Wednesday, 31 October 2018

The good the bad and the ugly of New Zealand real estate today.- Government to ban letting fees

Bali and World News and Views Editor's comments:

Editor Lawrence and family on North Island of New Zealand 2018

Unfortunately for New Zealanders my predictions of real estate prices hitting a bubble and then bursting are now coming true. 

The Good news is that New Zealand real estate prices have increased dramatically over the last decade. "House prices have soared in New Zealand in recent years, with average costs rising more than 60 per cent nationwide in the last decade and almost doubling in Auckland, the country’s largest city."

The bad news is that a lot of those increases were caused by foreign buyers, primarily from China. 

They were the same buyers that drove up Singapore, Melbourne, Sydney and Brisbane. 

In August New Zealand banned foreign buyers completely.

The problem is now New Zealand has one of the worst ratios of income to  home prices in the world.

It has now violated my major acid test of any real estate market in the world. 

If I cannot buy a three-bedroom home or apartment and earn positive cash flow the market is probably finished

The ugly is that now the government is preventing owners of real estate from raising rental rates at a time when rising inflation, fuel costs etc. are costing more for homeowners to operate a rentals.

The really ugly is that this is only going to get worse.

I hate to be the bearer of bad news. I love New Zealand and I love New Zealanders especially after spending three weeks there just a few months ago.

After visiting the North and South Islands while skiing and I also investigated real estate. 

I can tell you that unfortunately although it one of the most beautiful places in the world  for the next several years the real estate market is going to be  ugly.

Editor and family skiing at Whakapapa New Zealand 2018
Major New Zealand city real estate  prices in my opinion will start to drop exponentially and before it's all over it's going to be really ugly.

Lawrence and boys at South Island 2018

What Should You Do?

So if you own New Zealand real estate what should you do?

Well unless you want to see the value of your property drop 20% to 40% in the next 3 to 5 years you better sell at whatever you can get, right now.

Take that money and invest it in greener pastures such as Asia, specifically Bali, which has already had a downturn of 20% to 40% and is starting back up after the "first downturn in modern history".

Learn why a 22 year Canadian Bali resident and real estate veteran believes this is the second best time to buy Bali real estate this century.

Those that buy now will probably see 50 % to 100% growth in  the next 5 to 10 years.
"50 % to 100% growth in  the next 5 to 10 years".

Learn how foreigners can participate in this market and why it's 60% cheaper to live in Bali for retirees at a series of seminars coming up next week see in Bali. Details of seminars follow the article below.


NZ Government to ban letting fees

Housing Minister Phil Twyford announced a new bill to ban letting fees in March.

Tenants will no longer have to pay letting fees to agents and landlords, after Parliament voted to ban the practice.

Housing and Urban Development Minister Phil Twyford estimated the change could prevent the handover of up to $47 million in a payments he said were "unfair" and had "no economic rationale".

"This will make a real difference to struggling families. There are significant costs associated with moving to a new rental property, which many families are now forced to do every year.

Letting fees have been evicted from the landlord's entitlements, after Parliament voted to ban them.

"When moving into a new rental property, tenants can face up to four weeks' bond, two weeks' rent in advance – and one weeks' rent as a letting fee – in addition to moving costs," he said.

* Manawatū/Whanganui house prices hit new highs, as sales listings plummet
* Renters 'like letting fees', property investor group says
* What do property managers do?

"Letting fees are unfair. They have no economic rationale and there is no relationship between the amount of the charge and cost of the services provided.

"Banning the charging of letting fees to tenants is a good first step in improving the life of renters, while we continue our broader review of the Residential Tenancies Act."

But while the law change will now come as no surprise to the industry, it's unlikely to be welcomed. The Real Estate Institute of New Zealand (REINZ) said in August, it would like to see tighter regulation in the market but had concerns about how the costs of letting fees would be covered if they were abolished.

"Letting fees covered property inspections, advertising, viewings, background checks on tenants, liaison with landlords and processing the tenancy agreement," Bindi Norwell, REINZ chief executive, said.

"So actually, they do quite a lot of work. So someone has got to pay for that."

National has maintained the argument that getting rid of letting fees would drive up rents.
Learn about Latest Laws for Foreigners and How to Earn 10 % to 20 % Per Yr. Free Bali Real Estate Seminars

Whether you are a buyer, seller, broker, agent, investor, lessor or renter you can benefit from attending one of our two free Real Estate Seminars in Bali next week.

At these seminars PT. B.A.L.I’s Canadian President, Lawrence, a 22 yr. Bali resident, President of 14 yr. old company with 135 staff, married to Azizah, a fully Licenced Notaris will review the most recent real estate laws for Indonesians and Foreigners in detail.
Bali seminar attendees January 2018

Then they will also provide a full colour audio, visual presentation with many professional charts on the Past, Present, and Future of  Bali Real Estate.

Free Seminar Schedules:

 Location: Sanur, Bali, Emerald Villas, 

Dates & Times:
    1. Thursday - Nov. 8th. 6:30 PM - 7:45 PM

2. Saturday - Nov. 10th. 2:00 PM - 3:15 PM

Location: Bali, Emerald Villas, Jl. Karangsari, # 5, Sanur, Bali, Indonesia.

Limited Seating & Free Parking: 

Seating is very limited for these free seminars so please avoid disappointment and make reservations A.S.A.P. Click Here For a Reservation Or Email: or Tel: Office: 62-361- 284069 For Bahasa English 62-8123814014 – Bahasa Indonesia or 62-8123632177

    Seminar Topics:

    At these seminars you will learn about:

    • The Past, Present and Future of Bali, Indonesia, Asian and Australian real estate.
    • Why a recent official clarification of foreign ownership laws allows foreigners to totally control Indonesian properties for up to 80 years without leases? 
    • How to avoid legal problems and make sure a property is safe. 
    • How to avoid complicated real estate laws affecting Indonesians married to foreigners. 
    • Why this is the second best time to buy this century. 
    • Where are the best locations to buy for maximum profits? 
    • What type of properties will offer the best investment potential of *10% to 20 % per year? 
    • Discover how you can sell your property fast for the highest prices and lowest commissions on a brand new web site designed after the largest most successful real estate site in America with high tech search features. 
    • An opportunity for a free listing on B.A.R.E. First Class Beachfront property at almost 50% discount. 
    • A Quality 5,000 m2 Bali Hotel with 12 bungalows, 3 pools and Restaurant for only $588,000. 
    • Low cost properties with Luxury Villas starting as low as $158,000 for a three bedroom 650 m² 3 bedroom, 4 bath with private 9 mtr. Pool. 
    • Ridiculously low priced ocean view building lots starting as low as $25,000 for 500 m².
    • Brand new Bali Luxury Retirement Villas starting at $208.00 per mth.

      Limited Seating & Free Parking: 

      Seating is very limited for these free seminars so please avoid disappointment and make reservations A.S.A.P. Click Here For a Reservation

      Or Email: or Tel: Office: 62-361- 284069 For Bahasa English 62-8123814014 – Bahasa Indonesia or 62-8123632177

      No comments:

      Post a Comment

      Perth’s popular Beaufort Street strip is battling to survive

      Josh Zimmerman and Caitlyn RintoulThe West Australian Sunday, 2 June 2019 2:00AM Astor Arcade owner Bruno Zimmermann.Picture: Ian Munro Pr...