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Under siege in inner city
Sunday Sep 14, 2014
Tensions boil over between tenants.
Residents at these Imperial Gardens Apartments complain of intimidating behaviour by Housing NZ occupants.
Owners of inner-city apartments believe their buildings are being used as “halfway homes” by Housing New Zealand – leaving them scared to use lifts, foyers and facilities.
An increasing number of long-term homeless, drug and alcohol users and people on home detention are now living in central Auckland after the government agency increased it’s apartment stock last year. The policy has not been well received by some private tenants.
Body corporate members say maintenance fees are now used to pay security guards and to repair damage. “Unfortunately, Housing NZ is putting people here who need support and should be somewhere else,” one owner told the Herald on Sunday.
“They need mental healthcare or drug rehabilitation support and cannot cope with shared living of apartment life. We are being used as a halfway home.”
Housing NZ owns or leases 267 apartments in central Auckland. In some buildings it has reached its limit of 15 per cent.
Read the rest here:
REINZ Media Release:
12 September 2014
5,481 dwellings sold in August 2014, down 7.0% on July and down 16.3% on August 2013 National median price of $420,000, up $4,000 (+1.0%) on July and up $30,000 (+7.7%) on August 2013 Days to sell eased by one day to 38 days compared to July, and eased four days compared to August 2013
REINZ, the most up to date source of real estate data in New Zealand, announced today that there were 5,481 dwelling sales in the month of August, down 16.3% on August 2013 and down 7.0% compared to July.
The national median price was $420,000 for the month of August, an increase of $30,000 compared to August 2013, and an increase of $4,000 from July.
Real Estate Institute of New Zealand (REINZ) Chief Executive Helen O’Sullivan says, “The real estate market appears to be ‘idling’ as buyers and perhaps even more so, sellers, await the outcome of the September 20 election.
Sales volumes are 7.0% down from July 2014, and are 16.3% down on 2013 levels. The upcoming election is not the only factor however, as this is the tenth consecutive month of sales volumes being below the prior year’s levels.”
Sold by Ray White City Apartments:
- 14b/8 Bankside St. The Waldorf building. A fully furnished, 30sq m studio with rent fixed at $1300 a month until February 2015. Sold for $211,000, providing a gross yield of 7.4%. Body corporate fees $3755 (after prompt payment discount). Rates $850. According to QV.co.nz the property was originally purchased for $205,500 in 2005.
- A1/43 Anzac Ave. The Cambridge building. An unusual property comprising a furnished 40sq m one bedroom apartment on the ground floor and two accessory units (one being a reception area for the building) which are rented by the Body Corporate on a casual basis. The body corporate levy for this property also covers the cost of electricity and water for the flat. The flat was rented at $300 a week and the two accessory units at $565 a month. Passed in with a highest bid of $84,000. Body corporate levy $14,400 (after prompt payment discount), rates $1624.
- 1105/1 Courthouse Lane. The Metropolis building. A vacant 44sq m, north facing, one bedroom apartment offered fully furnished and fitted out, right down to the egg cups in the kitchen and sheets on the bed. Sold for $320,000, compared to the advertised asking price of $343,000. Body corporate levy $3766 a year (before prompt payment discount) plus a special maintenance levy $5160. Rates $1104. According to QV.co.nz the property was originally purchased for $227,500 in 2002 and resold in 2006 for $239,000.
Sold by Bayleys:
- 25i/16 Gore St. Harbour City building. A vacant, fully furnished one bedroom apartment. Sold for $215,000. Body corporate levy $3437. Rates $1072.
- 1704/11 Liverpool St. City Zone building. A two bedroom corner unit with city and harbour views. Rented at $365 a week. Sold for $265,000, providing a gross yield of 7.2%. Body corporate levy $3716 (less 15% prompt payment discount). Rates $943.
Reserve Bank Governor, Wheeler.
I don’t see interest rising for years. Typical Reserve Bank “jaw boning”
Interest-rate rises are looming even though official rates were kept at 3.5 per cent today, the Reserve Bank says.
And the central bank is expecting the housing market to keep cooling down, despite strong net migration.
The dollar remained too high and was expected to come down significantly, the bank said.
In its latest Monetary Policy Statement this morning <http://www.rbnz.govt.nz/monetary_policy/monetary_policy_statement/2014/mpssep14.pdf> , the central bank said: “We expect some further policy tightening will be necessary to keep future average inflation near the target 2 per cent midpoint.”
The bank gave no specific timing for the next rate rise, but said the present pause would be for “some time” to see how the economy went.
Economists expect the next rate move about April next year.
3/38 Eaglehurst Rd:
Features: 528m² unit – 289m² warehouse, 174m² office, 65m² mezzanine
Outcome: sold vacant for $815,000
968 Great South Rd:
Features: 6748m² industrial complex on 1.234ha, fully occupied by Pacific Coilcoaters, which uses the facility to colour-coat long-run roofing iron, on 9-year lease from April 2011, with one 6-year right of renewal
Rent: $517,918/year net + gst
Outcome: sold by DNZ Property Fund Ltd for $6.8 million at a 7.6% yield
356 Church St:
Features: 3877m² business 5-zoned site, 2823m² industrial building – 1909m² warehouse, 913m² office, limited yard area
Outcome: sold vacant for $3.25 million
726 Great South Rd, unit 1:
Features: 413m² industrial unit – 171m² warehouse, 125m² showroom, 97m² office, 20m² mezzanine
Outcome: sold vacant for $800,000Onehunga
100-102 Princes St:
Features: 833m² warehouse on 1067m² site, 2 tenants, both on 2-year leases until late 2015
Rent: $66,160/year net + gst
Outcome: sold for $850,000 at a 7.8% yield
58 Princes St/Victoria St:
Features: 686m² warehouse on 674 m² site, tenant on 3-year term until August 2016
Rent: $65,000/year net + gst
Outcome: sold for $832,000 at a 7.8 % yield
102A Carbine Rd:
Features: 2700m² industrial building – 2200m² warehouse, 500m² office, leased for 6 years with 3 2-year rights of renewal
Rent: $185,000 first year; $220,000 second year; $220,000 plus CPI third year; CPI increases subsequent years
Attribution: Agency release.
Frantic Auckland buyers rushing in to snap up homes
By Lane Nichols
Monday Sep 8, 2014
Some Auckland house hunters under pressure to find the right property are making snap purchase decisions after viewing their new home for less than 30 minutes.
Frustrated buyers who have lost at previous auctions are among those “jumping” on properties after viewing them only once, experts say.
But buyers rushing the most expensive purchase decision of their lives are being warned not to forgo necessary due diligence checks.
Today’s NZ Herald-Quotable Value Property Report shows stark rises in house prices for some of the 420 North Island suburbs profiled.
Read the rest here:
Lower end remains strong despite LVR speed limits
By Jonno Ingerson
Monday Sep 8, 201
We are now nearly a year on from when the Reserve Bank signalled Loan to Value (LVR) limits and interest rate rises to cool down the property market. The changes we have witnessed since are not necessarily what has been widely reported.
One of these recurring stories is that sales of properties worth less than $400k have declined and that this is a sign that the LVR speed limits are shutting out first home buyers.
Read the rest here:
04 September 2014
The latest monthly QV Residential Price Movement Index shows that nationwide residential property values for August have increased 6.9% over the past year and 1.7% over the past three months. This means they are now 15.8% above the previous market peak of late 2007. When adjusted for inflation the nationwide annual increase drops slightly to 5.2% and values remain below the 2007 peak by 0.8%.
The Auckland market has increased 11.4% year on year and values are up 33.0% since 2007. When adjusted for inflation values are up 9.7% over the past year and are 13.8% above the 2007 peak.
Auckland housing market puts spring lift on hold
With the approach of the General Election, the Auckland housing market fell into a ‘wait and see’ mode in August, with the number of sales in the month falling by 7.5 percent to 909 and the average selling price falling by 1.1 percent to $711,768.
“With new listings for the month at 1129, a decline of 19.1 percent on those for July, August was a quiet month in terms of activity,” said Peter Thompson, Managing Director of Barfoot & Thompson.
“This was not unexpected as the market invariably goes quiet in the build up to General Elections.
“It means the normal lift in market activity we see with the approach of spring is still some weeks off.
“Certainty will return post the election, and the final three months of the year are likely to see greater activity than normal as the regular five-month spring/summer pre-Christmas season is compressed into three months of trading.
“New listings for the month were the lowest since December 2013, and the lowest in an August for four years.
“The same trend was there for sales numbers, with August’s sales being the lowest for four months, and the lowest in an August for three years.
“The average sales price was stable, and has moved around in a $17,000 band between $719,000 and $702,000 for five months.”
“During the month, the busiest sector of the market was for homes selling for under $500,000.
“A third (33.4 percent) of all the homes sold in August were for less than $500,000, an increase of 5.2 percent over the number sold in July.
“Sales in the million-dollar-plus price segment fell 11.8 percent in the month to 149, the lowest for four months.”
Too bad that David Parker forget to mention that a capital gains tax will also apply to farms businesses, shares and inheritances.
Note: if a CGT is to be applied to property sales @ 15% ( other than the family home) does that mean that investors who renovate, develop and on-sell properties for a profit will also be taxed at 15% rather than 33%? Now that would be a good deal.
View it here: