THE WEST AUCKLAND RESIDENTIAL LANDLORD NEWSLETTER No. 19

Hello,        

Welcome to the nineteenth 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, the North Shore and of course West Auckland. Being a high preforming Real Estate Agent (top 1% in New Zealand) for over 26 years and always working in West Auckland I know the real estate market and the rental market very well.  

In this and future 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 or lifestyle real estate matter.        

	Sale Prices
Suburb	Median selling price Feb 2016	No sold	Days to sell
Titirangi	$740,000	25	27
West Harbour	$845,000	15	31
Glendene	$705,000	9	95
Henderson	$673,500	58	27
Hobsonville	$865,000	7	80
Massey	$665,000	45	32
Ranui	$626,000	19	31
Sunnyvale	$604,050	4	18
Te Atatu Peninsula	$825,000	12	45
Te Atatu South	$723,000	16	51
Glen Eden	$607,000	30	29
New Lynn	$552,500	16	36
Laingholm	$650,500	6	38
Swanson	$740,000	5	18

 

                                                               Source REINZ

Current Mortgage Rates (14/03/2016)
	Float	1 yr fixed	2 yr fixed	3 yr fixed	5 yr fixed
ANZ	5.64%	4.39%	4.49%	5.10%	5.35%
ASB	5.75%	4.15%	4.39%	4.65%	5.25%
BNZ	5.79%	4.39%	4.49%	4.64%	5.35%
Westpac	5.75%	4.39%	4.49%	4.65%	5.35%
Kiwi Bank	5.45%	4.35%	4.39%	4.75%	4.99%
Best of other lenders	5.45%	4.15%	4.25%	4.64%	4.99%

Source – J Goodrum – Internet search

 

 

Current Rents
1st August 15 - 31st Jan 16
Glen Eden	Average Rent	Bonds Paid	Ranui
2 brm apartment	$310.00	6	2 brm flat	$330.00	6
2 brm flat	$350.00	15	2 brm house	$372.00	8
2 brm house	$372.00	24	3 brm house	$450.00	75
3 brm house	$450.00	117	4 brm house	$475.00	10
4 brm house	$525.00	23	Royal Heights/Massey
5+ brm house	$495.00	5	1 brm flat	$300.00	9
Glendene			2 brm flat	$360.00	8
1 brm flat	$285.00	10	2 brm house	$380.00	29
2 brm flat	$360.00	17	3 brm house	$450.00	143
2 brm house	$390.00	20	4 brm house	$550.00	36
3 brm house	$455.00	50	5+ brm house	$605.00	16
4 brm house	$545.00	14	Te Atatu South
5+ brm house	$680.00	5	1 brm flat	$270.00	5
Henderson			2 brm flat	$362.00	10
1 brm apartment	$315.00	5	2 brm house	$392.00	24
2 brm apartment	$380.00	6	3 brm house	$465.00	45
1 brm flat	$300.00	11	4 brm house	$525.00	16
2 brm flat	$375.00	44	Te Atatu Peninsula
3 brm flat	$372.00	8	2 brm apartment	$450.00	5
1 brm house	$307.00	10	1 brm flat	$310.00	8
2 brm house	$390.00	55	2 brm flat	$385.00	8
3 brm house	$455.00	219	2 brm house	$402.00	18
4 brm house	$560.00	74	3 brm house	$490.00	85
5+ brm house	$600.00	17	4 brm house	$585.00	15
Kelston			Titirangi
1 brm apartment	$290.00	25	1 brm flat	$295.00	21
1 brm flat	$290.00	19	2 brm flat	$390.00	13
2 brm flat	$320.00	14	1 brm house	$330.00	5
1 brm house	$300.00	5	2 brm house	$400.00	25
2 brm house	$377.00	12	3 brm house	$520.00	57
3 brm house	$460.00	64	4 brm house	$592.00	18
4 brm house	$520.00	15	5+ brm house	$650.00	7
New Lynn			West Harbour
1 brm apartment	$320.00	20	1 brm flat	$315.00	8
2 brm apartment	$382.00	8	2 brm house	$400.00	18
1 brm flat	$295.00	14	3 brm house	$497.00	86
2 brm flat	$380.00	45	4 brm house	$595.00	34
3 brm flat	$440.00	9	5+ brm house	$800.00	13
1 brm house	$320.00	7	Western Beaches/Rural
2 brm house	$400.00	40	1 brm flat	$260.00	7
3 brm house	$485.00	90	1 brm house	$375.00	6
4 brm house	$550.00	10	2 brm house	$380.00	43
5+ brm house	$660.00	6	3 brm house	$480.00	57
			4 brm house	$500.00	14
			5+ brm house	$600.00	5

Source NZ Government building & housing

 

Spotlight on capital gains
Swanson
Date	Median selling price	5 year gain %
Feb 1996	$175,000.00	-
Feb 2001	$190,500.00	8.9%
Feb 2006	$293,000.00	53.8%
Feb 2011	$465,000.00	58.7%
Feb 2016	$740,000.00	59.1%
Over 20 years		322.9%
Spotlight on capital gains
Laingholm
Date	Median selling price	5 year gain %
Feb 1996	$242,500.00	-
Feb 2001	$240,125.00	-      1.0%
Feb 2006	$413,500.00	72.2%
Feb 2011	$462,500.00	11.9%
Feb 2016	$650,500.00	40.7%
Over 20 years		168.3%

Source NZ department of statistics

 

Proposed Auckland Unitary Plan (AUP)

Auckland is projected to grow to 2 ½ million in the next 30 years.

The AUP is an attempt to accommodate growth and manage the city.

The problem with just letting the city spread North and South (Greenfields expansion) is that this would lead to more traffic congestion as vehicles travel longer distances to work and on business. The cost of installing other infrastructure such as wastewater, storm water disposal, schools, electricity, telecommunications and so one is apparently a much more expensive proposition than upgrading existing systems within the current city limits.

As a result the other approach is to allow more houses or apartments to be built within the current city boundaries. This of course means small land area per dwelling. In general the closer to the town centre eg. Te Atatu main shops for example then more dwellings are allowed on a given size piece of land. This may mean terrace style housing or even multi storey apartments.

This poses both an opportunity and a threat to an investor (and owner occupiers too). The value of a property that has enough land size to be subdivided or to build more houses under the new zoning rules will have a higher market value than before.

If however say an apartment building or several are built close to your existing property that may well reduce the value of your property. Recently home owners in Mission Bay, Glendowie and Kohimaramara were successful after a “fractious 6 hour meeting” with the council in having proposed zoning for 3 storey town houses in their suburbs removed from the unitary plan. They protested that it would devalue their property.

There is no easy solution to Auckland’s rapid growth but any existing or would be property owner owe it to themselves to be aware of the opportunities and the threats to the value of their property be it their residence or their rental investment.

Below is the zoning “legend” for the maps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Auckland City Council website shows all the proposed zoning for all of Auckland. There are many changes that will effect West Auckland.

If buying a property remember however the plan is still only a “proposed” plan and changes like the Mission Bay, Glendowie and Kohimaramara one are still possible. 

Until next time,

Best wishes,

 

John Goodrum

Licensee Agent REAA 2008

021945140, 09 838 8895