They will begin to rise inexorably before we know it
Quote:
Originally Posted by
Dr_Who
Rents have risen much higher in the Ponsonby Grey Lynn areas.
In the less desirable areas, the rents are still the same.
Listings up 20% now in waitakere since the beginning of this year, 10% in manukau. Empty and for sale houses now beginning to push rents higher. I hope the Government takes notice that a tsunami is building. It is still not to late to reconsider ...
For landlords who were overstretched but kept ploughing in more cash - living in hope that things will get better, the loss in property is just beginning to be crystallised. And this dollar of equity released, if any, is not going to go into the capital markets, as the beaureaucracy expects. Though industry is the wealth creation engine, property provided a temporary store of wealth while industry continued to blunder along. Given the immediate track record of wealth destruction in the capital markets for the uninformed, cash will be used simply to delever unless the Government has a magic wand that will turn Mr. and Mrs. Ordinary into Mr. and Mrs. Capital market gurus overnight ...
Also the impoverishment effect which will emanate from stagnating (at best, or falling) property markets will ripple through to the capital markets. As a nation, we begin our trek backwards, unless the Government stops and takes heed. If it doesn't as is sadly the case most times, the stretched landlord will be left with no option but do what he/she can't postpone/budget for any longer. Hope the Government has a damage control plan, as in a budget for increasing accomodation supplements or for constructing new social housing. Maybe they could help the chronically unemployed with this latter project ...
Migration from this asset class gathers strength
listings in Waitakere since jan 09 up 20% now
listings in Waitakere since jan 09 up 35% now (M&D and small landlords)
listings in Manukau since jan 09 up 11% now
listings in Manukau since jan 09 up 25% now (M&D and small landlords)
Rents to follow up ... watching this space ... hope the powers that be are noticing the pain and desperation ...