Black Monday

[Baa_Baa]

Hording homes? I don't know of anyone doing that. Certainly amongst my colleagues, those that own multiple properties are providing fully-tenanted rental accommodation which are a necessary service in this market. Thus they are not depriving anyone of a home.

Likewise, one of my mates with quite a few multi bed rentals has most of them on the market now. The rules have changed and broken his business model. There’ll be about 60-70 students that have their rental security abandoned. He’ll keep a few of the freeholds to maintain income. The students are devastated that their rentals might be sold soon. He can’t be bothered trying to make it work, the rent increase would be obscene to cover the lost claim on interest expenses.

Hello kidder has some moral stance that doesn’t reflect reality, no one hoards property without providing that to the rental market. The law of unintended consequence is going to imo really bite this government intervention targeting providers of rentals.

[percy]

According to the latest Census data released by Statistics NZ, there were 1,855,929 dwellings throughout New Zealand in the 2018 Census, with 191,646 (10.3%) of them unoccupied. That was down slightly from the 10.6% of homes unoccupied in the 2013 Census.26/09/2019

[alokdhir]

Why the property investors think they were in it for providing rentals service to others ....they were in to make money ...now they need to find another way to make money ...simple as that .

Also they should not fool themselves in thinking if they decide to sell as it no longer makes business sense that renters will be coming on road .

Anyways I can understand the hurt its causing to them as they had got so used to this way of making money but I still firmly believe that Govt did the right thing

2023 will decide what majority of people think about this so called betrayal of property investor group !!!

[winner69]

According to the latest Census data released by Statistics NZ, there were 1,855,929 dwellings throughout New Zealand in the 2018 Census, with 191,646 (10.3%) of them unoccupied. That was down slightly from the 10.6% of homes unoccupied in the 2013 Census.26/09/2019

That’s an awful lot of unoccupied dwellings

[value_investor]

That’s an awful lot of unoccupied dwellings

Not surprised with the amount of "Lock up and leave" descriptions you see on some ads by real estate agents, its quite blatant. Vancouver has a empty housing tax which is due to double to 3% a year. Not sure how they administer it or how effective it is but it is interesting.

Kinda why I don't think the solution is as easy as increasing supply because net migration has run at its lowest level in years and building activity is at a high but nothing seems to be giving..

[artemis]

That’s an awful lot of unoccupied dwellings

A big number, but depends why they were recorded for the census as unoccupied. People talk about 'ghost houses' as if it would solve the so-called housing crisis if they were made available to renters (or buyers) rather than left empty to collect hassle free capital gains or something.

Stats Department reported that there are high numbers in holiday locations. Add in empty at census time for whatever reason, under reno, on the market for sale or rent..... I guess there will still be some ghost houses but one could hope that some actual numbers would be researched before panic policy.

I doubt very much that most of the 4000 households in motels etc would meet landlord criteria for these ghost houses.

[Norwest]

Meanwhile my former neighbours, have sold their house (which has had 8 owners in the 20 years since it was placed on the section) moved into yet another family home which they plan to slap a coat of paint on, fix a few minor issues, and hock as soon as possible without being captured by IRD. That's okay according to government policy. Serial housing monogamists are welcome here.

It's not OK according to government policy, It's tax evasion pure and simple if what you wrote is true.

Your neighbours are committing fraud by not filling in the capital gains in their annual IR3 tax returns.

[Carpenterjoe]

That’s an awful lot of unoccupied dwellings

I once read of a investor in Sydney who had circa 100 properties that are empty and he had no intentions of leasing them. He found the capital appreciation enough to leverage off and did not want the hassle tenants bring.

[Balance]

I once read of a investor in Sydney who had circa 100 properties that are empty and he had no intentions of leasing them. He found the capital appreciation enough to leverage off and did not want the hassle tenants bring.

My friend (a landlord) in Vancouver told me the same thing - thousands of properties owned by overseas investors left empty because they do not want the hassle of tenants.

[alokdhir]

It's not OK according to government policy, It's tax evasion pure and simple if what you wrote is true.

Your neighbours are committing fraud by not filling in the capital gains in their annual IR3 tax returns.

Its not as clear as u making it out to be ...as per tax rules there is no capital gains tax on your own residential home so technically they not breaking any tax law but morally maybe . No bright line or dim light test for residential house of personal use !!