www.propertyinvestments.net.nz University Investment Newsletter March 2015 - Issue 52 Welcome Welcome to our 52nd University Investment Update. Looking back The Landscape has changed.. (1999 - 2001) Forget historical property cycles. Gone are the days of doubling Lane Sievwright house prices every 8-10 years as experienced five times between 784 George Street m 021 526 366 1960 and 2007 when interest rates (and inflation) fluctuated from $225,000 a low of 5% in the early 60’s to peaks around 20% 1986/87. $69 x 7 According to “those who should know” we are now likely looking 11.16% at a continuation of the low interest rates, low inflation regime we September have been experiencing since the GFC (2007/08), for some years 2001 to come. 7.7 7.5 When we purchased one of our first flats in 1981 – 877 George Clayton Sievwright Street for $23,000, $11 per room, 4 bed villa, 9.9% yield there was m 021 191 5555 75C York Place no internet and we knew nothing about the University market other than the obvious supply of students seemed to $217,265 suggest buying flats close to where they would want to live seemed like a good idea. $85 x 5 For years we knew no other landlords and it was pretty much fly by the seat of your 10.17% pants. September 2000 There is now a plethora of property related information on the internet and everyone 8.4 8.2 involved in owning or looking at buying a property is now so much more market savvy.

17 Hyde Street Are you in the Loop? $146,000 While the quantity of articles, posts, blogs on interest rates, and a seemingly endless $68 x 5 stream of statistics relating to every aspect of property ownership is freely available on 12.1% the internet, the biggest problem is drilling down to what is really important to know in December relation to your own chosen line of investment. Most information relates to normal 2000 family homes and is of little use to investors other than giving an indication of their own 8.4 7.9 homes value. Property investment information although quite useful is fairly general and seldom drills down into localized niche markets if that’s where your interest lies. University of Otago – Campus is one such market and this is where we come in. In 10/700 Great King St marketing and selling the majority of student flats we are ideally placed to provide the $225,000 bulk of accurate feedback to both owners and potential buyers. $70 x 6 9.7% As investors ourselves we are well positioned to appreciate what we would want to know and other investors might find useful. There is no substitute for hands on July 1999 experience and to be fair after 30 odd years at the coalface of the student market, if it hasn’t happened to us it probably hasn’t happened. 6.4 7.6 So are you in the loop? Do you have access to all our information and do you know Interest rates at the time where to find us? If you are reading this you are part way there. This quarterly newsletter now has a circulation of 2,475 including not only owners of Prime Campus Floating 2 year fixed flats but also privately owned homes in the area, plus fringe and beyond if the property houses students. We also include every buyer (some of whom are now owners) who % % has enquired about investing here.

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On a weekly basis (every Friday), we email 1,652 buyers and very, very low to the point of deflation for years to come. There owners who want to keep up to date or who are looking to buy is now US $2 trillion invested in bonds and bank accounts that again with an update on the weeks activity, what’s new, under offer negative interest rates. Locally floating rates are expensive offer or SOLD. when compared to new fixed rates. Our R.B. is unlikely to raise interest rates in the foreseeable future – at least until well into On a daily basis new listings are emailed the minute we list 2016. Logic would suggest that in a market where interest rates them so in particular as a buyer you have a head start on anyone are predicted to stay lower for longer one should consider fixing not in the loop. short rather than longer.

If you are not up with the play simply let us know your email So much for trying to condense a couple of pages of an article address and you’re in. into a few lines but time spent getting abreast of interest rate costs can be even more beneficial to cash flow than room rate Our specialist “propertyinvestments.net.nz” website is increases. designed to provide up to the minute access to new listings, current listings, sold information with price, rent and yield details, access to all our past newsletters and useful links to How’s the year shaping up - (sales in $ millions) helpful resources. 2015 2014 2013 2012 10 8.45 3.46 8.15 Our newsletter, email notification of new listings and weekly Quarter # 1 update is local, national and international. Quarter # 2 5.87 6.19 3.9 Quarter # 3 4.18 6.99 8.54 Locally and throughout Otago our presence is by far second to 10.08 7.58 6.85 none with a full feature page in the Otago Daily Times every Quarter # 4 28.58 24.22 27.44 weekend. Total e.g. quarter # 1 = Mid Dec - Mid March Our office is strategically located on George Street – Prime Campus, taking advantage of the high foot traffic in the area with window displays of all listed properties. The location is also INTEREST RATES 5th March 2015 (Major Banks) ideal for our Property Management team and has become a hub for students looking for flats. Fltg 1yr 2yr 3yr 5yr 5 March 2015 6.59% 5.7% 5.39% 5.69% 5.89% As for being in touch with the pulse of the market our own flats 4 March 2014 5.64% 5.49% 6.29% 6.35% 7.2% are scattered throughout Prime Campus giving us the advantage of a realistic view of sometimes subtle market 5 March 2013 5.74% 4.89% 5.39% 5.39% 6.25% changes on a daily basis. 2 March 2012 5.74% 5.65% 5.79% 6.1% 6.9% 10 March 2011 5.74% 5.95% 6.49% 6.69% 7.7% If you are missing out on any of the above services just get in touch. We are happy to pass on our knowledge and experience. If you are thinking about selling or need an idea of market value we are here to help. Handy tips T.V. Do you supply TV? Have you had a HDMI port not Interest Rates working? We had this last week and our TV guy tells us this is becoming a problem with students plugging their gear in while Where will they be tomorrow and in 5 years’ time? When you the port is alive. The TV must be turned off at the wall (not just the finally find that property or look at refinancing, sensible TV!). decisions can’t be made without the best possible crystal ball at your fingertips. More often than not economists don’t entirely Smoke Alarms Do you buy the cheapest smoke agree but there is often a thread of commonality in their views. A detectors? They are usually “ionization” and don’t work with recent article by Bernard Hickey on interest.co.nz is worth a a smouldering smoke fire. Always use photo-electric. Three read. Look for “whether to fix, float, how long to fix” etc., (Feb 17). breaths of dense smoke is all it takes for someone to not survive. Basically many countries are experiencing very low If you are buying a 10 year detector check whether it’s got a 10 inflation. Central banks in Europe, Japan and China have cut their year battery or its just 10 years on the unit. interest rates to 0%. Swiss two year bond yields now offer minus 1.2% (you got it! Savers are paying the bank to look after their Bonds If any part of the bond is to go to the landlord only money!). In Feb ANZ NZ borrowed 750 million euros at a rate of one student needs to sign. If a part of the bond is to go to only 0.625%! Inflation in the world’s most liquid markets is likely to be one or not all of the tenants – all students need to sign. Sold since last newsletter ($10,331,100) I’m Sold! PRIME CAMPUS I’m Sold! PRIME CAMPUS I’m Sold! PRIME CAMPUS 102 1&2 Harbour Tce 798 George Street 7 Queen Street Centrally located 5 Seven furnished studio Large three storey bedroom apartments rooms, separate living, property rented as presented to a high off street parking a nine bedroom flat standard. Rented and garaging. Zoned and already rented at $1,400pw, plus 2 at $135pr for 2015. $12pw for car parking. Res 3 and with 410m With room to increase Recently upgraded of land gives some rents and potential to with all the mod-cons. development potential develop further. $885,000 - 8.3% $800,000 - 9.25% gross $772,500 - 8.17% Vendor: Vendor: Thailand Vendor: Alexnadra Purchaser: Dunedin Purchaser: Overseas Purchaser: Christchurch

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I’m Sold! PRIME CAMPUS I’m Sold! Fringe Campus I’m Sold! PRIME CAMPUS 17 Queen Street 88 Warrender Street 9/700 Great King St Potential income Residential Zone Popular student flat of at least $43,160 3 Land. 1117m2. 24 with six bedrooms, derived from this room capable. Huge two modern large two storey brick potential to add to bathrooms, modern villa in three flats plus existing residence kitchen and open plan potential income or develop a new living. Rented to 7 from two garages. complex of Units. students at $860pw. $627,100 - 6.88% $620,000 $580,000 - 7.71% Vendor: Dunedin Vendor: Dunedin Vendor: Dunedin Purchaser: Dunedin Purchaser: Dunedin Purchaser: Dunedin

I’m Sold! PRIME CAMPUS I’m Sold! PRIME CAMPUS I’m Sold! PRIME CAMPUS 7/54 Anzac Avenue 4/54 Anzac Avenue 15/54 Anzac Avenue Highly sought after Modern, smart Popular five low maintenance investment with bedroom apartment. spacious five five bedrooms, two Rented at $675pw. bedroom apartment. bathrooms and open Modern kitchen and Rented at $675 plan living heated by two bathrooms, heat per week for 2015. heat pump. Rented pump in open plan Extremely popular at $675pw for 2015. living area. One car with students. parking space. $561,500 - 6.25% $558,000 - 6.29% $557,000 - 6.3% Vendor: Oamaru Vendor: Balclutha Vendor: Balclutha Purchaser: Auckland Purchaser: Dunedin Purchaser: Dunedin

I’m Sold! PRIME CAMPUS I’m Sold! Gardens I’m Sold! PRIME CAMPUS 17 Titan Street 11/73 Buccleugh St 1074 George Street Upmarket Four bedroom studio Rented as four apartments in the apartment elevated bedrooms, two heart of Campus! for sun and views. bathrooms at $594pw. Could be a Two bedroom flat Each studio room is ensuited and five or six bedrooms downstairs, one comes with extensive with a little work and bedroom flat upstairs. chattels. Rented at D.C.C. consent. Total rental of $610pw. $820pw. $495,000 - 6.4% $450,000 - 9.48% gross $415,000 - 7% Vendor: Wanaka Vendor: Dunedin Vendor: Queenstown Purchaser: Dunedin Purchaser: Indonesia Purchaser: Auckland

I’m Sold! PRIME CAMPUS I’m Sold! PRIME CAMPUS I’m Sold! PRIME CAMPUS 1 Lovelock Avenue 6 Agnew Street 23 Dundas Street Substantial villa Located in central Tidy campus 2 comprising 5 campus, 253m , cottage. Three good bedrooms and Zoned Res 3, this sized rooms, open three heat pumps site offers you both the option of a plan kitchen/living split over three spruce up or knock with heat pump. levels. Rented at over and rebuild. Rented for 2015 at $475pw for 2015. Rented at $500pw. $390 per week. $405,000 - 6.09% $323,000 - 8.04% $293,000 - 6.9% Vendor: Dunedin Vendor: Darfield Vendor: Purchaser: Dunedin Purchaser: Australia Purchaser: Hong Kong

I’m Sold! The Glen I’m Sold! Gardens I’m Sold! Central City 7 Walter Street 19 Carlyle Street 13/93 Filleul Street This large well Tidy four bedroom Brand new unit maintained villa villa with large sunny consisting of one comprises two flats. deck and off street bedroom, bathroom A three bedroom flat parking for 4 cars. and open plan rented at $305pw Recent re-roof and living opening onto and a two bedroom electrical has been an outdoor balcony. flat at $225pw. upgraded. Rented at Rented at $375 per $420 per week. week. $280,000 - 9.84% $275,000 - 7.94% $270,000 - 7.2% Vendor: Ranfurly Vendor: Dunedin Vendor: Dunedin Purchaser: Auckland Purchaser: Oamaru Purchaser: Dunedin

I’m Sold! Woodhaugh I’m Sold! PRIME CAMPUS I’m Sold! PRIME CAMPUS 69 Malvern Street 82 Dundas Street 68 Dundas Street Four bedroom house Centrally located This investment plus sleepout with 2 four bedroom property is ideally bedrooms. Rented at terrace flat rented located. Tidy $300pw for house, $180pw for sleepout. at $315 per week condition inside Within walking for 2015. as well as recent distance to re-roof. Rented at University. $300per week. $250,000 - 9.98% $206,000 - 7.95% $205,000 - 7.6% Vendor: Hamilton Vendor: Christchurch Vendor: Dunedin Purchaser: Dunedin Purchaser: Dunedin Purchaser: Auckland

I’m Sold! PRIME CAMPUS I’m Sold! I’m Sold! Dalmore 70 Dundas Street 37 Blacks Road 25 Ramsay Street Four bedroom brick Sunny elevated villa Tidy weatherboard terrace flat only a with a good rental home with two history. Rented double bedrooms, or few minutes walk to at $250 per week. could be three with University faculties. Three bedrooms, compact living and Tidy condition separate living. kitchen. Previously throughout. Rented Off-street parking rented at $270 per at $340 per week. and great sun. week. $200,000 - 8.84% $153,000 - 8.5% $150,000 Vendor: Australia Vendor: Dunedin Vendor: Invercargill Purchaser: Auckland Purchaser: Dunedin Purchaser: Dunedin

Lane Sievwright and Clayton Sievwright e [email protected] w www.propertyinvestments.net.nz The University Investments Update March 2015 - Issue 52 www.propertyinvestments.net.nz Currently for sale

Central City Roslyn 257 High Street 29 Melrose Street This substantial 390m2 property studios consisting of has fifteen bedrooms, kitchen, two blocks of units split into 12 separate dining room and lounge, studios in the lower block, 11 in office and store room, three the upper block. Each studio is bathrooms and laundry. Separate self-contained with kitchenettes low maintenance out-building at and full bathrooms. Each block the rear. Central City location with is serviced by a fully equipped on site parking and sweeping city common kitchen area plus views. Freehold title of 1012m2 res laundry. With a gross income 4 zoning. An opportunity not to be of approx $281,000, landlord missed with multiple options and costs of approx $37,000, giving a potential to add value. healthy nett income of $244,000. Deadline Sale Buyers over $2,000,000 15 3 OSP 23 23 OSP PRIME CAMPUS PRIME CAMPUS 4 Dundas Street 129C Forth Street A multiple income stream This stunning landmark investment with good rental history tower boasts location and in a great location! Comprising elevation, outlook and pride of a six bedroom villa, two, six of ownership. Seven spacious bedroom purpose built flats and a ensuited studio apartments five bedroom purpose built flat all with quality finish and on one title, this property has been chattels. State of art common well maintained over the years. kitchen opening to large Garage plus off street parking. patio. Fully rented for 2015 at Rental income stream of $155,064 2 a total of $1,905 per week. A pa. Developers note: 1482m Res 3 unique Campus opportunity. zoning. 32 room capable. $1,815,000 - 8.5% Enquiries over $950,000 23 7 1+OSP 7 7 OSP PRIME CAMPUS Central City 3 Union Street 209 Cargill Street Substantial colonial villa This 246m2 two Storey Villa strategically located, offering never has a shortage of thirteen studio rooms (eight willing tenants wanting to in the main house, one occupy its eight bedrooms detached and a further four and two living areas.Currently in a modern external addition rented for $1,080pw, plus with two shower rooms). $40 for the garage, providing Rent roll of $129,500 with a healthy return for you as studio associated costs of the new owner. Located only approximately $33,500. A must minutes’ walk to Moana Pool view in a blue chip location. and Central City. Offers over $1,000,000 $739,000 - 7.9%

13 6 OSP 8 2 1+OSP Kaikorai PRIME CAMPUS 212 Road 16 London Street This 1960s two-story Right in the heart of the city, investment contains six so close to medical and individually titled units, dentistry in an incredibly enabling flexible financing popular location. This house and ownership options. The has iconic status with six configuration of this ex-motel studio rooms (two with block comprises 2 x one ensuites) and two additional bedroom units and 4 x two bathrooms. Owner has never bedroom units, plus 4 car parks. Five of these units have been had to advertise for tenants. renovated with quality fixtures. Fully tenanted at $1,155pw. Total weekly income $1,310pw. $735,000 - 9.3% $695,000 – 8.64% gross 10 6 OSP 6 4 City Rise 163 Maitland Street 23 Duncan Street This imposing 260m2 Villa This substantial 270m2, 1920s has been sympathetically villa on Central City Rise maintained, whilst being providing nine bedrooms upgraded to offer tenants is fully rented for 2015 at a touch of modern luxury. $73,892 providing the owner Separated into three flats, four with $57,180 nett of landlord bedroom upstairs and two studio costs. Substantial one bedroom flats downstairs. work has been carried out Flat 1 rented at $210pw, Flat and presentation is of a high 2 rented at $275pw, Flat 3 standard. A low maintenance rented at $460pw for 2015. investment at a very good return. $625,000 $599,000 - 9.5% nett 6 3 9 2

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PRIME CAMPUS Central City 18F Forth Street 191 York Place Low maintenance unit, Low maintenance 1960’s brick superbly located within a and tile home, comprising few minutes walk to Central 4-5 bedrooms, 2 bathrooms, Library, Polytechnic and spacious kitchen, 1/2 living Teachers College. Featuring areas. Heatpump. Flat rear six good sized bedrooms section with room for and spacious sunny living. development. Great sun and Rented at $690pw. A definite only a few minutes walk to upside in the rents here with the Octagon and onto the a spruce up. Hospital, Dental School and University. Rented at $450pw.

Enquiries over $480,000 $479,000

6 2 OSP 4-5 2 1

PRIME CAMPUS PRIME CAMPUS 93 Harrow Street 179A Dundas Street Built in the 1990s this Premise Very tidy Campus flat – stand includes a warehouse, alone and elevated for good showroom, office and sun and views over Logan amenities. Zoned Industrial 2. Park. Four good bedrooms Returns a net rental income of and open plan living. Rented $30,000pa plus GST, on a 3yr at $500pw until end of year. lease (plus right of renewal). An easy let at letting time with With a land area of 504m2, there great prospects for future rental is potential for development increases and capital gain (with resource consent). Within or ideal for son/daughter at close proximity to Forsyth Barr University or Polytech next year. Stadium, Uni and Polytechnic. $475,000 $375,000 - 7%

OSP 4 2 OSP

City Rise PRIME CAMPUS 153 Maitland Street 6 Howe Street Four bedroom rental property This solid brick bungalow along with a fully renovated is located a short walk to self-contained studio unit faculties and a stone’s throw underneath. The spacious to popular eateries. Rented house has great views from to four students for 2015 at the kitchen/living area. Heat $420pw gives you plenty of pump for all year comfort. scope to renovate and add Advertised at $370pw. The value. Won’t last long so be downstairs studio is light and in quick! airy. Rented at $185pw.

$334,000 - 8.3% $318,000 - 6.9%

5 2 1 + OSP 3 1

PRIME CAMPUS PRIME CAMPUS 128 Forth Street 683B Castle Street Perched on top of Forth Street Idea for kids at University overlooking Logan Park and or an easy care investment, the Stadium this popular four this three bedroom cottage bedroom student flat would make won’t last long so be in a good addition to your portfolio or quick. Modern kitchen and an ideal entry level starter. a good back yard for tenants A handy location being only minutes to the , to enjoy. Rented for 2015 at Dunedin Teachers College and $390 per week. A spruce up the University. Rented at only $425 should increase rents. pw, gives you the potential for rental increases with an upgrade or spruce up. $299,000 - 6.8% $315,000 - 7% 4 1 3 1

Gardens North East Valley 65B Road 43 Chambers Street This character bungalow is Four large bedrooms plus a located within walking distance brand new sleepout (2013). to the University, Polytechnic, Open plan living/kitchen supermarket, shops and cafes with a dishwasher. Two heat at the Gardens. Featuring pumps, underfloor and ceiling five double bedrooms, two insulation and a HRV system. showers and a modern Large basement storage area. kitchen with dishwasher. This Rented at $300pw for 2015. property is showing very good Only a few minutes’ walk returns and is fully let until 31st to the Garden’s shopping December 2015. precinct and onto University. $289,000 $285,000 5 2 OSP 5 1

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Mornington Fringe Campus 9 Patrick Street 160 Queen Street This tidy villa is split into two Looking for first investment flats. A nicely renovated two or flat for your children bedroom flat in the front whilst at University. Tidy four rented at $260 per week. The bedroom villa. Elevated for rear one bedroom flat has a great sun and amazing views long term tenant paying $185 over North Dunedin. Includes per week. Large spacious heat pump and all whiteware. rear yard completes this Great chance to enter the market. Rented at $396 per investment opportunity. week.

$279,000 - 8.3% $265,000 - 7.8%

3 2 OSP 4 1 Central City 1/93 Filleul Street Located in the Central Business precinct and only minutes’ walk to the Hospital, Medical School, Considering selling? Dental School and University, this brand new unit consists of one bedroom, tiled bathroom with under floor heating, and We have buyers open plan living that opens onto an outdoor patio area. Fully waiting in all price furnished with quality fixtures, fittings and chattels. Rented at ranges. $335pw, plus $25pw for carpark. By Negotiation 1 1 North East Valley PRIME CAMPUS 41 Chambers Street 102 Dundas Street Freshly painted throughout Owner has given clear and elevated to receive instructions to sell! Literally good sun. Three bedrooms right on Campus and only plus sleep out. Heat pump minutes’ walk to most and HRV system. Great deck faculties. Three double overlooking the Gardens bedrooms, separate living, area. Rented for 2015 at small rear court yard. Rented $340pw. Only a short walk to at $285pw. If you are looking the Gardens’ shopping centre. for an entry level investment, something to add value too, then this could be for you.

$220,000 - 8% By Negotiation 4 1 3 1 PRIME CAMPUS PRIME CAMPUS 78 Dundas Street 76 Dundas Street Four bedroom terrace house Four bedroom terrace house, with modern kitchen and open plan kitchen/living with heat pump. Tidy condition heat pump tidy condition throughout (painted and throughout. Small courtyard re-carpeted two years ago). at rear. An opportunity to get Small courtyard at rear. An in the market at an affordable opportunity to get in the level. Only a few minute’s market at an affordable walk to all faculties. Rented at level. Only a few minute’s walk $320pw for 2015. to all faculties. Advertised at $340 per week. $209,000 - 8.5% $205,000 - 8.1% 4 1 4 1 City Rise Gardens 15 Melville Street 41c North Road Located minutes’ walk to the Low maintenance one CBD this terraced two storey bedroom unit with carpark. investment is split into two Ideally located right in one bedroom flats. Both flats the heart of the Gardens recently painted throughout shopping precinct. Very tidy and both have modern kitchens. and well presented. Rented Downstairs rented for $230pw at $240 per week. and upstairs rented at $200pw. Rental of $22,360pa. Get your foot on the investment ladder with this entry level investment. $199,000 - 11.2% $195,000 - 6.4%

2 2 1 1 OSP For further listings go to our website; www.propertyinvestments.net.nz

While every effort is made to ensure accuracy of the information and opinion herein, no liability is accepted for any error and clients are advised Lane Sievwright and Claytonto seek Sievwright independent e [email protected] before making decisions to sell or w purchase. www.propertyinvestments.net.nz