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3f/2 Eden Cres. Argent Hall. A re-clad 41 square metre, one bedroom unit with a car park and harbour views. Sold under the hammer for $380,000. Rates $1072 and body corporate levy $6095. Vacant with rent assessed at $480-$500 a week (furnished).
1D/1905 Anzac Ave. A 61sq m, one bedroom apartment that was owner-occupied. Came with a storage locker. There were multiple bidders but it was passed in for sale by negotiation with a highest bid of $280,000.
8a/2 Eden Cres. Argent Hall. A 43sq m one bedroom apartment. Vacant. Sold under the hammer for $312,000. Rates $926, body corporate levy $4441.
503/96 Symonds St. A 36sq m, two bedroom unit leased to the building managers and returning $365 a week. Passed in at $205,000. Rates $943 and body corporate levy $3700. .
10a Hobson St. An 85sq m office space with four car parks. Vacant. Passed in for sale by negotiation.
224/430 Queen St. The Volt building. A 43sq m, 2 bedroom furnished unit with 3sq m balcony. Rented at $410 a week. Sold for $242,000. Rates $975. Body corporate levy $3945 (for the year ending September 2014).
2c/113 Vincent St. A 34sq m, partially furnished two bedroom unit, rented at $340 a week. Passed in for sale by negotiation.
1221/135 Hobson St. A 34sq m, one bedroom apartment with a car park. Vacant. Passed in or sale by negotiation.
Smelly, rundown shack nets $1m
LAURA WALTERS November 19 2014
36 Bradford Street Parnell
The latest wreck the hit the Auckland property market has sold for $1 million dollars.
A barely-liveable wreck in one of Auckland’s hot suburbs has been snatched up for a $1 million.
There’s no question this weatherboard home with, chipped paint, peeling wallpaper and a borderline rotting deck is a fixer-upper.
While $1m seems like a fortune for the rundown city-fringe home, it went to a sole bidder for $70,000 under its new CV.
The bidder obviously saw potential in the home that others missed, with their offer being lodged this afternoon, before the auction was due to place.
The property was recently valued at $1.07 million, a 46.5 per cent increase from its 2011 CV of $730,000.
Like many other Auckland properties the home saw a huge jump in value after Auckland Council’s recent rates revaluations.
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This is what happens when you let academics loose in the market. One distortion inevitably leads to another and another and another. You don’t cure a problem by forcing distortions on the market. Academics read books and devoutly follow theories. They have no clue on what reality is and how it works. Controls enrich the already rich, and punish those not so well off. Brilliant.
How Reserve Bank can take on big landlords
Friday Nov 14, 2014
Governor eyes ways to curb multi-property buys
Landlords with more than five properties might be the Reserve Bank’s next target after Governor Graeme Wheeler warned of “further measures” to discourage multiple investors.
Wheeler this week revealed how the bank was considering discouraging multi-property investors who benefit from the loan-to-value regime at the expense of first-home buyers.
The rules introduced in October last year restrict lending at loan-to-value ratios (LVRs) of more than 80 per cent to 10 per cent of new lending. And while first-home buyers struggle to save a 20 per cent deposit, equity-rich landlords are swooping on the cheaper properties, creating a new set of issues.
Bank eyes curbs on speculators
Thursday Nov 13, 2014
The Governor hints at measure to tackle property investors as he sticks to guns on LVR restrictions
The Reserve Bank is eyeing measures to discourage speculators from buying multiple houses as it acknowledges its loan-to-value ratio (LVR) restrictions have favoured investors over first-home buyers.
Appearing before MPs at Parliament yesterday, RBNZ governor Graeme Wheeler acknowledged “the issue is also around people who invest and buy multiple houses”.
“We have been thinking quite deeply about whether we need to introduce measures to discourage some of those practices”, he said.
LVR restrictions to remain: RBNZ
Wednesday Nov 12, 2014
The Reserve Bank has just announced loan to value ratios will continue, in an attempt to quell rapid house price inflation.
Graeme Wheeler, bank governor, released the Financial Stability Report and said housing remained a threat to New Zealand’s economy.
“The financial system faces the same key risks that the financial system faced at the time of the May Financial Stability Report, although the balance of these risks has shifted in the past six months.
“The first of these relates to housing market imbalances. Pressures have eased since the introduction of the loan-to-value ratio (LVR) ‘speed limit’ in October 2013 and subsequent increases in interest rates,” Wheeler said.
“We have always indicated that the LVR restrictions are a temporary measure. The reduction in house price inflation and housing credit growth are welcome developments, along with indications of increased residential building. However, there remains a risk of a resurgence in house price inflation, particularly in light of strong immigration flows.
THE INEVITABLE MUST HAPPEN
Landlords are asking an extra $24 a week on average for many properties than they were a year ago, including an eye-watering $85 hike in Christchurch, according to Trade Me listings.
New figures from Trade Me’s property division show the median weekly rent has risen more than 6 per cent in a year to $399, up from $375 in October 2013.
That compares to a modest overall rise in the cost of living of 1 per cent in the year to September, most of which was driven by pricier rents and housing.
The Trade Me figures are higher than rental data collected by the Ministry of Business Innovation and Employment, particularly for Christchurch.
Trade Me’s weekly average rents for the June quarter, for example, were $54 higher for Auckland, $28 higher for Wellington, and $110 higher for Christchurch than the comparable MBIE figures.
MBIE follows tenancy bonds lodged by renters, which catches more rentals in the sub-$400 per week category, while Trade Me has more listings over $600.
MBIE’s website says the difference is accentuated in Christchurch due to the earthquake which has reduced supply and increased demand for rental housing.
Westpac are to be congratulated for introducing 30 years interest only mortgages. These will suit investors seeking cash flow, steady returns and lower costs. This type of mortgage may not suit home owners who want to create nest egg for retirement but at least a buyer/investor/home owner has choices instead of constantly ducking and diving, fixing, floating and re financing and every time more costs.
Westpac’s new 30-year, interest-only mortgage has been decried as irresponsible and likely to fuel property investor speculation.
Details of the new loan product were discreetly fed to mortgage broker channels in recent weeks. The offering is a major shake-up to the market, with the term three to six times as long as the maximum allowed by rival banks.
Wellington mortgage broker Simon Rule said the three-decade loan had surprised brokers and rival lenders, and was “disappointing” to see.
“You’re basically encouraging borrowers not to make any principal repayments on their mortgage whatsoever,” he said.
Once the term is up, borrowers can either repay the loan in full or switch to a standard mortgage, implying a total length of 50 years.
“You can get 50-year mortgages in America which mean you pretty much have a mortgage for life, which is not responsible at all,” said Rule. “I certainly would not be recommending customers do any more than 10 years interest-only.”
Westpac’s chief product officer Shane Howell said owner-occupiers were eligible, but not the target market.
“It’s really specifically geared towards investors . . . to give them the best opportunity to take advantage of the tax benefits,” he said.
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