NZ 1st homebuyers are ScReWeD...

[minimoke]

5.90% at bank direct for 5 years is amazing

Back up to 6.2%.

[lakedaemonian]

Back up to 6.2%.

that was quick!

[Arbitrage]

I tend to agree with Shrewdy on renting to students. Sure they are willing to live near the uni, but i know that up here in auckland they vacate in mid November which is the worst time for finding new tenants. Unless you can get a premium during the rest of the year to cover this, you can lose rent for 2-3 months per year.
Better to buy closer to a hospital (ie nurses and doctors) or on the periphery of city centres where professionals like to have a bit of space but a short commute.

[upside_umop]

All student flats in Christchurch are on one year leases, thats the deal when you sign up. So generally, when the year finishes, your still getting rent and have an empty house (a lot go home over summer).

I believe its the same in Dunedin.

[Crypto Crude]

hey arby,
yeah... The flat I moved out of in November is still untenanted...
Over this period the only way to get tenants is to drop rental rates...
Students move out at the end of the year... find a cheap place for two months... then start looking again in FEB...

Its all about supply and demand...
Canty Uni has also built a heap of new apartments flooding the market further...
not a good market... Even if it is marginal now, market conditions will change in years to come...
and who wants to muck around with students...

.^sc

[upside_umop]

Sounds like you had a sweet deal shrewdy, your landlord cant have been very shrewd himself though!

Its relatively standard to get a lease with 12 months around university...all the property manangers go with that too.

The ilam village extension is at relatively high rates - $150 per week and regulations on gatherings, its more for international attractions. I dont know of any of my mates who have been or are going there.

[Arbitrage]

Upside, your concern that the new flats in Ilam have a "regulation on gatherings" has ominous undertones. As a landlord, it sounds to me like another reason for not having students as tenants. Burning couches on the front lawn at 2am can lead to some problematic maintenance issues as well as difficulties with the neighbours.

Also, trying to track down tenants that skip 3 months short of the 12 month tenancy is not easy, let alone extracting the money, despite a 4 week bond. Believe me.

[upside_umop]

I see what your saying arbitrage, gathering dont sound 'good.' But it is part of student life, and it will happen at any place that you demand a high rent, as they will only be filled in a room by room basis thus parties will happen. Try and get a decent return with a family in a house...its not going to happen. Philippino's on a room by room basis then? Then you've got hassles of filling individual rooms.

I know there are downsides to student rentals, but as a student myself, I believe I know 'our' kind reasonably well. Also being younger, I'm willing to put up with a bit of the hassle, as I know there will be the occasional bit of it. As for no rent...I'm sure there will be the occasional missed payment, but I'm sick of being stereotyped as that kind. When your a landlord there are provisions you can make to avoid unnecessary pain. You demand references, parental names and address's, regular check ups, show that you are serious, give tenants respect - you will get respect....

Also, I'd be willing to bet that a universal student allowance will eventuate <10 years. Students are virtually recession proof...it would be interesting to see a rent inflation chart of student areas.

[Dr_Who]

You youngsters out there, have you been doing your ground level research by going around to open homes?

I ve noticed an increase in investors and home buyers sniffing around again. This is a sure sign of interested buyers looking back into the market.

[lakedaemonian]

You youngsters out there, have you been doing your ground level research by going around to open homes?

I ve noticed an increase in investors and home buyers sniffing around again. This is a sure sign of interested buyers looking back into the market.

I'd agree there has been an uptick in interest.

But I don't think there will a proportional uptick in sales........anecdotally there seems to be an increasing awareness that this current situation we are facing is not just a run of the mill recession.