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  • Bidding wars over rental housing

    Bidding wars over rental housing

    By Michael Dickison
    5:30 AM Wednesday Feb 1, 2012
    Photo / Thinkstock

    Auckland tenants say they are trapped in a bidding war in a city choked for rental properties, as consents for new housing hit a 46-year record low.
    Desperate house hunters are sending realtors full CVs with photographs before viewings - which they turn up to with applications already filled out - and one renter says he has been up against offers to pay $100 extra a week.
    Auckland Mayor Len Brown says affordable housing is one of the big issues facing the city as it welcomes its 1.5 millionth resident this week.
    Statistics New Zealand announced yesterday that 13,662 consents had been issued for dwellings, including apartments, in the year to December - down 12 per cent and the lowest on record.
    Realtor Darryl Goode, of Goode Rentals, said the situation was leading to frantic competition and climbing rents.
    "I'm finding people are coming in with their applications already filled out," he said.
    Others sent him CVs with photographs ahead of the viewings. "They arrive and hope it has put them one step ahead of everyone else. I guess it makes a difference. It makes them look professional and more like a good tenant," he said.
    "People are offering more rent to try to secure the properties over their competition.
    More in the Granny at
    http://www.nzherald.co.nz/business/n...ectid=10782588
    "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx

  • #2
    *shock/horror*

    Who would have guessed?
    www.3888444.co.nz
    Facebook Page

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    • #3
      Len Brown seems very good at stating the bleeding obvious, yet doing nothing (or the opposite) about it.

      As is/was John Banks.

      Comment


      • #4
        Has anyone seen these over bidding situations on their properties?

        Seems like every January these crisis stories appear.

        Comment


        • #5
          I got a problem with this story... maybe just lazy journalism?

          The photo looks like a US property... NZ don't use that kind of signs...

          The writer has referred to: "realtors". This term is for North American counterparts. In NZ we call them Real Estate Agents, or more correctly, property managers...

          However, I hope all the renters in Auckland read this, and expect rents to rise =)

          Comment


          • #6
            Originally posted by NovInvestor View Post

            The photo looks like a US property... NZ don't use that kind of signs...
            It is a stock photo - search 'http://media.nzherald.co.nz/webcontent/image/jpg/20125/Rent_220x147.jpg' in images.google.com's Search by Image option.
            DFTBA

            Comment


            • #7
              Originally posted by SwissKiwi View Post
              Has anyone seen these over bidding situations on their properties?

              Seems like every January these crisis stories appear.
              I have not seen an actual bidding war on rent, but just tonight I let a 2 bed Akl apartment & had 3 (from 7 visitors) equally good prospects that I found very difficult to choose between.
              As I had done in the middle of last year, I made them sell "themselves" to me, ability to pay, expected tenure, number of tenants, care of property, notice period etc
              It was a very difficult choice between them as they all offered close to the same prospects.

              There's certainly lots of competition for places, but equally there appears to be a lot of perceived "overpricing"
              I had 2 separate prospects saying they have been looking for a quality place for weeks, both had viewed over 20 properties, many of them appearing to be low quality or very "overpriced"
              Last edited by Keithw; 01-02-2012, 10:14 PM.
              Food.Gems.ILS

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              • #8
                Overpriced is very much a matter of opinion.
                In my view, rents have a very long way to go up in order for the Landlord to get anywhere near a fair return.

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                • #9
                  I agree, just the loss of depreciation added about $30 pw to my places.
                  Unfortunately it is going to take a little time for tenants to get used to the higher prices, which at present are only going up.
                  Food.Gems.ILS

                  Comment


                  • #10
                    I have two units to rent currently in Auckland City, and both asking rents are the top among the listings on trademe.

                    I get about 5 to 7 inquries a week, and about 3 to 5 people view, but due to the small size (56m2) and configuration, only 1 is rented at asking rent, after 2 weeks of advertising (existing tenant dont move out till early March).

                    So I think the market is good atm =)

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                    • #11
                      May it soon spill-over
                      to Hamilton, in varying
                      ways.
                      Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

                      Comment


                      • #12
                        Originally posted by Perry View Post
                        May it soon spill-over
                        to Hamilton, in varying
                        ways.
                        Sorry Perry but the tea cups indicate Hamilton is in a bad way and the perfect storm is a long way off your area.
                        If you look at the number of rentals advertised on Trademe and compare that with the number of rentals in the private sector you might be surprised at the figures.
                        I have done a chart for the whole country and compare it each month.
                        At the bottom is Otago with one property advertised for every 20 rentals. Waikato comes in 12 out of 16 areas with one advert per 30 properties.
                        Auckland despite having 1.5 million bums to sit on beds has one vacant property per 34 dwellings.
                        Compare that with our little city with only one advert per 58 properties.

                        This week has been wonderful. I listed a new management on Thursday. $500 per week for a modestly nice home. By Friday I had three people chasing it.
                        This was repeated at a number of other properties with lines of people arriving holding their references and telling me what wonderful tenants they would make.
                        I sure hope the idiots in Wellington, who I might add seem to be leaving that city by the boat load, are happy that property investors are doing what they told them to do. Like not invest in housing. Ha Ha I am laughing all the way to bank. Where do those people in high places live. I wonder what they want us to invest in.

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                        • #13
                          It's more of a struggle to get a modest increase in rent here in Kapiti - mostly due to the low incomes etc.

                          cheers,

                          Donna
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                          BusinessBlogs - the best business articles are found here

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                          • #14
                            Originally posted by donna View Post
                            It's more of a struggle to get a modest increase in rent here in Kapiti - mostly due to the low incomes etc.

                            cheers,

                            Donna
                            Goodness Donna. Surely you can not be suggesting allegations of low incomes has to be a reason for no rent increases.
                            Are you not aware that WINZ pays the same level benefits in Kapiti as they do in Nelson. It is all about supply and demand.
                            Wellington and I guess surrounding areas look as if they have more houses than people. That is what is keeping prices down not the low wages.

                            Comment


                            • #15
                              Jess, Glenn, I'm having (a Liberal Left) brain fade day - sorry.
                              I'm not sure what figures you're comparing. I.e. what does
                              this mean?
                              Originally posted by Glenn
                              If you look at the number of rentals advertised on Trademe
                              and compare that with the number of rentals in the private
                              sector you might be surprised at the figures.
                              • Self-managed rentals advertised vs by a PM/REA-managed?
                              • Places advertised for sale vs for rent.
                              • Something else?

                              Help my feeble brain a bit, please.
                              Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

                              Comment

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