Property investors to blame for NZ's high house prices.....

[Chris W]

Perry,

For my understanding and future reference, can you provide a link - for explanation of allowance of quoted text allowed under Rule 2 b, c, d.

I searched here but no avail - https://www.propertytalk.com/forum/f...b3_board_usage

Thank you.

[Perry]

For my understanding and future reference, can you provide a link - for explanation of allowance of quoted text allowed under Rule 2 b, c, d.

Forum Rules

As I understand it, there's a link to the Forum Rules at the very bottom (right hand) of every page.

And I was too hasty. I should've checked the numbers and not gone by memory.

The relevant parts are under the heading: Copyright Respect

I.e. Not Rule 2, at all.

[Perry]

Interesting conflicting bit of babble from Shammy, here.

[Viking]

Great, waited for a long time for this.

Tremains who bought out LJ Hookers who bought out Pam is now shedding its rentals.
Just told me to take my six back.

At least a weeks or mores wageseach month for one of their managers.

20 years and I have seen so many of these woke Property Managers come and go.
Around 10 I think. All caused during buy outs.
What a useless industry.

[Chris W]

Tremains who bought out LJ Hookers who bought out Pam is now shedding its rentals.
Just told me to take my six back.

Which area are your rentals in?

FYI, Tremains still managing rentals, perhaps not in your area? https://www.tremainsrentals.co.nz/li...rRental=Rental

[Viking]

spread around.
the last lot that tried that scheme fell in a ditch. So will Tremains.

Most of those are in tauranga but one in Rotorua is just across the road from mine and they said last week they had rented it for more than advertised.

[Mauro]

I'll admit right from the start that I'm not the most intelligent man here but I see a huge problem with that statement.

Investors invest in something to get something in return. Financially, security or even just the feel good factor. And I think most property investors are buying property to make money.

Why is property such a good investment for people who want to make money? Because there isn't enough of it! Supply and demand!

If there were 2 houses for every person there would be no financial property investors as there would be no money to make. Houses would be dirt cheap and you could hardly give them away. But we have the opposite.

Raise the supply or reduce the demand. Build more houses or reduce the population or some combination of the two.

There's always a trade off for anything. To me it's a no brainer that if property investment is a good thing then it's gonna make that thing more expensive and hard to get, for everyone. It's not just down to lack of housing. Most investors will buy old properties and do up, not construct new ones and try to milk as much as they can on rent.

So even if I'm an investor, I won't hide from the fact that me wanting to own as many rentals as I could for my own benefit will feed the wheel of factors that make housing expensive.

Let's stop being so overprotective guys.

[Perry]

Let's stop being so overprotective guys.

There are two separate components, though.
* Availability;
* Price.

An over-supply of houses would cause prices to be lower and rents to be lower.

[PC]

What's the best cure for high prices?
High prices.
But that works in a free market - not what we have unfortunately.

[Mauro]

There are two separate components, though.
* Availability;
* Price.

An over-supply of houses would cause prices to be lower and rents to be lower.

Problem is, nothing seems to be driving construction of new houses more affordable or profitable because it's more comfortable to buy and inflate existing ones.
Little of this increase of wealth is helping increase of supply, as capitalism should be. It's not balancing itself out for more than a decade now, it's just inflating.

[Perry]

Problem is, nothing seems to be driving construction of new houses more affordable or profitable . . .

And what might be the cause of that?

[Learning]

Little of this increase of wealth is helping increase of supply, as capitalism should be. It's not balancing itself out for more than a decade now, it's just inflating.

Population growth over last 50 years: 2.8mil 1970 to 4.9mil now. Fastest growth has been in the last 10 years of 2.1% average per year.

The average number of approved new housing consents per year in the last 10 years: 1.6% of existing stock annually.

[AlFa]

Problem is, nothing seems to be driving construction of new houses more affordable or profitable because it's more comfortable to buy and inflate existing ones.
Little of this increase of wealth is helping increase of supply, as capitalism should be. It's not balancing itself out for more than a decade now, it's just inflating.

Simple math - I can still buy standalone 3 bed house in average to good area in Vegas for $450k which likely won't need much maintenance. If I want to build it's $170-200k for a section. Then $300-340k for spec 3 bed house with garage. What exactly wasting $100k and 6-8 months of not receiving rent has to do with "comfort"?

[AlFa]

Population growth over last 50 years: 2.8mil 1970 to 4.9mil now. Fastest growth has been in the last 10 years of 2.1% average per year.

The average number of approved new housing consents per year in the last 10 years: 1.6% of existing stock annually.

Of which maybe only half will lead to actual houses being built.

[Chris W]

Simple math - I can still buy standalone 3 bed house in average to good area in Vegas for $450k which likely won't need much maintenance. If I want to build it's $170-200k for a section. Then $300-340k for spec 3 bed house with garage. What exactly wasting $100k and 6-8 months of not receiving rent has to do with "comfort"?

Just want to clarify with you. Are you referring to:

1) Las Vegas (I do know some investors who have bought in Las Vegas)
2) Roto Vegas
3) other Vegas