Comments on: More rental properties needed

By: Tom Pyatt

Tom Pyatt — Tue, 18 Nov 2008 01:02:25 +0000

Owning rental properties with well structured debt and positive cashflows is a much better investment than money in the sharemarket. Whilst property values may have fallen you don,t lose anything if you don,t have to sell. Also rents have been going up improving your return and allowing you to pay debt down quicker, placing you in a better position for when the market turns and it is time to buy again.

By: Nemydom

Nemydom — Mon, 03 Nov 2008 11:59:11 +0000

A house in the Auckland region declined by 7% over the past year. If I buy house for $400k today, it will be no more than $372k in one year anyway. I am loosing at least $28k. It is more than I can get from renting it out for $400 a week, which is approximately $21k. No, thanks!
Unfortunately, 7% is the most optimistic forecast. Nobody knows how far down it will fall in the nearest future. The property in this country enormously overpriced.

By: Nemydom

Nemydom — Mon, 03 Nov 2008 11:57:26 +0000

A house in the Auckland region declined by 7% over the past year. If I buy house for $400k today, it will be no more than $372k in one year anyway. I am loosing at least $28k. It is less than I can get from renting it out for $400 a week, which is approximately $21k. No, thanks!
Unfortunately, 7% is the most optimistic forecast. Nobody knows how far down it will fall in the nearest future. The property in this country enormously overpriced.

By: PAD

PAD — Sun, 02 Nov 2008 09:47:28 +0000

With the OCR likely to be at sub 5.5% by mid-2009 and mortgages at 7% or lower this is likely to cushion and substantial falls in rental properties as bank deposit rates are likely to be at around 4.5% so with cap rates at 8% gross. I’m happy to sit on my rental properties!

NZers will be more inclined to invest in rental properties than the sharemarket as we know from past experiences!

The main problem with USA & the UK is they have non-recourse loans which has caused a huge problem for their financial systems as people just walk away from their homes by giving back the keys ….

By: Nemydom

Nemydom — Sat, 01 Nov 2008 12:41:50 +0000

Rental property is the most risky investment at the moment. Nobody knows how far down it will fall in the nearest future. It is a good time to get rid of houses in New Zealand while they are so expensive. The property in this country enormously overpriced.

By: Glenn Morris

Glenn Morris — Fri, 31 Oct 2008 18:48:46 +0000

Another statistic that is not talked about is the growing number of properties under management by professional property managers. I have been amazed at the growth of independent property managers through out New Zealand. I would be interested to see some some figures from DBH. They do gether up this information because all property managers have a special code.
From my perspective as an independent property manager being a foundation member of the Independent Property Managers Association (IPMA)my own business has been growing rapidly and I have observed some other IPMA members businesses growing also.

By: Marion Barr

Marion Barr — Fri, 31 Oct 2008 09:00:29 +0000

There is definately a need for more rental properties. Every time I advertise for tenants I wish I had another 10 houses to rent to the families that miss out. I am constantly receiving phone calls for houses to rent. The mean people who work in government departments need to have some compassion instead of being mean spirited about constantly coming up with mean ideas to make life as difficult as they can for the New Zealand people who have to live in the real life. I love being a landlord, providing homes for New Zealand families. I wish I could afford to buy more.

By: Lee Kammerer

Lee Kammerer — Fri, 31 Oct 2008 04:37:00 +0000

Not with Labour. They hate anyone/anything they can’t control and that most certainly includes private property investors. “Ring fencing” will be the catch phrase if they get re-elected.