Auckland apartment investor and mentor Grant Hoey says 2015 was hugely popular for property trading in Auckland apartments. Property trading is the term more frequently used to describe the process of buying, doing up and selling property for a profit.
Where will you be investing in Auckland in 2016? Auckland apartments may feature strongly with investors this year. To say apartments are now in hot demand is an understatement given the growth in the market in recent months.
In the last 12 months Apartments have seen their values grow by 33 percent. Apartments were probably undervalued up until 18 months ago.
Reports that Landlords are attempting to increase profits from overcrowded rental properties has been refuted by Andrew King, Chief Executive of NZ Property Investors Federation in a news item on NZHerald today.
Yesterday a news item suggested maybe overcrowding was an initiative by greedy landlords to maximise profits with student accommodation in Auckland.
Record levels of home loans were approved in December 2015. For two weeks in a row more than $1.5 Billion of new lending was approved. In the seven days till 11 December 2015 $1.56 Billion was approved making it the highest value of home loans approved in a week since records began.
However a week later $1.59 Billion was approved making it the new record.
Property investment in 2016 may bring unprecedented property value growth in the regions as Auckland investors move to buy up rental properties in surrounding areas such as Waikato, Bay of Plenty and Northland. The introduction of legislative changes in October targeting Auckland has resulted in a cooling of price growth for the time being however Auckland’s property woes continue with demand continuing to outstrip supply.
Talk of longer commercial-like tenancies for residential properties is creating a lot a discussion among property investors. Do Landlords want longer tenancies? Shorter tenancies offer Landlords the opportunity to adjust the level of rent to the market rate or higher on properties that have fallen behind and there is more control with more property inspections and renovations can be carried out between tenancies.
The time is right to fix loans to get the best interest rates on offer says an expert in the latest article on NZHerald. On PropertyTalk property investors say irrespective of market changes they use both fixed and floating loans across their portfolio to spread the risk.
A changing residential rental property environment in New Zealand means that the time is ripe for landlords and tenants to consider longer term residential leases that are similar to commercial lease arrangements with rights to assign, sublet, and renew.
In 2015 many baby boomers have migrated to the city. They have sold the family suburban home and downsized to an apartment.
Auckland property values reached a peak of 20 percent growth in June 2015 and baby boomers have been quick to cash up.
In the Tortoise and the Hare race – the tortoise is ridiculed by the hare for being slow. Wellington over the years has experienced much the same derision mainly from the locals of Auckland including our Prime Minister who infamously once said Wellington was dying. Well just like in the tortoise and hare race Wellington is rebounding.
The primary reason for selling a home by private sale is to avoid paying out thousands in sales commission to a third party like a real estate agent. Private selling has taken hold in some areas namely Nelson and Tasman. The private sale strategy doesn’t always work out for the vendor however. The property might remain on the market for months, not sell at all or sell for a lot less than the vendor believes it’s worth. This is what happened recently to an Auckland property owner.
Over the years Dame Rosanne Meo has lobbied for a law change so all Property Managers are regulated. The Real Estate Agency Authority (REAA) is arguably doing a great job with the Real Estate Agency Act and while property managers within a Licensed Agency are regulated under this Act there are hundreds of property management managers that are not.