Hello,
Welcome to the twenty-first 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. | |||
|
Sale Prices |
|||
| Suburb |
Median selling price April 2016 |
No sold | Days to sell |
| Titirangi |
$832,500 |
24 |
37 |
| West Harbour |
$825,000 |
17 |
31 |
| Glendene |
$741,500 |
12 |
33 |
| Henderson |
$760,000 |
85 |
38 |
| Hobsonville |
$900,000 |
7 |
31 |
| Massey |
$725,000 |
53 |
29 |
| Ranui |
$654,000 |
20 |
26 |
| Sunnyvale |
$732,500 |
6 |
40 |
| Te Atatu Peninsula |
$910,000 |
25 |
19 |
| Te Atatu South |
$732,500 |
34 |
35 |
| Glen Eden |
$720,000 |
35 |
38 |
| New Lynn |
$733,000 |
36 |
31 |
| Swanson |
$727,000 |
11 |
36 |
| Kelston |
$694,500 |
8 |
36 |
| Green Bay |
$812,500 |
6 |
16 |
Source REINZ
|
Current Mortgage Rates (13/05/2016) |
|||||
|
Float |
1 yr fixed |
2 yr fixed |
3 yr fixed |
5 yr fixed |
|
| ANZ |
5.64% |
4.25% |
4.35% |
4.99% |
5.30% |
| ASB |
5.55% |
4.25% |
4.19% |
4.65% |
5.25% |
| BNZ |
5.69% |
4.25% |
4.39% |
4.64% |
5.15% |
| Westpac |
5.75% |
4.25% |
4.19% |
4.99% |
5.19% |
| Kiwi Bank |
5.45% |
4.29% |
4.25% |
4.75% |
4.99% |
| Best of other lenders |
5.45% |
4.10% |
4.19% |
4.59% |
4.99% |
Source – J Goodrum – Internet search
| Current Rents | |||||
| 1st Nov 15 – 30th Apr 16 | |||||
| Glen Eden | Average Rent | Bonds Paid | Royal Heights/Massey | ||
| 2 brm apartment | $334.00 | 5 | 1 brm flat | $250.00 | 7 |
| 1 brm flat | $233.00 | 6 | 2 brm flat | $370.00 | 6 |
| 2 brm flat | $370.00 | 16 | 1 brm house | $330.00 | 5 |
| 1 brm house | $330.00 | 5 | 2 brm house | $380.00 | 23 |
| 2 brm house | $390.00 | 26 | 3 brm house | $460.00 | 136 |
| 3 brm house | $450.00 | 93 | 4 brm house | $535.00 | 40 |
| 4 brm house | $480.00 | 21 | 5+ brm house | $660.00 | 7 |
| Glendene | Te Atatu South | ||||
| 2 brm flat | $350.00 | 17 | 1 brm flat | $262.00 | 8 |
| 2 brm house | $390.00 | 26 | 2 brm flat | $385.00 | 14 |
| 3 brm house | $450.00 | 45 | 2 brm house | $425.00 | 18 |
| 4 brm house | $570.00 | 11 | 3 brm house | $480.00 | 51 |
| 5+ brm house | $660.00 | 5 | 4 brm house | $550.00 | 13 |
| Henderson | Te Atatu Peninsula | ||||
| 2 brm apartment | $382.00 | 12 | 1 brm flat | $310.00 | 5 |
| 1 brm flat | $255.00 | 12 | 2 brm flat | $390.00 | 8 |
| 2 brm flat | $380.00 | 43 | 2 brm house | $410.00 | 22 |
| 1 brm house | $295.00 | 5 | 3 brm house | $490.00 | 83 |
| 2 brm house | $395.00 | 60 | 4 brm house | $592.00 | 18 |
| 3 brm house | $460.00 | 201 | 5+ brm house | $700.00 | 5 |
| 4 brm house | $560.00 | 83 | Titirangi | ||
| 5+ brm house | $600.00 | 17 | 1 brm flat | $310.00 | 5 |
| Kelston | 2 brm flat | $390.00 | 8 | ||
| 1 brm apartment | $300.00 | 25 | 2 brm house | $410.00 | 22 |
| 1 brm flat | $297.00 | 18 | 3 brm house | $490.00 | 83 |
| 2 brm flat | $350.00 | 12 | 4 brm house | $592.00 | 18 |
| 2 brm house | $385.00 | 20 | 5+ brm house | $700.00 | 5 |
| 3 brm house | $460.00 | 54 | West Harbour | ||
| 4 brm house | $565.00 | 16 | 2 brm apartment | $500.00 | 8 |
| New Lynn | 2 brm flat | $400.00 | 7 | ||
| 1 brm apartment | $320.00 | 20 | 2 brm house | $430.00 | 19 |
| 2 brm apartment | $42.00 | 17 | 3 brm house | $520.00 | 85 |
| 1 brm flat | $290.00 | 12 | 4 brm house | $655.00 | 44 |
| 2 brm flat | $380.00 | 50 | 5+ brm house | $830.00 | 19 |
| 3 brm flat | $417.00 | 8 | Western Beaches/Rural | ||
| 2 brm house | $400.00 | 43 | 1 brm flat | $290.00 | 7 |
| 3 brm house | $487.00 | 98 | 2 brm flat | $380.00 | 5 |
| 4 brm house | $585.00 | 16 | 1 brm house | $355.00 | 6 |
| 5+ brm house | $675.00 | 6 | 2 brm house | $377.00 | 30 |
| Ranui | 3 brm house | $480.00 | 61 | ||
| 1 brm flat | $287.00 | 6 | 4 brm house | $555.00 | 24 |
| 2 brm house | $382.00 | 8 | |||
| 3 brm house | $430.00 | 64 | |||
| 4 brm house | $510.00 | 7 | |||
Source NZ Government building & housing
|
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|
Glen Eden |
|||
|
Date |
Median selling price |
5 year gain % |
|
| April 1996 | $185,000.00 |
- |
|
| April 2001 | $153,000.00 |
- 17.3% |
|
| April 2006 | $290,000.00 |
+ 89.5% |
|
| April 2011 | $335,500.00 |
+ 15.7% |
|
| April 2016 | $720,000.00 |
+ 114.9% |
|
| Over 20 years |
+ 289.2% |
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|
Spotlight on capital gains |
Te Atatu South
Date
Median selling price
5 year gain %
April 1996
$230,000.00
-
April 2001
$180,000.00
- 21.7%
April 2006
$300,000.00
+ 66.7%
April 2011
$439,000.00
+ 46.3%
April 2016
$732,500.00
+ 66.9%
Over 20 years
+ 218.5%
Source NZ department of statistics
The Rental Market
The percentage of people renting as opposed to those that own their own home has been increasing for a number of years.
Using NZ Census figures:
2006 – 388,275 rented houses in New Zealand.
2013 – 453,135 rented houses in New Zealand.
In 1991 73% of all houses were owner occupied = 27% rentals
in 2013 64% of all houses were owner occupied = 36% rentals
Of the rentals in 2006 78.4% were from the private sector, the rest were Housing NZ and local authority rentals, in 2013 83.7% were from the private sector.
Of all the rentals – 11% = 1 bedroom
29% = 2 bedrooms
45% = 3 bedrooms
15% = 4+ bedrooms
In Auckland in 2006 36.2% of all the homes were rentals, in 2013 38.5% of all the homes were rentals.
With the increases in Auckland house prices continuing and likely to continue for some years due mainly to the shortage of houses and the high levels of net migration the number of people renting will probably continue to increase.
This presents a positive picture for landlords and residential property investors. But who are these much maligned property investors? The vast majority are just working families who have used the equity in their own home to buy rental property.
They pay off their own mortgages helped by the rent from their rental property usually over many years so when they retire they either have a rental income to supplement their pension or they can sell the rental property and have a retirement fund.
Who can blame someone for buying a rental property in Auckland when capital gains have been and are likely to continue to be excellent? What are the alternatives? Shares? Term deposits at the bank? Shares can be a high risk and most people don’t understand the share market. Term deposits on money in the bank gives extremely low returns.
It is time residential property investors were respected for what they provide to Auckland. They pay rates to help run / develop our City. They employ maintenance people, possibly employ property managers and an accountant. When they buy or sell they may employ a real estate agent, lawyer, mortgage broker and may be employ a house cleaning company to clean the home between tenancies.
Landlords in fact contribute a lot to the employment and the well-being of our City. They do one other thing too – they provide a house for around 1/3 of all Aucklanders who cannot or prefer not to buy a house of their own. So give us a break, we are not the bad guys. The government and local council cannot afford to buy and subsides over 180,000 houses in Auckland so please a little more respect to those that do.
Until next time,
Best wishes,
John Goodrum
Licensee Agent REAA 2008
021945140, 09 838 8895