Who'd want to be a landlord now ?

[iceman]

I thought I would be pretty safe putting my own kids into our downstairs flat.
Each of them made a big mess it in their own ways. I feel better though because damage / unpaid rent was in the very low 4 figures on both occasions.
What I have seen many times from my clients is the single worst business strategy you can engage in is let your rental property out to your own kids.
I have seen repairs and maintenance bills for several clients running well into five figures.
The fact that the transaction is not an arms length business one, in a nutshell, they think they are entitled to get away with almost anything.
If there's drugs involved, look out, you're really in trouble then and how do you put them out into the street and still sleep at night ?

I second that. Never again

[Beagle]

I second that. Never again

The "icing on the cake" was we only ever charged them half the market rate for the flat, (seems the decent thing to do for your own kids to help them get ahead) and they just squandered the money on other "essentials" like cigarettes', booze and drugs and when they moved out left the place like a rubbish dump. I never once heard a single word of appreciation for the very cheap rent but do recall quite a bit of attitude that we were charging them anything at all !

[couta1]

The "icing on the cake" was we only ever charged them half the market rate for the flat, (seems the decent thing to do for your own kids to help them get ahead) and they just squandered the money on other "essentials" like cigarettes', booze and drugs and when they moved out left the place like a rubbish dump. I never once heard a single word of appreciation for the very cheap rent but do recall quite a bit of attitude that we were charging them anything at all !

The entitled/no responsibility/want it and want it now/laden with debt generation, I'm hearing ya.

[Bjauck]

The entitled/no responsibility/want it and want it now/laden with debt generation, I'm hearing ya.

Yep a burgeoning climate crisis, student debt, mortgage debt (if they can afford to get on the ladder), ridiculously high deposits for pokey flats...they do have it tough. It looks like they will be saddled with mortgages even in retirement....unless they have a landowning family that has not disinherited them!

[JBmurc]

Yep a burgeoning climate crisis, student debt, mortgage debt (if they can afford to get on the ladder), ridiculously high deposits for pokey flats...they do have it tough. It looks like they will be saddled with mortgages even in retirement....unless they have a landowning family that has not disinherited them!

Yes think we will continue to see a widening gap between the well-off and the struggling poor as costs to live continue to rise (Carbon taxes = higher energy costs etc)
the ones with family wealth(debt free property ??) will pass it on to the kids giving them a huge Capital jump on peers with next to nil inheritance ...

I know our two kids will do very well from us as we will get sizeable inheritance in time ---prob when we are in are 60's-70s and are kids will be only be in their 20's
just the way it's working out for many children from the baby boomers that also had their children much later in life 30's+ Vs 20's etc..

[peetter]

Yep a burgeoning climate crisis, student debt, mortgage debt (if they can afford to get on the ladder), ridiculously high deposits for pokey flats...they do have it tough. It looks like they will be saddled with mortgages even in retirement....unless they have a landowning family that has not disinherited them!

This is not true. I am part of the generation you are talking about and all I see around myself are people who are unwilling to work hard, cut unnecessary expenses and sacrifice their comfort.

It is really easy in NZ to save for deposit, but you actually do have to be smart about it. If you choose either trade or STEM uni, you will have no problems getting well paid job. On 50k, I was able to save 20k a year, now that my salary increased, I didn't increase my expenses and therefore save even more. In 10 years, I'll have enough to retire if I want to.

On the other hand I see my colleagues with same or higher salaries actually live paycheck to paycheck due to stupid decisions like having 10 different netflix type subscriptions, drinking every weekend and buying new phones every 1-2 years. Not to mention using uber-eats and uber on regular basis. Ohh and cars...

[JBmurc]

This is not true. I am part of the generation you are talking about and all I see around myself are people who are unwilling to work hard, cut unnecessary expenses and sacrifice their comfort.

It is really easy in NZ to save for deposit, but you actually do have to be smart about it. If you choose either trade or STEM uni, you will have no problems getting well paid job. On 50k, I was able to save 20k a year, now that my salary increased, I didn't increase my expenses and therefore save even more. In 10 years, I'll have enough to retire if I want to.

On the other hand I see my colleagues with same or higher salaries actually live paycheck to paycheck due to stupid decisions like having 10 different netflix type subscriptions, drinking every weekend and buying new phones every 1-2 years. Not to mention using uber-eats and uber on regular basis. Ohh and cars...

Wow great for you being able to live on $21,700 a year or $471pw .and be able to save retire and continue to live at these levels is quite a feat ... but I guess if you eat and house yourself cheap(campervan/Flat ? at home with the parents) and generally live very basically it would be well achievable

[fungus pudding]

Wow great for you being able to live on $21,700 a year or $471pw .and be able to save retire and continue to live at these levels is quite a feat ... but I guess if you eat and house yourself cheap(campervan/Flat ? at home with the parents) and generally live very basically it would be well achievable

https://www.forbes.com/sites/jackkel.../#12a35cbc6c4b

[peetter]

Wow great for you being able to live on $21,700 a year or $471pw .and be able to save retire and continue to live at these levels is quite a feat ... but I guess if you eat and house yourself cheap(campervan/Flat ? at home with the parents) and generally live very basically it would be well achievable

I do flat, yes. I cook pretty complex meals with mostly free range or organic food, have occasional drinks out with friends, go to gym, go to movies etc. I'd not call it living basically, more like not living wastefully.

I do come from post-soviet country, so I understand what it is growing up poor. I am also thankful my parents were able to teach me how to take care of myself.

[fungus pudding]

The "icing on the cake" was we only ever charged them half the market rate for the flat, (seems the decent thing to do for your own kids to help them get ahead) and they just squandered the money on other "essentials" like cigarettes', booze and drugs and when they moved out left the place like a rubbish dump. I never once heard a single word of appreciation for the very cheap rent but do recall quite a bit of attitude that we were charging them anything at all !

Did you manage to claim interest paid as an expense?