Ki­wis han­ker af­ter sum­mer place

Waikato Times - - Business - Su­san Ed­munds su­san.ed­[email protected]

If a trip to the beach leaves you han­ker­ing for a hol­i­day home of your own this sum­mer, good news: You could buy one for as lit­tle as $110 a week. But here’s the bad news: It might take you a while to drive there.

New data from homes.co.nz has re­vealed the me­dian price of houses in hol­i­day hotspots around the coun­try, and what an in­tere­stonly mort­gage would cost to ser­vice for buy­ers with a 20 per cent deposit and an in­ter­est rate of 4 per cent.

It shows the cheap­est hol­i­day homes, un­sur­pris­ingly, tend to be in more re­mote ar­eas.

Man­gakino came in top of the af­ford­abil­ity ta­ble. It is a lake­side spot about 100km south of Hamilton. If you want a sum­mer of bush walk­ing, hik­ing, fish­ing, boat­ing and bike rid­ing there, you will pay a me­dian sales price of $178,000. That mort­gage would cost $110 a week to ser­vice.

Homes.co.nz data is col­lected from coun­cil sales records.

The next-cheap­est baches are on Ste­wart Is­land, with a me­dian homes.co.nz es­ti­mate of $235,000 and a mort­gage of $140 a week.

Fox­ton Beach was third at $304,000, then Ahipara at $308,000 and Gis­borne at $323,000.

At the other end of the scale, Ar­row­town is the most ex­pen­sive hol­i­day spot in which to buy a house. The me­dian price of $1.12 mil­lion would leave you with a $690-a-week mort­gage.

Close be­hind is Wanaka at a me­dian $1.07m. Waihi Beach was a dis­tant third at $755,000.

Could you Airbnb it?

An in­creas­ing num­ber of hol­i­day home owners are open­ing their prop­er­ties to ten­ants as short-term rentals to help cover their costs.

The homes.co.nz data also looked at how many nights you would need to rent a place to make it pay for it­self, based on in­dica­tive nightly rents from Airbnb.

In three parts of the coun­try, you could rent out your prop­erty for a month or less and cover the cost of the 80 per cent mort­gage for a whole year.

In Pai­hia, with a me­dian homes.co.nz es­ti­mate of $464,000 and an es­ti­mated rental per night of $500, it would take 30 nights to cover a year’s worth of the $290-a-week mort­gage.

In Gis­borne you’d have cov­ered your costs in the same amount of time, but on Ste­wart Is­land you would only need 25 nights and, in Man­gakino, 28.

Chief data sci­en­tist Tom Lin­tern said that made finding per­ma­nent ten­ants less ap­peal­ing in those ar­eas and could con­trib­ute to less rental stock be­ing avail­able. A sum­mer place, in Man­gakino ... in Ar­row­town

Get­ting a mort­gage

The other rea­son that num­ber mat­ters is the bank.

Un­der the loan-to-value re­stric­tions, banks have to treat you as an in­vestor, and re­quire a deposit of 30 per cent, if you rent out a prop­erty for 42 nights of the year or more. Five re­gions came in un­der that thresh­hold.

If you need the rental in­come to af­ford the house at all, that could also push you into in­vestor ter­ri­tory in the bank’s eyes.

Bro­ker Glen McLeod said it was more dif­fi­cult to get a loan for a bach than it used to be, but not im­pos­si­ble.

‘‘We have had large num­bers of clients who’ve ap­plied di­rect and been told ‘no’ come to us and we’ve turned it around and are do­ing them.’’

He said it was of­ten a case of how the deal was pre­sented to the lender.

Cap­i­tal gains

The cheap­est hol­i­day home hotspots are also ex­pe­ri­enc­ing some of the strong­est price growth.

Man­gakino val­ues are up 16.2 per cent year-on-year.

The fastest bach price rises in the past year have been in Raglan, where val­ues are up 17.1 per cent. That’s fol­lowed by Twizel at

16.8 per cent.

‘‘We are see­ing an­nual price growth of more than 15 per cent in many hol­i­day hotspots, in­di­cat­ing that Ki­wis are still search­ing for their dream bach,’’ Lin­tern said.

Bindi Nor­well, chief ex­ec­u­tive of the Real Es­tate In­sti­tute, said she ex­pected strong de­mand for hol­i­day houses this sum­mer.

‘‘As we’ve seen for some years now, prices in hol­i­day hotspots con­tinue to in­crease in value,’’ she said.

‘‘Real es­tate agents in coastal towns are brac­ing them­selves for a plethora of inquiries over the Christ­mas/New Year pe­riod.

‘‘Our fig­ures demon­strate signs of a buoy­ant mar­ket in some of the top hol­i­day des­ti­na­tions across the length and breadth of New Zealand.’’

Across the coun­try Homes.co.nz re­ports Auck­land val­ues down 1.2 per cent, Welling­ton’s up 8.5 per cent and Christchurch’s down

0.5 per cent. Dunedin is still the stand­out of the main cen­tres, up 11.8 per cent.

Auck­land’s first-home buyer price, which as­sumes that first­time buy­ers pur­chase a prop­erty cheaper than 75 per cent of those on the mar­ket, was down 0.2 per cent.

STUFF

Lake­side Man­gakino, south of Hamilton, of­fers bush walks, fish­ing and bike rid­ing.

ABI­GAIL DOUGHERTY/ STUFF

Cal­i­for­ni­abased Lime brought its scoot­ers to Auck­land and Christchurch in Oc­to­ber, and plans to ex­pand.

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