5+ Property Rule

[speights boy]

I don't believe the 'other ways' will be sufficient enough to have a noticeable effect.

@Speights, oh that could be true I guess

Nek minnit

Investors will simply find other ways to invest we aren't sheep going to lie down because of political nonsense.

[Damap]

I am allowing for the fact that the changes may be very simple to get around therefore not much cost. Until they are imposed we won't know.

[Meehole]

From the horses mouth, advertised a property in Milford over a week ago, one enquiry and the rent was dropped by $100 week from what was advertised to secure a tenant. Owner could not afford to leave it vacant for any longer than 2 weeks.
Second property in Takapuna/Narrow Neck been advertised for rent since Easter, one application dropped rent $80 week from what was advertised to secure tenant.
Rental market in the top end has fallen way back. Not sure if its the time of the year, tax due and holidays but these properties purchased for or valued at 1 million plus are just not cutting the mustard as a rental.
Notice too that prices in Christchurch have come back and there is plenty to buy in the $350k range. Supply and demand, plenty to buy there now, still alot of rubbish but a ton of stock.

[speights boy]

=Meehole
Owner could not afford to leave it vacant for any longer than 2 weeks.

Too much debt.
There will be some out there who will borrow at higher costs if the banks reduce lending.
They are in danger of coming unstuck....as many greedy, overconfident or naive borrowers have done in the past.

Mr Wheeler is on the right track I reckon.

[Bob Kane]

Whatever investor action the RBNZ is planning, it appears measures will be stronger than those considered only a few months ago.

I don't think the RBNZ has any measures up it's sleeve - if it did, it would implement them instead of talking/wagging a stern finger.
It seems to admit this.
In any case, Ak house prices are not a problem and don't require a solution.

[speights boy]

Tony Alexander says the time to remove LVR restrictions is when we are heading into the next recession. Andrew Little says tweak them to focus on speculators

http://www.interest.co.nz/property/75038/tony-alexander-says-time-remove-lvr-restrictions-when-we-are-heading-next-recession-a

[Damap]

Some common sense at last......

https://www.facebook.com/MikeHoskingBreakfast/videos/vb.168001999900036/943777938989101/

[speights boy]

Editorial: Blunt words Government can't ignore

A rational response to Auckland's market would focus on reducing the excessive demand and increasing supply.

Since 2010, when depreciation writeoffs on property were removed, the Government has effectively ignored the demand side of the equation.

Mr Spencer has clearly indicated that this is no longer tenable.

http://www.nzherald.co.nz/opinion/news/article.cfm?c_id=466&objectid=1143387

[Wayne]

From the horses mouth, advertised a property in Milford over a week ago, one enquiry and the rent was dropped by $100 week from what was advertised to secure a tenant. Owner could not afford to leave it vacant for any longer than 2 weeks.
Second property in Takapuna/Narrow Neck been advertised for rent since Easter, one application dropped rent $80 week from what was advertised to secure tenant.
Rental market in the top end has fallen way back. Not sure if its the time of the year, tax due and holidays but these properties purchased for or valued at 1 million plus are just not cutting the mustard as a rental.
Notice too that prices in Christchurch have come back and there is plenty to buy in the $350k range. Supply and demand, plenty to buy there now, still alot of rubbish but a ton of stock.

Demap should have a talk with them - you can charge whatever you need apparently.

[speights boy]

Fran O'Sullivan: Housing warning should put PM on red alert

Failure to heed Reserve Bank’s words on possible crisis plain irresponsible.

When the Deputy Governor of the Reserve Bank issues a warning that the speculative boom affecting the Auckland housing market must be arrested in case it sparks a financial crisis, the Government should first sit up and take notice - then act.

Grant Spencer put the central bank's warning in the context "that an eventual market correction is likely to be disruptive to financial stability and the economy".

Spencer wants the Government to tackle the preferential tax status that residential property investors have, which has been interpreted as bringing in a capital gains tax.

A brutally designed tax - applied annually and/or retrospectively when a house is sold - could help puncture the boom.

Other options include removing tax deductibility for mortgage interest for investors with multiple residential houses; forcing them to hold investments for 10 years or more or lose all tax preferences, or reintroducing commercial interest rates for landlords.

http://www.nzherald.co.nz/business/n...ectid=11434452

[speights boy]

It's time renters used voting power

Finally, Auckland's Generation Rent has found someone who is talking about the elephant in the room - rampant speculative demand for housing by landlords.

Everyone worried about Auckland's astonishing house prices should read Reserve Bank deputy governor Grant Spencer's speech.

He spelt out in the plainest language yet that property investors are taking advantage of tax incentives to use cheap debt to buy as many houses as they can.
The powers-that-be have created an opportunity for extraordinary tax-free gains for these investors.

Generation Rent can now see the issue clearly.
The Government's top economic adviser has said landlords' tax incentives should be reduced and central Auckland apartments should be built in defiance of the Nimbys controlling Auckland politics.

Council and Government politicians are refusing to take that advice.
Landlords are celebrating because nothing will change.

At what point does Generation Rent start using its votes to change those politicians?

http://www.nzherald.co.nz/bernard-hickey/news/article.cfm?a_id=625&objectid=11434853

[Davo36]

Fran O'Sullivan knows what she's talking but Weekend at Bernie's is away with the fairies pretty often.

It's basically a media beat up as far as I can tell.

But politically JK and Co. might have to do something.

[PC]

Just bash the LLs some more.
Works every time - unless you're a tenant.