Hello,
Welcome to the twenty-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
| 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 June 2016 |
No sold | Days to sell |
| Titirangi |
$890,000 |
23 |
37 |
| West Harbour |
$1,005,000 |
22 |
29 |
| Glendene |
$763,000 |
13 |
22 |
| Henderson |
$830,000 |
61 |
31 |
| Massey |
$712,000 |
41 |
27 |
| Ranui |
$660,000 |
22 |
32 |
| Sunnyvale |
$750,000 |
11 |
32 |
| Te Atatu Peninsula |
$1,009,000 |
28 |
30 |
| Te Atatu South |
$1,114,750 |
20 |
35 |
| Glen Eden |
$680,000 |
31 |
28 |
| New Lynn |
$720,000 |
32 |
27 |
| Swanson |
$760,000 |
13 |
32 |
| Kelston |
$688,000 |
9 |
37 |
| Green Bay |
$885,000 |
5 |
31 |
| Laingholm |
$908,500 |
4 |
45 |
| Royal Heights |
$754,000 |
6 |
24 |
Source REINZ
|
Current Mortgage Rates (14/07/2016) |
|||||
|
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 |
5.65% |
4.25% |
4.29% |
4.34% |
4.79% |
| BNZ |
5.69% |
4.25% |
4.19% |
4.49% |
5.15% |
| Westpac |
5.75% |
4.25% |
4.29% |
4.49% |
4.89% |
| Kiwi Bank |
5.45% |
4.19% |
4.29% |
4.49% |
4.99% |
| Best of other lenders |
5.34% |
4.19% |
4.15% |
4.34% |
4.79% |
Source – J Goodrum – Internet search
| Current Rents | |||||
| 1st Jan – 30th June 16 | |||||
| Glen Eden | Average Rent | Bonds Paid | Royal Heights/Massey | ||
| 1 brm flat | $167.00 | 6 | 1 brm flat | $275.00 | 9 |
| 2 brm flat | $370.00 | 15 | 2 brm flat | $390.00 | 5 |
| 3 brm flat | $450.00 | 5 | 2 brm house | $385.00 | 24 |
| 1 brm house | $320.00 | 5 | 3 brm house | $470.00 | 153 |
| 2 brm house | $385.00 | 21 | 4 brm house | $530.00 | 50 |
| 3 brm house | $450.00 | 100 | 5+ brm house | $665.00 | 10 |
| 4 brm house | $475.00 | 19 | Te Atatu South | ||
| Glendene | 1 brm flat | $265.00 | 9 | ||
| 1 brm flat | $320.00 | 5 | 2 brm flat | $395.00 | 18 |
| 2 brm flat | $360.00 | 11 | 2 brm house | $420.00 | 23 |
| 2 brm house | $390.00 | 27 | 3 brm house | $490.00 | 57 |
| 3 brm house | $450.00 | 48 | 4 brm house | $570.00 | 9 |
| 4 brm house | $530.00 | 20 | 5+ brm house | $730.00 | 5 |
| 5+ brm house | $740.00 | 8 | Te Atatu Peninsula | ||
| Henderson | 1 brm flat | $310.00 | 7 | ||
| 1 brm apartment | $325.00 | 5 | 2 brm flat | $420.00 | 9 |
| 2 brm apartment | $385.00 | 13 | 2 brm house | $415.00 | 28 |
| 1 brm flat | $280.00 | 15 | 3 brm house | $495.00 | 89 |
| 2 brm flat | $370.00 | 48 | 4 brm house | $587.00 | 20 |
| 3 brm flat | $367.00 | 8 | 5+ brm house | $725.00 | 6 |
| 1 brm house | $320.00 | 5 | Titirangi | ||
| 2 brm house | $400.00 | 59 | 1 brm flat | $320.00 | 20 |
| 3 brm house | $470.00 | 221 | 2 brm flat | $390.00 | 19 |
| 4 brm house | $560.00 | 108 | 1 brm house | $320.00 | 7 |
| 5+ brm house | $670.00 | 14 | 2 brm house | $405.00 | 24 |
| Kelston | 3 brm house | $500.00 | 76 | ||
| 1 brm apartment | $300.00 | 26 | 4 brm house | $590.00 | 18 |
| 1 brm flat | $295.00 | 15 | West Harbour | ||
| 2 brm flat | $350.00 | 8 | 2 brm apartment | $500.00 | 5 |
| 3 brm flat | $400.00 | 5 | 1 brm flat | $330.00 | 7 |
| 2 brm house | $400.00 | 22 | 2 brm flat | $400.00 | 8 |
| 3 brm house | $470.00 | 66 | 1 brm house | $405.00 | 5 |
| 4 brm house | $530.00 | 15 | 2 brm house | $425.00 | 18 |
| 5+ brm house | $590.00 | 5 | 3 brm house | $520.00 | 108 |
| New Lynn | 4 brm house | $675.00 | 53 | ||
| 1 brm apartment | $330.00 | 33 | 5+ brm house | $770.00 | 19 |
| 2 brm apartment | $420.00 | 17 | Western Beaches/Rural | ||
| 1 brm flat | $310.00 | 13 | 1 brm flat | $290.00 | 13 |
| 2 brm flat | $385.00 | 59 | 2 brm flat | $365.00 | 6 |
| 3 brm flat | $445.00 | 10 | 2 brm house | $377.00 | 32 |
| 2 brm house | $405.00 | 44 | 3 brm house | $500.00 | 58 |
| 3 brm house | $495.00 | 111 | 4 brm house | $555.00 | 30 |
| 4 brm house | $590.00 | 25 | 5+ brm house | $700.00 | 7 |
| 5+ brm house | $680.00 | 7 | |||
| Ranui | |||||
| 1 brm flat | $340.00 | 5 | |||
| 2 brm house | $400.00 | 9 | |||
| 3 brm house | $440.00 | 78 | |||
| 4 brm house | $550.00 | 13 | |||
Source NZ Government building & housing
|
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|
Titirangi |
|||
|
Date |
Median selling price |
5 year gain % |
|
| June 1996 | $245,500.00 |
- |
|
| June 2001 | $262,500.00 |
+ 6.9% |
|
| June 2006 | $430,000.00 |
+ 63.8% |
|
| June 2011 | $535,000.00 |
+ 24.4% |
|
| June 2016 | $890,000.00 |
+ 66.4% |
|
| Over 20 years |
+ 262.5% |
||
|
Spotlight on capital gains |
Massey
Date
Median selling price
5 year gain %
June 1996
$183,500.00
-
June 2001
$175,000.00
- 15.3%
June 2006
$305,000.00
+ 74.3%
June 2011
$432,500.00
+ 41.8%
June 2016
$712,000.00
+ 64.6%
Over 20 years
+ 288.0%
Source NZ department of statistics
Residential Tenancy Act Law Changes
From the 1st of July 2016 the Residential Tenancies Amendment Bill came into effect. The changes are aimed at reducing fire related injuries and deaths and to make houses warmer, drier and healthier for the millions of tenants who live in rental properties.
The first thing to be aware of is that from the 1st of July this year it became law for landlords to have working smoke alarms installed in their residential rental homes. Also any replacement alarms installed after 1st July 2016 will have to have long life batteries and a photo electric sensor. Hardwired smoke alarms are permitted instead.
Tenants will be responsible for worn out batteries in the smoke alarm and for informing their landlord of any defects. From the 1st July 2019 all private rental properties will be required to have insulation to keep the home warm in the winter and cool in summer. This means that all ceilings must be insulated to R 2.9 and under floors to R 1.3 in the Auckland region.
The R value is a measure of the thermal resistance, the R value of materials differ eg fibreglass batts is different to polyester batts which is different to foam polystyrene. The thicker any given material is the higher the R value. As a rule of thumb doubling the thickness of any given insulation will double the R value. As an example Green Stuff insulation (polyester batts) 175mm thickness will give R 2.9 for ceilings and 100mm will give R 1.5 for under floors.
Tenancy Abandonment Process
It will become easier and quicker from the 1st of July for a landlord to be granted possession of their rental property when the property has been abandoned. The landlord can provide evidence of abandonment to the Tenancy Adjudicator online instead of needing to attend an application.
Enforcement
The Chief Executive of the Ministry of Business, Innovations and Employment will have greater enforcement powers on behalf of the tenant.
Retaliatory Notice
The new law makes it unlawful to end a tenancy in retaliation for a tenant exercising a right under the tenancy agreement.
Visit www.cavius.co.nz – for 10 year long life battery smoke alarms. Also search www.parliament.nz/ residential tenancies amendment bill 2015 for more information on the law changes.
Until next time,
Best wishes,
John Goodrum
Licensee Agent REAA 2008
021945140, 09 838 8895