Rates Wellington up 17%

[Beano]

Wellington City Council's rates freeze option forecasts a rates hike of 17 per cent in the 2021/22 year.

https://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=12323791

Anyone looking at a 17% in increase in rental

[Learning]

Anyone looking at a 17% in increase in rental

The rates portion of your rent is 100% ??

[Beano]

Yes on 6 of the properties the rates exceed the net rental I receive !

[donna]

WOW! And any chance of rates holiday in the meantime?

cheers,

Donna

[Perry]

It's ever-the-same with councils.

Always increasing Rates, fees and charges;

Never decreasing operational costs and holding Rates at or below CPI changes.

Empire Builders all.

[klauster]

Quote: While ratepayers may like the idea of a rates freeze, Infometrics senior economist Brad Olsen has warned it could "cripple economic recovery".

Well, and what would he say about the counterproductive attitude when “spending other people’s money”?

[bmt]

Yes on 6 of the properties the rates exceed the net rental I receive !

So instead of increasing the net rent by 17% and extrapolating that to the actual rent, you'll just hike rent 17%?

Rates p.a $2000 > $2340 ($340)
Rent p.a $26,000 > $30,420 ($4,240)

Definitely makes sense to cover an increase of $340 a year by charging an extra $4,240.

Good luck with that btw.

[artemis]

Wellington CC has a whole bunch of infrastructure issues that look to the interested bystander like deferred maintenance coming home to roost. Why?

Not to worry, plenty of the reo and cycleways everywhere - both mainly unused - and the occasional rainbow pedestrian crossing. Yet we keep electing them.

[Perry]

Yet we keep electing them.

And yet the Ratepayers keep wondering why.

Morons United.

[Beano]

So instead of increasing the net rent by 17% and extrapolating that to the actual rent, you'll just hike rent 17%?

Rates p.a $2000 > $2340 ($340)
Rent p.a $26,000 > $30,420 ($4,240)

Definitely makes sense to cover an increase of $340 a year by charging an extra $4,240.

Good luck with that btw.

I am thinking of actually reducing the rent to reduce the loss.
Note these are carparks that recently I have been unable to rent .perhaps due to the covid-19 virus. Perhaps due to price .
Anyway thee rates are more than the rent I receive.

[Nick G]

Gosh why do you still own those things?

[Beano]

Gosh why do you still own those things?

Carparks.
I own three commercial tenancies next door .
Only have 5 carparks onsite (1 per 80m2) . Commercial spaces can be incredibly hard to lease sometimes with insufficient parks.
These 6 parks improve my ratio.
However these parks are accessed by carlift ...not the most popular.

[donna]

Wellington, Hutt Valley and Porirua need to replace all its pipes over the next 10 years so rates will keep climbing. Kapiti thankfully has relatively new pipe infrastructure so we dodging that expense for a while. Plus most of Kapiti's rates comes from residential property so major loss to the coffers expected with COVID-19 business failures.

cheers,

Donna

[PC]

What happened to all the depreciation claimed by the water provider?
Didn't go back into pipes I bet.

[OnTheMove]

Wellington City Council's rates freeze option forecasts a rates hike of 17 per cent in the 2021/22 year.

https://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=12323791

Anyone looking at a 17% in increase in rental

Is that all, after a 250% median house price increase Id have thought the rates would have gone up accordingly like Auck, then again the hole could fall out of the over priced areas in the welli market. Suburbs of value in line with Remuera. Haha pull the other one.