Quote Originally Posted by beacon View Post
Yes, clear to the investors, but clear as mud to Government in power. have posted it elsewhere too, but here is an update:
listings in Waitakere since jan 09 up 27% now
listings in Waitakere since jan 09 up a whopping 52% now (M&D and small landlords)
listings in Manukau since jan 09 up 15% now
listings in Manukau since jan 09 up 30% now (M&D and small landlords)
So we have a big jump in listings, when the Govt regulates -

no depreciation offsets
no offsettings personal income tax losses.

Thats what my accountant reckons is going to happen.

Then property will fall by up to 24%, right or wrong ? As all marginal property investers dump, so lets do the sums.

A $300,000 loan on a rental, that returns $32O A WEEK. $16,640 Year income.

$21,000 interest bill, Rates $2000, Insurance $500, Repairs $1000, loss 0f rent $620. $25,000 outgoing.

A loss of $8,000 a year !!!!!!!!

Either rents need to go up and we know that will not happen.

Or the house price will fall to make it a viable investment.