Outlook with property in NZ long term
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| 1 | What is your view in the long term? Looking over past covid. NZ has been compared to Europe where they have a stronger scene where people rent long term. If we jump to Singapore, a very open market but 80% of the population lives in rented government subsidised housing, not restricted to their income but they can't own any property. Singapore also has a commercial market where they can rent and buy something else however. Wasn't there been talk about how person renting could maybe buy it from the government which is also what some overseas countries have done, the tenant may had been renting it off the govt but later on they bought it. Many talk about the unaffordability of NZ homes, realistically doing a U turn doesn't seem to be realistic at all. I don't imagine NZ would get a sustainable wage increase. Maybe now less people have the same priority of home ownership compared to the past? Property prices is not expected to be falling much, would it just be the new norm where more people rent on the open market and home ownership falls back or would something new happen in NZ ........ Edited by rayonline_tm at 8:08 pm, Fri 23 Oct rayonline_tm - 2020-10-23 20:03:00 |
| 2 | Labour aren't going to do anything meaningful in terms of housing. It will continue to go up in price. Landlords may actually have to learn how to landlord and collect rent on their property, not just have people pay them for two years before they flick it for capital gain. sw20 - 2020-10-23 21:01:00 |
| 3 | sw20 wrote:
The landlords I know didn’t intend to buy and then flick for capital gain two years later, they sold because of the hassles involved with renting and of course the new legislation also eroded their confidence... lovelurking - 2020-10-24 07:59:00 |
| 4 | And no toilets or ovens to clean! pcle - 2020-10-24 08:22:00 |
| 5 | lovelurking wrote: And yet investors also continue to buy more properties than this time last year. I know of a number happily using record low interest rates to buy more property. Go figure. And first time buyers are also up. sparkychap - 2020-10-24 08:28:00 |
| 6 | sparkychap wrote:
Yes, the investors are professional landlords though aren’t they? They usually employ people to manage their properties and, even though they are highly leveraged the interest rates are certainly encouraging them to keep buying more. lovelurking - 2020-10-24 09:08:00 |
| 7 | Up up and away in my beautiful balloon funkydunky - 2020-10-24 09:25:00 |
| 8 | If many people are just going to own 1 property their family home the land value isn't that usable. They have to live somewhere unless they pass it down by inheritance. If they sell and buy another prices have all gone up. Govt leasehold, indexed to inflation? Of course if they want freehold those are also available. There were talk about Kiwibuild being rented out right. rayonline_tm - 2020-10-24 09:27:00 |
| 9 | lovelurking wrote: I thought all investors were professional....they certainly should be.... I don't know the exact break down, but anecdotally I know a couple of people just bought their first IP because interest rates. sparkychap - 2020-10-24 09:34:00 |
| 10 | Long term still the best and safest investment in my view. Might be biased though! jeffqv - 2020-10-24 11:22:00 |
| 11 | lovelurking wrote:
yes I saw a real estate agent put on their FB page a house in Hamilton for under $400k..someone said on that will be bought by an investor..I said it may not meet the new standards for a rental so could be bought for a first home buyer. cathi - 2020-10-24 11:39:00 |
| 12 | lovelurking wrote: . And,,,, you forgot to mention, that shine stuff has given investors an average return of 10-11% Over the last 10 years..... it’s pretty good considering no hassle with your Tennants , you don’t need to spend $100k + to do the place up again ( eventually) and it’s pretty liquid too if you ant to sell It at any stage. argentum47 - 2020-10-24 20:13:00 |
| 13 | We could put the country on a postww2 war footing and build prefabs.I think this happened in the UK .These cheap buildings still exist.With a lifespan of 30 years if done in large numbers could reduce the cost of a house back to 5 times the annual salary and be finished with 30 year mortgages. sadmuddle - 2020-10-24 21:08:00 |
| 14 | sadmuddle wrote: It's not like prefabs are a revolutionary idea so there must be a reason why they aren't being used extensively. Hopefully somebody has run a cost/benefit analysis on using them instead of motels. sweetgurl108 - 2020-10-27 08:42:00 |
| 15 | We are still lucky in NZ that rental properties are still very much a fragmented industrym, and still largely a mum-and-dad run business. That is, most landlords are individuals. In many overseas cities, rental properties are run like banks, all owned by 3 or 4 corporations. No way you are able to buy a rental house. Rentals are a full commercial business with property managers and call centres etc. In these countries, there are heavy corporate compliance and laws though, which keeps the rent prices down and standards up. mone - 2021-06-09 13:57:00 |
| 16 | mone wrote:
Over half of NZ rentals are managed by property managers. Part of their job is to deliver something close to market rents to their customers. That means rents will generally rise as market rents rise, including to pay the PM fees for that big chunk of the market. Even for owners with low level expenses and no PM fees - they'll be happy. artemis - 2021-06-09 14:16:00 |
| 17 | sadmuddle wrote:
That certainly did not happen in NZ. The mass houses after the war were simple wooden structures requiring minimal skill to build to a standard set of plans. Minimal plumbing and electrics, coal range, no insulation. Much more pre-fab these days with framing delivered on site, sometimes complete walls. Edited by tony9 at 3:07 pm, Wed 9 Jun tony9 - 2021-06-09 15:07:00 |
| 18 | Prices have been cyclical for a long time, they go up they come down then they go up again. The problem is easy money (printing and low interest rates) and no one believes the gov will allow the system to ‘fail’ (prices to go down). If the gov doesn’t want people investing in property it has to allow the system to self correct and stop printing money for the bank to pump into mortgages. There are other actions they can take too. There’s a stat. floating around along the lines of prices can fall 50% and they will be back to where they were in 2016. How many first home buyers since 2016? Why does ‘the market’ have to suffer to protect that small number of people from the consequences of their decision? How about a 1% ‘covid recovery’ tax on BTL mortgages? How about on residential mortgages? Trouble is the gov doesn’t want prices to fall, once you accept that you realise how stuffed we all are! I say ‘we all’ because the current scenario doesn’t make for a healthy society (as far as housing goes) IMHO. magicroundbout - 2021-06-10 16:09:00 |
| 19 | Could you have the villains who are stuck in jail building some transportable homes? That way when the crims get out of the "big house" they will have completed building/plumbing/electrical apprenticeships and won't have to do crimes when they get out as they might be a lot more employable? tygertung - 2021-06-10 16:30:00 |
| 20 | Capitalists just love Labour Governments...it was the same with Helen Clark who even built up her own property portfolio to include an apartment in London.Go Cindy... Edited by horsygirl at 4:45 pm, Thu 10 Jun horsygirl - 2021-06-10 16:45:00 |
