Hello,
Welcome to the twenty-fifth 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. |
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Sale Prices |
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| Suburb |
Median selling price August 2016 |
No sold | Days to sell |
| Titirangi |
$1,030,000 |
14 |
30 |
| West Harbour |
$905,000 |
17 |
27 |
| Glendene |
$810,000 |
8 |
25 |
| Henderson |
$825,000 |
71 |
30 |
| Hobsonville |
$920,000 |
11 |
20 |
| Massey |
$770,000 |
45 |
30 |
| Ranui |
$741,000 |
28 |
20 |
| Sunnyvale |
$712,000 |
9 |
51 |
| Te Atatu Peninsula |
$930,000 |
16 |
25 |
| Te Atatu South |
$848,500 |
27 |
24 |
| Glen Eden |
$757,000 |
48 |
29 |
| New Lynn |
$755,000 |
35 |
26 |
| Swanson |
$800,000 |
5 |
47 |
| Kelston |
$749,000 |
6 |
33 |
Source REINZ
|
Current Mortgage Rates (23/09/2016) |
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|
Float |
1 yr fixed |
2 yr fixed |
3 yr fixed |
5 yr fixed |
|
| ANZ |
5.59% |
4.25% |
4.29% |
4.99% |
5.30% |
| ASB |
5.55% |
4.25% |
4.29% |
4.34% |
5.79% |
| BNZ |
5.64% |
4.29% |
4.29% |
4.49% |
5.15% |
| Westpac |
5.65% |
4.25% |
4.29% |
4.49% |
5.65% |
| Kiwi Bank |
5.25% |
4.19% |
4.19% |
4.29% |
4.99% |
| Best of other lenders |
5.19% |
4.19% |
3.79% |
4.29% |
4.79% |
Source – J Goodrum – Internet search
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Current Rents |
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1st March – 31st August 16 |
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| Glen Eden | Average Rent | Bonds Paid | Royal Heights/Massey | ||
| 1 brm flat | $233.00 | 10 | 1 brm flat | $277.00 | 6 |
| 2 brm flat | $360.00 | 21 | 2 brm flat | $390.00 | 9 |
| 3 brm flat | $460.00 | 5 | 3 brm flat | $432.00 | 6 |
| 2 brm house | $390.00 | 27 | 2 brm house | $390.00 | 27 |
| 3 brm house | $467.00 | 114 | 3 brm house | $475.00 | 178 |
| 4 brm house | $500.00 | 20 | 4 brm house | $540.00 | 53 |
| Glendene | 5+ brm house | $660.00 | 15 | ||
| 2 brm flat | $365.00 | 12 | Te Atatu South | ||
| 2 brm house | $390.00 | 22 | 1 brm flat | $277.00 | 8 |
| 3 brm house | $475.00 | 49 | 2 brm flat | $390.00 | 18 |
| 4 brm house | $550.00 | 26 | 2 brm house | $415.00 | 21 |
| 5+ brm house | $680.00 | 7 | 3 brm house | $495.00 | 67 |
| Henderson | 4 brm house | $590.00 | 10 | ||
| 1 brm apartment | $315.00 | 5 | 5+ brm house | $740.00 | 7 |
| 2 brm apartment | $400.00 | 8 | Te Atatu Peninsula | ||
| 1 brm flat | $292.00 | 14 | 1 brm flat | $320.00 | 5 |
| 2 brm flat | $380.00 | 55 | 2 brm flat | $380.00 | 9 |
| 3 brm flat | $400.00 | 9 | 1 brm house | $350.00 | 5 |
| 1 brm house | $310.00 | 6 | 2 brm house | $420.00 | 34 |
| 2 brm house | $400.00 | 64 | 3 brm house | $500.00 | 86 |
| 3 brm house | $475.00 | 244 | 4 brm house | $580.00 | 27 |
| 4 brm house | $575.00 | 115 | 5+ brm house | $780.00 | 6 |
| 5+ brm house | $690.00 | 21 | Titirangi | ||
| Kelston | 1 brm flat | $315.00 | 16 | ||
| 1 brm apartment | $305.00 | 20 | 2 brm flat | $390.00 | 17 |
| 1 brm flat | $300.00 | 13 | 1 brm house | $320.00 | 6 |
| 2 brm flat | $342.00 | 8 | 2 brm house | $400.00 | 32 |
| 3 brm flat | $400.00 | 5 | 3 brm house | $520.00 | 85 |
| 2 brm house | $400.00 | 27 | 4 brm house | $600.00 | 24 |
| 3 brm house | $472.00 | 80 | West Harbour | ||
| 4 brm house | $580.00 | 18 | 2 brm apartment | $487.00 | 8 |
| 5+ brm house | $640.00 | 6 | 1 brm flat | $337.00 | 10 |
| New Lynn | 2 brm flat | $395.00 | 7 | ||
| 1 brm apartment | $330.00 | 30 | 1 brm house | $402.00 | 6 |
| 2 brm apartment | $435.00 | 16 | 2 brm house | $430.00 | 25 |
| 1 brm flat | $300.00 | 18 | 3 brm house | $510.00 | 118 |
| 2 brm flat | $390.00 | 59 | 4 brm house | $675.00 | 66 |
| 3 brm flat | $450.00 | 11 | 5+ brm house | $710.00 | 19 |
| 2 brm house | $430.00 | 45 | Western Beaches/Rural | ||
| 3 brm house | $495.00 | 121 | 1 brm flat | $300.00 | 11 |
| 4 brm house | $560.00 | 34 | 2 brm flat | $295.00 | 5 |
| 5+ brm house | $680.00 | 7 | 1 brm house | $335.00 | 6 |
| Ranui | 2 brm house | $390.00 | 36 | ||
| 2 brm house | $400.00 | 18 | 3 brm house | $480.00 | 65 |
| 3 brm house | $440.00 | 76 | 4 brm house | $560.00 | 29 |
| 4 brm house | $530.00 | 14 | 5+ brm house | $650.00 | 7 |
Source NZ Government building & housing
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Sunnyvale |
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Date |
Median selling price |
5 year gain % |
|
| Aug 1996 | $178,000.00 |
- |
|
| Aug 2001 | $233,000.00 |
+ 30.9% |
|
| Aug 2006 | $285,000.00 |
+ 22.3% |
|
| Aug 2011 | $364,000.00 |
+ 21.4% |
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| Aug 2016 | $712,000.00 |
+ 105.8% |
|
| Over 20 years |
+ 300.0% |
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West Harbour |
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Date |
Median selling price |
5 year gain % |
|
| Aug 1996 |
$166,000.00 |
- |
|
| Aug 2001 |
$310,000.00 |
+ 86.7% |
|
| Aug 2006 |
$460,000.00 |
+ 48.4% |
|
| Aug 2011 |
$444,250.00 |
- 3.4% |
|
| Aug 2016 |
$905,000.00 |
+ 103.7% |
|
| Over 20 years |
+ 445.2% |
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Source NZ department of statistics
Damage by Tenants:
Who pays?
Landlords need to be aware of a Court of Appeal confirmation this year that the tenant will not be responsible for carless damage to the property they are renting.
The case relates to a Mrs Osaki who was cooking dinner in her rental home. She left a pot of oil on the hot stove and went into another room. A serious fire resulted and the landlords insurer with a huge bill. The insurance company took legal action against the tenant and was unsuccessful. The insurer took the case to the Court of Appeal.
Until the Osaki case it was believed tenants who damage residential property could be made to pay. The Court of Appeal ruled otherwise. Now under the Property Law Act 2007 (PLA) tenants will now be exempt from liability for unintentionally causing damage to their rental property in certain situations.
These situations include fire, flood, storm, or explosion. The landlord will be responsible whether or not they are insured. The tenant is not even liable for the landlord’s excess on an insurance policy. Tenants will be liable if the damage was intentional but how easy would it be to make deliberate damage look like an accident?
It would be at the landlord’s cost to prove that it was intentional. The tenant will be liable if they have done something that invalidates the landlords insurance for example secretly running a business at the property which caused a fire. In light of the Osaki decision landlords should:
- Check carefully their insurance policy to ensure they are fully covered as any shortfall and any excess will be payable by the landlord.
- Very carefully vet prospective tenants.
- Make regular property inspections and look for possible future problems.
- Make sure you have told your insurer that the property is being rented.
Until next time,
Best wishes,
John Goodrum
Licensee Agent REAA 2008
021945140
09 838 8895
thelegendofthewest@gmail.com