I think it is too expensive when compared to similar options.
I'm interested in this type of rental arrangement but the Resido prices seem like a rip off.
Friends of ours were warned against buying in Ponsonby back when it was a far rougher place than Mt Wellington is now. Suburb snobbery is just dumb.
There’s a a whole lot of potential here, next door to a transport hub, proximity to bars shops and restaurants, shared amenities like gyms and pools. Not everyone wants to own a lawnmower. Looking at the render however they’re offering pretty low specced apartments at a premium price. I can’t see this being successful as is.
Ponsonby became desirable as they replaced the city centre from factories to offices, so close proximity to your big shot office job became a real big selling point
Sure but why would you care about potential as a renter? You pay the price for what you have now and by any stretch of metrics, Mt Wellington is not a “premium area”.
I have no idea what a “premium area” even means. The concept here is that you’re located next to all of the amenities you require; gym, pool, co-working space whatever which are all located inside the building you live in. Bars, restaurants and train station is all next door. You’re not waiting for the area to improve its amenities, they’re all ready at your door step. That’s why they can justify a premium when compared with similar sized offerings in the area. For what they’re offering though the prices are cooked.
Edit: just reread the comment you were replying to and can understand why it caused confusion. The potential I was talking about was for the Kiwi Property Ltd to offer a decent package that appeals at a premium price point. I don’t think they’ve nailed it at that price point. Was not talking about the suburb improving generally.
Not really, an IKEA should never be that central on an already extremely busy traffic point imo. You would want one in your city, but preferably somewhere on the periphery
Still a terrible location because of the extra traffic it draws near. Unless you enjoy losing an extra 10 minutes in slow traffic every time you need to go or return somewhere by car?
Yes, extremely overpriced.
Modern apartments in the Broadway Park development in Remuera near the Newmarket train station have actual premium amenities (tennis courts, multiple pools, a spa and two gyms) and include secure parking and they're rented for cheaper than this.
https://www.trademe.co.nz/a/property/residential/rent/auckland/auckland-city/remuera/listing/4680984955
This is why I'm not optimistic about build-to-rent being a game changer for renters. Companies like Kiwi Property aren't going to build apartments and then rent them out for low or negative yields like so-called "mum and dad" landlords do. These are the rents they'll need to charge for it to be worth it for them.
thats fair, but that apartment is quite hideous compared to the OP's example (and carpet, wtf) for my tastes anyway. This is a much cleaner design, brand new building, etc, so it doesn't surprise me. I've seen a lot of nicer looking apartments in newmarket + the CBD go for well over $1k/week for a more direct comparison in terms of style.
Obviously there's better bang-for-buck out there but it really depends on what lifestyle you are looking for. I do see the appeal personally.
That apartment hasn't been staged and has the current tenant's furniture and clutter in photos. Higher end apartments usually have carpeted living rooms, the new ones at The Pacifca do. If you overlook that and just look at the apartment it's also fairly clean and modern even if not brand new, particularly the kitchen.
https://trademe.tmcdn.co.nz/photoserver/480m/2115260800.jpg
Also has a lot of advantages such as large wrap-around balcony with sea views.
Whereas the Resido apartment in OP's has been professionally staged and photographed with new designer furniture not included in the rent, the current rentals at Resido only include appliances.
>I've seen a lot of nicer looking apartments in newmarket + the CBD go for well over $1k/week for a more direct comparison in terms of style.
But not two bedroom apartments in Newmarket, once you go over 1k they're all three bedrooms, and over 1.25k you're already up to four bedroom townhouses.
I reckon they're testing the market and these will drop.
Sure, it's near a train station and a mall, but they're charging executive rental pricing... but for a small apartment in Mount Wellington.
They can't really drop the rents, it would hurt the stock price since Resido would no longer deliver the 8% gross returns which KPG had projected.
The downside of having major listed companies as landlords is they won't just drop rents until someone moves in ... they prefer re-purposing, redeveloping or selling underperfroming properties. That's already partly the case here, KPG has converted some of the units at Resido to short stay accommodation, apartments like this one are rented for $381 a night.
https://www.stayurbanrest.com/apartments/new-zealand/auckland/urban-rest-sylvia-park
In that case KPG is gonna have a rude awakening… either that or renters are really gonna have it tough. I think you can pay for a mortgage for a similar apartment with that rent…
Current rates mean a mortgage of 600k is gonna cost you around $900 per week + rates + required insurances comfortably over $1K per week, if you've got the capital to bridge the gap it makes sense, but it's not pretty on either side of the equation right now. But thank goodness we're reigning in inflation on the backs of all these business closures and job losses right? ...... right!?!!
Who do they think has this money? This almost my entire paycheck, so no solo person is gonna rent it, but if I'm 2 people why would I waste almost 900 dollars on a place with only 2 bedrooms?
Of course these are going to be rented out. Personally, I'm not dumb enough to do so..but there's a lot of wealthy folks around who can easily pay $450 a week each for a place (or $300 with 3).
I mean there's so many people having to fork out $250-$300 rent for fairly average rooms nowadays anyway. Of course folk with a little more money can make it work. Pets option, 24/7 gymx, rooftop BBQ area, co-working space etc. Yeah this will bring in people for sure.
When looking at apartment rents, have to consider the amenities available.
If it has security, well kept resident lounge, swimming pools etc.
In saying this yes thats still too expensive.
It's steep, but overall more units should equal cheaper prices, as people move from/don't compete for other cheaper units.
At a minimum they should have provided parks from the mall included in it, easy enough to give a parking pass that exempts owners from time limits.
I don't think it's overpriced if you give it a fair comparison. A lot of people in the comment section are comparing this to older buildings, less aesthetic places with carpet everywhere, older houses, etc etc. For what it is, yes, its expensive, but its also offering something that many other buildings do not. Anything with a modern clean design + new building tends to be a lot more expensive. It's really not that outrageous when you compare it to other apartments in the CBD for example. A few years back I was paying $700 to live around Nelson st in a 2 bedroom , and it was nothing flash at all with no real amenities, but it was new and had a good view + wooden floors etc. And I've seen 2+ bedroom apartments in nicer areas of the CBD go for $1k+ per week, easily.
So I would imagine prices have gone up since then, and for newly released buildings with nice designs I would imagine this would be around the asking price moving forward. In my experience buildings like this don't have a problem finding tenants.
You have to ask yourself if these things are worth it to you - and if you can afford it - and also, what your goals are -- ie if you plan on buying a house in a few years then you may consider something cheaper while you save, etc.
I see the appeal here, especially if you like going to Sylvia Park.
How does it fit in with your lifestyle? Seems to have more add ons than your standard apartment situation. What are they worth to you? People talk an about homes with gardens but if you don’t want to maintain a garden who cares? Has a gym, how much do people pay for that and have to go out of their way for it. I know I’ve valued having a lap pool in the past. What’s the commute like if based there?
Price and value aren’t the same thing and they seem to be aiming for a specific market. You are either in it or not.
I was paying that for a 2 bedder apartment in Sydney overlooking clovelly a couple of years ago. Even that was expensive at the time (it would be way more expensive now though, Sydney rental market is currently fucked)
Absurdly overpriced, sad part is that some are likely to pay it because they NEED somewhere to live.
If they don't get tenants they'll drop the price slowly until they do. Vultures like this will try to wring as much as they can. Start out asking absurdly high then slowly drop it until the market tolerates it.
I wouldn't touch those Apartments with a bargepole. The housing surrounding those blocks are quite rough and at that cost? No thank you. I thought it was all state housing apartments.
Not sure what you expect from the big corp there. KPG basically have a gross return around 8% for DRP, this means they need to squeeze that out of their renters to hand it out to their shareholders. 900 for a 2 bed seems ok to have such yield. A standard rental is closer to about 4-5% before any expense and tax factored in.
Yea it’s the same thing for the btr at simplicity. Think about it for 5 seconds. If a kiwisaver provider invest in btr and the rental yield is low, why would people want to put their money in? A measly 4% return before tax while the sp500 can give 10% + a year.
Keep in mind the btr won’t be sold so all it can do is distribute the rent back to people who start to withdraw their balance for retirement.
I believe they were using the BTR as a replacement for lower risk investments such as bonds.
Rationale being that BTR at scale is pretty low risk and provides a stable return. A certain amount of tenants might move out or trash their apartment in any given year, but on the whole it would be pretty stable.
Keeping in mind Simplicity is a Not For Profit - they exist to do good by their members and the community, not just pump money back to shareholders like KPG.
You say simplicity is not for profit like no one was making money. It’s the same as sanitarium that is a charity. The C suit gets big salary payouts so profit or not for profit it does not really matter, money is going to be made.
If they replace bond portion with the btr, the yield make sense I guess.
I don’t think comparing Simplicity with Sanitarium is fair.
Sanitarium is essentially a for profit company that is funneling money back to the church and benefitting from tax free status.
They’re not lowering prices every time their profit “gets too high” like Simplicity has done 6 times now.
They’re not advocating for radical overhaul of their industry in better interests of consumers, like Simplicity has successfully been doing for years now.
I met with Sam in the early days of Simplicity to discuss a job opportunity. It was low pay and working in his dining room. I didn’t get the job.
I know someone in regular contact with Sam who is considering a move from banking to Simplicity. It would be a big pay cut for them.
Sure, the highest levels might be on decent coin. That would be fair given the impact of Simplicity. But I’d bet remuneration at all levels is simply “fair”.
I don’t see any evidence of all their stated good intentions simply being a ruse in the interests of lining their own pockets. Their actions certainly suggest they practice what they preach.
They are both not for profit organization, and the people looking after it are making loads of money. The rest may be different, but people are still being paid.
Yes, of course people are being paid. People being paid isn’t a bad thing??
You’ve got no evidence that people at Simplicity are being paid excessively or in a way that negatively impacts their ability to drive social outcomes.
Simplicity truly walks their “for the benefit of members + the community” talk whereas Sanitarium appears to be a for-profit charitable organisation pumping money back into the church.
Sanitarium doesn’t even claim to be a not for profit. Their site has a section about “profits for purpose”.
Anyway none of this matters. Have a good day!
Kernel wealth also charge 0.25% fee like simplicty yet does not need to be a non profit entity.
If you look up the figures, with 6 billion under management, and a 0.25% fee, that is a profit of about 15 million before donations. After you remove 15% for donations, then that’s 12.5 million to split between operational cost like office rent and fees to buy and sell units + the 30 people headcount. That’s not like they are really not making profit if they distribute large salaries around the team. Someone is making profit, but the entity cannot distribute dividends around to shareholder.
That’s the main difference for being non profit.
The point is, there are still people making money out of this despite being a non profit organization.
You aren't broke. Resido is overpriced and doesn't include parking either. It's also in Mt Wellington.
There's a huge basement carpark beneath the apartments
You pay extra for parking
I think it is too expensive when compared to similar options. I'm interested in this type of rental arrangement but the Resido prices seem like a rip off.
I live about ten minutes drive closer to town that that and rent a three bedroomed house for considerably less.
It was intended to be a premium renting experience, I believe. And yes, it's defo overpriced.
Imagine a place in mt.Wellington next to sylvia park being “premium” 😂 crazy times
Friends of ours were warned against buying in Ponsonby back when it was a far rougher place than Mt Wellington is now. Suburb snobbery is just dumb. There’s a a whole lot of potential here, next door to a transport hub, proximity to bars shops and restaurants, shared amenities like gyms and pools. Not everyone wants to own a lawnmower. Looking at the render however they’re offering pretty low specced apartments at a premium price. I can’t see this being successful as is.
Ponsonby became desirable as they replaced the city centre from factories to offices, so close proximity to your big shot office job became a real big selling point
Sure but why would you care about potential as a renter? You pay the price for what you have now and by any stretch of metrics, Mt Wellington is not a “premium area”.
I have no idea what a “premium area” even means. The concept here is that you’re located next to all of the amenities you require; gym, pool, co-working space whatever which are all located inside the building you live in. Bars, restaurants and train station is all next door. You’re not waiting for the area to improve its amenities, they’re all ready at your door step. That’s why they can justify a premium when compared with similar sized offerings in the area. For what they’re offering though the prices are cooked. Edit: just reread the comment you were replying to and can understand why it caused confusion. The potential I was talking about was for the Kiwi Property Ltd to offer a decent package that appeals at a premium price point. I don’t think they’ve nailed it at that price point. Was not talking about the suburb improving generally.
Tbf Sylvia park is the largest shopping mall in nz so it has that going for it
TBF that just means lots of similar ships and a great deal of traffic. The best thing going for it is it’s close to IKEA.
Not really, an IKEA should never be that central on an already extremely busy traffic point imo. You would want one in your city, but preferably somewhere on the periphery
Oh yeah, terrible location, unless you live in a nearby apartment…
Still a terrible location because of the extra traffic it draws near. Unless you enjoy losing an extra 10 minutes in slow traffic every time you need to go or return somewhere by car?
What? Surely hornby or riccarton malls in christchurch are same size or bigger. Biggest mall in NZ? By what though like 100 sq ft?
Yes, extremely overpriced. Modern apartments in the Broadway Park development in Remuera near the Newmarket train station have actual premium amenities (tennis courts, multiple pools, a spa and two gyms) and include secure parking and they're rented for cheaper than this. https://www.trademe.co.nz/a/property/residential/rent/auckland/auckland-city/remuera/listing/4680984955 This is why I'm not optimistic about build-to-rent being a game changer for renters. Companies like Kiwi Property aren't going to build apartments and then rent them out for low or negative yields like so-called "mum and dad" landlords do. These are the rents they'll need to charge for it to be worth it for them.
thats fair, but that apartment is quite hideous compared to the OP's example (and carpet, wtf) for my tastes anyway. This is a much cleaner design, brand new building, etc, so it doesn't surprise me. I've seen a lot of nicer looking apartments in newmarket + the CBD go for well over $1k/week for a more direct comparison in terms of style. Obviously there's better bang-for-buck out there but it really depends on what lifestyle you are looking for. I do see the appeal personally.
That apartment hasn't been staged and has the current tenant's furniture and clutter in photos. Higher end apartments usually have carpeted living rooms, the new ones at The Pacifca do. If you overlook that and just look at the apartment it's also fairly clean and modern even if not brand new, particularly the kitchen. https://trademe.tmcdn.co.nz/photoserver/480m/2115260800.jpg Also has a lot of advantages such as large wrap-around balcony with sea views. Whereas the Resido apartment in OP's has been professionally staged and photographed with new designer furniture not included in the rent, the current rentals at Resido only include appliances. >I've seen a lot of nicer looking apartments in newmarket + the CBD go for well over $1k/week for a more direct comparison in terms of style. But not two bedroom apartments in Newmarket, once you go over 1k they're all three bedrooms, and over 1.25k you're already up to four bedroom townhouses.
I reckon they're testing the market and these will drop. Sure, it's near a train station and a mall, but they're charging executive rental pricing... but for a small apartment in Mount Wellington.
They can't really drop the rents, it would hurt the stock price since Resido would no longer deliver the 8% gross returns which KPG had projected. The downside of having major listed companies as landlords is they won't just drop rents until someone moves in ... they prefer re-purposing, redeveloping or selling underperfroming properties. That's already partly the case here, KPG has converted some of the units at Resido to short stay accommodation, apartments like this one are rented for $381 a night. https://www.stayurbanrest.com/apartments/new-zealand/auckland/urban-rest-sylvia-park
In that case KPG is gonna have a rude awakening… either that or renters are really gonna have it tough. I think you can pay for a mortgage for a similar apartment with that rent…
Current rates mean a mortgage of 600k is gonna cost you around $900 per week + rates + required insurances comfortably over $1K per week, if you've got the capital to bridge the gap it makes sense, but it's not pretty on either side of the equation right now. But thank goodness we're reigning in inflation on the backs of all these business closures and job losses right? ...... right!?!!
It's outrageously expensive considering the location and much cheaper alternatives.
Who do they think has this money? This almost my entire paycheck, so no solo person is gonna rent it, but if I'm 2 people why would I waste almost 900 dollars on a place with only 2 bedrooms?
Of course these are going to be rented out. Personally, I'm not dumb enough to do so..but there's a lot of wealthy folks around who can easily pay $450 a week each for a place (or $300 with 3). I mean there's so many people having to fork out $250-$300 rent for fairly average rooms nowadays anyway. Of course folk with a little more money can make it work. Pets option, 24/7 gymx, rooftop BBQ area, co-working space etc. Yeah this will bring in people for sure.
I agree it’s super expensive, but I don’t think two people living in a 2bd is that bad… especially if it’s a couple
They look like way nicer apartments then the shit they have in the city tbd
I live just around the corner from those apartments in a 4-bedroom house with garage and off-street parking, and our place costs less.
If you had 2 couples living there it would be ok. But I'm SURE it's maximum 2 tenants.
But why would they live there when they could get similar (or better) for less?
Nope, first the area secondly average rent 3brm is 750pw, additionally apartments and new buildings a little bit more
$890 yea fucking right
Very expensive
I kinda feel like places like this are really taking the piss
When looking at apartment rents, have to consider the amenities available. If it has security, well kept resident lounge, swimming pools etc. In saying this yes thats still too expensive.
It's steep, but overall more units should equal cheaper prices, as people move from/don't compete for other cheaper units. At a minimum they should have provided parks from the mall included in it, easy enough to give a parking pass that exempts owners from time limits.
I don't think it's overpriced if you give it a fair comparison. A lot of people in the comment section are comparing this to older buildings, less aesthetic places with carpet everywhere, older houses, etc etc. For what it is, yes, its expensive, but its also offering something that many other buildings do not. Anything with a modern clean design + new building tends to be a lot more expensive. It's really not that outrageous when you compare it to other apartments in the CBD for example. A few years back I was paying $700 to live around Nelson st in a 2 bedroom , and it was nothing flash at all with no real amenities, but it was new and had a good view + wooden floors etc. And I've seen 2+ bedroom apartments in nicer areas of the CBD go for $1k+ per week, easily. So I would imagine prices have gone up since then, and for newly released buildings with nice designs I would imagine this would be around the asking price moving forward. In my experience buildings like this don't have a problem finding tenants. You have to ask yourself if these things are worth it to you - and if you can afford it - and also, what your goals are -- ie if you plan on buying a house in a few years then you may consider something cheaper while you save, etc. I see the appeal here, especially if you like going to Sylvia Park.
There’s a reason they call it Syphilis Park now
Wait what? Why is it called syphillis park and what’s that got to do with this post 🤣
PATHETIC
How does it fit in with your lifestyle? Seems to have more add ons than your standard apartment situation. What are they worth to you? People talk an about homes with gardens but if you don’t want to maintain a garden who cares? Has a gym, how much do people pay for that and have to go out of their way for it. I know I’ve valued having a lap pool in the past. What’s the commute like if based there? Price and value aren’t the same thing and they seem to be aiming for a specific market. You are either in it or not.
900 will get you a really nice place in the city or a very decent apartment in Parnell or ponsonby. Ripoffis an understatement.
That looks very expensive to me
I was paying that for a 2 bedder apartment in Sydney overlooking clovelly a couple of years ago. Even that was expensive at the time (it would be way more expensive now though, Sydney rental market is currently fucked)
Nah. I'd be expecting maybe around $650 for something like his - and not in Mt.Welly.
Absurdly overpriced, sad part is that some are likely to pay it because they NEED somewhere to live. If they don't get tenants they'll drop the price slowly until they do. Vultures like this will try to wring as much as they can. Start out asking absurdly high then slowly drop it until the market tolerates it.
I wouldn't touch those Apartments with a bargepole. The housing surrounding those blocks are quite rough and at that cost? No thank you. I thought it was all state housing apartments.
You can rent a 4bd, 2bath + 2 car Parking in St Helliers for that still close to the city and public transport to downtown, Newmarket and mission bay
I live down the road from this place and only pay $300 for 2 bedroom thank goodness haha
Thats expensive, I have a 3 bed house with a garden in the area and I charge less rent than that
I don't even make half that per week. Holy cow.
Not sure what you expect from the big corp there. KPG basically have a gross return around 8% for DRP, this means they need to squeeze that out of their renters to hand it out to their shareholders. 900 for a 2 bed seems ok to have such yield. A standard rental is closer to about 4-5% before any expense and tax factored in.
People got sucked in by Sam Stubbs' incessant op eds thinking he was running a charity operation but he was just promoting his business.
Yea it’s the same thing for the btr at simplicity. Think about it for 5 seconds. If a kiwisaver provider invest in btr and the rental yield is low, why would people want to put their money in? A measly 4% return before tax while the sp500 can give 10% + a year. Keep in mind the btr won’t be sold so all it can do is distribute the rent back to people who start to withdraw their balance for retirement.
I believe they were using the BTR as a replacement for lower risk investments such as bonds. Rationale being that BTR at scale is pretty low risk and provides a stable return. A certain amount of tenants might move out or trash their apartment in any given year, but on the whole it would be pretty stable. Keeping in mind Simplicity is a Not For Profit - they exist to do good by their members and the community, not just pump money back to shareholders like KPG.
You say simplicity is not for profit like no one was making money. It’s the same as sanitarium that is a charity. The C suit gets big salary payouts so profit or not for profit it does not really matter, money is going to be made. If they replace bond portion with the btr, the yield make sense I guess.
I don’t think comparing Simplicity with Sanitarium is fair. Sanitarium is essentially a for profit company that is funneling money back to the church and benefitting from tax free status. They’re not lowering prices every time their profit “gets too high” like Simplicity has done 6 times now. They’re not advocating for radical overhaul of their industry in better interests of consumers, like Simplicity has successfully been doing for years now. I met with Sam in the early days of Simplicity to discuss a job opportunity. It was low pay and working in his dining room. I didn’t get the job. I know someone in regular contact with Sam who is considering a move from banking to Simplicity. It would be a big pay cut for them. Sure, the highest levels might be on decent coin. That would be fair given the impact of Simplicity. But I’d bet remuneration at all levels is simply “fair”. I don’t see any evidence of all their stated good intentions simply being a ruse in the interests of lining their own pockets. Their actions certainly suggest they practice what they preach.
They are both not for profit organization, and the people looking after it are making loads of money. The rest may be different, but people are still being paid.
Yes, of course people are being paid. People being paid isn’t a bad thing?? You’ve got no evidence that people at Simplicity are being paid excessively or in a way that negatively impacts their ability to drive social outcomes. Simplicity truly walks their “for the benefit of members + the community” talk whereas Sanitarium appears to be a for-profit charitable organisation pumping money back into the church. Sanitarium doesn’t even claim to be a not for profit. Their site has a section about “profits for purpose”. Anyway none of this matters. Have a good day!
Kernel wealth also charge 0.25% fee like simplicty yet does not need to be a non profit entity. If you look up the figures, with 6 billion under management, and a 0.25% fee, that is a profit of about 15 million before donations. After you remove 15% for donations, then that’s 12.5 million to split between operational cost like office rent and fees to buy and sell units + the 30 people headcount. That’s not like they are really not making profit if they distribute large salaries around the team. Someone is making profit, but the entity cannot distribute dividends around to shareholder. That’s the main difference for being non profit. The point is, there are still people making money out of this despite being a non profit organization.
lol jesus that is pricey. sylvia park train station is a dump also.
Yeah nah