Auckland CBD Archives | Apartment Specialists

Tag: Auckland CBD

i worry about tax

There are commonly 3 taxes which can be charged when property is bought or sold.

These are:

  • Goods & Services Tax (GST)
  • Capital Gains Tax (CGT)
  • Stamp Duty

There is no Stamp Duty in NZ (but it is charged in Australia).

CGT only applies if you bought after November 2015 and sell within 2 years.

GST applies when an apartment is on a commercial lease.

Summary:

When selling your apartment, it is important to know what taxes you may or may not have to pay as this effects the outcome.

There are three main taxes involved when selling your property/apartment in Australasia but not all or any will apply to you necessarily.

New Zealand is a great place for property as the taxes charged are lower than any other first world country.

There is no Stamp Duty which is a tax charged on purchasing a property in Australia or the UK.

Capital Gains Tax only applies to you if you bought after November 2015 and sell within 2 years.

However, the one tax to look out for which many owners forget or are unaware of is GST.

Goods & Services Tax or more commonly known as GST applies to you if the apartment is bought with the intention to be used for what is called a taxable supply.

I.e. for a commercial capacity.

For example, a guaranteed rental, commercial lease or an apartment in a hotel lease.

The important thing here is if your apartment was intended to be used as a taxable supply make sure you talk to your accountant, as there is a good chance that when your sell your apartment a 15% tax will be applied or passed onto the next purchaser both effectively reducing what you are left with.

What a Sole Agency Agreement can mean for you.

What happens with you sign a sole agency agreement with an agency? Here are 3 examples from owners that we worked with who wanted to sell their apartment. Unfortunately the agencies with whom they signed just didn’t deliver at all or in a timely manner and this is due to the sole agency agreement in their contract.

Summary:

Signing and selling my apartment with a sole agency agreement and what that means for me. This is important to understand as a Sole Agency agreement is legally binding. At Apartment Specialists we don’t lock you in.

It is important to understand and know your rights as an owner when selling your apartment and what it means when signing a Sole Agency Agreement.

This is because it is a legally binding document and sometimes owners don’t realise this and what implications this may have.

The most common clause in an agreement is signing with an agency and being locked into 90 days with the agency. This means if you are not happy or you feel the agent is not working for you, you can’t change until that time period is up.

We trust in that if the service is good why would you want to leave.

The choice should be yours.

In any other industry this would not be accepted, so why real estate?

How much commission is charged when selling an apartment in Auckland? You should know what you are going to be left with after all the costs.

You also should know what’s most important to you, as an owner, to look for in an agent. We’ll bet it’s that they’ll maximise the amount of money you’ll be putting in your pocket. Just because the commission costs are higher it doesn’t mean you’ll be getting less when your apartment sells!

Get insight on what real estate agents in Auckland charge for commission and why, sometimes, it’s better to pay a little more commission to get a lot more value.

SUMMARY:

The commission charged when selling your apartment vary depending on your apartments value. You are charged 4% for a value up to $500,00, 2% for a value up to $1,000,000 and 1% upwards from $1,000,000 plus GST.

It is not always about the sales price you can achieve but rather you want to know how much you are going to be charged in commission and what you are going to left with after the sale has gone through.

Usually you will be charged around 4% for a property with a value up to 500,000. 2% for a property up to a $1,000,000 and 1% for properties sold for more than $1,000,000. This is plus GST unless you living outside of New Zealand and can prove your residency, then you won’t be charged GST.

There is however a minimum cost you will be charged and this applies to properties worth 3,000,000 and under.

These can vary across agencies and Apartment Specialists we charge $11,500 plus GST

When you sell a property below 300,000 there is a minimum fee, at Apartment Specialists ours is 11,000 plus GST (This is subject to change without notice).

However, it is more than just what your commission costs are going to be – you want to ensure the agent you have chosen is going to get the best possible deal for you. Asking your agent for their recent sales and what records prices they have achieved is a good idea to inform you with what price you may get.

We have an advantage in the apartment industry to help you realise your apartments worth as there are so many like for likes, for example the same apartment that has been sold in the building with the same specs and so on.

SUMMARY:

Planning on how long this process will take is an important aspect to consider when selling your property. We can’t say exactly but we can estimate due to averages that a freehold property takes around 30 days to sell including the campaign and then another 3 weeks to settle from there.

Leasehold properties are different, and typically take double the time to sell (around 60 days) but the same time for settlement, 3 weeks.

Bearing in mind that if your property is tenanted (Periodic) in both situations you are legally obligated to give them 42 days notice in writing if a purchaser prefers vacant possession.

?find apartment actually worth

What is the difference being a specialist for you, an apartment owner looking to sell? With thousands of apartments in the Auckland CBD and surrounding suburbs and at least 100-150 apartments selling every month, you need the right information so you can make the best decisions for you.

Apartment specialists looks at the value of apartments, not just in your building, but of those in the surrounding buildings as well. The apartment market moves all the time and we make sure we’re aware of it when valuing your apartment.

SUMMARY:

There are over 26,500 apartments in the Auckland CBD and fringes and around 400 buildings which will become up to 450 in the coming years. Each month there are 100 to 150 sales of apartments.

We know this by understanding our market well. This is done by constantly keeping up to date and being in the know. It is not just about being an agent but about being a specialist in the market.

We look at apartments that are the same, these are usually in the same building and look at other buildings that are similar to help us gauge the real market value of your property. Calculating size, carparks, level and so on are all important factors to consider when valuing a property as well as record prices in the building and recent sales in both your building and other that are alike.

By being well informed, we can help you make the best decision that works for you and selling your property.

Summary:

It is very important that you rent out your property at the right time of the year. If not you’re are going to get lower rent and may have time when your property is vacant.

The worst time to rent out your apartment is from the end of October through to around mid January. This is due to may university students leaving for the end of the year and may overseas tenets go home for this period. Another factor to consider is that many people make change at the end of a year in New Zealand and the start with their new venture at the beginning of the year. This shift often means there is a lot on the market and many apartments are vacant.

April through to September months are okay, this means the rent you will receive will not be peak but will be fair. The key consideration to take into signing a rental agreement in this time, is when will it finish.

To try and get your renters to take vacancy is the green period is to use your tenancy signing period to your advantage.

You may put your tenants in November into a three-month tenancy. If it is in July, then put them into a one, two, three, four, five, six-month tenancy. This means it is coming up in this peak period. That way you can raise the rent, or if they decide to leave, you can put it on the market in the peak period.

If you rent your apartment in February and the tenant only wants a six-month period or a nine-month period? If it is nine months, then you must refuse it. If it is six months, then they should take it. In July, you may want to get another six-month period so it comes back into February. It is really important that you try to align your tenancies in this crucial time where you are going to get maximum rent because there is maximum demand.

TRANSCRIPTION:

Good day, Andrew Murray here from the apartment specialists talking about when is it the best time of the year to rent your apartment? If your apartment is out of sync, or your tenancy is coming up at a time, then it is not the best time of the year. How do you get it to come up at that time?

Let us start where you have got over 20,000 apartments in the Auckland CBD, where at least 50% of them are tenanted. That is 50% of these apartments are owned by investors and are rented out to people. It is very important to rent out your apartment at the right time. If not, you are going to get lower rent. You are going to have vacancies and you are not going to get the good return. You are looking for the most income and it is going to make it difficult.

First of all you can see that there is a circle in front of you with the months of the year. I am going to go through explaining why this is the best times and the not so good times to be renting  your apartment. I am also going to talk about explaining how to get your apartment to come up in that time and what you should be doing.

As you can see in front of us, we have got January, February, March through to December. Let us start with the worst time. Okay? I will put that in red from October through until early January, or probably towards mid-January. Basically, from about October, all of the university students go home. A lot of English speaking students from overseas or foreign students start going home, and their courses start finishing.

You have a lot of people starting to change careers towards the end of the year. People start making changes at this time, and the reason why is because Auckland has its summer during December, January, February, and March period. And this is when you have your huge holiday. If you are going to make a change, then you are going to be doing it in this period. Simply because a lot of people move out.

This is the worst time to have your apartment come up for rent, because you have got a lot of people moving out. People are not looking for apartments especially in November/December. You are likely to have vacancy periods where there are just more apartments on the market than needed.

Now, here we move into the complete opposite. When is it the best time? And it is simply the opposite reason.

As most of January, February, and March this is where people come into Auckland. This is when people are starting new jobs. This is where the university year starts. So this is where it is very hot. There are not enough apartments in Auckland and this is where the rents get driven up extremely high. So it is really important that your apartment is coming up for either renewal of a tenancy or coming up to be rented during this period.

As you can see the rest of the year for April through September, I have put in an orange or a tan color. This is because it is okay and it is not bad to be renting your apartment in this period. You are not going to get your peak rent, but it is not going to have that huge vacancy periods. You will get a good, solid rent. So, the key thing here is what people need to understand is if you have got a tenancy that is coming up in May. If you have got a tenancy that is finishing in November.

How do you get it to be coming up in this crucial green period? You use your tenancy, and you may put your tenants in November into a three month tenancy. If it is in July, then put them into a one, two, three, four, five, six month tenancy. This means it is coming up in this peak period. That way you can raise the rent, or if they decide to leave, you can put it on the market in the peak period.

Also, if you rent your apartment in February, what if the tenant only wants a six month period or a nine month period? If it is nine months, then you must refuse it. If it is six months then they should take it. In July, you may want to get another six month period so it comes back into February. It is really important that you try to align your tenancies in this crucial time where you are going to get maximum rent because there is maximum demand.

Now I hope that helps. Feel free to fire me an email if you want to ask any more questions. Anyway, Andrew Murray from the apartment specialists and talk to you soon.

Cheers.

Summary:

This is dependent on what your outcome of living or buying in the CBD is. Whether it be a student apartment, an investment or a lifestyle choice. Read on in the bio or watch the blog for further information.

The Auckland CBD is becoming a very desirable place to live.

The central hub is where most owner occupiers take residence, this is where there is a cultural district, supermarkets, Britomart and many views. This area is all freehold.

Viaduct Basin, Princes Wharf and parts of the Ngati Whatua land and is probably the most desirable places to live, these are all Leasehold which is a lifestyle decision.

The university district is surrounded by all the university and has many students in this area along with many handy amenities. The university apartments tend to be much smaller and serve the purpose perfectly for people attending university.

There is an area where there are apartments that are predominantly owned by investors and 90% of properties are rented out and this the area around Hobson St.

Down by Victoria Park has a high owner/occupier area and is still on the city fringe.

Check out the map within the blog to better guide you where these areas are.

TRANSCRIPTION:

Good day, Andrew Murray here from the Apartment Specialists. Auckland C.B.D. is becoming a great place to live in. But like any other area or suburb there are the good parts, and there is the parts that are more suitable for different purposes. What I have done is the map of the Auckland C.B.D. in front of you and I’ve highlighted different areas that are suitable for different purposes.

If we start out with the ‘T’ in the very middle; this is where your best owner occupy stock. This is where the best owner occupy stock is, and this is where your Metropolis is. Also, this is where your Quay West is. This is where your Precinct building is and your CityLife – your Heritage.

The reason for this is you have got your central hub. This is where the power of New Zealand is. In this area you have got your top law firms and top accountancy firms, all that kind of thing. Obviously, Shortland Street is a key street there. Coming down to Queen Street you have got your retail and your cultural district. In this area you have got everything at your fingertips. You have got three supermarkets, shopping malls, Britomart in front, so this is a great place right for owner-occupiers.

What is the actual best place to live? If we forget about being freehold, because obviously this ‘T’ junction here is all freehold land. That would be the Viaduct Basin and you have got Princes Wharf and parts of your Ngati Whatua land. This is all leasehold land, so this is purely a lifestyle decision and it is a great place. You have got your walks, restaurants, very high end apartments with great views and are very spacious.

Then you have got your University district and University land. The Auckland University right here and Auckland University of Technology which is another University here as well which actually has a lot of, I suppose, it has the university campuses which have students who are living on site. You will also see this blue area here where, this light blue are complexes that have very small units, and have been built specifically for the student demographic. So, it’s about student life and their apartments are as small as nine square meters for one bedrooms, which is extremely small and two bedrooms; 30/35 square meters.

You have got this little black area here, and this is where a lot of box apartments are being built by investors. That’s where investors buy for return and It’s probably about 90/95 percent of this whole area is investor. It’s not owned by the person who is in the apartment and it is rented out. This is something that’s not going to be encouraged moving into the future.

What is really exciting is all these areas I have not marked? You have got K Road and Victoria Quarter, which is exciting because it is yet to blossom. If you are going to use that word. It is about what the Council does here and is this going to become more commercial? What’s going to be put here? It all comes down to – the future looks really bright, because the Council is starting to really look after the future of Auckland. As we can see, what they have already done with Wynyard Quarter and Britomart.

You also have the area that I have included here, which is your other end of Victoria Park. It is where you got some great complexes and I see as being part of the C.B.D., because it is on the other side of Victoria Park. This is your bone rock quarter, quite a few apartments here and a great owner-occupier area. Obviously, the majority of all of this around here is all your new fringes, where you have got scattered apartment complexes, which are also very popular.

As you can see, there is also dots here. There is red dots, black dots, blue dots here, and it is indicating that this is not a rule of thumb. In this ‘T’ junction you got a few student apartment complexes in this area here, which is closer to your shoe box apartments. Some great owner-occupier complexes. It’s not a rule of thumb, but it’s a general theme that within this lovely City of ours, it is like little suburbs where there are different parts of the City that suit different purposes.

I hope that educates you a bit on apartment life for Auckland and talk soon.

Cheers.

leasehold apartments in auckland city

Apartment Specialists Podcast No: 52

Summary:

Location of leasehold and freehold apartments in Auckland city (CBD).

TRANSCRIPTION:

Good Day, my name is Andrew Murray from the Apartment Specialists. Today I’m talking to you about leasehold apartments.

Now there are over 20,000 apartments in the Auckland Central area and over 3,000 of them are leasehold. So you need to know where they are. As you can see in front of you, there’s a map of Auckland. I’m just going to show you exactly where the leasehold land is and where those leasehold land apartments in Auckland city are. One of the reasons why I need to do this webcast, is because nearly every single apartment I sell, I always get asked, is it freehold or is it leasehold? So I thought about educating everybody and showing you exactly where the leasehold apartments are, so you know where to look if you want leasehold or freehold.

First of all, we’ve got a map of Auckland as you can see here. Now you’ve got Queen Street right down here – that’s obviously New Zealand’s main street. You’ve got Freeman’s Bay, Parnell, Spaghetti Junction, where all of the motorways are. You’ve got the motorway here, which goes to the Harbour Bridge. Then you’ve your bearings, obviously this is the Auckland CBD. I’ve split it up into five main areas where there’s basically all the leasehold apartments. The first one is where your Maori leasehold land is. That’s through Ngati Whatua, which is this land here, which goes down Beach Road, and then along The Strand, and then back down Quay Street.

Leasehold Apartments Auckland | Apartment Specialists

Now I started with the Maori leasehold land because this is the largest and has over 1,500 apartments just in this area that are leasehold. And there are over 10 different buildings or complexes that are housing those apartments. Going from your Landings, your Scene apartments, your Mirage, etc.

The next biggest is Viaduct Basin. Your Viaduct Basin was actually Ports of Auckland land and got sold in the 90’s to Mr. Farmer who represents Viaduct Holdings. So if we move up here, this is where the Viaduct Basin is. Where your leasehold apartments are. As you can see here, you’re going passed Lighter Quay apartments now, round here, round the Basin, passed Viaduct Point, up through here. Then obviously here, you’ve got Princes Wharf. So that’s where about 1,100 leasehold apartments are.

And then, number three is you’ve got Beaumont Quarter. This is where 248 apartments are. Where there’s about 12 different types of apartments and they started out being completely leasehold and then there was an option to buy. So some of these are actually freehold but a majority of them are still leasehold. And that goes up here.

The next largest is actually a small little pocket called UniLodge where there’s two buildings which is University Student Accommodation and that is right here. That’s got 319 apartments.

One that not many people know about is the old Methodist Church land. Although it has sold the lease on to Dave Henderson, and that’s up on Queen Street and it’s just off Liverpool Street and City Road, so that is right here I’ve actually drawn over. And this little pocket here. There’s about 260 apartments there that are leasehold.

So basically you’ve got your one, two, three, four, five areas of leasehold land and on that there are commercial buildings and apartments. And that’s where you find all the leasehold apartments in the Auckland CBD. So you know if you’re looking for leasehold apartments that’s where you’re going to find them. So hopefully that will help you know where. If it’s in this area, obviously it’s leasehold. If it’s in this area it’s obviously freehold, type of thing.

You know what I’d do next though. I thought I’d go over each of these areas individually and point out different buildings. Your Maori leasehold land, your Viaduct Holdings, your Beaumont Quarter etc, in an individual podcast reach, because I think it deserves it. I hope this has helped and if you have any questions around the value of your apartment that sits in this area or the value of apartments that you’re looking at, just flick me and email andrew@apartmentspecialists.co.nz or give me a ring anytime.

Talk soon. Cheers.

Apartment Specialists Podcast No: 52

Summary:

Location of leasehold and freehold apartments in different parts of Auckland CBD.

TRANSCRIPTION:

Good Day, my name is Andrew Murray from the Apartment Specialists. Today I’m talking to you about leasehold apartments.

Now there are over 20,000 apartments in the Auckland Central area and over 3,000 of them are leasehold. So you need to know where they are. As you can see in front of you, there’s a map of Auckland. I’m just going to show you exactly where the leasehold land is and where those leasehold land apartments are. One of the reasons why I need to do this webcast, is because nearly every single apartment I sell, I always get asked, is it freehold or is it leasehold? So I thought about educating everybody and showing you exactly where the leasehold apartments are, so you know where to look if you want leasehold or freehold.

First of all, we’ve got a map of Auckland as you can see here. Now you’ve got Queen Street right down here – that’s obviously New Zealand’s main street. You’ve got Freeman’s Bay, Parnell, Spaghetti Junction, where all of the motorways are. You’ve got the motorway here, which goes to the Harbour Bridge. Then you’ve your bearings, obviously this is the Auckland CBD. I’ve split it up into five main areas where there’s basically all the leasehold apartments. The first one is where your Maori leasehold land is. That’s through Ngati Whatua, which is this land here, which goes down Beach Road, and then along The Strand, and then back down Quay Street.

Real Estate Auckland | Apartment Specialists
Apartment Building

Now I started with the Maori leasehold land because this is the largest and has over 1,500 apartments just in this area that are leasehold. And there are over 10 different buildings or complexes that are housing those apartments. Going from your Landings, your Scene apartments, your Mirage, etc.

The next biggest is Viaduct Basin. Your Viaduct Basin was actually Ports of Auckland land and got sold in the 90’s to Mr. Farmer who represents Viaduct Holdings. So if we move up here, this is where the Viaduct Basin is. Where your leasehold apartments are. As you can see here, you’re going passed Lighter Quay apartments now, round here, round the Basin, passed Viaduct Point, up through here. Then obviously here, you’ve got Princes Wharf. So that’s where about 1,100 leasehold apartments are.

And then, number three is you’ve got Beaumont Quarter. This is where 248 apartments are. Where there’s about 12 different types of apartments and they started out being completely leasehold and then there was an option to buy. So some of these are actually freehold but a majority of them are still leasehold. And that goes up here.

The next largest is actually a small little pocket called UniLodge where there’s two buildings which is University Student Accommodation and that is right here. That’s got 319 apartments.

One that not many people know about is the old Methodist Church land. Although it has sold the lease on to Dave Henderson, and that’s up on Queen Street and it’s just off Liverpool Street and City Road, so that is right here I’ve actually drawn over. And this little pocket here. There’s about 260 apartments there that are leasehold.

So basically you’ve got your one, two, three, four, five areas of leasehold land and on that there are commercial buildings and apartments. And that’s where you find all the leasehold apartments in the Auckland CBD. So you know if you’re looking for leasehold apartments that’s where you’re going to find them. So hopefully that will help you know where. If it’s in this area, obviously it’s leasehold. If it’s in this area it’s obviously freehold, type of thing.

You know what I’d do next though. I thought I’d go over each of these areas individually and point out different buildings. Your Maori leasehold land, your Viaduct Holdings, your Beaumont Quarter etc, in an individual podcast reach, because I think it deserves it. I hope this has helped and if you have any questions around the value of your apartment that sits in this area or the value of apartments that you’re looking at, just flick me and email andrew@apartmentspecialists.co.nz or give me a ring anytime.

Talk soon. Cheers.