Links 22 November 2019

Global Macro / Markets / Investing:





Unconventional Economist



    ‘Landlords could get up to $60,000 of rental income upfront under a new prepayment service launched for cash-strapped investors.

    Sydney-based proptech company FutureRent will pay residential landlords with tenanted properties up to 80 per cent of their rent upfront, capped at $60,000. Those with vacant properties can get up to four weeks’ rent, capped at $12,000, in advance while they find a tenant.’

    So we’ve got investors now borrowing their rents from the future.

    Next stop is tenants getting loans to pay rent. That’s the holy grail.

  2. IRELAND …

    The solution to Ireland’s housing crisis? Homes … John Spain … Ireland Central

    … extracts …

    … The Central Bank rules to prevent people from getting into trouble again require that first-time buyers need a deposit of ten percent and the amount they can borrow is capped at three and a half times their pay. The average price of a home in Dublin in the latest figures was €368,000, but in the better areas around the capital, it is at least €450,000 and a lot more in the most desirable areas, even for a modest home. …

    … The answer to the overall problem is always going to be more and more homes being built by developers, the effect of which will trickle down to all levels, lowering both purchase prices and rents. In an effort to accelerate this, the government has simplified the planning structure for schemes of over 100 homes and made other changes to encourage builders.

    But it’s going to take time, probably another five years before home completions reach the required level to stabilize the market and get prices and rents down to a reasonable level.

    It’s also worth noting that building lots of social housing is not always sustainable, despite the hue and cry by some media commentators and politicians on the left. Even though social housing rents are very low, more than half of Dublin City Council’s 24,400 tenants are behind on their rent, with 20 percent of them more than six months in arrears. Yet no one is ever evicted because then they present as homeless and the council has to put them up in emergency accommodation to keep them off the streets. … read more via hyperlink above …
    Central Bank of Ireland – Mortgage Measures
    … Local Government New Zealand says …

    Property owners and developers want more councils to be directed by Government under new planning rules … Marta Steeman … Stuff NZ

    … concluding …

    … (Local Government New Zealand says …) … The real obstacles to development were a restrictive planning regime, too much risk on councils regarding building and the inability to open up land for development because of poor infrastructure funding and financing tools.


    Good read on China & her neighbors

    “The Hong Kong protests are part of a larger regional backlash against China’s increasingly nefarious influence, especially its use of economic deals to co-opt regional elites and undermine the sovereignty of smaller nations. Beijing’s long-term strategy of charming regional states through attractive economic deals is looking increasingly fragile. Such sentiments are increasingly common across the region. “