THE WEST AUCKLAND RESIDENTIAL LANDLORD NEWSLETTER No. 9

Hello,

Welcome to the ninth 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 and another this month in Milwater, Siverdale. 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 March 2015	No sold	Days to sell
Titirangi	$             784,000	31	30
West Harbour	$             777,500	24	30
Glendene	$             676,500	12	30
Henderson	$             651,000	101	29
Massey	$             601,000	55	24
Ranui	$             525,000	31	19
Sunnyvale	$             540,000	30	35
Swanson	$             642,500	14	30
Te Atatu Peninsula	$             768,500	30	14
Te Atatu South	$             692,500	28	28
Glen Eden	$             564,000	40	30
New Lynn	$             583,750	36	29
Green Bay	$             750,000	7	28
Whenuapai	$             1,027,500	4	24
Kelson	$             626,500	12	28
Piha	$             662,000	5	11
Waiatarua	$             780,000	5	26

 Source REINZ

Current Mortgage Rates                29/04/2015
	Float	1 yr fixed	2 yr fixed	3 yr fixed	5 yr fixed
ANZ	6.74%	5.49%	5.39%	5.79%	5.89%
ASB	6.75%	5.59%	5.39%	5.45%	5.75%
BNZ	6.74%	5.49%	5.39%	5.55%	5.75%
Westpac	6.59%	5.99%	5.99%	5.99%	6.49%
Kiwi Bank	6.55%	5.59%	5.39%	5.39%	5.79%
Best of other lenders	5.75%	5.29%	5.19%	5.29%	4.99%

Source – J Goodrum – Internet search

Current Rents 1st Oct 14 - 31st Mar 15 Glen Eden Average Rent Bonds Paid 2 Brm Appartment  $      296.00 5 1 Brm flat  $      274.00 10 2 Brm flat  $      371.00 6 2 brm house  $      387.00 20 3 brm house  $      436.00 102 4 brm house  $      503.00 26 5+ brm house  $      530.00 5 Glenene     1 Brm flat  $      337.00 6 2 Brm flat  $      347.00 15 2 brm house  $      368.00 17 3 brm house  $      431.00 57 4 brm house  $      555.00 7 Henderson     1 Brm flat  $      298.00 14 2 Brm flat  $      341.00 41 3 Brm flat  $      444.00 5 1 brm house  $      285.00 5 2 brm house  $      387.00 62 3 brm house  $      431.00 222 4 brm house  $      527.00 71 5+ brm house  $      602.00 19 1 room  $      207.00 6 Kelston     1 Brm Appartment  $      290.00 30 2 Brm Appartment  $      315.00 6 1 Brm flat  $      237.00 12 2 Brm flat  $      338.00 18 2 brm house  $      365.00 21 3 brm house  $      434.00 54 4 brm house  $      485.00 12 5+ brm house  $      577.00 5 New Lynn     1 Brm Appartment  $      298.00 18 2 Brm Appartment  $      380.00 14 1 Brm flat  $      282.00 12 2 Brm flat  $      355.00 37 3 Brm flat  $      412.00 9 2 brm house  $      393.00 38 3 brm house  $      454.00 70 4 brm house  $      528.00 17 1 room  $      206.00 8 Ranui     2 brm house  $      366.00 8 3 brm house  $      409.00 64 4 brm house  $      471.00 13 Royal Heights/Massey Average Rent Bonds Paid 1 Brm flat  $      266.00 6 2 Brm flat  $      315.00 7 3 Brm flat  $      389.00 5 2 brm house  $      354.00 21 3 brm house  $      428.00 125 4 brm house  $      532.00 33 5+ brm house  $      577.00 14 Te Atatu South     1 Brm flat  $      263.00 7 2 Brm flat  $      355.00 12 2 brm house  $      410.00 10 3 brm house  $      451.00 40 4 brm house  $      531.00 9 Te Atatu Peninsula     2 Brm Appartment  $      437.00 7 2 brm house  $      378.00 15 3 brm house  $      461.00 66 4 brm house  $      574.00 19 5+ brm house  $      780.00 5 Titirangi     1 Brm flat  $      272.00 11 2 Brm flat  $      362.00 11 1 brm house  $      331.00 9 2 brm house  $      393.00 34 3 brm house  $      474.00 80 4 brm house  $      588.00 23 West Harbour     1 Brm flat  $      390.00 5 2 Brm flat  $      364.00 5 2 brm house  $      374.00 14 3 brm house  $      486.00 80 4 brm house  $      612.00 35 5+ brm house  $      719.00 15 Western Beaches/Rural   1 Brm flat  $      292.00 5 1 brm house  $      352.00 7 2 brm house  $      363.00 42 3 brm house  $      470.00 51 4 brm house  $      549.00 21 1 room  $      222.00 5

                        Source NZ Government building & housing

 

Spotlight on capital gains
Piha
Date	Median selling price	5 year gain %
Mar 1995	$                            158,000.00
Mar 2000	$                            245,000.00	55.1
Mar 2005	$                            740,000.00	202.0
Mar 2010	-	-
Mar 2015	$                            662,000.00	-
Over 20 years		319.0%
Spotlight on capital gains
Whenuapai
Date	Median selling price	5 year gain %
Mar 1995	$                            227,000.00
Mar 2000	$                           238,750.00	5.2
Mar 2005	-	-
Mar 2010	-	-
Mar 2015	$                           1,027,500.00
Over 20 years		352.6%

Source NZ dept of statistics

Meth or ‘P’ Testing In Rental Properties

Rental properties are a great way to build wealth and invest in your future. The rental income at the start covers most of the investment costs such as mortgage payments, rates, insurance and maintenance. In time the rent will not just cover these costs but pay for all of them and produce a surplus that can be used as an income.

The major advantage of residential rental property is that it appreciates in value.  In West Auckland the median prices have risen over 500% in the last 20 years.

There are of course things that can significantly damage the capital gain of an individual property.  A leaky building of course is one thing but a rental property that has been contaminated by methamphetamine – ‘meth’ or ‘P’ can also drastically reduce the value of a property.

The clean-up costs of a Meth contaminated home can run into the tens of thousands of dollars and in extreme cases can even require complete demolition.

 See the Western Leader article dated 18^th April 2014 follow the link: http://westernleader.realviewdigital.com/?iid=90880#folio=1. Having the home tested for Meth contamination prior to purchase costs only a hundred or
so dollars and is highly recommended.

A further test at every change of tenant ingoing is a good safeguard against the tenant cooking or smoking meth.  If the prospective new tenant is aware the house has been tested and is clean and will be tested at the end of the tenancy they know they will be found out. A tenant intending to cook or smoke meth will likely look for another property.

When choosing a meth testing service it would be wise to use one that has no connection to the testing laboratories or the companies that clean up contaminated properties. There was recently a lot of media coverage about one testing service that may well have found contamination when it did not exist so as to generate work for the related clean up company and/or their more expensive on site sampling service.Feel free to phone or email me for more information.

Until next time,

Best wishes,

John Goodrum

Licensee Agent REAA 2008

thelegendofthewest@gmail.com

021945140

09 838 8895