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."
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