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

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

    I found this article on Stuff - a summary of why the rental property market in NZ is drying up. Being at the coal face we know why it's a tight market and is set to get tighter yet. So what's in the article:

    "Property speculators, and to that matter accidental landlords, don't make good landlords as their intentions are not aligned for long term stable ownership which leads to poor tenant conditions, in turn leading to increased regulation and poor tenancy quality.

    "This drives up compliance and costs and reduces stability for long term landlords causing some to leave the market. This in turn drives up rental prices through reduced supply."
    Really? Are speculators Landlords? They buy and sell - or buy, renovate and sell, when do they rent the property? Only when they can not sell - (not likely to happen often).

    Yes AirBnB is more popular now due to the increased rules, regulations etc on rentals and landlords.

    Yes increased population.

    cheers,

    Donna
    Last edited by donna; 26-01-2018, 03:15 PM.
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  • #2
    interesting

    after a bad run costing thousands due to tenants trashing the property

    am moving away from professional pm

    as their priorities seem to be

    1 - getting paid

    2 - keeping the tenants paying

    3 - getting my share to me

    5. ?

    6. ?

    7. ?

    8. - protecting my asset

    the asset is worth hundreds of thousands

    but it seems only the owner

    is thinking

    long term
    Last edited by eri; 26-01-2018, 05:31 PM.
    have you defeated them?
    your demons

    Comment


    • #3
      Originally posted by donna View Post
      I found this article on Stuff - a summary of why the rental property market in NZ is drying up.
      "Property speculators, and to that matter accidental landlords, don't make good landlords as their intentions are not aligned for long term stable ownership which leads to poor tenant conditions, in turn leading to increased regulation and poor tenancy quality.

      "This drives up compliance and costs and reduces stability for long term landlords causing some to leave the market. This in turn drives up rental prices through reduced supply."
      Really? Are speculators Landlords? They buy and sell - or buy, renovate and sell, when do they rent the property? Only when they can not sell - (not likely to happen often).
      As I read the bit you quoted, a distinction was made between long term LLs and the other categories.

      Or am I mis-reading that item when it's a quote lifted from a larger item?
      Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

      Comment


      • #4
        Same item was in Granny Herald, this morning. I read it at the local supermarket cafe.

        It was an acceptable attempt at analysing the problem[s]. I.e. it was not focussed on lambasting LLs.

        What I can't find out is whether Basel III (or its predecessors) was / is signed up to by the governments, or by each individual country's bankers assn. (or the like).
        Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

        Comment


        • #5
          Despite the Granny Herald item, the seismic wave of broader, general anti-LL sentiment continues.

          Unregulated property managers hold keys to tenants' fortunes


          Controversial Auckland property developer sentenced to jail for 'brutal' damage to native trees
          If ever anyone deserved it, that guy did!

          Can't buy, can't rent: Trapped in a system without a way forward
          Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

          Comment


          • #6
            Yes I read that article and posted my comment to it.
            My take is there is a change coming over the media. The penny has dropped. The articles are starting to ask questions as to why tenants can not find a rental rather than just blame someone.
            My input was to say I am very encouraged with the change.
            I made the point that every rental has a landlord and a tenant. If the problem is that there are not enough rentals then the answer is to provide more rentals not go round blaming people and shooting the messenger.
            I wonder how long it will be before the general public figure that the government and their servants at HNZ is not the answer to the increased supply.
            Multiple people in and out of power have suggested that the best way to fix the excessive demand is to stop people coming to NZ.
            I doubt that Jacinda and her cronies are so xenophobic that think all the new people are Chinese or at least Asian.
            No one in New Zealand wants us to revert to a whites only policy like the Australians used to have.
            There is not much chance of a significant drop in immigration so the only answer is to increase supply.
            We all need to be saying. "Excuse me sir.
            I think I can help solve your problem
            I am willing to provide more rentals.
            I am prepared to put my dollars on the line to do this."

            Comment


            • #7
              Originally posted by Glenn View Post
              .....
              There is not much chance of a significant drop in immigration so the only answer is to increase supply.
              We all need to be saying. "Excuse me sir.
              I think I can help solve your problem
              I am willing to provide more rentals.
              I am prepared to put my dollars on the line to do this."
              And the reply from sir will be? "Lovely, thank you. Just need you to comply with all these new regulations. Won't cost you much, honestly."

              Comment


              • #8
                Originally posted by artemis View Post
                And the reply from sir will be? "Lovely, thank you. Just need you to comply with all these new regulations. Won't cost you much, honestly."
                And Mike Spilligan replied.
                Just jump into this nice warm sack while I get everything ready for you.
                Yes I know you are not bad jelly the witch.
                Are you by any chance related?
                Why do you keep smiling all the time my dear.

                Comment


                • #9
                  I doubt that Jacinda and her cronies are so xenophobic that think all the new people are Chinese or at least Asian.
                  No one in New Zealand wants us to revert to a whites only policy like the Australians used to have.
                  There is not much chance of a significant drop in immigration so the only answer is to increase supply.
                  It's not about colour or race, it's about the sheer numbers. We can't keep up. We need to reduce immigration from all countries I think.
                  Squadly dinky do!

                  Comment


                  • #10
                    On the AIR BNB thing............My tenant moved out of my large studio apartment November so decided to go Air BNB as I needed to redo the bathroom in the new year and then sell. It made sense as I was in a holiday town.

                    I furnished it at very little cost as I had most stuff and borrowed some things off relatives such as lounge suite and fridge. The apartment is quiet nice, with own garden and I furnished it attractively.

                    I was booked solid from Christmas till last week. Before then it was mostly just weekends and it seems to now be the same. Taking off extra power, water, and some items I bought (towels, mugs on special) I made probably an extra $500 more than my tenancy. 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. Had I employed a cleaner I would have made nothing, and would have been in deficit if I had to buy items to furnish the apartment. It was an interesting exercise.

                    I learnt that there is a lot of competition on Air BNB so I had to compromise on my pricing to attract customers, and I had to remember that Air BNB stack their commission on to your rate too so the customer is paying more than what you advertise. I tried making bookings on weekends at least 2 nights but found I was not getting bookings except prime holiday weeks. When I altered closer to the weekend to 1 day then I got bookings. Not ideal as I still have to do the same amount of cleaning and changing linen/towels. Some people really left it messy while others were great. I couldnt judge a book by its cover as some people I hesitated at having (i.e. lack of ID and a photo of a boy racer car as their profile) were perfectly fine.

                    Air BNB is definately 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.

                    Comment


                    • #11
                      Originally posted by RollingCloud View Post
                      On the AIR BNB thing............My tenant moved out of my large studio apartment November so decided to go Air BNB as I needed to redo the bathroom in the new year and then sell. It made sense as I was in a holiday town.

                      .
                      Very interesting. I wondered about all that as well. I want to run a meeting in Nelson for the PIA on AirBnB. I sent off a request to them about coming to speak to us. Got a phone call from the USA from a pleasant lady. I do not think they were keen at all. Even their on site groups were not much help. I wonder if I could gather up some people like you to share their experiences.

                      Comment


                      • #12
                        Originally posted by Glenn View Post
                        Very interesting. I wondered about all that as well. I want to run a meeting in Nelson for the PIA on AirBnB. I sent off a request to them about coming to speak to us. Got a phone call from the USA from a pleasant lady. I do not think they were keen at all. Even their on site groups were not much help. I wonder if I could gather up some people like you to share their experiences.
                        Happy to share experience if you like, I think you can PM me?

                        Comment


                        • #13
                          In Australia, and from memory when I was based in Singapore, the requirements were for offshore investors to only buy new houses, so there were more existing stock available for home grown Aussies. We could consider that here. Alot of the Singaporeans I funded into Aussie property were buying for family going to Uni there. In a high number of the cases, those university grads stayed, and didnt go back to Asia. So not only did the country benefit from having new homes built , but also gained a skilled work force. There are positives to immigration and some regulation can benefit the economy and generate more activity. Just my 2 cents worth, and I shall await a grilling.....
                          Cheers WildWest

                          In victory, you deserve Champagne, in defeat, you need it. - Napoleon

                          Comment


                          • #14
                            Originally posted by wildwest View Post
                            In Australia, and from memory when I was based in Singapore, the requirements were for offshore investors to only buy new houses, so there were more existing stock available for home grown Aussies. We could consider that here. Alot of the Singaporeans I funded into Aussie property were buying for family going to Uni there. In a high number of the cases, those university grads stayed, and didnt go back to Asia. So not only did the country benefit from having new homes built , but also gained a skilled work force. There are positives to immigration and some regulation can benefit the economy and generate more activity. Just my 2 cents worth, and I shall await a grilling.....
                            Pretty sure that is what they have just done ?

                            Comment


                            • #15
                              The Overseas Investment Amendment Bill is with Select Committee so may change. But looks like overseas buyers will be allowed to buy residential or lifestyle land if they build on it and then sell the property. So we need more housing but let's discourage certain folk with funds and the will to build.

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