Rent freeze coming to Auckland soon by Labour ?

[mrsaneperson]

1.4 million homes in the city of Berlin, Germany just received a rent freeze to prevent skyrocketing rents.

Could it happen here in Auckland??

Here's a link to the crisis in Germany's largest city :

https://www.dw.com/en/berlin-rent-cap-takes-effect-amid-urban-exodus/a-52486849?maca=en-newsletter_en_bulletin-2097-html-newsletter

[Beano]

1.4 million homes in the city of Berlin, Germany just received a rent freeze to prevent skyrocketing rents.

Could it happen here in Auckland??

Here's a link to the crisis in Germany's largest city :

https://www.dw.com/en/berlin-rent-ca...tml-newsletter

Do you mean could it happen again ?
NZ has had a rent freeze before and it was around for decades

[Perry]

NZ has had a rent freeze before and it was around for decades.

When was that?

[Keys]

Muldoon. Wage/price freeze.

[Wayne]

Muldoon. Wage/price freeze.

https://teara.govt.nz/en/video/33455/muldoon-announces-a-wage-and-prize-freeze-1982

Lastest 2 years rather than 1 and was removed by the incoming Labour Govt.

[mrsaneperson]

Well if they are trying to prevent overcrowding in the city of Berlin the rent freeze would surely serve the opposite of that?
Thereby creating greater pressure on its infrastructure.

[Wayne]

Well if they are trying to prevent overcrowding in the city of Berlin the rent freeze would surely serve the opposite of that?
Thereby creating greater pressure on its infrastructure.

I thought it says they are trying to stop people leaving the city due to high rents?

[mrsaneperson]

I thought it says they are trying to stop people leaving the city due to high rents?

Well the only reason they are high is because demand is high , so if rents are lowered it would create a situation that could result in overcrowding.

Did anyone watch the video? Its quite alarming of a left wing government imposing its socialism on its city . We may see the same thing happening here as Jacinda has never pretended to be anything BUT socialist.

If you watch the video it scares the Hell out of me, of possible parallels coming to NZ given the rampant rise of "we want it all" cries from those in lower socio economic situations .
For example Berlin Housing Rights Activist , Susanna Raab says "" Property may be transferred to public ownership for the purpose of socialization, this is under Article 15 but it has never been invoked"".
The government is proposing that real estate owners with significant property ownership be bought out by the state and that landlords do not have a right to overly profit from their housing investments. The rights of the renters are further been legislated for where they can demand a reduction in rent and if the landlord does not comply they face hefty fines. A referendum has taken place and thousands have signed it.

Nightmarish and sure to be a forewarning of whats to come - all supported by the UN by the way

[Wayne]

Well the only reason they are high is because demand is high , so if rents are lowered it would create a situation that could result in overcrowding.

Which isn't what you said - you started with 'if they are trying to prevent overcrowding'. They aren't trying to prevent overcrowding and if the result is more people staying in the city then it will achieve their goal.
I suspect it will have a heap of unintended consequences and fail though.
One area it will fail is the properties will become rundown as the LLs can't afford (or don't want to) maintain them.
Next step is probably minimum maintenance standards blah, blah.

Nightmarish and sure to be a forewarning of whats to come - all supported by the UN by the way

I really doubt this would happen in NZ.
By European standards we aren't socialist at all.

[Perry]

Muldoon. Wage/price freeze.

That sounds better. NZ did not have a rent freeze.

It had a wage / price freeze that included rents.

We even had General Wage Order increases, back then, too, as I recall.

[Perry]

The What?

Nightmarish and sure to be a forewarning of whats to come - all supported by the UN by the way

Ahh, the UnnecessaryNostrum. See here.

[Beano]

That sounds better. NZ did not have a rent freeze.

It had a wage / price freeze that included rents.

We even had General Wage Order increases, back then, too, as I recall.

I am thinking of a earlier freeze/control well before Muldoon era
The rents could not increase so long as the tenant did not change
They could only be evicted by court order for a reason like landlord moving in
It was active about 90 years ago
Not certain if the law was repealed or not
About thirty years ago i read about a old lady who was still paying the fixed rental set about seventy years earlier
I tried to Google it but could not find details about it
Perhaps someone else could remember the details of it.
Ps our home was one of them ...in the 1950's

[m3ntis]

Tenant & Landlord rules are very different in Germany..check out the very long list under the Deutsche BGB..tenant brings own lighting, kitchen, flooring, curtains and returns property exactly the way taken (and does the maintenance including painting) even after many years..Austria & Switzerland the same..it means while rent maybe capped the maintenance/ refresh is non-existent

[Wayne]

Tenant & Landlord rules are very different in Germany..check out the very long list under the Deutsche BGB..tenant brings own lighting, kitchen, flooring, curtains and returns property exactly the way taken (and does the maintenance including painting) even after many years..Austria & Switzerland the same..it means while rent maybe capped the maintenance/ refresh is non-existent

This is why it is very risky to pick and choose bits from countries.
To compare you need to look at the whole system.

[m3ntis]

It’s also 3 months notice, 3 months deposit and not unusual for 6 months to return the deposit (to fully identify any outstanding financial consequences)..a tenant must communicate in writing on any topics which require action & obtain clear acknowledgment of receipt; a notice to terminate is always taken from the beginning of the month coming plus tenants have clear obligations to clear stairwells in common areas, footpaths outside the property, strict noise restrictions which trigger direct police intervention, no washing clothes on Sunday days, no bbqs or smells that can cause neighbour complaints and absolutely no power tools, machinery or pet noise after 7pm plus they must have personal indemnity insurance in case any accidents happen to others while they are on the property. tenants can do absolutely anything they like inside the property (with approval) but it must be returned to exactly the way it was given to them using professional tradespeople to get it back to the standard or their and any undersigned peoples bank accounts, assets and employment will go in front of the court to structure repayment; repayment is a credit impact which then stops mobile phone contracts, changes any existing service or leasing arrangements, may result in future utility company agreements demanding 6 months payment up front, ability to get bank account overdrafts and any tenancy debts are serviced directly out of the account prior to the ex-tenant having access to any regular income etc..it’s all connected, immediate and really serious. If someone ends up on the street because of damage or frozen bank account there’s very little compassion; and it will take them months to unpick the different events and get things back to normal ..

A typical court example - a tenants chair leg scratched the floor while in use and they claimed it was wear and tear; the court responded it would have been wear and tear if they had lived in the property for 5yrs; having only been in the property 18months - the scratch on the floor was damage and the tenant must pay for a tradesperson to repair; the whole floor may need replacing as to fix a portion may break the rule of returning in exactly the same condition as being given

it’s also a funny thing to think if your friend comes over and breaks his glasses; his insurance claim will immediately trigger a letter suing you to then trigger your Liability insurance company to step in..never take a wet umbrella into a German rental property as the chaos it causes from a mark on the wooden floor and all the different parties being involved on who is liable to remedy becomes a full time job..in saying how complicated, uncompromising and strict this is; the landlord has very clear obligations including to allow the tenant to treat the property as their home and everything, absolutely everything is a legal contract between tenant & landlord..if either party breaks the contract or obligations then they are at fault; both parties must show clear intent of having tried to work it out and communicate but the law is the law and a contract is a contract.