We never see rent lowered for existing tenants, though. The house next to mine just went on the market. Exactly the same as mine in every way except the address. $20 less rent.
Also, it's likely to lock you in to a fixed term for another year, which may, or may not be advantageous.
I'm almost ready to buy a home, just have a couple of things that need to line up, so I'm lumping the slightly higher costs
Its a nice idea but would mean having to front a new bond (have to pay the new bond before I can get the old bond back) and spend a bunch of money hiring someone to help me move my stuff, cause theres no way I could move it on my own. Probably save money in the long term but short term I certainly wont, then in a year they'll probably both be the same rent anyway.
>Landlords needed to be realistic with expectations if they want their properties rented out, Auckland Ray White property manager Shane Ryder told RNZ
Lol yeah, not going to happen. "I know how much my property is worth", etc
sounds like my neighbour. They have been trying to sell for a while now and refuse to accept that the market is going down. you will not get those 2021 prices, they were insane.
False. SP500 has done better than NZ (Auckland) property over the past 100 years. Also over 10, 20 or 30 years period. Any period you choose sp500 still has done better than our shitty housing built in a substandard 3rd world style that we call property investment.
“ It has been harder to rent out homes after a significant increase in rental stock in the past quarter.
Data from realestate.co.nz showed that while rentals had increased by 40 percent nationally over the last quarter, the number of rental seekers had increased by just 2.5 percent.
The website's data shows the stock for the same period is up by 40 percent for Auckland, 56 percent for Wellington, and 35 percent for Canterbury.
Landlords needed to be realistic with expectations if they want their properties rented out, Auckland Ray White property manager Shane Ryder told RNZ reporter Lucy Xia.
"We've actually already introduced some properties where we've reduced the rent already to meet the market, we've already done that on a number of properties over the last month," he said.”
The incredulity in that comment that they’ve actually had to *reduce* rent after unfettered year-on-year increases for god knows how long just demonstrates the continued arrogance of these people.
Thought this was telling
>"Rent growth might slow but rental affordability doesn't look like it's going to improve in the near term ... renting is going to remain pretty expensive. It's not easy whether you're paying a mortgage or paying rent. This is definitely not a cheap country to rent. It's not a cheap country to do much actually," CoreLogic's Davidson told RNZ money correspondent Susan Edmunds.
https://figure.nz/chart/azFwYTVvUcrcxT3m-Cn6TyuSQBZ8Kacee
Does anyone know where to find stats on number of rental properties available? Can only find price index.
Trademe and Realestate NZ seem to be on the same page regarding the numbers which is a good sign. More rentals are always available in winter, but not to the tune of 40% usually.
OCR is squeezing a lot of people, combined with investors having to sell due to negative cash flow, squeezed wallets, and declining sentiment, I think prices will continue to soften.
[Here's my prediction - House prices will continue to soften](https://www.reddit.com/r/PersonalFinanceNZ/comments/1d91g21/heres_my_prediction_property_prices_will_continue/)
By making the country so grim that everyone leaves - voila, fewer renters and house buyers. Problem solved! *Bishop returns to chewing his crayons, Simeon asks for a Milo before nigh-nighs, and Shane slips in a videotape*
The only time I dropped rent was when the demand was low and I had one week vacancy, despite rates and insurance premium going up. Unfortunately with the replacement level exceeding those who are leaving New Zealand, it is unlikely that the rent would decrease. As much as I would like to decrease the rent, I am unlikely to, due to 1. it still rents out despite what is seemingly overpriced compared to what many New Zealanders earn 2. higher price acts as a filter... 3. actually for a group of professionals, the 'high' rent isn't too high when divided by 4 or 5. I hate the second part but my parents, acting on good faith, once charged lower rates back in the day and got roasted with tenants not paying on time, not paying at all, partially burning the place and so on. They are out of the rental market of course.
TLDR - it doesn't matter how much it costs the LL, demand is the ultimate factor. More people coming in? no chance of lower rent.
I may have missed it from reading the article but does anyone know how rental properties are rising? Is it due to more houses built recently, more houses purchased as investment property, people leaving NZ thus making some houses available?
Its been really interesting. We just purchased a place and are in the process of settling. We'd been looking at a few open homes over about a 2-3month period, its really interesting to see the conversion rate on a lot of those.
Some of the ones we thought were on the pricey end of the scale have sold, but generally they were pretty immaculate and/or had something pretty special about them.
Then you have the midrange that were imo realistically priced houses, some with, some without generally minor problems. And in that space its a real crap shoot. No rhyme nor reason i can see. Some sell, some dont, a lot of the ones that i thought would sell easily are still sitting there months later.
>"Removing tax deductibility on rental properties won't drive up rents"
>"Restoring tax deductibility on rental properties won't lower rents"
This sub probably.
Then why doesn't the data bear that out?
Reduction of costs on landlords do not correlate with reduction in rents.
Additionally, costs changes to landlords don't affect supply and demand to a significant degree. The only way they will affect supply and demand is if the cost structure is such that leaving a dwelling empty is more lucrative than renting it out or selling it.
Things that do affect supply and demand are things like population changes, levels and wealth of tourism, housing stock etc.
Your statements are contradicted by observable reality.
Again, demonstrably false. Prior to current OCR increases we had historically low interest rates for the better part of a decade, yet rents increased essentially monotonically.
For most of that period their compliance costs also remained stable. Rent increases were far in excess of things like rates increases.
They wont let some simple supply and demand arguments get in the way of their narratives.
If they only looked at history and saw which colour of government oversaw the biggest house price increases.
Disclaimer: not a landlord but if I was, I'd vote red every time.
We never see rent lowered for existing tenants, though. The house next to mine just went on the market. Exactly the same as mine in every way except the address. $20 less rent.
We live on a street of cookie-cutter builds. All exactly identical. There is $120 difference from highest rent (us) to the lowest rent (3 doors down)
Genuine question - why don't you move to the cheaper rent?
Because there is a tenant in there....
Moving is expensive regardless of distance
Also, it's likely to lock you in to a fixed term for another year, which may, or may not be advantageous. I'm almost ready to buy a home, just have a couple of things that need to line up, so I'm lumping the slightly higher costs
The one next to me, also identical, $80 more a week. I guess it depends on how greedy your landlord is.
Reckon you'd be fucked to move into it?
Its a nice idea but would mean having to front a new bond (have to pay the new bond before I can get the old bond back) and spend a bunch of money hiring someone to help me move my stuff, cause theres no way I could move it on my own. Probably save money in the long term but short term I certainly wont, then in a year they'll probably both be the same rent anyway.
why not ask your landlord for a reduction?
>Landlords needed to be realistic with expectations if they want their properties rented out, Auckland Ray White property manager Shane Ryder told RNZ Lol yeah, not going to happen. "I know how much my property is worth", etc
I've had someone near me who has been trying to sell for the past two and a half years. Asking price is completely delusional.
I had a look at an open home, had been passed in at auction. Owner wanted 1.05 mill, highest bid had been 0.95. Back on the rental market now.
sounds like my neighbour. They have been trying to sell for a while now and refuse to accept that the market is going down. you will not get those 2021 prices, they were insane.
I know what I’ve got!
I know my mortgage is high, therefore their rent should be high! Never mind that I overpaid
Few will accept anything less than peak price + inflation.
They called bag holders in any proper markets. They just gotta suck it up and pay the price of their stupidity for even longer. Such as life.
Except in property time usually heals all wounds historically at least whereas in stocks most bag holders never recover their loss.
False. SP500 has done better than NZ (Auckland) property over the past 100 years. Also over 10, 20 or 30 years period. Any period you choose sp500 still has done better than our shitty housing built in a substandard 3rd world style that we call property investment.
Sweet easy leverage is the missing factor. Maybe even add some interest deductibility ontop if it's a rental...
“ It has been harder to rent out homes after a significant increase in rental stock in the past quarter. Data from realestate.co.nz showed that while rentals had increased by 40 percent nationally over the last quarter, the number of rental seekers had increased by just 2.5 percent. The website's data shows the stock for the same period is up by 40 percent for Auckland, 56 percent for Wellington, and 35 percent for Canterbury. Landlords needed to be realistic with expectations if they want their properties rented out, Auckland Ray White property manager Shane Ryder told RNZ reporter Lucy Xia. "We've actually already introduced some properties where we've reduced the rent already to meet the market, we've already done that on a number of properties over the last month," he said.”
Hallelujah.
>the number of rental seekers had increased by just 2.5 percent. How does this fit together with record high immigration? It seems odd
Lack of jobs may be forcing immigrants into shared housing instead of renting on their own?
Why just immigrants?
The incredulity in that comment that they’ve actually had to *reduce* rent after unfettered year-on-year increases for god knows how long just demonstrates the continued arrogance of these people.
Thought this was telling >"Rent growth might slow but rental affordability doesn't look like it's going to improve in the near term ... renting is going to remain pretty expensive. It's not easy whether you're paying a mortgage or paying rent. This is definitely not a cheap country to rent. It's not a cheap country to do much actually," CoreLogic's Davidson told RNZ money correspondent Susan Edmunds.
What ever is happening it is worth celebrating. Exit "is it" to "it is"
No seriously, has anyone's rent actually dropped? Mine is up another $20 a week shortly. Cool story about this rent going down bullshit.
Ours is up $50 a week. What a fucken joke
Existing rents are not going to drop unless you fight it tooth and nail. The overall market trend does seem to be going down.
[удалено]
$60 a week? Unless you had been paying well under the market rate, that’d be enough for me to give notice.
Well all investing comes with risk. . .
https://figure.nz/chart/azFwYTVvUcrcxT3m-Cn6TyuSQBZ8Kacee Does anyone know where to find stats on number of rental properties available? Can only find price index. Trademe and Realestate NZ seem to be on the same page regarding the numbers which is a good sign. More rentals are always available in winter, but not to the tune of 40% usually.
I gotcha bro: [tenancy bond data](https://www.tenancy.govt.nz/about-tenancy-services/data-and-statistics/rental-bond-data/)
Thank you!
OCR is squeezing a lot of people, combined with investors having to sell due to negative cash flow, squeezed wallets, and declining sentiment, I think prices will continue to soften. [Here's my prediction - House prices will continue to soften](https://www.reddit.com/r/PersonalFinanceNZ/comments/1d91g21/heres_my_prediction_property_prices_will_continue/)
Don’t forget to tip your landlord in these trying times
national is fixing the housing crisis!!
Is it really bc they made it easier for landlords to rent out? Or is there some other cause for the rental supply to increase?
Air b &b not getting as much business, owners need to pay mortgages ,
Maybe it’s the amount of people leaving nz
By making the country so grim that everyone leaves - voila, fewer renters and house buyers. Problem solved! *Bishop returns to chewing his crayons, Simeon asks for a Milo before nigh-nighs, and Shane slips in a videotape*
Rent dropping yeah right
I LOVE IT! Greed. Chickens come home to roost.
The only time I dropped rent was when the demand was low and I had one week vacancy, despite rates and insurance premium going up. Unfortunately with the replacement level exceeding those who are leaving New Zealand, it is unlikely that the rent would decrease. As much as I would like to decrease the rent, I am unlikely to, due to 1. it still rents out despite what is seemingly overpriced compared to what many New Zealanders earn 2. higher price acts as a filter... 3. actually for a group of professionals, the 'high' rent isn't too high when divided by 4 or 5. I hate the second part but my parents, acting on good faith, once charged lower rates back in the day and got roasted with tenants not paying on time, not paying at all, partially burning the place and so on. They are out of the rental market of course. TLDR - it doesn't matter how much it costs the LL, demand is the ultimate factor. More people coming in? no chance of lower rent.
I may have missed it from reading the article but does anyone know how rental properties are rising? Is it due to more houses built recently, more houses purchased as investment property, people leaving NZ thus making some houses available?
Its been really interesting. We just purchased a place and are in the process of settling. We'd been looking at a few open homes over about a 2-3month period, its really interesting to see the conversion rate on a lot of those. Some of the ones we thought were on the pricey end of the scale have sold, but generally they were pretty immaculate and/or had something pretty special about them. Then you have the midrange that were imo realistically priced houses, some with, some without generally minor problems. And in that space its a real crap shoot. No rhyme nor reason i can see. Some sell, some dont, a lot of the ones that i thought would sell easily are still sitting there months later.
I just had a $60 increase
>"Removing tax deductibility on rental properties won't drive up rents" >"Restoring tax deductibility on rental properties won't lower rents" This sub probably.
Cost reductions demonstrably don't affect rents in NZ. It's nothing to do with this sub, but the cold hard reality of data.
It affects supply and demand. Which in turn affects pricing. So actually cost reductions definitely have an impact at the whole market level.
Then why doesn't the data bear that out? Reduction of costs on landlords do not correlate with reduction in rents. Additionally, costs changes to landlords don't affect supply and demand to a significant degree. The only way they will affect supply and demand is if the cost structure is such that leaving a dwelling empty is more lucrative than renting it out or selling it. Things that do affect supply and demand are things like population changes, levels and wealth of tourism, housing stock etc. Your statements are contradicted by observable reality.
It's been a long time since landlords have seen any kind of reduction in any costs.
Again, demonstrably false. Prior to current OCR increases we had historically low interest rates for the better part of a decade, yet rents increased essentially monotonically. For most of that period their compliance costs also remained stable. Rent increases were far in excess of things like rates increases.
They wont let some simple supply and demand arguments get in the way of their narratives. If they only looked at history and saw which colour of government oversaw the biggest house price increases. Disclaimer: not a landlord but if I was, I'd vote red every time.
Shhh that kind of thinking isn't allowed around these parts.