November 2017 House Prices
November saw a large increase in the number of houses sold across New Zealand and was the largest increase over an October month for 6 years. Every region in the country except the West Coast saw sales numbers increase over October. Prices too increased in November across the country with Auckland showing the largest increase for the month at 3.8%. November saw record prices in the following areas:
* Bay of Plenty new record median $567,000
* Hawkes Bay new record median $420,000
* Manawatu/Wanganui new record median $300,000
* Wellington new record median $549,777
* Marlborough new record median $437,000
* Canterbury new record median $460,000
* Southland new record median $265,000
Hopefully following the election and a very wet winter the market will settle down. Expect continuing (but moderate) increases in prices where there is a shortage of properties such as Auckland or Queenstown.
Introducing our newest qualified inspector Maxe Janssen who will be servicing the Takapuna area in Auckland
Being a Landlord
Being a landlord will become more and more expensive and difficult. Passed into legislation over a year ago it will be compulsory by the 1st of July 2019 for all rental properties to meet new insulation standards and mandatory smoke alarms in rental properties.
Wellington City Council is operating a WOF or Warrant of Fitness requirement for rental houses which has the very desirable aim of improving the standard of rental properties. As with many bureaucracy initiated moves however the present system seems to be way over the top.
Of the 144 properties trailed before the WOF was introduction 90% failed. This was probably because of the over the top standards rather than 9 out of 10 of the properties being “unhealthy”. Further down the page is the pass / fail form for the WOF. The Greens propose a compulsory WOF by 2019 and would go even further with a landlord bond to cover repairs, a registration fee and recheck inspection fees every 3 years.
It is likely that Methamphetamine testing will also become a requirement too. The cost of being a landlord will certainly increase and probably rents too as a result. Unless the WOF which will certainly be introduced throughout NZ is made more practical then watch out for the Mother of all rental shortages.