Hello,
Welcome to the thirty-third 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 |
$755,000 |
19 |
31 |
|
Sunnyvale |
$710,000 |
10 |
44 |
|
West Harbour |
$943,600 |
15 |
34 |
|
Glendene |
$875,000 |
11 |
28 |
|
Hobsonville |
$905,000 |
6 |
80 |
|
Henderson |
$702,500 |
48 |
26 |
|
Massey |
$732,000 |
31 |
28 |
|
Ranui |
$970,000 |
13 |
56 |
|
Royal Heights |
$725,000 |
6 |
34 |
|
Swanson |
$699,000 |
4 |
47 |
|
Te Atatu Peninsula |
$770,000 |
9 |
47 |
|
Te Atatu South |
$682,000 |
17 |
35 |
|
Glen Eden |
$724,100 |
21 |
50 |
|
New Lynn |
$605,000 |
33 |
24 |
Source REINZ
|
Current Mortgage Rates (14/08/2017) |
|||||
|
Float |
1 yr fixed |
2 yr fixed |
3 yr fixed |
5 yr fixed |
|
| ANZ |
5.79% |
5.05% |
5.35% |
5.59% |
6.09% |
| ASB |
5.80% |
4.45% |
4.79% |
5.09% |
5.79% |
| BNZ |
5.90% |
4.59% |
4.79% |
5.09% |
6.09% |
| Westpac |
5.95% |
4.59% |
4.89% |
5.09% |
5.59% |
| Kiwi Bank |
5.80% |
4.45% |
4.79% |
5.09% |
5.99% |
| Best of other lenders |
5.00% |
4.09% |
4.29% |
4.89% |
5.59% |
Source – J Goodrum – Internet search
| Current Rents | |||||
| 1st Feb – 31st July 2017 | |||||
| Glen Eden | Average Rent | Bonds Paid | Royal Heights/Massey | ||
| 2 brm flat | $390.00 | 17 | 1 brm flat | $285.00 | 14 |
| 3 brm flat | $482.00 | 6 | 2 brm flat | $387.00 | 14 |
| 2 brm house | $420.00 | 23 | 3 brm flat | $460.00 | 7 |
| 3 brm house | $485.00 | 121 | 2 brm house | $420.00 | 30 |
| 4 brm house | $580.00 | 18 | 3 brm house | $480.00 | 138 |
| Glendene | 4 brm house | $600.00 | 45 | ||
| 2 brm flat | $380.00 | 17 | 5+ brm house | $660.00 | 12 |
| 2 brm house | $410.00 | 27 | Te Atatu South | ||
| 3 brm house | $490.00 | 62 | 1 brm flat | $360.00 | 5 |
| 4 brm house | $560.00 | 21 | 2 brm flat | $410.00 | 11 |
| Henderson | 1 brm house | $330.00 | 5 | ||
| 1 brm apartment | $330.00 | 7 | 2 brm house | $420.00 | 25 |
| 1 brm flat | $325.00 | 20 | 3 brm house | $500.00 | 61 |
| 2 brm flat | $400.00 | 46 | 4 brm house | $590.00 | 10 |
| 3 brm flat | $435.00 | 12 | 5+ brm house | $680.00 | 5 |
| 1 brm house | $330.00 | 11 | Te Atatu Peninsula | ||
| 2 brm house | $420.00 | 65 | 2 brm apartment | $495.00 | 5 |
| 3 brm house | $490.00 | 240 | 2 brm flat | $400.00 | 11 |
| 4 brm house | $590.00 | 78 | 2 brm house | $430.00 | 27 |
| 5+ brm house | $727.00 | 30 | 3 brm house | $520.00 | 89 |
| Kelston | 4 brm house | $675.00 | 21 | ||
| 1 brm apartment | $320.00 | 12 | Titirangi | ||
| 1 brm flat | $297.00 | 14 | 1 brm flat | $320.00 | 14 |
| 2 brm flat | $382.00 | 16 | 2 brm flat | $420.00 | 13 |
| 3 brm flat | $472.00 | 6 | 3 brm flat | $540.00 | 7 |
| 2 brm house | $420.00 | 27 | 1 brm house | $350.00 | 6 |
| 3 brm house | $495.00 | 81 | 2 brm house | $420.00 | 31 |
| 4 brm house | $590.00 | 17 | 3 brm house | $545.00 | 77 |
| New Lynn | 4 brm house | $600.00 | 19 | ||
| 1 brm apartment | $350.00 | 27 | 5 brm house | $790.00 | 10 |
| 2 brm apartment | $450.00 | 15 | West Harbour | ||
| 1 brm flat | $330.00 | 16 | 2 brm apartment | $530.00 | 8 |
| 2 brm flat | $400.00 | 46 | 1 brm flat | $335.00 | 6 |
| 3 brm flat | $517.00 | 8 | 2 brm flat | $400.00 | 8 |
| 2 brm house | $445.00 | 53 | 1 brm house | $317.00 | 6 |
| 3 brm house | $500.00 | 109 | 2 brm house | $450.00 | 27 |
| 4 brm house | $600.00 | 30 | 3 brm house | $550.00 | 115 |
| Ranui | 4 brm house | $730.00 | 57 | ||
| 2 brm flat | $380.00 | 6 | 5+ brm house | $790.00 | 18 |
| 2 brm house | $400.00 | 18 | Western Beaches / Rural | ||
| 3 brm house | $470.00 | 72 | 1 brm flat | $280.00 | 13 |
| 4 brm house | $580.00 | 11 | 2 brm flat | $395.00 | 5 |
| 2 brm house | $420.00 | 36 | |||
| 3 brm house | $517.00 | 60 | |||
| 4 brm house | $620.00 | 29 | |||
| 5+ brm house | $825.00 | 6 | |||
Source NZ Government building & housing
|
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|
New Lynn |
|||
|
Date |
Median selling price |
5 year gain % |
|
| July 1997 | $190,000 |
- |
|
| July 2002 | $205,500 |
+ 7.9% |
|
| July 2007 | $365,000 |
+ 43.8% |
|
| July 2012 | $411,250 |
+ 12.7% |
|
| July 2017 | $605,000 |
+ 47.1% |
|
| Over 20 years |
+ 218.4% |
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|
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|
Ranui |
|||
|
Date |
Median selling price |
5 year gain % |
|
| July 1997 |
$164,000 |
- |
|
| July 2002 |
$132,000 |
- 19.2% |
|
| July 2007 |
$292,000 |
+ 120.4% |
|
| July 2012 |
$420,250 |
+ 43.9% |
|
| July 2017 |
$970,000 |
+ 130.8% |
|
| Over 20 years |
+ 491.5% |
||
Source NZ department of statistics
The Benefits of a Regular Home Inspection
There are very few rental properties in West Auckland with a market value of less than $500,000, that’s half a million dollars!
Few, if any West Auckland landlords will be driving a car worth $500,000 yet they would consider it foolish not to have their car maintained and serviced on a regular basis, even if it cost 1 / 10th of the price of their rental property. So why it is that most don’t have a regular professional home maintenance inspection on their much more valuable rental property?
Beyond cleaning and painting most landlords only fix problems as they arise. At that point the cost to fix could be many times the cost that would have been required to maintain the property before it needed fixing. Let me give you an example. A small rust hole in a roof may mean that water drips into the ceiling over a period of weeks or months until the ceiling falls into the lounge.
What happened was that the un-noticed water was soaked up by the loft insulation which became heavier and eventually saturated until the gib ceiling became soaked, lost its strength and collapsed into the lounge. The repair cost is now substantial – probably several thousands of dollars. What is now required to repair?
- Cleaning up the mess and drying the lounge carpet.
- Removing the insulation from the loft and paying “tip” fees to dump it.
- Drying out the loft.
- Installing a new gib ceiling.
- Gib stopping and sanding a new ceiling.
- Gib sealing and painting the new ceiling.
- Possible light fitting electrical repairs.
- Installing new loft insulation.
- Fix the hole in the roof.
A regular say 5 yearly professional home inspection would pick up such potential problems that could then be maintained at a fraction of the repair cost. The typical cost of a professional home inspection depending on the size of the house would be $400 – $800. That is $80 – $160 per year if done every 5 years. A very good investment that could save thousands, a lot of inconvenience and possible lost rent. For a good home inspector look online at www.nocowboys.co.nz/ and check out the reviews.
Until next time,
Best wishes,
John Goodrum
Licensee Agent REAA 2008
021945140
thelegendofthewest@gmail.com
09 838 8895