Discussion:
Well that did not take long
Add Reply
Gordon
2021-03-29 06:08:36 UTC
Reply
Permalink
It appears that the Government does now understand that rents may rise rapidally
after the tax deductions on interest costs come into affect. Only 6 days
later.

So they are threatening to hammer the landords if the rents spike. Now I do
wonder if it has occurred to them that this might increase the number of
rental properties sold thus lower the number in an already shortage. Result
people will not be able to get a place to rent to have a roof over their
heads.

It all started with greed and the desire to keep in power. Oh well let us
hope things do not get too bad.

Where the heck is the opposition? Plenty to feed on here.
Crash
2021-03-29 08:21:35 UTC
Reply
Permalink
Post by Gordon
It appears that the Government does now understand that rents may rise rapidally
after the tax deductions on interest costs come into affect. Only 6 days
later.
So they are threatening to hammer the landords if the rents spike. Now I do
wonder if it has occurred to them that this might increase the number of
rental properties sold thus lower the number in an already shortage. Result
people will not be able to get a place to rent to have a roof over their
heads.
You mean that tenants might get tipped out when a property is sold by
an investor to a first-home buyer? Whatever next?
Post by Gordon
It all started with greed and the desire to keep in power. Oh well let us
hope things do not get too bad.
Where the heck is the opposition? Plenty to feed on here.
National have no credibility on this - at least Labour is trying to do
something about the price of housing.


--
Crash McBash
JohnO
2021-03-29 23:19:21 UTC
Reply
Permalink
Post by Crash
Post by Gordon
It appears that the Government does now understand that rents may rise rapidally
after the tax deductions on interest costs come into affect. Only 6 days
later.
So they are threatening to hammer the landords if the rents spike. Now I do
wonder if it has occurred to them that this might increase the number of
rental properties sold thus lower the number in an already shortage. Result
people will not be able to get a place to rent to have a roof over their
heads.
You mean that tenants might get tipped out when a property is sold by
an investor to a first-home buyer? Whatever next?
Post by Gordon
It all started with greed and the desire to keep in power. Oh well let us
hope things do not get too bad.
Where the heck is the opposition? Plenty to feed on here.
National have no credibility on this - at least Labour is trying to do
something about the price of housing.
--
Crash McBash
JohnO
2021-03-29 23:23:41 UTC
Reply
Permalink
Post by Crash
Post by Gordon
It appears that the Government does now understand that rents may rise rapidally
after the tax deductions on interest costs come into affect. Only 6 days
later.
So they are threatening to hammer the landords if the rents spike. Now I do
wonder if it has occurred to them that this might increase the number of
rental properties sold thus lower the number in an already shortage. Result
people will not be able to get a place to rent to have a roof over their
heads.
You mean that tenants might get tipped out when a property is sold by
an investor to a first-home buyer? Whatever next?
Post by Gordon
It all started with greed and the desire to keep in power. Oh well let us
hope things do not get too bad.
Where the heck is the opposition? Plenty to feed on here.
National have no credibility on this - at least Labour is trying to do
something about the price of housing.
At least they are trying? Very generous there, Crash. It would be better if they didn't try as they are now making things worse for low income renters and evin mid income renters who are trying to save a house deposit. In addition, they are sending a broader signal that this government triggers ill considered policy on the hoof, without seeking expert advise and consulting widely first. This all leads to a loss of confidence in the structure of the economy and ensuing drop in activity.

National did basically nothing, which is the correct approach. Government meddling makes things worse as it is an artificial market signal that will always generate an equal and opposite signal somewhere. However they lack the knowledge and insight to consider where and what that might be.
Post by Crash
--
Crash McBash
Crash
2021-03-30 00:27:05 UTC
Reply
Permalink
Post by JohnO
Post by Crash
Post by Gordon
It appears that the Government does now understand that rents may rise rapidally
after the tax deductions on interest costs come into affect. Only 6 days
later.
So they are threatening to hammer the landords if the rents spike. Now I do
wonder if it has occurred to them that this might increase the number of
rental properties sold thus lower the number in an already shortage. Result
people will not be able to get a place to rent to have a roof over their
heads.
You mean that tenants might get tipped out when a property is sold by
an investor to a first-home buyer? Whatever next?
Post by Gordon
It all started with greed and the desire to keep in power. Oh well let us
hope things do not get too bad.
Where the heck is the opposition? Plenty to feed on here.
National have no credibility on this - at least Labour is trying to do
something about the price of housing.
At least they are trying? Very generous there, Crash. It would be better if they didn't try as they are now making things worse for low income renters and evin mid income renters who are trying to save a house deposit. In addition, they are sending a broader signal that this government triggers ill considered policy on the hoof, without seeking expert advise and consulting widely first. This all leads to a loss of confidence in the structure of the economy and ensuing drop in activity.
National did basically nothing, which is the correct approach. Government meddling makes things worse as it is an artificial market signal that will always generate an equal and opposite signal somewhere. However they lack the knowledge and insight to consider where and what that might be.
House price inflation does need government action to correct. National
have simply found this to be too hard and doing nothing has got us to
where we are today with no free market correction. There are
supply-side solutions that have not been tried because they are either
too hard or too slow to take effect (ie a decade or more of gradual
price correction).


--
Crash McBash
JohnO
2021-03-30 04:26:15 UTC
Reply
Permalink
Post by Crash
Post by JohnO
Post by Crash
Post by Gordon
It appears that the Government does now understand that rents may rise rapidally
after the tax deductions on interest costs come into affect. Only 6 days
later.
So they are threatening to hammer the landords if the rents spike. Now I do
wonder if it has occurred to them that this might increase the number of
rental properties sold thus lower the number in an already shortage. Result
people will not be able to get a place to rent to have a roof over their
heads.
You mean that tenants might get tipped out when a property is sold by
an investor to a first-home buyer? Whatever next?
Post by Gordon
It all started with greed and the desire to keep in power. Oh well let us
hope things do not get too bad.
Where the heck is the opposition? Plenty to feed on here.
National have no credibility on this - at least Labour is trying to do
something about the price of housing.
At least they are trying? Very generous there, Crash. It would be better if they didn't try as they are now making things worse for low income renters and evin mid income renters who are trying to save a house deposit. In addition, they are sending a broader signal that this government triggers ill considered policy on the hoof, without seeking expert advise and consulting widely first. This all leads to a loss of confidence in the structure of the economy and ensuing drop in activity.
National did basically nothing, which is the correct approach. Government meddling makes things worse as it is an artificial market signal that will always generate an equal and opposite signal somewhere. However they lack the knowledge and insight to consider where and what that might be.
House price inflation does need government action to correct. National
have simply found this to be too hard and doing nothing has got us to
where we are today with no free market correction. There are
supply-side solutions that have not been tried because they are either
too hard or too slow to take effect (ie a decade or more of gradual
price correction).
As I said, doing nothing was less damaging than doing some kneejerk reaction for the sake of appearance despite not understanding what you are doing - which is what is happening now.
Post by Crash
--
Crash McBash
BR
2021-03-30 04:39:06 UTC
Reply
Permalink
Post by Crash
National have no credibility on this - at least Labour is trying to do
something about the price of housing.
Doing nothing would be better that what the current government is
doing. However a good place to start for any government that wants to
fix the housing shortage would be to get rid of the RMA. Look at all
the money you have to pay council bureaucrats for RMA consent just to
buy permission to build a house. This represents a significant cost
and a substantial disincentive for investment in new housing stock.

In a third world country, you have to bribe an official to get things
done. In NZ you have to bribe an official to get things done. The only
difference is that in NZ it is legal.

Bill.
--
This email has been checked for viruses by AVG.
https://www.avg.com
Rich80105
2021-03-29 09:39:09 UTC
Reply
Permalink
Post by Gordon
It appears that the Government does now understand that rents may rise rapidally
after the tax deductions on interest costs come into affect. Only 6 days
later.
Where did you get that idea? Of course there are a lot of factors
affecting rents - but the effect of losing tax deduction for interest
costs will be less than the increase in income that landlords received
from the lowering of interest rates in recent years. If they dropped
rents then I guess tenants may feel that it would be fair to put them
back up a little. How much interest would a landlord be typically
paying for a standard say 2 bedroom house that they are renting,
Gordon - how much per week would be the cost of losing the tax
deduction?
Post by Gordon
So they are threatening to hammer the landords if the rents spike. Now I do
wonder if it has occurred to them that this might increase the number of
rental properties sold thus lower the number in an already shortage.
If they are sole they will be bought by someone who needs a house, or
another landlord. What is your problem with that? Do you want people
to be locked into ownership?
Post by Gordon
Result
people will not be able to get a place to rent to have a roof over their
heads.
There is no reduction in total housing - why would it be harder than
it already is?
Post by Gordon
It all started with greed and the desire to keep in power. Oh well let us
hope things do not get too bad.
It is easy to characterise landlords as being greedy, but most know
that to use every excuse to raise rents and never finding a reason to
lower rents , and frequent changes in rents are not things that make a
landlord popular with tenants. Yes landlords have a certain amount of
power over tenants, but ultimately most just want tenants that do not
wreck the place, do not cause trouble, and pay renton time.
Post by Gordon
Where the heck is the opposition? Plenty to feed on here.
Loading...