Hello,
Welcome
to the eight 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 December 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 January 2015
|
No sold
|
Days to sell
|
Titirangi
|
$ 805,000
|
20
|
37
|
West Harbour
|
$ 925,000
|
7
|
28
|
Glendene
|
$ 610,000
|
10
|
29
|
Henderson
|
$ 552,000
|
55
|
22
|
Massey
|
$ 512,500
|
22
|
24
|
Royal Heights
|
$ 650,000
|
5
|
16
|
Ranui
|
$ 498,999
|
23
|
19
|
Sunnyvale
|
$ 508,500
|
6
|
33
|
Te Atatu Peninsula
|
$ 712,000
|
11
|
27
|
Te Atatu South
|
$ 495,000
|
14
|
32
|
Glen Eden
|
$ 580,000
|
25
|
30
|
New Lynn
|
$ 560,000
|
33
|
28
|
Source REINZ
Current Mortgage Rates 18/02/2015
|
|||||
Float
|
1 yr fixed
|
2 yr fixed
|
3 yr fixed
|
5 yr fixed
|
|
ANZ
|
6.74%
|
5.89%
|
5.99%
|
6.29%
|
6.49%
|
ASB
|
6.75%
|
5.99%
|
5.99%
|
6.39%
|
6.49%
|
BNZ
|
6.74%
|
5.89%
|
6.19%
|
6.29%
|
6.59%
|
Westpac
|
6.59%
|
5.99%
|
6.19%
|
6.39%
|
6.59%
|
Kiwi Bank
|
6.65%
|
5.69%
|
6.09%
|
6.29%
|
6.49%
|
Best of other lenders
|
5.75%
|
5.29%
|
5.19%
|
5.29%
|
5.29%
|
Source
– J Goodrum – Internet search
Current Rents
|
||
1st Aug 14 - 31st Jan 15
|
||
Glen
Eden
|
Average Rent
|
Bonds Paid
|
1 Brm
flat
|
$ 264.00
|
12
|
2 Brm
flat
|
$ 343.00
|
15
|
2 brm
house
|
$ 384.00
|
29
|
3 brm
house
|
$ 427.00
|
98
|
4 brm
house
|
$ 508.00
|
24
|
Glenene
|
||
1 Brm
flat
|
$ 329.00
|
7
|
2 Brm
flat
|
$ 350.00
|
15
|
2 brm
house
|
$ 372.00
|
21
|
3 brm
house
|
$ 430.00
|
66
|
4 brm
house
|
$ 484.00
|
7
|
Henderson
|
||
1 Brm
Appartment
|
$ 282.00
|
6
|
1 Brm
flat
|
$ 297.00
|
14
|
2 Brm
flat
|
$ 335.00
|
44
|
1 brm
house
|
$ 312.00
|
7
|
2 brm
house
|
$ 387.00
|
58
|
3 brm
house
|
$ 429.00
|
226
|
4 brm
house
|
$ 523.00
|
83
|
5+ brm
house
|
$ 578.00
|
12
|
1 room
|
$ 227.00
|
9
|
Kelston
|
||
1 Brm
Appartment
|
$ 287.00
|
29
|
1 Brm
flat
|
$ 257.00
|
16
|
2 Brm
flat
|
$ 345.00
|
18
|
2 brm
house
|
$ 386.00
|
23
|
3 brm
house
|
$ 435.00
|
57
|
4 brm
house
|
$ 485.00
|
12
|
New
Lynn
|
||
1 Brm
Appartment
|
$ 288.00
|
15
|
2 Brm
Appartment
|
$ 370.00
|
10
|
1 Brm
flat
|
$ 290.00
|
8
|
2 Brm
flat
|
$ 350.00
|
39
|
2 brm
house
|
$ 374.00
|
33
|
3 brm
house
|
$ 451.00
|
75
|
4 brm
house
|
$ 530.00
|
15
|
1 room
|
$ 191.00
|
9
|
Ranui
|
||
2 brm
house
|
$
371.00
|
9
|
3 brm
house
|
$
409.00
|
73
|
4 brm
house
|
$
469.00
|
11
|
Royal
Heights/Massey
|
Average
Rent
|
Bonds
Paid
|
1 Brm
flat
|
$ 274.00
|
5
|
2 Brm
flat
|
$
337.00
|
9
|
3 Brm
flat
|
$
390.00
|
6
|
2 brm
house
|
$
352.00
|
20
|
3 brm
house
|
$
420.00
|
133
|
4 brm
house
|
$
514.00
|
39
|
5+ brm
house
|
$
544.00
|
11
|
Te
Atatu South
|
||
1 Brm
flat
|
$
262.00
|
8
|
2 Brm
flat
|
$
350.00
|
13
|
2 brm
house
|
$
392.00
|
17
|
3 brm
house
|
$
441.00
|
51
|
4 brm
house
|
$
494.00
|
7
|
5+ brm
house
|
$
567.00
|
5
|
Te
Atatu Peninsula
|
||
2 Brm
Appartment
|
$ 432.00
|
9
|
2 brm
house
|
$
379.00
|
19
|
3 brm
house
|
$
449.00
|
69
|
4 brm
house
|
$
574.00
|
15
|
5+ brm
house
|
$
712.00
|
6
|
Titirangi
|
||
1 Brm
flat
|
$
292.00
|
11
|
2 Brm
flat
|
$
361.00
|
13
|
1 brm
house
|
$
317.00
|
10
|
2 brm
house
|
$
400.00
|
28
|
3 brm
house
|
$
468.00
|
80
|
4 brm
house
|
$
555.00
|
26
|
5+ brm
house
|
$
679.00
|
5
|
West
Harbour
|
||
2 brm
house
|
$
371.00
|
20
|
3 brm
house
|
$
481.00
|
73
|
4 brm
house
|
$
635.00
|
31
|
5+ brm
house
|
$
700.00
|
13
|
Western
Beaches/Rural
|
||
1 Brm
flat
|
$ 324.00
|
5
|
1 brm
house
|
$
393.00
|
5
|
2 brm
house
|
$
355.00
|
43
|
3 brm
house
|
$
468.00
|
56
|
4 brm
house
|
$
582.00
|
18
|
5+ brm
house
|
$
644.00
|
8
|
Source
NZ Government building & housing
|
||||||
Glen Eden
|
||||||
Date
|
Median selling price
|
5 year gain %
|
||||
Jan 1994
|
$ 105,000.00
|
|||||
Jan 1999
|
$ 136,000.00
|
29.5
|
||||
Jan 2004
|
$ 271,000.00
|
99.3
|
||||
Jan 2009
|
$ 314,000.00
|
15.9
|
||||
Jan 2014
|
$ 580,000.00
|
84.7
|
||||
Over 20 years
|
452.3%
|
|||||
|
||||||
Green Bay
|
||||||
Date
|
Median selling price
|
5 year gain %
|
||||
Jan 1994
|
$ 105,000.00
|
|||||
Jan 1999
|
$
183,000.00
|
74.3
|
||||
Jan 2004
|
$ 239,500.00
|
30.9
|
||||
Jan 2009
|
$ 367,250.00
|
53.3
|
||||
Jan 2014
|
$ 530,000.00
|
44.3
|
||||
Over 20 years
|
404.7%
|
|||||
Source
NZ dept of statistics
Building
Inspections
when
Buying
or Selling your Rental
Buying:
To protect your investment it is
important to know what you are buying. There are too many risks buying today
and not getting a professional building report before going unconditional.
The
risk of buying a property with weather tightness issues is high. There are
perhaps thousands of properties in West Auckland which are suffering from that
or have potential weather tightness issues.
I
believe that for the few hundred dollars involved a professional building
inspection is essential today. Weather tightness problems occur mainly in
properties built between 1994 and 2004.
The
major causes were:
- The cladding systems such as fibre cement sheets and other monolithic cladding systems to give them the popular Mediterranean look.
- The use of untreated framing timber which had no protection from rot.
- Construction without a cavity (which allows any moisture to dry out).
- Designs that incorporate complex roof structures and “flat” roof systems including very small or no eaves.
- The breakdown of the building apprenticeship system which many say resulted in poorer quality workmanship during construction
Other Issues
As well
as weather tightness a professional building inspection report will inspect and
identify many other faults perhaps not readily seen by the purchaser. The
report should cover structural, roof, interior, exterior, crawl space,
electrical, plumbing, heating and ventilation and so on.
Who
to Use?
Be
careful there are a lot of self-professed but not qualified as home inspectors
out there. Just because a builder or ex builder claims to have 20 years
building experience that does not qualify them in any way as a home inspector.
It qualifies them as a builder.
Professionally
qualified house inspectors have had to study all aspects of house inspection
including drainage, structural, roof, exterior, interior, plumbing, electrical,
heating and ventilation and more. Inspectors then need to sit and pass
examinations to obtain their inspector qualifications.
House
inspector are trained and qualified to identify problems not fix them. They are
not builders or plumbers or electricians or structural engineers. After all you
would not expect a builder to be able to fix electrical problems or plumbing
issues would you?! Each is a specialised skill.
The
largest world wide house inspection professional organisation with qualified
members in 58 counties is the USA based Internachi- http://www.nachi.org/. All of their
members are qualified and insured house inspectors who are required to
undertake ongoing education every year and resit the qualifying examinations
every 3 years.
In NZ
there is a trade website called No Cowboys- see www.nocowboys.co.nz which gathers customer feedback and
is a good source for building related including house inspectors- go to http://www.nocowboys.co.nz/search/new-zealand/property-consultants. A buyers choice
home inspections which covers all of Auckland has the highest customer rating
at 98% satisfaction from 79 ratings at the time producing this newsletter.
Until
next time,
Best
wishes,
John
Goodrum
Licensee
Agent REAA 2008
021945140
09 838 8895
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