THE WEST AUCKLAND RESIDENTIAL LANDLORD NEWSLETTER No. 18

Hello,

    
Welcome to the eighteenth 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 Jan 2016	No sold	Days to sell
Titirangi	$735,000	10	43
West Harbour	$813,750	14	53
Glendene	$642,500	4	38
Henderson	$715,000	41	33
Hobsonville	$672,000	4	165
Massey	$650,000	27	32
Ranui	$535,000	5	55
Sunnyvale	$650,000	9	52
Te Atatu Peninsula	$880,000	7	65
Te Atatu South	$714,000	13	35
Glen Eden	$620,000	26	34
New Lynn	$663,500	26	41
Kelston	$628,750	6	33
Royal Heights	$946,000	7	34

 

          Source REINZ

Current Mortgage Rates (14/02/2016)
	Float	1 yr fixed	2 yr fixed	3 yr fixed	5 yr fixed
ANZ	5.74%	4.39%	4.49%	5.10%	5.35%
ASB	5.75%	4.39%	4.49%	4.75%	5.25%
BNZ	5.79%	4.39%	4.39%	4.49%	5.50%
Westpac	5.85%	4.39%	4.39%	4.65%	5.35%
Kiwi Bank	5.65%	4.39%	4.49%	4.85%	5.35%
Best of other lenders	5.59%	4.25%	4.29%	4.49%	5.15%

         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
Te Atatu Peninsula
Date	Median selling price	5 year gain %
Jan 1996	$165,000.00	-
Jan 2001	$261,250.00	58.3%
Jan 2006	$356,000.00	36.3%
Jan 2011	$422,500.00	18.7%
Jan 2016	$857,500.00	103.0%
Over 20 years		419.7%
Spotlight on capital gains
Henderson
Date	Median selling price	5 year gain %
Jan 1996	$164,000.00	-
Jan 2001	$199,000.00	21.3%
Jan 2006	$310,000.00	55.8%
Jan 2011	$363,500.00	17.3%
Jan 2016	$715,000.00	96.7%
Over 20 years		336.0%

  
  Source NZ department of statistics

The West is Best

There is little question that Auckland has outperformed all other cities as far as residential property capital growth is concerned. The compounding annual capital growth for Auckland for the 25 years between 1981 and 2007 (The Global Financial Crisis) was 9.2% which was the highest in the country.

It is very clear what has happened since 2007. After a small fall reversal of around 4% following the GFC prices have risen very sharply in Auckland (prices rose over 20% during 2015). 

Source CORE statistics

Prices late last year began to rise in other cities too such as Hamilton and Tauranga but nothing like Auckland.
It gets back to the fundamentals. There is a large shortage of houses in Auckland and a high and growing (population) demand.

So there is no dispute that capital gains with property in Auckland have outperformed the rest of N.Z. Auckland is a large city. Which parts of Auckland has performed the best? Here are the last 5 years figures.

Location	Growth compounded 2011 – 2015
Waitakere	9.40%
North Shore	9.20%
Auckland City	8.10%
Papkura	7.30%
Rodney	7.20%
Manukau	6.20%
Franklin	5.50%

 And the winner is – West Auckland.

In my West Auckland Landlords Newsletter No7 I gave an analysis of why West Auckland is a great place to invest in rental property. The major infrastructure improvements which include widening the N.W motorway and the Waterview tunnel which will link the NW motorway to the Airport and provide an alternative route south coupled with major developments such as Westgate all indicative of continuing good growth for West Auckland.

The West is best!

Until next time,

Best wishes, 

John Goodrum

Licensee Agent REAA 2008

021945140, 09 838 8895