Sitting around the BBQ and discussing the real issues over a beer yesterday got me thinking. Are we still puffing up the over inflated bubble? I'm not talking official government facts and figures on inflation, market rates and income trends. I'm thinking more average Joe on the street stuff.
Around here, Wellington North, rents have recently gone through the roof at a ridiculous rate. A year ago a 3 bed for $400/wk would have 5 applicants. Now the same is $550/wk with 20 applications. Sounds great for LL's right but can it survive.
So many people through social media, word of mouth, etc, are asking for help to find a home because their LL's have suddenly up their rent or given 42 day notice because the LL is selling or "moving in". You use to see these posts around twice a year now they're on there every week.
I look at my tenants situation. My rents are currently around 15-20% below what others are asking. My tenants are a single male working full time, has his kids every other week and an older couple, she works full time and he's retired. Both are pretty much on the limit of their budgets. So if I wanted to raise my rent they would be hard pressed to keep up.
Day to day living, as it always does, has also been creeping up too. 3ltr milk is now $5! fruit and veg is an expensive luxury and petrol is more valuable than gold!
Incomes don't seem to have kept up with things. I go a 3% rise last year and by the stories from my friends I was lucky.
If what everyone says about interest rates is true well be looking at 7% in the next couple of years on our mortgages. LL's will pass that on to their tenants. How many more straws can we add to the camels back?
But I'm just an average Joe so what do I know.
Around here, Wellington North, rents have recently gone through the roof at a ridiculous rate. A year ago a 3 bed for $400/wk would have 5 applicants. Now the same is $550/wk with 20 applications. Sounds great for LL's right but can it survive.
So many people through social media, word of mouth, etc, are asking for help to find a home because their LL's have suddenly up their rent or given 42 day notice because the LL is selling or "moving in". You use to see these posts around twice a year now they're on there every week.
I look at my tenants situation. My rents are currently around 15-20% below what others are asking. My tenants are a single male working full time, has his kids every other week and an older couple, she works full time and he's retired. Both are pretty much on the limit of their budgets. So if I wanted to raise my rent they would be hard pressed to keep up.
Day to day living, as it always does, has also been creeping up too. 3ltr milk is now $5! fruit and veg is an expensive luxury and petrol is more valuable than gold!
Incomes don't seem to have kept up with things. I go a 3% rise last year and by the stories from my friends I was lucky.
If what everyone says about interest rates is true well be looking at 7% in the next couple of years on our mortgages. LL's will pass that on to their tenants. How many more straws can we add to the camels back?
But I'm just an average Joe so what do I know.
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