Keith Melville

Sandy Milne's claim (Beacon letters, March 19) that greed rules the rental market, should be seen in the context of reality.

I applaud Mr Milne’s generosity for renting his home at way below the market rental price.

But his claim that the market price of other rentals is based on greed is simply a myth he continues to perpetuate.

He should have a look at the rental market statistics as outlined on interest.co.nz this week.

The article describes rental returns in the suburbs and districts examined (including Whakatāne) as paltry for three-bedroom homes and not much better for the two-bedroom category. Only the one-bedroom category gives investors a chance to make money.

In Whakatāne, the gross rental yield in the fourth quarter of last year was 5.4 percent, leaving the investor with a weekly surplus of $48. The figures do not take into account rates, insurance, repairs and maintenance, and periods when the property is vacant.

I assume you must be quite wealthy Mr Milne and good on you for being generous, but please don't assume that the rest of us who own rentals are driven by greed.