Is a good time to buy a apartment?

[Korg]

We have bought our two bedroom unit for about a year, decided to move on...re finance this two bedromm unit and get another smaller property.

We have carefully considered about all kinds of properties, house, townhouse is definitely out of our budget terrace house, well, we don't wanna take the risk to buy a terrace house due to leaking problem, after we talked to our mortgage broker, we still can loan early 200K....two options at the moment, one is get a one bedroomapartment (I prefer with carpark, roughly late 100K) or a one bedroom unit.

Please give me some advise

[Gerrard]

Hi Korg - there has been a lot of nagatives in the media over the last couple of years about Auckland apartments: Shoeboxes, garunteed rents, falling prices, over supply, leaky buildings etc. Luckily this doesn't apply to all apartments!

The Wellington market, for example, has been pretty solid an without the problems above (although there is the "shaky building" issue to deal with). And some Auckland apartments have been great investments.

Have a read of Kieran Trass's report on the Auckland apartment market. I can't find the link now, but have a look at www.hybridgroup.co.nz. It's been around a while now but still seems to be very relvant.

Most people on this forum would agree that it is always a good time to buy property so long as you understand the risks and have a set criteria that is acceptable to you.

Good luck!
Gerrard

[tricky]

It's always a good time to buy a good apartment.
Sorry if that doesn't help much.

One that I've noticed recently is a 9th floor, north facing Metropolis valued around $240k and earning around $400 pw.
You may find better deals than this - you can certainly find worse.
Only bit of advice I'd suggest is stay away from the Conrad Development buildings.
And read Kieran's report.

[Josko]

Hi Korg,

Judging from recent posts the general consensus has not changed on apartments, need to stay alert, shouldn’t go to far wrong if you get one with a car park, though you want to make sure it is a decent size and decent design. Should be able to negotiate and buy bellow valuation in this environment, there are bargains out there however be careful.

I am making offers on apartments at the moment slightly higher price range, so feel free to PM me if you have any questions on a building or deal you have in mind.

The other option is to purchase house and land out of Auckland, have you though about doing that instead?

Keep an eye on those terraces some have received new code of compliance and are a bargain at present, if you are buying long term they provide a good yield and will eventually with time shed the leaky stigma IMO.

Cheers,

[whitt]

It all depends what you mean by Apartment. CBD Auckland or elsewhere? There is 2 completely different markets there.

[Korg]

Thanks guys, great help

Tricky mentioned north facing Metropolish 9th apartment selling about 240K, that sounds really great deal, rent of Metropolish apartment still stays high at the moment.

But terrace house, most of those I heard of are leaking properties, like the one off Willcott st, Mt Albert, Mt Eden around Grafton one, New Lynn roundabout that big block of terrace....really scare of this kind of property.

Crosslease units are good choose, but located in Epsom, Mt Eden are rocket high.

Josko, any suggest on apartment at the moment? ^_^

[Korg]

Hi Korg,

Judging from recent posts the general consensus has not changed on apartments, need to stay alert, shouldn’t go to far wrong if you get one with a car park, though you want to make sure it is a decent size and decent design. Should be able to negotiate and buy bellow valuation in this environment, there are bargains out there however be careful.

I am making offers on apartments at the moment slightly higher price range, so feel free to PM me if you have any questions on a building or deal you have in mind.

The other option is to purchase house and land out of Auckland, have you though about doing that instead?

Keep an eye on those terraces some have received new code of compliance and are a bargain at present, if you are buying long term they provide a good yield and will eventually with time shed the leaky stigma IMO.

Cheers,

Thanks Josko, Terrace with new code of compliance is very good choice for us, we wanna buy a property for self live in, I have rented a terrace for about a year, quite comfy to live in and with internal garage, really secure and safe.

How can I know which terrace is the one with new building code of compliance? many thanks

[Josko]

Korg,

I probably am not a good one to ask as I have picked on favourite buildings I mentioned before like One Hobson, Metropolis, Metropolis unfortunately does not usually come with parking and the Body Corp fees are on the high side. The Silo Building is a quality building as well, though you need to keep an eye on the size, with car park I think it is wort while, it is a converted building some finance companies have some restriction over this but nothing a mortgage broker can not overcome.

I have taken a liking to One Hobson for its position and the views. Recently at an auction the bidding stoped at 355k for a 1 bedroom and car park they wanted closer to 400k. If I can get anything there around 350k I would be happy, that is what they originally sold for four years ago. I just think there will be good capital growth in years to come because of the fact that they are not building any more apartments, next year only 150 have been approved to be built for Auckland City

Whitt is right the suburbs are worth while for apartments, Onehunga, Birkenhead, different market to the city. Be careful around Albany and Dannemora apartments some leaky problems around there, aside from that 50m2 with car park canto go too wrong with that.

Cheers,

[Josko]

Thanks Josko, Terrace with new code of compliance is very good choice for us, we wanna buy a property for self live in, I have rented a terrace for about a year, quite comfy to live in and with internal garage, really secure and safe.

How can I know which terrace is the one with new building code of compliance? many thanks

You will find it is not being advertised you will need to ask for the information from the Agent, if leaky they have a duty to tell you, if you have any doubts write in the S&P a clause for going through all the Body Corporate Minutes and LIM. I recently found an apartment in Three Kings which was a great renter, had seven couples lined up to rent it, but the Minutes revealed that the building company had liquidated and the building structure had in they used the same system as in the other leaky buildings, there was nothing wrong with the building itself at the moment as an Inspection report revealed, but I did not want to take on the risk. Interestingly One Hobson has not got Code of Compliance either but that is a Steel Structured Building and I am will to take a risk on that one.

So first ask the Agent, ensure your solicitor gets to view all Body Corporate Minutes and Building Code of Compliance and LIM.

[captaincrab]

I can get you a 1 bed (36sqm)with carpark on Level 10 of The Quadrent , 10 Waterloo Quadrent for $267,000. Pm if youre interested.

[Positive]

How about "Kiwi On Queen" on upper queen street like
trademe 87279261?
Good deal?

[Josko]

Hard to gauge no rent figures are provided, but assuming students paid $100 per bedroom I would not think the yield is that attractive based on the price. The main issue is that with the Quadrant you have 36m2 for 1 bedroom ad at the Kiwi you have 37m2 for 3 bedrooms, there is a price difference but with the car park and the area the Quadrant is in would have better capital gain opportunity then the Kiwi, different markets as well, but I would not think it is a good deal.

[Positive]

Thanks Josko, but anyone knows about the building of Kiwi On Queen like who develops it and good / bad reputation, leaking problem etc?

just that I seen quite a while quite some cheap deals there and wonder if there is a problem with the building etc.

[captaincrab]

We financed the development of both Quadrent and Kiwi on Queen. Big difference in quality.Quadrent "B" quality, KOQ "C". Also many KOQ are leased to Housing corp which is causing high tenant turnover.The Quadrent is mainly run as a 4 star hotel (250 rooms)and has the extras associated with that. Doesnt effect the body corp though.

[captaincrab]

sorry, I guess my point is the Quadrent is a nicer place to live.Opposite Albert Park etc and not Krd. Renting may be a different story if you are talking yields but I thought this was about a place to live