Hello,
Welcome
to the sixth edition of the West Auckland monthly Residential Landlords
Newsletter.
I am a
landlord myself and have been for over 30 years. I have just brought another
rental investment last month in West Auckland. I currently own rental
properties in South Auckland, the 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
I hope
you will find it useful. I am available for free advice and opinion on any
residential real estate matter.
| Sale Prices | |||
| Suburb | Median selling price September 2014 | No sold | Days to sell |
| Titirangi | $738,000 | 18 | 41 |
| West Harbour | $661,000 | 15 | 28 |
| Glendene | $567,000 | 10 | 30 |
| Henderson | $566,000 | 51 | 25 |
| Massey | $530,000 | 33 | 27 |
| Royal Heights | $605,000 | 6 | 36 |
| Ranui | $532,500 | 26 | 43 |
| Sunnyvale | $498,500 | 10 | 26 |
| Green Bay | $652,000 | 4 | 34 |
| Laingholm | $579,000 | 5 | 100 |
| Te Atatu Peninsula | $722,500 | 18 | 23 |
| Te Atatu South | $627,500 | 22 | 23 |
| Glen Eden | $540,000 | 25 | 32 |
| Kelston | $468,000 | 9 | 35 |
| New Lynn | $537,778 | 20 | 22 |
| Swanson | $605,100 | 9 | 33 |
| Current Mortgage Rates 01/12/2014 | |||||
| Float | 1 yr fixed | 2 yr fixed | 3 yr fixed | 5 yr fixed | |
| ANZ | 6.74% | 6.09% | 6.19% | 6.39% | 6.59% |
| ASB | 6.75% | 5.99% | 6.19% | 6.39% | 6.49% |
| BNZ | 6.74% | 5.89% | 6.19% | 6.29% | 6.59% |
| Westpac | 6.59% | 6.09% | 6.39% | 6.65% | 6.99% |
| Kiwi Bank | 6.65% | 5.69% | 6.19% | 6.55% | 6.69% |
| Best of other lenders | 5.65% | 5.39% | 5.49% | 5.69% | 5.99% |
| Current Rents | ||
| 1st June - 30th Nov 14 | ||
| Glen Eden | Average Rent | Bonds Paid |
| 1 Brm Apartment | $219.00 | 5 |
| 2 Brm Apartment | $314.00 | 6 |
| 1 Brm flat | $261.00 | 8 |
| 2 Brm flat | $314.00 | 29 |
| 3 Brm flat | $392.00 | 6 |
| 2 brm house | $359.00 | 33 |
| 3 brm house | $419.00 | 104 |
| 4 brm house | $509.00 | 18 |
| Glenene | ||
| 1 Brm flat | $341.00 | 5 |
| 2 Brm flat | $339.00 | 11 |
| 2 brm house | $377.00 | 17 |
| 3 brm house | $423.00 | 69 |
| 4 brm house | $495.00 | 13 |
| Henderson | ||
| 1 Brm Apartment | $277.00 | 7 |
| 2 Brm Apartment | $406.00 | 6 |
| 1 Brm flat | $300.00 | 23 |
| 2 Brm flat | $328.00 | 44 |
| 3 Brm flat | $381.00 | 5 |
| 1 brm house | $300.00 | 10 |
| 2 brm house | $384.00 | 49 |
| 3 brm house | $426.00 | 216 |
| 4 brm house | $513.00 | 93 |
| 5+ brm house | $622.00 | 11 |
| 1 room | $228.00 | 8 |
| Kelston | ||
| 1 Brm Apartment | $288.00 | 27 |
| 1 Brm flat | $269.00 | 13 |
| 2 Brm flat | $349.00 | 20 |
| 3 Brm flat | $400.00 | 5 |
| 1 brm house | $261.00 | 5 |
| 2 brm house | $380.00 | 23 |
| 3 brm house | $432.00 | 48 |
| 4 brm house | $475.00 | 8 |
| New Lynn | ||
| 1 Brm Apartment | $281.00 | 18 |
| 2 Brm Apartment | $349.00 | 11 |
| 1 Brm flat | $280.00 | 8 |
| 2 Brm flat | $342.00 | 46 |
| 3 Brm flat | $387.00 | 6 |
| 2 brm house | $366.00 | 32 |
| 3 brm house | $441.00 | 81 |
| 4 brm house | $545.00 | 21 |
| 1 room | $187.00 | 10 |
| Ranui | ||
| 2 brm house | $366.00 | 8 |
| 3 brm house | $410.00 | 72 |
| 4 brm house | $480.00 | 10 |
| Royal Heights/Massey | ||
| 2 Brm flat | $329.00 | 12 |
| 2 brm house | $356.00 | 18 |
| 3 brm house | $416.00 | 135 |
| 4 brm house | $494.00 | 40 |
| 5+ brm house | $579.00 | 11 |
| Te Atatu South | ||
| 1 Brm flat | $262.00 | 7 |
| 2 Brm flat | $370.00 | 14 |
| 2 brm house | $367.00 | 17 |
| 3 brm house | $443.00 | 53 |
| Te Atatu Peninsula | ||
| 2 Brm Apartment | $417.00 | 5 |
| 1 Brm flat | $268.00 | 5 |
| 2 brm house | $375.00 | 20 |
| 3 brm house | $452.00 | 69 |
| 4 brm house | $525.00 | 14 |
| Titirangi | ||
| 1 Brm flat | $316.00 | 9 |
| 2 Brm flat | $361.00 | 13 |
| 1 brm house | $297.00 | 7 |
| 2 brm house | $401.00 | 30 |
| 3 brm house | $466.00 | 72 |
| 4 brm house | $528.00 | 23 |
| 5+ brm house | $735.00 | 5 |
| West Harbour | ||
| 1 Brm flat | $293.00 | 6 |
| 2 brm house | $367.00 | 17 |
| 3 brm house | $467.00 | 84 |
| 4 brm house | $621.00 | 35 |
| 5+ brm house | $695.00 | 16 |
| Western Beaches/Rural | ||
| 1 Brm flat | $316.00 | 5 |
| 1 brm house | $277.00 | 6 |
| 2 brm house | $351.00 | 40 |
| 3 brm house | $469.00 | 55 |
| 4 brm house | $561.00 | 23 |
| 5+ brm house | $593.00 | 8 |
| 1 room | $183.00 | 7 |
| ||||||
|
Sunnyvale
| ||||||
|
Date
|
Median selling price
|
5 year gain %
| ||||
|
April 1994
|
$ 118,500.00
|
| ||||
|
April 1999
|
$ 178,000.00
|
50.2
| ||||
|
April 2004
|
$ 212,500.00
|
19.4
| ||||
|
April 2009
|
$ 300,000.00
|
41.2
| ||||
|
April 2014
|
$ 447,500.00
|
49.1
| ||||
|
Over 20 years
|
|
277.6%
| ||||
| ||||||
|
Green Bay
| ||||||
|
Date
|
Median selling price
|
5 year gain %
| ||||
|
Sep 1994
|
$ 177,500.00
|
| ||||
|
Sep 1999
|
$ 205,000.00
|
15.5
| ||||
|
Sep 2004
|
$ 360,000.00
|
75.6
| ||||
|
Sep 2009
|
$ 399,500.00
|
11.0
| ||||
|
Sep 2014
|
$ 610,000.00
|
34.5
| ||||
|
Over 20 years
|
|
243.7%
| ||||
L.V.R The Property
Investor’s Window of Opportunity
Probably
the biggest window of opportunity handed to residential property investors was
the reserve banks introduction of the Loan to Value Ratio (LVR) announced in
August and introduced in October 2013.
In
simple terms banks are only allowed to provide mortgages to house buyers with a
minimum of 20% deposit. This applies to 90% of a banks residential mortgage
lending. At a stroke all the struggling would be first home buyers need not 10%
but 20% deposit.
This
effectively cuts out a large percentage of first home buyers. Since the reserve
bank could not affect the supply of houses quickly they attacked the demand
side by reducing the number of buyers able to buy. The belief was that this
would stop prices rising.
It is
now 12 months since the LVR rules were introduced, in the last 12 months property
prices in West Auckland have risen by 10.0% (REINZ stats). The reserve bank
believes that the introduction of the LVR was equivalent to a 0.25 – 0.50
increase in the OCR which would have probably increased the value of the $NZ
making it harder for NZ exporters.
The
reserve bank has also continually signalled that the LVR restrictions are a
short term measure. There was in fact a lot of speculation that the LVR would
be eased or removed this month- which never happened.
What
this means to residential property investors is that there still exists a
window of opportunity to buy without the competition of most first home buyers,
while mortgage rates are still very favourable and banks are aggressively
competing against each other to lend to investors so as to make up for the
missing business from first home buyers.
Personally
I was not interested in an Xbox or a flat screen T.V which banks give away;
when I brought another rental investment this month I opted for the cash to pay
for my legal fees and to plough back my property investments.
Given
this window of opportunity is it a good time to buy a rental investment even
when prices seem too high? I am convinced it is. If you need further evidence
read my West Auckland Landlords newsletter issue 3- google Blog John Goodrum.
Don’t
let the window of opportunity close on you.
Until
next time,
Best
wishes,
John
Goodrum
Licensee
Agent REAA 2008
021945140
09 838 8895
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