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  1. #1
    Join Date
    May 2004
    Posts
    2,758

    Default Mega landlords poised to scoop up property from exiting mum and dad investors

    As small property investors walk away from investment properties in the newly regulated environment, better-financed long-term players will step in.

    Article in NBR today, the rest behind the paywall.

    Are readers here seeing this? Or doing it, given there are some multi-property owners here.

    There was some media recently about a developer building an apartment complex designed for long term tenants. But this article is different, suggesting it is small players selling up to bigger players.

    It will impact tenants as rents will go up and properties will be managed in a businesslike way for max cashflow and a decent profit for owners.

  2. #2
    Join Date
    Feb 2018
    Posts
    126

    Default

    The word "mega" sounds misleading.

    I thought it was HNZ buying up Wellington when I saw the headline haha.

  3. #3
    Join Date
    Sep 2008
    Posts
    7,556

    Default

    with the current media fashion

    for extreme exaggeration

    Mega Landlords probably = >5 rentals

    but even if they mean >50 rentals

    nothing surprising about it

    overbearing regulation forced; corner stores, grocers, taxis, buses, pubs, car rentals etc

    into a few well-funded multi-nationals that could afford professional paper-shufflers for the hoop jumping

    why wouldn't it do the same to rentals?

    short-sighted voters that demand a nanny-state

    can't expect freedom too!
    Last edited by eri; 04-06-2019 at 07:19 PM.
    have you defeated them?
    your demons

  4. #4

    Default

    Pretty sure I posted on this forum about a year back the potential of the rise of corporate landlords ( couldn't find it with a quick search... maybe Perry with his super powers can find it) super funds looking for a regular return. I'm still saying it will happen - not sure buying individual houses is the right model for them but build to rent is certainly the future.

  5. #5
    Join Date
    Oct 2013
    Posts
    1,609

    Default

    I had a quick meeting with Kenyon from DuVal group a few weeks back. Build to rent is an excellent proposition for those with the means and experience to do so. I could absolutely see the big super funds underwriting (or even outright all the titles) for new apartment complexes. Sell one or two apartments a year to get an accurate gauge on the current market value of the investment, and reap significant rents from the rest.
    AAT Accounting Services - Property Specialist Accounting - AATAccounting.co.nz
    Lower fees for investors, traders & real estate agents!
    [email protected] for more information.

  6. #6
    Join Date
    Apr 2009
    Posts
    899

    Default

    Seasoned investors will only pounce if the exit of mum and dad investors is so great as to flood the market. Last time was during the GFC. One should always position themselves to buy in an exit market. That's when properties can be bought at a minimum 20% below market value - if you put in enough offers!
    I'm sure a number of us remember those days of faxing offers to agents and recycling the equity on a monthly basis.

    Otherwise in a market like now you need to be creative. Build to rent is one of those creative ideas but there are not many on this forum who look favourably on development, or major renovations.

  7. #7

    Default

    Quote Originally Posted by DaveW View Post
    S
    Otherwise in a market like now you need to be creative. Build to rent is one of those creative ideas but there are not many on this forum who look favourably on development, or major renovations.
    Consider the difference of property as investment and property as income generating business.
    The attraction of these investments fading away as the govt doesn’t stop here with CGT (bright-line test), ring fencing, attacking negative gearing, and rental market killing regulations. Profit from rentals is for equity rich landlords and not for debt carrying “mums & dads”.

    The impact is visible - total reduction in rentals especially for lower income renters. Numbers of renters who don’t get into a labeled “warm and healthy home” are exploding!
    In contrast the number of renters as potential tenant for a fully renovated house is shrinking (group of first home buyer) and the demand of social housing is on crisis level high. Our last rental advertisement attracted in 3 weeks 165 enquiries from desperate people!

    “Build to rent” – is that attractive for private investors under current govt, or who is able to provide housing for people pushed on the street?

  8. #8
    Join Date
    Aug 2003
    Posts
    7,608

    Default

    There could have been a flood to the market if the CGT had gone through aye.

    cheers,

    Donna
    PropertyTalk Blog - property articles

    BusinessBlogs - the best business articles are found here



  9. #9

    Default

    Quote Originally Posted by donna View Post
    There could have been a flood to the market if the CGT had gone through aye.

    cheers,

    Donna
    What “flood to the market” are you talking about - people looking for a home to rent, to buy or people selling up?
    I’m just watching how the govt goes on with emergency housing on taxpayer’s expense. Also homeowners struggling with these expenses by govt spending going through the roof. Not to talk about related cost caused be poverty and sourcing crime like burglary, etc.

  10. #10
    Join Date
    Aug 2003
    Posts
    7,608

    Default

    Quote Originally Posted by DaveW View Post
    Seasoned investors will only pounce if the exit of mum and dad investors is so great as to flood the market. .
    Klauster my reply was in response to DaveW earlier reply - did you read it?

    cheers,

    Donna
    PropertyTalk Blog - property articles

    BusinessBlogs - the best business articles are found here




 

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