Auction – there it is, out in the open! Love ‘em or hate ‘em there is no doubt that auction is a common marketing strategy in Christchurch.
I make no secret of being a sales person who advocates auction to many of my clients, however, I do believe that it is not suitable for everyone and may not be the best solution in all market conditions. But this post is not about discussing the pros and cons.
Anyone who has regularly read my personal blog will know that I think that following the weekly results of auctions can provide a timely snapshot of current market conditions. So today at the Holmwood Auction Rooms – 12 auctions called and only 2 sold under the hammer. Not as bad as that in reality, I have a multi-offer to deal with tomorrow on my auction that was passed and there was bidding on about half of the auctions – and in at least 1 case it could be argued that the owner had an opportunity to sell but chose not to!
But that said, I think what can definitely be gleamed from our results today and those in other rooms around Christchurch, is that buyers have the upper hand right now. If you want to buy a home that is up for auction you are probably best served attending and waiting – if you don’t have to bid, why would you? Bide your time and make an offer afterwards – certainly as a strategy it is hard to argue with right now.
This begs the question of why the market is how it is. A number of factors spring to mind - many investors are choosing to wait and see exactly what changes are coming in the budget, there has been a strong seasonal increase in listings and I detect a tightening of financial conditions – anecdotal evidence from clients suggests banks are less keen to lend than they were at the end of last year.
Will these conditions last? Obviously that is the $64,000 question and one I wish I knew the answer to with absolute certainty! I suspect the market will improve into and through winter as the excess stock is mopped up, and will again be swamped in late spring / summer. I also think lending conditions should ease in the new financial year. So what would I be doing if I wanted to sell – I think pricing competitively is a great strategy at the moment – buyers hate the lack of prices with auctions, and well priced property will always catch the eye and attract offers.
March 04 2010 | Buyers and Home Sellers and Buyers Guides and Sellers and The Market | No Comments »
Just a quick post to introduce myself as a new author for this blog. No secrets, I am a real estate sales consultant – but I hope one of the more enlightened breed.
By that I mean that I recognize that the real estate industry is going through, what I beleive is a fundamental change in how business is conducted – and that is online. Not in terms of electronic contracts (though I am sure that will happen) but in terms of information sought and provided.
I hope that I will provide timely, useful and witty insights into the local market and hope that this blog grows into a resource that people can trust and use regularly.
Tim
March 03 2010 | Uncategorized | 3 Comments »
Blog Authors Wanted I am currently in the process of looking for blog authors to contribute to Christchurch Real Estate.
If you are based in Christchurch and would like to have more promotion and exposure online to a very large market I would love to hear from you. I am running out of time and resources to keep writing interesting topics on this blog and this is not what I want for this site. I am looking for 2 or 3 more authors who want to help create a fantastic Real Estate blog site for the people of Christchurch, New Zealand. If you’re an agent, sales person, mortgage broker or investor/expert and want further exposure online I would love to hear from you.
Currently this site gets approx 200 unique visitors per day and approx 700 page impressions per day. This is huge exposure that you as an active player in the Real Estate industry could give you a great heads up. Before the recent change in the domain names this site had received over 150,000 unique views with over 400,000 hits. It has been running for just on two years and its about time to make it a powerful resource for people searching Real Estate especially here in Christchurch.
Over the next few weeks I will be slightly changing the look of this blog so that it better reflects the intentions I have as a Christchurch Real Estate Blog which will benefit the general user who comes to this site for information or for you as a potential author of the site
If you have a general interest then please send me an email to deon@deonswiggs.com with your blog / website for me to look over. If you do not have a website / blog, then do not worry – if you are a good writer and it shows then just email me with some information about yourself. I am looking for 2-3 authors to contribute. I can guarantee that by even just submitting a few articles on here about your particular field your local exposure will be greatly increased.
Thank you for your interest and I look forward to hearing from you.
February 27 2010 | Uncategorized | No Comments »
Here is an awesome blog post from propertyadguru
The benefits of agents running their own real estate blogs are many: they can position you as a local expert in your neighbourhood, enhance your credibility as a businessperson, and attract leads that might otherwise have overlooked you entirely.
At least, that’s the theory. In practice, an agent’s blog can have the opposite effect, driving away leads by presenting an image that’s far from professional. It’s an understandable by-product of the accessibility of blogging – everyone can do it, but not everyone can do it well.
So what are some of the pitfalls to avoid with your blog, and what are some attributes to aspire to? We don’t intend to name and shame, but after scouring the web for agent website examples, we have come up with a few hot tips:
The writing has to be up to scratch. You might be a wonderful communicator “in real life”, but the online environment is less forgiving, as typos and poor grammar sit around until you correct them. The trick is to write as if you were speaking to a friend, keeping your sentences as natural and conversational as possible.
Closely linked to the way you write is what you write about. And here’s where you ask that all-important question: who is my audience? Would potential customers really be interested in the latest industry news? Or would they be more attracted by content that discusses movements in the local community – new shops opening, business successes, perhaps even an interview with the local mayor or council member? Put yourself in your readers shoes and consider what you’d be searching for in your online home hunt.
Speaking of mayors, keep this in mind: politicising your content, while tempting, is a sure-fire way to alienate those readers who don’t see things your way. Of course, it makes sense to discuss local issues and the way government is addressing these, but by taking a hard-line stance you’re sure to upset someone, and that someone could potentially have been a new client.
The basics aren’t enough when it comes to blog design. Of course, not everyone can begin with a perfectly designed blog – at first a basic theme will probably have to do. But as time goes on, readers will expect improvements. A poll, more pictures, updated links, a few more pages – anything to make things more interesting for return visitors beyond the daily or weekly posts.
If you give up, take it offline, at least until you’re ready to re-start. If your blog is your only online presence, consider stripping it back to a basic contact and information page. Then, when you’re less run off your feet, bring back the posts. Nothing will bring doubt into the mind of a potential client more quickly than the top post being dated “September 4, 2008″.
Propertyad guru go further and state this interesting fact:
Track what’s working, and change things accordingly. There’s no point signing up for a web analytics service if all you do is paste in the code and forget about it. Figure out what kinds of posts draw in the most visitors, and what keeps people on your website for more than a few seconds. Your website’s click-stream – the way people move around the website – should also be something you’re familiar with. Using all this information to constantly modify the content on your blog is the key to gaining traffic.
Look at the search terms people are using to find you. Some results will be slightly off-the-wall, but in amongst those will be some gems that tell you exactly what your readers were hoping for when they clicked through to your blog. The next question you have to ask yourself is, did you deliver? If not, what can you add that might satisfy those readers next time?
Colour is important. It is easy to lose a lot of time playing around with themes and colour settings, but at the same time, poor choices here can drive people away. This is where honest feedback from friends and colleagues can go a long way, as well as a survey of your favourite blogs to see what works for them.
Explain who you are up front. Ideally, the description under your blog’s title will tell people who you are and what they can expect to find. Information in your sidebar should expand on this with facts about your business, location, and an option for people to contact you. The more you say here, the more likely people will be to think of this blog as an extension of a real-world business.
Try not to leave people hanging in your comments section. If your readers have a question, answer it. Even if someone else has jumped in while you’ve been away from the computer, take the time to acknowledge the question and throw in your two cents. This helps to remind people that there really is someone on the other side of the posts.
A great post that I think you should think more about. In my opinion going back to the fourth point bought up. The look of your blog. Have a look at my other blog and see if you can get your head around the concept. It looks different and can deliver some great information. Unfortunately this blog is boring and does not function very well. This I know has turned many people away but I want to improve it. Unfortunately I can not due to the limitations set out by the people who manage the host domain – correction also Wordpress MU is a little tough to 
Your blog should be interesting to the eye so that it captures the imagination of your reader, otherwise they will press the back button to the google results and look for something better. I am working on making this site better with better plugins and other themes so watch this space. we will make it happen with the help of the crew.
If you have any further comments let me know.
Deon
February 26 2010 | Uncategorized | 4 Comments »
This is an article that is something that will hopefully help you more understand why the dam interest rates go up or down, usually we only complain when they go up, as this directly costs us more money. Although written with a slight US feel, with the words federal, the principles are the same which is why i’d like to share this with you.
Mortgage rates are linked to the trends in financial markets and changes in economy. There are a number of factors that determine the home mortgage rates. The interest rates on home loans are affected by stocks, treasury notes and bonds, inflationary trends, actions of the federal government, international forces, etc. It is better to have an understanding of the changes that affect the loan rates before applying for a home loan.
Here are some of the factors that determine the interest rates on mortgages:
- Federal Reserve discount rate: Federal Reserve Discount Rate is the cost that banks and other financial institutions are charged for borrowing money from Federal Reserve Banks. When Federal Reserve Banks increase the discount rate, it becomes expensive for investors to obtain money and hence they are not able to borrow much. As a result of this, the investors/lenders (banks and financial institutions) increase the rates they charge their customers for home loans.
- Inflationary trends: Inflation reduces the purchase power of money and so lenders increase the interest rates on home loans during inflation. On the other hand, deflation tends to reduce the interest rates.
- Stock market: The stock market plays an important role in determining the home mortgage rates. The stock market fluctuations affect the credit supply in financial markets and this in turn affects the home loan rates. As stocks go up, more money is invested in stocks. More investment may lead to less money invested on mortgage backed securities and this would increase interest rates on mortgages.
- Treasury notes and bonds: The government often sells mortgages (packaged together with treasury notes and bonds) to investors. These are issued in financial markets as mortgage-backed securities. A higher demand for treasury bonds lowers the home loan rates.
There are certain other factors that affect the home loan rates. If international/ foreign investors put in money in the domestic financial market, the rate of interest on mortgages decline. Major fluctuations of dollar in foreign exchange market also affect the home mortgage rates.
February 24 2010 | Uncategorized | No Comments »
There is a nice trend the past few years to buy an existing home and renovate it to either make a capital gain or have a nice home to live in. However I have a feeling that we are soon going to see a shift in attitude and see people buying land in new residential areas and build. This is already done now but I think it will take off.
When buying residential land, you must ensure that the location is not only affordable for your budget but it is also liveable and have a nice environment for your needs. To determine this you need to find out about the current council zoning and their future plans if any are made up. This can determine very quickly whether the property has future potential. There is nothing worse than building a home and finding it worthless because it’s on the edge of the new industrial zone of town, or the new motorway.
Here are some things to keep in mind:
section
Environment and Location.
You must consider the overall standard of other properties that are in the area and think are the buildings you plan to build in cue of the one you’re planning. For example if you are planning to build a new home in an area where there are mainly older homes this may adversely affect the future investment possibilities. It is always tempting to buy a modest property in a lower socio economic area but take a step back and think about what are your needs to the property.
Site and Services.
When looking at your piece of land ensure the site lends itself to accessibility of the services and it has a range of housing design options available. For example if you buy on a steep section your building costs go up and the type of property you can build goes down. The things you need to consider are excavation, engineering, foundations, drainage, transport, landscaping and so many more. Other things is to make sure sewer, water, gas, electricity, phone and that roading, kerbs and other lighting services will be in place before you buy.
Position and Facilities.
As well as looking out for those views if any keep in mind the aspect to the sun. Where can I place my house to get the best aspect of sun? Think about the location to the local shops, schools and other public transport amenities. In the long run this will have a major effect on the saleability of your future house. If the area is new you need to investigate where and when and if new future developments that may be in the area.
Titles:
When looking to buy your land make sure you understand what the title is all about. The best type for buying and selling is freehold, which is free from covenants and other ownership restrictions.
Sub divided and cross leased sections:
Residential zoning by-laws determine how many dwellings will be permitted on one site depending on the land size and the dimensions. Generally when a block of land is subdivided it is chopped up and the sections are of their own title. But sometimes you can get a cross leased section. For more information on this have a look at a previous blog post of mine on titles.
Legal Advice:
Always seek legal advice before purchasing. I only say this as it can sometimes save you a fair bit in the long run. Sometimes a lawyer will be the devil’s advocate and try and put you off a deal. Listen to their advice but remember you are your own boss when it comes to buying your section. Also make sure you get the legal title searched. This means you can find out if there are no caveats or covenants on the land, or no problems over ownership of the land for sale and no legal obstacles to building on the site.
LIM: Land Information Memorandum:
My advice is you must get one of these. It will cost you up to $200 but for the price of the section your buying it will save you a whole lot of issues. It will provide you all the known information on the land including erosion possibilities, subsidence issues, soil type, location of drains, any permits, certificates of land use and any restrictions by the department of conservation or historic trusts. Again read my blog post on LIM’s.
Buying land can be exciting, especially when you’re looking to buy land to develop a house on. Just make sure you do it right.
February 20 2010 | Uncategorized | No Comments »
The Breaking News story today is about property again. Seems like lately everything is about property property property. Today’s headline states Property sales plunge in January – January house sales worst in nearly two decades…
Sounds terrible doesn’t it! This story is quite a different picture that was being painted last month when the authorities were talking about the market in December. It is clear that there is a huge amount of instability within the market place. People are unsure what exactly is going to happen and the media is always reporting on the has been or the statistics. Here are some of the facts relating to the latest data that has been released.
- January saw just 10,272 new listings coming onto the market; the first time in 4 years that the January figure has been lower than December
- The national median of $350,000 was up 7.7 per cent on the corresponding figure of $325,000 for January 2009, but was $10,000 down on the median price for December 2009.
So why the big change between December and January when January is typically the busiest month for Real Estate transactions in New Zealand. SO what is holding it up. The answer isn’t as simple as one answer. There are many reasons. Some of these include the recent news about the possibility of tax reforms relating to property, some factors include New Zealand heightening unemployment ratio, other things such as the media releases stating that house prices are at levels not seen since the 2007 peak.
I think all these factors have put the brakes on people making decisions relating to property. Naturally because property is a massive investment people don’t want to be making investments when there is uncertainty around it.
The next step in the equation is almost anybody’s guess. There are no hard and fast rules. When it comes to property investment it would be fair to say that many people will be holding off, including myself until it is clear what the government is going to do regarding the tax reforms relating to property and gst. The recent Speech done by the prime minister will have adverse effects on peoples perceptions of residential property
investment. This is the key part to the speech.
“We have a tax system that taxes labour and investment income at relatively high rates, taxes consumption at a relatively low rate and generally gives money back to people when they invest in residential property.
Is it any wonder that our economy is tilted towards consumption and property investment, that we have a shortage of savings, and that a high proportion of New Zealand graduates live overseas?
Tinkering over recent years has made the tax system more complicated, led to poor incentives in the economy, and created a raft of different ways for people to minimise their tax payments.
The Government will therefore be introducing measures this year to reform the tax system. We intend to announce those measures as part of the Budget in May. “
It will be a long awaited Budget in May and I can’t wait to see what it produces. There will be big change and until then unfortunately I feel the property market might be quite subdued because many investors will be holding off buying. But on the flip side to this with a relatively higher property inventory compared to the number of sales there could be some great buying opportunities for people who wish to buy their own home as some vendors could become pressured due to the lack of interest in the market.
There is also one other point to take into consideration which could cause all of what I have said above to be a uncredible. Since the Real Estate act changed in 2009 agencies do not need to be members of the REINZ who usually supply all the stats for the sales etc. SO just possibly maybe there is a slight problem with the stats from here on in and the real estate stats are not up to date. This could be the case because agencies do not have to submit their results to the REINZ. This would cause a dip in the stats if someone didnt enter their data. this is something I will investigate further.
This is surely interesting times.
If you want to view the entire John Key speech visit this link to download a copy of it.
February 12 2010 | The Market | 4 Comments »
I have been reading a few things lately about the Real Estate prices in and around Christchurch and New Zealand. There seems to be much talk about the market prices climbing up and up and up in recent months and reaching what one is calling record prices. What the hell is going on. The country is still suffering one of the longest recessions in recent times and Real Estate companies across the board are spouting out that the housing market is in full recovery.
Here is what I read on stuff.co.nz http://www.stuff.co.nz/the-press/news/christchurch/3239911/House-prices-break-record
Christchurch house prices have hit an all-time high as a shortage of properties fuels a market recovery.
The city’s median house price last month was $347,250, up 12 per cent on a year earlier and beating the previous record of $340,000 set in November 2007, Real Estate Institute figures show.
There were 506 Christchurch house sales last month – about the same number as in December 2008.
Bank of New Zealand chief economist Tony Alexander said prices were rising as the low level of new-home building curbed supply, while a rise in immigration and lower interest rates boosted demand.
The market was playing “catch-up” after the recession kept buyers away, he said.
Cities were leading the market recovery, with export concerns and farm debt hurting rural areas.
“I’d expect that prices on average in many parts of the country will continue to rise by 5 or 10 per cent over the next year,” Alexander said.
Longer-term interest rates were rising, but he expected floating and shorter-term rates to stay low until next year, prolonging the market rally.
Real Estate Institute president Peter McDonald said house prices had “definitely stabilised” and were now rising, boosting optimism in the industry.
New homeowner Tania Power said competition from other buyers meant she and partner Marc Greenhill made their top offer to secure the Christchurch home they moved into last week.
The couple spent a year “saving really hard” and watched prices rise.
“There were definitely a lot of people looking when we bought ours,” she said.
“It went to a multi-offer, so we had to offer them the asking price, but it was worth it to get the one we wanted.”
Christchurch real estate agent Rob McCormack, co-owner of offices under the Harcourts Grenadier brand, said houses and sections were selling well.
“There’s a feeling of optimism out there, and I don’t think it’s a dead-cat bounce,” he said. “If we do have a problem it’s getting stock. We don’t have the supply, but there is certainly the demand.”
Rising prices made properties hard to value, and more sellers were prepared to auction their houses, McCormack said.
Statistics New Zealand figures show house-building has been at its lowest point for several decades. About 1500 consents for new homes are being issued each month by councils, half the number from six years ago.
The Real Estate Institute’s figures show prices rose in 11 out of 12 regions in the past year, with the national median price of $360,000 up 9.6 per cent on December 2008.
Of 4957 sales across the country last month, 58 per cent were under $400,000. Homes sold in a median 33 days.
//
In the Canterbury-Westland region, December’s median priced matched the February 2008 high of $320,000 after rising 7 per cent in the past year.
Median house prices in other regions in the year to December were, with annual price growth in brackets: Nelson-Marlborough $343,500 (14.5 per cent), Wellington $400,000 (8.1), Southland $184,000 (10.84), Otago $230,000 (unchanged), Central Otago Lakes $432,500 (1.16), Auckland $470,000 (6.81), Northland $306,000 (minus 2.08), Taranaki $280,000 (7.69), Manawatu-Wanganui $230,000 (2.9).
Come on. Look at the bigger picture and look whats going on. Now I know I am not qualified to rattle off any official stuff. But you have to ask the questions that will this price recovery actually keep going. And when they talk about median prices. The reality is that more higher priced homes have been selling in the last 6 months than in previous homes comparatively to the lower priced homes. From my understanding of going to peoples homes the amount I have been most people who own homes under the 400k mark are finding the times tougher and arent moving.
Compare that to many people who are downsizing their homes at the moment. People in bigger houses in posh locations looking to downsize and have something with smaller mortgages. The reality is that people out there still worry about the prices of homes. Our home affordability allbeit better than previous years is rising fast and is one of the most expensive in the world.
On top of all of this you have to keep in mind we still have an extremely low OCR which is tipped to rise by June this year kissing good bye to the relatively cheap money we have had access to for the past 12 months. Bollard has tipped a mid-year increase in the official cash rate from its current record low 2.5 per cent but the market is anticipating he will start as soon as March and have hiked the OCR by 75 basis points by June 30.
I am sorry to say but if you look at the signs they do not paint a pretty picture. The average Kiwi is going to be priced out of buying a home. And if they do they most certainly will be stuck with a massive mortgage.
I feel the Real Estate industry shouldnt be telling the country that house prices are heading to an all time high. Its just not healthy to be doing this at this time. Sellers will start to expect higher prices. Great if your a home owner though. There is a drought of listings at the moment. A sure sellers market. So what the industry needs to do is attract more listings. Which is what the article above will most certainly do. Before you buy or sell right now make sure you do your research on true facts as there are too many conflicting opinions out there, including mine. But you need to look at cold hard numbers and look at the trends.
Good luck.
January 19 2010 | Uncategorized | 2 Comments »
Energy saving around the home does not have to be all about installation of equipments that will help you generate the amount of power you need. Here are two things that work hand in hand to make your home warmer as 60% of your energy costs in the year come from space heating. To view more tips visit my personal Healthy Home Blog
Tip #5: Invest for the insulation of your home so you will require less energy to heat up during winter.
Tip #6: Make sure you ventilate your home so that the any build up of moisture from a well insulated home doesn’t occur. This makes your home more energy efficient. Products like carpet, cabinetry, plywood and paint can contain petroleum products or formaldehyde and off gas VOCs (Volatile Organic Compounds). There are now many products available that give off little or no VOCs so that as well as a ventilated house you can have clean healthy home.
Many have suggested that going green is the way to economical and ecological recovery. Some see it as a way to decrease their carbon footprint, and others see it as a means to create new job opportunities in a waning economy. Whatever your reasons for going green there will be substantial gains personally to be made.
For more on green homes or sustainable housing visit my Personal Blog.
January 15 2010 | sustainable houses | 1 Comment »
I just want to send a quick message to you to wsh you a merry christmas and hoping you all a happy new year.
2010 I feel will be a year of massive change in the way we look upon how we live and conduct business within our homes. I look forward to this.
Be safe on the raods and hopefully we will talk next year.
Regards
Deon
December 25 2009 | Uncategorized | No Comments »
The fact of todays market means we all need to all be careful with all our money.
A few years back when I had too much time on my hands I got hold of a good friend of mine and started to produce some material to help people save money and outline steps for buying a first home. Unfortunately this didnt quite get finished in the form that I wanted but hey at least I learnt alot from writing it.
I dont think there is any way of learning more than actually trying to write a book about it. But thats a new story.
For the last few weeks I have been working with some friends of mine who are looking into buying their first home. They have had all the questions in the world and are getting their way through all of them. But there has been one strong thing that has come to light. One has been the planning needed and the other being their financial position. Both are very much needed to make sure success will happen when buying your first home. The one thing you need to plan for is that interest rates are going to go up which will mean the costs will go up in time!
For this reason I thought I should share some of the material that we made a few years ago. The information is fairly common but it is important:
FAIL TO PLAN – PLAN TO FAIL
The amount of money needed to actually survive is a surprisingly small amount. No matter how much money you have to live on, there are always a number of ways that you can reduce your out-goings so that you can make those dollars stretch further.
Up until the Second World War most people counted their wealth not only in terms of money but also in terms of how lucky they were to have family, housing, food on their table and good friends. The depressions prior to the war taught people that being rich wasn’t necessarily how much money you had in the bank but the quality of life that you lead.
Since then the war of materialism has become more and more popular with people wanting to “keep up with the Jones’”. Buying things on hire purchase so that you can have the product today has become the normal way of obtaining goods.
As reliance on ourselves and our bank account increases, and a desire to be dependant on the family decreases, we only have our own resources to help us out when we suddenly find ourselves in a financial bind.
Because we have limited resources, we have to plan much more carefully what we are going to do with our money.
If we are travelling in our car to a particular destination and we know we only have quarter of a tank of petrol, we calculate how far we are going to get on that quarter of a tank of petrol so that we don’t get stranded before we reach our destination. Why don’t we show the same care and attention to the amount of money we have in our pocket?
The main reason that people get into a financial mess is because they do not plan their finances.
IF YOU FAIL TO PLAN THEN YOU PLAN TO FAIL!
YOU NEED TO PLAN YOUR FINANCES
THE PLAN OF ATTACK
We must:
- · Identify where we are right now and have a full understanding of exactly how much income we have coming in and where it goes. We will see how much excess we have left – or how far short we are in paying our bills.
- · Stop further debt. Catch up on unpaid bills and start a habit of paying our bills as soon as they come in. As bills usually give you 20 days or so to pay them, this builds in an amount of flexibility if you usually pay them straight away.
- · Plan debt repayment. Clear all your credit cards and hire purchases by putting extra cash into these areas. Modify your budget and spending behaviour.
- · Start savings as soon as you can. This money is to be used to stop you getting into more debt by allowing you to overcome unforeseen expenses and also to assist in paying for needed purchases with cash. We need to aim at having $2000 as an emergency fund but you must start – even if it is the tiniest amount.
- · Monitor and plan your spending continually to make sure the plan is working and changing with your needs.
I hope this information helps in some way. I am no financial adviser but the basics are important. If you want a copy of the entire book, their are 6 – 60 page booklets that you can download from my server.
All you need to do is just email me.
December 17 2009 | Uncategorized | No Comments »
Should a Green home or a sustainable home be called instead a smart home?
When you think about it when you are planning to build yourself a green home or you’re going to renovate your existing home to a green home you look at the potential products out there which will serve you two basic principles. These been to save you money in the day to day running of your home which will become a sustainable option to the environment on a larger scale and also you look at making the home sustainable for your own self which means the home can look after itself.
Green building is so much more than saving energy or reducing a home’s environmental footprint. There are a few other things that a green home can do for you as well.
New Zealand is rich in resources and values and I believe that creating smart homes here would be a great benefit to society and to all the individuals who live and build them. The housing industry needs to shape up with the way they build houses here in this country. New measures need to be made to future proof and smarten up the houses we build.
So green housing isn’t just an economy thing it is about creating smart homes and future proofing.
There is more on this topic at this Healthy Home Website
December 02 2009 | Uncategorized | No Comments »
Mortgagee Sales now account for 4% of all house sales. This is a disturbing statistics. It is horrifying to think that 1 in 25 houses selling on the market today are mortgagee sales. For statistics
Regional towns across New Zealand are feeling the squeeze as mortgagee sales hit another historic high in September, according to the latest figures from Terralink International.
The data released today showed 343 registered mortgagee sales – up on the previous record number of 321 in July this year.
September 2009’s figures are up 130 per cent from the 149 mortgagee sales recorded in September 2008.
In September 2007, prior to the recession, there were 16 mortgagee sales.
Terralink Managing Director Mike Donald said the new record figures followed an uncharacteristic dip in mortgagee sales the month before.
“The continuing increase in mortgagee sales came as no surprise because all indicators showed the worst was not over for property owners. I don’t think we’ll see a true decline until sometime next year,” he said.
Regional towns and cities showed the greatest increases in mortgagee sales, Mr Donald added.
The number of mortgagee sales in Manawatu has doubled in a month from 11 to 22, Hawke’s Bay has gone from 15 to 24 and there were 32 mortgagee sales in the Waikato region in September, up from 18 the month before.
Northland, Otago and the Bay of Plenty also saw significant increases.
“The recession isn’t just hurting people in the big cities, small town New Zealand is clearly hurting too,” Mr Donald said.
Christchurch was the hardest hit main city, up from 19 mortgagee sales in August, to 29 in September.
figure source: NZ Herald
As I see it now there is no logical reason as to why house prices in New Zealand haven’t yet crashed in a dramatic way like the rest of the world. Not only is farming bad but tourism is terrible. Mortgagee sales and mortgagee auctions have risen 100% in Northland from May 2008 to May 2009, In Auckland during the same period, they rose 211% and in Wellington 1000%
This begs me to ask why are people getting themselves into the hassle of mortgagee sales but unfortunately its just about people not taking the right measures to avoid it. But I still receive emails from people asking why do people get themselves into this situation and others asking what actually happens in a mortgagee sale. So here is a quick excert from a New Zealand Website that details what a mortgagee sale is…
So what happens at a mortgagee sale?
A mortgagee sale is the final stage of the mortgagee process, at which the property which is the subject of the mortgagee action is sold at public auction to the highest bidder. The sale is conducted by a court-appointed referee. The referee commences the sale by reading aloud the Terms of Sale; the Terms of Sale is the document that acts as the contract of sale between the referee and the high bidder, and sets forth the rights, responsibilities and obligations of both the referee and the high bidder. Once the referee has read the Terms of Sale, the referee begins to accept bids for the property. The foreclosing mortgage holder (the “Mortgagee”) usually has an “upset price” which is the minimum amount it will accept in satisfaction of the mortgage debt. If the highest amount bid is less than the upset price, the Mortgagee will usually be the high bidder and take title to the property. If, however, the highest amount bid exceeds the upset price, the property will generally be sold to the highest bidder.
How does this happen?
If you fail to make the payments due under a mortgage on your home, the lender (the “mortgagee”) has the right to recoup the loan amount through exercising the powers contained in the mortgage contract. Usually this is done through the power to sell the property.
The mortgagee must, however, fulfil certain strict legal requirements, including serving you (the “mortgagor”) with the proper notice. If these requirements aren’t met then you may be able to apply to the court for a remedy.
Mortgagee must serve you with notice before taking action
Before taking action the mortgagee must serve you with a notice under section 92 of the PROPERTY LAW ACT 1952. This notice must adequately inform you of:
- the nature and extent of the default complained of (that is, the amount by which you are in default)
- the date by which you must remedy the default
- the rights that the mortgagee is entitled to exercise if you don’t remedy the default by the specified date
The date specified must be at least four weeks from the date on which the notice is given. But if the mortgage contract specifies a period for this that is longer than four weeks, the date specified in the notice cannot be earlier than the end of that longer period.
If you receive a notice from your mortgagee that does not comply with the legal requirements, you may be able to apply to the court for an injunction to prevent the sale going ahead. Further, if the mortgagee exercises the power of sale before the date specified in the notice, you may also be able to apply to the court for a remedy.
The mortgagee’s duty to obtain the best price
The mortgagee has a statutory duty to take reasonable care to obtain the best price reasonably obtainable as at the time of sale. If the mortgagee breaches this duty, you can apply to the court for a remedy.
To satisfy the duty the mortgagee must adequately market the property, which may involve advertising outside the local area, giving notice of the property’s advantages (including the potential for any development), and setting a realistic reserve price based on the property’s valuation.
Three ways of exercising the power of sale
The mortgagee can exercise the power of sale in one of three ways:
- sale through the High Court Registrar
- sale through public auction
- a private sale
Sale through the Registrar
If the mortgagee chooses to exercise its power of sale through the High Court Registrar, it must apply to the Registrar and notify the Registrar of the name and address of the mortgagor and of any other mortgagee. The Registrar must be satisfied that the mortgagee is entitled to exercise its power of sale.
A mortgagee is entitled to buy the mortgaged property only if the sale is conducted through the Registrar.
Your right to redeem the property
There is a small degree of protection afforded to you, the mortgagor, through the “redemption price” – this is the price at which you may redeem the land to be sold. At any time before the Registrar’s sale you may pay the redemption price or the amount due and owing under the mortgage; the mortgagee must then release the mortgage.
The redemption price is set by the mortgagee, and must be specified in the mortgagee’s application to the Registrar to conduct the sale. Any advertisement for the mortgagee sale must state that the redemption price is available at the Registrar’s office and can be obtained before the auction.
The best thing to do is talk to your lender and your solicitor early to avoid heartache.
The reality is that real people are having mortgagee sales. Its as easy as a person losing their job. For example a friend of mine lost his job, have a mortgage holiday but his new job did not give him enough money to pay the mortgage. He then was notified that his home was going to be sold and there was not much he could do. This is very real and looking at the economic situation out there there will not be a sudden drop off from these types of sales.
November 22 2009 | Sellers and The Market | 4 Comments »
Selling your house in a market where there is a very stiff competition with other properties is incredibly a tough thing to do. You need to ask yourself the question. Why am I selling? If you want to sell then prepare for it and if you need to sell then prepare for that as well. The worst case is it can take you years before you can finally sell it. The best thing you can do is to make your property stand out from other houses for sale and maintain it so you can survive the competition. Consider some of these effective ways on how to sell your house in an instant.
I read this and had to share it.
Everybody knows that price is a major factor since most of aspiring homeowners depend on their resources for every move they make. And one of this is buying a house. Make sure to be lenient when it comes to setting a selling price for your house. Consider other offers by potential home buyers. It will greatly help if you place in one of your advertisements that you are open to offers. This will attract more buyers to inquire about your house.
When you attempt to sell your property and the last time you renovated it was a decade ago, then expect that it may not be as attractive to people. Prior to selling your house, make sure to do some small cosmetic improvements like repainting the walls and ceilings, replace destroyed lock and door knobs, remove broken tiles and other related repairs that will help enhance the quality of your home. Bear in mind that home buyers will see your properties as well as other for sale houses, so you should secure the entire package of your house before you list it in the market.
A potential home buyer imagines their own style on your house. Family portraits displayed all over the living room can have sentimental value but once the buyer has seen them, they might be intimidated or they feel they are breaking your privacy. Your house must allow them to feel that this can be their own place if they decide to buy it. Do not leave anything that will imply to them that the house is still the owner’s property. Get rid of all the personal things and other stuff that will make them feel awkward when they go inside.
You might have a tendency to collect anything and everything then place it in your storage room. Before you sell it, get rid of all those stuff since this will make your place overcrowded. It can also imply that it is too small which can discourage potential home buyers. As much as possible, make it appear to be spacious, even if your place is not that big.
Consider the opinion of other people about your house. While you think that your place is a perfect abode, others might not look it that way. Sometimes they see so many flaws and other can also look at it the way you think about it. It pays to listen to those tips and suggestions so you can improve it more and enhance its quality. Do not find it too bad whenever they criticize your house. Everyone is entitled to their own opinion. Just accept them and make them as your basis for improvement.
Now that you have read the suggestions on how to sell your house, try to implement them and you will notice the development as you go along. However, it will also help if you try to put yourself in the place of the buyer. Try to ask yourself what are the things that you are looking for a dream house? Contemplate on it and you will surely sell your home in an instant.
You might want to experience what it is like to live in one of these communities Estancia Scottsdale Homes and Scottsdale New Builds
Article Source: http://EzineArticles.com/?expert=Lian_Canonigo
If you hang in there you will get a sale. One person told me to look at house sales like car sales. When you go out looking at buying a car the first thing you generally find out what kind of car you want and then establish your budget. In regard to a house that is usually by location and price. The next thing we do is look on the internet and or the local papers at the competition that is out there.
Then we look at a few out there and test drive them. For many people in Real Estate terms this can be done in an Open Home.
If you need to sell your home this is when it becomes important. You need to look at your home in a certain light and then figure out what a potential buyer will want from it and then try and establish as many reasons why the buyer will buy. If your house has more features/reasons for the buyer to buy yours and then the price is right your one may be the one they offer on.
November 20 2009 | Uncategorized | 1 Comment »
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