Auckland rental property market - Aaaarrrgghhh!

[Ocean1]

Housing market is tanking except for main centres, especially auckland.

Yes. Good quality stuff at the mid-high range is still moving based on cashed up buyers. The rest is overpriced, vendors not prepared to accept the drop in value of their property.

Soultion: Export all the beneficiaries to Tokoroa.

Excellent idea.

[wysper]

$660 pw is $34320 pa. That would repay a $500000 mortage. So why would anyone rent at those prices?

Cos me with a young family can't seem to find 100k deposit.
Even though the I am told I am earning heaps, I can't even afford kiwisaver.
We are trimming our weekly shopping budget, we don't go out. We don't have holidays.

No spare money to start saving for a deposit. We are f*cked (at least in the looking to buy a home stakes). And there are many worse off than us.

[yachtie10]

Stranger, you're on the wrong site to be making so much sense, but yes, when I saw the initial news (and I don't own a property) I immediately thought, "Well, if I was a landlord and my costs went up, I'd put my prices up".

It beggars belief TPTB could not see this.

stranger make some sense but rental prices just like house perices are set by the market Landords can only put the price up if someone will (and can) pay it.
The tax changes are fairly irrelevant. also most landlords are not going to sell in a bad market unless they get a good price (assuming they dont have to sell)

[Brett]

For those struggling to get the cash together for the deposit, rent to buy options (by folk who are not complete sharks just looking to screw you over for profit) may be something to consider.

[Smifffy]

Housing market is tanking except for main centres, especially auckland. Aucklands main problem is excess demand / low supply for immigration, returning ex-pats, and organic growth.

Soultion: Export all the beneficiaries to Tokoroa.

Yeah we do have a few beneficiaries here already. Some of them even drive BMWs and clubsports. Export a few more here, and keep complaining about the price of rents, the traffic, the cost of houses, the lack of public transport, the new supercouncil, the RWC etc in the big smoke.

[Jantar]

You also need a 50k deposit, which is a bit of a hurdle at the best of times, also the banks don't like lending more than 1/3 of the gross income.

No deposit needed for a first home. http://www.welcomehomeloan.co.nz/

[Madness]

stranger make some sense but rental prices just like house perices are set by the market Landords can only put the price up if someone will (and can) pay it.
The tax changes are fairly irrelevant. also most landlords are not going to sell in a bad market unless they get a good price (assuming they dont have to sell)

It's not neccesarily the asking prices for decent rental properties making it hard to find a home. There seems to be a lot of examples currently where prospective tenants are bidding above the asking price for a rental simply to secure it over the masses of applicants. Demand has exceed supply for too long. That said, there have been a few properties we've seen that will allow our dogs, they're generally over $650 p/wk though, which we can't afford.

There also seems to be a high number of rentals listed that are on the market for sale and for rent only on periodic tenancy. If you're like us and keep having to move due to changes in the landlords circumstances every year or so, rather than our own then this isn't a very attractive proposition.

Still looking, fingers crossed for one in particular. If we get this one I might just have to run down the street naked to celebrate

No deposit needed for a first home. http://www.welcomehomeloan.co.nz/

We applied for a Welcome Home Loan two years ago and got it approved. We then found that for the $250,000 we had to play with we could only afford houses in suburbs such as Otara that weren't very nice. Call me a fucking snob but I'd rather rent thanks.

[The Stranger:Me]

stranger make some sense but rental prices just like house perices are set by the market Landords can only put the price up if someone will (and can) pay it.
The tax changes are fairly irrelevant. also most landlords are not going to sell in a bad market unless they get a good price (assuming they dont have to sell)

If there comes a time where an activity becomes too onerous or expensive or not profitable you don't stay doing it as is, you try and change something. The most likely outcome is to try and increase prices. Whilst on an individual basis this would be difficult, if everyone is doing that (the changes did affect everyone in the residential rental market) it effectively becomes as a monopoly.
Given accommodation is a necessity, it makes it rather difficult for the consumer to say nah, no thanks, I'll live under that bridge instead.

Not sure what exactly you are driving at re selling in a bad market, however who would enter a bad market? There are always those that will be exiting for one reason or another (myself) so you do need a stream of new entrants to balance that.

[retro asian]

Our rental went on the market, and the first person to view it placed an offer... with a baby arriving very soon, we decided to give our notice ASAP instead of getting the 6 weeks...as we'd rather move before the birth not straight after it.

Looking intensely over a week or so, we found a small apartment in the city... priced at over $50 more than we pay for our current place, and a big downgrade from where we have to move out of! However it was a great deal in comparison to most other options we saw.

Going to the viewing, it was quite disheartening to see ten groups of people also there, most desperate for somewhere to live. It was like a Mexican standoff while everyone stared each other down, waiting for the agent to come.

I listened in as someone asked her what the ideal requirements were for this place. She said the owner wanted a 12 month fixed contract, and someone who could move in immediately. Armed with this information and a well written sob story about how we were desperate to find a warm home for baby's arrival I submitted our application.

Amazingly the next day we were the top choice out of 8 applications!!

I really feel for everyone who's out there looking. Try asking the rental agent what the ideal candidate needs to bring to the table. Hope that helps!

[Madness]

Sorted. Should be signing tomorrow, hopefully for a 2 year fixed term. Moving from the far east to the far west and from a small village community to suburbia. Still, a nice house with a fenced section and an alarmed double gargre. It's not the one we were hoping for so I won't be cavorting in the nude to celebrate :

The house was listed thismorning and there were 10 families that had applied for it by 6pm. Thank christ they were all as poor as, or poorer than me

Thanks for the good wishes and support

[steve_t]

Sorted. Should be signing tomorrow, hopefully for a 2 year fixed term. Moving from the far east to the far west and from a small village community to suburbia. Still, a nice house with a fenced section and an alarmed double gargre. It's not the one we were hoping for so I won't be cavorting in the nude to celebrate :

The house was listed thismorning and there were 10 families that had applied for it by 6pm. Thank christ they were all as poor as, or poorer than me

Thanks for the good wishes and support

Sweet. Good luck with getting it. Hope you're getting a good rate. My floating rate just went down 0.5% today - about bloody frickin time cos the OCR went down ages ago