Hello,
Welcome to the eight 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 December 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 January 2015 |
No sold | Days to sell |
| Titirangi | $ 805,000 |
20 |
37 |
| West Harbour | $ 925,000 |
7 |
28 |
| Glendene | $ 610,000 |
10 |
29 |
| Henderson | $ 552,000 |
55 |
22 |
| Massey | $ 512,500 |
22 |
24 |
| Royal Heights | $ 650,000 |
5 |
16 |
| Ranui | $ 498,999 |
23 |
19 |
| Sunnyvale | $ 508,500 |
6 |
33 |
| Te Atatu Peninsula | $ 712,000 |
11 |
27 |
| Te Atatu South | $ 495,000 |
14 |
32 |
| Glen Eden | $ 580,000 |
25 |
30 |
| New Lynn | $ 560,000 |
33 |
28 |
Source REINZ
|
Current Mortgage Rates 18/02/2015 |
|||||
| Float | 1 yr fixed | 2 yr fixed | 3 yr fixed | 5 yr fixed | |
| ANZ |
6.74% |
5.89% |
5.99% |
6.29% |
6.49% |
| ASB |
6.75% |
5.99% |
5.99% |
6.39% |
6.49% |
| BNZ |
6.74% |
5.89% |
6.19% |
6.29% |
6.59% |
| Westpac |
6.59% |
5.99% |
6.19% |
6.39% |
6.59% |
| Kiwi Bank |
6.65% |
5.69% |
6.09% |
6.29% |
6.49% |
| Best of other lenders |
5.75% |
5.29% |
5.19% |
5.29% |
5.29% |
Source – J Goodrum – Internet search
|
Current Rents |
|||||
|
1st Aug 14 – 31st Jan 15 |
|||||
| Glen Eden |
Average Rent |
Bonds Paid |
Royal Heights/Massey | Average Rent | Bonds Paid |
| 1 Brm flat |
$ 264.00 |
12 |
1 Brm flat | $ 274.00 |
5 |
| 2 Brm flat |
$ 343.00 |
15 |
2 Brm flat | $ 337.00 |
9 |
| 2 brm house |
$ 384.00 |
29 |
3 Brm flat | $ 390.00 |
6 |
| 3 brm house |
$ 427.00 |
98 |
2 brm house | $ 352.00 |
20 |
| 4 brm house |
$ 508.00 |
24 |
3 brm house | $ 420.00 |
133 |
| Glenene |
|
|
4 brm house | $ 514.00 |
39 |
| 1 Brm flat |
$ 329.00 |
7 |
5+ brm house | $ 544.00 |
11 |
| 2 Brm flat |
$ 350.00 |
15 |
Te Atatu South |
|
|
| 2 brm house |
$ 372.00 |
21 |
1 Brm flat | $ 262.00 |
8 |
| 3 brm house |
$ 430.00 |
66 |
2 Brm flat | $ 350.00 |
13 |
| 4 brm house |
$ 484.00 |
7 |
2 brm house | $ 392.00 |
17 |
| Henderson |
|
|
3 brm house | $ 441.00 |
51 |
| 1 Brm Apartment |
$ 282.00 |
6 |
4 brm house | $ 494.00 |
7 |
| 1 Brm flat |
$ 297.00 |
14 |
5+ brm house | $ 567.00 |
5 |
| 2 Brm flat |
$ 335.00 |
44 |
Te Atatu Peninsula |
|
|
| 1 brm house |
$ 312.00 |
7 |
2 Brm Apartment |
$ 432.00 |
9 |
| 2 brm house |
$ 387.00 |
58 |
2 brm house | $ 379.00 |
19 |
| 3 brm house |
$ 429.00 |
226 |
3 brm house | $ 449.00 |
69 |
| 4 brm house |
$ 523.00 |
83 |
4 brm house | $ 574.00 |
15 |
| 5+ brm house |
$ 578.00 |
12 |
5+ brm house | $ 712.00 |
6 |
| 1 room |
$ 227.00 |
9 |
Titirangi |
|
|
| Kelston |
|
|
1 Brm flat | $ 292.00 |
11 |
| 1 Brm Apartment |
$ 287.00 |
29 |
2 Brm flat | $ 361.00 |
13 |
| 1 Brm flat |
$ 257.00 |
16 |
1 brm house | $ 317.00 |
10 |
| 2 Brm flat |
$ 345.00 |
18 |
2 brm house | $ 400.00 |
28 |
| 2 brm house |
$ 386.00 |
23 |
3 brm house | $ 468.00 |
80 |
| 3 brm house |
$ 435.00 |
57 |
4 brm house | $ 555.00 |
26 |
| 4 brm house |
$ 485.00 |
12 |
5+ brm house | $ 679.00 |
5 |
| New Lynn |
|
|
West Harbour |
|
|
| 1 Brm Apartment |
$ 288.00 |
15 |
2 brm house | $ 371.00 |
20 |
| 2 Brm Apartment |
$ 370.00 |
10 |
3 brm house | $ 481.00 |
73 |
| 1 Brm flat |
$ 290.00 |
8 |
4 brm house | $ 635.00 |
31 |
| 2 Brm flat |
$ 350.00 |
39 |
5+ brm house | $ 700.00 |
13 |
| 2 brm house |
$ 374.00 |
33 |
Western Beaches/Rural |
|
|
| 3 brm house |
$ 451.00 |
75 |
1 Brm flat | $ 324.00 |
5 |
| 4 brm house |
$ 530.00 |
15 |
1 brm house | $ 393.00 |
5 |
| 1 room |
$ 191.00 |
9 |
2 brm house | $ 355.00 |
43 |
| Ranui | 3 brm house | $ 468.00 |
56 |
||
| 2 brm house | $ 371.00 |
9 |
4 brm house | $ 582.00 |
18 |
| 3 brm house | $ 409.00 |
73 |
5+ brm house | $ 644.00 |
8 |
| 4 brm house | $ 469.00 |
11 |
|||
Source NZ Government building & housing
|
||||||
|
Glen Eden |
||||||
| Date | Median selling price | 5 year gain % | ||||
| Jan 1994 | $ 105,000.00 | |||||
| Jan 1999 | $ 136,000.00 |
29.5 |
||||
| Jan 2004 | $ 271,000.00 |
99.3 |
||||
| Jan 2009 | $ 314,000.00 |
15.9 |
||||
| Jan 2014 | $ 580,000.00 |
84.7 |
||||
| Over 20 years |
452.3% |
|||||
|
||||||
|
Green Bay |
||||||
| Date | Median selling price | 5 year gain % | ||||
| Jan 1994 | $ 105,000.00 | |||||
| Jan 1999 | $ 183,000.00 |
74.3 |
||||
| Jan 2004 | $ 239,500.00 |
30.9 |
||||
| Jan 2009 | $ 367,250.00 |
53.3 |
||||
| Jan 2014 | $ 530,000.00 |
44.3 |
||||
| Over 20 years |
404.7% |
|||||
Source NZ dept of statistics
Building Inspections
when
Buying or Selling your Rental
Buying: To protect your investment it is important to know what you are buying. There are too many risks buying today and not getting a professional building report before going unconditional. The risk of buying a property with weather tightness issues is high. There are perhaps thousands of properties in West Auckland which are suffering from that or have potential weather tightness issues. I believe that for the few hundred dollars involved a professional building inspection is essential today. Weather tightness problems occur mainly in properties built between 1994 and 2004. The major causes were:
- The cladding systems such as fibre cement sheets and other monolithic cladding systems to give them the popular Mediterranean look.
- The use of untreated framing timber which had no protection from rot.
- Construction without a cavity (which allows any moisture to dry out).
- Designs that incorporate complex roof structures and “flat” roof systems including very small or no eaves.
- The breakdown of the building apprenticeship system which many say resulted in poorer quality workmanship during construction
There are of course other contributing factors too. Homes other than those built between 1994 to 2004 may also have weather tightness issues. A professional building report incorporates moisture testing by trained and qualified inspectors and can identify existing and potential future problems. Other Issues As well as weather tightness a professional building inspection report will inspect and identify many other faults perhaps not readily seen by the purchaser. The report should cover structural, roof, interior, exterior, crawl space, electrical, plumbing, heating and ventilation and so on. Who to Use? Be careful there are a lot of self-professed but not qualified as home inspectors out there. Just because a builder or ex builder claims to have 20 years building experience that does not qualify them in any way as a home inspector. It qualifies them as a builder. Professionally qualified house inspectors have had to study all aspects of house inspection including drainage, structural, roof, exterior, interior, plumbing, electrical, heating and ventilation and more. Inspectors then need to sit and pass examinations to obtain their inspector qualifications. House inspector are trained and qualified to identify problems not fix them. They are not builders or plumbers or electricians or structural engineers. After all you would not expect a builder to be able to fix electrical problems or plumbing issues would you?! Each is a specialised skill. The largest world wide house inspection professional organisation with qualified members in 58 counties is the USA based Internachi- http://www.nachi.org/. All of their members are qualified and insured house inspectors who are required to undertake ongoing education every year and resit the qualifying examinations every 3 years. In NZ there is a trade website called No Cowboys- see www.nocowboys.co.nz which gathers customer feedback and is a good source for building related including house inspectors- go to http://www.nocowboys.co.nz/search/new-zealand/property-consultants. A buyers choice home inspections which covers all of Auckland has the highest customer rating at 98% satisfaction from 79 ratings at the time producing this newsletter. Until next time, Best wishes, John Goodrum Licensee Agent REAA 2008 thelegendofthewest@gmail.com 021945140 09 838 8895