Landlords aren't really taking great risks and working hard. Falling interest rates, chronic under-building, rapid population growth, huge tax breaks and a state guarantee make it an easy, sure thing
Hi Geoff. It's true landlords can't charge GST and therefore offset GST paid against it. My point is that income from wages is taxed 'twice' via income tax and then GST when it is spent. Landlords don't pay capital gains tax in any unrealised or regular way, and not currently at all if they sell after five years. Only taxed 'once' when they spend. Although the surplus can also be recycled into more property untaxed, rather than spent.
And yes I am a landlord and rent out the house we used to live before we moved into the CBD to live in an apartment. I have decided to 'join 'em, if I can't beat 'em'. cheers
Bernard Hickey produced a daily column on interest.co.nz called 90 seconds at 9:00 am - on property
There was a regular contributor with the nickname of Chris_J who wrote informatively on property in Christchurch. He was the manager of a family property investment company. While he never disclosed how many properties they controlled, his posts indicated they had a substantial portfolio. My guess at the time would have been in the vicinity of upward 50 houses, possibly nearer 100. In one post, while discussing numbers, in an oblique attempt to deflect, he revealed there was a Christchurch family who owned more than 1000 properties in Chch. This was in 2010. Chris_J was in the process of rotating out of Chch and into Remuera and St Johns. They took all their earthquake insurance proceeds and re-investing into Auckland. He went quiet around 2013 and hasn't been back
Auckland Property Investors' Association President David Whitburn was a regular periodic commentator, in 2010 and 2011, spruiking how he doubled and quadrupled his equity. He also has gone quiet. Disappeared around 2014. Those interested can apply the search function using his name
Recently we have seen the emergence of details more property empires being published in the news. Young bloke in Taranaki with 20 houses, 2 of them trashed by tenants, two Aucklander's claim portfolios, one of 60 homes, another of 70 homes. No trouble. Last week was the occasion of a member of Auckland Property Investors Association announcing knowledge of 4 Auckland based Portfolio Owners, each with over 200 homes.
Then there was the 20 year old Princeling who arrived in NZ as an international student and within 6 months had acquired a portfolio of 5 properties in up-market Takapuna worth $10 million
Such investors are in business and should be paying business interest rates. RBNZ Graeme Wheeler wanted to do that but was squashed by PM John Key. Such businesses of this magnitude are creating a David and Goliath Market. How private individuals wanting to buy a single home can compete against such financial muscle defies logic
Thanks Iconoclast. Do you have a link for that news on the four landlords with over 200 homes each? And more detail on the 1,000 home landlord in ChCh. I can't see either with a google search. cheers
Re: Chris_J. I have searched and searched for his original post. It was about a long-time chinese family by the name of Lee. It has gone. I vividly remember it - I have a steel-trap for info like that. The comment about the landlords in Auckland was from a current member of the Auckland Property Investors Association talking at length one night on NewstalkZB about the size of some portfolios - about 15 months ago - but fact, I dont forget those things
Well probably for the first time in NZ there is literally no risk. Why? Low interest, banks, RBNZ and govt all betting on houses for wealth (and therefore consumption) RBNZ locked into long term long interest rates, and renters held hostage due to wild house price inflation (due to RBNZ and bank debt) diluting their deposits. So its all good right! Wheres the problem? House investors make shitloads, and substitute incomes from productive activities (example their jobs) and renters pay their mortgages. If NZ is to diversify from houses as the major asset class then the debate needs to also diversify from investing in houses is simply bad! Why, whats the issue, where does this go, where does this leave NZ? The direction we are on presently is house inflation due to cheap bank debt until the investor / FHB market runs out of liquidity, then leverage NZ's desirable status due to low / no covid in the world with the world rich, invite them to NZ (many want to come I bet) and sell houses to this group (at least until Labours term is up). If this plays out then the future is uncertain. If houses corrected now NZ would enter a recession, which in this country we have massive fear of, however this managed house price inflation is now causing NZ to avoid disruption that is happening in many parts of the world due to covid! Ironically the disruption that NZ has avoided is in other countries is driving innovation (not just crazy house buying) there is much more, actually business growth and new industry growth which will position many of these countries, (Parts of UK Europe even the US) to emerge with infrastructure that will thrive in the new economies. NZ will have the most expensive houses probably in the world!
All true and a catch 22. Although the bit about a recession if housing market falls is not true in and of itself, given the banks now have lots of capital and home owners have $1t of equity. cheers
Investment Property Consultants
https://www.investmentpropertyconsultants.co.nz/
There is more to the story than has been published
How did Kylie Klein-Nixon find her
Did Meredith find her or did Kylie find Meredith
The story is a promotional puff-piece
There are many statements that are incorrect in this piece such as landlords don't pay GST.
If being a landlord is so marvelous why hasn't Bernard Hickey become one.
Hi Geoff. It's true landlords can't charge GST and therefore offset GST paid against it. My point is that income from wages is taxed 'twice' via income tax and then GST when it is spent. Landlords don't pay capital gains tax in any unrealised or regular way, and not currently at all if they sell after five years. Only taxed 'once' when they spend. Although the surplus can also be recycled into more property untaxed, rather than spent.
cheers
And yes I am a landlord and rent out the house we used to live before we moved into the CBD to live in an apartment. I have decided to 'join 'em, if I can't beat 'em'. cheers
True, but this applies to any asset that increases in value with time including the family home.
Thanks Iconoclast. Yes. It's a promotional piece, but still interesting. It's rare to see such boasting and detail in public, which I found useful.
cheers
A historical note. Nothing new.
Ten years ago .... Back in 2010
Bernard Hickey produced a daily column on interest.co.nz called 90 seconds at 9:00 am - on property
There was a regular contributor with the nickname of Chris_J who wrote informatively on property in Christchurch. He was the manager of a family property investment company. While he never disclosed how many properties they controlled, his posts indicated they had a substantial portfolio. My guess at the time would have been in the vicinity of upward 50 houses, possibly nearer 100. In one post, while discussing numbers, in an oblique attempt to deflect, he revealed there was a Christchurch family who owned more than 1000 properties in Chch. This was in 2010. Chris_J was in the process of rotating out of Chch and into Remuera and St Johns. They took all their earthquake insurance proceeds and re-investing into Auckland. He went quiet around 2013 and hasn't been back
Auckland Property Investors' Association President David Whitburn was a regular periodic commentator, in 2010 and 2011, spruiking how he doubled and quadrupled his equity. He also has gone quiet. Disappeared around 2014. Those interested can apply the search function using his name
Recently we have seen the emergence of details more property empires being published in the news. Young bloke in Taranaki with 20 houses, 2 of them trashed by tenants, two Aucklander's claim portfolios, one of 60 homes, another of 70 homes. No trouble. Last week was the occasion of a member of Auckland Property Investors Association announcing knowledge of 4 Auckland based Portfolio Owners, each with over 200 homes.
Then there was the 20 year old Princeling who arrived in NZ as an international student and within 6 months had acquired a portfolio of 5 properties in up-market Takapuna worth $10 million
Such investors are in business and should be paying business interest rates. RBNZ Graeme Wheeler wanted to do that but was squashed by PM John Key. Such businesses of this magnitude are creating a David and Goliath Market. How private individuals wanting to buy a single home can compete against such financial muscle defies logic
This is the way - and so it continues
Thanks Iconoclast. Do you have a link for that news on the four landlords with over 200 homes each? And more detail on the 1,000 home landlord in ChCh. I can't see either with a google search. cheers
Re: Chris_J. I have searched and searched for his original post. It was about a long-time chinese family by the name of Lee. It has gone. I vividly remember it - I have a steel-trap for info like that. The comment about the landlords in Auckland was from a current member of the Auckland Property Investors Association talking at length one night on NewstalkZB about the size of some portfolios - about 15 months ago - but fact, I dont forget those things
Well probably for the first time in NZ there is literally no risk. Why? Low interest, banks, RBNZ and govt all betting on houses for wealth (and therefore consumption) RBNZ locked into long term long interest rates, and renters held hostage due to wild house price inflation (due to RBNZ and bank debt) diluting their deposits. So its all good right! Wheres the problem? House investors make shitloads, and substitute incomes from productive activities (example their jobs) and renters pay their mortgages. If NZ is to diversify from houses as the major asset class then the debate needs to also diversify from investing in houses is simply bad! Why, whats the issue, where does this go, where does this leave NZ? The direction we are on presently is house inflation due to cheap bank debt until the investor / FHB market runs out of liquidity, then leverage NZ's desirable status due to low / no covid in the world with the world rich, invite them to NZ (many want to come I bet) and sell houses to this group (at least until Labours term is up). If this plays out then the future is uncertain. If houses corrected now NZ would enter a recession, which in this country we have massive fear of, however this managed house price inflation is now causing NZ to avoid disruption that is happening in many parts of the world due to covid! Ironically the disruption that NZ has avoided is in other countries is driving innovation (not just crazy house buying) there is much more, actually business growth and new industry growth which will position many of these countries, (Parts of UK Europe even the US) to emerge with infrastructure that will thrive in the new economies. NZ will have the most expensive houses probably in the world!
All true and a catch 22. Although the bit about a recession if housing market falls is not true in and of itself, given the banks now have lots of capital and home owners have $1t of equity. cheers