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We know what is squeezing the life out of the rental market

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  • Thanks Perry for taking the time to make a complaint and report back. Stuff will be a bit more careful in future, hopefully other MSM as well.

    Comment


    • Originally posted by Courham View Post
      Good try Perry. The old adage "Never let the truth get in the way of a old story." Yet another nail in the coffin of informed unbiased journalism in NZ. Just because they have been using unfactual terms they seem to have use them enough to believe they are true. Legalese semantics.

      Craig
      Stuff was really scrambling to justify themselves. Sadly the real issue will go right past most people, including many journalists. That real issue being that it is only one asset class impacted, and that it is one of several measures actual or contemplated that will encourage landlords to exit the business.

      Comment


      • Originally posted by Keys View Post
        ^^^If it made a profit Bob, it would be done already.
        Ah . . .finally found what I was looking for.

        'The Ownery'
        https://www.theownery.co.nz/offers

        They are attempting to set up a sort of contributory residential rent scheme on a corporate basis.
        Seems to have started in 2016.
        One of their initial houses is at Ellerslie, and is still pictured on their website as 'under offer'.

        There is a critique of the scheme (from 2016) at:
        https://www.interest.co.nz/property/...aken-investors

        Looks like the initial float was well under subscribed, and four years later they are still trying to flog shares in the same house.

        Not, it would appear, a raging success.

        Comment


        • Never heard of the Ownery. At least they got started. Property Mogul didn't even get that far:
          https://www.f6s.com/propertymogulnz

          Something in Stuff about it in 2015:
          https://i.stuff.co.nz/life-style/hom...dfunding-first

          Property Moose in the UK seem to have done better, but believe they didn't get/give the return's that were hoped for.
          https://propertymoose.co.uk/

          I like the idea/concept behind it. But fees and costs would need to be kept in check.

          Comment


          • 14a Gavin St, Ellerslie
            Sold 2016 for $780k
            Current value $740k

            Woops.

            (14 Gavin St is valued at $880k)

            Comment


            • This type of shared ownership scheme is not 'corporate' this is more akin to time share holiday packages of the 1980's.

              Comment


              • Pressure goes on investors to ensure properties pay
                30 June 2018
                Originally posted by Stuff
                Before the costs of ownership are deducted, the best rental returns of any of the main centres are in Aranui, Christchurch. There, the median rent of $362 provides an annual rental yield of 6.8 per cent of the median HomesEstimate value of $281,600. If the same investor put that $281,600 in the bank they could get up to 4 per cent if they locked the money away for four years.
                Is it just me, or are all such journos as thick as two short planks?

                How many PIs actually lay down the full purchase price in cash?

                I.e. Would have that amount available to put in a 4% term deposit for four years?
                Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

                Comment


                • Well me actually.
                  Bought two properties in the last 12 months, each for 100% cash.

                  Depends on what you are trying to achieve.

                  Comment


                  • Well, Peter, perhaps you're the exception that proves the rule?
                    Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

                    Comment


                    • I’m enjoying reading the articles that are conditioning my tenants to expect further rent increases.

                      Comment


                      • Originally posted by Perry View Post
                        Is it just me, or are all such journos as thick as two short planks?

                        How many PIs actually lay down the full purchase price in cash?

                        I.e. Would have that amount available to put in a 4% term deposit for four years?
                        If you are 60+ and you had, say, $2mil what would you do with it?
                        Buy a few houses with leverage and take the tenant risk or term deposit and take the money on holiday?
                        Last edited by Perry; 02-07-2018, 06:19 PM.

                        Comment


                        • What would a $2M TD yield be, after tax?

                          One rate I found was 4.25% for 4 years.

                          Presuming that and 20% tax, that would be $68k, after four years.

                          Subtract inflation (presume 6% rather than the official nonsense) and that equates to $64k of purchasing power, after four years.

                          If in the 60+ bracket, the person may not live that long.

                          Also, depending on actual age, try buying travel insurance at a venerable age.

                          Maybe the only viable option would be a within-NZ holiday?

                          But I suspect there is no one-size-fits-all answer, anyway.
                          Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

                          Comment


                          • ^

                            and don't forget

                            the nz gov doesn't guarantee bank deposits

                            https://www.interest.co.nz/opinion/8...ind-all-savers

                            so if the bank holding your $2,000,000 folded

                            you'd lose quite a bit

                            but if that $2m had been spent on 4 x $500,000 houses....
                            Last edited by eri; 02-07-2018, 07:50 PM.
                            have you defeated them?
                            your demons

                            Comment


                            • In the modern environment, decent sized banks never fail. They aren't allowed to right?

                              But if one did, then if you had a mortgage with them... you'd be in the poo as well.
                              Squadly dinky do!

                              Comment


                              • A haircut by any other name.

                                A politically expedient form of corporate welfare.
                                Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

                                Comment

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