Building Minister Shane Jones says he is close to getting official advice on a system that could let tenants stay in rented houses when the landlord changes.
He told a seminar in Waitakere yesterday that the new system, which he signalled in March, could allow a tenant to lease a rented home for nine, 15 or 21 years, as in the United States.
The lease would continue even if the property changed hands during the term of the lease. Read the rest of this entry »
From the NZ Herald
Three articles on home ownership this week put the blame for rising house prices on property investors. However, there is a considerable amount of misinformation and misunderstanding that has led the writers to their conclusions.
Before assigning blame we need to ask two questions. Are property investors really to blame and if they are, would the capital gains tax on rental property help the situation? Read the rest of this entry »
With hundreds of emails being posted on the Herald website, it seems that my comment on coffee and cars has created quite a stir and considerable debate. Four short sentences, but a week later and the phone still hasn’t stopped ringing.
I seemed to have polarised the community. Many replies have said that it can’t be done and that I’m a hypocritical baby boomer who is out of touch with generation X’ers. However many people have agreed with me and it was pleasing to see that Herald reporter Simon Collins checked my figures and confirmed my belief in an article he wrote.
To clarify, my comments were not a criticism of generation X’ers. I was trying to point out that it has ALWAYS been difficult to obtain your first property and that it takes time and a bit of sacrifice to achieve it. In addition, I was not trying to suggest that everyone can own their own home or that everyone should. It’s your choice how you lead your life and your life will evolve based on the choices you make. Renting provides great value and allows you to live in accommodation that would cost a lot more if you owned it yourself. Read the rest of this entry »
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An article in this weeks issue of the Sunday Star Times look at an increasing trend for first home buyers to put off their buying decision. Affordability issues and a generally accepted view that house prices are unlikely to grow at the same rate as the last few years will see this trend gain momentum. The gap between the cost of owning a home and renting it is also very wide, making renting a property even more popular.
When property prices started to increase at a marked rate, many first home buyers jumped in to catch the wave. Many more wanted to but didn’t have a sufficient deposit. In their desire to get hold of their own property, many looked to reducing costs in order to accelerate their savings. As accommodation make up a large proportion of overall living costs, savings on rental payments were seen as an obvious choice.
Couples who where previously in a two bedroom flat may have moved to a one bedroom flat or perhaps taken in a border for the spare room. People living on their own may have turned to flatting in order to share costs, while others took extreme action and moved back home to Mum and Dad. While this was a situation they would be happy with for six months maybe a year while they saved a deposit, it is not their ideal living choice.
As first home buyers put off their purchase decision they are likely to reassess their current living situation. (Perhaps Mum and Dad might reassess it for them). As this situation continues to occur, there will be an increase in demand for rental property.
With rental yields at all time lows and costs such as mortgage interest rates, Council rates and maintenance, plus reductions in depreciation allowances, there are also cost pressures on rental prices to rise.
With a combination of demand pull and cost push inflation, it is only a matter of time before rental prices start to increase.
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