Who needs a salary when you have an Auckland home

The latest figures from Statistics NZ shows that the most recent increases in housing prices eclipses minimum wage and the average salary. No surprises, but Auckland is the only region that housing growth was on a bigger incline that salaries. The median average salary in Auckland last year was $46,800 (up 2 per cent from the year before) while the average Auckland home made double this if based on a seven day week – $227.39 per day in capital gain compared with $128.11 in wages – This equates to a rise of $83,000 since March last year.

When comparing how rapidly these prices are rising we can compare it to the rate in which some New Zealand occupations salaries increase. A first year nurse makes just $47,000 rising to $64,000 after 5 years or en entry level Police constable earns a basic salary of $52,000 rising to $57,000 after 5 years – all of these less than the percentage rate in which the Auckland housing market continues to increase.

Referring to the Weekend Herald’s research (www.herald.co.nz) all of the countries 12 regions were looked at as well as the salaries in these regions but none had seen a rise like Auckland has. Other regions of interest were Taranaki and Bay of Plenty, who’s average house price had risen by more than $30,000 since March 2014. Auckland’s neighbor to the south didn’t fare as well with a $20,000 decrease to an average of $325,000 ($55 a day).

What is interesting is the percentage of increase within both the real estate sector and annual salaries, not just Auckland but as an average throughout Auckland. The national house price jumped 8 percent which equated to $35,000 whereas the national wage sits at $44,720 which only saw an increase of 3.1 percent. According to Careers NZ, last years house price growth is on par with the annual salary of a cleaner or assistant store manager and higher than a retail assistant or kitchen hand.

The future is looking rather bleak for first time home owners looking to invest in Auckland property. It has given existing buyers some new found wealth but some are worried than it has also locked an entire generation out of home ownership. Real Estate Institute CEO Colleen Milne assured people recently that this will change when housing development ramped up.. although it would probably be in the outer suburbs, so people should keep saving but be prepared to move outwards or commute.

What question we have at property.co.nz is that in 5 years time, what will be considered Auckland? This magnificent cities urban sprawl just keeps getting wider as it sees a record number of immigration and a shortage of properties. When real estate insiders talk about outer suburbs how far are they thinking? These are questions that first time home owners should be asking themselves.

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New Albany Apartment Plans Unveiled

With Property.co.nz being based in Auckland’s North Shore we have to report on the big apartment development announced this week by Martin Cooper of Harcourts. Being marketed as New Zealands biggest residential apartment development, the Albany Rose Garden Apartments are a $300 million, 800 unit project expected to create a community around all that Albany presently and in the future has to offer.

Albany is currently located on the fringes of Auckland supercity but as our population is getting larger, people are drifting further from the city. The Albany Park and Ride is two minutes walk from the apartments so for commuters it would be a 20 minute travel time to downtown Auckland. NZ’s largest shopping mall is located across the road from the Rose Garden site, as well as a cinema, North Harbour stadium, several supermarkets and a variety of restaurants. More shops are planned as well as an Olympic swimming pool due in 2016.

The idea behind the Rose Garden apartments is that Albany is an area with already fantastic infrastructure that we need to fill with people to create a vibrant community. The team at Property.co.nz would have to agree.!! Over the years we have seen Albany grow from a small destination shopping area with Farmers, The Warehouse, etc to a destination that deserves its own population. It provides Aucklanders with a smaller convenience area while still being able to act as a gateway to Auckland city and up north for weekends away.

Prices for one bedroom apartments will start from $399,000 and initial images have been released showing a series of towers. You can view them at the following link http://nzrosegarden.co.nz/

Chinese developers plan to build the huge scheme, with shops and offices, on bare land at 25 Don Mckinnon Dr.

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Real Estate Auckland Residential in 2015

What will the Auckand housing market do this year? Residential real estate in the greater Auckland area is in a flux due to many factors. The past 12 months have seen the market get very competitive due to a greater demand than supply, a flourishing economy and low interest rates.

Our economy will indeed continue to grow throughout this year but will the real estate industry continue on its current winning streak? Prices respond to how active the market is and there has never been more demand. With more immigrants migrating and more Kiwis returning home from countries such as Australia – Aucklands population is growing rapidly.

Is now a good time to buy? Like anytime, it should always be up to personal preference whether now is the time to jump on the Auckland property ladder but it might be a good time taking into consideration the low interest rates. The current interest rates are at an all time low and inevitably they will go up again – just make sure you make allocations in your budget for this. You could even add as much as possible to your weekly repayments to take advantage.

Public transport is improving in Auckland tenfold and if you can afford it buying property close to this new city rail loop or other proposed infrastructure could be a great investment. Buying along the inner city/city fringe lines that are already in place or the outer suburb lines that are close to being finished could be valuable landlord opportunity with the increasing amount of immigrants and jobs.

Options such as city fringe apartments or residential properties in growing locations such as Ellerslie, Onehunga and Te Atatu seem to be good suggestions on good places to invest in.

Did anyone see that article in the NZ Herald earlier this week about young professionals finding it easier to buy land and build housing now – that is becoming a more attractive option! This is going to help the real estate industry as housing literally can’t be built fast enough, these young families are effectively killing two birds with one stone. Saving New Zealand property developers’ time and money and creating an even bigger market – thanks young Kiwi’s.

Whether you are buying, renting or selling, 2015 is going to be an exciting year for real estate Auckland. Property.co.nz is invested in helping anyone looking to get involved with commercial or residential rentals and as long as an unexpected economical disaster doesn’t occur this year should build on the solid growth we saw last year.

 

 

 

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