Archive for July, 2015

Trickle to become flow

Almost half of the ten thousand skilled migrants to New Zealand settle in Auckland. The migrants who apply for residence under the skilled migrant category have to qualify for 100 points before being eligible to be invited to apply. Currently 10 points are given for work outside of Auckland.

From the first of November however the number will treble to 30 extra points and the migrants will have to commit to a region for at least 12 months.

Entrepreneurs will also be encouraged to look for business opportunities in the provinces through increased points.

I expect to see more immigrants coming to the Manawatu as a result of this change in policy, and we’re also aware of the large number of Aucklanders

viewing the website in particular, looking at Manawatu properties. This number has increased dramatically from a year ago. There are also an increasing number of Auckland investors buying in the Manawatu.

Currently the Auckland influence would realistically be described as a trickle, but there is a good chance that this will increase to a steady flow.

Kind regards,
Michael Ford

What Size Houses Have Been Selling?

There were 62 house sales in Feilding in a recent 2 month period.  55% had floor areas of between 80m2 and 139m2. Another 16% had floor areas between 220m2 and 279m2, with only 1 sale of a larger house.

What Size Houses Have Been Selling?

What Size Houses Have Been Selling?

Kind regards
Michael For

Volume Down A Bit, Median Adjusting Back

Feilding had 27 house sales in June, which is the lowest since January, but certainly higher than the 25, 22 & 18 in November, December and January.

Palmerston North had the highest number of sales in the month of June for over 3 years.

After 3 months with the median sale price between $282,500 and $285,000, the median has dropped to $238,250 in May, and $245,000 in June. I expected the median to drop, as it was difficult to see the justification of it being the same as Palmerston North. The smaller sample of sales bounces around more than in the larger centres. That is why I work on a median calculated over 3 months which still moves more than in the larger cities, and is now at $244,000.

The 3 monthly medians are:
Feilding                     244,000    Palmerston North             281,575
New Zealand            455,000    Eastern Suburbs Ak      1,400,000
Levin                         185,000    Rangitikei                         163,000
Pahiatua                   142,000    Wanganui                         155,000

Kind regards
Michael Ford

$223 Per Week Payments

A typical Feilding Tenant will be paying $300 per week to rent a $200,000 property. It may well be possible to buy such a house with a $20,000 deposit, and $180,000 loan over 30 years, at 4.99% interest rate fixed over 2 years. The mortgage payments would be only $223 per week. Even with rates and insurance, it may well be cheaper to buy than rent in Feilding. Feilding is a good town to invest in, and housing is comparatively affordable. A similar exercise in Auckland would result in mortgage payments of $670 per week!

Kind regards
Michael Ford