@reathua9 Yes, there are signs that rents will be flat or even falling for a while. Especially if the rush of delayed OEs and emigration comes to pass.
@reathua9 Agreed, especially those investors using equity and interest only loans, adding nothing, just taking already established homes from families, often turning them into airbnbs.
Same. We were buying when my wife was pregnant. Constantly getting outbid by these parasites was so disheartening.
They had a huge advantage - they didn't have to worry about builder's reports because they didn't give a shit if the place leaked. It was only the serfs that would have to deal with it.
@reathua9 What’s wrong with the that? Where do people who don’t have a mortgage deposit i.e. first home buyers saving for that deposit or people renting with friends because that’s their lifestyle, or are more transient and prefer to rent than own?
@reathua9 The point is that rentals are needed by the private sector (property investors) to supplement the large number of people who cannot afford a house
@reathua9 Well yeah, my tenant is from overseas and isn’t a resident and doesn’t have a deposit for a mortgage. Should I kick him and his family out so I can sell my rental to a first home buyer and he has to go find another rental?
@mariefromtexas Pretty much everybody knows how much majority of the LOs care about their tenants, the condition of the rental property etc. I had to go to Tenancy Tribunal to get my deposit from a shitty LO who even didn’t return my calls/texts. In your imaginary world where LOs are the provider of healthy accomodation, your statements might make sense, but not in the real world dude.
@andro Low interest rates caused the boom and RBNZ aggressively hiking the rates caused the bubble to burst. Nobody could have known this in advance /s
An extra 100K or so expats returning home during covid and then leaving again once covid was "over", another obvious factor
@bi6lethump Thats true about the rates but as for not knowing, there was an RBNZ paper out early 2020 that laid out that asset prices would rise with the monetary policy and mortgage backed funding for lending programs, low interest rates and removal of LVRs.... they knew but they just didn't care.
It was one thing to throw every non home owner in NZ under the bus but now they are throwing recent home buyers under the bus now too. Hopefully they implement a DTI of 4 or 5 so this future mess won't happen again or if it does would be much more limited.
@andro If asset inflation throws non home owners under the bus, asset correction doesn't leave them there. Those who didn't buy houses are in an increasingly good position, as prices correct. The people being hurt are those that bought during the spike. Everybody else feels temporary discomfort.
If RBNZ knew this would happen (according to you), they also knew they would eventually raise rates, when circumstances required it. Far from what you're saying, your citations suggest they knew the short- and medium-term effects, and chose what they thought would cause the least overall pain.
Whether or not that's right is another matter. But if they knew what would happen back in 2020, then they likely also knew what would happen when they put rates up.
