King’s storm in coffee cup

April 30, 2007

News — Tags: , — admin

Andrew-KingAt 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…)

Housing crisis: Experts’ tip – don’t hope for too much

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…)


Picking a property manager

April 27, 2007

Finding good tenants is tricky enough, but choosing a property manager to do it for you also has risks, reports Penny Harding.

For some property investors, the hassles of finding tenants, chasing debts and organising maintenance are just not worth it. But hiring a property manager may not mean the end of trouble.

Property managers typically charge a fee of 7.5% – 8.5% of rental income and in return they will handle the messy details such as checking tenant references, inventories and dealing with tenant demands. (more…)

House prices leave rents behind

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…)

Average wage can’t buy Otara house

April 25, 2007

The average house in Otara, Auckland’s poorest suburb, is now just out of reach of someone on the national average wage.

Calculations for the Herald by Mortgage Brokers Association chairman Geoff Bawden show it would take $49,000 a year to service a $234,000, 30-year mortgage at current interest rates on the median-priced house sold in Otara last month – $259,000. (more…)


Don’t buy coffee and cars if you want a house

April 24, 2007

Articles — Tags: , — admin

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…)

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