Good news Stories

[fungus pudding]

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.

How long does a carpet last? A kitchen? Bathroom? General decor, e.g curtains, paint and paper - fencing? The maintenance over a rreasonable period of ownership adds up, or the place becomes quite run down. Plumbing and electrical work are expensive, and work you do yourself is worth money - at least half your normal hourly wage. No dwelling is bomb proof and a damn sight less so when occupied by tenants.

[The GrandMaster]

+ How much do you value your own time?

[fungus pudding]

+ How much do you value your own time?

I'm not sure who you are addressing that question to, but most res. landlords don't value their time at all.

[Arbitrage]

I do through an opportunity cost approach. Either stay at home and do the crossword or nip round to the renter and paint the lounge.

[fungus pudding]

I do through an opportunity cost approach. Either stay at home and do the crossword or nip round to the renter and paint the lounge.

So how much could you earn as a casual painter or similar hanyman work, to put the opportunity into dollar terms?

[beacon]

I'm not sure who you are addressing that question to, but most res. landlords don't value their time at all.

Second that fungus

[Dr_Who]

If the global equities market continues its downtrend, it will have an impact on the property market.

[upside_umop]

Thats a very general statement doctor. You should elaborate more...dont want people thinking your god now do we?

I agree, asset correlations turn towards one during a crisis (if this turns out to be full blown credit crisis again). I do think the property market will be more affected by the budget, compared to whats happening in the money markets right now.

[Dr_Who]

UU... From experience of having been through a number of market corrections and crashes, I can tell you the NZ property is not immune to overseas market weaknesses. NZ being a grain of rice on the world stage and reliant on foreign capital and investments is very much controlled by overseas events. When the world coughs we get the cold. I am not saying the NZ property will come down. What I am saying is that IF the global market continues to fall with Aust and China tightening, there will be weakness in the NZ property market.

[beacon]

And yet BNZ wants OCR hiked. Intentions will be intentions, sometimes forever postponed. NZ economy is small and easily impacted by offshore events. Further, Budget 10 and Banks' credit criterion seem to have already done enough of Bollard's work. Hope Bollard sees through these vociforous yet stupid demands for hiking OCR, and acts more sensibly than Glen...