More Green's Bull Shi!

[whatsup]

So the Greens have announced that they will limit annual rent increases to 3% , it just shows you how much they understand about commercial life.
I doubt that even the reddest/maddest members of the Labour Party will vote for this as imo they are responsible for the staggering levels of inflation over the last few years and cannot expect landlords to foot the bill for that .

[JBmurc]

Price controls ...yeah that always works ... do these greens know any history of their commie mates...and what happen to those nations ?

[thegreatestben]

I'm already getting smashed for being a landlord and I'd like to think I'm one of the good ones. I've got nowhere to go for rent increases, already top of the market (brand new 3 beddies) and this would just be the water level rising even further above my head. This policy is lunancy for a multitude of reasons but for me the main thing is there's no regard for Landlord's who are already providing a high quality and necessary service.

[nztx]

The economics of even having Residential Rentals is already questionable with current
bank deposit rates being paid by the banks, before this crock of Green BS came along

6% offered by banks ; no Rental BS, No Tenancy BS , No moron Govt interference , no Dramas

Similarly with well placed equity investments - choose the right companies and imputation credits
mean tax paid by the company.

The right commercial investment with good tenancy mix - no raft of Residential BS attached

Interesting choices - a good number of RR investors will be going further backwards on Interest
non deductibility, mortgage interest hikes, no depreciation claims, spiralling Tenancy crap, rent
increase limitation garbage, dreamt up rental warrant of fitness (same idiot Green elves in another
lightbulb moment) .. as it is

The harder the Rent price inflicted on the tenants, the more likely the level of failure
and who wears those losses with even higher chances of low or no recovery ?

Who would want to be in the Residential Rental market now ?

Who at the grassroots paying end of things is ultimately going to be badly screwed over
courtesy of this moron political meddling ?

What is going to take for Politicians to wake up to the fact that their targeted audience
is not the wealthy cash rich target they thought and they instead are knifing the most
vulnerable, whilst only providing more incentive for those still in the market to invest
elsewhere on signs of deeper Govt plundering likely?

[blackcap]

The economics of even having Residential Rentals is already questionable with current
bank deposit rates being paid by the banks, before this crock of Green BS came along

6% offered by banks ; no Rental BS, No Tenancy BS , No moron Govt interference , no Dramas

Similarly with well placed equity investments - choose the right companies and imputation credits
mean tax paid by the company.

The right commercial investment with good tenancy mix - no raft of Residential BS attached

Interesting choices - a good number of RR investors will be going further backwards on Interest
non deductibility, no depreciation claims, Tenancy crap, rent increase garbage .. as it is

Who would want to be in the Residential Rental market now ?

Who at the grassroots paying end of things is ultimately going to be badly screwed over
courtesy of this moron political meddling ?

You list a good many reasons why we are looking at divesting our rentals. Have a few but the hassle and return, really is not worth it anymore. Time to sell.

[whatsup]

I'm already getting smashed for being a landlord and I'd like to think I'm one of the good ones. I've got nowhere to go for rent increases, already top of the market (brand new 3 beddies) and this would just be the water level rising even further above my head. This policy is lunancy for a multitude of reasons but for me the main thing is there's no regard for Landlord's who are already providing a high quality and necessary service.

Can you rent your property out for only 1 year , this way you stay in control ?

[dobby41]

Can you rent your property out for only 1 year , this way you stay in control ?

No - fixed terms automatically roll to periodic.
Besides the Greens rule means that new tenants only pay 3% (or whatever the rule (1% less than wage growth, inflation, 3% whichever is lower)) more than previous tenant.

I was in Porto a few years back (2019) and they had just come off rent price controls - a huge amount of backed-up maintenance underway.
Some places were a real mess as maintenance was dropped to make ends meet.
Not a good idea!

[thegreatestben]

It really is hard because I won't take any chances on tenants and I'm now very very selective about who I will offer any form of tenancy to. I will scope out people via facebook and linkedin etc to see if there's anything of concern before I even respond to them. Many of those who can afford top end of market rates are being supported by MSD, but you look at them and they've got gang member mates or heaps of photo's of pissups, smoking/vaping inside etc, no thanks.

At least if you have some options to deal with a problem you might give someone a chance, after doing that once I will never do it again. I always hoped the houses would be a good option for would be FHB's who are on their journey to owning their own home. Sadly I get pretty much zero enquiry from this group because they don't exist! They're either staying with family while they save or they've gone to AUS or UK/Europe.

[JBmurc]

My only Res rental I sold year after purchase .. and even though it was renting at 10% gross yield , lending rates were like 7%+ and after all the work the property needed and costs I was happy to take the Cap gain and move on ... recent years of course you had buying lining up for 4-6% gross returns ... all about Cap gain I guess .. still that hasn't been going well last year

I like Commercial Property in good location with higher yield - longer term fixed lease really only NZ property ...outside a holiday crib etc

[thegreatestben]

Yeah am going to see how the election goes, had them 1 year now. 5 year brightline, but that could come down under national/act, likely around the 2 year mark.

See what prices and interest rates do. Topping them up at the moment but don’t have any debt on personal home so it’s not all bad.