I am Nervous, No I am Scared

[mrsaneperson]

No one listens to whale oil.

Hey Bright line test going to 5 years, not back dated, they don't usually do that, but hey make it 10 years or 20 years, or 100 years.
Doesn't worry me.
Rentals to hand on to your children and create generational wealth, why sell the golden goose.

Better rental standards, great news, picks up all the dodgy land lords and speculators.
But rental stock will plunge as spec holders will not be bothered with upgrading houses to get a bit of rent.
Will be cheaper for them to just keep empty houses most likely.

Rents are going to spiral really high under labours watch.

Especially all this upgrading, on top of massive Insurance and Rates Costs.
These "CAPITAL" taxs where property owners pay for council and city infrastructure.
While non property owners get all that for free.

The poor investor who cant feed his family on capital gain, who subsidised these people on the whiff of perceived equity wealth.
Will have to start charging the real cost of housing to tenants now.

Well how can we expect rents to spiral if tenants wages are stagnant? Unless Jacinda releases more welfare funds to feed a rent rise frenzy, then again imposing a draconian rent rise control would curtail the need for more welfare handouts.

I get the picture that people need somewhere to live and supply & demand theory applies but at the same time this new socialist lefty government are seeking to "eat the rich" and enrich the poor.

[Beano]

Tenants look at the TOC so the outgoings are factored in

[Aston]

Rents are going to spiral really high under labours watch.

Especially all this upgrading, on top of massive Insurance and Rates Costs.
These "CAPITAL" taxs where property owners pay for council and city infrastructure.


While non property owners get all that for free.

Well... While the bill for the rates and insurance etc is addressed to the property owner, it is actually the 'non property owner' tenant that pays these and other costs. Correct?

[Bluekiwi]

No one listens to whale oil.

Hey Bright line test going to 5 years, not back dated, they don't usually do that, but hey make it 10 years or 20 years, or 100 years.
Doesn't worry me.
Rentals to hand on to your children and create generational wealth, why sell the golden goose.

Better rental standards, great news, picks up all the dodgy land lords and speculators.
But rental stock will plunge as spec holders will not be bothered with upgrading houses to get a bit of rent.
Will be cheaper for them to just keep empty houses most likely.

Rents are going to spiral really high under labours watch.

Especially all this upgrading, on top of massive Insurance and Rates Costs.
These "CAPITAL" taxs where property owners pay for council and city infrastructure.
While non property owners get all that for free.

The poor investor who cant feed his family on capital gain, who subsidised these people on the whiff of perceived equity wealth.
Will have to start charging the real cost of housing to tenants now.

[mrsaneperson]

At least Whaleoil is trying to bring balance to all the negative twaddle on ""evil"" landlords in this fight fire with fire rebuttal op-ed piece on Phil Twyford , Minister of Housing recent commentary:

https://www.whaleoil.co.nz/2017/12/a...us-affordable/

[eri]

things are fraught

8 scotia place had a few leaks in a few B? units at lower floors

after much humming + harrying

the suggested repair is to kick everyone out for a year?

while the entire building is reclad with a curtain-wall system

and most of the decks covered in

why not just fix the effected units?

because it was felt that everything was going to leak eventually

and better to bring a failed system up to code together

than bit by bit

[Anthonyacat]

The property may not be weather tight or structurally sound."

Body Corporate minutes for the building show an Extraordinary General Meeting was held on 21 June this year to consider issues relating to weathertightness in the complex's roofs, balconies and car parks and also issues relating to its structure, fire protection and hydraulic services.

Yes - Potential problem there, though not one that we knew existed when I purchased. A little annoying. From my understanding there doesn't appear to be any weathertightness issues, but potential structural, who knows. Big report with far too many pictures and pages documenting every tiny paint-flecking, makes it tough to determine what's actually a problem.

[Courham]

I'm concerned that so far, it looks like I've got no bookings in December or January (but a couple good ones in Feb), despite the rate being dropped a little. But I've resolved to trust the managers for this Summer, stay out of their way, and fire them if there's a bad result.

I guess AirBnB gets quite a lot of last minute bookings so no hopefully that will change. However, there has been a huge increase in the number of people renting out rooms/properties via AirBnB so wouldn't be surprised that the market is getting flooded. As an example, this time last year there were 90 odd AirBnB places in Oamaru (which I thought at the time was excessive), the year before there would have been less than 20. Now there are 140+.

If it were me, I'd be (and am) hands on with management/bookings, it doesn't take that much time but each to their own- it's your potential profits you are entrusting them with.

Craig

[BlueSky]

This from the interest website I came across when searching for apartments

Bianco building


The property may not be weather tight or structurally sound."


Body Corporate minutes for the building show an Extraordinary General Meeting was held on 21 June this year to consider issues relating to weathertightness in the complex's roofs, balconies and car parks and also issues relating to its structure, fire protection and hydraulic services.


It was resolved at the meeting to strike special levies totaling $500,000 to cover further detailed investigations of the issues and legal costs.

Going back on OPS thread, Ross is making a good point.
This investment vehicle is getting more and more complex and more to the side of socialists. Its no longer a level playing field.

[Anthonyacat]

You say Airbnb manager. Is this someone who does all the letting, cleaning etc.?

Do you get a lot more rent that way? Even after their costs?

Yes, does everything. Takes 15% + GST for the effort, which frankly I think is ridiculous. There are a lot of them. MyHotel, Pillo, GuestEasy, Idle... They tend to all charge about the same.

I got an enormous profit in March and April, after all costs. Huge loss in May and June when there was large vacancy. I haven't been running it long enough to know what is exception and what is rule.

I'm concerned that so far, it looks like I've got no bookings in December or January (but a couple good ones in Feb), despite the rate being dropped a little. But I've resolved to trust the managers for this Summer, stay out of their way, and fire them if there's a bad result.

[Keithw]

Yes my attention was immediately drawn to the same question Davo.
Last week when all this anti-landord stuff looked really dangerous I started looking at AirBnB prices for the property areas relevant to me & it seemed that the nightly rates didnt add up to much more than the rents i currently get in Akld CBD, plus theres the vacancy & cleaning & admin to consider, so if Antony has effectively found an airBnB PM i'm interested in finding out more.

[Davo36]

Well that's good to know. I blamed my Airbnb manager.

You say Airbnb manager. Is this someone who does all the letting, cleaning etc.?

Do you get a lot more rent that way? Even after their costs?

[Anthonyacat]

Everybody had a lot of vacancy in May. It was deathly quiet in Airbnbs the country over.

Well that's good to know. I blamed my Airbnb manager.

And yeah Nick - the IRD won't know when you get your turnover, because you're not filing regular returns. The problem occurs in the year you do hit $60k, they'd have the ability to query why you weren't paying GST and you'd need to justify (though, unlikely they'd even query). But in my case even including the carpark lease at $300 per month, I'd need to sell 376 nights per year at $150 per night to reach $60k. Given I only rent it out for 3-4 months, and there aren't 376 nights in a full year, I should be ok!

[sidinz]

But I didn't get it quite right last year and had a lot of vacancy in April and May.

Everybody had a lot of vacancy in May. It was deathly quiet in Airbnbs the country over.

[Nick G]

Ah, OK. So they won't ping you if you make $10K in the first month of a financial year if you have previous documented plans to only lease for 5 calendar months?