Tenant wants a smart meter. Who pays?

[PC]

The "reforms" have removed all the tax subsidies for renters. No depreciation. Removal of -ve gearing. etc.
Plus greatly increased compliance costs.
All these costs get passed on. Much more to come. So hope you are enjoying the extreme rents!

Domestic investors are a tiny fraction of the market and have to buy as cheap as possible - so don't push up house prices.
Maybe the foreign ones with Chinky sounding names are to blame?

[Anthonyacat]

Domestic investors are a tiny fraction of the market and have to buy as cheap as possible - so don't push up house prices.

Stats/source/reference please? I've not seen anything on a split of domestic vs foreign investors. Would love to see these numbers - and how much they've changed since the foreign buyer ban.

[learner]

Maybe the foreign ones with Chinky sounding names are to blame?

Hello PC

In my opinion, you should not be using derogatory terms to refer to people from other countries, as you have done above. The proper term would be "with Chinese sounding names".

[erinak]

"Maybe the foreign ones with Chinky sounding names are to blame?"

That is sooooo judgemental - ill-founded and racist, PC.

Be very careful and ditch the attitude pal.

[Anthonyacat]

I had taken the racist and offensive comment to be a sardonic reference to the actions of Labour or National or whoever who threw up a whole bunch of Chinese names as 'foreign buyers' a couple years back. Makes it a little less racist and a little less offensive on the basis that it was in jest.

[PC]

Dear offenderatti - it's a quote from our glorious leaders.
Are you saying those in power are racist?

[jimO]

I had taken the racist and offensive comment to be a sardonic reference to the actions of Labour or National or whoever who threw up a whole bunch of Chinese names as 'foreign buyers' a couple years back. Makes it a little less racist and a little less offensive on the basis that it was in jest.

it was that mental giant Phil Stoner Twyford back when he was in opposition and not actually doing anything constructive, looks like not much has changed

[Keys]

The comic has died.

The stand up comic who makes a living has died and gone the way of the dinosaurs.

Why?

Because "someone" was offended.

[OnTheMove]

However, rents don't go up because house prices go up. There is little to no causal link there at all.
In the case of individual landlords who have bought recently, most are already paying money from their own pocket to meet mortgage repayments, even considering the extreme rents. Rents are almost without exception a cheaper way to live in a house than ownership - so tenants lifestyles are by definition being subsidised. While landlords as a group may be pushing up house prices, you can't even start to argue that individual landlords are doing that. I have more than one landlord on my client list who would struggle to come up with $150 for an unexpected expense.

I totally agree. Im suggesting a lot do not understand this when buying IPs. And for me if you cannot afford $150 you should not be buying the IP. That sounds way to easily put in receivership should economies change wind and direction from 5 knots to 30 in a Strong southerly :-).

IMO you are better off in educating yourself on the share market until you can afford an IP when $150 is a drop in the bath, ie 50% depending on how many other obligations you have.

I actually am finding my NZ PPOR far cheaper than the rent we were paying for a 2 bedroom sh!t box with party animal neighbours 4 nights a week and mouldy carpet underlay. Our interest only and all rates and essentials works out $50pw cheaper to buy, and it just got cheaper (ugggh timing).

Who knows how long we will be in level 4 isolation and the impact on property prices, if people lose 30-40% that is 30-40% more the banks will be asking of rental properties, thats why Im only prepared to buy knowing if the sky should fall down, I can still afford it. Minimum deposit is not the way to go IMO and never was regardless of this virus.

I agree with most of your reply, I just feel a lot of people who jumped on the IP thing, thinking it is a sure bet are just a can short of a six pack.

Not only is it cheaper, but I have a 10yo master built, architect designed and project managed house, with a view of the ocean on one side and a gorgeous big pohutukawa on the other with a gorgeous lawn and large single level decking, a $90k brand new kitchen (electric rubbish drawers are more hand than I use to think), I get Tuis and Kereru and faintails making beautiful NZ noises all day, we have the higher end HRV with heating and cooling, Gas rennai Fire place, gas cooking (missed this a lot), gas water, double glazing everywhere, much faster fibre due to less WIFI congestion (20+ vs 3-4 makes a big difference), 2yo quality carpet court carpet lush stuff in the bedrooms etc, lovely hardwood in the cooking/dining areas, central air cond (split heat/cold etc). All for $50 less per week.

I did however negotiate 40% off the GF (estimated ~15-20% MV) which of course made a difference, but if you are at the stage of buying IPs you should know how to buy homes for much less than asking price).