Developers Sneak In 3 More Stories
In the article “Residents ready to revolt as 4 storeys become 7 “An Auckland developer has indicated he has council support for a seven-storey apartment building in a four-storey zone. If this proves to be true it could set a precedent for greater intensification across the city.
The article suggests Greer Stephens has indicative support from council officers on his application for a seven-storey apartment building at Great North Rd in Grey Lynn based on the condition that the development was of a higher quality design.
Originally the proposal was presented as a five-storey development with 20 apartments. The latest iteration is a seven-storey development with 30 apartments and this has caused an uproar amongst local residents as that exceeds the height restrictions by about 8m and is double the allowable floor size.
Interest Rates Increase
Meanwhile Kiwibank has raised its home loan and deposit interest rates.
This is no surprise as less than a week ago the Reserve Bank of New Zealand lifted the official cash rate to 3.25 per cent, the third such rise since March.
Kiwibank’s variable and revolving home loan interest rates will increase from 6.15 per cent to 6.40 per cent
The Reserve Bank signalled in March it may hike the OCR by 200 basis points over two years and the monetary policy statement released last Thursday did nothing to moderate that view.
What I’ve Been Saying For Years
In a stroke of good sense some first home owners are renting in Auckland but buying investment properties on the city’s outskirts or beyond which are more in their price range according to the article Going long distance for first home .
Andrew King from NZ Property Investors Federation said buying a cheaper rental was a growing trend. It made financial sense as people weighed up their current rent compared to what they would be paying on a mortgage for a property.
“It’s a good strategy for people to have the lifestyle they want and still get into the property market. The yields around Ponsonby and Mt Eden and places like that are really quite low and it does make sense to rent there and buy a property to rent out, which can sometimes have double the rental yield as the inner-city ones.”
Central Auckland properties offered an average 3 per cent yield and, according to the latest Quotable Value figures, were priced between $600,000 and $1.5 million. Auckland suburbs such as Glenfield, Ranui, Henderson, Glen Eden, Otahuhu, Papatoetoe, Manukau, Manurewa and Papakura were more affordable if people chose to manage the properties themselves, otherwise Hamilton, Rotorua and Whangarei were also options for people looking around the $300,000 to $400,000 mark.
In Hamilton you can buy a 94 sqm brand new Townhouse for $369,000 (current valuation) which is renting for $410 per week or $21,320 per annum.
Contact me using the form if you would like to know more about the Hamilton Townhouse.
