Covid-19 Economic & General Effects for PIs & PMs

[Jeffa]

Rental shortage: surely this is only because of immigration. If the borders are closed then immigration should stop. It might swing the other way, that there are plenty of rentals or too many rentals. Homes that are now Air BnBs for tourism will be put on the normal rental market. Foreign students, particularly Asians, won't be coming to study in Auckland. What will happen to Auckland's apartment buildings (do any Kiwis live in them??). As the Baby Boomer generation starts dying (if NZ doesn't succeed in stamping out the virus then this could happen in large numbers) and their houses are vacant then all of this indicates to me there could be plenty of available housing.

If many jobs are lost, people run out of money and companies go out of business, especially if the lockdown carries on longer than a month, it would make it really hard to find tenants that can pay the rent, making any rental properties you have worthless if they can't produce an income.

Seriously I have a lazy 200k doing nothing..wanna sell?...message me.

[Jeffa]

Rental shortage: surely this is only because of immigration. If the borders are closed then immigration should stop. It might swing the other way, that there are plenty of rentals or too many rentals. Homes that are now Air BnBs for tourism will be put on the normal rental market. Foreign students, particularly Asians, won't be coming to study in Auckland. What will happen to Auckland's apartment buildings (do any Kiwis live in them??). As the Baby Boomer generation starts dying (if NZ doesn't succeed in stamping out the virus then this could happen in large numbers) and their houses are vacant then all of this indicates to me there could be plenty of available housing.

If many jobs are lost, people run out of money and companies go out of business, especially if the lockdown carries on longer than a month, it would make it really hard to find tenants that can pay the rent, making any rental properties you have worthless if they can't produce an income.

This clip is dedicated to my new favorite property forum friend..This is for you propertyfinder!

https://youtu.be/SJUhlRoBL8M

[Wayne]

Rental shortage: surely this is only because of immigration.

Not only but they certainly didn't help.

[Learning]

When the rest of the world see how well we handled the situation, compared with the rest of the world, thousands of immigrants will want to make NZ their permanent home once the borders are reopened.

[motivated]

Im curious to know whether the last few weeks of migration flows have resulted in nett population gains or losses to nz. Can someone provide some figure on this?

[jimO]

if they bring in a couple of "experts" can they still moan about 9 years of neglect

[Keys]

if they bring in a couple of "experts" can they still moan about 9 years of neglect

Absolutely everything for the next decade or two will be blamed on the pandemic. No worries there mate.

[Perry]

Curiously Questionable Article

Double-rent unaffordable, tenants say they have no option but to move
3 April 2020

But Jennifer Sykes, manager of information and education, housing and tenancy services, at the Ministry of Business, Innovation and Employment, said that Landlords are encouraged to be flexible during these difficult times. An option that tenants and landlords in this kind of situation may want to consider is reducing rent temporarily. The Residential Tenancies Act allows parties to a tenancy to agree that the tenant can pay a lower rent temporarily. This could be for a specific time period or until a specific event occurs.

Once that time is up, the rent is reinstated at its earlier amount. As the reinstatement of rent is not a rent increase for the purposes of the Act, it would not be caught by the rent increase freeze in the legislation just brought in. Landlords and tenants are encouraged to talk to each other, work together and take care of each other wherever possible. If parties cannot work together to plan a move within the rules set by the alert system, then the move must not take place. Try to come to an arrangement that suits everyone."

Sharon Cullwick, executive officer of the New Zealand Property Investors' Federation said she had heard of people who had to pay double rent. Cullwick said that it makes it really difficult for both the tenant and the landlord, as we know that 90 per cent of landlords only own one rental property and are probably also facing uncertainty about their job and how they can pay the bills. It is best for both parties to communicate and work out something between them that results in a win/win for both parties.

After the inflexible and implacable example of the general denigration and vilification of LLs by the current socio-commie gummint, I wonder if Ms Sykes choked as she suggested that:

"LLs are encouraged to be flexible"

"tenants and LLs work together and take care of each other"

"LLs and tenants come to an arrangement that suits everyone."

An atypical response from socio-commies. I.e. . . .

Do as we say: not as we do.

When did the current crop of woodenheads proceed with legislation on the basis of "an arrangement that suits everyone?" Or "working together and taking care of each other?" (Viz. Tenants, LLs and the gummint.) Far Gone Boy - please take note. After you beat up LLs, it's beyond shameful and disgraceful that you then ask for lenience, kindliness and generosity from them. (I hope there's a very special hot place reserved for hypocrites like you!)

The brazen gall and temerity of these two-faced shyster-politicians and their hapless flunkies (like Sykes) is beyond belief. (Well, maybe not, given they're a socio-commie gummint.)

Why Sharon did not point out the blatant hypocrisy of it all escapes me.

Oh, that's right: mustn't piss off the legislators in power or they won't talk to us.

[Frezzinghot]

Tried and trusted Bill English and Steven Joyce are supporting the lockdown 'but' believe more needs to be done to ease the pain for small business. If it's okay to visit the supermarket and dairy - why not the butcher or bakery? Plus why are online businesses not allowed to trade? See here for more

My 10 cents worth. The current Gov't needs help easing NZ back to work and as it's unprecedented times they should bring English and Joyce in as advisors better to have them on the inner cycle and using their expertise (sadly lacking in current Gov't) than have them picking holes in the Gov't handling of the crisis.

What do you think?

cheers,

Donna

Exactly, why aren't construction back already, its just a total scam-demic.

[Bluecoat]

rental shortage: Surely this is only because of immigration. If the borders are closed then immigration should stop. It might swing the other way, that there are plenty of rentals or too many rentals. Homes that are now air bnbs for tourism will be put on the normal rental market. Foreign students, particularly asians, won't be coming to study in auckland. What will happen to auckland's apartment buildings (do any kiwis live in them??). As the baby boomer generation starts dying (if nz doesn't succeed in stamping out the virus then this could happen in large numbers) and their houses are vacant then all of this indicates to me there could be plenty of available housing.

If many jobs are lost, people run out of money and companies go out of business, especially if the lockdown carries on longer than a month, it would make it really hard to find tenants that can pay the rent, making any rental properties you have worthless if they can't produce an income.

you should change your name to iamadreamer

[propertyfinder]

you should change your name to iamadreamer

Bluecoat - please explain. What don't you agree with? Why? what's your view on it?

The same with you, Jeffa.

I posted that hoping for some intelligent discussion, but so far I'm disappointed by the lack of it.

[Jeffa]

Bluecoat - please explain. What don't you agree with? Why? what's your view on it?

The same with you, Jeffa.

I posted that hoping for some intelligent discussion, but so far I'm disappointed by the lack of it.

Correct! However I am not the most serious investor if some haven't figured that out by now.

Rental shortage -

As of today is there any vacancies in your portfolio?
You have six months worth of free money or mortgage deferral.

After 6 months?

Do you have any equity in your property to tide you over if you have long periods of vacancies? Or did you spend it all on trips to the Gold coast..if you did then you probably deserve to be in the woohu poop.

You do have equity..then if you're a serious investor take enough out to get you through these rough times because the lockdown is only temporary..and if you can't afford to pay between %2.89 and %3.05 finance you shouldn't be even playing this game...and its only going to get cheaper.

Air Bnb...well my theory is they are only the high end properties...and most investors are landlords not Hotel owners and I doubt Cathy is going to sell her house because a German tourist won't rent out the spare room or sleep out now her daughter is going University or RENTING on there own!.

Auckland Apartments-
Ever tried to get finance for those?bank's don't like them precisely for what is happening now..Investors that own those should only be paying cash for them..if you have finance you should have a 40% deposit (correct me if I am wrong).talk to your bank.
Apartments well in my opinion they are not the smartest investment because were not New York or Singapore. I believe investors like Mark Richardson have the capital to get through these times.

Baby boomers

Firstly Im Gen X ...the what I would call the ignored generation (yay!)

As of the 4 April 2020 There is ...wait for it ...1 death from the Corolla virus. (Sorry to disappoint you)

I believe Wealth as in Property is Generational many will pass it on to there offspring or grandchildren or even their cat
possibly with mortgages or Mortgage free and if the millenials can't afford to pay sub 3% interest rates then property investors have a responsibility to take it off their hands!

Many jobs will be lost the majority in the service and tourism industry, they are some of the lowest earning jobs in the country I doubt many owned property.
They will move to the cities for work and pay rent there.
Tourist towns have always been up and down but see my first paragraph if you need help.

Agriculture towns...the world needs food and fine wines!

I predict many businesses with office commercial leases possibly up to half may find if there staff are able to be productive slaves at home ..why would you pay hundreds of thousands of dollars a year in commercial office rent when you're employee can do the same job at home for free?
Maybe..maybe not but if I was a business owner I would be seriously looking at that option. $$$

This may force investors with commercial offices back into residential and pushing up prices from another group of greedy landlords!.

Just my thoughts

Always look on the bright side of life..bee doo...bee doo..bee...doo.

[Learning]

As of the 4 April 2020 There is ...wait for it ...1 death from the Corolla virus. (Sorry to disappoint you)

That stands as testament to how well NZ has managed this outbreak. 1 death to 97 recovered is one of the highest success rates so far. Globally the average is 20% dead to 80% recovered (though the numbers are a little skewed as the vulnerable tend to die quicker than the strong recover). It goes to show that NZ has been more successful at containing the spread and protecting the most vulnerable.

[klauster]

It goes to show that NZ has been more successful at containing the spread and protecting the most vulnerable.

The covid-19 stats don’t explain anything. Every death, if avoidable, is very sad to happen and a problem as numbers altogether in NZ are too high in comparision.

Covid-19 impact; AirBnB and hotels is not common rental market, social & emergency housing the govt (taxpayer) works on it, and for landlords the boomerang comes with RTA changes. If in business, everyone has to find the answer. We reduced the numbers and exposure!

[Nick G]

This book was written a couple of years ago and is well worth a read as we start to look ahead to what central governments are going to have to do and what it will mean.

Big Debt Crises