Property costs in NZ - the heart of evil

[Delerium]

Bit full of yourself me thinks. Why would I give a shit about your student loan?
SO what is this job that makes you have SO much more responsibility that I will every have?

If you care that little for those that have come before you than you are a right selfish arse.
Where did you learn? All paid for by those that have come before you?

You bought up the point of something for nothing. Er, wrong, I paid back my debts, ergo not something for nothing. Did I hit a nerve there? Good.

[Delerium]

Responsibility is for dumb fucks that arent far enough up the ladder to dump it onto someone else, its the income that counts.

Doing well there too, but its the other perks of the job im more interested. Thanks for your input though.

[Delerium]

Bit of truth in that... There seems to be a thought amongst some that living like the middle class on minimum wage is actually possible, or even their right...

Agree, Part of the current difficulty now is that in the main centres at least, rent is now getting more expensive than mortgage repayments which really hinders getting a deposit. So many people have resigned to the fact that they wont own their own home have decided to buy the toys instead.

[BoristheBiter]

You bought up the point of something for nothing. Er, wrong, I paid back my debts, ergo not something for nothing. Did I hit a nerve there? Good.

You still never answered the question.

[neels]

rent is now getting more expensive than mortgage repayments which really hinders getting a deposit.

So how is it that landlords are claiming the tax losses from their rental properties that everyone seems to love complaining about?

If you crunch the numbers on average it's cheaper by about 2% to rent a house than to own it, and the real irony is that if rents go up or house prices come down it becomes more viable to own rental property not less.

[sidecar bob]

So how is it that landlords are claiming the tax losses from their rental properties that everyone seems to love complaining about?

If you crunch the numbers on average it's cheaper by about 2% to rent a house than to own it, and the real irony is that if rents go up or house prices come down it becomes more viable to own rental property not less.

But the main difference between renters & home owners/ landlords, is that the home owners have gambled more than their life savings in the hope of a better future, whereas the renters wont take the risk of buying, prefering to whinge that the home buyers made so much money of property speculation, that they can no longer afford to buy a home.
Remember, not everybody makes money off buying & selling houses. Ask the people that bought leaky apartments.

[sidecar bob]

Doing well there too, but its the other perks of the job im more interested. Thanks for your input though.

What, free burgers at the end of the shift??

[Flip]

And because people like you have used the housing market to make as much money as possible most can't afford to buy their first home due to over inflated house prices.

Yes I have invested wisely and made a good return on my money, its simply supply and demand. I have other investments in primary industry which are now making good returns. I have never invested in finance companies as I simply don't like not being in control of my assets.

Personally I believe the price of houses is about right here, and that rents are too cheap. We are entering a period where rents are going to climb steeply for the next few years. So I expect shortly to be making a even better return from my rental income, keep in mind that over the last 10 years the LAQC has artificially kept rental prices low and the gains landlords have made have been from capital growth. Once rents go up there will be even more demand on entry level properties being purchased by landlords.

I am not and have never been a member of the "I wan't" generation, I am a member of the "I have what you need" one.

[Flip]

So how is it that landlords are claiming the tax losses from their rental properties that everyone seems to love complaining about?

If you crunch the numbers on average it's cheaper by about 2% to rent a house than to own it, and the real irony is that if rents go up or house prices come down it becomes more viable to own rental property not less.

Every other business can clain losses against income so why can't landlords?

There is a real shortage of good rental properties at the moment and I don't see this changing for at least 20 years. The LAQC status was introduced when their was no rentals available and the govt didnt have the money to make new state houses. This is happening again, demand is going up, rents are going up and availability is going down. This will drive the price of entry level homes up.

The National goverment has payed the "greedy rich landlord" card and all it is really going to end up hurting is the working class renters and first home buyers. The minority of negatively geared ma and pa landlords, by now, would have sold off their rental properties. Probably reducing the supply by 10-15% which should put the rental prices up by the same margin. Factor in also the changes to LAQC which will also put up rental prices by the same ammount. I do expect without any adjustments for inflation that the real rental prices to go up from 20-30%.

Sucks to not own a home, but now is the time IMHO!

[BoristheBiter]

Yes I have invested wisely and made a good return on my money, its simply supply and demand. I have other investments in primary industry which are now making good returns. I have never invested in finance companies as I simply don't like not being in control of my assets.

Personally I believe the price of houses is about right here, and that rents are too cheap. We are entering a period where rents are going to climb steeply for the next few years. So I expect shortly to be making a even better return from my rental income, keep in mind that over the last 10 years the LAQC has artificially kept rental prices low and the gains landlords have made have been from capital growth. Once rents go up there will be even more demand on entry level properties being purchased by landlords.

I am not and have never been a member of the "I wan't" generation, I am a member of the "I have what you need" one.

I just hope you have it all locked up in a trust so when you get means tested you are covered as when Labour get back in they will put on CGT.

You only think house prices are just right because you don't have to start from scratch in this market.
Yes you are correct it is supply and demand, doesn't make it right and it has been led by greed.

[scumdog]

when Labour get back in

With a bit of luck that may not happen soon...

[Flip]

I just hope you have it all locked up in a trust so when you get means tested you are covered as when Labour get back in they will put on CGT.

You only think house prices are just right because you don't have to start from scratch in this market.
Yes you are correct it is supply and demand, doesn't make it right and it has been led by greed.

When I brought my first house, I was a newby engineer and it cost me 3.7 years income. I don't know about Auckland butb that seems about right for down here at the moment.

The issue as I see it is young folk wanting a good middle class home on a bad working class income. They don't deserve it and haven't earnt it. It just does not add up in the long term. Just buy the worst house in the best street you can afford and fix it up. Thats all you have to do, it's QED. Now is the time.

[Delerium]

When I brought my first house, I was a newby engineer and it cost me 3.7 years income. I don't know about Auckland butb that seems about right for down here at the moment.

The issue as I see it is young folk wanting a good middle class home on a bad working class income. They don't deserve it and haven't earnt it. It just does not add up in the long term. Just buy the worst house in the best street you can afford and fix it up. Thats all you have to do, it's QED. Now is the time.

Its more than that. Home purchase price is now 8.6 times the average wage. Thats worse than london. Income to house price ratio is on the piss in a big way. Buying further from your work just puts the amount you save into transport and time cost.

[Flip]

Its more than that. Home purchase price is now 8.6 times the average wage. Thats worse than london. Income to house price ratio is on the piss in a big way. Buying further from your work just puts the amount you save into transport and time cost.

Don't like these stats because there have been some big ticket houses sold to rich immigrants with zero income.

How much would you pay for a entry level home in Ak?

[BoristheBiter]

Don't like these stats because there have been some big ticket houses sold to rich immigrants with zero income.

How much would you pay for a entry level home in Ak?

It is around 400K, but it is more a case of where you can afford to live as that price will get you a place in one of the worst suburbs.

I have a cheap house in an expensive area but it was a case of right place right time. (and a good deposit)
The down side is it takes me 45-60 min to get to work.