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View Poll Results: Are You Going to Make Submission?

Voters
17. This poll is closed
  • You are joking, right? I wouldn't waste my time.

    4 23.53%
  • A very brief one

    7 41.18%
  • Long, lengthy & detailed

    4 23.53%
  • Yes, and if an option, I'll be asking to be heard in person.

    2 11.76%
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Results 291 to 300 of 332
  1. #291
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    14,833

    Default

    Quote Originally Posted by PC View Post
    Goodbye negative gearing.
    Hello higher rents.
    No worries.
    Easy to say - not necessarily easy to implement.

    As Wayne et al have oft observed, that the market rental rate will be decided by the market.

    Not by the LL.

    I.e. What tenants can afford will be the decider.
    Last edited by Perry; 11-02-2019 at 12:23 PM.
    Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

  2. #292
    Join Date
    Oct 2015
    Location
    Rotorua
    Posts
    476

    Default

    Yeah I don't get all the hype on the LL forum. Higher rents - Yay! Some good deals coming to the market - double Yay!! Less dyi mom and dad landlords who don't treat rentals as a business - triple Yay!!!

  3. #293
    Join Date
    Jun 2004
    Posts
    10,364

    Default

    Quote Originally Posted by Perry View Post
    Easy to say - not necessarily easy to implement.

    As Wayne et al have oft observed, that the market rental rate will be decided by the market.

    Not by the LL.

    I.e. What tenants can afford will be the decider.
    Thank you Perry - I couldn't be bothered saying it again.
    Will be interesting to see what happens overall (% who really do sell, how much rent increase can be sheeted back to ring fencing etc).

  4. #294
    Join Date
    May 2008
    Posts
    3,556

    Default

    Quote Originally Posted by Perry View Post
    Easy to say - not necessarily easy to implement.

    As Wayne et al have oft observed, that the market rental rate will be decided by the market.

    Not by the LL.

    I.e. What tenants can afford will be the decider.
    Ok - why don't you predict what would happen in the following scenario:

    - let's say all tenants are paying the max rent that they can afford.
    - let's say that all landlords decide to increase the rents they charge by $100pw - if not immediately then on the next rent review opportunity.

    What will happen?
    <I expect everyone will shout out something along the lines no-one will pay the new rental amounts?>

    Say a tenant is currently paying $400pw.
    What I expect will happen:
    - all landlords increase their rents by $100pw so this is the new market rate.
    - all existing tenants won't be able to pay this increase - so they give notice and move out.
    - tenants will still be able to pay their current rental amount - in this case $400pw
    - tenants then apply for rentals advertised for $400pw - which they should find and sign up for.
    End result: all tenants find new places that they can afford.
    All landlords get $100pw rent increase.

    So you can see if the market rent increases then that's what tenants have to pay - or they move out and find something that they can now afford.
    You can't beat the market.

    Since 2015, rents in NZ have increased by approx 20%.
    Since 2015, wages in NZ have increased by 10%.
    Doesn't that show that rent increases are not restricted by tenants ability to pay?

  5. #295
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    14,833

    Default

    Quote Originally Posted by Bob Kane View Post
    So you can see if the market rent increases then that's what tenants have to pay - or they move out and find something that they can now afford.
    And if there's nowhere that they can now afford?

    I suspect that your scenario is quite a stretch.

    Quote Originally Posted by Bob Kane View Post
    let's say that all landlords decide to increase the rents they charge by $100pw
    What will happen?
    Say a tenant is currently paying $400pw.
    What I expect will happen:
    all landlords increase their rents by $100pw so this is the new market rate.
    And if no LL can obtain tenants at your new rate - what then?

    Empty rentals are not good business.
    Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

  6. #296

    Default

    Bob’s right. We’ve recently listed a 3br home in Porirua. The price is far higher than almost identical properties we listed this time last year and even 6 months ago. Whilst we do get a lot of people apply who clearly can’t afford it but don’t have any other option (something landlords need to be more vigilant about given fast rising rents and the HHG bill proposal) we are getting many requests to view from people who say they’re moving out of Johnsonville or Tawa - these people have seen they’re priced out of J’ville and Tawa and have made a decision to move to a location further out of town to keep their rent cost at the level they paid last year.

    the reality is Wayne might be right at a macro level but at a micro level unless you’re rentals are in the highest price band there is always someone who can afford your rent increase.

  7. #297
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    14,833

    Default

    Quote Originally Posted by Don't believe the Hype View Post
    the reality is Wayne might be right at a macro level but at a micro level unless you’re rentals are in the highest price band there is always someone who can afford your rent increase.
    How long would it be necessary to wait for that someone to come along?
    Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

  8. #298
    Join Date
    May 2008
    Posts
    3,556

    Default

    Quote Originally Posted by Perry View Post
    And if there's nowhere that they can now afford?
    I don't recall that has ever happened.
    You're saying that someone currently paying $400pw wouldn't be able to rent another place for $400pw?
    Have we ever had no property available for rent?


    Quote Originally Posted by Perry View Post
    And if no LL can obtain tenants at your new rate - what then?

    Empty rentals are not good business.
    The new rates would be the market rate.
    It's currently happening in Wellington - rents have jumped up, every property has a queue of applicants.
    You can't beat the market.

  9. #299
    Join Date
    May 2008
    Posts
    3,556

    Default

    Quote Originally Posted by Perry View Post
    How long would it be necessary to wait for that someone to come along?
    Let the market decide - no tenant in 3 weeks, drop the rent.
    Big queue of applicants - raise the rent.
    Pretty simple really.

  10. #300
    Join Date
    May 2008
    Posts
    3,556

    Default

    I'm looking at the comment that tenants decide the market rent and not the landlord.
    That is not correct.
    I think I've given an example of why it's not correct.
    Further support to this is when you hear calls from the tenants union to impose rent controls.
    Anyone who calls for rent control is admitting that the power is in the landlords hands and not the tenants.


 

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