5+ Property Rule

[Damap]

@Speights, oh that could be true I guess
@Wayne, with overseas investors that may be true because they don;t care about yield as mush but for local investors we can and will push rents as much as possible to compensate for lowering returns.
People say rents aren't increasing much but in my main patch of Pakuranga rents are increasing constantly. People will offer over asking to get a place. So I thinkt he rents are flat mantra is false in most parts of Auckland.

And in fact if you look at Alistairs graphs HERE Auckland is lagging in rental increases and should see significant rises to catch up with CHCH and Wellywood. (assuming this hasn't already happened?)

It's just hard to find any bad news about Auckland for investors. Sad but true!

[speights boy]

reducing the ability of nimbies to stymie developments that stop their home averages creeping towards $2,000,000

Fortunately in those wealthier suburbs NIMBYs are becoming too rich and powerful.
I think more and more Aucklanders will continue to try to stop development of their own neighborhoods.
Concern over migration levels into AKL is growing, not diminishing.

[Damap]

But that will put pressure on councils to rezone land on the fringes which is what they should be doing anyway.
Who needs to live in the CBD hardly anybody works there?

[ivanp]

hardly anybody works there?

25% of Auckland jobs are in CBD

Also many skilled migrants and those on work visa work in CBD too as it's much easier for larger businesses to attract foreign workforce and more than half of large businesses are in CBD.

[Damap]

According to ACC it's 13%, no reason for anybody to live there as I said.
(25% of the old Auckland city)

Same with businesses "With 8,500 businesses, the CBD accounts for 18% of all businesses in Auckland City, with the largest being Ports of Auckland," 18% of the old Auckland City.
My point was imple there is no need to live close to the CBD only 13% of working people work there. The other 87% can live elsewhere :-)

[Wayne]

HERE[/URL] Auckland is lagging in rental increases and should see significant rises to catch up with CHCH and Wellywood. (assuming this hasn't already happened?)

Why do you think it might be lagging?
Certainly not because investors get (got) cheaper houses.
Could be an indication that until now (because rents are now going up) there wasn't really a shortage of rental property?

[Wayne]

My point was imple there is no need to live close to the CBD only 13% of working people work there.

How many would that be? Sounds like a lot.

[Damap]

45000 live there, 63000 work there. Peanuts as I said.

[speights boy]

If the RB restricts mortgage lending by Banks to investors, then net yields will increase as interest costs will reduce.

"Thank you Mr Wheeler"

[Damap]

I don't know where you get that idea from. Whatever they do to limit lending to investors will mean investors will have to pay more to get money elsewhere. Holding costs will rise not reduce.

[speights boy]

Not if loan servicing ratio restrictions come in.
These will include borrowings from ALL sources.

One of the immediate effects may be to put a stop to 'restructuring' PPOR debt onto a rental.
This would also be beneficial to the IRD.

This will also increase the net yield on the rental.
Investors will be able to pick and chose from numerous CF+ properties.

"Thank you Mr Wheeler"

[Damap]

That would take 5 minutes to get around. That is my point. You wont stop investors they just have to spend more money.

[speights boy]

There we will continue to disagree.
Too much debt is very very often the downfall of the greedy, the overconfident or the naive.

[Damap]

You're not even making any sense now. You are saying that if the gummint makes borrowing harder investors will simply borrow less and therefore rents won't increase.
If that is what you mean it's simply ridiculous. Investors will simply find other ways to invest we aren't sheep going to lie down because of political nonsense.

Your utopian attitude is surprising and completely fantastical.

[Damap]

The only people it would affect perhaps are the newbies who don't have enough equity/skill or fortitude to find a solution.
What WILL happen is the education circuit will move into high gear and these newbies will spend all their money on events learning how to buy a house they now cant afford because they spent it all on education.
I hear PJ is already warming up his Cessna