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"Lockdown 'final straw' for worried property investors"
https://www.stuff.co.nz/life-style/h...erty-investors
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 Originally Posted by kiora
Right. So one of two things might happen. The landlords who are desperate to quit their rentals will either sell to another investor or, if they can't attract a buyer, will have to meet the market of prospective owner-occupiers who can't afford today's prices. Either way, the properties don't disappear. Is there a third possibility?
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Originally Posted by macduffy
Right. So one of two things might happen. The landlords who are desperate to quit their rentals will either sell to another investor or, if they can't attract a buyer, will have to meet the market of prospective owner-occupiers who can't afford today's prices. Either way, the properties don't disappear. Is there a third possibility?
Not all property investors will want to exit the sector. Even for those that do they may choose to wait and see how supply and demand works out. Tourism will be a problem area for a good while, tertiary education will bounce back early. Net migration - anyone's guess.
A third possibility is leave the rental vacant or lower the rent for the time being, carrying forward rental losses until the market changes.
And property investors who were looking to build new or buy existing for rentals now won't if the numbers don't stack up. That will impact apartment developments and reduce private rental supply, though the government might buy them for social housing, as demand will continue to rocket up.
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Originally Posted by kiora
As we already know only too well, State intervention in a business environment never ends well.
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