MODERATELY PRICED RECENT COMMERCIAL SALES

Recent Moderately Priced Commercial Sales.

82 Cable St, units GC, GB & 89 Wellington
Features: 261m² retail units on a high profile corner site
Outcome: sold with vacant possession for $979,000

6 Edward St: Te Aro
Features: 215m2 site, century-old 650m² 3-level, mixed-use character building; ground-floor anchor tenant is popular craft beer bar, office level above occupied by vendor, 6- bedroom apartment on top floor
Rent: $78,000/year net + gst with potential to increase to $120,000 by leasing office floor
Outcome: sold for $1.45 million

9 Ellice Rd, unit 1D: Wairau Valley
Features: 341m² roadfront unit in 35-unit development by Kea Property Group Ltd – office 205m², warehouse/manufacturing 118m², mezzanine 18m², 9 parking spaces
Rent: $74,000/year net + gst from 4-year lease to City Electrical Ltd signed in June, 3 4-year rights of renewal
Outcome: sold at auction yesterday for $1.482 million at a 4.99%

12 Industrial Lane:Queenstown
Features: 430m² office & warehouse,
Outcome: sold for $1.08 million at a 6.48% yield

185 Montgomerie Rd, units 5 & 6:
Features: 2 industrial units of 463m² & 343m²
Outcome: sold for $1.425 million + gst

8 Kerwyn Avenue, unit B: East Tamaki
Features: 379.6m² workshop with office & amenities, tenant on site for 20 years & on new 3-year lease
Rent: $46,800/year net
Outcome: sold for $680,000 6.7% yield

75 Porana Rd, unit C: Wairau Valley
Features: 1884m² bulk retail building – retail 1070.32m², office 411.54m², warehouse 401.654m², 49 parking spaces
Rent: $317,300/year net + gst
Outcome: sold by tender in September for $4,917,300 + gst at a 6.45% yield, $610/m²

4 Corinthian Drive, unit 10:Albany
Features: 102m² retail unit – retail 85m², 17m² other area
Rent: $45,000/year net
Outcome: sold in August for $910,000 + gst at a 4.95% yield, $8835/m²

9-21 Triton Drive, unit F: Rosedale
Features: 700m² industrial building occupied by Global Survey Ltd, 14 parking spaces
Rent: $144,000/year net
Outcome: sold in September for $2.467 million + gst at a 5.8% yield

Photo: Porana Rd Wairau Valley
Source: Bob Dey

Free Information Evening-Commercial Property

HOW TO INVEST IN COMMERCIAL PROPERTY
FREE INFORMATION EVENING
TUESDAY 20th SEPTEMBER 6.30 – 7.30 pm
This information evening is designed for a small group of up to only 12 persons as an introduction on how to invest in commercial property
EARLY BOOKING ESSENTIAL- LIMITED SPACE ONLY

This Masters Course in Commercial Property has been especially designed for those who wish to learn and invest in commercial property (e.g. shops, offices, factories etc) where the yields are far in excess of residential property and the chances of capital gain are the same or better.

Many commercial properties can be purchased for same price as a residential property so are well within the reach of the average investor.
We believe commercial property is in the early stages of a long-term growth cycle. Increased demand from residential investors seeking higher yields, immigrants starting businesses, and local businesses expanding have started to fuel an upward trend in the commercial market.

The commercial property cycle runs at a different speed and frequency to the residential cycle and is now past its recovery phase and into the early stages of a boom.

Now is the time to invest in commercial property before it becomes the next boom market. This process won’t happen overnight, but will play out over the coming years. Those starting now will enjoy the more profitable deals, while those late to the party will find it more difficult to achieve similar results.

The Commercial Property Masters Program is for investors who are new to commercial property investing and want to equip themselves for success in this field.

To have a no-obligation chat contact us through
“info@newlandburling.com”
or call: 0800 5224939 or 0800 522622 or 021931949

SYLLABUS
A 12-month program designed to give you an individualised strategy and knowledge to kickstart your commercial property investing journey and help you achieve your financial goals.

Stage 1: Setup (Analysis, Plan & Education)
• Obtain relevant information to develop and assess your overall financial position • Assess your risk profile • Explore and confirm your short-term and long-term goals • Obtain relevant information on your current properties • Assess current loan structures • Analyse and critique your existing portfolio and financial position • Prepare and discuss with you an investment strategy and action plan to achieve your goals • Assist with ownership structures if required • Books, resources and training seminars to help you understand the nuances of commercial property ownership and leasing strategies.

Stage 2: Implementation
Consulting services to help you implement your investment plan. Includes…
• Property finding advice • Desktop due diligence on potential acquisitions • 7-day access to the Newland Burling team • Quarterly evening functions.

TESTIMONIALS
“We would have made terrible mistakes without them, seriously. They do know what they’re talking about.”
- Ivan Morris

“There are property mentorship programmes that you pay a lot more for so we were comfortable with the price. A lot of people would think it was a huge amount of money whereas for us the property we bought for $1.5 million is now worth about $2.1 to $2.2 million in a year. We made a lot of money from it. And we wouldn’t have bought that property had we not done the program. What we paid pales in comparison to what we made.”
- Elizabeth Moore

THE EVENING WILL BE HELD IN OUR EPSOM BOARDROOM
LIGHT REFRESHMENTS WILL BE SERVED.

To have a no-obligation chat contact us through
“info@newlandburling.com”
or call: 0800 5224939 or 0800 522622 or 021931949

PLEASE NOTE: If you are interested you should be aware that commercial property should not be confused with residential property. The rules and regulations that the Reserve Bank has announced over the past year or two do NOT apply to commercial. There are no LVR rules from the RB for commercial. There is no Tenancy Tribunal to interfere with your rights, and no limitation on bonds. Commercial tenants usually pay all outgoings such as rates, insurance water etc and almost always internal repairs and management fees. Most commercial tenancies have proper leases which fully set out the rights and obligations of all parties and these need careful analysis. As Authorised Financial Advisers we are able to give you personal financial advice on all your financial affairs to ensure that you get the best opportunities to get ahead.

HOUSING MEASURES ”NOT TERRIBLY EFFECTIVE” – PM

( Comment: Any bright line test will not only not work but will make matters worse. So long as capital gains can be made people will continue to buy whatever the consequences. A bright line test extended out will only ensure that people will hang longer on and thereby make the shortage of houses worse still.
You would have thought the powers that be would have learned from the disastrous 1970’s experiment when the Labour party tried to stamp out “speculators ” by introducing a property speculation tax confiscating 90% of profits from any sales done within two years of purchase.
This resulted in a mass withdrawal of property from the market and drove prices up through the roof. In any event if anyone sells and makes a profit inside any bright line barrier, ordinary tax would be around 25% after deductions, so keeping 75% is not a bad deal at all. In any event how anyone can work out what constitutes a “profit” must be an accountants headache. Not only are there acquisition and disposition expenses but all those in between.
Increasing LVR limits will drive investors into creating syndicates or partnerships which would be highly dangerous. Getting into a deal is easy. Getting out is the hard part and that’s when huge fights will break out. Greedy people tend to suspend logic about the risks around personal guarantees, management, when to sell. and who does what and when. The bureaucrats, and economists seem to get all their ideas out of text books and not from those with a life time of hands-on experience. Remember: When election time comes, be sure to vote for the party that will do the least harm).
*******

“Prime Minister John Key addresses the media over the Auckland housing issues after a function in West Auckland today. Photo / Dean Purcell
Prime Minister John Key says his Government has not changed its mind about controlling the demand for housing in New Zealand, despite telling the Reserve Bank to target investors in the housing market.

Key reiterated today that he wanted the central bank to crack down on property investors immediately, saying that stricter loan-to-value ratios (LVRs) could have been introduced “overnight” to stem the level of investor activity.

However, that did not mean that the Government had softened its stance on demand-side measures for housing.

Policies which curbed demand were “not terribly effective” at slowing up house prices, Key told reporters in Auckland this afternoon.

“I remember when everyone said to [introduce] the equivalent of a bright line test, it will solve the issues. Well, it really didn’t.”

The bright line test, introduced in October, required people who bought and sold a property within two years to pay tax on the capital gain.

It was credited with helping to slow house price inflation in late 2015 and early 2016, though prices have since taken off again, driven by high levels of investor activity.

Read the rest here:

http://www.nzherald.co.nz/nz/news/article.cfm…

EXTRA SPACES THURSDAY

PLEASE NOTE: BECAUSE OF DEMAND WE WILL HAVE ANOTHER FREE INFORMATION EVENING ON THE DAY AFTER BEING THURSDAY 16TH JUNE. SAME TIME, SAME PLACE. 6.30-7.30 pm. (SEE BELOW

 

 

 

LEARN ABOUT COMMERCIAL PROPERTY

FREE INFORMATION EVENING WEDNESDAY 15TH JUNE

ONLY TWO SEATS LEFT-BOOK TODAY
How to Invest in Commercial Property
Date : Wednesday 15th June 2016
Time : 6.30 – 7.30 , (followed by questions)
Location : Auckland
Venue : Newland Burling Offices.
268 Manukau Rd, Epsom.
(LIGHT REFRESHMENTS PROVIDED)
HOW TO INVEST IN COMMERCIAL PROPERTY
Newland Burling & Co Authorised Financial Advisors.

Commercial Property Masters Program

This course has been especially designed for those who wish to learn how to invest in commercial property (e.g. shops, offices, factories etc) where the yields are far in excess of residential property and the chances of capital gain are the same or better.

Book now: http://www.newlandburling.co.nz/contact/

Many commercial properties can be purchased for same price as a residential property so are well within the reach of the average investor.

We believe commercial property is in the early stages of a long-term growth cycle. Increased demand from residential investors seeking higher yields, immigrants starting businesses, and local businesses expanding have started to fuel an upward trend in the commercial market.

The commercial property cycle runs at a different speed and frequency to the residential cycle and is now past its recovery phase and into the early stages of a boom.

Now is the time to invest in commercial property before it becomes the next boom market. This process won’t happen overnight, but will play out over the coming years. Those starting now will enjoy the more profitable deals, while those late to the party will find it more difficult to achieve similar results.

The Commercial Property Masters Program is for serious investors who are new to commercial property investing and want to equip themselves for success in this field.

SYLLABUS
A 12-month program consisting of 10 modules designed to give you an individualised strategy and knowledge to kick-start your commercial property investing journey and help you achieve your financial goals. Also included are
manuals, CDs and books covering all the topics in the program.
The course covers 8 modules over 3 – 4 evenings or on a one to one basis
then up to 12 months follow up. Personlised advice on all your financial affairs will be included at no extra charge during the course. Private sessions can be obtained including due diligence, financing,and refinancing, portfolio tune ups, selling, purchasing, offers, counter offers, tenders, auctions, sub dividing, over seas purchases, budgeting, Both residential and commercial can be advised upon. Families, partnerships, investment groups, syndicates also included.

As Authorised Financial Advisors (AFA’s) you can be assured complete discretion at all times.

Stage 1: Setup (Analysis, Plan & Education)
• Obtain relevant information to develop and assess your overall financial position • Assess your risk profile • Explore and confirm your short-term and long-term goals • Obtain relevant information on your current properties • Assess current loan structures • Analyse and critique your existing portfolio and financial position • Prepare and discuss with you an investment strategy and action plan to achieve your goals • Assist with ownership structures if required • Books, resources and training seminars to help you understand the nuances of commercial property ownership and leasing strategies.

Stage 2: Implementation
Consulting services to help you implement your investment plan. Includes…
• Property finding advice • Desktop due diligence on potential acquisitions • 7-day access to the Newland Burling team • Quarterly evening functions.

TESTIMONIALS
“We would have made terrible mistakes without them, seriously. They do know what they’re talking about.”
- Ivan Morris

“There are property mentorship programmes that you pay a lot more for so we were comfortable with the price. A lot of people would think it was a huge amount of money whereas for us the property we bought for $1.5 million is now worth about $2.1 to $2.2 million in a year. We made a lot of money from it. And we wouldn’t have bought that property had we not done the program. What we paid pales in comparison to what we made.”
- Elizabeth Moore

Book now: http://www.newlandburling.co.nz/contact/

PROGRAM
2016 program commences 4th July. .
Or One-to-one option as mutually agreed

Places available are strictly limited so early booking is essential.

REGISTER YOUR INTEREST NOW FOR THE FREE INFORMATION EVENING ON WEDNESDAY 15TH JUNE, 6.30 – 7.30 .

Feel free to call Estelle on 09 5224936 / 021 931949 to REGISTER,

OR TO BOOK:

Book now: http://www.newlandburling.co.nz/contact/

 

 

 

WESTPAC BANS ASIAN BUYERS-TIGHTENS LVR RULES

Lending Update: Changes to our home loan policy in relation to borrowers with offshore income

Good Morning,

Today we are making changes to our home loan policy with respect to borrowers who are based overseas or earn overseas income.  Included below is a summary of the changes and why we have made this change.

Summary of the policy changes

Effective today, Thursday 9 June:
Westpac will no longer lend to non-resident borrowers with overseas income
The maximum allowable LVR for NZ citizens and permanent residents with overseas income is 70% (from 85%)
Borrowers on temporary resident visas will only be accepted if they have both a New Zealand address and NZ based income.
I have an application in progress for a borrower who no longer qualifies or who has an approval for a higher LVR than the revised policy what do I do?
If your application has been approved by Westpac, you may proceed
However if your application has been conditionally approved ‘subject to finding a suitable property’ then that conditional approval can remain in place until the offer expires. If the borrower wishes to amend or extend that approval then you may find that the amended application is declined.
All other applications, i.e. that are not yet approved, may need to be amended or withdrawn.

What is the difference between a migrant customer and an offshore borrower?

A migrant customer may be a temporary resident visa holder, however their intention is to buy property in New Zealand, they are already working in New Zealand, and eventually gain permanent residency. The customers continue to qualify at a lower LVR.

An offshore borrower earning overseas income intends to purchase in New Zealand for investment or temporary purposes, they may live in New Zealand or offshore. These customers no longer qualify.

Are ex-pat New Zealanders living overseas included in these changes?

New Zealand residents and permanent residents who currently live overseas and earn offshore income (not self-employed or business income) are able to borrow however the maximum allowable LVR has been reduced from 85% to 70%.

An updated Lending Guide will be distributed over the coming days which will cover off full details of these changes, including additional criteria that may apply to your customer.

Why we have made this change:
These changes have been made in order to reflect our continued obligations for responsible lending along with a recent review of our home loan policies in relation to lending and foreign income.
In a fast moving market, it is important that we remain committed to building a strong home lending portfolio comprising customers who we have a deep and long term banking relationship with.

We understand these changes will have an impact to you and your clients, as always please continue to talk to your Business Development Manager in the first instance if you have any queries regarding this change.

Regards,

Rachael Lelean

 

 

 

 

HOUSE PRICES SMASH RECORDS-MARCH


House Price Records Smashed Across New Zealand In March

Record median house prices are being seen across multiple regions of New Zealand as the Auckland market shows its strength and pushes the Halo Effect of rising median prices across the country, according to the latest figures released today by REINZ, source of the most recent, complete and accurate real estate data in New Zealand.

Demonstrating that recent fears of the Auckland market cooling off were overstated, median prices across the city have rebounded and shot through $800k for the first time, to a new record high of $820,000.

Record median house prices have also been seen in Waikato/Bay of Plenty, Wellington, Nelson/Marlborough, Canterbury/Westland, and extraordinary growth in Central Otago Lakes.

Summary

9,527 dwellings sold in New Zealand in March 2016, up 30.7% on February and up 8.2% on March 2015. This is the highest number of sales in March since 2007.

On a seasonally adjusted basis the number of dwellings sold rose by 5.5% compared to February

National median price of $495,000, up $20,000 (+4.2%) on March 2015 and up 10.0% on February

New record national median prices across New Zealand, New Zealand excluding Auckland, Auckland, Waikato/Bay of Plenty, Wellington, Nelson/Marlborough, Canterbury/Westland and Central Otago Lakes

A 27% rise in the number of sales over $1 million between March 2016 and March 2015 – from 1,023 to 1,301

20,180 dwellings sold by auction in the 12 months to March 2016, representing 22.0% of all sales, an increase of 38% in

the number sold by auction in the 12 months to March 2015

Excluding the impact of the Auckland region, the national median price rose $35,000 to $385,000 compared to March

link:

https://reinz.co.nz/residential-property-data-gallery

Young Aucklanders expecting to pay $700,000+ for first home

( Comment: If this item is correct the situation is even worse. If FHB struggle to find $700K they will have to rent. That presumes that investors can afford to buy houses at that level and rent them out profitably. If an investor borrows 80% = $560K @ say 4.25% = $23,800 p.a. or $457 per week plus rates, insurance. repairs, vacancies etc, so most likely it will end up at $700 per week all up.Then a profit on top will take the rent to a level that is way above median rents for the Auckland region. The only “profit” investors can possibly make is through capital gain which is useless unless the property is on sold with all the problems that brings ( tax, depreciation not recoverable etc). Furthermore capital gain is not guaranteed and is very likely to shrink dramatically in the not too distant future. We seem to be heading towards the perfect storm without a rudder or sails. Residential investors would do well to think again about alternative investment).
“Nearly half of young Aucklanders who hope to buy their first home expect to pay more than $700,000 – meaning they have to save at least $140,000 for a deposit.

Only 14 per cent of aspiring house-hunters believe they will be on the property ladder within two years and the same percentage don’t expect to own their own home until at least 2031.

The city’s biggest real-estate firm, Barfoot & Thompson, surveyed 500 Aucklanders aged 18 to 34 who were yet to own property about whether home ownership was achievable”.

link:

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11608770

How to Invest in Commercial Property

Registration for April 2016 Commercial Property Masters Program Now Open.

This course has been especially designed for those who wish to learn and invest in commercial property (e.g. shops, offices, factories etc) where the yields are far in excess of residential property and the chances of capital gain are the same or better.

Many commercial properties can be purchased for same price as a residential property so are well within the reach of the average investor.

We believe commercial property is in the early stages of a long-term growth cycle. Increased demand from residential investors seeking higher yields, immigrants starting businesses, and local businesses expanding have started to fuel an upward trend in the commercial market.

The commercial property cycle runs at a different speed and frequency to the residential cycle and is now past its recovery phase and into the early stages of a boom.

Now is the time to invest in commercial property before it becomes the next boom market. This process won’t happen overnight, but will play out over the coming years. Those starting now will enjoy the more profitable deals, while those late to the party will find it more difficult to achieve similar results.

The Commercial Property Masters Program is for investors who are new to commercial property investing and want to equip themselves for success in this field.

SYLLABUS
A 12-month program designed to give you an individualised strategy and knowledge to kickstart your commercial property investing journey and help you achieve your financial goals.

Stage 1: Setup (Analysis, Plan & Education)
• Obtain relevant information to develop and assess your overall financial position • Assess your risk profile • Explore and confirm your short-term and long-term goals • Obtain relevant information on your current properties • Assess current loan structures • Analyse and critique your existing portfolio and financial position • Prepare and discuss with you an investment strategy and action plan to achieve your goals • Assist with ownership structures if required • Books, resources and training seminars to help you understand the nuances of commercial property ownership and leasing strategies.

Stage 2: Implementation
Consulting services to help you implement your investment plan. Includes…
•  Property finding advice •  Desktop due diligence on potential acquisitions • 7-day access to the Newland Burling team • Quarterly evening functions.

TESTIMONIALS
“We would have made terrible mistakes without them, seriously. They do know what they’re talking about.”
- Ivan Morris

“There are property mentorship programmes that you pay a lot more for so we were comfortable with the price. A lot of people would think it was a huge amount of money whereas for us the property we bought for $1.5 million is now worth about $2.1 to $2.2 million in a year. We made a lot of money from it. And we wouldn’t have bought that property had we not done the program. What we paid pales in comparison to what we made.”
- Elizabeth Moore

PROGRAM DATES
2016 program commencing 11 April. Places available are strictly limited so early booking is essential.

REGISTER YOUR INTEREST NOW
To find out more about the April 2016 program, go to our website and complete the “contact” form on this site.