Welcome
to the twenty-first 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 April 2016
|
No sold
|
Days to sell
|
Titirangi
|
$832,500
|
24
|
37
|
West Harbour
|
$825,000
|
17
|
31
|
Glendene
|
$741,500
|
12
|
33
|
Henderson
|
$760,000
|
85
|
38
|
Hobsonville
|
$900,000
|
7
|
31
|
Massey
|
$725,000
|
53
|
29
|
Ranui
|
$654,000
|
20
|
26
|
Sunnyvale
|
$732,500
|
6
|
40
|
Te Atatu Peninsula
|
$910,000
|
25
|
19
|
Te Atatu South
|
$732,500
|
34
|
35
|
Glen Eden
|
$720,000
|
35
|
38
|
New Lynn
|
$733,000
|
36
|
31
|
Swanson
|
$727,000
|
11
|
36
|
Kelston
|
$694,500
|
8
|
36
|
Green Bay
|
$812,500
|
6
|
16
|
Current Mortgage Rates (13/05/2016)
|
|||||
Float
|
1 yr fixed
|
2 yr fixed
|
3 yr fixed
|
5 yr fixed
|
|
ANZ
|
5.64%
|
4.25%
|
4.35%
|
4.99%
|
5.30%
|
ASB
|
5.55%
|
4.25%
|
4.19%
|
4.65%
|
5.25%
|
BNZ
|
5.69%
|
4.25%
|
4.39%
|
4.64%
|
5.15%
|
Westpac
|
5.75%
|
4.25%
|
4.19%
|
4.99%
|
5.19%
|
Kiwi Bank
|
5.45%
|
4.29%
|
4.25%
|
4.75%
|
4.99%
|
Best of other lenders
|
5.45%
|
4.10%
|
4.19%
|
4.59%
|
4.99%
|
| Current Rents | |||||
| 1st Nov 15 - 30th Apr 16 | |||||
| Glen Eden | Average Rent | Bonds Paid | Royal Heights/Massey | ||
| 2 brm apartment | $334.00 | 5 | 1 brm flat | $250.00 | 7 |
| 1 brm flat | $233.00 | 6 | 2 brm flat | $370.00 | 6 |
| 2 brm flat | $370.00 | 16 | 1 brm house | $330.00 | 5 |
| 1 brm house | $330.00 | 5 | 2 brm house | $380.00 | 23 |
| 2 brm house | $390.00 | 26 | 3 brm house | $460.00 | 136 |
| 3 brm house | $450.00 | 93 | 4 brm house | $535.00 | 40 |
| 4 brm house | $480.00 | 21 | 5+ brm house | $660.00 | 7 |
| Glendene | Te Atatu South | ||||
| 2 brm flat | $350.00 | 17 | 1 brm flat | $262.00 | 8 |
| 2 brm house | $390.00 | 26 | 2 brm flat | $385.00 | 14 |
| 3 brm house | $450.00 | 45 | 2 brm house | $425.00 | 18 |
| 4 brm house | $570.00 | 11 | 3 brm house | $480.00 | 51 |
| 5+ brm house | $660.00 | 5 | 4 brm house | $550.00 | 13 |
| Henderson | Te Atatu Peninsula | ||||
| 2 brm apartment | $382.00 | 12 | 1 brm flat | $310.00 | 5 |
| 1 brm flat | $255.00 | 12 | 2 brm flat | $390.00 | 8 |
| 2 brm flat | $380.00 | 43 | 2 brm house | $410.00 | 22 |
| 1 brm house | $295.00 | 5 | 3 brm house | $490.00 | 83 |
| 2 brm house | $395.00 | 60 | 4 brm house | $592.00 | 18 |
| 3 brm house | $460.00 | 201 | 5+ brm house | $700.00 | 5 |
| 4 brm house | $560.00 | 83 | Titirangi | ||
| 5+ brm house | $600.00 | 17 | 1 brm flat | $310.00 | 5 |
| Kelston | 2 brm flat | $390.00 | 8 | ||
| 1 brm apartment | $300.00 | 25 | 2 brm house | $410.00 | 22 |
| 1 brm flat | $297.00 | 18 | 3 brm house | $490.00 | 83 |
| 2 brm flat | $350.00 | 12 | 4 brm house | $592.00 | 18 |
| 2 brm house | $385.00 | 20 | 5+ brm house | $700.00 | 5 |
| 3 brm house | $460.00 | 54 | West Harbour | ||
| 4 brm house | $565.00 | 16 | 2 brm apartment | $500.00 | 8 |
| New Lynn | 2 brm flat | $400.00 | 7 | ||
| 1 brm apartment | $320.00 | 20 | 2 brm house | $430.00 | 19 |
| 2 brm apartment | $42.00 | 17 | 3 brm house | $520.00 | 85 |
| 1 brm flat | $290.00 | 12 | 4 brm house | $655.00 | 44 |
| 2 brm flat | $380.00 | 50 | 5+ brm house | $830.00 | 19 |
| 3 brm flat | $417.00 | 8 | Western Beaches/Rural | ||
| 2 brm house | $400.00 | 43 | 1 brm flat | $290.00 | 7 |
| 3 brm house | $487.00 | 98 | 2 brm flat | $380.00 | 5 |
| 4 brm house | $585.00 | 16 | 1 brm house | $355.00 | 6 |
| 5+ brm house | $675.00 | 6 | 2 brm house | $377.00 | 30 |
| Ranui | 3 brm house | $480.00 | 61 | ||
| 1 brm flat | $287.00 | 6 | 4 brm house | $555.00 | 24 |
| 2 brm house | $382.00 | 8 | |||
| 3 brm house | $430.00 | 64 | |||
| 4 brm house | $510.00 | 7 | |||
Source NZ Government building & housing
|
|||
Glen Eden
|
|||
Date
|
Median selling price
|
5 year gain %
|
|
April 1996
|
$185,000.00
|
-
|
|
April 2001
|
$153,000.00
|
- 17.3%
|
|
April 2006
|
$290,000.00
|
+ 89.5%
|
|
April 2011
|
$335,500.00
|
+ 15.7%
|
|
April 2016
|
$720,000.00
|
+ 114.9%
|
|
Over 20 years
|
+ 289.2%
|
||
|
|||
Te Atatu South
|
|||
Date
|
Median selling price
|
5 year gain %
|
|
April 1996
|
$230,000.00
|
-
|
|
April 2001
|
$180,000.00
|
- 21.7%
|
|
April 2006
|
$300,000.00
|
+ 66.7%
|
|
April 2011
|
$439,000.00
|
+ 46.3%
|
|
April 2016
|
$732,500.00
|
+ 66.9%
|
|
Over 20 years
|
+ 218.5%
|
||
The
Rental Market
The percentage of people renting as opposed to those that
own their own home has been increasing for a number of years.
Using NZ Census figures:
2006 – 388,275 rented houses in New Zealand.
2013 – 453,135 rented houses in New Zealand.
In 1991 73% of all houses were owner occupied = 27% rentals
in 2013 64% of all houses were owner occupied = 36% rentals
2013 – 453,135 rented houses in New Zealand.
In 1991 73% of all houses were owner occupied = 27% rentals
in 2013 64% of all houses were owner occupied = 36% rentals
Of the rentals in 2006 78.4% were from the private sector,
the rest were Housing NZ and local authority rentals, in 2013 83.7% were from
the private sector.
Of all the rentals – 11% = 1 bedroom
29% = 2 bedrooms
45% = 3 bedrooms
15% = 4+ bedrooms
In Auckland in 2006 36.2% of all the homes were rentals, in 2013 38.5% of all the homes were rentals.
29% = 2 bedrooms
45% = 3 bedrooms
15% = 4+ bedrooms
In Auckland in 2006 36.2% of all the homes were rentals, in 2013 38.5% of all the homes were rentals.
With the increases in Auckland house prices continuing and
likely to continue for some years due mainly to the shortage of houses and the
high levels of net migration the number of people renting will probably
continue to increase.
This presents a positive picture for landlords and
residential property investors. But who are these much maligned property
investors? The vast majority are just working families who have used the equity
in their own home to buy rental property.
They pay off their own mortgages helped by the rent from
their rental property usually over many years so when they retire they either
have a rental income to supplement their pension or they can sell the rental
property and have a retirement fund.
Who can blame someone for buying a rental property in
Auckland when capital gains have been and are likely to continue to be
excellent? What are the alternatives? Shares? Term deposits at the bank? Shares
can be a high risk and most people don’t understand the share market. Term
deposits on money in the bank gives extremely low returns.
It is time residential property investors were respected
for what they provide to Auckland. They pay rates to help run / develop our
City. They employ maintenance people, possibly employ property managers and an
accountant. When they buy or sell they may employ a real estate agent, lawyer,
mortgage broker and may be employ a house cleaning company to clean the home
between tenancies.
Landlords in fact contribute a lot to the employment and
the well-being of our City. They do one other thing too – they provide a house
for around 1/3 of all Aucklanders who cannot or prefer not to buy a house of
their own. So give us a break, we are not the bad guys. The government and
local council cannot afford to buy and subsides over 180,000 houses in Auckland
so please a little more respect to those that do.
Until
next time,
Best
wishes,
John Goodrum
Licensee
Agent REAA 2008
021945140, 09 838 8895
No comments:
Post a Comment