1110 HN Stats Page.indd
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PROPERTY REPORT GOOD PROPERTIES RENT WELL . . . This month, John has asked me to provide an update of our rental market. For the month of August, demand for rental properties in our region was very strong. This is a little unusual as typically being the last month of winter August tends to be one of the quieter rental months. Over the last six months from March 2011 to August 2011 we have seen the highest rental volume for two bedroom properties in Epuni/Avalon, Hutt Central/Waterloo, Taita/Naenae and the Western Hills. For three bedroom properties, highest volumes were in Wainioumata, Epuni/Avalon, Western Hills, Stokes Valley, and Hutt Central/Waterloo. Whether a one, two, three or four bedroom property, one major principle still applies to minimize vacancies: good properties that are proactively maintained will be attractive to tenants and tend to rent faster. Whether moving out of your own home and looking to rent it out or whether you are buying another investment property to add to your portfolio, it is important to remember that good tenants want to live in good quality accommodation. A good tenant with a good job doesn't want to come home to a tired property with pot holes in the driveway or wish to cook in a 1950s kitchen that is well overdue for an upgrade. Outside of tidy kitchens and bathrooms there is a preference for neutral decor tones. Tenants also prefer properties with good heating. We have seen tenants move from homes without reasonable heating into homes with heat pumps. Perhaps anecdotally, heating preference could explain some of the movement in August as it was one of the coldest months on record.
Lower Hutt Sales Statistics
Investors are still buying and adding to their portfolios. An example from August is a 25 year old couple on one income who have purchased their 5th investment property. Following the rules of looking at investment as a long term plan, the couple raised finance by having confidence that the property would rent fairly well given its condition and attractiveness to tenants. The couple purchased the investment property in Stokes Valley for $177k. The property they purchased has all the hallmarks of a good investment property. It is a well-presented home in a sunny, slightly elevated spot in Stokes Valley close to all amenities. With two bedrooms and open plan living, it has the attractiveness that tenants are looking for being neutral in decor with a good kitchen, modern bathroom and decent heating. Being on one income, it was important for the couple that the property rented quickly following settlement day. Photos and advertising were prepared in advance and the property advertised as soon as the keys were picked up. A great tenant (professional, early sixties) was secured four days later and moved in a week after settlement. The couple achieved market rent of $280 per week. The property is proving to be cash neutral. The rent is paying for the mortgage including principal, rates and insurance. These smart investors have another asset that they will own in 20 years' time when they are in their mid-forties. There are great rental properties like this one on the market for smart investors to keep an eye out for and to continue to add to their property portfolios. Good properties are renting very well.
Tenants are prepared to pay more rent to live in good quality accommodation and it makes sense as an investor to attract the best tenants at the best market rental price.
Vesna Wells Chief Executive, Oxygen [email protected]
June – August 2011 MEDIAN SALE PRICE ($)
SUBURBS Alicetown Avalon Belmont Boulcott Central Hutt Eastbourne & Bays Fairfield Harbourview Kelson Korokoro Manor Park Maungaraki Moera Naenae Normandale Park Ave Petone Stokes Valley Taita Tirohanga Wainuiomata Waiwhetu Waterloo Woburn
150,500 320,000 510,000 383,250 520,000 795,000 405,000 427,500 320,000 348,000 525,000 371,000 305,000 235,000 410,000 334,500 438,000 255,000 232,250 392,000 223,000 330,000 346,250 668,000
MEDIAN SALE PRICE % CHANGE 1 YEAR 3 YEARS
-66 -21 33 11 28 -9 -7 -14 -4 6 -8 8 1 17 -11 15
NUMBER OF SALES
-64 21 38 9 23 -6 -11 9 -4 15 -17 4 -4 16 0 5 -11 65
5 7 5 15 15 5 9 6 9 21 5 6 21 35 12 53 16 10 8
VS LAST YEAR
MEDIAN DAYS TO SELL
VS LAST YEAR
27 49 64 38 57 37 61 26 51 36 42 71 70 62 55 54 48 42 21
*For accuracy purposes, suburbs with less than five sales in the period have been excluded from this analysis.
visit www.redcoats.co.nz to view previous property reports
Lower Hutt Residential Property Sales 300 275
Hutt Valley Rental Statistics Rental Returns for August 2011 BEDROOMS
Northern Lower Hutt
MEDIAN RENT
RENT RANGE LOWEST - HIGHEST
% CHANGE FROM AUG 10
NO. LET
ONE TWO THREE FOUR
$ 150 $ 290 $ 340 $ 390
$141 - $195 $250 - $310 $300 - $360 $355 - $437
-14 5 1 -1
7 30 30 8
Southern Lower Hutt ONE TWO THREE FOUR
$ 220 $ 300 $ 387 $ 515
$195 - $230 $272 - $350 $340 - $440 $455 - $550
5 0 -8 11
18 48 36 12
Wainuiomata
ONE TWO THREE FOUR
n/a $ 230 $ 299 n/a
n/a $215 - $242 $290 - $300 n/a
n/a -1 4 n/a
0 9 18 0
ONE TWO THREE FOUR
$ 160 $ 230 $ 360 $442
$140 - $185 $200 - $260 $338 - $390 $415 - $450
7 5 3 2
10 46 45 10
Upper Hutt
Median - the middle value when all of the data is placed in order of value. Source - Sales Statistics: REINZ website and Professionals Hutt City Ltd MREINZ records. These statistics are for residential dwellings and do not include sections. Source - Rental Statistics: Tenancy Services Bond Centre. These statistics are derived from information gathered from bonds lodged at the Department of Building and Housing.
Number Of Sales
250 225 200 175 150 125 100 75 50
Jan
Feb Mar Apr May Jun 2007 2008 2009
July
Aug Sep Oct Nov Dec 2010 2011
Regional Round Up June – August 2011 MEDIAN SALE PRICE % CHANGE 1 YEAR 3 YEARS
VS LAST YEAR
MEDIAN DAYS TO SELL
VS LAST YEAR
SUBURBS
MEDIAN SALE PRICE ($)
Lower Hutt Upper Hutt Porirua Wellington
316,750 315,000 390,000 460,000
-9 -2 -3 -2
-3 1 13 6
280 199 169 637
50 40 46 37
503,000 325,000 350,000 245,000
3 -4 6 -1
10 -2 11 0
1937 584 996 492
32 44 31 42
NUMBER OF SALES
MAIN CITIES Auckland Hamilton Christchurch Dunedin
www.redcoats.co.nz
PROPERTY REPORT GOOD PROPERTIES RENT WELL . . . This month, John has asked me to provide an update of our rental market. For the month of August, demand for rental properties in our region was very strong. This is a little unusual as typically being the last month of winter August tends to be one of the quieter rental months. Over the last six months from March 2011 to August 2011 we have seen the highest rental volume for two bedroom properties in Epuni/Avalon, Hutt Central/Waterloo, Taita/Naenae and the Western Hills. For three bedroom properties, highest volumes were in Wainioumata, Epuni/Avalon, Western Hills, Stokes Valley, and Hutt Central/Waterloo. Whether a one, two, three or four bedroom property, one major principle still applies to minimize vacancies: good properties that are proactively maintained will be attractive to tenants and tend to rent faster. Whether moving out of your own home and looking to rent it out or whether you are buying another investment property to add to your portfolio, it is important to remember that good tenants want to live in good quality accommodation. A good tenant with a good job doesn't want to come home to a tired property with pot holes in the driveway or wish to cook in a 1950s kitchen that is well overdue for an upgrade. Outside of tidy kitchens and bathrooms there is a preference for neutral decor tones. Tenants also prefer properties with good heating. We have seen tenants move from homes without reasonable heating into homes with heat pumps. Perhaps anecdotally, heating preference could explain some of the movement in August as it was one of the coldest months on record.
Lower Hutt Sales Statistics
Investors are still buying and adding to their portfolios. An example from August is a 25 year old couple on one income who have purchased their 5th investment property. Following the rules of looking at investment as a long term plan, the couple raised finance by having confidence that the property would rent fairly well given its condition and attractiveness to tenants. The couple purchased the investment property in Stokes Valley for $177k. The property they purchased has all the hallmarks of a good investment property. It is a well-presented home in a sunny, slightly elevated spot in Stokes Valley close to all amenities. With two bedrooms and open plan living, it has the attractiveness that tenants are looking for being neutral in decor with a good kitchen, modern bathroom and decent heating. Being on one income, it was important for the couple that the property rented quickly following settlement day. Photos and advertising were prepared in advance and the property advertised as soon as the keys were picked up. A great tenant (professional, early sixties) was secured four days later and moved in a week after settlement. The couple achieved market rent of $280 per week. The property is proving to be cash neutral. The rent is paying for the mortgage including principal, rates and insurance. These smart investors have another asset that they will own in 20 years' time when they are in their mid-forties. There are great rental properties like this one on the market for smart investors to keep an eye out for and to continue to add to their property portfolios. Good properties are renting very well.
Tenants are prepared to pay more rent to live in good quality accommodation and it makes sense as an investor to attract the best tenants at the best market rental price.
Vesna Wells Chief Executive, Oxygen [email protected]
June – August 2011 MEDIAN SALE PRICE ($)
SUBURBS Alicetown Avalon Belmont Boulcott Central Hutt Eastbourne & Bays Fairfield Harbourview Kelson Korokoro Manor Park Maungaraki Moera Naenae Normandale Park Ave Petone Stokes Valley Taita Tirohanga Wainuiomata Waiwhetu Waterloo Woburn
150,500 320,000 510,000 383,250 520,000 795,000 405,000 427,500 320,000 348,000 525,000 371,000 305,000 235,000 410,000 334,500 438,000 255,000 232,250 392,000 223,000 330,000 346,250 668,000
MEDIAN SALE PRICE % CHANGE 1 YEAR 3 YEARS
-66 -21 33 11 28 -9 -7 -14 -4 6 -8 8 1 17 -11 15
NUMBER OF SALES
-64 21 38 9 23 -6 -11 9 -4 15 -17 4 -4 16 0 5 -11 65
5 7 5 15 15 5 9 6 9 21 5 6 21 35 12 53 16 10 8
VS LAST YEAR
MEDIAN DAYS TO SELL
VS LAST YEAR
27 49 64 38 57 37 61 26 51 36 42 71 70 62 55 54 48 42 21
*For accuracy purposes, suburbs with less than five sales in the period have been excluded from this analysis.
visit www.redcoats.co.nz to view previous property reports
Lower Hutt Residential Property Sales 300 275
Hutt Valley Rental Statistics Rental Returns for August 2011 BEDROOMS
Northern Lower Hutt
MEDIAN RENT
RENT RANGE LOWEST - HIGHEST
% CHANGE FROM AUG 10
NO. LET
ONE TWO THREE FOUR
$ 150 $ 290 $ 340 $ 390
$141 - $195 $250 - $310 $300 - $360 $355 - $437
-14 5 1 -1
7 30 30 8
Southern Lower Hutt ONE TWO THREE FOUR
$ 220 $ 300 $ 387 $ 515
$195 - $230 $272 - $350 $340 - $440 $455 - $550
5 0 -8 11
18 48 36 12
Wainuiomata
ONE TWO THREE FOUR
n/a $ 230 $ 299 n/a
n/a $215 - $242 $290 - $300 n/a
n/a -1 4 n/a
0 9 18 0
ONE TWO THREE FOUR
$ 160 $ 230 $ 360 $442
$140 - $185 $200 - $260 $338 - $390 $415 - $450
7 5 3 2
10 46 45 10
Upper Hutt
Median - the middle value when all of the data is placed in order of value. Source - Sales Statistics: REINZ website and Professionals Hutt City Ltd MREINZ records. These statistics are for residential dwellings and do not include sections. Source - Rental Statistics: Tenancy Services Bond Centre. These statistics are derived from information gathered from bonds lodged at the Department of Building and Housing.
Number Of Sales
250 225 200 175 150 125 100 75 50
Jan
Feb Mar Apr May Jun 2007 2008 2009
July
Aug Sep Oct Nov Dec 2010 2011
Regional Round Up June – August 2011 MEDIAN SALE PRICE % CHANGE 1 YEAR 3 YEARS
VS LAST YEAR
MEDIAN DAYS TO SELL
VS LAST YEAR
SUBURBS
MEDIAN SALE PRICE ($)
Lower Hutt Upper Hutt Porirua Wellington
316,750 315,000 390,000 460,000
-9 -2 -3 -2
-3 1 13 6
280 199 169 637
50 40 46 37
503,000 325,000 350,000 245,000
3 -4 6 -1
10 -2 11 0
1937 584 996 492
32 44 31 42
NUMBER OF SALES
MAIN CITIES Auckland Hamilton Christchurch Dunedin
www.redcoats.co.nz
