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.

AUCKLAND RENTS TO RISE

Rent rises are coming for tenants in Auckland as the market catches up with skyrocketing house prices.

The industry says January is the best time for landlords to review their rent and consider increasing it.

And it’s come as a shock to those who are already struggling to find a home.

A place for rent at an affordable price is a sight getting harder to find in Auckland.

And as landlords use the New Year to reassess rent there’s a warning to tenants – the price is rising.

“I believe there is room for movement and I think we’re going to see that in the next few months,” says Auckland Property Investors’ Association (APIA) president Andrew Bruce.

APIA says raising the rent is just good business sense.

“Landlording is a business, it isn’t a set and forget investment,” says Mr Bruce.

Read more: http://www.3news.co.nz/…/auckland-rents-likely-to-increase-…

WHAT DOES 2016 HOLD FOR PROPERTY?

Auckland house prices to stagnate in 2016 but rest of NZ will take off, pundits say

2016 may be the year soaring house prices become no longer just an Auckland problem.

New Zealanders who live outside Auckland are being warned: 2016 could be the year your property prices boom.

 

Rent Day 1856

 

 

 
Auckland’s house prices have been the standout performer over the past few years.

Real Estate Institute figures show Auckland’s median house price was up 19 per cent over the year.

Excluding Auckland, the national median rose just 4 per cent.

But commentators say Auckland house prices will significantly soften over 2016, as the rest of the country ramps up.

Bank of New Zealand chief economist Tony Alexander said outside Auckland, the rest of New Zealand could be in for house price rises of 15 per cent to 20 per cent over 2016 due to low interest rates, population growth and the effect of Aucklanders moving out of the city.

That would probably be enough to worry the Reserve Bank, he said.

Property investor and commentator Olly Newland said Auckland’s prices had already started to level off. But he said in other parts of the country, prices would start to climb steadily over 2016.

“Prices are so much cheaper, there is good buying.”

He said commercial property would also have a strong year.

“Returns are still two or three times that of residential and people are waking up to the fact that a block of shops or a small factory will produce twice or four times as much as a house.”

(Source “stuff”)

COMMERCIAL PROPERTY MASTER PROGRAM 2016

 Pre-registration for Commercial Property Masters Programme 2016

                 


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 comprehensive hands-on program run over a 12-month period, designed to give you an individualised strategy and knowledge to 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 2-day training seminar 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 DATE
8 February 2016. We have only 2 places left so it will most likely be your last chance to secure a place for this intake.

REGISTER YOUR INTEREST NOW
To enquire about pre-registration for the 2016 program, or to find out more, go to the “contact us ” page on this site.

 

 

WE ARE OPEN THROUGH THE HOLIDAYS

WE ARE OPEN RIGHT THROUGH THE HOLIDAYS

The market never sleeps and neither do we at Newland Burling & Co.

If you want advice, have financial or real estate questions or want to move head in the new year, then we are available to assist right through December and January.

To make an appointment call Olly Newland 0274 928 460, or Jack Revill 021 02217333 any time or use the contact page on our website.

Seasons Greetings to all our clients and may the new year be a profitable one.

 

Auckland CBD Retail Rents Skyrocket

Auckland CBD retail rents have jumped 12.4 per cent in the third quarter of 2015.


Auckland houses are not the only property prices rising, with retail rents in the city’s CBD reaching unprecedented heights.

A new wave of luxury brands including Top Shop are being blamed for a rise of 12.4 per cent in the third quarter of this year.

The research, released by commercial real estate company CBRE, revealed the jump to $3400 per square metre a year for Queen St was the highest rise since 2008.

Auckland’s CBD will be inundated with building projects in the next few years, with motorists warned to avoid driving in the central city.

Work on the City Rail Link, a new convention centre and numerous apartment towers and offices are already underway or scheduled to begin next year.

The CBRE report follows the release of Colliers’ 2015 New Zealand Retail Report, which highlighted massive demand for retail in Auckland.

link:

http://www.stuff.co.nz/business/74336544/auckland-cbd-retail-rents-skyrocket

SALES RESULTS

9 November 2015
A large apartment in the old Devonport power station was sold at auction last week, and Bayleys agents concluded 2 commercial sales in Takapuna and one in Waiuku, plus leases in Rosedale & Takapuna.

 

Devonport:
Features: 330m², one of 3 apartments in the Devonport power station, 5 bedrooms over 3 levels, private terrace garden, separate self-contained accommodation
Outcome: sold at auction for $1.59 million
Agents: Prue de Bie & Diana Poor

8 Eldon St Takapuna
Features: 883m² site, 150m² commercial building, 5 parking spaces
Rent: $51,354/year + gst
Outcome: sold pre-auction for $2.2 million at 2.33% yield 132 Hurstmere Rd:

Features: 1503m² site, 1483.63m² building – retail 170.5m², office 1313.13m², deck 112m², 28 parking spaces
Rent: $459,771.85/year net
Outcome: sold in October for $7.5 million at a 6.13% yield, $4990/m²

6 Court St: Waiuku
Features: 1243m² site, 559m² floor area, 2 buildings on a single title, roadfront exposure
Rent: $48,000/year gross + gst, fully tenanted with 4 tenants
Outcome: sold at auction for $815,000

38 Constellation Drive: Rosedale
Features: 1155m² of retail space
Rent: $235,000/year net + gst

239N Rosedale Rd:
Features: 67m² retail, 2 parking spaces
Rent: $17,000/year net + gst, premises rental $254/m²

13 Barrys Point Rd, unit 1: Takapuna
Features: 136m² floor area, 3 parking spaces,
Rent: $38,000/year net + gst

Attribution: Company release.