Why the aversion to paying market rent?

[jack2016]

I rent because I am much smarter than you.

Are you Shamubeel Eaqub?

[Bluekiwi]

Are you Shamubeel Eaqub?

"The Sham" as I like to call him, told everyone that renting was smarter than buying whilst property prices in Auckland doubled, and then he bought a property, which would have cost twice as much.

Renting is certainly smarter if you want to keep working all of your life trading money for time.

[jack2016]

"The Sham" as I like to call him, told everyone that renting was smarter than buying whilst property prices in Auckland doubled, and then he bought a property, which would have cost twice as much.

Renting is certainly smarter if you want to keep working all of your life trading money for time.

Do you know during which year he bought his house?

[Perry]

Barnyard Thickey might know.

Another errant pundit on the loose.

[Bluekiwi]

Do you know during which year he bought his house?

Through the powers of property guru I know what year, what house and how much
(he has a unique name and bought in his name)

On 19th June 2017 he bought 110 FREDERICK STREET HILLSBOROUGH AUCKLAND for $1,600,000.
That house was previously purchased for $845,000 on 15th April 2016.
Previous to that $426,500 on 19th March 1999.

So by abiding on his principals that buying a house does not make economic sense and it is financially smarter to rent for 18 years instead of owning.
He then paid $1,173,500 more than if he had bought his personal home in 1999.

They then bought a rental or holiday in Selwyn in 2018 for 410k.

And this guy is on the news, in economic groups, government think tanks giving the government country economic advice.

BTW:
Homes.co.nz now has this house estimated at 1.36m

[Perry]

Ahhh, yes - the rent-an-expert syndrome.

What I say in the media (and to gummints, for a fee) and what I actually do bear little relevance to real life and / or reality.

On a par with most other pseudo-pundits,wouldn't you say?

[Don't believe the Hype]

When you buy a house for $1.6m and only 2 years later it's worth approx $1.36m he may be proving his own theory that it would have been better for him to have rented.

ha ha ha

[jack2016]

i don't think the 1.36 on homes is accurate - it has been extensively renovated in 2016 - every bit "looks" new inc completely rebuilt areas, 275m2 on 616m2 with views, cul de sac etc ... but hey I'm not from Auckland! though on Trademe 1m+ only buys you a unit in that area

[Perry]

Home ownership at lowest level in 70 years, economist says Baby Boomers to blame
10 Nov 2019

According to the Real Estate Institute, in 2013 the median New Zealand house price was less than $400,000. Now, it's nearly $600,000, a 50 per cent increase. Over that same period, wages have only increased by 20 per cent. Shamubeel Eaqub said it was driven by a lack of affordability in New Zealand.

Shammy ignores the wage / price gap and instead blames the "baby boomers."
Such it seems, is the nature of pseudo-expert-crystal-ball-gazing soothsayers.
Let's avoid the fact quoted and join in the bash-a-demographic-group blame game.

[artemis]

Now that Tony Alexander has gone independent, hopefully he will also become a media goto economist.

[Keys]

Shammy ignores the wage / price gap and instead blames the "baby boomers."

Also conveniently ignores his constant articles which he wrote stating that renting was financially better.

[Perry]

Right, Keys!

Herewith, Shammy spouts some more:

New Zealand wages growing after 9 pathetic years, but it feels like the last hurrah
11 Nov 2019

Even though inflation has been low, everyday living costs have been rising at a faster rate. Especially the cost of anything housing-related, be it rent, insurance, rates or maintenance. Energy costs, both fuel for cars and electricity for the home, have also been increasing faster than incomes.

[flyernzl]

Also conveniently ignores his constant articles which he wrote stating that renting was financially better.

The bit he left out was 'renting was financially better - if you rented from your Auntie.'

[OnTheMove]

OP I dont get this feeling, but I do think long term tenants are worth holding on to, if you price them out of the area they will just up and leave,

I think its simply a case of not pricing people out and if you have 5 years of full occupancy vs constant 4 month vacancy I think it makes sense to be the smarter landlord not the greedy one

I find this housing shortage to be a load of stats rubbish. Tenants have a lot of properties to choose from. If they build that train line from Hamilton, whoopah, empty Auckland as tenants move to small towns paying 1/4 the rent of Auck.

Not all land lords are in it to squeeze out every cent and there are still plenty who treat the tenant with respect as they are paying off their mortgage or providing them an income.

I think the problem is due to housing prices people get into IPs owing too much money and try to pass on this anxiety to the tenant in the form of 6 month reviews.

Also keep in mind its cheaper to buy in some instances. $500 mortgage will get you a propety near the beach. You will lose the 10 min commute and it will become 35-45 minutes, but at least you dont have the anal land lord down your neck every 6 months and you are spending $180 less minus $40 transport per week.

Plenty of tenants are landlords and will object to somebody being overly anal/greedy.

Just trying to point out why its a good idea to be a passive landlord and not a knob (from a tenants perspective) just because you bought the property. Somewhere in the middle always wins.

So many factors to consider to being good to your tenants but also not missing annual rent increases, also what happens in a decrease, do you drop the rent? No. So it all works out fair in the end.

[OnTheMove]

Never mind all the increases in costs and the new BS rules coming like having to allow pets etc.

And of course people see housing as a basic right (I agree with them) just like your loaf of bread etc.

Yeah agree re pets, wtf. I do think insulation and heating should be much strict than just being able to stick a plug in wall heater that does nothing. Thats not right. But Pets, what about tenants being allergic to pets, a carpet cleaner wont pick all the folicles of hair up.

Yes I agree it is indeed a right. This country would be worthless if we didnt have basic human rights, although its going to dogtown with more immigrants imo. And these dodgy divisions of 1 bedroom apartments into 2. Thats so not NZ or what we are about.

Rights of tenants imo should never be forgotten and Kiwi's should maintain our standard of living not buckle to living like a 3rd world country..