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Poll: How would ring-fencing of residential rentals affect you?

This poll will close on 28-02-2018 at 12:13 PM

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Results 21 to 29 of 29
  1. #21

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    Quote Originally Posted by Perry View Post
    Me.


    In what area are the rentals you refer to?


    Will do. 28 March it is. (Or thereabouts)
    wellington/porirua.

    The reality is that there is always someone who can afford the rent being charged unless you're operating at the very top end of the rental market. Those who currently pay $500/wk may not be able to afford the same rental when the rent moves to $600/wk but there is still many who can. As rents lift the quality, size or location choice or accommodation type will need to change if they can't pay the new rent on their existing property. Much like FHB's who want to live in Wadestown but can only afford J'ville.

    The bigger issue is not can people afford to pay it is about the competition in the market. If I pushed my rents to $600/wk up from $500/wk and there were dozens of properties for rent, high vacancies and not many people looking to rent then I don't think I'd be renting my place anytime soon. But with low vacancies, huge demand and supply out of the market I can pass on all cost and even improve my profitability to strengthen my business' numbers as times like these won't always be like they are now.

  2. #22
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    13,327

    Default

    I don't think we disagree.

    Market forces (supply, demand, availability, price, etc.) are the final arbiter.
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  3. #23
    Join Date
    Jun 2004
    Posts
    9,707

    Default

    Quote Originally Posted by Don't believe the Hype View Post
    wellington/porirua.

    The reality is that there is always someone who can afford the rent being charged unless you're operating at the very top end of the rental market. Those who currently pay $500/wk may not be able to afford the same rental when the rent moves to $600/wk but there is still many who can. As rents lift the quality, size or location choice or accommodation type will need to change if they can't pay the new rent on their existing property. Much like FHB's who want to live in Wadestown but can only afford J'ville.

    The bigger issue is not can people afford to pay it is about the competition in the market. If I pushed my rents to $600/wk up from $500/wk and there were dozens of properties for rent, high vacancies and not many people looking to rent then I don't think I'd be renting my place anytime soon. But with low vacancies, huge demand and supply out of the market I can pass on all cost and even improve my profitability to strengthen my business' numbers as times like these won't always be like they are now.
    You were (are) going to put the rents up as much as you can whether or not ring fencing of some sort come in.
    If the tenant (and more particularly the market) can afford it you will charge it.

  4. #24
    Join Date
    Oct 2013
    Posts
    1,511

    Default

    Quote Originally Posted by Wayne View Post
    You were (are) going to put the rents up as much as you can whether or not ring fencing of some sort come in.
    If the tenant (and more particularly the market) can afford it you will charge it.
    But he does have a point that the ringfencing will take some supply out of the market with landlords thinking it's just not worth it, so rents may be able to rise faster than they otherwise would have.
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  5. #25
    Join Date
    Jun 2004
    Posts
    9,707

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    Quote Originally Posted by Anthonyacat View Post
    But he does have a point that the ringfencing will take some supply out of the market with landlords thinking it's just not worth it, so rents may be able to rise faster than they otherwise would have.
    Maybe - maybe not.
    There are a lot of other things that make rentals 'not worth it' - maybe ringfencing is the straw that breaks the camels back.

  6. #26
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    13,327

    Default

    . . . . so rents may be able to rise faster than they otherwise would have.
    The way I see it is that the pool of tenants will shrink when prices are increased on a just-because-I-can-basis. Also, that may just be what Taxcindarella & Slyford need to introduce rent controls.
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  7. #27

    Default

    Quote Originally Posted by Perry View Post
    The way I see it is that the pool of tenants will shrink when prices are increased on a just-because-I-can-basis. Also, that may just be what Taxcindarella & Slyford need to introduce rent controls.

    rent controls only further distort the market. Right now with rents heading up the way they are we are seeing the result govt meddling with the market. Rent control will have a positive impact for some while having a negative impact on other renters, take a look at the impact rent controls had on San Fran market as just one example

  8. #28

    Default

    Quote Originally Posted by Wayne View Post
    Maybe - maybe not.
    There are a lot of other things that make rentals 'not worth it' - maybe ringfencing is the straw that breaks the camels back.
    there are many straws at the moment... ring fencing is only one of the many anti landlord interventions being implemented... all having an impact of driving up rents.

  9. #29

    Default

    Quote Originally Posted by Anthonyacat View Post
    But he does have a point that the ringfencing will take some supply out of the market with landlords thinking it's just not worth it, so rents may be able to rise faster than they otherwise would have.

    our rents are so much above where i expected them to be... Wayne is right, I would raise the rents if i had the opportunity without ring fencing but i'm shocked at the level i can achieve.

    As they say make hay while the sun shines.


 

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