During the last year Christchurch’s residential property rents increased the most at over eight percent bringing the average rent for a three bedroom home to $450 a week. Wellington’s rents went up by six percent with an average weekly rent for a three bedroom house being $440 per week.
Auckland our most expensive city, had a year to January increase of 6.8 percent, with an average weekly rent of $480. With more rental properties under management increases are gradual and realistic. Auckland property management company Pedersens Property Management ensure their clients are receiving market rent and the properties are in an optimum condition for tenants.
Whatever your standpoint is on the news of the residential property weekly rent increases, they are realistic compared to other increases experienced during the same time period. Ann Gibson’s news item in the NZHerald quotes Barfoot and Thompson Director Kiri Barfoot saying:
tenants are not paying over the top in terms of weekly rentals in Auckland and landlords are not recovering in full the current purchase of properties
Also in the same news item Barfoot & Thompson’s agency data shows a 26 percent increase in Auckland residential property rents over five years – and that compares favourably compared to the price of petrol, beer and a visit to the GP. Petrol went up 32 percent while a glass of beer and visit to the Doctor went up 22 percent.
Finally for the record we believe Investors are not responsible for inflating property values, in fact quite the opposite. Property investors aim to pay as little as they can for a property and by doing so yields of between 4 and 6 percent can be achieved with realistic rental income.
This blog article was written for PropertyBlogs by Mobilize Mail.