has only been a measly 11%.
Shareholders demand more.