Real estate, post level 4

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wellygary

7384 posts

Uber Geek

#3157317 8-Nov-2023 16:10

mattwnz:

That is pretty common with professional degrees. I remember our uni class being told on my first day of a professional degree, that if we expect to make lots of money, then we should leave and head off down to the Law school.

Or, leave Uni altogether and go and become a plumbing/building apprentice...

- Well those were certainly the go to occupations for the past few years, - although YMMV in the coming construction slow down

Sharesies kids

Free kids accounts - trade shares and funds (NZ, US) with Sharesies (affiliate link).

tweake

1052 posts

Uber Geek

#3157325 8-Nov-2023 16:31

mattwnz:

MSM seem to have these articles queued up to be released every week or so. The common one is a young person still being able to buy a house. Then when you read the article, they are often using the bank of mum and dad in some way to buy it. The bank of mum and dad is one of the top lenders in NZ.

a recent story of 3 people buying house together, but they are not young. they where mid to late 30's. add in 30 year mortgage which is much the norm now, so odds are they will be still paying it off as they hit retirement. then they can start saving for retirement...... opps.

tweake

1052 posts

Uber Geek

#3157328 8-Nov-2023 16:40

kingdragonfly: Impossible to implement here, as it requires government eliminating "Not in my backyard" objections, housing building standards, zoning laws, ...

Speaking of zoning laws, Houston Texas doesn't have any, so you'll find lonley solitary skyscapers in the middle of residential areas, a read hard hazard for low flying aircraft. I imagine it causes grief for infrastructure, like sewage, parking and water also.

I doubt Christopher Luxon has the balls to make serious changes, beyond rearranging deck chairs on the Titanic, as it would involve a cultural shift.

Japan's Unconventional Solution to the Housing Crisis

Explained with Dom

interesting video.

some take aways from it, high density housing in existing areas, central govt doing the housing instead of councils, and the use of tax to help control the market.

we could do that here. higher density means you don't need the land and pay the few who own it huge amounts. govt running housing instead of councils gets around nimby issues, development "contributions" payments (the cost of which all goes onto housing) and local dealing/corruption. then of course tax.

mattwnz

19389 posts

Uber Geek

#3157349 8-Nov-2023 17:42

tweake:

kingdragonfly: Impossible to implement here, as it requires government eliminating "Not in my backyard" objections, housing building standards, zoning laws, ...

Speaking of zoning laws, Houston Texas doesn't have any, so you'll find lonley solitary skyscapers in the middle of residential areas, a read hard hazard for low flying aircraft. I imagine it causes grief for infrastructure, like sewage, parking and water also.

I doubt Christopher Luxon has the balls to make serious changes, beyond rearranging deck chairs on the Titanic, as it would involve a cultural shift.

Japan's Unconventional Solution to the Housing Crisis

Explained with Dom

interesting video.

some take aways from it, high density housing in existing areas, central govt doing the housing instead of councils, and the use of tax to help control the market.

we could do that here. higher density means you don't need the land and pay the few who own it huge amounts. govt running housing instead of councils gets around nimby issues, development "contributions" payments (the cost of which all goes onto housing) and local dealing/corruption. then of course tax.

Japan is quite a bit different to NZ. For example they can get 30 year mortgages and lock in interest rates for that full term, which I am sure many in NZ would love to be able to do. . I understand their insurance only covers 50% of the cost to replace a house if there is an earthquake, unlike in NZ which is normally an agreed value to the full price of the house. Also I understand that their houses are also not designed to last as long as NZs (50 year minimum life in NZ) , and looking at a new build in Japan, the components and materials weren't up to the quality of new NZ homes so look to be cheaper construction. Their developments also don't look great and the houses are usually quite a bit smaller, although they are also usually smaller people living in them. But having lived in Japan for a short period, many really hate living in the small living conditions as want to live in large houses like NZ has.

quickymart

11226 posts

Uber Geek

ID Verified

#3157354 8-Nov-2023 18:05

Yes my stepbrother lived in Japan while he was teaching English about 20-odd years ago and would send me pics of his tiny-as apartment. He was okay with it (he was single at the time) but I can imagine things like a fold-up bed might not be so great for a couple, or a couple with kids.

The locking-in interest rates for 30 years would be great (I think you can do this in the US as well) - everyone would just pick 2% or something, but I don't know why/if it could (or couldn't) be done here.

tweake

1052 posts

Uber Geek

#3157356 8-Nov-2023 18:21

quickymart:

The locking-in interest rates for 30 years would be great (I think you can do this in the US as well) - everyone would just pick 2% or something, but I don't know why/if it could (or couldn't) be done here.

except it would be 15% and no one would do it. there is no way a bank here is going to risk giving a low rate fixed for 30 years.

Handle9

9643 posts

Uber Geek

Trusted

Lifetime subscriber

#3157411 8-Nov-2023 18:56

quickymart:

The locking-in interest rates for 30 years would be great (I think you can do this in the US as well) - everyone would just pick 2% or something, but I don't know why/if it could (or couldn't) be done here.

30 year interest rates in the US are around 7.75% at the moment. The fixed interest market moves with the OCR.

The US market for long term fixed interest is facilitated by Freddie Mac and Fannie May, which are government owned. Around 2/3 of US mortagges are ultimately owned by the government.

The reason long term (10+ years) fixed interest loans aren't available here is the immature funding market. Banks lend money based on their funding, most of which is 1-2 year fixed interest from depositors (eg term deposits and savings accounts), the reserve bank or investors. They don't really take a margin risk,they just lend money based on what they can secure funding for.

mudguard

1726 posts

Uber Geek

#3157422 8-Nov-2023 20:16

tweake:

a recent story of 3 people buying house together, but they are not young. they where mid to late 30's. add in 30 year mortgage which is much the norm now, so odds are they will be still paying it off as they hit retirement. then they can start saving for retirement...... opps.

The banks also treat these kind of mortgages differently too. They were called Brady Bunch deals when I worked at one. There was an extra complexity level as you weren't dealing with a "normal" couple.

IE with perhaps a couple, you'd have to consider the odds of a child coming along and dropping to one income for a period of time.

With three separate people, the odds of the house staying in all three's possession is probably lower. Partners come and go, and will need buying out etc.

kingdragonfly

8806 posts

Uber Geek

Subscriber

#3169754 8-Dec-2023 13:54

Newshub: Wellington rental listing expecting paying tenant to moonlight as security guard torn apart online

A since-deleted Wellington rental listing on TradeMe has been called out for blurring the lines between tenancy and servitude.

The listing for the one-bedroom, $475-a-week dwelling above a storage facility says the ideal tenants would be a semi-retired couple or person.

Here's the catch though, tenants were expected to "undertake a role as Resident Custodian".

"This primarily involves keeping a 'watching eye' on the storage facility after hours."

The duties of the Resident Custodian are as follows:

"If you are away overnight, arrange for our security company to send security patrols to visit and check on the facility.

"Attending to any security alarms and take the necessary course of action. The facility is monitored by an off-site security company that dispatch security guards in the event of an alarm activation. This only occurs after hours. During office hours the staff attend to security issues and alarms.

"Walk the facility at the end of each day to check that everything is in order. Check doors, lift, office, outdoor areas.

"Any issues need to be reported to the Duty Staff next day both verbally and written. Also on a regular basis (usually weekly) meet with the store manager. "
...

tweake

1052 posts

Uber Geek

#3169819 8-Dec-2023 15:31

kingdragonfly: Newshub: Wellington rental listing expecting paying tenant to moonlight as security guard torn apart online

A since-deleted Wellington rental listing on TradeMe has been called out for blurring the lines between tenancy and servitude.

The listing for the one-bedroom, $475-a-week dwelling above a storage facility says the ideal tenants would be a semi-retired couple or person.

Here's the catch though, tenants were expected to "undertake a role as Resident Custodian".

"This primarily involves keeping a 'watching eye' on the storage facility after hours."

The duties of the Resident Custodian are as follows:

"If you are away overnight, arrange for our security company to send security patrols to visit and check on the facility.

"Attending to any security alarms and take the necessary course of action. The facility is monitored by an off-site security company that dispatch security guards in the event of an alarm activation. This only occurs after hours. During office hours the staff attend to security issues and alarms.

"Walk the facility at the end of each day to check that everything is in order. Check doors, lift, office, outdoor areas.

"Any issues need to be reported to the Duty Staff next day both verbally and written. Also on a regular basis (usually weekly) meet with the store manager. "
...

did they mention the need for a security guard license? also whats the ramifications if your away?

also i note the price of the rent. normal rent, lousy location and you have to do unpaid work. bargain of the century.

mattwnz

19389 posts

Uber Geek

#3169822 8-Dec-2023 15:57

Considering more and more people are now renting, NZ needs better laws to protect tenants with long term tenancies. They say no landlord will get rid of a good tenant, but they will if they can get a lot more and can still get a good tenant. But iMO we do also need better laws to protect landlords in terms of things like damage to properties and wear and tear etc. IMO we need purpose built rentals that exceeds the building code, and need to be kept up to a standard where they will continue to meet building code minimum standards in terms of insulation and heating. Too many old cold houses are used for rentals, when the previous government introduced a disincentive for many landlords to own these houses by removing interest deductibility on old houses, and an incentive to buy new homes to rent out. But that has been reversed under the current government, because they know that many landlords buy a property for the long term capital gain, which is mainly in the land, and as long as the rent covers most/all of the ongoing costs to own it, they are happy..

tweake

1052 posts

Uber Geek

#3169825 8-Dec-2023 16:22

mattwnz:

Considering more and more people are now renting, NZ needs better laws to protect tenants with long term tenancies. They say no landlord will get rid of a good tenant, but they will if they can get a lot more and can still get a good tenant. But iMO we do also need better laws to protect landlords in terms of things like damage to properties and wear and tear etc. IMO we need purpose built rentals that exceeds the building code, and need to be kept up to a standard where they will continue to meet building code minimum standards in terms of insulation and heating. Too many old cold houses are used for rentals, when the previous government introduced a disincentive for many landlords to own these houses by removing interest deductibility on old houses, and an incentive to buy new homes to rent out. But that has been reversed under the current government, because they know that many landlords buy a property for the long term capital gain, which is mainly in the land, and as long as the rent covers most/all of the ongoing costs to own it, they are happy..

the simple problem is kiwis do not do long term, they do not even do "normal term". kiwis turn over houses very very quickly. its become built into the culture. theres few long term tenants because there is few long term rentals.

the other issue is investors are overpaying. if they paid proper prices, no investor would have bought anything in the last 10-20 years.

talking of land value the local council here has just changed housing density rules, so you cannot subdivide as much. therefore you need more land for the same amount of houses which pushes land prices up.

cddt

659 posts

Ultimate Geek

#3169831 8-Dec-2023 17:09

tweake:

the other issue is investors are overpaying. if they paid proper prices, no investor would have bought anything in the last 10-20 years.

That's because they are not investors, they are speculators.

kingdragonfly

8806 posts

Uber Geek

Subscriber

#3169833 8-Dec-2023 17:27

tweake: i note the price of the rent. normal rent, lousy location and you have to do unpaid work. bargain of the century.

I'd agree. That landlord at Kiwi Self storage Kilbirnie was looking for a slave, not a tenant. You'd be hard pressed to get any closer to the Wellington airport runway. A superior apartment nearby was $100/week more, but would be substantially quieter.

tweake

1052 posts

Uber Geek

#3169834 8-Dec-2023 17:28

cddt:

tweake:

the other issue is investors are overpaying. if they paid proper prices, no investor would have bought anything in the last 10-20 years.

That's because they are not investors, they are speculators.

they are one and the same to most people, the irony of that is all home owners are also investors/speculators.

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