Thoughts about buying an Apartment in Auckland

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quebec

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Topic # 151102 14-Aug-2014 08:34

What does everyone think about buying an Apartment in Auckland. Saw this ad last night in the newspaper and quite inclined to find more about it, not sure how banks treat apartments loan wise.
http://www.ilico.co.nz/

sdav

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Reply # 1108175 14-Aug-2014 10:13

Yeah I'm interested in answers too... Thinking of getting a cheapish (what's cheap mean in Auckland!) 2 bedroom one to rent out and then use the spare bedroom as a base when I'm in town. Seems like a lot of money and apartments are so different to your standard bit of land.

sdav

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Reply # 1108180 14-Aug-2014 10:27

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Having looked at that site now (I have a relative that lives in Stonefields, nice area, they have done a good job) I don't see the value of apartments anywhere but a CBD. Just my opinion, that's a lot of money for such a small footprint when you still have to drive most places.

quebec

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Ultimate Geek
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Reply # 1108266 14-Aug-2014 11:53

sdav: Having looked at that site now (I have a relative that lives in Stonefields, nice area, they have done a good job) I don't see the value of apartments anywhere but a CBD. Just my opinion, that's a lot of money for such a small footprint when you still have to drive most places.

Aren't CBD apartments similar price or even higher. This one will be brand new and is in a central location. I would prefer to live in a residential sort of environment like Stonefields than City plus to get an apartments with a car park costs even more in CBD. I am going to look at this one today or weekend just wondering how banks will treat it as i am planning on getting a 1 bedroom only.

bmoff

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Reply # 1108281 14-Aug-2014 12:17

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I'd be interested to know what the body corporate fees are.

old3eyes

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Reply # 1108283 14-Aug-2014 12:19

bmoff: I'd be interested to know what the body corporate fees are.

That's the one thing that would put me off buying an apartment. They could be in the thousands plus council property taxes on top of it...

Regards,

Old3eyes

mudguard

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Reply # 1108358 14-Aug-2014 13:11

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Been awhile since I worked at Westpac but there were pretty strict rules for mortgages regarding smaller apartments. Something like:
Less than 30m2 50% deposit if an existing homeowner. 100% if non homeowner
Less than 50m2 30% deposit.

Do not quote me, ask your own bank what their LVR requirements are for apartments, they are usually more strict.

I've kind of given up buying for the time being. I have the deposit and could probably service $2500 a month by myself now, but will try wait another 3-4 years, an interest rate spike would be nice. I'm not convinced I'll buy in Auckland. At the moment I'm outstripping any capital gains, but wouldn't mind some interest rate help!

mattwnz

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Reply # 1108387 14-Aug-2014 13:41

old3eyes:
bmoff: I'd be interested to know what the body corporate fees are.

That's the one thing that would put me off buying an apartment. They could be in the thousands plus council property taxes on top of it...

In wellington since the earthquakes, some of the body corporate fees are so high that people now can't afford to live in them, and making a big loss by renting them out. This is mainly due to higher insurance premiums which are part of the body corporate fees. Personally I would avoid anything with a body corporate if you can. Also make sure it is 100% freehold, not leasehold.

sdav

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Reply # 1108402 14-Aug-2014 14:05

quebec:
sdav: Having looked at that site now (I have a relative that lives in Stonefields, nice area, they have done a good job) I don't see the value of apartments anywhere but a CBD. Just my opinion, that's a lot of money for such a small footprint when you still have to drive most places.

Aren't CBD apartments similar price or even higher. This one will be brand new and is in a central location. I would prefer to live in a residential sort of environment like Stonefields than City plus to get an apartments with a car park costs even more in CBD. I am going to look at this one today or weekend just wondering how banks will treat it as i am planning on getting a 1 bedroom only.

Yeah, for the type you are looking at in Stonefields I'd imagine that in the city they would be more expensive. I would be interested to know what they are like inside. I think Stonefields is a great little area, good luck!

Kopkiwi

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Reply # 1108403 14-Aug-2014 14:06

As someone who used to work in a bank and deal with this sort of lending.

Worst investment you can make is in an apartment.

WHEN the property market drops, apartments are the first to lose ALL their value and they become insanely hard to move.

livisun

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Reply # 1108436 14-Aug-2014 14:52

I live in stonefields, really enjoy living here. It seems like they have information on their own loans on the site http://www.ilico.co.nz/apartments/information.html

quebec

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Ultimate Geek
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Reply # 1108513 14-Aug-2014 16:13

livisun: I live in stonefields, really enjoy living here. It seems like they have information on their own loans on the site http://www.ilico.co.nz/apartments/information.html

That's not their loan. It's Welcome Home Loan for first home buyers only. Well, I need to make a decision as current place is too big and Mortgage too high for me to afford by myself. Had flatmates but can't be bothered anymore with that and all the cleaning a big property requires so plan to rent it out and move to a 1 or 2 bedroom place.

mattwnz

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Reply # 1108533 14-Aug-2014 16:59

Looking at their pricing page, they are pretty tiny, and work out at between 7-9k per sqm of internal space. WHen building a new house, you would be paying anywhere between 2-4k + per sqm excluding land. I think they are more of a lifestyle place to live, rather than in investment. In terms of what they look like, they look ok, but pretty bland looking. I would get a building report done too to look at the detailing.
Perosnally what I would do is do an excel spreadsheet of what other apartments have sold for, and the per sqm rate of them, and add in things like body corporate fees etc. It is worth it to know if you are getting a good deal or not. A financial expert friend always told me never buy an apartment, always buy a freehold house instead.

bfginger

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Reply # 1108678 14-Aug-2014 21:23

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11302448

There are many potential "surprises" with buying apartments.