Average Auckland rents up $20 a week in September year

Property / news

Barfoot & Thompson records average rent growth of 3.3% in year to September

31st Oct 22, 11:28am by Greg Ninness

The average rent charged on residential rental properties managed by Barfoot & Thompson increased by $20 a week (3.3%) in the 12 months to September.

Barfoot & Thompson is the largest real estate agency in the Auckland region and manages about 16,500 rental properties on behalf of landlords.

The average rent on the properties it manages increased to $626 a week in September this year from $606 a week in September last year. The rate of increase was up very slightly from a year earlier, when the average rent across the Auckland region increased by 3.0% over the 12 months to September 2021.

There were significant variations in the rate of rent increases across the region, with the Central Auckland district recording no change over the year to September 2022, which followed a 0.9% decline in average rent over the previous 12 months.

The biggest annual increase of 6.5% was in Franklin/rural Manukau on the region's southern flank. See the table below for the full breakdown by district and number of bedrooms.

The comment stream on this story is now closed.

Average Rents Charged for Residential Rental Properties Managed by Barfoot & Thompson

September 2022

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123 Comments

by bw | 31st Oct 22, 11:32am 1667169149

Where will rents go if unemployment really bites.

Prescient?

Reserve Bank stress-testing says banks are strong, even if house prices fall 47%, even if unemployment tops 9%

by JimboJones | 31st Oct 22, 12:02pm 1667170945

And when was the last time the Reserve Bank was wrong?

by Retired-Poppy | 31st Oct 22, 11:44am 1667169878

Increased rent = higher wage demands = higher inflation = higher interest rates, until the day the straw renders the Camel useless. We're all noticing how much power, food is increasing in real time too. Inflation is not coming down anytime soon.

The many negative geared Landlords will struggle to pass on the increased interest costs that are coming. They will have to share the pain of capital loss together with being stuck with a commodity that's no longer popular. I hear they're called "Reluctant Landlords"

by Smudge02 | 31st Oct 22, 2:54pm 1667181282

Yes the transition for many from masses of debt just being an irrelevant number on a screen to literally being the difference between their business surviving or not, being able to maintain a certain standard of living or not is going to be a difficult one.

by Chaosinflesh | 31st Oct 22, 11:47am 1667170036

Is this just let rentals, or are they including the advertised prices for their 645 empty rentals (as per trademe)?

And is the yoy % increase calculated from the overall area average (which is affected by change in composition), or the average increase per-dwelling-type-per-area (which would give a more accurate view)?

by Brock Landers | 31st Oct 22, 11:42am 1667169758

Excellent news. Rent is falling in real terms.

by Retired-Poppy | 31st Oct 22, 11:51am 1667170278

There's certainly evidence Landlords are struggling to pass on the costs. If they could, rents would have skyrocketed. No doubt HW2 will dispute any notion of this in its entirety.

by HW2 | 31st Oct 22, 11:54am 1667170478

Ya reckon

by HW2 | 31st Oct 22, 12:25pm 1667172303

Scratch your braincell Retired Stroppy and you will remember how rents increased for the last three years when mortgage rates were decreasing

by Retired-Poppy | 31st Oct 22, 1:09pm 1667174984

From a Landlords perspective, is your balance sheet healthier than your communication skills? Again, you find yourself being reminded that past returns are not a reliable indicator of future returns. If you regard yourself as a seasoned investor, its not a good look to put such a deficiency on public display😜

by HW2 | 31st Oct 22, 2:13pm 1667178796

Yes it is pretty obvious that you don't want any dissenting opinion. Then you have the place all to yourself.

by Future | 31st Oct 22, 12:00pm 1667170823

I refused to pay more rent when the Landlord asked last month. Hawkes Bay has not gone up at all according to the latest numbers. The landlord is greedy and charging too much as it is, and I will NOT pay for his investment mistake. He obviously has not listened to The Prophet either, so I feel no remorse. He has agreed to keep the rent the same, wise move on his behalf, although I will move when rents come down. I sleep very well knowing Interest Rates are going to 10% Next Year, because it does not effect me, actually rents will go down with the crash. Off to buy some more popcorn, Extra Butter !

by Yvil | 31st Oct 22, 12:56pm 1667174200

So you're not a property owner or investor? Why then are you commenting on other articles about INTEREST rates?

by Future | 31st Oct 22, 1:14pm 1667175273

To warn the lost sheep of what is coming. Although not all can be saved.

by Yvil | 31st Oct 22, 3:54pm 1667184882

And that's not arrogant, giving others advice on a subject you have no personal experience in?

by Future | 31st Oct 22, 4:30pm 1667187049

But your Mentor TTP gives advice Yvil. And he is just a renter !

by agnostium | 31st Oct 22, 4:48pm 1667188088

How does being a renter mean you do not have personal experience of interest rates rises?

by HouseMouse | 31st Oct 22, 1:17pm 1667175468

Why can’t he? Can renters not have a view on the direction of interest rates?

by Retired-Poppy | 31st Oct 22, 1:25pm 1667175950

Yvil, the role of moderator @ interest.co.nz is taken - sorry 😢

by Yvil | 31st Oct 22, 3:53pm 1667184816

Maybe I can explain it in simple terms: I'm not a good cook at all, therefore I would not dare going on a cooking website and giving advice to others who are vastly experienced cooks and chefs.

Can you guys understand this?

by HouseMouse | 31st Oct 22, 4:32pm 1667187159

That’s rubbish.

In the last 50 years some of the best critics and observers in various fields were not practitioners in the field they were critiquing. I can think of many fields where this has been the case - music, art, sport, food and wine.

by Yvil | 31st Oct 22, 8:53pm 1667202786

So you rather listen to your local butcher and hairdresser rather than Warren Buffett, Ray Dalio or others for making money on the stock market, good luck to you!

by agnostium | 31st Oct 22, 4:50pm 1667188212

No. You're saying that only landlords are qualified to give advice on interest rate movements.

Can you understand this?

by Yvil | 31st Oct 22, 5:46pm 1667191582

I understand that you're twisting what I said (or you don't understand it). Re-read my original post, I said house owner or investor, because both these types of people are likely to know what it is to have a mortgage.

So no, I did NOT say "only landlords are qualified to give advice on mortgages"

by agnostium | 1st Nov 22, 10:28am 1667251710

But having a mortgage (whether you are landlord or an owner occupier) has nothing to do with your qualifications for commenting on interest rate movements.

by Nzdan | 1st Nov 22, 10:37am 1667252255

Sure it does. Just like how I've owned a few cars for the last 15 years so I am now a qualified mechanic. I've lived in houses for the last 30 odd years that have had appliances powered by electricity, so I'm now a qualified to give advice on all things electrical. I'm actually in the process of helping re-write Building Code Clause G9 due to my vast experience.

by HouseMouse | 31st Oct 22, 1:46pm 1667177218

People interested in term deposits and influences on the share market would also be interested in interest rate movements.

by Yvil | 31st Oct 22, 3:57pm 1667185043

Can renters not have a view on the direction of interest rates?

Of course they can, it's the giving others advice on a subject he has no personal experience in, that is wrong. It's just arrogance.

by HouseMouse | 31st Oct 22, 4:29pm 1667186994

Giving advice? Lol. He’s been expressing an opinion.

by Yvil | 31st Oct 22, 5:48pm 1667191702

Rubbish and you know it, him saying "10% interest rates in 2023 and 30% house price drop by December 2022 GUARANTEED" is NOT an opinion

by hootenany | 1st Nov 22, 11:18am 1667254697

Having had a mortgage doesn't give you more of an incite future interest and house prices than anyone else. All it gives you is a bias. I would say having an economics degree doesn't even give you much of an edge its all just guesswork.

All statements here are opinions, even by economists nobody actually knows what will happen.

by Fitzgerald | 31st Oct 22, 4:48pm 1667188129

At some point you're gonna realize that the smart investors are those that aren't already in debt.

by Yvil | 31st Oct 22, 5:49pm 1667191756

I absolutely agree with you but this is not what we're discussing here.

by agnostium | 31st Oct 22, 4:52pm 1667188341

How do you know he has no experience in interest rate movements and housing markets?

He could be a qualified financial advisor or a developer or work for a development company or be a market analyst... All of these people could also be renters.

You are literally doubling down on your arrogance

by tomjones_04 | 31st Oct 22, 2:18pm 1667179100

Only landlords can understand the complexities of interest rates huh Yvil?? Or home owners?? Pretty offensive to renters wouldn’t you say?

by HouseMouse | 31st Oct 22, 2:50pm 1667181013

It’s just typical of his arrogance and condescending attitude.

by Yvil | 31st Oct 22, 4:00pm 1667185256

Only landlords can understand the complexities of interest rates huh Yvil?

These are your words, not mine. I don't know what you do for work day in day out, but I bet you're a lot better at it than I am. Would you not find it arrogant if I gave you advice daily, non stop about a subject I have not personal experience in?

Please reply.

by agnostium | 31st Oct 22, 4:53pm 1667188418

What are your qualifications in interest rate movements Yvil?

by Yvil | 31st Oct 22, 5:51pm 1667191905

I have had dozens of mortgages over the last 25 years.

by agnostium | 1st Nov 22, 11:30am 1667255422

Ok I see what's happening here.

You are confusing having "done" dozens of mortgages over the last 25 years with being an expert on interest rate movements. That's like eating loads of burgers and assuming you know how to run a successful burger joint.

I believe you have experience in successfully making money in property investment over the last 25 years but I would say that it has been a pretty easy environment to do so. If what we're experiencing is a fundamental change in the world economy and a lot of the indicators appear to show that it is then the investment strategy that worked before may not work again. If this is not a fundamental change and things are going to be the same as they have been for the last 25 years then yes, I agree people should listen to your advice on how to make money as you are obviously successful at this.

But if this is a fundamental change then your experience probably makes you less qualified than others to provide advice. When people have had success with a particular strategy they find it harder to reassess and do something different if circumstances change. The more confident they are in their strategy, the more difficult it is for them to change tack.

by Future | 1st Nov 22, 3:46pm 1667270788

I would take anything Yvil says with a grain of salt. Especially making a million bucks from chopping down some trees. Oh and also the new Bali beach front holiday home. His arrogance and pride should be a warning sign to his credibility.

by Yvil | 1st Nov 22, 4:37pm 1667273872

The Bali villa is not new and it's not beachfront, it's one back from the Oberoi resort, next to KuDeTa.

by Yvil | 1st Nov 22, 4:36pm 1667273760

Great post agnostium!

by tomjones_04 | 31st Oct 22, 5:18pm 1667189907

I might be a renter that has money in term deposits or a business owner in a capital heavy industry that requires loans/finance. Interest rates don’t solely affect property owners. The way you talk (and it’s not only you, don’t feel picked on), it’s like housing/property is the only thing in the economy that is moved by interest rates..

by HW2 | 31st Oct 22, 2:24pm 1667179440

It looks like you are the whipping boy, you might have to rethink that comment Yvil.

by Yvil | 31st Oct 22, 4:03pm 1667185385

I stand by my comment, some people like to take advice from others who have no experience in he subject, good luck to them, personally, I far prefer to listen to someone who has been there and done that, multiple times preferably.

by Future | 31st Oct 22, 4:20pm 1667186437

Hi Yvil. I have only now got back from my popcorn trip, it always takes time to find the Extra Butter. Actually Yvil you do not know my background, not one bit, you just went off on your tangent . I have really touched a nerve going by all your insecure comments. If you had listened to The Prophet about 7% Interest Rates This Year, Guaranteed, you would NOT be panicking. But your arrogance kept you in Denial ! If you are panicking now then just wait for next year. You will be moving back to MiserYvil.

by Yvil | 31st Oct 22, 5:55pm 1667192141

I'm currently holidaying in my villa in Bali. Don't worry about me, I can assure you I'm much happier in my position than in yours.

by Future | 31st Oct 22, 6:28pm 1667194110

"I'm currently holidaying in my villa in Bali. Don't worry about me, I can assure you I'm much happier in my position than in yours."

But you don't know my position Yvil. So how can you assure that ? Im renting and your leveraged to the hilt, its easy to see in your stressed out comments. My Landlord is taking the fall, not me. The smart investor knows whats coming and is positioning himself for that. Maybe there is some tress in front of your holiday home in Bali that need to be chopped down. Pick up an easy Million, throw that towards those mortgages. Although that new 7% rate may just bring you back to square one again.

by Yvil | 31st Oct 22, 6:58pm 1667195934

Thanks for your concern, again, I'm very happy in my position. I'm not the one who creates multiple accounts, so that I can call myself a prophet, through another account and upvote myself multiple times.

by Future | 1st Nov 22, 9:25am 1667247930

I only have one account Yvil.

by Yvil | 1st Nov 22, 4:41pm 1667274077

Because your other accounts like 2022 or XXII have been closed down by the moderator. I wouldn't be proud of being repeatedly banned and having to create new accounts to keep posting.

by HW2 | 31st Oct 22, 5:04pm 1667189066

Well if you had've explained that, that's different to pouring scorn on someone. I didn't mind you commenting about the numbers of rental listings even though it's clear you are making stabs in the dark.

by Brock Landers | 31st Oct 22, 3:18pm 1667182703

Jesus Christ.

Landlords and their God complex eh.

by HouseMouse | 31st Oct 22, 4:29pm 1667186958

Unbelievable ey

by Nzdan | 31st Oct 22, 5:13pm 1667189605

Must be in the name. Landlord is such a pretentious title, which society should seek to abolish the use of. If the owner of a shop/other service provider openly had the same attitude towards their clients as "Landlords" tend to do, they'd go out of business.

I guess when your business model has 20 years of fair weather sailing, with generous lending conditions from the banks, combined with capturing finite supply of existing affordable housing (they stopped making 20+ year old entry level homes 20+ years ago) that would normally be sold to FHB, then it's easy to lose perspective.

by thinktank | 31st Oct 22, 3:32pm 1667183578

Not really sure why you have this attitude - my properties are in Napier and rents continue to increase because I increase mine annually, and just did on two in Tamatea - no grumbles by the tenants. One tenant has asked to re-fix for another 2 years as they don’t want to go back to the renting rat race.

Be careful or you might end up homeless.

by Future | 31st Oct 22, 6:33pm 1667194412

Be careful or you might end up Bankrupt.

by Halfway To Paradise | 31st Oct 22, 8:17pm 1667200630

So you are off to buy popcorn, but when will/can you buy a house?

by Fitzgerald | 31st Oct 22, 8:54pm 1667202876

Do you not understand that this is a jerk comment to make?

In the last 2 weeks there have been 2 articles published on this site all about housing unaffordability... and they have clearly set out the numbers. The fact is that MANY people cannot afford a house, through no fault of their own.

Only in NZ do we have so many jerks that are so quick to rub housing unaffordability in people's noses.

Owning a house does not make you a better person. Or a smarter person. In many (most?) cases it just means that you are a luckier person.

People like you, and comments like yours, make me SO KEEN for this coming crash. So many arrogant people are going to get a big fat faceful of humble pie.

Let the ponzi burn. 🍿 I hope that you, and the jerk that was bragging about all his rentals above, lose a ton of money. Too much arrogance. Too much hubris.

by Yvil | 31st Oct 22, 8:47pm 1667202479

Yes it's an insensitive comment, just like some of mine. And why do you think we reply like this? Did you ever wonder? Can you not see it's because the original post is equally insensitive?. "Future" said "He obviously has not listened to The Prophet" which is another of his multipole accounts, he also repeatedly rejoices in the misery of others, THAT'S WHAT CREATES INSENSITIVE REPLIES.

Just like your own comment above and the many similar ones you have made before, like:

"we have so many jerks "

"SO KEEN for this coming crash. So many arrogant people are going to get a big fat faceful of humble pie."

It's that kind of angry posts that is the cause of equally insensitive replies

by Fitzgerald | 31st Oct 22, 8:56pm 1667202974

Hush little vampire squid. You'll be OK. Go sip a cocktail in your Bali villa. Never you mind what the plebs think.

by Yvil | 1st Nov 22, 4:42pm 1667274177

Grow up Fitz, you're really immature!

by HW2 | 31st Oct 22, 9:05pm 1667203511

Well said Yvil 👍

by redheadonist | 1st Nov 22, 9:01am 1667246498

Yes, I'm sure you do always think it is the fault of others.

by Property_Wizard | 31st Oct 22, 6:35pm 1667194528

Yes good news, but more importantly how does it compare to wage inflation.

by ex socialist | 31st Oct 22, 11:46am 1667170004

What I suspect is that the many properties that can't sell are being rented, which may look like a higher rent but may just be a higher average standard.

by Chaosinflesh | 31st Oct 22, 12:02pm 1667170954

Hence why I asked my question[s]. In our area, 6 months ago there were no properties > 4 bedrooms. Now there are several 5-6+ available. That skews the average up - though all the shoe boxes coming online skews it down also, hence why I asked how the yearly change was calculated.

Admittedly, we're only in one little microcosm of Auckland, but nearly every large property had it's price reduced before being let while I was watching (the one exception being the one we took, since we were unwilling to risk a great house in a great neighbourhood on the gamble of cheaper rent - also school zoning didn't give us too many options).

by HouseMouse | 31st Oct 22, 12:16pm 1667171760

Good questions. Would be interesting to dig deeper. All the shoe boxes coming on line would have both rental lowering and increasing impacts, but I assume the overall net effect will be lowering. Firstly by increasing the number of two bedroom properties for rent over the past year, relative to 3 bedrooms. And secondly through more supply being delivered, affecting supply / demand forces. The secondary rental increasing effect will be that new 2 bedroom shoeboxes will be on average a higher rent than old brick and tile flats etc.

by agnostium | 31st Oct 22, 1:29pm 1667176199

I think the change in composition is probably the bigger influence. Like for like, my impression is that rents are falling.

by HW2 | 31st Oct 22, 2:28pm 1667179735

They should have asked you for comments before releasing this report

by agnostium | 31st Oct 22, 3:07pm 1667182054

Why would they?

They already know the angle they are going to pitch.

by JimboJones | 31st Oct 22, 12:00pm 1667170846

But according to National, Labour's taxes on property investors was going to increase rents. Yet this is less than inflation.

by thinktank | 31st Oct 22, 3:36pm 1667183782

Well if all all other external factors were removed from the equation like your comment is assuming, then they would.

by BadDragon | 31st Oct 22, 4:44pm 1667187852

I sold my rental property in response to the government changing the rules on rental property interest deductibility. basically it was a fools game to be in a business where the government can change your cost structure and render the business umprofitable.

to put it in perspective, I had owned the property for 9 years, had a mortgage of just 290k remaining. the loss of interest deductibility would have seen me paying an additional 5k a year in taxes despite the rent only covering interest plus rates plus insurance. to maintain my break even status i needed to raise my rents by approx $195 per week and that was pre the rate rising cycle.

net result. got out at the peak of the market, paid off all my debt, added -1 rental property to the national pool.

by agnostium | 31st Oct 22, 4:56pm 1667188608

Why one less rental property to the pool? Did you demolish it?

by Nzdan | 31st Oct 22, 5:18pm 1667189916

Either they carefully deconstructed the dwelling and sold the materials on Facebook marketplace, or they included a caveat that the property be sold to an Owner Occupier only to ensure that their tantrum had an effect (even if just in their head).

by agnostium | 1st Nov 22, 11:33am 1667255599

But even if they sold it to owner occupier, it's net neutral one less renter one less rental space?

by RickStrauss | 1st Nov 22, 3:28pm 1667269689

Yes, but it's important to note that they - as the seller who might've otherwise had to pay tax like working plebs but were in the meantime fortunate to benefit from rental yield subsidies and reserve bank welfarism - are the real victim here.

by Nzdan | 1st Nov 22, 7:43pm 1667285022

Normally, except they'll claim on average there are 3.3 people in an owner occupied home and 3.8 in a rental, so 0.5 people are made homeless every time a rental is sold to an Owner Occupier.

by HouseMouse | 31st Oct 22, 12:02pm 1667170931

Interesting to see almost zero rental inflation for central Auckland suburbs. Perhaps less incentive to live centrally when WFH has become much more prevalent?

by Brock Landers | 31st Oct 22, 12:05pm 1667171116

You know the old saying...

A ram raid a day, keeps the commuters away...

by morepork | 31st Oct 22, 12:08pm 1667171318

Rents of 1 bedrooms have increased the least, so probably a combination of what you said, plus 1 bedrooms being less desirable if you're working from home. Central Auckland would have the majority of 1 bedroom units. But also why settle for a 1 bedroom when there are now more larger options available?

by Sluggy | 31st Oct 22, 12:15pm 1667171736

I guess stable rents and dropping house prices = better ROI. I'm positive that's how landlords see it. Going from 2% to 2.2% roi based on plummeting values can only be a win.

by Yvil | 31st Oct 22, 12:59pm 1667174344

Central Auckland is where the student flats are, no overseas students for the last year = lower rent for small apartments which skews the central suburb average rent down.

by HouseMouse | 31st Oct 22, 1:10pm 1667175026

Yes, although Central West and Central East, both outside the CBD, also showed very low rental inflation.

by HW2 | 31st Oct 22, 12:22pm 1667172158

This is interesting

Rents go up relentlessly every year. Even small increases are significant and rents double ... over the longterm

but mortgages get smaller and repayments eventually are zero .... Over the long term

It won't happen overnight, but it will happen

by agnostium | 31st Oct 22, 1:37pm 1667176662

These are average rents, doesn't take into account change in composition.

Like for like, my impression is that rents are falling on the Shore. Probably because people are moving from central in smaller property to larger property closer to beaches. Previously the trade-off of travel costs (including time) and high rents made no sense but they can trade up for a much smaller premium to what they were paying before and travel costs are lower due to AT subsidy and working from home some days of the week.

So it's entirely possible that people are paying more but for a better property, and that the property is renting for less than it used to be.

by WestieAJ | 31st Oct 22, 12:50pm 1667173859

If the $20 rent increase from $606 to $626 causes the tenant to move on to somewhere better and cheaper. Just one week of vacancy will need 30 weeks of rent to recoup the $600 you lost.

It is in Barfoot's interest to ratchet up rent every year as they get a 8.5% clip on every dollar of rent.

More and more dwellings coming on line for a still stagnant population to live in. Wait for the 1 weeks free rent deals from landlords that are smarter than average.

by HW2 | 31st Oct 22, 12:59pm 1667174398

Some landlords are willing to take the risk of vacancy. A good percentage of tenants will stay even if the increases are gigantic. I have witnessed other landlords do this. I personally can't be bothered having an empty property and re advertising so keep the rents low.

Thought of the day: Retired Stroppy is like a peak hour bus, he will be along soon

by Yvil | 31st Oct 22, 1:01pm 1667174481

Careful HW2, rental supply is very rapidly catching up to demand. Renters have had little choice in the past, this is now changing!

by Retired-Poppy | 31st Oct 22, 3:37pm 1667183870

Yvil, with posts like this you will quickly become one of my most favorite commenters! Thumbs up to you 👍

Edit (sarcasm)

by Yvil | 31st Oct 22, 4:06pm 1667185577

I don't comment on Interest for thumbs up or for being anyone's favourite. I like my friends in person, in front of me preferably with a beer in their hand.

by agnostium | 1st Nov 22, 11:34am 1667255677

No friends in Bali?

Sorry that was low. I do actually appreciate your comments on here. It's good to have different viewpoints.

by HW2 | 31st Oct 22, 2:08pm 1667178536

Yes I did my spreadsheet this morning. Numbers are up slightly from one month ago which I read as basically equilibrium. Even if what you say is true that "rental supply is very rapid" then rents still rising a modest 3.x% has to be a very concerning thing for the informed renter. Did you read my post correctly, however, I said that I said that I like to keep rents low. How about your motel charges. Ps the gray clouds are hanging over your place

by HW2 | 31st Oct 22, 2:41pm 1667180484

There is a rental listing increase in Auckland of 1.5 percent over the last month. BUT a decrease of 19.9 percent over the last 5 months.

Are you sure you have the right end of the stick Yvil ? You probably don't have any numbers to go on, it is more your "gut feelings" after a corporate luncheon at the motel.

by HouseMouse | 31st Oct 22, 2:52pm 1667181121

Nothing like one slum lord giving it to another.

Better entertainment than a heavy weight title bout.

by Yvil | 31st Oct 22, 4:04pm 1667185462

Nothing like calling people who disagree with your point of view, names.

by HouseMouse | 31st Oct 22, 4:34pm 1667187268

Haha pot calling kettle black.

you need to have a serious look in the mirror. Astonishing arrogance and condescending attitude.

I know I serve up dirt. I am honest and self aware enough to admit it.

by interesting1234 | 31st Oct 22, 3:01pm 1667181694

Perhaps he aspires to be the prophet one day

by HW2 | 31st Oct 22, 3:39pm 1667183971

Yvil is just playing "Devils Advocate"

by Retired-Poppy | 31st Oct 22, 4:15pm 1667186117

by HW2 | 31st Oct 22, 3:39pm - Yvil is just playing "Devils Advocate"

Do you disagree with Yvil?

by HW2 | 31st Oct 22, 4:59pm 1667188772

Save the questions

by Retired-Poppy | 31st Oct 22, 5:28pm 1667190526

What, for someone who has the ability to answer them?

by HW2 | 31st Oct 22, 5:50pm 1667191829

For someone who can tolerate your jack in the box type of low IQ 🐖🐗

by Zachary Smith | 31st Oct 22, 6:47pm 1667195247

Have a heart HW2, Retired-Poppy has been wandering in the wilderness of sub 1% term deposit interest rates for a few years. His time in the sun has finally arrived.

by Retired-Poppy | 31st Oct 22, 7:29pm 1667197770

For me the Sun has always shone. My main earner was a 4.27% (paid monthly) with Rabobank, matures in Jan-2023. My next rate will have a 5 in front of it or maybe even a 6!. I missed the worst of the deposit rate slump. This time around I will only lock it in for a year as there are many opportunities outside of term deposits coming soon.

Anyway Zach, I'm pretty sure you already knew this so poor attempt at a troll buddy.

by Retired-Poppy | 19th Mar 18, 2:10pm "in January I took out a TD @ 4.27% with interest paid monthly which I reinvest - Rabobank. Since then, rates have dropped slightly" And boy did they drop!

by HW2 | 31st Oct 22, 7:32pm 1667197928

Whats the net real rate (...after tax and inflation)

by Fitzgerald | 31st Oct 22, 7:43pm 1667198608

He's done far better than any property investor over the last 12 months that's for sure. And as for the next 12 months, well...

by Retired-Poppy | 31st Oct 22, 8:00pm 1667199622

"Whats the net real rate (...after tax and inflation"

During those low inflation years it was a nice earner. Now its a case of those who lose least win most. I'm not losing much at all.

by Retired-Poppy | 31st Oct 22, 7:58pm 1667199498

Despite what my username implies, I'm a 57 year old full time worker. I tried the early early retirement thing and didn't like it. I should change my username as it might stop HW2 thinking he can abuse me because he assumes I'm elderly 😆 And no, I didn't return to work cause I needed the money either🤑

I enjoy doing what I do.

by HW2 | 31st Oct 22, 10:56pm 1667210209

I had better respond... I hope that it works out for you RP. You're ten years younger than me but I still 'work' fulltime and have the privilege of WFH quite a bit. Maybe we can leave the swords in their scabbards now.

by Retired-Poppy | 1st Nov 22, 6:18am 1667236699

👍

by Zachary Smith | 1st Nov 22, 5:33pm 1667277233

This thread is probably dead now but what I meant by "time in the sun" was being a vocal advocate of term deposits. You must admit you went very quiet during the period of super low interest rates and seemed to wake when that changed. I wasn't really trolling. For a while back then your shtick wasn't very fashionable.

by Fitzgerald | 31st Oct 22, 2:51pm 1667181081

Rent up $20 a week.

Mortgage on the rental up $400 a week.

Yeah, all the savvy investors have rental properties. That's where the smart money is.

🦇🦑🥸

by lonewolfnz | 31st Oct 22, 4:29pm 1667186963

Savvy investors like myself hold rental properties but have no debt. We are fully cashed to the maximum possible in term deposits and waiting for the discounts (in many markets) next year. My rental is a hassle to maintain but it is still printing cash at around 3% yield and with a 200% tax free capital gain.

by tuisbest | 31st Oct 22, 4:55pm 1667188533

"OLD investors like myself hold rental properties but have no debt." There, I fixed it for you.

by phalanax | 31st Oct 22, 5:33pm 1667190827

I know of someone thats been forewarned rent will go up 16% March next year ...and im picking its likely mortgage rate hikes are behind it . This is why regulators need to be careful how hard they punch with rate hikes. Theres a fine line between taming inflation and creating inflation... trickle down versus a monsoon.... good thing for the tenant is plenty of warning and listings are increasing...the 16% rise is not as heavy as it seems, brings rent up to market values really...tenants not riled, they go where the value is and have had a very good run with the property ... they are very good tenants... bad news for the landlord is the tenant has a solid history of finding value in good locations and has never skipped a beat or failed an inspection....will be interesting to see if the tenant decides to sit or split....lol

by Nzdan | 31st Oct 22, 5:37pm 1667191064

Landlord might learn about the saying "a bird in the hand is worth two in the bush". Unless they are renting out a truly desirable property of course, and not fabricating a humble brag about "charging below market rent" for altruistic reasons.

by Retired-Poppy | 31st Oct 22, 6:53pm 1667195609

Its easier to make stuff up to support a narrative of which there is no escape without tears.

by HW2 | 31st Oct 22, 8:24pm 1667201082

Having a property manager is heaps easier than dealing with the tenant yourself and they charge the tenant a lot more than what you would. The higher rent usually covers their fees plus a bit. Its definitely a good way to go. Although I like getting to know the tenants, so there is for and against. The properties we self manage I charge much lower than market rent but I have my reasons for that.

by phalanax | 31st Oct 22, 8:04pm 1667199884

There are ways of course of combatting rent increases but you need to get consent in many cases..If you have a spare bedroom you can use it to offset any increase. Another factor that comes into play with higher interest rates is if you have decent TD returns its hard to see the landlord outpacing you. Yes you are going to take a hit but it wont hit as hard as folk that have nominal savings suffer. The other alternative is up your work hours to offset the adjustment or seek a higher income. My opinion is OCR rate hikes may not be the inflation killer many tout particularly if you hike agressively/ excessively... its not rocket science...push up mortgage or financial costs / offset onto tenants/consumers / offset onto employers/manufacturers.. end result inflation. Begs the question is the comedy all about retaining/increasing YOY for lenders rather than axing inflation? Some of the recent bank results may affirm the former.

by interesting1234 | 1st Nov 22, 9:05am 1667246725

Does anyone have any links to stats on the % of people holding mortgages when the OCR has hiked in the past? Granted the current climate is unprecedented with the wage increases and external factors combating the OCR hikes, It would be an interesting comparison to gauge the power or effectiveness f the OCR today vs in the past. If there are on average less people with mortgages, it could be argued that the impact the OCR has on spending is somewhat muted. Also factoring in the DTI of the time would bring some good comparisons.