HOW TO GROW YOUR WEALTH THROUGH COMMERCIAL PROPERTY

 

 

 

AN INTRODUCTION IN TO COMMERCIAL PROPERTY

How to GROW YOUR WEALTH from this profitable sector of the investment market.
Tuesday 28th April Rendezvous Hotel Mayoral Drive Auckland 7pm.
Commercial property is completely different from residential property and can provide a large number of opportunities to increase wealth and security without relying on inflation or any particular market conditions.
Speakers:
Olly Newland   F.N.Z.IM. , Dip. Man., M.P.I.N.Z., Authorised Financial Adviser
Olly’s forty-something years of investment experience has given him a unique insight in to the New Zealand property market. He is now considered one of this country’s pre-eminent property investors and advisers.
Carl Burling  N.Z.C.E. , A.C.E.M.
With over 20 years successful property investing experience in both the residential and commercial sectors, Carl is familiar with the challenges and opportunities in commercial property investment. Carl is Olly’s business partner and co – owns several commercial properties as well as providing full property management and financial services for a wide variety of clients in both the commercial and residential markets..
Tony Milicich    Registered  Financial Adviser (RFA) Member of Professional Advisers Association (PAA)
Tony has over 40 years’ experience in the banking and finance having held senior positions within both. He now operates as an independent mortgage broker assisting his clients to secure finance for both their residential and commercial property investments.
John Berry ATAINZ, ANZIM, Dip Bus, Registered Financial Advisor, Member of Institute of Directors
John is a highly successful chartered accountant and business adviser with expertise in property accounting for commercial and residential investors.
Learn about…
• Residential property investment as compared to commercial property investment.
• The different classes of commercial properties and how to profit from them.
• How to rapidly double the value of a commercial property over a very short time.
• The importance of leases as they effect capitalisation rates, and values.
• Tax and GST matters and how it effects commercial property.
•       How to organise the best finance from banks and other sources for the funding of commercial property.
• How to double the value of a commercial property over a short time.
• Finance mortgages and banks.
• How to understand and improve the different types of tenancies and leases.
• The 5 big mistakes commercial investors make and how to avoid them

BOOK YOUR TICKETS NOW.  FOR MORE DETAILS  0800 522 622 or go to our website and click on the “contact ” tab and fill in your details.

VISIT OUR FACE BOOK PAGE FOR MORE INFO.

The Steady Rise Of Rents – And Not Before Time

Property: Rents in Auckland rise up to 10%

Renters are paying up to $60 more a week than they were a year ago for properties across some of Auckland’s 30 suburbs.

Prices for all suburbs have gone up for two and three-bedroom properties according to figures from Crockers.

Yvette Martin and her flatmates pay $640 a week. Photo / Nick Reed

The property management company looked at median prices over the six months to February 2015, compared with the same period last year.

In Devonport, rents for two- and three-bedroom houses have increased on average $60 per week, to $495 (up 13 per cent) and $678 (up 10 per cent) respectively. The next biggest increases were in Takapuna and Milford, up 10 per cent for two-bedroom houses to $531 per week.

There were also big rises in Meadowbank, Glendowie and Remuera South where two and three-bedroom rentals have increased 9 per cent, up to $450 and $653 per week respectively.

Read the rest here:

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11425034

Latest Commercial Sales – Barfoots

Barfoot & Thompson Auckland  - Latest Auction  Sales


68 Sale Street – Screentime NZ & Others
Date: November 2014    Price: $6,100,000    Analysis: $2,298/m2    Yield: 4.31% Two commercial buildings located on a 1381 m2 site with dual frontage to Sale Street and Cook Street zoned CBD (SMA3) Victoria Quarter Zone under the proposed Unitary Plan. 68 Sale Street is a 5 level fully leased building with offices and car parking constructed circa 1980s with a 71 % NBS (B Grade) seismic rating. 109 Cook Street is a 3 level partially leased office building constructed circa 1960s with a 90 % NBS (A Grade) seismic rating. At the time of sale the property was returning a combined total rental of $263,084 pa.

597 New North Road – First Scene
Date: November 2014    Price: $3,200,000    Analysis: $2,664/m2    Yield: 5.63%  A substantial two level building constructed circa 1970. Located on an elevated 1378 m2 site with dual frontage to New North Road and Western Springs Road. Due to the rising contour of the
site, cart docks and pedestrian access are provided to both levels of the 1,201 m2 building.
Includes good onsite carparking off both streets. At the time of sale the property was returning
$180,000 pa with the lease expiring at the end of January 2016.

46 G Stanley Street – Ricoh NZ Ltd
Date: November 2014    Price: $280,000    Analysis: $3,733/m2    Yield: 7.43%
A ground floor strata office unit within the Carlaw Commercial Centre, a courtyard office development on the corner of Stanley Street and Nichols Lane. Includes 2 carparks. At the time of sale the property was returning $20,800 pa with 6 months of the lease term remaining. The rate excluding car parks equates to approximately $3,000 /m2.

60 Airedale Street – Education & Others
Date: August 2014    Price: $6,000,000    Analysis: $3,006/m2    Yield: 5.54%
A 11 storey commercial building including nine office floors, two residential penthouse and one level of basement parking for 17 cars. The building is situated on a 441 m2 site 100 metres north of its intersection with Symonds Street. The building was built in 1989 and has a seismic rating
80 %. At the time of sale 4 floors were occupied with new 6 year leases with demolition options returning a total income of $332,600 pa.

660 Rosebank Road – Paint & Decor Ltd
Date: November 2014    Price: $1,175,000    Analysis: $2,295/m2    Yield: 4.68%
A single level 1990s roadfront industrial building providing 262 m2 of showroom and 250 m2 of warehouse space. Located on a site of 1,011 m2 the building is set back from the road with off- street parking to the front. At the time of sale the property was returning $55,000 pa with the lease having approximately 4 months to run.

166 H Lansford Crescent – Glenburn Panelbeaters
Date: December 2014    Price: $185,000    Analysis: $1,850/m2    Yield: 5.64%
A small size format 1980s industrial unit of 100 m2 contained within a development of 11. Situation is on a corner site at Lansford Crescents eastern most juncture with Wolverton Street. The unit provides a small area of offices and amenities to the frontage together with medium stud warehousing/workshop. At the time of sale the property was returning $10,434 pa with approximately 10 months of the lease term remaining.

269 Great South Road -
Date: November 2014    Price: $515,000    Analysis: $805/m2    Yield: 0.00%
A two level light industrial building of 640 m2 constructed in the 1960s and converted into several mixed tenancy spaces. Located on a large rear cross-lease site with an undivided half share in 3,368 m2 A mortgagee sale.

9 B Mahunga Drive – MIT & Other
Date: October 2014    Price: $3,000,000    Analysis: $828/m2    Yield: 8.59%
An industrial property comprising 3288 m2 of warehouse and 337 m2 of office space. Located on a rear site of 5853 m2 with good yard/carparking space. At the time of sale the property was returning $257,770 pa with approximately 2.9 years of the lease term to run.

2 E Bishop Browne Pl – Vacant
Date: October 2014    Price: $540,000    Analysis: $3,892/m2    Yield: 0.00%
A modern two level strata commercial unit of 138.75 m2. Comprises 2 separate self contained spaces with ground floor showroom/retail of 87.61 m2 and a first floor office suite of 50.96 m2. Located within a multi-unit development, Bishopsgate Business Centre, on the south-western corner of Te Irirangi Drive and Bishop Dunn Place. Sold with vacant possession.

35 Station Road – Ramset
Date: December 2014    Price: $1,425,000    Analysis: $2,586/m2    Yield: 6.22% A 551 m2 two level 1980sl commercial building on a 811m2 site. The property comprises showroom, offices and warehouse space together with carparking to the front yard.. It has been occupied by Ramset for 20 years, current rent is $88,576 expiring in July 2016.

124 Symonds Street – Vacant
Date: November 2014    Price: $1,275,000    Analysis: $2,742/m2    Yield: 0.00%
A 3 level 1970s office building of approximately 465 m2 with city and harbour views. Situated on a site of 155 m2 on the corner of Symonds Street and the off ramp of SH1 on the fringe of the CBD. Sold with vacant possession.

4 Winchester Street – Vacant
Date: December 2014    Price: $875,000    Analysis: $4,487/m2    Yield: 0.00%
A 1960s industrial property of approximately 195 m2 comprising warehouse space with polished, sealed concrete floors, white painted interior and good natural light. On a recently subdivided site of 302 m2 the property shares a common fire-rated wall on part of the western boundary with an industrial property at 20 Newton Road. Sold with vacant possession.

155 Queen Street& B/C -
Date: October 2014    Price: $1,530,000    Analysis: $2,137/m2    Yield: 0.00%
The property comprises the entire Level 15 held in three strata titles within the high rise commercial building of 155 Queen Street which is situated within the Central Auckland Business District. Includes 3 carparks.

1875 Great North Road – ex Bayleys
Date: December 2014    Price: $1,480,000    Analysis: $2,473/m2    Yield: 5.83% A 1950s commercial building of 598.5 m2 located on the corner of Great North Road and Rosebank Road within the Avondale retail district. Existing fitout as offices together with basement storage. Previously occupied by the National bank and more recently a real estate and property management office. The tenant no longer occupies the building however the lease runs until September 2015 returning $86,300 p

166 E Lansford Crescent & F – Glenburn Panelbeaters
Date: December 2014    Price: $370,000    Analysis: $1,850/m2    Yield: 5.64% Two adjoining small size format 1980s industrial unit of 100 m2 each contained within a development of 11. The units have had the common wall between removed and are utilised as one space. The long established tenant also leases 2 other units in the block. At the time of sale the property was returning a combined income of $20,868 pa with approximately 7 months of the lease term remaining.

166 D Lansford Crescent – Glenburn Panelbeaters
Date: December 2014    Price: $185,000    Analysis: $1,850/m2    Yield: 5.64% A small size format 1980s industrial unit of 100 m2 contained within a development of 11. The unit provides a small area of offices and amenities to the frontage together with medium stud warehousing/workshop. Situation is on a corner site at Lansford Crescents eastern most juncture with Wolverton Street. The long established tenant also leases 3 other units in the block At the time of sale the property was returning $10,434 pa with approximately 7months of the lease  term remaining.

101 Great South Road – Luxotica & Others
Date: December 2014    Price: $2,200,000    Analysis: $2,876/m2    Yield: 7.77%
A 2 level stand alone 1980s office building together with approximately 20 carparks. The site of 1027 m2 falls away from the road providing ground and basement level office space. At the time of sale the property was returning $171,000 pa with a weighted average lease term to run of approximately 6 months.

543 Rosebank Road
December 2014    Price: $1,100,000    Land Area: 1,588 m2  Analysis: $693/m2
A redevelopment site of 1,588 m2 zoned Light Industry under the Proposed Auckland Unitary Plan. Semi triangular in shape the site the site has a narrow frontage of 7.75 metres with a rear boundary of 40.13 metres. A 1980s industrial building of 316 m2 is located on the site with the existing tenant on a monthly lease returning $55,000 pa.

Latest Auckland Inner City Apartment Sales

7 sell under hammer at City Sales
Wednesday 18 March 2015

After a quiet start to the year in the auction room, City Sales sold 7 apartments under the hammer today out of 10 on offer. They included 2 units on long-term management contracts and ranged from a 2-bedroom apartment in the Metropolis down to a Heritage Farmers studio.

Barclay Suites, 74 Albert St, unit 2203:
Features:
45m², furnished one bedroom, deck
Outgoings: rates $3386/year including gst; body corp levy $4800/year paid by hotel
Income assessment: $25,830/year net + gst
Outcome: no bid

Metropolis, 1 Courthouse Lane, unit 2608:
Features:
90m², fully furnished 2 bedrooms, 2 bathrooms, parking space
Outgoings: rates $2364/year including gst; body corp levy $11,239/year
Outcome: sold for $780,000

Princeton, 30 Symonds St, unit 15A:
Features:
27m², 2 bedrooms
Outgoings: rates $836/year including gst; body corp levy to be confirmed
Income assessment: leased to Zeta Management Ltd until 29 October 2022
Outcome: sold for $115,000 + gst

Princeton, 30 Symonds St, unit 15B:
Features:
27m², 2 bedrooms
Outgoings: rates $836/year including gst; body corp levy to be confirmed
Income assessment: leased to Zeta Management Ltd until 29 October 2022
Outcome: sold for $115,000 + gst

Forte, 37 Symonds St, unit 301:
Features:
33m², fully furnished one bedroom, deck
Outgoings: rates $804/year including gst; body corp levy $2140/year
Income assessment: $335/week fixed until August
Outcome: passed in at $190,000

Madison House, 145 Symonds St, unit 408:
Features:
64m², fully furnished 2 bedrooms
Outgoings: rates $992/year including gst; body corp levy $4639/year
Income assessment: vacant
Outcome: sold for $350,000

Madison House, 145 Symonds St, unit 707:
Features:
54m², fully furnished one bedroom, deck, parking space
Outgoings: rates $1008/year including gst; body corp levy $5173/year
Income assessment: $485/week fixed until August
Outcome: sold for $350,000

Heritage Farmers, 35 Hobson St, unit 434:
Features:
31m², fully furnished studio
Outgoings: rates $782/year including gst; body corp levy $4564/year
Income assessment: vacant
Outcome: sold for $137,000

Heritage Farmers, 35 Hobson St, unit 435:
Features:
53m², fully furnished one bedroom, parking space on separate title
Outgoings: rates $1056/year including gst for the unit, $906 for the parking; body corp levy $6835/year
Income assessment: vacant
Outcome: sold for $268,000

Zest, 72 Nelson St, unit 216:
Features:
20m², fully furnished one bedroom, deck
Outgoings: rates $766/year including gst; body corp levy $1678/year
Income assessment: $280/week fixed until 9 May
Outcome: passed in at $140,000

Attribution: Auction.

Latest City Apartment Sales

5 sold, 5 passed in amid some frenzied biddin
13 March 2015
4 cbd apartments and one in Kingsland were sold under the hammer at Ray White City Apartments’ auction yesterday, leaving 2 waterfront leasehold units, a pair of Unilodge on Anzac studios offered in one package and a unit in the Quest Parnell unsold.

Freehold sale prices reached $8000/m² of internal space, though a unit in the Quay West suites hotel building slipped below $6000/m².

 

Quay West, 8 Albert St, unit 1402:
Features: 75m², one bedroom, large balcony
Outgoings: rates $4550/year including gst; body corp levy $6939/year
Outcome: sold for $446,000

Unilodge on Anzac, 138 Anzac Avenue, units 704 & 805:
Features: 2 studios in purpose-built student accommodation block, each 13m²
Outgoings: rates $588/year each, including gst; body corp levy $3399/year each
Income assessment: under management lease renewed for 10 years from April 2012
Outcome: passed in at $30,000 for both

Waldorf Bankside, 8 Bankside St, unit 14F:
Features: 30m², fully furnished studio, balcony
Outgoings: rates $830/year including gst; body corp levy $4211/year
Income assessment: $340/week, out of hotel pool in June
Outcome: sold for $235,000
The Quadrant, 10 Waterloo Quadrant, unit 1323:
Features: 36m², furnished one bedroom, balcony
Outgoings: rates $1083/year including gst; body corp levy $4137/year
Income assessment: in hotel pool
Outcome: sold for $256,000

Alpha, 17 Vogel Lane, unit 1407:
Features: 45m², renovated 2 bedrooms, top floor, deck, parking available in building
Outgoings: rates $1008/year including gst; body corp levy $4164/year
Income assessment: $480-500/week fully furnished
Outcome: sold for $365,000

Lighter Quay, 79 Halsey St, unit 108:
Features: leasehold, 76m², 2 bedrooms, 2 bathrooms, balcony
Outgoings: rates $2445/year including gst; body corp levy $13,324/year including ground rent of $6633/year (gst-exempt)
Income assessment: owner occupied
Outcome: passed in at $327,000

Latitude 37, 20 Pakenham St, unit 2P:
Features: leasehold, 52m², one bedroom, parking space
Outgoings: rates $1681/year including gst; body corp levy $3289/year, ground rent $5199 (gst-exempt)
Outcome: passed in at $250,000

Quest Parnell, 6 Heather St, unit 203:
Features: 30m² studio
Outgoings: rates $2525/year including gst; body corp levy $3482/year
Income assessment: $6900/year net; hotel lease expires 2023, further 10-year term available
Outcome: passed in at $101,000 + gst

Kingslander, 435 New North Rd, unit 5W:
Features: 45m², one bedroom, study, parking space
Outgoings: rates $1282/year including gst; body corp levy $4773/year
Income assessment: $450/week furnished
Outcome: sold for $392,000

bob dey

Onwards And Upwards

Big rise in number of homes sold in February but outside of Auckland prices are largely flat REINZ says
Greg Ninness

There was a substantial increase in the number of homes sold in February compared with February last year, the Real Estate Institute of NZ said.

REINZ said 6,898 homes were sold last month, up 12.6% on February last year.

Some of the strongest annual growth in sales numbers occurred in the Waitakere (+16.7%) and Rodney (+31.3%) districts of the Auckland region where sales volumes were up 10.1% overall.

Other regions to post strong annual growth in sales were Northland 17.1%, Waikato/Bay of Plenty 40.6%, Hawke’s Bay 11.3%, Manawatu/Wanganui 12.2%, Nelson/Marlborough 10.7% and Otago 21.8%.

But sales volumes were more subdued in Taranaki where they were down 14.6% compared with February last year

link:

http://www.interest.co.nz/property/74495/big-rise-number-homes-sold-february-outside-auckland-prices-are-largely-flat-reinz-sa

There Will Be Tears For Reckless Investors

There will be tears” – Olly Newland says property investors are making the same mistakes they did before the 2008 downturn.


Olly Newland believes many property investors are making the same mistakes they did during the last surge in property values prior to the 2008 downturn.

The only difference between the current Auckland property boom and previous ones, was that this one had lasted longer than the others, the veteran property investor and consultant told interest.co.nz in a

“But we all know that one day it will slow down,” he warned.

“I’m not going to predict crashes or anything like that, but one day it will slow down and then there will be tears.

“People who have bought houses without getting independent advice and without checking what sort of structure it should go into for tax and so forth, they will be in tears one day because they’ve done it wrongly.

See the whole video interview here:

http://www.interest.co.nz/property/74363/olly-newland-says-property-investors-are-making-same-mistakes-they-did-2008-downturn-

 

Also read:

Landlords hit back at Reserve Bank crackdown

(the Barbarians are at the gate-take action sooner rather than later)

Friday Mar 6, 2015

Landlords have threatened to punish tenants by hiking rents if a tougher lending regime is ushered in by the Reserve Bank.
Landlords have hit back at Reserve Bank consultation on their sector, threatening to punish tenants by hiking rents if a tougher lending regime is ushered in.

Andrew King, NZ Property Investors Federation executive officer, said a harsher regime could have severe implications for more than 1 million tenants in over 453,000 rental households.

“Unnecessary risk weighting rules around rental properties will likely increase the cost of borrowing and push rental prices higher.

“Rental property loans are actually less risky than many of the loans taken out against homes to fund businesses,” Mr King said.

Read the rest here:

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11412821


Pressure on Auckland property bubble
2 MARCH 2015


A Property Investment Adviser says it will need a major outside event to reduce the property bubble pushing Auckland house prices ever higher.
Listen to Olly Newland on Morning Report:

<http://www.radionz.co.nz/national/programmes/morningreport/audio/20169182/slow-down-in-housing-prices-could-be-coming>  ( 2 min 54 sec )

The latest monthly data from realestate.co.nz shows the average asking price in Auckland continued to break records <http://www.radionz.co.nz/news/national/267414/average-house-price-passes-%24500k>  for the second consecutive month.

The average in New Zealand’s biggest city reached a new high of $764,424 – a 1.9 percent increase on the $750,023 benchmark set in January.

A year ago, the average asking price in Auckland was at a high of $677,370, which indicated that asking prices across the city have grown by an average of 13 percent, or $87,000, over the last year.

Property analyst Olly Newland said while there was no limit for how high prices could go, in practice he did not think they could much higher.

But he said the pressure on the market was getting greater.

Link:

http://www.radionz.co.nz/news/regional/267475/pressure-on-property-bubble