Residential - Boom or Bust

[Hectorplains]

Westpac sounds warning"nearly half of its mortgage customers will have to make higher repayments than those the bank assumed when it assessed their capacity to repay low rate loans."

"...provided reassurance that those who get into trouble will be helped through the tough times, and the bank would use its financial strength to restructure debts – including putting some stressed borrowers onto interest-only terms to reduce their monthly repayments."

The rather ridiculous headline aside, this tolls clear warning of more pain coming in Aust's mortgage belt.  No signs of recovery in Westpac's rhetoric.

[KW]

When people claim there is a shortage of housing, but developers are building rubbish like this on valuable and scarce land ... https://drive.google.com/drive/u/0/folders/1-vrnX0P-8-yXGRlX9Y_SG-MR-luPbrSS

Williams Corp lastest offering - 39 sqm studio where the bedroom is the pull out couch.  Why is Council even approving this crap?  If you want to build a hotel, build a hotel.  

[Untamed]

Where does it state that the bed is a pull out couch? Maybe I missed something but I can't see any mention of that.

When people claim there is a shortage of housing, but developers are building rubbish like this on valuable and scarce land ... https://drive.google.com/drive/u/0/folders/1-vrnX0P-8-yXGRlX9Y_SG-MR-luPbrSS

Williams Corp lastest offering - 39 sqm studio where the bedroom is the pull out couch.  Why is Council even approving this crap?  If you want to build a hotel, build a hotel. 

[mcdongle]

well it says Bedroom / Living room, So i suppose it could be a sofa bed.

[Untamed]

I seriously doubt it, looking at the plans. It will be like a motel that has bed and living area combined. I actually really like the look of them. Self contained, easy care, presumably with parking provided. Ideal for a single or couple.

well it says Bedroom / Living room, So i suppose it could be a sofa bed.

[KW]

I seriously doubt it, looking at the plans. It will be like a motel that has bed and living area combined. I actually really like the look of them. Self contained, easy care, presumably with parking provided. Ideal for a single or couple.

Exactly.  Its a hotel room.  It can only contain a bed or a couch, but not both.  If you actually want to live there, you will need to use a sofa bed. So its not designed for living, but merely visiting.  Its good for nothing but an AirBnB.  If you think you would enjoy living in a tiny hotel room for the rest of your life, then you are a rare creature and not the norm.   That land could have been used to provide real housing for local people.

[Untamed]

I will take another look at the plans, but my daughter recently rented a flat in Christchurch - the owner purchased a block of motels, did them up and rented them out as flats. It was probably a similar size to the one you are talking about. Plenty of room for a queen sized bed and a two seater sofa, plus small table and chair. Full kitchen and separate bathroom. A nice, sunny, easy care flat. So I don't see anything wrong with these units for people looking for affordable housing. It would sure beat traditional rental scenarios for many single people or couples - and not only young people.

NZ needs to start thinking outside the square when it comes to housing. There are plenty of single people taking up a full house, when they don't need to - and often don't actually want to. Better to provide this type of housing as an alternative option for those in this category - that frees up traditional housing for families who need it.

We have to change the way we view housing. We can't continue on the way we have been for centuries. Tiny houses and minimalist units like these ones, absolutely have a place now.

By the way - it is "real housing." Many people these days would prefer not to be a slave to their property, and would far rather spend their free time doing things they enjoy, not being tied to property and land maintenance every weekend. These may not suit you, but I'd be perfectly happy to live in one - maybe not quite yet - but down the track.

Exactly.  Its a hotel room.  It can only contain a bed or a couch, but not both.  If you actually want to live there, you will need to use a sofa bed. So its not designed for living, but merely visiting.  That land could have been used to provide real housing.

[KW]

I will take another look at the plans, but my daughter recently rented a flat in Christchurch - the owner purchased a block of motels, did them up and rented them out as flats. It was probably a similar size to the one you are talking about. Plenty of room for a queen sized bed and a two seater sofa, plus small table and chair. Full kitchen and separate bathroom. A nice, sunny, easy care flat. So I don't see anything wrong with these units for people looking for affordable housing. It would sure beat traditional rental scenarios for many single people or couples - and not only young people.

NZ needs to start thinking outside the square when it comes to housing. There are plenty of single people taking up a full house, when they don't need to - and often don't actually want to. Better to provide this type of housing as an alternative option for those in this category - that frees up traditional housing for families who need it.

We have to change the way we view housing. We can't continue on the way we have been for centuries. Tiny houses and minimalist units like these ones, absolutely have a place now.

By the way - it is "real housing." Many people these days would prefer not to be a slave to their property, and would far rather spend their free time doing things they enjoy, not being tied to property and land maintenance every weekend. These may not suit you, but I'd be perfectly happy to live in one - maybe not quite yet - but down the track.

If you look at the plans, you will see the bed pictured is clearly a sofa bed, not a normal bed.  So they are smaller than a standard Queen.   

For less than the price of one of these studio units, you can buy a "real" 2 bedroom unit (with actual bedrooms) with a garage and garden.  So they are definitely not "affordable" - they are ridiculously expensive compared to what that money will buy you elsewhere in Christchurch. 
Like this one  https://www.trademe.co.nz/a/property/residential/sale/canterbury/christchurch-city/edgeware/listing/3795136502

You could even have a child or a pet in that unit.  Not to mention if you were single you could get a flatmate in and halve your living costs.  Now that's affordable.

[Untamed]

OK, I am a little confused. I have read the info properly now and see that these units are to sell - not to rent - but having said that, the info towards the end of the document talks about potential weekly rental of $400/week. Not exactly sure how this works - is that rental information intended for potential buyers who may buy to rent it out?

I would think $400/week rent for one of those units would be pretty competitive for that area. I think I would rather rent one at that price, than rent a scruffy traditional house for about the same - speaking as a single person. But yes, I do agree that it is overpriced to buy.

[KW]

They'll probably end up becoming emergency housing.  
If you were prepared to pay $400 a week for somewhere to live, you could just team up with a friend and rent something really nice in Merivale   
https://www.trademe.co.nz/a/property/residential/rent/canterbury/christchurch-city/st-albans/listing/4006407492

[Basil]

https://www.nzherald.co.nz/business/slowest-auckland-house-sales-in-month-for-quarter-century-barfoot-thompson/NOBPSS4SCFFWTN7RZXDL5C2PJQ/

[Shareguy]

Yes interesting. Also notice rents seem to be on the way back up as landlords pass on increased costs.

[KW]

Yes interesting. Also notice rents seem to be on the way back up as landlords pass on increased costs.

Rent increases are now weighted to the Nov-March period due to the Labour rent freeze for six months in 2020 and the law that says you can only put rents up every 12 months.  

[Basil]

These youngsters have only ever known good times.    When the custard really starts hitting the fan they will wish they had sold the Yacht as well.
https://www.stuff.co.nz/business/better-business/131427521/townhouse-developer-selling-his-luxury-cars-ditches-private-jet-travel.

[KW]

Australia once again showing how useless the FMA in NZ is - this is what should have happened to all those promoters of real estate investment funds who were selling the funds to little old grannies living in over 60's units.  Instead all they got was a letter.
https://www.afr.com/companies/financial-services/westpac-banned-from-selling-three-funds-over-legal-breach-20230317-p5cszf

The corporate watchdog has banned Westpac from selling three funds, which it owns through BT and are worth a combined $4.2 billion, to retail investors just months before their acquisition by Mercer is processed.
BT had failed to provide enough information about the three products to meet its obligations under laws designed to make sure financial products only targeted consumers they would be appropriate for, the Australian Securities and Investments Commission said.