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Wellington housing shortage

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  • #2
    I can see rents rising, and landlords being able to pick and choose tenants from a larger pool. Applicants with a bad tenant or credit record won't be top of the list.

    Wellington CC mayor Justin Lester said publicly at last year's election that he would introduce a mandatory rental warrant of fitness for Wellington. I hope the council does a proper cost benefit analysis, including the impact on rents and supply of rentals. I predict - rents up, rental supply down. People say that a rental sold is a house for sale, forgetting that landlords also build new. And also that the number of people housed in a rental will usually exceed the number in owner occupied place.

    New retirement villages are an efficient way of building new, freeing up old. They are up against local nimbys as well as the usual council hoops to jump through - eg Summerset Boulcott development in Lower Hutt. - 300 new units. Not sure that Stuff article indicates Mr Eagle is going to fast track consents. (Boulcott is Lower Hutt CC though, not Wellington CC.)

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    • #3
      You raise a good point on Lower Hutt CC ... That point being the small mindedness of Kiwis (read Wellingtonians) I always find it interesting the need to delineate Wellington council zone vs. Lower/Upper Hutt, PCC and even KCDC - it is almost like people in WCC see themselves as superior and this attitude is holding the entire region back.

      if you overlay the geographical boundaries of major world cities - Melbourne/Sydney/London/New York etc while each of these cities have local bodies (councils) they act as one city.

      Anyone ne other than wellingtonians would read these articles as housing shortage in Wellington Region - pea brained WCC residents see this as an issue for anyone within 10kms of the CBD

      Fix the attitude and you'll fix the issue

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      • #4
        Post-code envy isn't limited to Wellington. Christchurch is funny for that - flat as a pancake and people still worry about things like suburbs.

        Are any of the trains expresses? A higher-speed express service running up to say Levin would be great. You'd only need a few of them but if it gets 500 more people working in the city but not living there it would benefit everyone.
        Free online Property Investment Course from iFindProperty, a residential investment property agency.

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        • #5
          Originally posted by artemis View Post
          I can see rents rising, and landlords being able to pick and choose tenants from a larger pool. Applicants with a bad tenant or credit record won't be top of the list.

          Wellington CC mayor Justin Lester said publicly at last year's election that he would introduce a mandatory rental warrant of fitness for Wellington. I hope the council does a proper cost benefit analysis, including the impact on rents and supply of rentals. I predict - rents up, rental supply down. People say that a rental sold is a house for sale, forgetting that landlords also build new. And also that the number of people housed in a rental will usually exceed the number in owner occupied place.

          New retirement villages are an efficient way of building new, freeing up old. They are up against local nimbys as well as the usual council hoops to jump through - eg Summerset Boulcott development in Lower Hutt. - 300 new units. Not sure that Stuff article indicates Mr Eagle is going to fast track consents. (Boulcott is Lower Hutt CC though, not Wellington CC.)
          Hopefully they do the rental WOF in Wellington. Then it can fail miserably and not repeated anywhere else
          Squadly dinky do!

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          • #6
            Originally posted by Don't believe the Hype View Post
            I always find it interesting the need to delineate Wellington council zone vs. Lower/Upper Hutt, PCC and even KCDC - it is almost like people in WCC see themselves as superior and this attitude is holding the entire region back.

            Anyone ne other than wellingtonians would read these articles as housing shortage in Wellington Region - pea brained WCC residents see this as an issue for anyone within 10kms of the CBD
            That's not very nice. You want me to catch a train to work now?!?

            In seriousness though these articles are solely about the WCC region. This is not like 'Auckland' where Rodney Hide merged 9 councils into one. It's about those of us who choose not to live in those common areas past the motorways.

            There seems to be a huge appetite for new development from buyers here, even prior to the earthquakes - look at how anything the Wellington Company releases seems to sell out in a hurry. There are a bunch of apartment and townhouse projects in the city and in the Hutt which aren't hanging round for long.

            Oh and another minor factor as to why developers prefer higher end builds - those 'affordable housing' developments that central and local government love? Banks don't - the purchaser is unable to sell for two years so they're less liquid and more risky for the banks and they're asking for 20% down. Given they're targeted at low income borrowers without much in savings, there's not a huge market. If government is going to persist with these as a solution, they're going to need to step in and back them with lenders insurance.
            Your Home Loan - Wellington Mortgage Broker
            [email protected]

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            • #7
              Wellington is still going strong. Saw a Home and Income in Brooklyn go for 836k today @ 6% yield off a GV of 500k. Titahi Bay only had updated GVs 6 months ago and already we're at 20% above on some recent sales I've seen. Karori we're also at 50% above GV on pretty standard 3 bedroom houses.
              Your Home Loan - Wellington Mortgage Broker
              [email protected]

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              • #8
                I have just got our most recent rental valuation and studio rent jumped from $280 to $410/w in less than a year! pretty sweet

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                • #9
                  Originally posted by Wellington Broker View Post
                  Wellington is still going strong. Saw a Home and Income in Brooklyn go for 836k today @ 6% yield off a GV of 500k. Titahi Bay only had updated GVs 6 months ago and already we're at 20% above on some recent sales I've seen. Karori we're also at 50% above GV on pretty standard 3 bedroom houses.
                  WB - are you looking in Titahi Bay? I thought you weren't a fan only 6 months ago.

                  47 Tireti Road, Titahi Bay in great condition but completely original 1950's sold recently for $670k off RV of $465k with RV's being set in Sept 16 as you said

                  22 Piko st, Titahi Bay sold for $530k in Feb off RV of $390k

                  The prices have moved and the rents are heading the same way. Titahi Bay interestingly has a good number of available rentals vs. other locations in Porirua but rent prices all over are rising. While some might say that is bad in a lot of cases it is actually resulting in the owners improving the properties. which becomes a cycle of gentrification, better prices resultin in better quality housing attracting a different type of tenant and on it goes.

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                  • #10
                    I have clients who are first home buyers looking here so have been doing some research on the area.

                    This one on Tireti Road has a very dated kitchen and bathroom and went for north of 420k on a 345k GV
                    List your property with Australasia’s leading real estate brand, with nearly 12,000 property professionals and 1,000 franchises across 11 countries.
                    Your Home Loan - Wellington Mortgage Broker
                    [email protected]

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                    • #11
                      When I bought the place I am currently doing up my PM estimated $900-950 for a 5br/2ba, $270 for a studio conversion (small) and $580 for a less-than-great (low ceilings) 4br unit downstairs. That's now $1,050 - $1,100, $330 and $700 6 months later... one letting season and an extra $17K per year. It won't come along every year but it's nice when it does.
                      Free online Property Investment Course from iFindProperty, a residential investment property agency.

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                      • #12
                        Originally posted by Wellington Broker View Post
                        I have clients who are first home buyers looking here so have been doing some research on the area.

                        This one on Tireti Road has a very dated kitchen and bathroom and went for north of 420k on a 345k GV
                        https://nz.raywhite.com/porirua-city...2043/?type=HOL
                        I'm not sure that one has sold yet, but if it has it will be closer to $500k.

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                        • #13
                          Originally posted by Nick G View Post
                          When I bought the place I am currently doing up my PM estimated $900-950 for a 5br/2ba, $270 for a studio conversion (small) and $580 for a less-than-great (low ceilings) 4br unit downstairs. That's now $1,050 - $1,100, $330 and $700 6 months later... one letting season and an extra $17K per year. It won't come along every year but it's nice when it does.
                          well done Nick - it's good when things go your way!! The work you did to convert this place, starting with vision is now paying off.

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                          • #14
                            Nice work Nick!

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                            • #15
                              Originally posted by Don't believe the Hype View Post
                              I'm not sure that one has sold yet, but if it has it will be closer to $500k.
                              Where do you get 500k from?
                              Your Home Loan - Wellington Mortgage Broker
                              [email protected]

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