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  1. #21
    Join Date
    Sep 2004
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    Hastings
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    15,108

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    Quote Originally Posted by OnTheMove View Post
    The only answer to this is to correct the unsustainable market, as an investor I know that means I will lose money . . . .
    How and why? If the same rent is being paid, your ROI will go up, not down. CV/RV and the like are just so much paper-based guesstimates.
    Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

  2. #22
    Join Date
    Apr 2018
    Posts
    225

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    Quote Originally Posted by Perry View Post
    How and why? If the same rent is being paid, your ROI will go up, not down. CV/RV and the like are just so much paper-based guesstimates.
    Not sure exactly what you are asking about with how and why, but you have seen our countries key indicators and our personal debt levels? The Juice from this orange (market affordability) has been squeezed, resqueezed and now blended with skin and all. The issue with a correction on rents outside extra debt, will be and is now, homes are becoming cheaper to buy than rents, which is tragic given we are supposedly the most inflated property market in the world, or 2nd (Canada first). Losing money on house and then recalculating the ROI is irish logic :-)

    Or are you refering to specifically rental properties? People will always need rentals regardless if the price of rent goes up or down or is cheaper to buy etc. So if you are a buy and hold and as long as the property is positively geared, I too would be fairly nonchalant about a property correction. This is why for me, I would never buy a rental at minimum deposit. Much like they teach you at Uni with a business, always 51/49, ownership to liabilities. Its not the same equation perhaps, but the same sentiment. You cant go wrong if you own the property. Some will say that equity not being used on new properties, but at some point people need to retire and enjoy life. IMO if you own your own home, have the toys you want, 3 IPs owned outright at $1.5m will provide plenty enough income for MOST normal people.

    For me, my dream is actually more nautical, a good 5 years liveaboard/sail, so that would be 4 IPs for a period. Then either live in my dream land property or remain liveaboard as I will always get the itch to visit some island somewhere. And the cost of liveaboard even not selling, living in a marina, is significantly less than a house rental (even for Catamarans, price of berth goes up by length). Given performance cruiser Cats are like modern apartments but with better entertaining areas and indoor outdoor flow, its not a bad option for SOME (the sea, even in a Marina, isnt for everybody)

    Yes I agree, I ignore CV/RV, I use tools and saved homes in a database (just a small excel driven one) to formulate MV, market value, its only important what people are willing to pay for it. Which is why I believe Im seeing such a massive wait for homes in Remers-Central to sell. People either just dont see the value in asking prices or they just cant afford them. The bubble has reached its peak 2 years ago, but there is one guy, not in my area, trying to sell a property privately, hes asking 2017 prices, where the MV around him has dropped $300k, plus the house he is trying to sell is still decorated nicely in 70s fashion lol. Needs new everything basically. It does have good bones and a great view, but I think he is so out of touch because he hasnt asked an agent. Prime example of why trying to time selling for maximum CG is a very bad idea. Its been on the market over 12 months. By the time we have a crash, and a plateua, we might have a slow rise before hes willing to assess its actual market value and it will be back at his asking price in 20 years haha.
    Last edited by OnTheMove; 26-09-2019 at 11:42 AM.

  3. #23
    Join Date
    Sep 2004
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    Hastings
    Posts
    15,108

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    You said that "as an investor I know that means I will lose money . . . ."

    My question is simple. How and why will you lose money?
    Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

  4. #24
    Join Date
    Feb 2004
    Location
    Wellington
    Posts
    2,837

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    Quote Originally Posted by artemis View Post
    Minister Faafoi is either muddled or deliberately misrepresenting this. The latest General Social Survey (to March 2019) says something very different. See the link to the data on housing quality and tenure security at the below link. Not only is landlords terminating tenancies not the main reason, but add the other reasons together to get tenant driven tenancy ending.

    It is reported there that -

    Tenancy ended by landlord 17.7
    Moved from rental to owned dwelling 20.6
    Social reasons 12.8
    Education or work-related reasons 10.3
    To move to a better quality home (e.g. warmer) 8.6
    To move to a more suitable home (e.g. more accessible/better size) 11.4

    The notes to the data expand on eg social reasons.


    https://www.stats.govt.nz/informatio...tatistics-2018
    Firstly remember you can tell when a politician is lying by checking to see if his lips are moving.


    But in this case he has you....check out what he said
    Statistics New Zealandís General Social Survey shows that the most common reason for movement in the rental market is due to landlords ending tenancies.
    At 17.7% the landlord is the most common reason....."but but but" I hear you say "20.6% is bigger that 17.7%" Ö.yes of course it is but 20.6% are moving OUT of the rental market into their own homes. 17.7% is the biggest/most common reason for moving IN the rental market.

    Numbers don't lie, but there are lies, dam lies and statistics.

    Cheers
    Spaceman
    Delightfully in need of some Tender Loving Care
    Blessed are those who can give without remembering and take without forgetting
    Some things are not as they seem, nor are they otherwise

  5. #25
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    15,108

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    Welcome back, Lawrence!

    Good to see you contributing again.
    Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

  6. #26
    Join Date
    Feb 2004
    Location
    Wellington
    Posts
    2,837

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    Quote Originally Posted by Perry View Post
    Welcome back, Lawrence!

    Good to see you contributing again.
    Thanks, still dreaming of having my very own robot lawnmower......now off to the 9/11 thread …….weeeeeeeeeeeeeee!!!!!!
    Delightfully in need of some Tender Loving Care
    Blessed are those who can give without remembering and take without forgetting
    Some things are not as they seem, nor are they otherwise


 

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