Hello,
Welcome
to the third edition of the West Auckland monthly Residential Landlords
Newsletter.
I am a
landlord myself and have been for over 30 years. I currently own rental
properties in South Auckland, North Shore and West Auckland. Being a high
preforming Real Estate Agent (top 1% in New Zealand) for over 25 years and always
working in West Auckland I know the real estate market and the rental market
very well.
In this
and ongoing newsletters I hope to provide ongoing up to date information
relevant to landlords who own rental properties in West Auckland.
Regular
features will include:
- Current sale prices
- Current mortgage rates
- Current rents
- A monthly suburb spotlight review
- A relevant feature article each month
|
Sale Prices
| |||
|
Suburb
|
Median selling price July 2014
|
No sold
|
Days to sell
|
|
Titirangi
|
$ 636,000.00
|
23
|
30
|
|
Hobsonville
|
$ 810,000.00
|
5
|
32
|
|
West Harbour
|
$ 633,000.00
|
16
|
42
|
|
Glendene
|
$ 670,000.00
|
6
|
63
|
|
Henderson
|
$ 580,000.00
|
45
|
33
|
|
Massey
|
$ 495,000.00
|
35
|
33
|
|
Royal Heights
|
-
|
-
|
-
|
|
Ranui
|
$ 536,000.00
|
17
|
31
|
|
Sunnyvale
|
$ 542,188.00
|
5
|
58
|
|
Green Bay
|
-
|
-
|
-
|
|
Te Atatu Peninsula
|
$ 729,500.00
|
16
|
23
|
|
Te Atatu South
|
$ 519,500.00
|
28
|
28
|
|
Glen Eden
|
$ 465,000.00
|
33
|
30
|
|
Kelston
|
-
|
-
|
-
|
|
New Lynn
|
$ 465,000.00
|
38
|
27
|
Source REINZ
| Current Mortgage Rates 19/08/2014 | |||||
Float
|
1 yr fixed
|
2 yr fixed
|
3 yr fixed
|
5 yr fixed
|
|
ANZ
|
6.74%
|
6.05%
|
6.49%
|
6.65%
|
7.15%
|
ASB
|
6.75%
|
6.09%
|
6.40%
|
6.65%
|
6.99%
|
BNZ
|
6.74%
|
5.99%
|
6.39%
|
6.59%
|
6.99%
|
Westpac
|
6.59%
|
6.09%
|
6.39%
|
6.65%
|
6.99%
|
Kiwi Bank
|
6.40%
|
5.99%
|
6.39%
|
6.65%
|
6.95%
|
Best of other lenders
|
5.64%
|
5.75%
|
5.80%
|
5.95%
|
6.79%
|
Source
– J Goodrum – Internet search
| Current Rents | ||
| Feb 14 - Jul 14 | ||
| Glen Eden | Average Rent | Bonds Paid |
| 2 Brm flat | $310.00 | 17 |
| 2 brm house | $339.00 | 24 |
| 3 brm house | $411.00 | 105 |
| 4 brm house | $525.00 | 18 |
| Glendene | ||
| 1 Brm flat | $319.00 | 6 |
| 2 Brm flat | $333.00 | 14 |
| 2 brm house | $369.00 | 18 |
| 3 brm house | $410.00 | 57 |
| 4 brm house | $494.00 | 18 |
| Henderson | ||
| 1 Brm Apartment | $294.00 | 6 |
| 2 Brm Apartment | $407.00 | 9 |
| 3 Brm Apartment | $405.00 | 6 |
| 1 Brm flat | $291.00 | 24 |
| 2 Brm flat | $330.00 | 49 |
| 1 brm house | $250.00 | 5 |
| 2 brm house | $375.00 | 46 |
| 3 brm house | $428.00 | 216 |
| 4 brm house | $512.00 | 95 |
| 5+ brm house | $607.00 | 10 |
| 1 room | $278.00 | 10 |
| Kelston | ||
| 1 Brm Apartment | $280.00 | 16 |
| 2 Brm Apartment | $390.00 | 5 |
| 1 Brm flat | $265.00 | 14 |
| 2 Brm flat | $328.00 | 16 |
| 2 brm house | $351.00 | 21 |
| 3 brm house | $422.00 | 54 |
| 4 brm house | $465.00 | 15 |
| 5+ brm house | $593.00 | 5 |
| 1 room | $165.00 | 7 |
| New Lynn | ||
| 1 Brm Apartment | $266.00 | 23 |
| 2 Brm Apartment | $325.00 | 13 |
| 1 Brm flat | $260.00 | 11 |
| 2 Brm flat | $334.00 | 61 |
| 3 Brm flat | $391.00 | 12 |
| 2 brm house | $379.00 | 31 |
| 3 brm house | $439.00 | 89 |
| 4 brm house | $522.00 | 26 |
| 5+ brm house | $567.00 | 6 |
| 1 room | $200.00 | 9 |
| Ranui | ||
| 2 brm house | $355.00 | 9 |
| 3 brm house | $396.00 | 68 |
| 4 brm house | $466.00 | 10 |
| Royal Heights/Massey | ||
| 2 Brm flat | $331.00 | 17 |
| 2 brm house | $364.00 | 25 |
| 3 brm house | $410.00 | 151 |
| 4 brm house | $468.00 | 35 |
| 5+ brm house | $556.00 | 7 |
| Te Atatu South | ||
| 1 Brm flat | $280.00 | 8 |
| 2 Brm flat | $353.00 | 20 |
| 2 brm house | $378.00 | 12 |
| 3 brm house | $448.00 | 52 |
| Te Atatu Peninsula | ||
| 2 Brm Apartment | $401.00 | 5 |
| 2 Brm flat | $344.00 | 5 |
| 2 brm house | $381.00 | 20 |
| 3 brm house | $454.00 | 67 |
| 4 brm house | $510.00 | 21 |
| Titirangi | ||
| 1 Brm flat | $329.00 | 10 |
| 2 Brm flat | $333.00 | 6 |
| 1 brm house | $271.00 | 6 |
| 2 brm house | $382.00 | 26 |
| 3 brm house | $475.00 | 64 |
| 4 brm house | $580.00 | 22 |
| West Harbour | ||
| 1 Brm flat | $310.00 | 9 |
| 2 Brm flat | $331.00 | 7 |
| 2 brm house | $365.00 | 11 |
| 3 brm house | $449.00 | 86 |
| 4 brm house | $575.00 | 43 |
| 5+ brm house | $678.00 | 16 |
| Western Beaches | / Rural | |
| 1 Brm flat | $237.00 | 5 |
| 1 brm house | $265.00 | 7 |
| 2 brm house | $390.00 | 31 |
| 3 brm house | $461.00 | 52 |
| 4 brm house | $521.00 | 26 |
| 5+ brm house | $575.00 | 5 |
| 1 room | $180.00 | 8 |
Source NZ Government building & housing
| ||||||
|
Titirangi
| ||||||
|
Date
|
Median selling price
|
5 year gain %
| ||||
|
June 1994
|
$ 156,000.00
|
| ||||
|
June 1999
|
$ 252,250.00
|
61.7
| ||||
|
June 2004
|
$ 350,000.00
|
38.8
| ||||
|
June 2009
|
$ 506,250.00
|
44.6
| ||||
|
June 2014
|
$ 613,500.00
|
21.1
| ||||
|
Over 20 years
|
|
293.3%
| ||||
| ||||||
|
Hobsonville
| ||||||
|
Date
|
Median selling price
|
5 year gain %
| ||||
|
June 1994
|
$ 227,000.00
|
| ||||
|
June 1999
|
$ 305,000.00
|
34.6
| ||||
|
June 2004
|
$ 378,000.00
|
23.9
| ||||
|
June 2009
|
$ 607,000.00
|
60.6
| ||||
|
June 2014
|
$ 524,450.00
|
-
13.6
| ||||
|
Over 20 years
|
|
131.0%
| ||||
What will happen to
house prices and rents?
Every market is governed by supply and demand. Since a lot of builders “got burned” and lost a lot of money when the global financial crisis (GFC) hit in late 2007 they stopped building houses. This is because they were speculating and building houses with no buyer signed up for the property when it was finished. As a result of the GFC buyers were afraid of losing their jobs and put on hold the purchase of a new home.
Why buy now when prices even slipped back around 8 – 9% over 2008. In 2009 they recovered by around 5%. In 2010 they were relatively steady slipping back around 1.5%. By 2011 recovery was underway with a 3% rise and a further 6.5% in 2012. The rest they say is history with rises of close to 12% in 2013 – 2014.
Clearly buyers held off during 2008 – 2011 until they were confident that the economy was ok, their jobs more secure and that prices were rising and if they brought a home it would not go down in price. We had the perfect storm – well almost!
Rember what I said about supply and demand? Strong demand + short supply = higher prices. Here we are with a great big backlock (demand) of buyers who held off buying for almost 4 years coupled with a shortage of houses in Auckland because builders stopped speculative building.
All this was happening while New Zealand’s net migration was negative meaning that more people were leaving NZ than arriving to live here. It looks like 2014 will show a net migration gain of around 38,000. The majority will settle in Auckland adding to the demand.
It will take Auckland at least 5 years to close the supply gap to meet the demand and that is only if the fast track subdivision initiatives put in place by the Government and the Auckland Council actually do speed up house building otherwise it will be longer still.
With many of the building trades people from Auckland now working in Christchurch for their 10 year + rebuild we are already seeing delays due to the lack of trades people in Auckland. It all means that house prices will continue to rise in price. But wait there’s more..
We want warmer, drier homes so building specifications have been increased. All new homes have to have more insulation, double glazing and more council inspections during the build all adding to the cost of building a new home. This increase in turn leads to price increases for existing homes too.
Mr & Mrs landlord your properties will go up in value over the next 10 years. Historically they have doubled in price every 10 years – it may well be more this time. And what about rents? I brought a rental in Massey 20 years ago for $89,500. The rent was $115 per week. The rent today is $410 per week. Rent rises may lag a little behind property value rises but they will increase.
One final point. As house prices rise it becomes harder for buyers to afford their own home. What will they do? They will rent of course.
Until
next time,
Best
wishes,
Licensee Agent REAA 2008
thelegendofthewest@gmail.com
021945140
09 838 8895
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