Landlords 'dipping into own pockets'

Wednesday 4 February 2004

Nelson landlords are dipping into their own pockets to sustain a rental market hit by rising house prices, industry insiders say.

By The Landlord

While median house prices have as much as doubled on what they were in December 2002, average rents have increased by less than 20 percent.

That meant investors who bought when house prices increased were either getting a smaller return or were spending more money to keep their investment working, Nelson Property Investors Association secretary Glenn Morris said.

"There are people out there who don't have enough money after paying their rates, insurances and other expenses to meet all their mortgage costs, and have to dip into their own pockets to put more money into their investment," Mr Morris said. "Without a doubt people buy with an expectation that they will make a whole lot of money which, to be frank, is becoming a fool's paradise."

Read More - Opens in a new window
Commenting is closed

Property News

Return to market form

There’s been a rallying of the market with the latest REINZ data showing both sales volumes and median house prices noticeably up with the onset of Spring.

House Prices

No stopping Capital price rises

There’s no sign of a slow-down in Wellington’s property prices with Trade Me Property’s latest data showing that asking prices continue to rise solidly.


NZ proptech start-up scores major investor

Auckland-based commercial property disrupter, Jasper, has raised $2.3 million in seed funding following investment from European asset manager M7 Real Estate.


LVR loosening likely - ANZ

LVR restrictions were never meant to be a permanent feature of New Zealand’s housing market and ANZ economists argue that some further relaxing of them could soon be on the cards.

Site by PHP Developer