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  1. #81
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    Quote Originally Posted by dobby41 View Post
    The new rules aren't that hard to comply with - just do it.
    You might be correct in relation to some of the new rules, provided the tenants are pretty good and the owner has funds available to upgrade, often many thousands. Of course it is the tenants paying for the upgrades through rent increases, and landlords will be terminating risky tenants while they can. Same as other businesses.

    One of the first new rules brought in 3 years ago was banning letting fees paid by tenants to property managers. What then happened is that property managers charged owners and put the rent up to recoup the fee. Who'd have thunk it?

  2. #82
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    Quote Originally Posted by Cricketfan View Post
    Yeah was thinking of a rental. The new rules do sound quite involved, and I guess the risk of non-compliance is still very real even if using a property manager. Still, the way the prices are going at the moment, other investors don't seem to mind taking on those risks. I'll probably leave my cash alone though
    The number of investors borrowing each month is not far off the average for the last few years, and will decrease when LVRs are back next year, going by the spike this year post lockdown and post LVRs.

  3. #83
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    Quote Originally Posted by artemis View Post
    One of the first new rules brought in 3 years ago was banning letting fees paid by tenants to property managers. What then happened is that property managers charged owners and put the rent up to recoup the fee. Who'd have thunk it?
    The landlords are in a better position to challenge the PMs on their fees than the tenants were.
    The PMs came up with several different approaches on how to charge LLs - from just charge a flat fee per new let to increase the management fee to cover (one I had worked out that they worked on an average 2 year turnover).
    Where that fee is on-charged is up to the market and the rent is not cost-plus but rather 'what the market will bear'.

  4. #84
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    Quote Originally Posted by Cricketfan View Post
    It's been a while since this was discussed. What are people's thoughts now that we've gone through an election and Covid? If you had $200-300k cash, the same amount in shares, 15+ years from retirement, would you consider using some of that cash as a deposit on a property in Auckland?
    You'll probably have to use all that cash for a deposit for a half decent place and I don't bother with apartments you won't get the capital gains like you will on land.

    Quote Originally Posted by dobby41 View Post
    The new rules aren't that hard to comply with - just do it.
    Yep, exactly, I just increase the rent for each of these new rules that cost me, the tenants always end up paying for it... its a business for me not a hobby.

  5. #85
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    Quote Originally Posted by dobby41 View Post
    ....Where that fee is on-charged is up to the market and the rent is not cost-plus but rather 'what the market will bear'.
    For the time being the market is coping with record rent increases in many locations. Trademe's monthly rental price index does show West Coast rents falling. Other areas not so much, and that is in a very low interest environment.

  6. #86
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    Quote Originally Posted by artemis View Post
    For the time being the market is coping with record rent increases in many locations. Trademe's monthly rental price index does show West Coast rents falling. Other areas not so much, and that is in a very low interest environment.
    Exactly - West Coast falling though their costs haven't changed (or have gone up).
    That's how the market works.

  7. #87
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    Quote Originally Posted by dobby41 View Post
    Exactly - West Coast falling though their costs haven't changed (or have gone up).
    That's how the market works.
    So what happens next when rentals start reporting a rental loss that cannot be offset against other income so is being funded from tax paid income. Umm, it's the market working so options are considered by the asset owner. Because they can.

  8. #88
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    Quote Originally Posted by artemis View Post
    So what happens next when rentals start reporting a rental loss that cannot be offset against other income so is being funded from tax paid income. Umm, it's the market working so options are considered by the asset owner. Because they can.
    Owners have the option of selling if it becomes unprofitable to let it. Because they can. And if enough landlords choose that option the rental prices will rise. Because they can.

  9. #89
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    Quote Originally Posted by Cricketfan View Post
    Yeah was thinking of a rental. The new rules do sound quite involved, and I guess the risk of non-compliance is still very real even if using a property manager. Still, the way the prices are going at the moment, other investors don't seem to mind taking on those risks. I'll probably leave my cash alone though
    Yep - people have worked it out that gains on housing prices go tax free and the NZ gov't won't address housing inequality (affordability - or whatever people call it).

    New rental rules means, newer houses will fetch for higher prices while old dumps will go un-tenantable or will incur costly renovations.

  10. #90
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    Quote Originally Posted by SBQ View Post
    Yep - people have worked it out that gains on housing prices go tax free and the NZ gov't won't address housing inequality (affordability - or whatever people call it).

    New rental rules means, newer houses will fetch for higher prices while old dumps will go un-tenantable or will incur costly renovations.
    Gains may be tax free, and losses are not deductable.
    Last edited by fungus pudding; 23-11-2020 at 05:27 PM.

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