A couple of years ago, Westpac predicted that rentals would go up by 7% pa, for 5 years, until landlording became an economic proposition again (ie, there was positive yield). I posted on this site at the time that this was arrant nonsense, for the reasons that Bernard is saying today. Tenants don't have surplus money for rental increases, typically they live week by week.

Imagine if Wild Bill took the bold step of removing some of the landlord rorts, thru WFF, LAQCs, etc (I know not very likely, considering he is donkey deep in rentals himself, along with the whole Cabinet). The whole rationale behind the landlording (as a speculative activity) would come crashing down, & of course house prices in sympathy.

Bloody good. But fat chance.

...and the statistics of the article on stuff.co today don't inspire confidence that things are looking up for rentals, or anything else for that matter. It might even help a little to explain why there seems to be a sudden rush of good quality house listings again (at least in my immediate neighbourhood areas).

Sad reading when you look at the numbers:

http://www.stuff.co.nz/business/personal-finance/3009357/Kiwis-struggle-...

Bernard, try putting the correct graphs up behind you next time...

marky mark,

These statistics may show the smaller stuff. But guess what, when your bank is breathing down your neck, what do you do? You hold off on the payments that are less critical to 'survival' than the mortgage payment, and that's those smaller HP's (or whatever other bills you have and can't pay) that can't anymore be taken care of through a mortgage facility with the bank.

In my view this is just the tip of the iceberg we are seeing so far.