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  1. #11
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    Quote Originally Posted by Bjauck View Post
    I don't know the specifics of the insulation requirements. However I am all for First World well-insulated homes for all in NZ. It would also help reduce the public cost of health treatment for many childhood illnesses amongst other benefits.
    Being renter myself, I can tell you the insulation requirements are just a big joke. Only floor and ceiling has to be insulated and that only in case it's actually accessible to be insulated. In my situation the insulation is a 3cm styrofoam with about 0.5cm gaps in between the tiles. You can imagine this kind of insulation does exactly nothing to keep the house warm. This was approved as okay by 2 different insulation companies...

    Coming from Europe I can tell you all the houses have floor/roof/walls full on insulation with probably 10cm+ rockwool airtight insulation. NZ houses are generally garbage quality and this is one of the reasons I decided not to invest into property. Other reasons are the quality of renters is pretty poor, Auckland properties are overpriced and government obviously guns for property investors.

  2. #12
    ShareTrader Legend Beagle's Avatar
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    Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
    Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine

  3. #13
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    Quote Originally Posted by Bjauck View Post
    I guess tradie businesses don't make the Kiwi dream of owner-occupier home ownership unaffordable for so many families? It is more of a political hot potato perhaps.

    Perhaps some rental owners always have a high percentage mortgage so that that their rental properties seldom turn a net profit, whilst racking up leveraged capital gains? Maybe the ring fencing is aiming at that scenario.
    The mortgage is irrelevant. It's the interest on the borrowings that are deductible. e.g. You can borrow on your own property and own a rental mortgage free, but still deduct the interest paid to calculate profit.

  4. #14
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    Quote Originally Posted by fungus pudding View Post
    The mortgage is irrelevant. It's the interest on the borrowings that are deductible. e.g. You can borrow on your own property and own a rental mortgage free, but still deduct the interest paid to calculate profit.
    Well of course if you borrow on your other assets to purchase another property then the size of the financing mortgage is still relevant. The size of the mortgage/loan is relevant. A bigger mortgage means a larger amount of interest chargeable thereon becomes deductible.

    Either way, it helps inflate the property market.

  5. #15
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    Quote Originally Posted by peetter View Post
    Being renter myself, I can tell you the insulation requirements are just a big joke. Only floor and ceiling has to be insulated and that only in case it's actually accessible to be insulated. In my situation the insulation is a 3cm styrofoam with about 0.5cm gaps in between the tiles. You can imagine this kind of insulation does exactly nothing to keep the house warm. This was approved as okay by 2 different insulation companies...

    Coming from Europe I can tell you all the houses have floor/roof/walls full on insulation with probably 10cm+ rockwool airtight insulation. NZ houses are generally garbage quality and this is one of the reasons I decided not to invest into property. Other reasons are the quality of renters is pretty poor, Auckland properties are overpriced and government obviously guns for property investors.
    Traditionally the Goal for Kiwis is to own property as it is the best way to invest your money and get a secure abode for your family.

    In the 1990's I was in Ireland for a while and the fairly average terrace I lived in was so much warmer and drier in the Colder and damp Winter than the (reasonably upmarket and supposedly-insulated mid-1970's) house my parents owned was in Auckland's milder and damp Winter.

    Maybe the original insulation standards were developed back in the day when UK houses were actually damper and colder and NZ's milder climate made the houses seem warmer in comparison. I wonder if the North Island had a colder climate whether the NZ insulation requirements would be more exacting. Maybe if Aucklanders had to shiver for longer in Winter, standards would be tougher?
    Last edited by Bjauck; 19-11-2019 at 03:14 PM.

  6. #16
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    probably over half the people in NZ live somewhere where it doesnt really get that cold ever.

    I never wanted to be a landlord. You are only going to make good income if you deal with the tenants yourself, and do many of the maintenance fixes yourself. Ugh, on both counts. For me. (N.B. I'm not dissing property ownership)
    But it does only become passive income when you farm it out to RE management company - and they take a good chunk. Which means a larger portfolio is necessary to sustain income.

    Still most or many (I reckon) landlords are in it for capital gains which is why NZ tenants get a raw deal coz there is a lot of turnover by the landlords to cash up.

  7. #17
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    Quote Originally Posted by peat View Post
    probably over half the people in NZ live somewhere where it doesnt really get that cold ever. ...
    Even though outside temperatures are colder in Winter in the UK and Ireland, people tend to have good Winter clothing. 95% of houses have central heating in the UK.

    How many people in NZ get home from work and feel cold and damp as they wait for their heaters to warm up their poorly insulated houses?

  8. #18
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    40 years ago I moved from Auckland to Canada to live at the age of 25. I quickly realised how sub standard our housing was comfort wise back in NZ. Having grown up with it I never new any better. I put it down to the fact that unfortunately Auckland was not quite cold enough for the need to do anything about it. Climates like Canada
    had no alternative from the beginning to deal with cold climate.

  9. #19
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    Quote Originally Posted by Bjauck View Post
    ....
    Perhaps some rental owners always have a high percentage mortgage so that that their rental properties seldom turn a net profit, whilst racking up leveraged capital gains? Maybe the ring fencing is aiming at that scenario.
    No idea what the ring fencing policy is aimed at, apart from jam today for government coffers and not tomorrow.

    But if the reason is as you suggest this government doesn't have a clue about how some assets work. Surprised, not surprised.

    There will be a few grumpy people after next April when they find that selling their one rental means their rental losses for the year have gone poof!

  10. #20
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    Quote Originally Posted by Bjauck View Post
    .....How many people in NZ get home from work and feel cold and damp as they wait for their heaters to warm up their poorly insulated houses?
    Most of those people will be homeowners so can choose to do something about it. Maybe pay 8 bucks or so for a plug in timer?

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