City Sales Investment
Auckland housing investment vehicle
City Sales Investment
Martin Dunn of City Sales wants more New Zealander’s to invest now for their future, launches City Sales Investment to act on an investor’s behalf
A new investment vehicle is being launched today by Auckland property figure Martin Dunn, which hopes to entice more New Zealanders to invest now for their future in what he calls a “sensible, understandable and proven investment opportunity”.
City Sales Investment will act as a buyer’s agent by investing in selected Auckland residential houses for both growth and rental income. It will act on an investor’s behalf, covering the research, sourcing, evaluation, negotiation, purchase and management of what it considers to be prudent investment opportunities in Auckland.
The company’s marketing includes bespoke research and statistics from Quotable Value NZ which reveal the target investment has doubled in value, tax free, every eight to nine years since 1982.
Dunn says “I’m expecting that New Zealanders will shake off their reticence towards investing when they see a vehicle they can actually understand and believe in. Our clients will range from people who need education on investing and the Auckland housing market, to experienced investors who would like to be a little less hands on with the process and of course those who live outside of Auckland as they particularly struggle with area knowledge and property visits.”
He admits that not everybody will be happy with the launch, “As well as educating people on what to buy, we’ll be educating on what to steer clear of, it’s likely to make us unpopular with some but it’s incredibly important information to an investor”.
And he holds no bars, his registration package states several suburbs of Auckland where he deems “complete culture change impossible”. He extends his warning to new builds and types of houses, including plaster homes “Even if certified as sound, homes containing plaster exteriors will not be bought (unjust as it is for their owners). The fact is that all plaster homes are tarnished with the leaky home syndrome fear and thus permanently tainted.”
Salient pointers City Sales Investment relies on include Auckland’s much publicised shortage of housing, the fact the city is geographically constricted by the Waitemata and Manukau harbours, making central land increasingly sought after, and strong immigration continuing to fuel demand.
“The Council told us in 2012 that Auckland needs at least another 400,000 dwellings within the next 30 years - we don’t even have the tradespeople to rebuild Christchurch. Add to that the Auckland Council Chief Economist told us last year that Auckland is adding a person to its population every 19 minutes – it’s clear housing demand is not a boom or bubble”.
“Of particular interest to us is the effect of both culture change and infrastructure change in the suburbs. The western rail corridor, now two tracks, is becoming electrified and revamped, new ferry services now connect parts of the North Shore to the CBD, once sleepy suburbs like Point Chevalier are being rejuvenated and the Auckland retail and hospitality scenes are gaining momentum, putting areas like Mt Wellington and New Lynn on the map. We see Auckland morphing quickly into an edgy, expensive and very different South Pacific city, quite unique as compared to its Australian counterparts.”
Dunn himself firmly believes that New Zealanders aren’t doing enough when it comes to investing in their future as they still don’t trust the share market and finance company directors are largely still in jail.
“A New Zealander is currently eligible to receive just under $367 per week upon reaching 65 years old, that’s about enough for a tank of gas and a week’s groceries, with a little left over to cover bills. We need to take responsibility for our own retirement years - but people are understandably untrusting. We aim to alleviate these trust issues by educating people on a subject they are already comfortable with.”
Units, particularly on Auckland’s North Shore are being offered alongside the recommended investment of standalone houses. “Units offer a higher return than houses but a lower capital gain. Many investors prefer units as the quantum involved is lower and they are easier to cash in should your situation change”. Apartments of course are Dunn’s specialty market but he attests he will only act as a vendor’s agent when selling his own apartment listings.
Martin Dunn’s experience spans 30 years in Auckland Real Estate. He is a past Vice President of the Real Estate Institute of New Zealand and known Owner and Director of City Sales Ltd, a leading apartment broker in Auckland.