October 19, 2008
The following article was initiated by the Andrew King newsletter, Prime Indicators. If you want to subscribe to this newsletter, see the sign-on section at the top of this website.
Tenants still have the upper hand in the rental market, and real estate agents are urging clients to inject their properties with the wow factor, or drop the rent if they want to fill them quickly.
Andrew King, vice-president of the New Zealand Property Investors’ Federation, says it’s common to experience a flood of rental listings during the slump phase of the property cycle.
“In a slow market, tenants have a high degree of choice and often face nervous landlords who may be willing to reduce rents just to secure a tenant,” he says. (more…)
September 5, 2008
Landlords have developed their own set of rules, barring them from renting dirty places, telling lies or making racist remarks to tenants.
The national landlord membership and lobby group, the Property Investors Federation, has released a guide which it wants members to show to tenants.
Federation vice-president Andrew King said most members were already following the code. (more…)
July 22, 2008
Buying a house is now almost two and a half times as expensive as renting, according to figures to be presented at a seminar today.
Property Investors Federation vice-president Andrew King says a 25-year mortgage for 90 per cent of the cost of the country’s median-priced house, worth $345,000 last month, would currently cost a new home-buyer $745 a week, including rates, maintenance, insurance and an allowance for other costs.
By contrast, the national median rent last month was only $305 a week. (more…)
May 11, 2008
Poor investments and over-borrowing could force more property investors to sell this year, causing property prices to dive, says Andrew King, vice-president of the Property Investors’ Federation.
This adds to the grim outlook portrayed in property mortgage insurer PMI’s mid-year report, released on Thursday, and Quotable Value’s monthly report, which is out tomorrow. (more…)
May 18, 2007
Property speculators who are reaping millions of dollars from the super-heated housing market are about to feel the heat from a tough new tax crackdown.
Finance Minister Michael Cullen said Inland Revenue would get an extra $14.6 million over the next three years to strengthen property transaction audits. Speculative activity was driving up house prices and household debt levels, he said. So giving IRD more money would help it enforce the law. (more…)
May 4, 2007
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?
When considering misinformation, Tapu Misa made an excellent point when she discussed “those investment seminars … the kind that promise to show you how to make lots of money by using the equity in your home to buy a rental property”. (more…)
April 30, 2007
At least he practices what he preaches.
The property investor who caused controversy last week by telling people they should stop buying coffees and cars and going overseas on holiday doesn’t buy coffee himself and owns a $15,000 car he bought two years ago.
New Zealand Property Investors Federation president Andrew King said his only real extravagance was a five-week holiday to Malaysia and Thailand with his family.
But he did admit to cracking now and then. His initial response was “none” when asked if he had any coffees. But when pushed he came back with, “Well, I have the occasional one.” (more…)
What’s the answer for Aucklanders trapped in the affordability squeeze?
Property experts say those facing a lifetime of renting must change their ideas if they want to get on the housing ladder.
DTZ’s Ian Mitchell, who worked on the two Centre for Housing reports issued on Monday, said Aucklanders simply had to change their expectations.
“In Sydney or Melbourne, if you wanted a three-bedroom house on a section close to where you work, you’d know you would have to compromise and buy a unit or apartment instead,” Mr Mitchell said. (more…)
April 26, 2007
Average rents have risen faster than wages in the past five years and are tipped to jump further in the next two years as the rental market catches up with Auckland’s soaring house prices.
Property Investors Association vice-president Andrew King predicted yesterday that Auckland rents could leap 20 per cent in the next two years. (more…)
April 24, 2007
A leading property investor has questioned why people on above-average wages cannot afford to buy a home after a report predicted dramatically falling home-ownership rates.
Property Investors Federation vice-president Andrew King said people on $70,000 a year had to look at their other spending – on things like coffee and cars – if they thought they could not afford a house. (more…)