Renters in gun as market shrinks

[Glenn]

Yes, I have to agree with you that politicians are unlikely to make a difference here. They need to encourage investment in new properties. Instead they discourage it...

I wonder why the red , green, black, and blue politicians have not figured out that the market is completely connected from top to bottom and left to right.
They have just not figured that owner occupiers trade up into perhaps new and the buyers of their old properties are often investors who then put tenants into them. This after all was what John Key was suggesting when he said first home buyers needed to start off with a small flat. If you can not sell your old owner occupier house you are stuck.
Too bad his ministers could not connect the dots. This is vertical integration.
Then the sideways expansion of the market is people need to be able to freely move between cities and in some cases to their holiday homes when they get to retirement. The government should not pick and choose which city they are going to punish or reward based on their school boy understanding of demographics.

[Perry]

The government should not pick and choose which city they are going to punish or reward based on their school boy understanding of demographics.

Nor should the government pick and choose who they are going to punish or reward based on their sub-kindergarten understanding of economics.

I recall it was Nigel Farage who once told the European Parliament that the markets would outsmart / beat them, every time, when the politicians thought they could control nations and/or people.

[Courham]

Rents rising $42 for students in Wellington, $8 short of their $50 increase in allowances.

Some unhappy campers on Stuff

https://www.stuff.co.nz/national/politics/100485600/student-allowance-boost-blamed-for-rent-spikes

Craig

[Don't believe the Hype]

Rents rising $42 for students in Wellington, $8 short of their $50 increase in allowances.

Some unhappy campers on Stuff

https://www.stuff.co.nz/national/politics/100485600/student-allowance-boost-blamed-for-rent-spikes

Craig

out in porirua rents up well over $50/wk not a lot of students looking to live in P'town though. Poor students who can't find a rental in Mt. Vic.

two things are true

1. Rents are up $42 based on the data and the time period they chose
2. Student allowances have been increased by $50/wk

There is no evidence there is a causal relationship

[Perry]

There is no evidence there is a causal relationship

Careful!
Now you're starting to sound like a spin-doctor-influenced, wooden-headed politician!

[artemis]

Rents rising $42 for students in Wellington, $8 short of their $50 increase in allowances.

Some unhappy campers on Stuff

https://www.stuff.co.nz/national/politics/100485600/student-allowance-boost-blamed-for-rent-spikes

Craig

That is not apples and apples. The $42 (average) is for an entire property. Most will have more than one tenant so more than one allowance increase.

It has been reported that one or maybe two multi student properties have seen rent increases of $50 per room. At first glance that seems a lot but students who complained to the media in those cases did not make a comparison with market rent. It is possible that the landlord was still charging under market rent for the property. If a lot more than market rent they can take a case to the Tenancy Tribunal.

Wellington is a small place; they might have trouble finding somewhere else when they move on.

[Don't believe the Hype]

Careful!
Now you're starting to sound like a spin-doctor-influenced, wooden-headed politician!

every day I get up at 5am and not long after the sun rises... Therefore it is true that my getting out of bed is what makes the sun rise .

[Wayne]

Careful!
Now you're starting to sound like a spin-doctor-influenced, wooden-headed politician!

Could you be suffering from confirmation bias Perry?

[Perry]

Very likely so. I have all sorts of biases and wobble worse than a mis-rolled bowling ball.

"There is no evidence there is a causal relationship" sounds very much like head-in-the-sand pollie-speak, to me.

EDIT

Just finished reading Bruce's daily column.

Evidence? Who needs that?

Hype and spin is the ticket!

E.g. a jetpack that has no jet.

It's all in the way it's packaged.

[Don't believe the Hype]

"There is no evidence there is a causal relationship" sounds very much like head-in-the-sand pollie-speak, to me

take another look at th charts of Wellington rents over time - you could almost set your watch by the annual Jan rent spike in Wellington - I don't recall a $50/wk increase in allowances happening every year.

So if the spike happens in years with and without the how can the increased allowance have caused the spike?

The spike is equally likely to have been caused by the spike in enrollments drive by a brilliant policy of free first year of tertiary education.

More demand for the same number of houses. My memory of economics 101 suggests prices will rise in this situation.


But if you're happy to take two events that happen concurrently as having a causal relationship then you'll agree with my previous post that I'm the reason the sun rises in the morning he he he

[Perry]

I accept that there may be other reasons, albeit similarly political.

But fact-denial missions come as easily to pollies as fact-finding missions.
[Usually facts associated with confirmation bias, of course ]

[Perry]

'Massive' demand for Wellington rentals and shortage won't ease soon, Trade Me says
18 Jan 2018

'Massive' demand for Wellington rentals and shortage won't ease soon, Trade Me says Wellington is bearing the brunt of fierce demand for rentals, and there is no relief on the horizon. Head of Trade Me Property Nigel Jeffries said the demand in Wellington was "massive", with the number of available rentals dropping 70 per cent on December 2016. January "is likely to be even more extreme", he said.

[Perry]

Squeeze on for rentals in Hamilton
18 Jan 2018

Twenty people showed up to view a Hamilton rental listed by Lugton's the other day. That was in Rototuna, but rentals are scarce across the city. Hamilton agencies have fewer rentals available than usual and managers warn rent rises could be coming. Lugton's Real Estate had five rentals on its books on Thursday out of a portfolio of 400.

[Lighthouse]

The shortage is extreme in Lower Hutt. I recently let a renovated two bedroom unit in a Body Corporate and it was necessary to ask tenants for their best offers due to the surplus of high-quality applicants. A year ago, a similar unit might have achieved a rental of $300 per week. The unit was let for $430 to an excellent applicant. I received about 200 enquiries about the property over five days. A number of unsuccessful applicants said they were struggling to understand the current conditions.

[Perry]

Worry naught. Taxcindarella will fix it, along with her Blight in shining armour, Phil Slyford.