Just settled on a property. Having seen dozens of properties over the last 3 months, here’s my findings.

Construction quality of New builds is hugely variable

• Time and time again, have seen brand new builds that are so poorly constructed and finished. While many of the niggles are purely cosmetic, some things are structural like poorly finished foundations, concrete not poured correctly to the edge and resullting in visible cracks inside of the house (tiling).

• Water damage to timber framing in builds still under construction and then covered up unbeknowance to the prospective purchaster.

• I’m still surprised that despite all the hoo har about leaky buildings, council inspectors still somehow let shoddy construction through.

We could be constructing our houses to be a lot more serviceable.

• It’s not easy to spot plumbing leaks with everything covered up behind white plaster board.. It’s only once a leak has been occuring for sometime that it may show and at that point, the owner will be up for quite a hefty bill for just trying to fix it. Will likely involve damage to timber framing as these days, the treatment is only typically up to H1.2.

• Bottom plates ought to be H3.2 throughout the entire house.

• I’m surprised that Laundry in garages aren’t sealed from possible flooding events. Time and time again, have visited a house, and seen visible signs the laundry area has flooded. Why we don’t seal this up (to protect timber framing), I wouldn’t know. Even the 1 year old house I’ve just purchased had this issue. Thankfully, the vendors agreed to fix it and seal it.

• Often when people re-do their bathrooms, rip out the lining they find they have structural damage due to slow and prolonged leaks that were occuring unbeknownce to them. Showers are a particular danger point. I feel we could vastly improve on our construction methods around this and I don’t know why we haven’t.

The most recent purchase may be the last rental I purchase in New Zealand for a while (in spite of my bank emphatically reaching out urging me to borrow again for yet another rental). And while Property as an asset class has so far been one of my best performing investments over the longer term, it all feels contrived / unreal and based off shaky fundamentals.

And why are these things so blooming expensive anyway? Why have we commoditized these things to the point we have? Houses are supposed to be people to live in first and foremost, not instruments of rampant financial speculation. Given the obvious social harm this has caused. Why haven’t any politicians stepped up urging to correct this ludicrous state of affairs?

Celestrial Dragon photo at the Latern Festival in Manukau Sports Bowl.

Plug in the USB adapter with your mouse into your Android’s phone’s USB port, power it off and then on again. Hopefully mouse will now be recognised and chances are you will be able to use your mouse to recover what you need from your Android device.

Applies to (my father’s) Oppo Reno8 5G lite

Given the way things are heading, financial and economic inequality will almost certainly continue to grow relatively unchecked. To be blunt and direct, I feel in the longer term we will possibly eventually see a societal structure that is more akin to some form of neo fedualism (for the lack of a less alarmist way to put it).

The ordinary people I sense these days are increasingly occupied with just financially surviving and providing for their families first and formost. I can’t see people finding the time and energy to organize to try and mitigate against the current tradjectory. (Be it through public policy deliberations, engaging in civics, and taking the time to talk with politicians in person come election time)

The ordinary folk are often so exhausted, they end up just consuming entertainment from the higher ups along with engaging with conspicious consumption as an analgesic to the malaise. In a way, we are being fed a steady diet of bread and circuses.

In addition, the fact that Donald Trump, a convicted felon, has been voted in for a second term is pretty much a stark warning that things are not well under the hood. A warning I feel the majority of us will no doubt ignore. I understand people want change, and want to bring down the establishment, but I feel Trump is very much a part of the establishment and the US people having now voted him in, will only exascerbate the growing issues faced by ordinary people.

In fact, I would like to engage with any Trump supporter in order to better understand their reasoning (and to learn more). It’s entirely possible I’ve missed things.

Karangahake Gorge Tunnel Photo. The Rail Tunnel loopRail Tunnel loop is one I’ve done plenty of times as a wind down walk after a bigger hike.

From a purely residential property investment perspective, the numbers I feel simply don’t make for a compelling case for buying in Hamilton City (Waikato, NZ). Current interest rate settings with low rent yields along with the quality of housing stock make this proposition challenging.

If you need to invest in property, I feel better value could be found in other areas such as Pukekohe (satellite town to Auckland) and the larger urban centres in Canterbury and will be redirecting my search to those areas. Bear in mind that we are also in the midst of a nationwide rental glut.

The issues I’ve found with Hamilton (from purely a property investing perspective) is that large areas of Hamilton have been marked as potential flood zones. Much of the land appears to be built on relatively soft ground and the majority of houses have various issues including (but not limited to) the need to spend tens of thousands to get it up to Healthy Homes standards.

Other issues encountered during my search is that the rent appraisals given by different agencies across the city appear to be about 5-10% above the current market (for new tenancies).

With all that said, I wish to emphasize that this is from the raw perspective of investing. If you are planning to buy a place in Hamilton to move in to (as an owner occupier), then it will obviously be quite a different story and would strongly advise not letting the above dissuade people making the move to Hamilton.

Hamilton city from a living perspective I feel is generally good with the river, the world renown and highly regarded Hamilton gardens, commnunity gully restoration initiatives along with many pockets of Hamilton having exceptionally strong neighbourly community relations / vibe (unlike Auckland). Not to mention access to a full range of amenities as you would expect to find in cities.

Hamilton City Council have also been exceptionally responsive to any enquiries I’ve had. Particulary around obtaining property information files and other related documentation.

The situation I feared two decades ago has materialised.

Facebook has begun and is already replacing having a website for a lot of businesses. Often when I do a search for a business, they now only have a Facebook page. The issue with this is that it effectively forces people to get a Facebook account to look at their page. (Scroll a handful of posts and FB demands you login or create an account)

I will admit to buying shares in Facebook (now Meta Inc.) as a mental analgesic to try and take the edge off of my disdain towards the company. The stock price has now quadruppled.

The old web is dead. 15 years ago I was panned for being “Oh so pessmistic” for suggesting what has happened today.

Admittedly, I really dislike the “new” Internet and have responded by drastically cutting down my personal use of it

Quick shot of the still waters of Auckland Viaduct Harbour

Personal opinion only as a retail investor and an ordinary member of the public.

First learned of this company, Smart Parking Ltd while trawling through the ASX company listings.

This is a company that appears to predominantly generates revenue off of identifying contractual breaches of parking conditions at various business’ private car parking (retailers, shopping centres, etc) remotely via video / CCTV and then issuing the registered owner or keeper of the infringing vehicle a “Parking Breach Notice” (PBNs) with the view of hoping the recipient will pay up without challenging it.

Disclosure / Personal analysis:

Have “pilot bought” stock (Buying an initial parcel of shares with the view of adding to the Long position) into this company to help take the edge off of my personal moral indignation towards this company (similar to what I did with Facebook, now Meta Inc. a few years ago admittedly – as a counteracting mental analgesic).

This action is based off knowing how toothless the Consumer Watchdog Agencies can be on both sides of the Tasman and globally along with the public never seemingly bothering to kick up enough fuss (nor bothering to understand the rights available to them under relevant consumer / trading laws), as such, I don’t hold much hope of meaningful action being taken to curtail this company’s activities.

While I’ve never received a PBN from this company or others like them, I have gone and reported this company (in vain admittedly) to the Commerce Commission with a screenshot of the investor presentation where they seem to promote how many PBN’s they are able to issue as their key revenue strategy, but I only expect to hear crickets frankly (I reported this company prior to buying shares).

Known trading names:
Smart Parking Ltd., Smart Parking Technology, Smart Compliance Management, Smart Comply.

Stream of consciousness and other personal thoughts garnered throughout the week and which will be added to as the week rolls on. These thoughts are unrefined, unquantified, unverified, and raw. Any of these may be either be edited, deleted or otherwise spawn out into its own separate post particularly if new information comes to light…

• Upward pressure on House prices in Hamilton. Thought seriously about buying in Hamilton and have been looking around with the serious intention to buy, but can’t make the cash flow work in a way that is acceptable me. It needs to be at least cash flow neutral with a 50% deposit and with all ongoing costs factored in (council rates, insurance, maintenance), many just aren’t except old houses which frankly the majority I’ve seen need a lot of work to meet Healthy Home compliance along with preventative maintenance.

• From a personal conscience perspective, I still believe houses should be regarded as a place to live in, not as financial instruments of speculation. Talked to politicians in the lead up to the last election to express my concerns and the obvious damage it was inflicting on Society, but frankly was met with apathy, especially from the National Party candidates. Came away with the vibe that investing in houses is to be rewarded and encouraged (hence what I’m doing, although have concerns about it morally)

• If you’re intending to profit primary from capital gain (as oppose to eventually deriving an income from rent), isn’t it technically a taxable activity, regardless of how long you’ve held on to it?.

• A lick of paint and new cabinetry isn’t necessary going to prompt me to buy a place. I need to find out if the stuff in the walls is in good nick (does it need rewiring, re-plumbing?). Also, frankly, can see a lot of houses, particularly the older 1940s-1950s dwellings with clay tiles in Hamilton will need to have their roofs replaced. Also, the detailing of these ex-state houses of the era with a gable end I feel is a water ingress hazard.

• I’m also concerned about the quality of tenants a place will likely to attract. I sense I’m not going to get the same long term company exec type families as I can with Rolleston / Christchurch given the age of Hamilton properties.

• End up pilot buying shares in a morally questionable company that specializes in sending out inflated parking breach notices by way of remote video enforcement (ASX:SPZ). From a personal conscience POV, I would like to see the company crash and burn, and in fact had written to the Commerce Commission to express my concerns. But from a cold analytical business perspective, given the lack consumer watchdog teeth in many jurisdictions and the public apathy I’ve seen around the place, feel and fear these companies are going to thrive.

 

 

Older Stream of Consciousness thoughts can be found here.

I found the UI of the McDonalds App excrutiatinugly slow and even then it inexplicably hangs in a perpetual loop. Haven’t felt the effort was worth it for a discount off of their high prices for mediocre food offerings. This app I feel exhibits Bipolar-like behaviour and it’s a gamble as to whether the app will behave – half the time I’ve had to step out of the waiting line due to this app misbehaving.

Originally installed it and decided to try out McDonalds again after a long absence because they were running their weekly specials though it looks they’ve since stopped those and replaced it with some flashy but incredibly glitchy in-app game thing (their version of Monopoly)

Uninstalled the app. I feel this company isn’t respectful of my time nor appreciative of my custom (particularly if they are going to release such an obviously and incredibly unpolished app as this to the public) and I expect it will be a while before darken their doors again.

Unfortunately, I sense property prices may be on their (silent and sneaky) march upwards despite media reporting to the contrary and despite house prices still being ludicrous.

The real issue I have with inflated house prices is that it’s makes everyone’s lives difficult and apart from the issues faced with aspiring first home buyers (essentially whom we’ve failed to maintain the social contract with). It also presents issues elsewhere including

• For existing homeowners who may want to move to another property more suited to their current living arrangement, this includes (but limited to) when up sizing for a growing family, downsizing for when the kids have left home, when a marriage dissolution occurs, or moving to a place closer to their work. These costs include (again not limited to). Bridging finance, agents fees based off a percentage of the value of the property

• Takes money away from the productive economy. People will more likely end up prioritizing their spending towards keeping a roof over their heads.

Unfortunately, I can’t see this changing anytime soon. There’s still too much money flowing around that is looking for a home (pun not intended) born out from people who missed out last time, to investors trying to front run the market with the expectation of further rate falls, to increasing cost of compliance red tape surrounding corporates trying to engage in regulatory capture, Health and Safety, Anti Money Laundering and increasing provision to guard gainst all manner of increasing exposure to liablity events while we are trying to build new housing (everyone is mobilizing to arse cover).

I want the NZ National Party removed out of power. I didn’t vote for these clowns. I loathe to jump on the bandwagon, but after some thought pertaining to National’s policies and actions, I now have to reluctantly agree with the “Worst government ever” statement

The NZ National Party after having talked to the candidates in the lead up to our last election including through to their policies and actions to date are frankly the most uninspiring, disconnected and uninnovative bunch I’ve ever witnessed.

Crap traffic, crap transport planning. The thought of going grocery / supply shopping on a Saturday invokes a sense of CBF’d. You look at the traffic on Google Maps and know you’ll be dealing with congestion particularly the hassle of trying to negotiate a crowded parking lot with a one (or more) ton contraption.

Could do it on a Public Transport, but the thought of lugging all your groceries on buses is a hassle, particularly if they’re in large sacks. Plus you are effectively limited to going to one shop.

May be in this sense, the Dutch have it sussed with their cities. Mixed use zone planning. Be able to pop down the stairs and have almost everything you need within walking distance.

Yeah, I’m tired of this City (Auckland).

Takapuna Winter Lights Festival…

Traffic was jammed up for about a 2 km radius. Lucky I took the bus this time.

Personal opinion only as an ordinary consumer and occasional traveller.

I don’t believe there is a car rental ombudsman as such in Australia. There is the Australian Car Rental Conciliation Service run by AFIA (Australian Finance Industry association) which may be an option to take before lodging the issue with xCAT in your state or territory and prior to taking it to court.

AFIA I understand is an industry membership body and the Australian Car Rental Conciliation Service I understand assesses things according to their own “code of conduct” which may or may not necessarily align with Australian Consumer Law in all areas.

Read the ACCC PDF in relation to “Fair Trading in the car rental sector” to understand the rights and remedies available to car hirers under Australian Consumer Law.

It is also important to note car rental hire agreements do not override Australian Consumer Law provisions.

As an aside and to be honest, the car rental industry in Australia I feel in my opinion overall has not been overly upfront with some of their conduct. Some of these less than honest business tactics I feel are more pronounced with some of the independent franchises for some reason.

It is also important to understand that Car rental agents as friendly and helpful as they may appear are not your friends. Many of them are trained up as salespeople (coerced by management along with being offered monthly bonus incentives) to upsell extras to hirers and again the upselling aspect appears to be more pronounced with certain outlets run by independent franchises. It is important to carefully check the hire agreements to ensure they haven’t snuck on any unwanted adds ons.

Car rental horror stories examples (with a happy end for the car hirer concerned)…

• Post on Whirlpool – A case of a hirer involved with an at fault traffic accident where the car rental company tried to wiggle out of their responsibilities.

• Post on Reddit – SIXT Australia expensive windsheild replacement.

I’ve even had my own spat (though a lot more benign than the two examples above) with a large Dandenong based independent car rental franchisee (formerly Thrifty, now Sixt) whom I caught sticking on charges that were clearly outside of the written hire agreement and who I also caught writing their own 5 star testimonials.

Some of the stories regarding SIXT Australia I feel are pretty disappointing considering the network crows about being a division of the NRMA Motoring and Services group (I have my own thoughts about the NRMA brand and believe they’re now a far cry from their hay days having simply turned into another for profit focussed corporate these days, but that is for another post)

The Issue is that quite a few companies “try things on” in order to turn a profit (and hope people don’t challenge it or take it further) and rental car companies in Australia are no exception.

Many car rental companies I feel try to cut their headline pricing in order to get customers through the door and then attempt to turn a profit through upselling extra and at times with other less than upfront antics (suspicious damage claims). I wouldn’t be the least bit surprised to learn that quite a few car rental places turn most of their profit through damage repair fees, selling extra “peace of mind” add ons and other ancillary revenues as opposed to the actual hiring out of a vehicle.

Switching back to 100% growth focus (from balanced) because stonks (a meme spelling of “stocks” / “Shares”) only go up apparently.

I can’t make heads or tails of anything frankly as a lay person.

We’ve been in the longest ever secular bull market starting around 2008 Global Financial Crisis and don’t understand why there is so much overflowing optimism.

• Something bad happens stonks go up
• Something good happens stonks go up
• Nothing particular happens stonks go up.

Fundamental analysis is dead and meaningless.

I think some of it can be attributed to easier and cheaper access to the stock market adding additional money flow into the market.

As an aside, I learn that my Facebook shareholding (now Meta Inc.) which I bought to try and take the edge off of burning disdain towards Facebook has since quadrupled in price since I rage-bought them. Yes, may be I should feel good, but I don’t. I’m jaded, just incredibly jaded to see their stock price so high.

Picture of southern lights