Tag Archives: facebook
Auckland sees unprecedented housing market activity
Unprecedented sales activity in March saw Auckland’s residential housing market establish new records for prices and sales numbers, according to the latest index for the New Zealand city. March is always the most active month for property sales, but there has never been a month’s trading to compare with the past month, according to Peter Thompson, managing director of Barfoot & Thompson. The average sales price increased by 3.9% compared with February, pushing the average sales price to an all-time high of $776,729. It is more than $17,000 higher than the previous record average price set in December last year. The median price at $711,000 increased by 1.1% over that for February and is 9% higher than the median in March 2014, the data also shows. ‘March has set a string of new records,’ said Thompson, adding that a quarter of all the homes sold in the month were for in excess of $1 million and the firm sold 1,597 homes in the month, the highest number ever in a calendar month. ‘Buyers were not put off by the record prices, and for the last two weeks of the month we sold more than 400 homes each week, the highest two weeks trading in the company’s history,’ he explained. ‘Buyers remain convinced that with a stable economy, low interest rates and restricted housing availability, that buying at current prices is manageable,’ he added. The data reveals that in the first quarter of this year, the average sales price has risen 6.1% over 2014’s average price for the year of $716,588, and March’s average price was 7% higher than it was 12 months’ previously. During the firm sold 420 homes for in excess of $1 million, 167 more than the 253 homes we sold in March last year, which until now was the highest number of $1 million homes sold in a month. At the same time it sold 300 homes for under $500,000, which represented 18.8% of sales. According to Thompson current high prices are encouraging more home owners to bring their property to market, and during March the firm listed 1,997 new properties, the highest number in the past 17 months. ‘At month’s end we had 3347 properties on our books for sale, the highest for 10 months. While sales activity in April is unlikely to match that for March, given the relatively good level of choice available trading can be expected to remain extremely active,’ he concluded. Continue reading
Research reveals lack of knowledge on returns and finance in buy to let
Almost a quarter of buy to let investors in the UK residential property market don’t keep track of the returns on their property portfolio, it is claimed. There is also considerable landlord confusion about the most accurate way of assessing their buy to let finances, according to new research from specialist firm Platinum Property Partners. It found that 23% of UK landlords do not measure the return on their buy to let investments at all and this means that £300 billion of investment in the sector is left unmonitored, leaving UK landlords unaware of the current or ongoing health of their property portfolio. Landlords owning Houses in Multiple Occupation (HMOs) for young professionals and key workers are the most likely to measure their portfolio, with 95% tracking the profitability of their property portfolios in some way. But landlords who let out holiday homes are least likely to assess the returns on their investment with 33% failing to measure the financial performance of their rental properties. Not only is there a significant failure among UK landlords to measure buy to let returns, but there is also a worrying lack of consensus about the most effective way to measure the performance of property portfolios, the firm says. Return on Investment is considered the most effective way to measure the performance of all investments, including property. For buy to let it is the only method to take into account gross profit, the cost of the property (including fees and refurbishment) and capital gain. Return on equity uses a similar calculation so can also be considered an effective measurement, according to the firm. However, just 21% of buy to let investors measure the performance of their investment using these methods and 56% of property investors use a less effective method to calculate the profitability of their portfolio, which means that £700 billion of buy to let investment is at risk of not being monitored accurately. The research suggests that not only are landlords using ineffective methods to calculate the performance of their property portfolio, but the vast majority do not fully understand the key financial terms. Just 24% of landlords understood the term ‘Return on Investment’. When asked to select the correct definition, 56% failed to do so while 20% were not sure. Landlords letting out flats were the least savvy about this type of financial measurement, with only 8% able to define this term correctly. Overall some 26% could accurately define ‘Gross Yield’ and the research found that landlords of HMOs for working tenants and holiday homes are the most clued up about the meaning of this term at 38% and 42% respectively. The research also found that just 12% knew what is meant by ‘Gross Profit’, with 73% of landlords incorrectly identifying the definition. Landlords with holiday homes were the most familiar with this measure with 25% understanding the term. However, even among those investors who correctly understand financial terms, there was no… Continue reading
Cleaning disputes between landlords and tenants in UK increasing
Landlords and letting agents in the UK are increasingly faced with dirty properties at the check-out stage and this has led to cleaning now accounting for 53% of deposit disputes. Over the last three years cleaning disputes have leapt by 13% whilst damage has dropped by from 60% to 46% in the same period, according to research by inventory software firm Imfuna Let. According to Jax Kneppers, the firm’s chief executive officer many tenants fail to leave their property in the same condition at check-out and are often very surprised when they are told that professional cleaning is required. As a result deductions made by landlords in relation to cleaning charges are regularly disputed by tenants. Many tenants claim that the cleanliness of the property at the start of the tenancy was not clear, or that the tenancy agreement did not make clear what was expected of them ‘If agents and landlords wish to make deductions for cleaning costs, they need to be careful to record the cleanliness of the property in sufficient detail, at the start and end of the tenancy. They will also need to ensure any charges they claim are a fair reflection of the property’s condition at the start of the tenancy,’ added Kneppers. One agent, Simon Smith, managing director of KS Property Rentals, said he has seen a decrease in cleaning disputes since using the firm. ‘I believe this is down to the very detailed inventory we carry out using the Imfuna Let software. We are able to record the cleanliness of the property with commentary and photographs and the digital inventory is shared with tenants at the start of the tenancy,’ he explained. ‘Cleanliness and rubbish removal are responsible for at least 90% of our deposit claims, less and less of those claims are reaching ADR due to the fact that once a tenant moves out, we email them a copy of their check-in and check-out reports, showing the clear evidence gathered with the Imfuna App, which speaks for itself,’ he pointed out. ‘As a result of seeing a thorough analysis of the property’s condition, more and more tenants are aware of the state of their fridges, ovens and the property in general, during the tenancy. Tenants are aware of cleaning issues and generally make more of an effort to keep the property clean during their tenancy,’ he added. Continue reading
