Hello,
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
| Sale Prices | |||
| Suburb |
Median selling price |
Number sold |
Days to sell |
| Green Bay | $1,028,000 | 7 | 28 |
| Titirangi | $818,000 | 27 | 28 |
| Sunnyvale | $746,000 | 9 | 64 |
| West Harbour | $864,000 | 17 | 30 |
| Hobsonville | $1,190,000 | 6 | 37 |
| Henderson | $744,000 | 34 | 31 |
| Massey | $725,000 | 23 | 29 |
| Ranui | $672,000 | 13 | 50 |
| Swanson | $1,300,000 | 5 | 42 |
| Te Atatu Peninsula | $956,500 | 24 | 30 |
| Te Atatu South | $806,500 | 26 | 30 |
| Glen Eden | $711,000 | 28 | 29 |
| New Lynn | $723,000 | 24 | 33 |
Source REINZ
|
Current Mortgage Rates (20/07/2017) |
|||||
|
Float |
1 yr fixed |
2 yr fixed |
3 yr fixed |
5 yr fixed |
|
| ANZ |
5.79% |
4.55% |
4.85% |
5.59% |
6.09% |
| ASB |
5.80% |
4.45% |
4.74% |
5.09% |
5.69% |
| BNZ |
5.90% |
4.59% |
4.79% |
5.09% |
6.09% |
| Westpac |
5.95% |
4.59% |
4.85% |
5.09% |
5.59% |
| Kiwi Bank |
5.70% |
4.45% |
4.79% |
5.25% |
5.99% |
| Best of other lenders |
5.00% |
4.09% |
4.29% |
4.89% |
5.59% |
Source – J Goodrum – Internet search
| Current Rents | |||||
| 1st Jan – 30th June 2017 | |||||
| Glen Eden | Average Rent | Bonds Paid | Royal Heights/Massey | ||
| 2 brm flat | $387.00 | 18 | 1 brm flat | $285.00 | 14 |
| 3 brm flat | $470.00 | 5 | 2 brm flat | $397.00 | 10 |
| 2 brm house | $415.00 | 26 | 3 brm flat | $460.00 | 9 |
| 3 brm house | $482.00 | 116 | 2 brm house | $422.00 | 30 |
| 4 brm house | $595.00 | 18 | 3 brm house | $480.00 | 143 |
| Glendene | 4 brm house | $590.00 | 38 | ||
| 2 brm flat | $380.00 | 18 | 5+ brm house | $710.00 | 12 |
| 2 brm house | $405.00 | 28 | Te Atatu South | ||
| 3 brm house | $490.00 | 63 | 1 brm flat | $340.00 | 5 |
| 4 brm house | $560.00 | 22 | 2 brm flat | $410.00 | 13 |
| Henderson | 2 brm house | $420.00 | 25 | ||
| 1 brm apartment | $330.00 | 5 | 3 brm house | $500.00 | 58 |
| 3 brm apartment | $480.00 | 5 | 4 brm house | $600.00 | 11 |
| 1 brm flat | $310.00 | 25 | 5+ brm house | $680.00 | 5 |
| 2 brm flat | $400.00 | 46 | Te Atatu Peninsula | ||
| 3 brm flat | $430.00 | 11 | 2 brm apartment | $500.00 | 5 |
| 1 brm house | $335.00 | 13 | 2 brm flat | $397.00 | 12 |
| 2 brm house | $420.00 | 72 | 1 brm house | $320.00 | 5 |
| 3 brm house | $490.00 | 249 | 2 brm house | $420.00 | 23 |
| 4 brm house | $580.00 | 79 | 3 brm house | $525.00 | 94 |
| 5+ brm house | $727.00 | 32 | 4 brm house | $675.00 | 23 |
| Kelston | Titirangi | ||||
| 1 brm apartment | $320.00 | 12 | 2 brm apartment | $500.00 | 5 |
| 1 brm flat | $295.00 | 13 | 2 brm flat | $397.00 | 12 |
| 2 brm flat | $375.00 | 19 | 1 brm house | $320.00 | 5 |
| 3 brm flat | $450.00 | 7 | 2 brm house | $420.00 | 23 |
| 2 brm house | $405.00 | 32 | 3 brm house | $525.00 | 94 |
| 3 brm house | $495.00 | 84 | 4 brm house | $675.00 | 23 |
| 4 brm house | $590.00 | 21 | West Harbour | ||
| New Lynn | 2 brm apartment | $530.00 | 8 | ||
| 1 brm apartment | $350.00 | 29 | 1 brm flat | $335.00 | 6 |
| 2 brm apartment | $450.00 | 17 | 2 brm flat | $350.00 | 7 |
| 1 brm flat | $335.00 | 14 | 1 brm house | $317.00 | 8 |
| 2 brm flat | $400.00 | 44 | 2 brm house | $475.00 | 32 |
| 3 brm flat | $505.00 | 10 | 3 brm house | $550.00 | 120 |
| 4 brm flat | $500.00 | 5 | 4 brm house | $720.00 | 59 |
| 2 brm house | $440.00 | 48 | 5+ brm house | $795.00 | 19 |
| 3 brm house | $500.00 | 106 | Western Beaches / Rural | ||
| 4 brm house | $600.00 | 32 | 1 brm flat | $290.00 | 12 |
| 5+ brm house | $690.00 | 6 | 2 brm flat | $397.00 | 6 |
| Ranui | 2 brm house | $417.00 | 34 | ||
| 2 brm flat | $380.00 | 6 | 3 brm house | $500.00 | 59 |
| 3 brm flat | $440.00 | 5 | 4 brm house | $600.00 | 25 |
| 2 brm house | $400.00 | 19 | 5+ brm house | $825.00 | 6 |
| 3 brm house | $460.00 | 73 | |||
| 4 brm house | $580.00 | 13 | |||
Source NZ Government building & housing
|
|||
|
Titirangi |
|||
|
Date |
Median selling price |
5 year gain % |
|
| June 1997 | $240,000 |
- |
|
| June 2002 | $257,500 |
+ 7.3% |
|
| June 2007 | $520,000 |
+ 101.2% |
|
| June 2012 | $570,000 |
+ 9.6% |
|
| June 2017 | $818,000 |
+ 43.5% |
|
| Over 20 years |
+ 240.8% |
||
|
|||
|
Massey |
|||
|
Date |
Median selling price |
5 year gain % |
|
| June 1997 |
$185,000 |
- |
|
| June 2002 |
$175,000 |
- 5.4% |
|
| June 2007 |
$340,125 |
+ 94.4% |
|
| June 2012 |
$362,750 |
+ 6.7% |
|
| June 2017 |
$725,000 |
+ 99.9% |
|
| Over 20 years |
+ 291.9% |
||
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:
- Take care and check references when selecting a tenant.
- The property must not be empty for longer than 60 days.
- Have a written legal tenancy agreement.
- Collect at least 2 weeks bond and register it with tenancy services.
- Collect at least 2 weeks rent in advance.
- Keep photographs and a written inspection report at the start of the tenancy.
- Notify the tenant in writing if the rent becomes 7 days in arrears.
- Personally deliver a second letter to the tenant when the rent is 14 days in arears.
- Apply to the tenancy tribunal for a termination order when the rent is 21 days in arears.
- Inspect the property at the beginning and end of a tenancy.
- 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