The number of sales of dwellings including apartments in Waitakere City for August was 284. There were 11 sections sold. The median selling price was $762,000. The average days to sell was 37.

Capital Gains August 2012 – 2017 Median Prices

Green Bay            64.3%

New Lynn             86.7%

Royal Heights     109.2%

The number of sales of homes in Waitakere City for August was 284, this was up from last month. Prices also increased by 3.8% over July prices. These figures reflect increased prices and sales numbers across Auckland as a whole. Sellers are not willing it seems to sell below the prices they saw similar properties to theirs sell for a few months ago. There is little doubt that the shortage of houses is getting worse in Auckland as demand is exceeding the rate of building new ones.

On that basis prices would be expected to rise. Factors likely to hinder price rises however are (1) the tight lending requirements from banks mainly  because of the LVR (loan to value ratio) restrictions imposed by the reserve bank. (2) A change of government as a Labour led government would:

A. Restrict immigration which would reduce demand and slow many sectors of the economy such as hospitality and horticulture which are already short of workers and rely heavily on temporary immigrants / seasonal workers.

B. It is clear that there are not enough construction trades workers and immigration restrictions would prevent more houses been built.

C. Capital gains tax rise on any rental house purchase would mean less buyers for rental properties so prices would be inclined to fall. At the same time a sever shortage of rental properties could ensue. This rental shortage would tend to drive up rents but the government could well put restrictions on rent increases.

D. It looks likely that when a deceased estate property is sold it would not then be classed as a family home and so could be subject to capital gains tax. This is what people are calling an inheritance tax. If that became the case a properties market value would be less. Nothing is certain in life and this is especially true of the 2017 general election.

Do you want to know the value of your property? Its probably worth more than you think. Contact me for a free no obligation value update.

Best wishes,

John Goodrum

Licensee Agent REAA 2008

021945140

thelegendofthewest@gmail.com

Welcome to the thirty-second 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
  

 Source REINZ

Source – J Goodrum – Internet search

Source NZ Government building & housing

Source NZ department of statistics

 Insurance of Rental Properties

As well as having insurance for the building it is often desirable for a landlord to have landlords insurance. This typically covers such things as loss of rent, intentional or malicious damage, vandalism or theft by a tenant or their guests. It also covers illegal drug use by tenants or their guests causing the need to test for drugs and the cost to decontaminate the property.

Insurance policies do have limits on the amount that will be paid for such events. Typically loss of rent would be 8 weeks (less any rent paid in advance or any bond held). For illegal drug use and decontamination a typical limit would be $30,000. In order to qualify for a claim for many of the above events the landlord must fulfil a number of conditions, such as: 

1. Take care and check references when selecting a tenant.
2. The property must not be empty for longer than 60 days.
3. Have a written legal tenancy agreement.
4. Collect at least 2 weeks bond and register it with tenancy services.
5. Collect at least 2 weeks rent in advance.
6. Keep photographs and a written inspection report at the start of the tenancy.
7. Notify the tenant in writing if the rent becomes 7 days in arrears.
8. Personally deliver a second letter to the tenant when the rent is 14 days in arears.
9. Apply to the tenancy tribunal for a termination order when the rent is 21 days in arears.
10. Inspect the property at the beginning and end of a tenancy.
11. Conduct 3 monthly internal and external inspections on the property and keep written records / photographs. 

Failure to meet the above conditions could invalidate any claim on insurance. For landlords having their properties managed by professional property managers I would strongly suggest emailing them a copy of the insurance conditions and getting a written reply that they will manage your property in such a way that all of these conditions are met. 

For landlords managing their own rentals ensure you follow the conditions of the insurance or do not be surprised if you find your claim rejected. 

Until next time,

Best wishes,

John Goodrum

Licensee Agent REAA 2008
021945140

thelegendofthewest@gmail.com
09 838 8895

The number of sales in October on the Peninsula was 19 and the
median selling price was $944,100. The average days to sell was 29. There were 9 sales over $1,000,000. The highest sale price was 5 Capstan Court at $2,000,000.

6 Street Spotlight

Average Rent for Te Atatu Peninsula: 1st May – 31st October 2016

Did You Know?  

In 1855 all of Te Atatu Peninsula plus a large area of Henderson including Lincoln Road were brought from the crown for 2,377 pounds and 15 shillings sterling. The purchasers were Henderson and McFarlane.

Quote of the month:

If a cluttered desk indicates a cluttered mind, what does an empty desk indicate? – Albert Einstein.

Until next time,

Best wishes,

John

• Elite status is the highest achievement award in the company- usually less than 50 out of around 2000 sales people achieve this standard each year

With the NZ economy preforming even better than the predicted 3.5 – 4.0% growth (some even suggest 6% this year) the reserve bank is clearly worried about future inflation which could cause havoc to the living standards of all New Zealanders.

As a result we have see the second rise of 0.25% in the official cash rate (OCR). While everyone with a mortgage hates rises in the OCR (which means the mortgage lending rates increase), it is essential that inflation is controlled.

I personally can remember mortgage rates of 23%! The price of everything you brought seemed to go up just about every week. It would be a tragedy for New Zealand if anything like this happened again. It took the country many, many years and a lot of pain and unemployment to get out of the mess. Lets just hope the good times continue to roll and the reserve bank governor does not over do it and slow the growth in our economy which means plentiful employment and rising living standards.

What will happen to the house prices in Auckland? I strongly believe they will continue to rise. There is a big shortage of houses which can not be filled quickly and there is the strongest net migration to New Zealand  for a decade.

All the OCR actions will achieve I believe is slow the price rises to a more acceptable level (to the reserve bank that is) to prevent rapid inflation. One further prediction this year – the LVR (loan to value ratio) will be relaxed again allowing 90% borrowing and bringing back more first home buyers into the market.

Best wishes,

John Goodrum
Licensee Agent REAA 2008

Last month on the Peninsula there were 17 sales. The median selling price was $695,000 and the average days to sell was 17.

The highest value sale last month was 46 Waimanu Bay Drive at $1,255,000.

6 Street spotlight

Average Rent in Te Atatu Peninsula: 1st October 2013 – 31th March 2014

Did You Know?
That Te Atatu Rugby, Football and Sports Club Inc began in 1962 -  it was known as the Te Atatu Rugby Club based at Te Atatu Park. The original colours were maroon and later were changed to maroon and white.

Quote of the month: The road to success is always under construction…Lily Tomlin

I am the Real Estate expert in Te Atatu Peninsula. If you want more information about Real Estate please phone or email me for confidential attention.

Best wishes,

John Goodrum

Office: 09 413 7910
Mobile: 021 945 140
Email: thelegendofthewest@gmail.com

The number of sales recorded for the Peninsula last month was 20. They took on average 24 days to sell. Interesting to note more than half of these sales where sold by Auction.

With less properties selling last month in Te Atatu Peninsula we have seen further rise in the median sale price from $570,000 in July to $615,000 in August being an almost 10% increase in one month!

Last month’s competition:

Last months question must have been to hard!! We had no entries. For those who are  interested – Te Atatu School opened in 1907.

6 Street Spotlight

Average Rent for Te Atatu Peninsula:
1st Mar 2013 – 31st August 2013

This months do you know?
Where in the Peninsula is the “Lancaster Memorial” located?

The first correct answer by e-mail wins a $100 voucher.
Quote of the month:

Don’t wish it were easier, wish you were better. [Jim Rohn]

I am the Real Estate expert in Te Atatu Peninsula.  If you want more information about Real Estate please phone or email me for confidential  attention.
Until next time,

Best wishes,
John Goodrum AREINZ
thelegendofthewest@gmail.com P:09 838 8895 or  021 945 140

The real estate market is picking up again in Te Atatu Peninsula with substantially more properties having sold during July than in June. There were a total of 24 sales last month but buyers took longer to make their decisions with the average days on the market increasing from 15 to 25.  As a result of more sales there were even less properties available for sale in Te Atatu Peninsula with only 22 available to purchase as of the 1st July 2013.  The average sale price of these properties has again increased showing there are no signs of relief to the shortage of homes available for purchase on the ever popular Te Atatu Peninsula.

6 Street Spotlight

Average Rent for Te Atatu Peninsula:
1st Feb 2013 – 31st July 2013

Last month’s competition

The winner with the first correct answer received by e-mail was Ian Pattullo of Taikata Road. The first general store was on the corner of Taikata Road and Te Atatu Road.
Do you know
When was Te Atatu School opened?  The first correct answer by e-mail wins a $50 voucher.
Quote of the month
Cinderella is proof that a new pair of shoes can change your life! (borrowed from a         vendor’s wall)

I am the Real Estate expert in Te Atatu Peninsula.  If you want more information about Real Estate please phone or email me for confidential  attention.
Until next time,

Best wishes,
John Goodrum AREINZ
thelegendofthewest@gmail.com P:09 838 8895 or  021 945 140

Once again the real estate market in Te Atatu Peninsula was governed by a shortage of properties for sale. At the 1^st of July there were only 38 properties on the market (and many of these probably had conditional sales at the time).

There were 14 sales with a median price of $564,500 and an average of only 15 days to sell.  Of the 14 sales only 3 were marketed with a price, 6 were by auction and 5 by negotiation.

This is a deliberate policy because sellers are reluctant to put a price on a property when the market is so buoyant. Prices being achieved are frequently higher than seller expectations.

Last month’s competition

The winner with the first correct answer received by e-mail was George Young of Yeovil Road. The first to farm tobacco on the Peninsula in the early 1900’s was the Pauling’s family.

6 Street Spotlight

Average Rent for Te Atatu Peninsula:
1st Jan 2013 – 30th June 2013

Do you know?
Where and when was the first general store opened on Te Atatu Peninsula? The first    correct answer by e-mail wins a $50 voucher.

Quote of the month

One man with courage makes a majority. ANDREW JACKSON, 7th US President.

I am the Real Estate expert in Te Atatu Peninsula.  If you want more information
about Real Estate please phone or email me for confidential  attention.

Until next time,

Best wishes,

John Goodrum AREINZ
thelegendofthewest@gmail.com P:09 838 8895 or  021 945 140

The real estate market in continues to show Te Atatu Peninsula to be the hottest suburb in West Auckland. The number of sales is only limited by the number of properties that become available for sale.

There were only 33 properties for sale on the 1^st June in Te Atatu Peninsula.  There were 23 sales with an average time to sell of only 28 days. The median selling price was $540,000

Last month’s competition

The winner with the first correct answer received by e-mail was Shane Callaghan of Gloria Ave. The answer to who named Te Atatu was Helen/Ellen Shaw who owned a farm in Oratia.

6 Street Spotlight

Average Rent for Te Atatu Peninsula:
1st Dec 2012 – 31st May 2013

Do you know

Who farmed tobacco on Te Atatu Peninsula in the early 1900’s? The first correct answer by e-mail wins a $50 voucher.

Quote of the month

It always seems impossible until it is done – Nelson Mandela.

Te Atatu bus interchange

Mr. and Mrs. Rowden wrote saying they have been to 3 local presentations on the topic. The objections relate to noise, potential vandalism and pollution to remaining street      residents and of course the negative effect on property values. I have yet to hear any big positive reasons for the location. Anyone in favour? Please let me know.

I am the Real Estate expert in Te Atatu Peninsula.  If you want more
information about Real Estate please phone or email me for confidential  attention.

Until next time,

Best wishes,

John Goodrum AREINZ
thelegendofthewest@gmail.com P:09 838 8895 or  021 945 140