Residential sales activity for Marlborough/Kaikoura in February
is static in regards to sales volume, sitting on 96 sales
again this month.
There were 5 section sales for February, down on the 20 recorded for January.
The median sell price for homes remains steady on $438,500 in comparison to January’s $435,000.
The median number of days to sell also remains steady on 49 days as opposed to last months 46 days.
The total value of sales for February was $48,209,000
Property Management Roundup
Rental prices have remained static for the last couple of months in Marlborough. As Let fees are now paid for by the owner and most Property Management companies are recovering this cost for their owners via rent increases it is expected that the median rents will increase by a further $5 to $10 per week in the following 12 months. The February statistics* report the median rent for a 2 bedroom house in Blenheim remains at $320pw, the 3 bedroom at $390pw and a 4 bedroom at $430pw.
*Ministry of Business, Innovation and Employment statistics for the six months ending 28th February 2019.
Three Property Investment Mistakes to Avoid
It’s no surprise that more and more astute investors are turning to property as a way to grow capital. Like all investments though, buying an investment property takes careful research so you know what you’re getting into and what the pitfalls. To help you stay on top of the property investment game, here are 3 common mistakes to avoid.
1. Emotional Decision Making
Choosing a family home is largely based on how you feel about the property. It’s quite understandable that emotion plays a large part of that decision.
2. Lack of Research
Not only do you need to have a good understanding of the property market and investment fundamentals but familiarising yourself with the neighbourhood you’re considering buying into is just as important.
3. Going it Alone
Choosing to handle everything yourself – from finance to property management - could end up costing you more in the long run. It’s best to seek advice from a professional. A Mortgage Express mortgage adviser can help with lending advice by looking at your financial situation and needs and matching those with a finance option to suit.
Give Peter Lewis a call to discuss your options on 027 371 4918.
*Disclosure statement available on request at no charge
Property Management Roundup
Commercial vs Residential property investment
What really separates commercial from residential investment is the yield on investment.
Residential tenants pay a gross rental meaning the landlord covers the rates and insurance. In most cases the commercial tenant will let on a nett basis, whereby they pay the rent plus the occupancy costs of rates, insurance and body corporate.
The overall result is generally a much
higher yield than residential, usually between 5% and 8%, or even higher depending on the location, type of property and lease terms.
In a time of falling interest rates where bank rates for term deposits are also very low, commercial property is an extremely viable option for
securing an ongoing income.
For an overview on what's available in the commercial property market, ask your NAI Harcourts sales consultant for the latest commercial
property listings or a copy of our Key Assets portfolio.