Good news Stories

[duncan macgregor]

Where are the builders? Fixing leaky homes, thats where!

I never built a leaky home ever. Refused to do so even ridiculed by building inspectors as a silly old bastard that should move with the times. Its not the builders fault who got talked into building spanish type crap, on wooden frames which is the ultimate sin. Timber must breathe and stay dry. Create a thermos wall where the air pressure cant equalize and it will suck water even uphill. No builder can build to stop that happening. Blame the stupid bastards that insisted we do it, or be like me who warned all and sundry before it happened and face the ridicule. Today the rules make it so expensive with over the top regulations by the same silly buggers that landed you lot in this mess that the young people are forced to live in garages. Any self respecting builder would leave the country and work in Australia where they still build good quality cheap homes that are affordable. Macdunk

[miner]

The way we used to build if done right was fine and still would be,the problem started on paper when some idiot drew up a no eves flat roof internal gutter stucco piece of sh*t(um it rains in new zealand) and then another idiot in council passed the plans.

All the houses I or mates built the old way have never leaked a drop,know an older builder who turned down a job when he looked at the plans as could see would leak like a flax kit,owners didn't like it got another builder and sure enough it leaked,cost nearly the same to fix leaks as it did to build it.

The same idiots that past the plans have now dreamed up all the mental sh*t you have to do now,when all they had to do was go back to how we used to do it,but that would be way to easy.

Not in the game anymore but mate who is was saying that if you don't want to use the **** brittle spec 4by2 stud timber and say want to use H3 it has to be 4by3,how they work that one out I will never know,there are now lots of things they are shaking there heads at.

Cheers
Miner

[Arbitrage]

Good news story: Just got tenants for a two bedroom apartment in fringe of central auckland. 800 hits on trademe in a week. Rent up 5%
Heard of another one bedder having 50 people queued up on the weekend for a rental open home.
However, talking to an agent this morning landlords advertising high cost rentals are struggling to lease them.

[fungus pudding]

Good news story: Just got tenants for a two bedroom apartment in fringe of central auckland. 800 hits on trademe in a week. Rent up 5%
Heard of another one bedder having 50 people queued up on the weekend for a rental open home.
However, talking to an agent this morning landlords advertising high cost rentals are struggling to lease them.

So why is that particularly good news? How long have you owned the property? What is the rent, and what was the cost price? What unbudgeted expenses have there been? In other words - how much profit are you making? I've heard residential landlords claiming 'good news' before because they have managed to increase the rent, but it often means they are simply losing less than they were. Enlighten me.

[neopoleII]

somehow i cant see NZ property prices staying high....... even with the massive amount of social welfare money propping it up via WFF and housing suppliments etc....... to the tune of $250 mill in govt borrowing per week.
this paragraph.......
"Spain's economic problems are illustrated by developers being left with vast numbers of unsold properties, and tens of thousands of construction workers being unemployed." ..... http://www.nzherald.co.nz/property/n...ectid=10643895
is a sign, along with Greece's problems affecting the massive debt burden Europe still has.
and most of it is tied to the massive property speculation bubble that it experienced.
sooner or later the NZ govt will have to face the facts, as also those involved in property.
it wont be a steep drop like some media folk have commented, but it will be a long downward slide....... or wages will have a long upward climb.
house prices compared to wages, NZ is very very expensive......... will we go the same way as Europe?
or will kiwis keep on borrowing beyond their means until they crumble under their debt burden.
then we have the how many billion dollar leaky home fiasco to get though as well.

[Arbitrage]

So why is that particularly good news? How long have you owned the property? What is the rent, and what was the cost price? What unbudgeted expenses have there been? In other words - how much profit are you making? I've heard residential landlords claiming 'good news' before because they have managed to increase the rent, but it often means they are simply losing less than they were. Enlighten me.

Property purchased a little over ten years ago with no deposit but secured against other self managed investment properties. Its valuation has doubed over that period. Rent has also doubled in that time and it is cashflow positive. Part of a long term property investment portfolio where capital profits will not be realised for another 10 years, meanwhile it will continue to pay for itself, with a little left over.

[fungus pudding]

Property purchased a little over ten years ago with no deposit but secured against other self managed investment properties. Its valuation has doubed over that period. Rent has also doubled in that time and it is cashflow positive. Part of a long term property investment portfolio where capital profits will not be realised for another 10 years, meanwhile it will continue to pay for itself, with a little left over.

So with the rent doubled it's now showing a small profit, which means that for much of that ten years it would have shown a loss. What are accumulated losses over that ten year period, and how much deferred maintenance is there? Just trying to compare the real returns in Auckland compared to the Sth. Island.

[duncan macgregor]

So why is that particularly good news? How long have you owned the property? What is the rent, and what was the cost price? What unbudgeted expenses have there been? In other words - how much profit are you making? I've heard residential landlords claiming 'good news' before because they have managed to increase the rent, but it often means they are simply losing less than they were. Enlighten me.

Fungas my old mate the price of the property increases at a higher percentage level than the loan cost. What does it matter its time owned you should ask about. The people who cant work that out are the losers. Macdunk

[fungus pudding]

Fungas my old mate the price of the property increases at a higher percentage level than the loan cost.

There's no golden rule that says so. Don't worry - I've owned far more residential stuff than anyone should want to, and did very very nicely, and certainly hope others do too. But at the moment prices are so far out of whack that nothing I can see makes it all stack up, which points to more than a decade of flat or even falling prices. And once again, no mention of the biggest cost - maintenance, or repairs and refurbishment.

[Arbitrage]

I am not sure why you are so focussed on maintenance costs. The properties I invest in are "brick and tile" ie usually bomb proof. Like Duncan (I presume), I do most of the repairs myself. This year maintenance has cost $46.27 which includes a new shower curtain and a bit of deck timber to patch. Occasionally there are higher costs like a hot water cylinder but the (soon to be stopped??) depreciation usually covers these.