Oversupply of Rental properties in Hamilton?

[AndrewC]

I checked the rental properties for Hamilton in Trademe, there are 457 listings, excluding the 1 bedroom or overly priced properties, there are still a lot of them. A decent 3 bedroom property in Winstone Ave Chartwell listed on 30 Dec 2015 and available 30 Jan still available, though it is only asking for $340, this seems to me like oversupply of rental properties to me. Anyone can comment on this?

[Rosco]

For rent or to sell?

I know there are normally around 1000 properties to sell (residential in Hamilton), and a lot less at the moment.

On my blog last year, I looked at population growth and number of new houses. I think Hamilton and Tauranga and both building more than then need and long term there must be a correction!

Ross

[AndrewC]

I mean for rent

[HouseWorks]

Why the question Andrew? Is it that you are looking to invest in Hamilton if so different areas have their own demand depending if they're located near hospital or uni, central or Chartwell.
For us we are existing Hamilton investors for 20 years and unfortunately had several ham east houses to relet over the summer which we did successfully to quality tenants at slightly higher rents. We actually had no shortage of potential tenants and one 3 bed brick had massive demand with tenants vying to be first to view. We try and keep out places tidy as well as near to amenities.
Hope that helps a bit. I don't think there's too many rentals for Hamilton.

[HouseWorks]

There is around 40 to 50000 homes so that's approx one percent for rent.
Auckland has 4000 rental listings right now so 400 odd sounds right

[donthatetheplayer]

I think Hamilton and Tauranga and both building more than then need and long term there must be a correction!

Ross

In what sort of timeframe do you think supply will exceed demand Ross?

For Hamilton and Tauranga I can see a number of strong reasons for increasing population growth.

[Beginner1]

The area mentioned above is pretty rough. There is a shortage of quality 3,4 bedroom houses in good areas but plenty available in bad areas. Lot of locals in bad areas have cashed up and moving into newer suburbs.

See the article in stuff today.

http://www.stuff.co.nz/business/77453615/qv-auckland-home-values-drop-below-1m-other-centres-rise

"Hamilton

Home values across Hamilton City were rising fast - up 4.6 per cent over the past three months and 22 per cent on a year ago.The average value in the city now is $455,966.
Values in the Waikato District were also accelerating - rising a whopping 8.4 per cent over the past three months and 22.8 per cent for the year..

There was a shortage of rentals up for grabs, particularly with students returning for university and newcomers to the city starting new jobs, Hamilton valuer Stephen Hare said said. "

I have rentals in Hillcrest(uni/schools) and agree the above comment into a certain extent. Slightly concerned on the shear number of townhouses going around hamilton

I checked the rental properties for Hamilton in Trademe, there are 457 listings, excluding the 1 bedroom or overly priced properties, there are still a lot of them. A decent 3 bedroom property in Winstone Ave Chartwell listed on 30 Dec 2015 and available 30 Jan still available, though it is only asking for $340, this seems to me like oversupply of rental properties to me. Anyone can comment on this?

[Bluecoat]

What about abundance of land supply?
Would that restrict major capital gains

[Kirwee]

Hi Bluecoat,
You have mentioned that the abundance of land would have an impact on capital gains.
Are capital gains your main interest in real estate?
As I understand it if your goal is to simply go after capital gains you are speculating.
I would prefer to be an investor by buying cash flow positive property with a good yield and having the tenant pay my down mortgage
and other outgoings.
Capital gains are simply a by-product when the property increases in value.
Cheers,
Brian

[Bluecoat]

Hi Bluecoat,
You have mentioned that the abundance of land would have an impact on capital gains.
Are capital gains your main interest in real estate?
As I understand it if your goal is to simply go after capital gains you are speculating.
I would prefer to be an investor by buying cash flow positive property with a good yield and having the tenant pay my down mortgage
and other outgoings.
Capital gains are simply a by-product when the property increases in value.
Cheers,
Brian

Not disputing that strategy at all Brian, all investors have a finite time

[Lizvdw]

For rent or to sell?

I think Hamilton and Tauranga and both building more than then need and long term there must be a correction!

Ross

Ross, we recently moved up to Tauranga from Wellington and I can definitely say that there is definitely NOT enough property for rent here. Its like a feeding frenzy - absolute madness when you go to view a rental and you are one of 30 people going through the place.

[Jackson77]

I checked the rental properties for Hamilton in Trademe, there are 457 listings, excluding the 1 bedroom or overly priced properties, there are still a lot of them. A decent 3 bedroom property in Winstone Ave Chartwell listed on 30 Dec 2015 and available 30 Jan still available, though it is only asking for $340, this seems to me like oversupply of rental properties to me. Anyone can comment on this?

We just bought a rental here and had it tenanted the week after settlement. That area of Winstone Ave is a bit rough so that's probably why it hasn't rented yet.

[Lizvdw]

Yeah do think that the less favorable areas are harder to rent out, with the most areas being rented out very quickly. It also depends on how 'fussy' the landlord or rental agent wants to be. But in my experience there is certainly more demand than supply here right now. The house that we are in at the moment was also rented immediately after settlement - to us!

[Hed003]

I was browsing through to see if anyone having the same issue as me. We have a fairly new townhouse in Hamilton central area and has been vacant for almost a month. PM informs no applicants. There was one interested party but did not turn up. Is that normal there? Should I sell the property or change PM?

[Wayne]

Have a chat to another PM maybe to see what the market is like.
Or peruse Trademe