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

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  • Perry
    replied
    Is it not those with a mortgage to pay that would be borderline with bank returns?

    A person with no mortgage could - as part of 'positioning' their rental in the market - offer a slightly lower rental rate when there is no debt, yet still have an above average return.

    I'm not saying that should happen.

    The dilemma is how one goes about calculating the average.

    Thinking of your Auckland vs Galatea example.

    Leave a comment:


  • flyernzl
    replied
    He/she might be in that position, but why should they?

    Is there any reason why an individual should settle for a lesser return on their money than that which a Bank requires?

    Leave a comment:


  • Perry
    replied
    Originally posted by flyernzl View Post
    Isn't it fascinating how every landlord is expected to, and often boast that they do, keep their rental prices below the market average.

    That's a statistical impossibility, of course.
    Originally posted by Davo36 View Post
    That's funny. It's like pretty much everyone thinking they're an above average driver!
    Originally posted by artemis View Post
    And a good sense of humour.
    But who or what defines average? Be that rent, driving ability or sense of humour?

    For nominally identical properties, would not a LL with no mortgage debt be in a position to accept a less-than-average rent?

    Leave a comment:


  • artemis
    replied
    Originally posted by Davo36 View Post
    That's funny. It's like pretty much everyone thinking they're an above average driver!
    And a good sense of humour.

    Leave a comment:


  • Davo36
    replied
    Originally posted by flyernzl View Post
    Isn't it fascinating how every landord is expected to, and often boast that they do, keep their rental prices below the market average.

    That's a statistical impossibillity, of course.
    That's funny. It's like pretty much everyone thinking they're an above average driver!

    Leave a comment:


  • flyernzl
    replied
    Isn't it fascinating how every landord is expected to, and often boast that they do, keep their rental prices below the market average.

    That's a statistical impossibillity, of course.

    Leave a comment:


  • Perry
    replied
    More in what seems like a never-ending cavalcade of LL / Tenancy / rental crisis type articles.

    Landlords' fear and loathing of the New Zealand rental market
    6 Feb 2018
    New Zealand's rental market is not only troubling for would-be tenants, many landlords fear and loathe the ever-changing rules and diminishing profits, prompting some to pull their properties from the market. But not all landlords see the changes as a drug-induced road trip to Las Vegas - others are looking to Europe for ideas on how to perceive their proprietary role differently. Stuff asked three landlords to share their thoughts on the great rental squeeze.
    Regulation and costs pushing landlords out of the market says property manager
    6 Feb 2018
    A property manager says many landlords are selling their rentals as increasing regulation and costs have made keeping their properties an unattractive proposition. Feedback from people exiting the market had indicated to Oxygen they were selling because of increasingly tight regulation and compliance costs.

    Leave a comment:


  • donna
    replied
    AirBnB works well here in Kapiti as there's a lack of hotel/motel accomodation - so supply and demand at work.

    cheers,

    Donna

    Leave a comment:


  • Nick G
    replied
    With AirBNB it's a hotel operation and most hotel operators, if not all of them, systemize and outsource everything down to sourcing and cleaning linen.

    Leave a comment:


  • donna
    replied
    Very interesting comments on AirBnB experience. It's all the rage here in Kapiti and taking properties away from rental market. Weekly rents rising and tenants staying for fear of not getting another place - so yeah I see how the Air BnB wouldn't be that profitable yet restrictive. Thanks a lot for the feedback.

    cheers,

    Donna

    Leave a comment:


  • Courham
    replied
    With mine on bookabach it worked out okay. I got to use it weeknights and the weekends I wanted but booked it most weekends and ended up getting similar return as a regular rental but being able to use it as well, so it worked for me.

    Craig

    Leave a comment:


  • Perry
    replied
    Originally posted by RollingCloud View Post
    On the AIR BNB thing............ It wasnt worth it. $500 for coming in and cleaning, changing linen, towels and then washing and drying. Couldn't go away because I had to be back for cleaning, etc.Air BNB is definitely a very easy tool to use and made that part easy. But I am not sure how people make more money than a tenancy? Maybe not for a studio apartment anyway.
    Some work - some don't. Living on the property could be the difference.

    Leave a comment:


  • Perry
    replied
    Originally posted by Sharon View Post
    In view of the facts its very poor Govt policy and equally shoddy research.
    If I didn't know better, I'd say you almost sound surprised at that!

    Leave a comment:


  • Sharon
    replied
    In Hamilton we get snippets of Asian buyers investing. Not in huge quantities but they are in the market. This is mainly at upper end properties out of reach of average kiwi mum and dad investors. Even in hard times these rentals are in strong demand & at the minute simply not enough supply.
    In view of the facts its very poor Govt policy and equally shoddy research.

    Leave a comment:


  • artemis
    replied
    Originally posted by Perry View Post
    .....
    What do you mean by that?

    Or was it a heavy irony observation?
    Not irony. I was meaning overseas investors with money and a wish to build here - why would they if they have to build then sell?

    Leave a comment:

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