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domy2010 - 2021-04-05 16:39:00

But do you trust the Government not to arbitrarily change the business rules?
What brave soul will risk $Ms building when the rug can just be pulled out from under your business?

pcle - 2021-04-05 16:45:00

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domy2010 - 2021-04-05 16:55:00

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hooserat - 2021-04-05 20:30:00

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domy2010 - 2021-04-06 07:37:00

Build to Rent developments could well score free money from the government - there are funds available. Strangely enough the $350mill set aside last year to underwrite developments was not required and has been refocused to something or other else.

Build to Rent will probably be set up by the private sector and professionally manage. Shareholders will expect the development to return a profit. So long term tenancies available at market rent. If rent controls look like being on the agenda, potential investors will walk away if they have any sense.

artemis - 2021-04-06 07:43:00

artemis wrote:

Build to Rent developments could well score free money from the government - there are funds available. Strangely enough the $350mill set aside last year to underwrite developments was not required and has been refocused to something or other else.

Build to Rent will probably be set up by the private sector and professionally manage. Shareholders will expect the development to return a profit. So long term tenancies available at market rent. If rent controls look like being on the agenda, potential investors will walk away if they have any sense.

I agree... the "business" of owning property and renting it out is too much of a "political football" to attract commercial / business players who like and need some degree of stability for them and their shareholders... for the foreseeable future the provision of rental housing stock is down to the mom & pop group, and of course the government etc with respect to "state housing"..
It would be interesting to find out if any big commercial operation has investigated the option of a "green field" project to say build 20 + rental units / properties.. run the numbers etc and then ultimately flagged it away... what put them off .. was it just the numbers did not add up or was there some other non financial factors??

onl_148 - 2021-04-06 10:24:00

onl_148 wrote:

I agree... the "business" of owning property and renting it out is too much of a "political football" to attract commercial / business players who like and need some degree of stability for them and their shareholders... for the foreseeable future the provision of rental housing stock is down to the mom & pop group, and of course the government etc with respect to "state housing"..
It would be interesting to find out if any big commercial operation has investigated the option of a "green field" project to say build 20 + rental units / properties.. run the numbers etc and then ultimately flagged it away... what put them off .. was it just the numbers did not add up or was there some other non financial factors??

Even if the numbers did add up - No business could operate with the insane tenancy laws. It would only work if "special" exemptions were granted - like what HNZ gets.

pcle - 2021-04-06 10:53:00

Oh hell no. The risk/rights pendulum has swing very much back in favour of tenants under this government. I certainly wouldn't buy/build one rental. Better to go in with others to spread the risk or have many rentals to diversify the risk.

loose.unit8 - 2021-04-06 12:10:00

There are several big corporates actively working towards build to rent including NZs largest listed property fund Kiwi Property.

hers.nz - 2021-04-08 18:23:00

Where have all domys post gone ?

lovelurking - 2021-04-08 18:37:00

lovelurking wrote:

Where have all domys post gone ?

Doesn't take much to get you a holiday nowadays.

apollo11 - 2021-04-08 19:03:00

Under the current requirements placed on NZ landlords I cannot see how these build to rent schemes can possibly be profitable.
If every leaky tap and sticky window catch requires a tradesman callout all the rents will be sucked up in fees and maintenance costs.
Most astute landlords only make an income because they do a lot of the minor work themselves.
The reality is that landlording in NZ is a high workload low income business quite unsuited to the largescale professional ownership seen overseas where the obligations placed on tenants are far more draconian.

flyernzl - 2021-04-17 23:39:00