Hello,
Welcome to the twenty-eighth 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
|
Sale Prices |
|
|
|
| Suburb |
Median selling price |
No sold | Days to sell |
| Titirangi |
$791,000 |
25 |
45 |
| Laingholm |
$750,000 |
5 |
25 |
| West Harbour |
$1,050,000 |
13 |
41 |
| Glendene |
$710,000 |
8 |
29 |
| Henderson |
$790,500 |
42 |
29 |
| Massey |
$710,000 |
27 |
25 |
| Ranui |
$688,000 |
20 |
30 |
| Royal Heights |
$800,000 |
5 |
35 |
| Swanson |
$835,000 |
10 |
28 |
| Te Atatu Peninsula |
$953,000 |
22 |
28 |
| Te Atatu South |
$826,000 |
20 |
39 |
| Glen Eden |
$702,250 |
40 |
30 |
| New Lynn |
$745,000 |
39 |
31 |
| Kelston |
$775,000 |
6 |
26 |
Source REINZ
|
Current Mortgage Rates (14/12/2016) |
|||||
|
Float |
1 yr fixed |
2 yr fixed |
3 yr fixed |
5 yr fixed |
|
| ANZ |
5.59% |
4.75% |
4.95% |
5.15% |
5.45% |
| ASB |
5.65% |
4.69% |
4.99% |
5.29% |
5.79% |
| BNZ |
5.64% |
4.85% |
4.95% |
5.15% |
5.45% |
| Westpac |
5.65% |
4.79% |
4.90% |
5.09% |
5.79% |
| Kiwi Bank |
5.25% |
4.70% |
4.75% |
4.75% |
5.40% |
| Best of other lenders |
5.19% |
4.19% |
4.19% |
4.35% |
4.99% |
Source – J Goodrum – Internet search
| Current Rents | |||||
| 1st June – 30th November 16 | |||||
| Glen Eden | Average Rent | Bonds Paid | Royal Heights/Massey | ||
| 2 brm flat | $370.00 | 7 | 2 brm house | $395.00 | 8 |
| 2 brm house | $392.00 | 8 | 3 brm house | $490.00 | 55 |
| 3 brm house | $475.00 | 27 | 4 brm house | $540.00 | 11 |
| 4 brm house | $500.00 | 5 | Te Atatu South | ||
| Glendene | 2 brm flat | $400.00 | 7 | ||
| 2 brm house | $400.00 | 5 | 2 brm house | $350.00 | 9 |
| 3 brm house | $480.00 | 17 | 3 brm house | $520.00 | 21 |
| 4 brm house | $555.00 | 8 | 4 brm house | $575.00 | 6 |
| Henderson | Te Atatu Peninsula | ||||
| 1 brm flat | $320.00 | 6 | 2 brm house | $420.00 | 13 |
| 2 brm flat | $385.00 | 16 | 3 brm house | $500.00 | 28 |
| 2 brm house | $420.00 | 13 | 4 brm house | $550.00 | 8 |
| 3 brm house | $480.00 | 77 | Titirangi | ||
| 4 brm house | $575.00 | 30 | 1 brm flat | $325.00 | 6 |
| 5+ brm house | $695.00 | 6 | 1 brm house | $330.00 | 5 |
| Kelston | 2 brm house | $400.00 | 23 | ||
| 1 brm flat | $310.00 | 6 | 3 brm house | $540.00 | 35 |
| 2 brm house | $440.00 | 6 | 4 brm house | $650.00 | 8 |
| 3 brm house | $472.00 | 24 | West Harbour | ||
| 4 brm house | $500.00 | 5 | 1 brm flat | $280.00 | 5 |
| New Lynn | 2 brm flat | $385.00 | 5 | ||
| 1 brm apartment | $330.00 | 6 | 2 brm house | $440.00 | 7 |
| 2 brm flat | $395.00 | 17 | 3 brm house | $517.00 | 26 |
| 2 brm house | $430.00 | 16 | 4 brm house | $645.00 | 24 |
| 3 brm house | $500.00 | 35 | Western Beaches / Rural | ||
| 4 brm house | $575.00 | 6 | 1 brm apartment | $270.00 | 5 |
| Ranui | 1 brm flat | $322.00 | 8 | ||
| 2 brm house | $407.00 | 8 | 1 brm house | $330.00 | 5 |
| 3 brm house | $460.00 | 26 | 2 brm house | $399.00 | 24 |
| 3 brm house | $470.00 | 23 | |||
| 4 brm house | $600.00 | 7 | |||
Source NZ Government building & housing
|
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|
Swanson |
|||
|
Date |
Median selling price |
5 year gain % |
|
| Nov 1996 | $200,000.00 |
- |
|
| Nov 2001 | $217,000.00 |
+ 8.5% |
|
| Nov 2006 | $389,000.00 |
+ 79.3% |
|
| Nov 2011 | $453,166.00 |
+ 16.5% |
|
| Nov 2016 | $835,000.00 |
+ 84.3% |
|
| Over 20 years |
+ 317.5% |
||
|
|||
|
Laingholm |
|||
|
Date |
Median selling price |
5 year gain % |
|
| Nov 1996 |
$243,500.00 |
- |
|
| Nov 2001 |
$269,500.00 |
+ 10.7% |
|
| Nov 2006 |
$383,000.00 |
+ 42.1% |
|
| Nov 2011 |
$516,500.00 |
+ 34.9% |
|
| Nov 2016 |
$750,000.00 |
+ 45.2% |
|
| Over 20 years |
+ 208.0% |
||
Source NZ department of statistics
New Zealand Politics and House Prices
The shock resignation of John Key as Prime Minister, who was probably the best New Zealand Prime Minister in my lifetime is one of those unpredictable events that can affect property values.
Under John Key’s prime ministership, New Zealand has grown to become a buoyant economy with projected GDP growth averaging 3% for the next 3 years.
Bill English this week announced a budget surplus of $1.83 billion for the 12 months to June 2016. Strong future surpluses were also predicted. Not only would this allow the repayment of overseas debt and more spending on social services, but also tax cuts which would further stimulate economic growth.
Could all that change?
Yes it certainly could. The absence of John Key gives more uncertainty about next year’s general election. Should the present government not be elected, the economic uncertainty would certainly be much higher. What is promised should Labour get hold of the treasury benches is more tax, more social welfare type spending and the almost inevitable result would be a poorer performing economy.
The effect on house prices in a poorer performing economy could be high. Prices may well fall. A capital gains tax and other property related taxes are strong possibilities under a Labour/Greens led government and would affect house prices negatively.
In a poorer performing economy with a less business friendly environment, New Zealand would not be such an attractive destination for immigrants or for expat kiwis to return home. With a lower, nil or even negative net migration, the price of houses would again be negatively affected. The effect of negative migration would be to free up more houses, lowering the demand and in turn lowering rents.
For a residential landlord, it would be a triple whammy:
- Higher cost of ownership (more tax)
- Falling property values
- Lower rents
2017 will be a watershed year for residential landlords. Politics, as you can see, have a very big effect on house prices.
Until next time,
Best wishes,
John Goodrum
Licensee Agent REAA 2008, 021945140, 09 838 8895