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KiwasiGames
286 points
·
4 days ago
As a former landlord, I can’t really disagree. I paid for occasional repairs and maintenance. Trimmed the trees once a year. Paid rates. And that’s about it.

For my troubles I ended up earning a significant amount of money when the place sold. I didn’t really do anything for it. I just happened to be wealthy enough to get the process started. I literally got paid just for being rich.

Interestingly I made the decision to get out of property investment because of various laws coming into play that increased my costs. These were generally good laws that raised the standards for renters.

The government has the levers to pull to stop a landlord being so profitable. Low profitability will drive investors out. They just need the guts to pull them.

level 2
notarobot1020
64 points
·
4 days ago
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edited 4 days ago
Agree focus on reducing landlord incentives. Problem is majority of people who are investing in property are in it expecting returns based on speculative gains only, the rent is not their main goal, the big payoff for them is the capital gains. This is what needs to be ended to weed out the real landlords from the speculative investors.

And it’s the speculative gains that’s inflating the market. End of the day the government has to be more aggressive to take the heat out of the market and I believe measures against investors is the best option because they only add fuel to the fire in the meantime- force them to build only new dwellings etc do what it takes the swing the pendulum towards home ownership for owner occupied instead.

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level 2
bigsum
16 points
·
4 days ago
The government has the levers to pull to stop a landlord being so profitable. Low profitability will drive investors out. They just need the guts to pull them.

They won't though. Jacinda had every opportunity to do this in her last term, and despite campaigning on reducing house prices she (and the rest of them) know it'd be political suicide. The problem NZ has is everyone is so obsessed with property that it now funds a disproportionate amount of retirements, so I can't really blame her (although she shouldn't lie and campaign on it).

When I left NZ to move to the US, it amazed me how different the attitude to housing is here. People eventually want to buy a house to live in, but it's not seen as an investment per se. Most people look towards their 401k's and Roth IRA's for that. While everyone I know in NZ who is slightly motivated by money is constantly looking to buy investment properties. I honestly think it's as much of a cultural problem as it is demand/supply economics.

 

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Exactly so many people do not want to buy and carry on renting because they think prices will fall they do not see it as a home but as a financial investment.

I'm not sure if I follow you 100% there but I'm guessing you're reffering to HPC types who sell to rent, or rent long term waiting to buy? If so I think most of them are doing it because they see housing as massively overvalued atm (myself included) and would rather wait for them to crash. 

Why you've put them in the "see it as a home but as a financial investment" group I don't understand? I think they/we just don't want to pay massively high/stupid prices.

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I'm not sure if I follow you 100% there but I'm guessing you're reffering to HPC types who sell to rent, or rent long term waiting to buy? If so I think most of them are doing it because they see housing as massively overvalued atm (myself included) and would rather wait for them to crash. 

HC no offence meant but I think it is fine to decide not to buy for any reason. 

What I object to is those who go into a fit of rage whenever anyone here says they are going to buy or rant about people who bought a house and saw the value increase.  My point is is that it is a home not a financial investment so personally I could not care less if the so called value of my house goes up or down.  If it goes up where I move to if/when I do will have gone up ditto if prices fall.

To me where I live is a home and a haven for me and my family I do not care if what it may sell for goes up or down.

If anyone does not wish to buy as they feel house prices are too high that is their prerogative no problem. I think that there have been people who have been waiting for that huge fall for a decade or more.  If they had bought then they would be 40% thought the term of their mortgage and would not have given  LL money for all that time. 

But each to their own - no problem.

All the best you you.  

 

 

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What I object to is those who go into a fit of rage whenever anyone here says they are going to buy or rant about people who bought a house and saw the value increase. 

Totally agree,

I am also saddened at the amount of glee felt by some people here when someone, who has done nothing wrong (other than buying a house) ends up in hardship.

The people who set up and maintain the distorted system must be absolutely laughing all the way to the bank with their millions spilling out of their pockets when they hear that the people who are having difficulty buying a house are shifting the blame from those that set up the machine and have the real power to fix it, onto homeowners, estate agents etc who participate in the system but have no real way control the way it works.

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