Comments on: Key on property investors’ menu too?

By: Graham

Graham — Mon, 24 May 2010 08:22:12 +0000

The property prices have been to high for too long. Without ongoing increases in property value it is difficult to justify buying rental property at the current low rental returns.

The price of land in artifically inflated by the councils trying to contain the city boundaries. We are in a country of 4m people. There is plenty of land and it shouldn’t be so expensive.

By: rob of the north

rob of the north — Fri, 21 May 2010 05:25:23 +0000

don’t hold your breathe, landlords.
english has thrown a few more extra few million in the budget to the IRD with the express purpose of heavy auditing of landlords and investors.
also i heard english on the midday news today talking already about more focus on tightening up any loopholes in the tax /prop.system.
don’t be naive enough to believe that this is all that will be happening to discourage prop.investment….they don’t want to lose alot of the NAT. voting base overnight as many Nats own prop.
but more adjustment will come!

By: Rod Philson

Rod Philson — Fri, 21 May 2010 05:07:15 +0000

Having spent the day reworking figures I have concluded that the owner of a brand new $500k investment property,who uses a chattels valuation, and who offsets losses over 10 yrs against an income of approx $100k, will pay on average an additional $50.00 per week to own his investment property.
A contribution of $80k over ten years to earn approx $200k tax free capital gain (Based on an average 5%pa capital Growth) is a great investment.
NB the national average for the last 30yrs is 7% which would equate to $420k tax free capital gain = even better.
Remember its the return OF your money that counts, not the return ON it.
Congratulations to John Key & Bill English for a revamp that will see most people continue to invest in bricks and mortar, rather than the risky sharemarket or finance company term deposit.

By: Linda

Linda — Mon, 17 May 2010 02:42:49 +0000

John should send those affordability figures to the to Mary Holm at the Herald she obviously hasn’t seen them. Housing in NZ is very afordable unless you want to live close to the CBD in Auckland or Wellington and that is the same re CBD areas in most countries.
Some young house buyers in NZ need to take their first home aspirations to the outer suburbs, the same as all the generations before them had to do.

By: harry

harry — Sun, 16 May 2010 22:18:46 +0000

after all the money that the finance companies have lost it is not only stupid but downright callous to ask the mums and dads to divert investment from housing into shares. people don’t have thousands to invest. they borrow money to invest in property. if share market is so safe why do you think the banks dont lend money to invest in shares and bonds. i wish the likes of bernard hickey or gareth morgan who are advocates try and borrow money froma bank to invest in shares. they will be laughed out of the bank even by the youngest teller working there. get real. property is the best bet for average kiwis.

By: John

John — Sun, 16 May 2010 22:07:12 +0000

Just to put housing affordability in persepctive, these are the figures from demographia. Note that the lower the number, the more affordable. The rate is medium house price versus income. Auck 6.7, Wgtn 5.8, Sydney 9.1, Melb 8.0, London 7.1, San Francisco 7.0, New York 7.0, Los Angeles 5.7, Toronto 5.2, Vancouver 9.3, Montreal 4.9. NZ does not appear to be fantastically unaffordable relative to other places.

By: Alec Tod

Alec Tod — Sun, 16 May 2010 20:32:02 +0000

When the government changes the rules as to claiming depreciation – they change the basic economic rationale of investing in property. In which case they must allow those investors who bought property having factored in depreciation to sell property without expecting a claw back of previously claimed depreciation.
If they move the goal posts they are in for a fight from landlords who want to get out because of this change – and get out without penalty.

By: Tony

Tony — Sat, 15 May 2010 03:08:58 +0000

Hi, I totally agree with Joy & Debbie,
It’s not a bed of roses being a landlord, been there, to get drip feed $5 a week for outstanding rent.
But when you have good tenants you look after them and not put up the rent too often to scare them off.
I would rather keep my two rentals, which I have control of, rather than invest in finance and insurance companies. You have no control, look at all the Mum and Dad investors in their 60s, who are now in debt and have lost their life savings. We must stop boards and Ceos from giving themselves large pay rises, while the results do not warrant this.

By: Ross Pullan

Ross Pullan — Fri, 14 May 2010 12:47:08 +0000

NZ is now part of a global economy. Where anyone in the world can buy into our market,With very few questions asked. I know you will say ” what about restrictions on foreign ownership?”. Have you ever known any government dept to turn down anyone buying houses who lives overseas? If you do, I think you will find it rear. So you must look at NZ house prices compared to wages of more affluent countries, or should I say those in the mid to high incomes in those countries.

By: Joy

Joy — Fri, 14 May 2010 08:10:31 +0000

Totally agree with Debbie, there are some tenants that really try your patience then you get a really good one that restores your faith so you keep on keeping on.