Wellington Council gets into rentals.
News item makes interesting watching.
The proposed rentals are supposed to be for 'essential workers', rents apparently will only increase by the CPI over the life of the tenancy, and the whole exercise will be at no cost to the ratepayers.
Yeah, right.
If the current proposals for 'lifetime tenancies' are enacted this year what would happen if (say) a schoolteacher takes up the tenancy and then, a year or two later, tosses in that job and becomes perhaps a real estate salesperson? How would the council then be able to terminate that persons tenancy?
If there are substantial increases in, say, the cost of insurance on the property to the tune of 40% or 50% (quite likely) how will those costs be covered/recovered if the rents can only go up by the CPI?
What written guarantees are in the leasing agreement saying that the building must not at any time be subsidised by the ratepayers, either on a cashflow basis or by ratepayer-guaranteed loans? I bet there are none.
If you are a Wellington ratepayer I'd be creating a fuss about this proposal as I sense an expensive flop in the making.
News item makes interesting watching.
The proposed rentals are supposed to be for 'essential workers', rents apparently will only increase by the CPI over the life of the tenancy, and the whole exercise will be at no cost to the ratepayers.
Yeah, right.
If the current proposals for 'lifetime tenancies' are enacted this year what would happen if (say) a schoolteacher takes up the tenancy and then, a year or two later, tosses in that job and becomes perhaps a real estate salesperson? How would the council then be able to terminate that persons tenancy?
If there are substantial increases in, say, the cost of insurance on the property to the tune of 40% or 50% (quite likely) how will those costs be covered/recovered if the rents can only go up by the CPI?
What written guarantees are in the leasing agreement saying that the building must not at any time be subsidised by the ratepayers, either on a cashflow basis or by ratepayer-guaranteed loans? I bet there are none.
If you are a Wellington ratepayer I'd be creating a fuss about this proposal as I sense an expensive flop in the making.
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