so you win Lotto, want a good beach house...
check this. But you will want a cleaner. 900 m 2. The house, not the section.
I cant seem to succeed to add a hyper link here, you will need to cut & paste this: http://www.propertypress.co.nz/video.house/931
Call me if you win tomorrow. Ratable Value $ 2.7 million
Thursday, April 15, 2010
I agree with the bank man
Tony Alexander of the bnz ( no its not the BNZ, they have marketing people so its the bnz,) has always done well in commenting & predicting, in my opinion. I say that allowing that the economist Galbraith once said at a party " astrology was invented to make economics look good"
Tony said today, & I agree "In the housing market there is some evidence – based on Auckland data – that worries about tax changes have stalled turnover but prices are holding up and listings are not escalating madly.'
Rocky times for rental property, I predict
Tony said today, & I agree "In the housing market there is some evidence – based on Auckland data – that worries about tax changes have stalled turnover but prices are holding up and listings are not escalating madly.'
Rocky times for rental property, I predict
What about the Tenants?
Personally I think tax changes to Residential real estate investment could be a disaster about to unfold...for tenants
I dont say that because I sell Real Estate..
this is why.
There is a general agreement rents will have to go up if landlording is made less profitable. Its as as simple as that.
For every tenant there needs to be a landlord. NZ owner occupier property ownership has been only slightly declining.
( claims the owner occupier percentage was falling were rebuffed when it was pointed out properties going to family trusts were going in statistics as a change to investment vs "owner occupier")
No, many people who have never owned a house , but could buy a house rent because....they are going overseas soon.
As Ive said before, playing with property is an easy one for the government. But its the lack of profitability in the economy thats the problem.
If the government make being a landlord less atractive...who will tenants rent from?
If yields have to be higher, values have to be lower. How does a loss of capital of say 20 % help redirect investment? It dosnt make other options suddenly more profitable...just reduces wealth. I cant see sellers of investment property putting it in the bank, or buying NZ shares. It will go overseas.
And the question I can not even begin to answer:
Who will the 30% of New Zealanders who rent ( & remember, only 3 % of NZ tenants live in state owned rental houses) have as landlords, if the government make it less attractive to own rental property?
I dont say that because I sell Real Estate..
this is why.
There is a general agreement rents will have to go up if landlording is made less profitable. Its as as simple as that.
For every tenant there needs to be a landlord. NZ owner occupier property ownership has been only slightly declining.
( claims the owner occupier percentage was falling were rebuffed when it was pointed out properties going to family trusts were going in statistics as a change to investment vs "owner occupier")
No, many people who have never owned a house , but could buy a house rent because....they are going overseas soon.
As Ive said before, playing with property is an easy one for the government. But its the lack of profitability in the economy thats the problem.
If the government make being a landlord less atractive...who will tenants rent from?
If yields have to be higher, values have to be lower. How does a loss of capital of say 20 % help redirect investment? It dosnt make other options suddenly more profitable...just reduces wealth. I cant see sellers of investment property putting it in the bank, or buying NZ shares. It will go overseas.
And the question I can not even begin to answer:
Who will the 30% of New Zealanders who rent ( & remember, only 3 % of NZ tenants live in state owned rental houses) have as landlords, if the government make it less attractive to own rental property?
Changes are Gonna Come
No denying now, that tax changes on owning Investment Residential Real Estate in New Zealand are in the short term, not going to be for the better....for anyone.
Actually thats not true: What do you think of this scenario?
Being a landlord becomes less attractive ( I assume you know what the budget will do, if not a few "comments" here & I will explain.)
The worst properties get dumped on the market. I can tell you, in Wellington these really are very good location, very bad condition 100 year old houses.
Prices fall.
who buys them? Young first owners wont get funding. & they are high income hard workers...not the old Kiwi "do up a house instead of have a life shopping in Sydney" The buyers with money wond buy dumps. Some of this investment stock really is in terrible condition.
Da Da Da Da!..... Return of the Doer Upper, flick on, make a buck, hard worker!
Actually thats not true: What do you think of this scenario?
Being a landlord becomes less attractive ( I assume you know what the budget will do, if not a few "comments" here & I will explain.)
The worst properties get dumped on the market. I can tell you, in Wellington these really are very good location, very bad condition 100 year old houses.
Prices fall.
who buys them? Young first owners wont get funding. & they are high income hard workers...not the old Kiwi "do up a house instead of have a life shopping in Sydney" The buyers with money wond buy dumps. Some of this investment stock really is in terrible condition.
Da Da Da Da!..... Return of the Doer Upper, flick on, make a buck, hard worker!
Sunday, March 28, 2010
Wellingtons Multi Million Dollar Market Motors Up.
In the very recent past: Wakefield st Apartment in high $1 million area. Chaffers Penthouse in the $3 m range. Roseneath Property well over $5 million.
Bodes well for the 900 m2 home I will market after Easter.
Bodes well for the 900 m2 home I will market after Easter.
Saturday, March 6, 2010
New Zealands Problem isnt the Property Market
Property isn't the cause of New Zealands' problems...its everything else!
I'm delaying the series I will do on proposed taxes on Property, so Kiwis invest in "more productive" things.
I've decided that there is something more important to discuss first.
Property isn't the problem here in New Zealand, its the poor state of the profitability other "asset classes".
Security for investors is still pathetic in the share market. It is a global sharemarket joke.
Put it in the bank or finance house? Another joke. If you dont lose i, by the time they tax 6% returns, you are going backwards.
Stories I heard over the the last 5 years here in Wellington were that the Labour government were advised bluntly and repeatedly that finance companies were a disaster unfolding. They did nothing.
I deal with the sad , tragic stories of those that lost their savings from that inaction by Labour on pathetic banking regulation. Many that lost their savings to finance company were lesser educated, older people...I suggest Labours own constituency.
It was probably hard for Labour ministers to hear the advice that a disaster was unfolding when thy were in the back of $250 000 BMW's.
I think its a disgrace those "socialist" ministers chose not to veto those gross, ugly, obcemly expensive BMW pigs. They should have bought something to set a good role model to their "subjects " like a hybrid Lexus at half the price. Its hardly better than politicians driving round in V 8 Fords while negotiating the Kyoto accord. Just like Lord of the Flies to me.
I digress. We live by exporting...but nobody is getting rich doing it. So who would?
Look at "our" billionaires or very rich: are they exporters? Fay & Richwhite, Gibbs, Giltrap, Jones , Hart, Watson, Morgan, Tindall... sorry, no. Not a one. A country reliant on primary production and not a really rich exporter. That says it all.
No, a high flying exporter in New Zealand is... is .... is someone about to fall a long way. Or be bought by their main client. I cant recommend being an exporter
.
Even the fairly well off economic commentator Gareth Morgan agreed recently in the Listener, more or less that "exporting is for idiots".
So what is the failure in New Zealands performance? Thanks Peter, a respondent to these blogs, for a blunt summary of why we are in trouble & exporters have to be fools to do it :The exchange rate disaster.
NZ has the 77th biggest currency in the world...but is the 13th most "traded." Making money betting against the " Kiwi" has been described as "like shooting rats in a barrel."
Our currency is the worlds traders' plaything. Because of our simplistic rules on monetary policy. We are often told how "admired" the Reserve Bank rules are. However no successful currency seems stupid enough to copy them as we do it.
So, whether you agree with me or not. If you took money out of the New Zealand property market... firstly: WHO DO YOU IMAGINE WILL BUY THAT PROPERTY OFF YOU?
That is, if a good number of Kiwis decide, that they take their money out of property & put it somewhere more "useful"...who do they sell to?
For the 35% of New Zealanders who have a landlord....who becomes their landlord if its "not a place we want Kiwis to have their money tied up"?
Secondly: WHERE WOULD YOU PUT THE MONEY?
NZ shares?
NZ Banks or finance companies?
NZ debentures?
Direct investment in small to medium NZ business?
Global shares?
Global Debentures?
Foreign property?
Foreign Banks?
Well I don't think a lot of that investment would stay in NZ. If the Government wont even leave 20% of the Kiwisaver money here, why should you?
Sorry for talking about the Emperors clothes, but this is my opinion.
Comments please!
I'm delaying the series I will do on proposed taxes on Property, so Kiwis invest in "more productive" things.
I've decided that there is something more important to discuss first.
Property isn't the problem here in New Zealand, its the poor state of the profitability other "asset classes".
Security for investors is still pathetic in the share market. It is a global sharemarket joke.
Put it in the bank or finance house? Another joke. If you dont lose i, by the time they tax 6% returns, you are going backwards.
Stories I heard over the the last 5 years here in Wellington were that the Labour government were advised bluntly and repeatedly that finance companies were a disaster unfolding. They did nothing.
I deal with the sad , tragic stories of those that lost their savings from that inaction by Labour on pathetic banking regulation. Many that lost their savings to finance company were lesser educated, older people...I suggest Labours own constituency.
It was probably hard for Labour ministers to hear the advice that a disaster was unfolding when thy were in the back of $250 000 BMW's.
I think its a disgrace those "socialist" ministers chose not to veto those gross, ugly, obcemly expensive BMW pigs. They should have bought something to set a good role model to their "subjects " like a hybrid Lexus at half the price. Its hardly better than politicians driving round in V 8 Fords while negotiating the Kyoto accord. Just like Lord of the Flies to me.
I digress. We live by exporting...but nobody is getting rich doing it. So who would?
Look at "our" billionaires or very rich: are they exporters? Fay & Richwhite, Gibbs, Giltrap, Jones , Hart, Watson, Morgan, Tindall... sorry, no. Not a one. A country reliant on primary production and not a really rich exporter. That says it all.
No, a high flying exporter in New Zealand is... is .... is someone about to fall a long way. Or be bought by their main client. I cant recommend being an exporter
.
Even the fairly well off economic commentator Gareth Morgan agreed recently in the Listener, more or less that "exporting is for idiots".
So what is the failure in New Zealands performance? Thanks Peter, a respondent to these blogs, for a blunt summary of why we are in trouble & exporters have to be fools to do it :The exchange rate disaster.
NZ has the 77th biggest currency in the world...but is the 13th most "traded." Making money betting against the " Kiwi" has been described as "like shooting rats in a barrel."
Our currency is the worlds traders' plaything. Because of our simplistic rules on monetary policy. We are often told how "admired" the Reserve Bank rules are. However no successful currency seems stupid enough to copy them as we do it.
So, whether you agree with me or not. If you took money out of the New Zealand property market... firstly: WHO DO YOU IMAGINE WILL BUY THAT PROPERTY OFF YOU?
That is, if a good number of Kiwis decide, that they take their money out of property & put it somewhere more "useful"...who do they sell to?
For the 35% of New Zealanders who have a landlord....who becomes their landlord if its "not a place we want Kiwis to have their money tied up"?
Secondly: WHERE WOULD YOU PUT THE MONEY?
NZ shares?
NZ Banks or finance companies?
NZ debentures?
Direct investment in small to medium NZ business?
Global shares?
Global Debentures?
Foreign property?
Foreign Banks?
Well I don't think a lot of that investment would stay in NZ. If the Government wont even leave 20% of the Kiwisaver money here, why should you?
Sorry for talking about the Emperors clothes, but this is my opinion.
Comments please!
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