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Poor investments and over-borrowing could force more property investors to sell this year, causing property prices to dive, says Andrew King, vice-president of the Property Investors’ Federation.
This adds to the grim outlook portrayed in property mortgage insurer PMI’s mid-year report, released on Thursday, and Quotable Value’s monthly report, which is out tomorrow. (more…)
Property expert Andrew King believes he may have created an entirely new financial industry: property management broking.
King, former president of the Auckland Property Investors Association, is yet to fully launch the business, Andrew King Property Management Broking, on to the world.
But he believes that, just as mortgage brokers aim to find the best home loan for clients, there’s a place for professionals to introduce residential property investors to the best property managers.
And as with mortgage brokers, the service is free. (more…)
Property expert Andrew King would like nothing better than for the Auld Mug to arrive back down at the Viaduct.
But he, like other investors and estate agents, warns against the temptation to take a punt, borrow heavily and invest in a clutch of Auckland apartments within walking distance of the Viaduct.
“There’s a lot of talk among property investors at the moment and they’re quite excited about it,” King said. “They think it [winning the America’s Cup] will increase property values.” (more…)
Inland Revenue says it is a myth that investments in housing have a tax advantage over other types of investment.
Revenue Minister Peter Dunne and IRD officials appeared before the finance select committee today and were quizzed about why people had the impression that there was some tax advantage in investments in rental housing.
Deputy Commissioner Robin Oliver was blunt: “The short answer there is none.” (more…)
Couples with joint incomes of up to $100,000 before tax will be eligible for KiwiSaver grants to buy their first home, but they’ll be forced to buy cheap properties.
Under the eligibility rules, outlined in Treasury post-Budget notes, people who get the housing grants will be forced to buy a house with a value in the lowest 25% of homes in their town, area or city. (more…)
Property speculators who are reaping millions of dollars from the super-heated housing market are about to feel the heat from a tough new tax crackdown.
Finance Minister Michael Cullen said Inland Revenue would get an extra $14.6 million over the next three years to strengthen property transaction audits. Speculative activity was driving up house prices and household debt levels, he said. So giving IRD more money would help it enforce the law. (more…)
Savings on food, clothing and home supplies have enabled New Zealanders to cover a huge increase in housing costs over the past 50 years.
A Weekend Herald analysis of long-term spending patterns confirms property investor Andrew King’s controversial statement last week that would-be home-buyers are spending more on “coffee and brand new cars and overseas trips”. Spending on cafes, private transport and overseas travel have all increased. (more…)
Three articles on home ownership this week put the blame for rising house prices on property investors. However, there is a considerable amount of misinformation and misunderstanding that has led the writers to their conclusions.
Before assigning blame we need to ask two questions. Are property investors really to blame and if they are, would the capital gains tax on rental property help the situation?
When considering misinformation, Tapu Misa made an excellent point when she discussed “those investment seminars … the kind that promise to show you how to make lots of money by using the equity in your home to buy a rental property”. (more…)
At least he practices what he preaches.
The property investor who caused controversy last week by telling people they should stop buying coffees and cars and going overseas on holiday doesn’t buy coffee himself and owns a $15,000 car he bought two years ago.
New Zealand Property Investors Federation president Andrew King said his only real extravagance was a five-week holiday to Malaysia and Thailand with his family.
But he did admit to cracking now and then. His initial response was “none” when asked if he had any coffees. But when pushed he came back with, “Well, I have the occasional one.” (more…)
What’s the answer for Aucklanders trapped in the affordability squeeze?
Property experts say those facing a lifetime of renting must change their ideas if they want to get on the housing ladder.
DTZ’s Ian Mitchell, who worked on the two Centre for Housing reports issued on Monday, said Aucklanders simply had to change their expectations.
“In Sydney or Melbourne, if you wanted a three-bedroom house on a section close to where you work, you’d know you would have to compromise and buy a unit or apartment instead,” Mr Mitchell said. (more…)
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