Rent Prices will Soar
| # | Post |
|---|---|
| 1 | Govt "initiatives" announcing now are going to kill property investment. Also going to reduce investment in new builds as the rental investors back out. tony9 - 2021-03-23 09:14:00 |
| 2 | apollo11 - 2021-03-23 09:15:00 |
| 3 | Absolutely it’s the interest thing I would have thought, I also don’t quite get the bright line test thing doesn’t that mean everyone who subdivides is going to have to pay tax? Quite a disincentive to do so? But yeah the interest thing will put rents up and I don’t see loads of people selling if they’ve just extended the bright line test!! magicroundbout - 2021-03-23 09:20:00 |
| 4 | More tax! More Tax! Brilliant. Transformative. That'll fix it. Edited by pcle at 9:22 am, Tue 23 Mar pcle - 2021-03-23 09:21:00 |
| 5 | Glad we’re going to build another 10,000 houses though ;) magicroundbout - 2021-03-23 09:22:00 |
| 6 | magicroundbout wrote: Is Twyford back on the tools? pcle - 2021-03-23 09:22:00 |
| 7 | Ah so I see new builds stay at 5 years! Love the description tax ‘loophole’ it isn’t a loophole Good to see they are pumping more money into the market with increased allowances for salaries and price caps nice they are still stoking house price inflation. Maybe Wellington can use that housing acceleration fund to replace it’s broken pipes ha ha Edited by magicroundbout at 9:28 am, Tue 23 Mar magicroundbout - 2021-03-23 09:25:00 |
| 8 | All these investors that are bailing out ... who are they selling to? funkydunky - 2021-03-23 09:29:00 |
| 9 | That's a good thing right. To sour from an investors point of view. Edited by rayonline_tm at 9:58 am, Tue 23 Mar rayonline_tm - 2021-03-23 09:57:00 |
| 10 | funkydunky wrote:
Home owners, perhaps. The problem with that being that (according to stats nz) on average, owner-occupied houses house a fewer people per house than rentals. So converting rentals to owner-occupied will likely exacerbate the housing crisis and in particular increasing prices in the rental market (markedly less supply) while also increasing homelessness. Edited by loose.unit8 at 10:44 am, Tue 23 Mar loose.unit8 - 2021-03-23 10:42:00 |
| 11 | Basically what the government would like is for some investor / developer, to buy a plot of land and have constructed on them houses / homes that they then rent out.. Given that currently it would take the "thick end" of a year to get city council consent and other permissions to even turn the first sod of soil... it is not a hell of an attractive prospect !! Once built there would be an expectation that the rent would "acceptable". onl_148 - 2021-03-23 12:33:00 |
| 12 | magicroundbout wrote:
Yeah I saw that too, "tax loophole", not sure why it's a tax loophole, in every business you can offset income with expenses. You really have two choices, put rents up to help cover this added expense or sell up and wear any probable capital gains tax. I'll go with the first option thanks. kitzbuhel - 2021-03-23 12:34:00 |
| 13 | magicroundbout wrote: apollo11 - 2021-03-23 12:40:00 |
| 14 | apollo11 wrote:
lol mkr_ahearn - 2021-03-23 14:04:00 |
| 15 | apollo11 wrote:
Kiwibuild was *only* in the planning stage for 9 years I can see how the Labour party got the basics so badly wrong. loose.unit8 - 2021-03-23 14:13:00 |
| 16 | I can't believe that Labour don't understand the basics of running a business, you can't run at a loss like governments do. Muldoon tinkered with rents, wages and mortgages with his 'freezes' and it failed miserably. We got our mortgage through an insurance company and lawyer's fund at the time and when the floogates opened we were paying 23% interest. bryshaw - 2021-03-23 17:42:00 |
| 17 | bryshaw wrote: omg really that was over 30 years ago please let it go.....house prices were only 3 times annual salary, IF that. lakeview3 - 2021-03-23 17:46:00 |
| 18 | funkydunky wrote: investors remind me of the NRA, what was it that the president of that outfit said? Oh yeah something about his cold hand. I am afraid the govt will need to do more to make some people sell up. lakeview3 - 2021-03-23 17:48:00 |
| 19 | lakeview3 wrote:
And interest rates were 20% Mortgages are easier to service now than then. loose.unit8 - 2021-03-23 19:31:00 |
| 20 | bryshaw wrote:
I cant believe landlords think their business should be subsidized, most businesses that don't make a profit go broke and make way for other people do it better and cheaper, but landlords are happy to pay higher and higher prices knowing renters will just pay. The best businesses look to buy the product cheaper this is where you make the most money. loud_37 - 2021-03-23 19:58:00 |
| 21 | I could build ten houses tomorrow but the tax rates around subdivision just destroys the idea. Development costs are high and getting consent almost impossible however it is the tax rate that kills the whole thing. 3tomany - 2021-03-23 20:18:00 |
| 22 | 3tomany wrote: I agree the subdivision costs are ridiculous. Also the way some land is zoned. Local councils need a rocket up the ypu know where. Heard someone today saying they should have to spend at least 75% of their income (rates) on infrastructure and core services. There is seemingly no accountability from them, and essential infrastructure is old and neglected. lakeview3 - 2021-03-23 20:22:00 |
| 23 | loose.unit8 wrote: please give it a rest. It’s old news lakeview3 - 2021-03-23 20:23:00 |
| 24 | This message was deleted. puddleduck00 - 2021-03-23 20:26:00 |
| 25 | loose.unit8 wrote: 20% interest rates are like my childhood memories of endless snowy Christmases in the UK..... sparkychap - 2021-03-23 20:42:00 |
| 26 | tony9 wrote:
Rubbish, with less investor going for family homes, their will be more renters able to purchase homes, making more rental available and cooling the market. Landlord wont be able to continue hiking the rent with less demand solster - 2021-03-23 20:47:00 |
| 27 | If you pay rent - the Labour Government have just added a 28% tax to your bill. That’s worse than if they’d just added GST to rent. pcle - 2021-03-23 21:59:00 |
| 28 | magicroundbout wrote: cassina1 - 2021-03-23 22:02:00 |
| 29 | this wont fix it, it will just make it worse, people all over nz moving to a curb near u, our govt are shocking greedy!! fast_or_last - 2021-03-23 22:21:00 |
| 30 | How kiwi's are putting up with this Normalization of deviance from a Government who think landlords are the problem when we all know supply of homes and building material costs are the real issue. hydroplane - 2021-03-23 22:24:00 |
| 31 | The gov't is better off encouraging more employers to set up in smaller cities and building infrastructure there to encourage business. That way people will follow where the jobs are and spread out, instead of just staying in Auckland and pushing cost of houses up. The main reason is that 60% of employers, jobs are located in Auckland so people will stay in Auckland. Once you disperse the crowd, things will calm down. Houses in Otago and Waikato are still affordable. mone - 2021-03-23 22:28:00 |
| 32 | hydroplane wrote: Canada has an empty homes tax. So do some parts of Germany along with a holiday home tax, all of which is used to fund infrastructure for first home buyers. lakeview3 - 2021-03-23 22:29:00 |
| 33 | Ya dreaming if you think landlords are going to sell up, all that is going to happen is rent increases to cover costs and more people crammed into garages, 4 kids to a room, people living in old caravans etc to survive. hydroplane - 2021-03-23 22:30:00 |
| 34 | lakeview3 wrote:
interesting mkr_ahearn - 2021-03-24 08:01:00 |
| 35 | lakeview3 wrote:
Oh selective recall, LV. My annual income on 40hr week would be $5k, so housing was 6yrs income. smallwoods - 2021-03-24 08:41:00 |
| 36 | 3tomany wrote:
We have 16 acres of residential land here and leaving it bare. smallwoods - 2021-03-24 08:43:00 |
| 37 | tony9 wrote:
I believe there will be more and cheaper rental properties available as property won't be so attractive to flippers which leaves property longer term investors and new home buyers so less pressure as more properties available for this. deboron - 2021-03-24 08:50:00 |
| 38 | solster wrote:
. deboron - 2021-03-24 08:52:00 |
| 39 | puddleduck00 wrote:
5% for first home buyers under new incentives deboron - 2021-03-24 08:53:00 |
| 40 | smallwoods wrote: I was earning $4.99 an hour working in a bakery in 1983 as a young teen and there were houses for sale here for less than $50K in 2000, so yeah good story. lakeview3 - 2021-03-24 08:55:00 |
| 41 | lakeview3 wrote:
My first home 1980 (flat) was 8.5 times my annual salary my 3rd home 1987 (2 storey house in 2 flats) was 20 times my annual salary but by then I had equity of over 50%. Hard work and lower expectations helps. And I was a sole parent at the time. deboron - 2021-03-24 09:00:00 |
| 42 | deboron wrote: you don’t say where it was, I was in Auckland in the early 90s and had 2 jobs, a full time one (sitting on my backside) and a part time one in a bar. I often had an hour before finishing one and starting the other. luckily the bar was across the road from my house so that helped reduce the travel time lol I don’t know how people could do a physical job 40 hours a week and have a part time one also. They would be wrecked. Edited by lakeview3 at 9:08 am, Wed 24 Mar lakeview3 - 2021-03-24 09:07:00 |
| 43 | Does anyone here know if and how this new tax legislation will apply to commercial property? sr2 - 2021-03-24 09:14:00 |
| 44 | lakeview3 wrote:
Maybe in some places ... when I was looking to buy in the mid 90s, I was on around $20k and houses were $120-150k. And no this was not in Auckland. blands70 - 2021-03-24 09:23:00 |
| 45 | apollo11 wrote:
And even then it takes a year to build. Building is so slow in NZ - I dont know why Labour and the rest keep lying about how it magically be done quicker. mikek - 2021-03-24 09:27:00 |
| 46 | sr2 wrote:
It specifically says it applies to Residential - I have already got an email from a Commercial Agent talking it up as a better option now. My only confusion is where its one of those live in commercial units. I assume they just go by the zoning. Edited by mikek at 9:29 am, Wed 24 Mar mikek - 2021-03-24 09:29:00 |
| 47 | Imagine how much worse the property market would have been if immigration and tourism had been 'business as usual'. The government has a chance to wrestle the python while the property market is subdued. If immigration returns to normal then there is probably zero chance of property values falling. apollo11 - 2021-03-24 09:54:00 |
| 48 | The talk about supply. Great but investors may not want less capital growth, less rental. rayonline_tm - 2021-03-24 09:58:00 |
| 49 | New CGT tax now also applies to the family home if not lived in for a year. The liars have been rather quiet about that change. pcle - 2021-03-24 10:12:00 |
| 50 | Landlord Matthew Ryan said the announcement was a mixed bag. “I don’t know that penalising investors is going to make things any easier for first-home buyers.” Ryan, who has around 140 tenants in properties he owns, says the Government hadn’t come up with a solution to fix supply. Him and others like him are part of the problem. Thats why all this "property ladder" terminology instead of calling them homes now. lythande1 - 2021-03-24 10:16:00 |
