LEARN HOW TO INVEST IN COMMERCIAL PROPERTY

COMMERCIAL PROPERTY RETURNS UP TO DOUBLE COMPARED TO RESIDENTIAL

14 & 16-18 St Johns Rd Meadowbank (See photo below)
Features: 493m² 2-level character building on a 444m2 site, in 2 equal titles, 3 retail tenants on ground floor, office space & flats above
Rent: $140,000/year net + gst
Outcome: sold for $2.7 million at a 6.4% yield

Kingsland
332 New North Rd:
Features: 326m2 development site zoned mixed use
Outcome: sold for $910,000 at $2791/m2

Mt Albert
43A Linwood Avenue, units 1A and 1B:
Features: 2 units totalling 764m2 – vacant 412m2 ground-floor warehouse unit, 351m2 under-rented first floor with final lease expiry in September, 8 parking spaces
Rent: $44,200/year gross + gst
Outcome: sold for $1.34 million

Mt Eden
15 Mont Le Grand Rd:
Features: 2 houses converted for commercial use on 688m2 site zoned residential 5, 2-year lease in place to a charitable trust
Outcome: sold for $1.43 million at a 3.5% yield, reflecting underlying land value

390 Mt Eden Rd:
Features: Large 2-storey house, to be converted  back from offices to residential use, on 1122m2 corner site
Outcome: sold for $2.51 million

3-7 & 9 Tawari St (pictured at top):
Features: 2 warehouse & office buildings of 1100m2 & 323m2 on 1489m2 site zoned mixed use, 4-year lease over both premises from April 2015 to Saito Labels Ltd which has been there for 18 years
Rent: $248,000/year net + gst
Outcome: sold for $4.05 million at a 6.1% yield

Bob DeyCOMMERCIAL PROPERTY RETURNS UP TO DOUBLE COMPARED TO RESIDENTIAL -LEARN HOW TO INVEST FROM US

14 & 16-18 St Johns Rd Meadowbank (See photo below)
Features: 493m² 2-level character building on a 444m2 site, in 2 equal titles, 3 retail tenants on ground floor, office space & flats above
Rent: $140,000/year net + gst
Outcome: sold for $2.7 million at a 6.4% yield

Kingsland
332 New North Rd:
Features: 326m2 development site zoned mixed use
Outcome: sold for $910,000 at $2791/m2

Mt Albert
43A Linwood Avenue, units 1A and 1B:
Features: 2 units totalling 764m2 – vacant 412m2 ground-floor warehouse unit, 351m2 under-rented first floor with final lease expiry in September, 8 parking spaces
Rent: $44,200/year gross + gst
Outcome: sold for $1.34 million

Mt Eden
15 Mont Le Grand Rd:
Features: 2 houses converted for commercial use on 688m2 site zoned residential 5, 2-year lease in place to a charitable trust
Outcome: sold for $1.43 million at a 3.5% yield, reflecting underlying land value

390 Mt Eden Rd:
Features: Large 2-storey house, to be converted  back from offices to residential use, on 1122m2 corner site
Outcome: sold for $2.51 million

3-7 & 9 Tawari St (pictured at top):
Features: 2 warehouse & office buildings of 1100m2 & 323m2 on 1489m2 site zoned mixed use, 4-year lease over both premises from April 2015 to Saito Labels Ltd which has been there for 18 years
Rent: $248,000/year net + gst
Outcome: sold for $4.05 million at a 6.1% yield

Bob Dey

RESIDENTIAL RENTALS RISING STEADILY

Auckland tenants paying $3500 more than others nationwide

Rent hikes in Auckland have bucked the national trend, reaching a median weekly high of $490, Trade Me data shows.

Numbers released by Trade Me Property today show rents in Auckland have increased by 6.5 per cent in the year to May 2015.

Rental increases are slowing in most of the country with the national median rent hovering at $420 since January.

Trade Me Property’s Nigel Jeffries said Auckland tenants were now paying at least $3500 more than tenants nationwide.

“It’s an all too familiar scenario for those renting in the Super City – we’ve seen the average price of houses explode and the rental market continues to follow a similar trajectory,” he said.

May had been the “weakest” month for median rent prices in New Zealand but that did not mean it was cheap, he said.

Link

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11470392

THE FEEDING FRENZY CONTINUES (PART 2)


Ex-state house owner made $1000 a day
The owner of an ex-state house in Mt Albert has made nearly $1000 a day on a three-bedroom house purchased 15 months ago for $758,000 and sold last night for $1,102,000.

Ray White real estate agent Tony Tang said the 1940 house at 28 Rawalpindi St attracted more than six bidders. It was bought by a couple who plan to renovate it, he said.

The $344,000 profit represents a daily return of about $1000 in Auckland’s red hot property market.

House prices rose 20 per cent in the year to June to a median price of $749,000.

The weatherboard house was in tired condition with three double-sized bedrooms and a spacious lounge. It sits on a generous 581sqm site.

Link:

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11468067

NEW RULES COMING FOR RENTALS

Rental properties will have to meet a set of minimum standards under rules to be unveiled by the Government next month.
The move will stop short of a full “warrant of fitness” for rentals but is aimed at ensuring all tenants have a safe and healthy home to live in, Government sources confirmed

(Herald 1929)

 

 

 

That is likely to include a requirement for insulation, although sources said there was still work to be done to set any standards at a practical level. It is due to be announced next month by Building and Housing Minister Nick Smith, along with an assessment of a warrant of fitness trial in state houses, and would apply to all rentals both private and public.

The signal comes in the wake of a coroner’s finding last week that the death of Emma-Lita Bourne from a brain haemorrhage could partly be blamed on the poor condition of the state house she lived in. The family had been provided with a heater but could not afford to put it on.

However, a full warrant of fitness has been rejected by the Government as too difficult to police and requiring regular “rechecks” that would hike compliance

link:

http://www.stuff.co.nz/national/politics/69212752/rental-properties-face-minimum-standards-rules

It’s Happening In Other Countries Too.

US HOUSE MARKET SIZZLING

 


New home sales surged in April, pending sales of existing properties are up, and so are home prices.

In other words, the real estate market is “really hot” right now, according to the CEO of online real estate search and brokerage firm Redfin.

“It’s a very strong seller’s market. We’ve got homes selling in 45 minutes in places like Omaha and Atlanta,” Glenn Kelman said in an interview with earlier this week.

The whole country “has been on fire in the past few months. It’s just a really hot market, probably unsustainably hot.”

A slew of positive economic data was released this week, suggesting the housing market recovery was gaining traction.

Watch video:

http://www.cnbc.com/id/102715101

FIRST HOME BUYERS OUT IN THE COLD

First Home Buyer Affordability Report
25 May 2015

Housing has only become unaffordable for first home buyer households in Auckland in the last 21 months – AMP360 First Home Buyer Affordability Report.

New Zealand has a property market of two halves – Auckland and everywhere else, according to the latest AMP360 First Home Buyer Affordability Report.

Housing remains affordable for first home buyer households everywhere but Auckland, where it is severely unaffordable, the report has found.

The report found that first home buying affordability improved slightly in April compared to March, driven mainly by declines in lower quartile selling prices in many regions.

However the improvement was so small that home buyers were unlikely to have noticed the difference.

Link:

http://www.scoop.co.nz/stories/BU1505/S00732/amp360-first-home-buyer-affordability-report.htm

LATEST COMMERCIAL SALES

AUCKLAND


27-31 Park Rd, Grafton
A 379m2 property with two retail tenants was sold for $2,580,000 ($8000/m2). The property,which has a seismic rating of 71%, is just a few hundred metres from Auckland Hospital and Auckland Domain. The two ground floor retail tenancies generate a net annual income of $45,506. The property includes a two bedroom, fully refurbished, top floor apartment, two undercover car parks, a large yard and off street access offering two garages and car parks.

5C, 331 Rosedale Rd Avondale
A 221m2 office space in Rosedale Office Park, Albany, North Shore, has been sold for $815,000. The unit was bought by a private owner.

9 Corinthian Drive, Albany
A five-level, 5579m2 commercial and retail property has been fully subscribed in a syndication that raised $15.6 million equity on behalf of Oyster Group.
36 Fort St, CBD  
A vacant building on a freehold 282m2 sold for $3 million.

26-28 Inlet Rd, Takanini
A 6428m2 block of land in two separate titles was sold for $1.6 million to an owner-occupier.

Cnr Tristram and Clarence Sts  Hamilton
A large format, 602m2 retail property sold for $1.2 million at a yield of 6.77%.

 

Source NBR

RENTS JUMP $25 PER WEEK

Rents jump rises as tenants pay $25 per week more than a year ago.


Median weekly rents continued to grow steadily in the 12 months to April, rising 6.3 per cent to a record-equaling $420 per week, says Trade Me Property’s figures based on current landlord charges.
Head of Trade Me Property Nigel Jeffries said that equated to tenants paying $25 more per week in April 2015 than they were a year ago.

“In basic terms, across New Zealand tenants are digging into their bank accounts to pay about $1300 more per annum to rent a property.

“Across the country, the rental market has consistently delivered median rental growth north of 7 per cent year-on-year in 2015, accelerating on growth of about 5 per cent over the same period last year.”

Mr Jeffries said it was too early to assess the impact of the raft of property and tax changes announced by the Government over recent weeks.

The Rental Price Index measures trends in the expectations of median weekly rents for residential properties on Trade Me Property that have been rented out by real estate property managers and private landlords over the past month.
Around 11,000 rental properties are let out via Trade Me Property each month.
Over the past 5 years, the median weekly rent across New Zealand has risen by 23.5 per cent from $340 per week in April 2010 to $420 per week last month. Mr Jeffries said the majority of this $120 per week increase had occurred since the middle of 2013.

Four regions reported double-digit rental growth in the year to April 2015. Leading the way was Gisborne (+20 per cent), followed by Marlborough (+12.3 per cent), Bay of Plenty (+10.9 per cent) and Southland (+10.0 per cent).

Source: NZ Herald  NZ Herald (Wayne Thompson)

“Capital Gains Tax” as from 1st October

This is a very good move from what we have learnt today. It will hopefully catch the speculators who are ramping up the market while hiding in the shadows.  It will mean that anyone who buys and sells a property inside two years will have to pass the “tax test” to see if tax is payable or not.

Overseas speculators too, who may hide behind dirty money, will have to give their details as well, and then pay their share of tax.

Locally, the spruiker outfits that promise unlimited profits from real estate will feel the pain, as their clients come to realise that from now on they too will be under the spotlight, warts and all.

Property investment is a hard slog, but with the right advice and over the time it can be very profitable.

The new rules will likely have to be legislated and tweaked but from 1st October, it will be game on.

The Reserve Bank may as well shelve their LVR rules, which only favour the rich, as this new  move will be far more effective in stabilising the market and blowing the froth of the top.

Genuine investors, who seek security, passive income, and long term growth will surely welcome this move positively.

 

“The Government’s 2015 Budget will contain several measures to ensure property developers, including overseas buyers, “pay their fair share of tax”, the Prime Minister announced today.

Speaking at the National Party’s lower North Island’s regional conference in Lower Hutt today, John Key said everyone – whether from New Zealand or overseas – should pay their fair share of tax according to the law.

“People calling for a new capital gains tax often overlook the fact that under existing rules, anyone buying property with the intention of selling for a gain is liable for tax on that gain,” he said.

Mr Key said this week’s 2015 Budget announcement will contain several measures to bolster tax rules on property transactions and to help Inland Revenue enforce them.

Such measures will include providing Inland Revenue with extra funding for compliance and enforcement, requiring non-residents and New Zealanders buying and selling any property other than their main home to provide an IRD number, requiring non-residents to have a New Zealand bank account, and introducing a new “bright line” test to tax gains from residential property sold within two years of purchase.

The bright line test will not apply to a seller’s main home or an inherited and transferred property.

link:

http://tvnz.co.nz/national-news/budget-force-overseas-property-investors-pay-their-tax-6314275

 

and

 

http://www.3news.co.nz/nznews/new-tax-rules-will-discourage-foreign-investors–experts-2015051718#axzz3aLjxPyDz