THE WEST AUCKLAND RESIDENTIAL LANDLORD NEWSLETTER No. 11

Hello,   

Welcome to the eleventh edition of the West Auckland monthly Residential Landlords Newsletter.

I am a landlord myself and have been for over 30 years. I have recently brought another rental investment last December in West Auckland and another 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 May 2015	No sold	Days to sell
Titirangi	$             725,000	31	30
Green Bay	$             930,500	8	28
West Harbour	$             812,500	26	32
Glendene	$             690,000	14	31
Henderson	$             694,000	78	29
Hobsonville	$             789,500	6	15
Massey	$             657,500	56	25
Ranui	$             571,000	16	28
Sunnyvale	$             512,500	12	21
Swanson	$             650,000	7	23
Te Atatu Peninsula	$             755,000	19	27
Te Atatu South	$             710,000	29	34
Glen Eden	$             640,000	33	29
New Lynn	$             620,000	41	27
Kelston	$             640,000	10	28
Waitakere	$             601,000	4	28
Royal Heights	$             586,500	6	35

 
Source REINZ

Current Mortgage Rates                01/06/2015
	Float	1 yr fixed	2 yr fixed	3 yr fixed	5 yr fixed
ANZ	6.49%	5.10%	5.59%	5.59%	5.79%
ASB	6.50%	5.49%	5.49%	5.75%	5.99%
BNZ	6.49%	5.19%	5.39%	5.29%	5.75%
Westpac	6.40%	5.49%	5.49%	5.59%	5.79%
Kiwi Bank	6.40%	5.39%	5.49%	5.69%	5.99%
Best of other lenders	5.84%	4.95%	4.95%	4.99%	5.29%

Source – J Goodrum – Internet search

Current Rents
1st Dec 14 - 31st May 15
Glen Eden	Average Rent	Bonds Paid	Royal Heights/Massey	Average Rent	Bonds Paid
2 brm apartment	$      286.00	5	1 brm flat	$              250.00	5
1 brm flat	$      250.00	8	2 brm flat	$              362.00	8
2 brm flat	$      350.00	10	3 brm flat	$              395.00	8
2 brm house	$      380.00	21	1 brm house	$              290.00	5
3 brm house	$      432.00	111	2 brm house	$              362.00	24
4 brm house	$      500.00	21	3 brm house	$              440.00	110
Glenene			4 brm house	$              525.00	26
1 brm flat	$      295.00	5	5+ brm house	$              610.00	15
2 brm flat	$      350.00	16	Te Atatu South
2 brm house	$      380.00	19	1 brm flat	$              260.00	5
3 brm house	$      430.00	52	2 brm flat	$              375.00	15
4 brm house	$      500.00	13	2 brm house	$              400.00	17
Henderson			3 brm house	$              455.00	48
1 brm flat	$      300.00	12	4 brm house	$              550.00	8
2 brm flat	$      370.00	41	Te Atatu Peninsula
3 brm flat	$      450.00	9	2 brm apartment	$              450.00	6
2 brm house	$      375.00	61	1 brm flat	$              270.00	5
3 brm house	$      450.00	208	2 brm flat	$              395.00	7
4 brm house	$      522.00	78	2 brm house	$              377.00	20
5+ brm house	$      627.00	20	3 brm house	$              470.00	60
Kelston			4 brm house	$              592.00	24
1 brm apartment	$      290.00	23	5+ brm house	$              724.00	8
2 brm apartment	$      315.00	8	Titirangi
1 brm flat	$      240.00	11	1 brm flat	$              260.00	20
2 brm flat	$      350.00	17	2 brm flat	$              350.00	7
2 brm house	$      355.00	20	1 brm house	$              325.00	7
3 brm house	$      440.00	62	2 brm house	$              395.00	23
4 brm house	$      490.00	11	3 brm house	$              475.00	81
5+ brm house	$      600.00	5	4 brm house	$              600.00	19
1 room	$      215.00	6	5+ brm house	$              650.00	5
New Lynn			West Harbour
1 brm apartment	$      295.00	21	1 brm flat	$              295.00	9
2 brm apartment	$      390.00	14	2 brm house	$              395.00	14
1 brm flat	$      290.00	15	3 brm house	$              460.00	78
2 brm flat	$      370.00	46	4 brm house	$              600.00	34
3 brm flat	$      420.00	8	5+ brm house	$              680.00	15
2 brm house	$      400.00	40	Western Beaches/Rural
3 brm house	$      460.00	93	1 brm flat	$              287.00	6
4 brm house	$      535.00	22	1 brm house	$              260.00	7
1 room	$      207.00	6	2 brm house	$              380.00	31
Ranui			3 brm house	$              450.00	53
2 brm flat	$      245.00	5	4 brm house	$              550.00	24
2 brm house	$      375.00	8	5+ brm house	$              700.00	6
3 brm house	$      420.00	70	1 room	$              230.00	5
4 brm house	$      495.00	13

 

Source NZ Government building & housing

 

Spotlight on capital gains
Te Atatu South
Date	Median selling price	5 year gain %
May 1995	$                            149,000.00
May 2000	$                            177,500.00	18.8
May 2005	$                            335,000.00	88.7
May 2010	$                            375,000.00	11.9
May 2015	$                            710,000.00	89.3
Over 20 years		376.5%
Spotlight on capital gains
Titirangi
Date	Median selling price	5 year gain %
May 1995	$                            175,000.00
May 2000	$                           285,500.00	62.9
May 2005	$                           391,500.00	37.2
May 2010	$                           528,500.00	35.0
May 2015	$                           725,500.00	37.3
Over 20 years		314.3%

Source NZ dept of statistics

 

 

 

 

Managing your rental/s yourself

In my landlords Newsletter number 5 I wrote about the benefits / disadvantages of having your property managed versus managing your own rental/s.
If you decide to manage your own rental/s you need to be organised and treat it as a business investment.

The major thing I find managing my own portfolio of rental properties is that when I advertise one of my properties to let I get a lot of the type
of tenant applications that have poor credit ratings and a poor tenancy record.

That is because they know they will be rejected by good property managers and so they hope to find a private landlord who will not check them out properly.

The best way to ‘weed out’ these undesirable tenants is first – use a comprehensive TENANCY APPLICATION form like the one attached.  This will scare off
a number of them but not the good applicants.

Next check the credit rating or credit score of any applicant you consider letting the property to.  Typical sources are Veda, Dun and Bradstreet and Centrix. 
If you are prepared to wait for 5 days the cost is only $10. 
For a 24 hour report around $50.A second check to see if they have a bad tenant record
can be obtained from TINZ (Tenancy Information New Zealand) – a landlords and tenants data base. It costs $48 per year for membership and $22 for each
tenant check.

These 2 steps alone, credit check and TINZ will stop you letting your property to the wrong tenant.  It is far more costly to get a bad tenant out than checking
their credentials beforehand. Once you are happy with your selection have them fill out and sign a tenancy agreement which fully sets out the conditions.

 A copy of the one I use it attached.  Next do a pre letting inspection with the tenant and have them sign it before the tenancy begins.

Attached is a good inspection form.  After letting the property schedule the first inspection for say 4-6 weeks (give 1 week notice of the inspection – see attached notice). 

If all is ok conduct 3-4 scheduled inspections thereafter each year and at the end of the tenancy a final inspection prior to returning the bond.

During the tenancy it is vital to keep a good record of rents paid/owing.  If there is a dispute this attached record sheet is invaluable to sort out any disputes and will be
invaluable if the tenancy tribunal is ever involved.

It may be that you want to delegate the finding of a tenant and the letting process to a property rental company such as a real estate agency on a ‘casual letting’ basis. 
The charge to find the tenant and let the property may be around $150 which includes their advertising. The letting agent typically charge the tenant a letting fee of 1 weeks rent + GST.

The only word of caution is to ensure that the tenant has been vetted for credit score and against TINZ.  You are the one who suffers if you end up with a bad tenant.  The letting agent’s job
is done when the tenant moves in.

Until next time,

Best wishes, 

John Goodrum

Licensee Agent REAA 2008

thelegendofthewest@gmail.com

021945140

09 838 8895