Hello,
Welcome to the sixth edition of the West Auckland monthly Residential Landlords Newsletter.
I am a landlord myself and have been for over 30 years. I have just brought another rental investment last month in West Auckland. I currently own rental properties in South Auckland, the North Shore and West Auckland. Being a high preforming Real Estate Agent (top 1% in New Zealand) for over 25 years and always working in West Auckland I know the real estate market and the rental market very well.
In this and ongoing 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 real estate matter.
|
Sale Prices |
|||
| Suburb |
Median selling price September 2014 |
No sold | Days to sell |
| Titirangi | $ 738,000 |
18 |
41 |
| West Harbour | $ 661,000 |
15 |
28 |
| Glendene | $ 567,000 |
10 |
30 |
| Henderson | $ 566,000 |
51 |
25 |
| Massey | $ 530,000 |
33 |
27 |
| Royal Heights | $ 605,000 |
6 |
36 |
| Ranui | $ 532,500 |
26 |
43 |
| Sunnyvale | $ 498,500 |
10 |
26 |
| Green Bay | $ 652,000 |
4 |
34 |
| Laingholm | $ 579,000 |
5 |
100 |
| Te Atatu Peninsula | $ 722,500 |
18 |
23 |
| Te Atatu South | $ 627,500 |
22 |
23 |
| Glen Eden | $ 540,000 |
25 |
32 |
| Kelston | $ 468,000 |
9 |
35 |
| New Lynn | $ 537,778 |
20 |
22 |
| Swanson | $ 605,100 |
9 |
33 |
|
Current Mortgage Rates 01/12/2014 |
|||||
| Float | 1 yr fixed | 2 yr fixed | 3 yr fixed | 5 yr fixed | |
| ANZ |
6.74% |
6.09% |
6.19% |
6.39% |
6.59% |
| ASB |
6.75% |
5.99% |
6.19% |
6.39% |
6.49% |
| BNZ |
6.74% |
5.89% |
6.19% |
6.29% |
6.59% |
| Westpac |
6.59% |
6.09% |
6.39% |
6.65% |
6.99% |
| Kiwi Bank |
6.65% |
5.69% |
6.19% |
6.55% |
6.69% |
| Best of other lenders |
5.65% |
5.39% |
5.49% |
5.69% |
5.99% |
|
Current Rents |
|||||
|
1st June - 30th Nov 14 |
|||||
| Glen Eden |
Average Rent |
Bonds Paid |
Ranui | Average Rent | Bonds Paid |
| 1 Brm Apartment |
$ 219.00 |
5 |
2 brm house | $ 366.00 |
8 |
| 2 Brm Apartment |
$ 314.00 |
6 |
3 brm house | $ 410.00 |
72 |
| 1 Brm flat |
$ 261.00 |
8 |
4 brm house | $ 480.00 |
10 |
| 2 Brm flat |
$ 314.00 |
29 |
Royal Heights/Massey |
|
|
| 3 Brm flat |
$ 392.00 |
6 |
2 Brm flat | $ 329.00 |
12 |
| 2 brm house |
$ 359.00 |
33 |
2 brm house | $ 356.00 |
18 |
| 3 brm house |
$ 419.00 |
104 |
3 brm house | $ 416.00 |
135 |
| 4 brm house |
$ 509.00 |
18 |
4 brm house | $ 494.00 |
40 |
| Glenene |
|
|
5+ brm house | $ 579.00 |
11 |
| 1 Brm flat |
$ 341.00 |
5 |
Te Atatu South |
|
|
| 2 Brm flat |
$ 339.00 |
11 |
1 Brm flat | $ 262.00 |
7 |
| 2 brm house |
$ 377.00 |
17 |
2 Brm flat | $ 370.00 |
14 |
| 3 brm house |
$ 423.00 |
69 |
2 brm house | $ 367.00 |
17 |
| 4 brm house |
$ 495.00 |
13 |
3 brm house | $ 443.00 |
53 |
| Henderson |
|
|
Te Atatu Peninsula |
|
|
| 1 Brm Apartment |
$ 277.00 |
7 |
2 Brm Apartment | $ 417.00 |
5 |
| 2 Brm Apartment |
$ 406.00 |
6 |
1 Brm flat | $ 268.00 |
5 |
| 1 Brm flat |
$ 300.00 |
23 |
2 brm house | $ 375.00 |
20 |
| 2 Brm flat |
$ 328.00 |
44 |
3 brm house | $ 452.00 |
69 |
| 3 Brm flat |
$ 381.00 |
5 |
4 brm house | $ 525.00 |
14 |
| 1 brm house |
$ 300.00 |
10 |
Titirangi |
|
|
| 2 brm house |
$ 384.00 |
49 |
1 Brm flat | $ 316.00 |
9 |
| 3 brm house |
$ 426.00 |
216 |
2 Brm flat | $ 361.00 |
13 |
| 4 brm house |
$ 513.00 |
93 |
1 brm house | $ 297.00 |
7 |
| 5+ brm house |
$ 622.00 |
11 |
2 brm house | $ 401.00 |
30 |
| 1 room |
$ 228.00 |
8 |
3 brm house | $ 466.00 |
72 |
| Kelston |
|
|
4 brm house | $ 528.00 |
23 |
| 1 Brm Apartment |
$ 288.00 |
27 |
5+ brm house | $ 735.00 |
5 |
| 1 Brm flat |
$ 269.00 |
13 |
West Harbour |
|
|
| 2 Brm flat |
$ 349.00 |
20 |
1 Brm flat | $ 293.00 |
6 |
| 3 Brm flat |
$ 400.00 |
5 |
2 brm house | $ 367.00 |
17 |
| 1 brm house |
$ 261.00 |
5 |
3 brm house | $ 467.00 |
84 |
| 2 brm house |
$ 380.00 |
23 |
4 brm house | $ 621.00 |
35 |
| 3 brm house |
$ 432.00 |
48 |
5+ brm house | $ 695.00 |
16 |
| 4 brm house |
$ 475.00 |
8 |
Western Beaches/Rural |
|
|
| New Lynn |
|
|
1 Brm flat | $ 316.00 |
5 |
| 1 Brm Apartment |
$ 281.00 |
18 |
1 brm house | $ 277.00 |
6 |
| 2 Brm Apartment |
$ 349.00 |
11 |
2 brm house | $ 351.00 |
40 |
| 1 Brm flat |
$ 280.00 |
8 |
3 brm house | $ 469.00 |
55 |
| 2 Brm flat |
$ 342.00 |
46 |
4 brm house | $ 561.00 |
23 |
| 3 Brm flat |
$ 387.00 |
6 |
5+ brm house | $ 593.00 |
8 |
| 2 brm house |
$ 366.00 |
32 |
1 room | $ 183.00 |
7 |
| 3 brm house |
$ 441.00 |
81 |
|||
| 4 brm house |
$ 545.00 |
21 |
|||
| 1 room |
$ 187.00 |
10 |
|||
Source NZ Government building & housing
|
|
||||||
|
Sunnyvale |
||||||
| Date | Median selling price | 5 year gain % | ||||
| April 1994 | $ 118,500.00 | |||||
| April 1999 | $ 178,000.00 |
50.2 |
||||
| April 2004 | $ 212,500.00 |
19.4 |
||||
| April 2009 | $ 300,000.00 |
41.2 |
||||
| April 2014 | $ 447,500.00 |
49.1 |
||||
| Over 20 years |
277.6% |
|||||
|
||||||
|
Green Bay |
||||||
| Date | Median selling price | 5 year gain % | ||||
| Sep 1994 | $ 177,500.00 | |||||
| Sep 1999 | $ 205,000.00 |
15.5 |
||||
| Sep 2004 | $ 360,000.00 |
75.6 |
||||
| Sep 2009 | $ 399,500.00 |
11.0 |
||||
| Sep 2014 | $ 610,000.00 |
34.5 |
||||
| Over 20 years |
243.7% |
|||||
Source NZ dept of statistics
L.V.R The Property Investor’s Window of Opportunity
Probably the biggest window of opportunity handed to residential property investors was the reserve banks introduction of the Loan to Value Ratio (LVR) announced in August and introduced in October 2013.
In simple terms banks are only allowed to provide mortgages to house buyers with a minimum of 20% deposit. This applies to 90% of a banks residential mortgage lending. At a stroke all the struggling would be first home buyers need not 10% but 20% deposit.
This effectively cuts out a large percentage of first home buyers. Since the reserve bank could not affect the supply of houses quickly they attacked the demand side by reducing the number of buyers able to buy. The belief was that this would stop prices rising.
It is now 12 months since the LVR rules were introduced, in the last 12 months property prices in West Auckland have risen by 10.0% (REINZ stats). The reserve bank believes that the introduction of the LVR was equivalent to a 0.25 – 0.50 increase in the OCR which would have probably increased the value of the $NZ making it harder for NZ exporters.
The reserve bank has also continually signalled that the LVR restrictions are a short term measure. There was in fact a lot of speculation that the LVR would be eased or removed this month- which never happened.
What this means to residential property investors is that there still exists a window of opportunity to buy without the competition of most first home buyers, while mortgage rates are still very favourable and banks are aggressively competing against each other to lend to investors so as to make up for the missing business from first home buyers.
Personally I was not interested in an Xbox or a flat screen T.V which banks give away; when I brought another rental investment this month I opted for the cash to pay for my legal fees and to plough back my property investments.
Given this window of opportunity is it a good time to buy a rental investment even when prices seem too high? I am convinced it is. If you need further evidence read my West Auckland Landlords newsletter issue 3- google Blog John Goodrum.
Don’t let the window of opportunity close on you.
Until next time,
Best wishes,
John Goodrum
Licensee Agent REAA 2008
thelegendofthewest@gmail.com
02194514009
838 8895