Archive for November, 2008
In todays market it is both taking longer to sell your home and harder for buyers finance to be approved. This coupled with what seems prices dropping slightly every month is making for a very interesting and tough market to work and sell in. But there is always ways of making the selling process easier and quicker. The fact is that buyers who are in the market are looking for a good buy – or what they perceive to be a good buy. And usually this is associated with the price that you put on the property compared to the location and condition it’s in. And there is one thing that I have come across time and time again is the emotional attachment a seller has to their home when trying to negotiate a contract.
It is very difficult to separate the emotional attachment you have for your home from the financial investment. If you’ve lives in that home you will have spent a lot of your life in that building and there will be many memories that you treasure there. However, when you make the decision to sell, do your best to balance your emotions with this extremely important financial decision. Your property is one of, if not your largest, financial asset. Treat it as such. Help your agent market your property. Remember, this house is a product you must sell, much like a commodity on a financial market.
If you’re a seller you need to come to grips with the market if you are seriously needing to sell. Listen to all the advice and set your price and be firm on it, but also be flexible to understand where the market is telling you where your property is sitting. The hardest thing to work on is when a buyer comes with an offer for your property. The agent rings you up and says I have an offer, you go in to their office and sit down with the offer and present it to you. This moment can be one of the hardest, especially in this market.
What you as the seller are likely to face is a lower offer than your listed price and lower than the 
price you were willing to negotiate to, and sometimes by a lot. This is when it can become emotional and those emotions can get in the way of true negotiating. At this point it is fair to say you need to take a big breath and remember why you were on the market in the first place. And ask yourself is this enough money for me to move on with my life and if not how much more do I need. But you also need to be thinking where is the market telling us the property is at and how much away is this offer. From here you may want to discuss the offer with your agent and work out a plan of attack, whether this is accepting or countering with a counter offer. At the end of the day we can only hope to achieve a fair market price on the day.
It is disheartening when a seller has to settle for less than they expected but if that seller can use what they achieved to move on there is still a great sense of satisfaction for me.
Whatever it is when you put your home on the market you need to separate your emotional attachment to your property away from the monetary investment. This way you will see a bit more clearly what the market is doing and where the offer is in relation to this and you will be better able to take into account the advice your agent gives you.
November 29 2008 | Sellers | 2 Comments »
This guide should help with sellers and buyers when looking at doing a property transaction. A good builder friend from New Zealand Home Inspections and me have put this together so that you may use it to your advantage. The information is probably the same as what you already know but it is good to have a check list. To use this properly I recommend to PRINT THIS OUT and take it with you when you go to inspect the home you are interested in.
For sellers this is what buyers will look out for:
For buyers this is what you need to look out for.
There are many things you need to look out for but these are the main and obvious ones you can look at without needing a builder.
Doors
- Does each door panel open and shut without obstruction of the door frame?
- Is the door panel a true rectangle shape or has it been planed to fit the frame?
Tip: Check for uneven gaps at the top and bottom of the door panel, if it is uneven maybe the piles have sunk.
Windows
- Attempt to open and close each window.
- Look for condensation and damp damage.
- Are there any cracked panels of glass?
Tip: Often timber frames are patched and painted with fiberglass filler, look for irregularities in the paint surface. Fiberglass filler and putties are only a short term repair they usually hide much worse damage.
Wall & Ceiling Surfaces
- From the door way openings look at the line of the wall is there any buckling.
- Solid brick walls may have damp issues, are there any mould stains or irregular areas of fresh paint.
- Check the level of the ceilings is even and consistent or is there a lot of patch repair and damp stains.
- If it is a solid brick wall check for damp and mould markings along the floor level.
Tip: Shine a torch from an angel at the wall and ceiling surfaces, this can highlight patch repairs and thin paint cover.
Tip: Sagging in the ceiling can indicate a past roof leak and should signal close attention to the condition of the roof and its performance.
Kitchen
- Look for damp stains at the junction of the splash back and kitchen sink.
- Check under the kitchen sink common leaks occur in the waste pipes.
- Take a hold of the plumbing from under the sink/bench top and give a firm but gentle shake to ensure the fittings are secure.
Tip: Many cook top exhaust systems are installed without an external vent. Open the cupboards above the exhaust system and look for signs of excess cooking fat. Is the cupboard shallow or has there been no feasible space for a flue to be provided. Check the roof line above the kitchen to see if an external flue exists above the location of the kitchen.
Bathroom(s)
- Turn taps on and off.
- How long for hot water to start running?
- Check under sink for leaks.
- Check for any grout or sealant missing from the edge of shower bases, bath tubs and tiles.
- Check for installation of an exhaust fan.
- Check that shower screens open and close without damage.
Tip: Often tap handle leaks occur from behind the tiled surface. If there is good sub floor access and some one is with you ask them to turn the taps on and off as you look from under the house for any drips.
Laundry
- Usually the simplest of service areas to inspect check that the trough is secured in place, check for rust and ensure that there is a seal between the trough and the wall.
- The wall behind the trough should be tiled.
- For apartments pay particular attention to the location of an overflow drain pipe in the floor surface.
Tip: Make sure you open the door of the trough cupboard; some troughs are painted up for sale but the internal casing may be significantly affected by rust.
Toilet(s)
- Flush Toilet while viewing the area behind the seat look for leaks at the cistern and waste pipes. Aged rubber seals should be replaced.
- Check for excessive use of silicon sealant this is a sign of leakage and poor quality repair.
- Listen for water that is still running after the cistern has been filled � It should come to a stop � not continue forever.
Tip: Gently nudge your knee against the toilet pan, if it moves the mounting screws are loose and you will be prone to leakage from waste and cistern pipe seals. Secure and service seals.
Tip: The flush valve within a cistern requires servicing to ensure no water wastage occurs.
Roof Frame
- Seek to determine the type of timber used. If possible access the roof space.
- Hardwood timber indicates that you may endure the sound of roof creaks and also cracks in ceiling plaster during the change of seasons.
- A Pine Timber is used in prefabricated trusses and is usually much more stable.
- View the roof from the street, does it appear uniform or are there wave like patterns in the surface.
Tip: Pay close attention to areas around roof skylights and air conditioning services, poor quality trade services have been known to saw through critical roof timbers during installation.
Roof Cover & Drainage
- Check that Iron roofs are free of rust, pay close attention to the roof colour as it is not uncommon to find that owners have painted over rust damage.
- Look for faded colour on concrete tiles to indicate the need for new sealant.
- Look for cracked mortar pointing along the ridge, hip and valley tiles.
- Check of rust marks along valley iron, gutters and down pipes.
- Is there any rust or water marks on the timber and eave lining beneath the roof line, this indicates leakage?
- Check that down pipes are connected to a storm water pipe at ground level and not just left to discharge rain water at the base of the house.
Tip: Tiled roofs deteriorate with age also and concrete tiles in particular require new sealant after about 25 years, they otherwise can become porous and deteriorate at a rapid rate. The sealant then needs to be applied again every 7- 10 years to ensure the material quality of the tile is preserved.
Tip: Terra cotta roof tiles that are older than 50 years of age have a very unpredictable performance quality and professional servicing becomes very costly, the tiles become very brittle and can not be walked on.
External Wall Surface
- Check the lines in the timber weather boards; they may have sagging or bowed lines if the structure has moved.
- Check for damp rot adjacent to window openings, plumbing and at ground level.
- Cracks in brick work that are of a significant concern would normally be obvious as large cracks. Pay particular attention around door and window openings, this is where the first signs of movement usually occurs.
- Scrape the mortar joins within a brick wall with a screwdriver, if it is removed freely and has a dusty quality. The joints may need to be raked and pointed with new mortar.
Tip: Damp rot usually starts at the join in timber weatherboard, timber at the corners of a house are at highest risk of having damp rot damage.
Tip: Pay close attention to walls adjacent to large trees for concern of the root structure causing damage.
Sub Floor Area
- Check the material quality of the stumps; probe the base of the stumps with a large screwdriver.
- Check the soil surface under the house for any water courses.
- If it is on a concrete slab check that garden bed levels are kept below the line of the internal floor level.
There should be a fall in the surface of the ground adjacent to the building perimeter that directs surface water away from the house.
The next two things you will most likely want a professionals opinion on.
Plumbing Service
- Check the outgoing pipe at the water meter to determine the material used for the main supply line.
- Check waste pipes for cracks and broken seals.
Tip: Galvanised pipes are a cause of poor quality water and poor pressure; they should be updated for Copper or PVC. If the pipes are dirty scratch through the surface, a silver colour indicates galvanized pipe and copper colour, copper pipe.
Tip: It is only a licensed plumber whom can provide a truly professional accurate indication of the plumbing service. They will use specialized testing equipment and pressure tests and pin point exact location of leaks or failure in the waste plumbing. A typical pre-purchase building inspection will only provide a general overview.
Electrical Service
- Open the fuse box and observe whether it contains a fuse wire system or a modern circuit breaker system.
- Check for the physical presence of an Earth Leakage Safety Switch.
- If there is an opportunity to view the roof space or under house area look for the use of wiring cable that is of a white colour, this is usually the modern standard.
- Black coloured cable and the use of timber cable trays cause certain concern for the need of a wiring update.
Tip: Only a licensed electrician can provide an accurate test and assessment of a home wiring service and safety. A building inspector’s comments will only relate to a visual observation as to whether there have been wiring and or fuse box updates.
Tip: Make installation and testing of a Safety Switch a number one priority upon purchasing a new home.
November 29 2008 | Buyers | 1 Comment »
The arts and crafts era (1880’s – 1920’s) takes a side step from the traditional New Zealand home. Recently I have spoken about The Modern Townhouse, The Transitional Home, The New Zealand State House, Art Deco Homes, Beautiful Bungalows and The New Zealand Villa. But both before and during the time of the Villa another style of house was built in New Zealand which is now dubbed the Arts and Crafts.
The Arts and Crafts architectural styles were being driven by British architects back in the years between the 1880’s and the 1920’s. The houses of the Arts and Crafts Movement were informal and unpretentious, sophisticated in a very subtle way and designs suggested handcraftsmanship and a “harmony with the setting”
Arts and Crafts homes were built in a time in New Zealand when there were a number of other styles emerging. Art Deco was a spring off from the Arts and Crafts home and also we saw the transitional time from the New Zealand Villa to the Bungalow.
The Arts and Crafts movement sought to reunite what had been ripped asunder in the nature of human work, having the designer work with his hands at every step of creation. These types of homes were built off ideas, they followed a trend which was followed by the British architects but there were a lot of variances depending on the person building the house.
This period of home was the first to use mass machined wood within the homes. The industrial revolution was changing the way homes were built and builders of this time were experimenting from traditional ways of building homes with at the time new and experimental ways of putting together the house. This resulted in simple, sturdy and functional furnishings. But there were still the elegant and grand designs that preceded this time as many designers were still holding onto these craftsmanship skills.
Good Points:
Usually large and grand designs in good areas of towns
Simple designs makes it easy to add own touch.
High pitched roofs allow good water runoff.
Large eaves so moisture doesn’t get into structure
Built with native timber and with larger than normal thickness of wood. usually by craftsmen
Rooms are usually large and have a high stud.
Not So Good Points:
Rooms are all built separate with no flow from one room to the next.
No thought for indoor outdoor flow.
Can be drafty and have little or no insulation.
Can be dark inside and rooms aren’t not positioned well for the sun.
It’s fair to say these homes are of a grand design. Built in a similar age of when the Villa and Bungalow were built all these homes are generally well loved by their owners and are well looked after. Maintenance can be high but the rewards for living in one of these beautiful pieces of history would be priceless.
November 28 2008 | Buyers and houses | 2 Comments »
BUYING AT AUCTION:
Auctions can be a daunting time to buy a property as some Auctions you may not have any idea where it might sell or what it is worth. In New Plymouth we have adopted a policy of publishing the Auction Reserve in order for the whole process is transparent. We do about 60% of our Auctions this way. But in any case Auctions still are done in a set time frame and you need to have things sorted out so that you don’t miss out on your dream property at Auction. Here are a few things that will help you in your purchase at Auction. In Christchurch auctions are done in a more of a traditional way where auction reserves arent published and in many cases arent decided till a few days before the auction. Here is a quick run down on the things you should do when looking at buying a property from auction.
BEFOREHAND:
Do your Research
When you are looking in an area, whether buying ‘for sale’ or through an Auction, research the prices in that area for the type of property that you want. Find out about the good and bad features of the area, and comparative prices to other areas. Look at similar properties to the type that you are seeking.
Attend Local Auctions
It is valuable experience to attend as many local Auctions as you can to see how the Auction proceeds. Observe how people bid, and who is at the Auction. Work out people’s style of bidding. The same people may be bidding against you for your property in the near future.
Arrange your Finances
Ensure that you have your Finance in place prior to the Auction. Establish you bidding limit. Make sure you allow for all extra costs that may be involved and leave a buffer for bidding so that on the day you know exactly what it will cost you when your bidding.
WHEN YOU HAVE DECIDED ON THE PROPERTY:
Register your Intent with the Agent
Advise the Real Estate Agent if you are interested in a property. They will be able to give you more information on the property and guide you through some other things.
Establish your Bidding Limit
It is important that you set your own bidding limit. Decide what the property is worth to you based on what you can afford. Talk to your local mortage broker or bank for this as they can give you advice on repayments at any given cost.
Check the Paperwork
If you are seriously interested in a property and intend to bid you should have your Solicitor inspect the Contract of Sale. It is a good idea to have a good read through all the paperwork related to the Auction beforehand. Wherever possible, contact the Agent handling the sale and ask them to provide you with a copy of the documentation. This is normally possible in the week prior to Auction. Read through all of the documents and always ask if you are unsure of anything. It is important to clarify details such as settlement terms, deposit and fixtures before the auction commences.
Inspections
If you want a building and LIM inspections done do it before the Auction. It is not possible to make an Auction purchase conditional on inspection results. Make sure that any reports or inspections have been carried out to your satisfaction before you attend the Auction.
Ask for Help
Many people find the Auction process daunting. Don’t be afraid to ask a friend, relative or Real
Estate Agent, to assist you with your bidding. Many people ask someone else to bid on their behalf as they may be less inclined to bid emotionally and will not exceed a predetermined limit. Make certain that they have very clear instructions in writing on what they can and can’t do on your behalf.
ON AUCTION DAY:
Check the Contract of Sale again
On the Auction Day you should always check that your copy of the Contract of Sale is exactly the same as the original Auction Contract and that there have been no late changes.
Bidding
Remember how an Auction looks from the Auctioneer’s perspective. They are often looking at a large number of people who are invariably turning around, whispering etc. If you are standing at the back of this scene, or hidden in the shade of a tree, the Auctioneer may well miss your bid, particularly when you are bidding for the first time. Stand in clear sight of the Auctioneer and make your first bid obvious to them.
Make sure the Auctioneer understands what you are doing. Bid early, clearly and confidently, and avoid unusual sign language that may be misunderstood. Buyers are usually reluctant to start bidding at Auction but the best policy is to bid loudly and confidently signalling to all other bidders you intend to purchase the property or should the reserve price not be reached that you are given an opportunity in any further negotiations.
Keep Control of your Bidding
If the bidding is increasing in larger denominations than you are comfortable with, consider offering a lower denomination as your bid. The Auctioneer does have the right to refuse it, but there is absolutely no harm in trying.
It is important not to be drawn into a bidding war on a property you want. Emotion can lead to you payingmore than you can afford and there is no cooling off period with an Auction.
Making the Deposit
When the property is sold at the Auction you are required to sign the Contract of Sale and pay a deposit of usually 10% on the spot. This can be paid by Personal or Bank Cheque.
This information should be used as a guide. Always seek legal and professional advice when buying any real estate. Every situation is different so make sure your prepared. Enjoy the process and enjoy your new house if your buy one.
November 27 2008 | Buyers | 2 Comments »
One of the Reasons New Zealand is popular with people from overseas is our relatively small population and
our very much untouched landscaped. The North Island is more populated and the South is less populated. Although the South Island has the best landscape which has been made famous with the Lord of the Rings Movies been filmed in large amounts on the Southern Alps which is the backbone of the south island.
The land mass of New Zealand is Around 1600km in length and no wider than 300km, almost all the 167,000 sq.km which is slightly larger than the England which has a total land area of 130,410 sq.km
The population in 1996: 3,618,300
The population in 2001: 3,737,277
The population in 2006: 4,027,947
The Estimated Population in 2008: 4,280,000
The total population in New Zealand is approximately half the size of the population of New York, and justover a quarter of the population of London and England has a total population of 60,776,238 (July 2007). As you can see the population of New Zealand has a vast difference to these large populations especially in regards to the area we all live in. This helps New Zealand be a nice and relaxed place to live.
More than a quarter of New Zealands population live in the largest city, Auckland.
Main Cities:
Auckland
1,208,094
Hamilton
184,905
Napier-Hastings
118,404
New Plymouth
Wellington
49,500
360,624
Christchurch
360,765
Dunedin
220,997
Remaining Areas
1,085,613
November 27 2008 | Uncategorized | No Comments »
Yesterday the ANZ National Bank announced property loans will now have to have a 20% deposit. Now this closes up the banks and means that lending in throughout New Zealand is tightening up and buying is becoming a lot more difficult. The 20% deposit in many cases will now need to be savings which means that gifting or using equity from another property is not going to be accepted by the banks. The banks are saying even if you want to buy a rental investment home they want to see at least 10% savings from your bank.
This is going to a have huge impact on the first home buyers market. For an average home in Christchurch which is sitting around the $300,000 mark, under these new conditions a buyer will now need to have clear savings of $60,000 before the banks will look at doing a loan. A few years ago you could get in with 5% deposit which will have been $15,000, and there were many lenders doing it for less than this.
Generally speaking, we will not be offering new lending in excess of 80 per cent LVR(loan to value ratio. In some specific circumstances we may be in a position to lend above 80 per cent but customers will be required to demonstrate an undoubted ability to service the loan in the event of changed financial circumstances.
This is the official statement from the ANZ National Bank:
* For all new lending, we will be ensuring that both the bank and the customer understand the value of the property in question. Where we do lend beyond 80 per cent LVR, we will require a new registered valuation.
* We will continue to consider LoDoc (low documentation) but to a maximum of 60 per cent LVR.
* We will continue to support our residential investment customers but are unlikely to lend above 80 per cent LVR. For all new residential investment lending applications, we will seek a registered valuation will be required where the LVR is greater than 75 per cent.
* This comes into effect on Thursday 27 November and applies to all new lending applications. Existing lending arrangements and commitments will not be impacted.
* This applies to ANZ and The National Bank.
If you’re a first time buyer and want to buy a home you need to save. We have come off a number of years where things have boomed and as a part of this have naturally adopted a society of spending and consuming. There are huge amounts of temptations out there to spend money on, there are countless amounts of gadgets that are constantly evolving and needing updating, flash cars and the temptation to spend mega money on small do up projects. These things have been a way of life for many but if you want to buy a home in todays market, even though prices are falling you will need to save. This is so that you can both have enough money for the deposit for a loan and then to demonstrate to the lender (the bank) that you can save and service the loan.
What effect could this have on the already unstable market that is looking for buyers. There is a huge supply of houses on the market and with very few sales already it might just make it harder to find that buyer who can buy your house.
If you are a first home buyer talk to your mortgage broker or bank manager, they can help you clear up any questions you may have and even maybe able to set you on a path to achieve what you want. Talking to my broker today banks will stray from these harsh lending criteria but only on a case by case basis. It may mean that you will need to get gifted some money from your parents to top you up for a loan, it may mean they need to have take out small loans or borrow back on their own equity if they have some. There are options. Its now just a matter of being more creative and committed to saving for that deposit.
November 27 2008 | Buyers and The Market | 1 Comment »
Over the past few weeks we have been speaking about New Zealand houses and their designs.
We have covered The New Zealand Villa, The New Zealand Bungalow, The Art Deco Age, The New Zealand State House, The Transitional Period Home and we are onto the Modern Townhouse.
Modern Townhouses from the 1990’s to the early 2000’s are the houses of today. This is where modern architecture and trendy thinking comes into the picture of housing. There were many different types of designs that made it to play in New Zealand. Some were single level, some were multi level, some were made of permanent materials and some not. Houses were built to budgets in this age. The ones that were built with larger budgets were built with good standards and will generally last a good lifetime. But the downside is that many houses in this time are built with a developmental focus and on tight budgets which meant that in some cases the quality was sacrificed. Many of todays townhouse designs are built of the in the shadow of Joe Eichler who was in the 1970’s a revolutionary architect who designed houses that at the time were considered way before their time. But today these designs are now are much more seen, in different variances. The modern Townhouse is a good family home and is equally secure for the elderly or security conscious person.
Good Points:
· Very easy a functional designs to live in.
· Large open plan living areas with thought to sun positioning and indoor outdoor flow for entertaining.
· Further incorporation with internal access garaging for more security and comfort.
· Economical and dry to keep warm with most houses with full insulation.
· The modern building styles offer much greater scope house profiles and styles.
Not So Good Points:
· Multiple roof angles with multiple leak possibilities.
· Single sheet monolithic cladding, often poorly applied which when expands and contracts, leaks can form.
· Limited or no eaves and overhangs (excessive water cascading down exterior faces seeps in around windows and joins and cracks in cladding).
· Decks and parapets attached directly to exterior cladding can leak; framing can rot.
· Wide use of untreated timber framing (particularly houses built 1998 – 2004)
· Timber pile foundations in many free-standing houses where the exterior piles are subjected to constant wet and drying which can lead huge movements in the building.
· Insufficient “ground clearance”; concrete bases are built quite low and the cladding is very close to ground on many houses, this can cause water to seep in.
Although there were a number of building issues mentioned with these properties, it doesn’t mean they all have these issues. It is important, like with most properties to get a building inspection done. This will answer any questions you may have to do with the building and give you peace of mind in the buyingprocess.
These homes are very elegant and look the part for someone to live in. People who live in these homes usually take pridein them and the gardens and exterior of the houses kept in very good order.
November 26 2008 | Buyers and houses | No Comments »
Yesterday saw a historic day for Real Estate Auctions in New Zealand. What is said to be this countries largest ever property auction event Ray White of Auckland auctioned 100 properties at one event. As David Leggott said in his blog the event was major. With models, balloons and a DJ involved there was more than just properties on the show case.
There were properties of all sizes and shapes and of all ranges of price tags, the range was from $200,000 to 2 Million dollars. The event held at the Telstra Clear Pacific Events centre created a huge amount of interest and made buyers turn out in their droves.
On the day 8 sold under the hammer and 15 were negotiated after the auction. And a number were sold prior to auction. In an auction you must remember that it is a 3 stage process. You have the marketing period, the auction itself and then after the auction with negotiations with interested parties. Quite often buyers cant bid at auction. To bid at auction you need to be unconditional in all respects. Some buyers aren’t so they wait to get the chance to voice their position after the auction. This gives added pressure to the people who can bid to bid so that they don’t have as much competition.
It will be interesting to see over the coming week how the properties stack up in regards to sales. There will be many busy sales consultants in the Auckland Ray White group at the moment.
On TV3 news tonight there was a story Falling prices make it a good time to buy a home. In this article they say that property is the most affordable it has been since May 2006 and it now costs 68% of the average wage to service the average mortgage. Prices of property are down but people are still not buying. Bryan Thompson says on his blog that people are hearing conflicting messages in the media and are uncertain whether it is a good time to buy now or whether to wait.
For someone looking to buy now there are some great deals out there. The people that are selling by in large are motivated to sell and move on. My personal observation is that I see quite a few buyers sitting on the fence and waiting to see what happens, but they are there ready to make a move. In the past few weeks there have been some very positive signals from the Housing market in New Zealand and it will be interesting to see how these pan out with home buyers. Interest rates have fallen, BNZ now offer a 6 month fixed rate of 6.99%, Fuel prices have come down and we are in the process of having nation wide tax cuts. All these factors are putting extra cash into the back pockets of everyone and will definitely help improve confidence within the market over the coming 12 months.
November 26 2008 | Buyers and Sellers | 2 Comments »
Three types of people in the world……..
The recent and ongoing world economic crash is one which will be remembered by everyone for a very long time and will change the way things run and operate in the future forever. This change is not ‘going to happen’, it’s happening and if you think what you used to do will work tomorrow chances are it won’t. Obviously the common principles of people relations will never change but the interaction within society is changing. There are millions of people around the world suffering financially from stock prices falling away, from house prices falling and from any other means associated with the credit crisis. Closer to home the building industry is feeling the pinch with many leaving the profession in search of more work. The same is happening to Real Estate Agents where many have left in the search for steady income. But the facts of life are we are all in this together. Unemployment Rates are set to rise from 4.2% now to approximately 6% by next year which is the highest in over a decade. If you look back we have just come off a period of relatively easy money. Home owners only had to sit on their assets and they were making money every day. This stimulated the economy and money was flying in all directions.
But what’s happened now. Interest rates, petrol prices, house prices, commodity prices although easing back now went through the roof. This practically stalled the economy and has put the brakes hard on the house prices. It’s fair to say there have been many other factors leading up to the current economic climate that we are facing. I don’t need to go into it as we are inundated with it constantly in the papers and on the news.
You’ve probably heard the saying “There are three types of people in the world, those who make things happen, those who watch things happen and those who wonder what’s happening!” Everyone has varying degrees of how they pay attention to the world around them. Depending on your level of attention, you’ll notice the opportunities. If you’re the type of person who pays attention at a very high level, you’ll tend to see more opportunities and therefore make more things happen. If you’re the type of person who just pays attention to what they “have to” to “just get by,” then chances are you may notice a few opportunities, but for the most part you’ll tend to notice other people making things happen and then you’ll join in. If, however, you’re the type of person who doesn’t pay attention at all, you’re not going to even notice the opportunities, you’ll occasionally notice other people making things happen, but most of the time you’ll wonder what’s happening.
I believe that in the coming year there will be amazing opportunities coming up for people who are paying attention to what’s happening now. Mortgage rates are falling and are falling faster than ever before. House prices have fallen by 10% in most area since their high in September to November 2007. There are people crying out for help financially and if you’re paying close attention to the financial position of the world you should be able to see some opportunities that can and will benefit you in the future.
November 25 2008 | Uncategorized | 4 Comments »
BNZ is throwing down the gauntlet to other banks in slashing its lowest mortgage rate today to below 7 per cent.
The ‘mortgage rates war’ was a key battleground four years ago when BNZ and ASB went at it hammer and
tongs in the spring of 2004.
That tussle over 2 year fixed rates gave the housing market a second wind that did not run out until the end of 2007 and hamstrung the Reserve Bank’s efforts to slow the economy.
The difference this time is that the battle is around the variable and 6 month rates and could restore some the Reserve Bank’s monetary policy powers and lift the economy as it heads towards a difficult 2009.
BNZ has announced a new 6.99 per cent 6 month mortgage rate that makes it the lowest in the market, beating even Kiwibank’s lowest rate of 7.29 per cent for one year and Westpac’s lowest rate of 7.19 per cent for 18 months. ANZ and National’s lowest rate is 7.3 per cent for one year, while ASB’s lowest rate is 7.35 per cent for 6 months.
BNZ’s new one year rate is 7.29 per cent, down from 8.29 per cent, while its 2 year rate is 7.35 per cent, down from 8.29 per cent.
This latest competitive first strike ahead of an expected 100 basis point cut in the Official Cash Rate next Thursday to 5.5 per cent has increased the competitive intensity that is likely to drag many 2 and 3 year fixed rate borrowers down towards a 6 month or variable rate as interest rates drop quickly. Most economists see the OCR falling as low as 4 per cent next year, meaning the variable and short term mortgage rates are likely to drop to 6-7 per cent.
Some economists, including Goldman Sachs and Deutsche Bank, are now forecasting a 150 bps cut on December 4.
Source: New Zealand Herald Online
What does this mean for us – the consumer?
Well the big thing is a saving in your mortgage which in the current economic times is going to help so many people in New Zealand. On top of falling mortgage rates we have falling petrol prices, falling commodity prices. But it doesnt just stop there. The total global downturn means the price of everything goes down such as our New Zealand Dollar which is hovering around the .50c USD mark. Our houseprices are no exception. With many houses dropping in value of up to 10% and some predict even more, some people are struggling to find the cash they once had to make the moves or fund things in the way they used to before.
This is a testing time for many people but the big thing today is that interest rates are falling. We will be recieveing more tax cuts from the national government and a big thing for many kiwis over the summer fuel is alot cheaper. Many people are sitting tight as interest rates are expected to fall further. Talk to a mortgage broker if your financing at the moment. They can offer great sound avice for the future. It is an interesting and will be a tough road ahead but I am sure if we remain smart we can ride this financial storm out alright.
November 24 2008 | Buyers and Sellers and The Market | No Comments »
All original posts are below. All new posts are above. This will contine to be a great blog.
Go to my other blog in the mean time. 
November 24 2008 | Uncategorized | 2 Comments »
In the Past four posts I have spoken about The New Zealand Villa, The New Zealand Bungalow, The Art Deco Era and the New Zealand State House. Now we move into the transitional era of housing for New Zealand (1960’s -1980’s). This is the time when we saw the beginning of the developer driven construction. Houses of this time we still built by qualified builders but there were some compromises the durability of materials used. For example pine or particle board flooring material was used instead of tawa or matai, window frames were made from aluminium and many buildings used artificial weatherboards.
Houses of this time were very much family orientated. This was the time when many of the baby boomers were in the prime of their child bearing ages. One of the major reasons of this time becoming developer driven was because of this huge demand for family homes to house the baby boomers families. There were a lot of homes all built in a very close time frame. The properties of this time had larger living rooms than previous homes and were more integrated into living areas.
These homes built in this era are considered by many to be the good ol kiwi family home. We all have at some stage of our lives lived in one. Here are a few points on these homes.
Good Points:
· Family orientated, often had larger living spaces for families to congregate in.
· Mostly northern facing and positioned good for the sun.
· The first homes to start having good indoor outdoor flow.
· Were cheaper to construct than all the previous homes, but are easy to modify if needed later in the years.
Not So Good Points:
· Was the first time pressed iron tile roofing was used. Was weaker than other materials but if fitted properly still had good durability.
· Some problems with condensation and insulation. Especially homes fitted with gas heaters.
· Homes were still plain in design and rectangle. Most had a similar floor plan with slight variances.
These homes are a good family home. Although not as grand as any of the previous homes and built with more of a budget in mind they still offer a good solid and fairly cost efficient home to own.
November 24 2008 | houses | No Comments »
In the previous posts we have spoken about The New Zealand Villas and Bungalows and Art Deco, now we get into the era of The State Home (1930’s – 1960’s).
The first state houses in the 1930’s were designed and constructed to the highest possible standard budgets permitted. They were built so that no two houses would be exactly alike, so that their occupants would not be identifiable as state tenants.
Similar sentiments guided the first Labour government’s scheme. State housing areas would contain both better-off and poor workers to avoid the creation of single-class neighbourhoods. As with the workers’ dwellings, each house would be constructed using quality labour and materials, and designed to last for 60 years and more if maintained.
Internal planning was important. Kitchens would face the morning sun and living rooms would form the centre of family life, arranged so that easy chairs could encircle the fireplace. This is the typical design of the New Zealand State House.
Good Points:
· The construction was always done by well trained people.
· Building material was strong, usually brick, matai and tawa – rimu was used as well.
· Eaves were still large which means the homes are very watertight.
· Mostly single storied with simple floor plans.
The Not so Good:
· Properties are usually small and not suited to larger families.
· Style and shape often don’t suit modern lifestyles – no indoor outdoor flow and spate kitchens and dining rooms.
· Bathrooms often face the road and are next to the front door.
These houses are easy to change and are made to last. A well looked after state home can be one of the smartest buys you can make as the costs involved with maintenance can be less than the previous styles of homes.
November 23 2008 | Buyers and Uncategorized and houses | No Comments »
Quite a number of fellow bloggers have asked me how I put the video into my blog at the top in the left hand side. This is how you do it.
First of all you need to create a video of something that you want featured. Then you need to host it somewhere. I have used Youtube to host the video. You will need to create a Youtube account so that you can upload videos and broadcast them. (if you haven’t got one yet I strongly suggest you get one and use it in your marketing) – Its free to use.
Now once you have a video made, and its uploaded to Youtube (or another place where you can create embedding code) you almost there. But if you are using youtube then its very easy and straightforward.
Go to your videos in your profile. And click to watch the video you want in your blog. (If you have just uploaded the video it takes a few minutes for the video to process before you can view it). You then need to go to the section marked ( 1) in the picture. You then need to go to the embed section marked (2) in the picture. Left click the words and then right click to copy the text. Now your finished on Youtube for the time being.
Now go to your voices blog and log into the control panel where you would check your stats etc. Now to get the right things you need to paste the Youtube text into follow this step. On the picture below I have numbered the steps so you can follow visually as well. Now
1. Click on DESIGN
2. Click on WIDGETS
3. In the drop down menu on the left hand side and go to TEXT and click on ADD
On the right hand side the widget will have been added and can now be found at the bottom of all the widgets on the left hand side. This is the widget you will need to add the text to.
In my picture this is numbered (4). Now to open the text box click the EDIT button numbered (5).
From here you need to paste the text you copied from Youtube into this box. This will then look like the picture below.
There is one last thing you need to do. In the picture below I have 4 red circles. READ CAREFULLY This is the most important part. Look at the code you have pasted in and you need to change it. It needs to look like mine. You will need to change the width from 425 to 220 and the height from 329 to 170. (This is the best fit I have found to work in this way.) Once you have done that you need to click the CHANGE button at the bottom of the text box and then SAVE CHANGES which is at the bottom of the widgets. Then view your bog and the video should be playing.
November 22 2008 | Uncategorized | 10 Comments »
In the previous posts I have spoken about The Villa and The Bungalow. Now we move onto the Art Deco (1920’s – 1940’s). This style of home originated in Europe in the early years of the 20th Century. It became widely known following the great Exposition des Arts Modernes Decoratifs et Industriels, held in Paris in 1925 and from which its name was ultimately derived. By the late 1930s it was in its streamlined phase and after World War 2, the International Style, devoid of all decoration, held sway. Many of them built for war people these homes are both built strong and built to last.
People built these homes to express themselves in one way or another. They have great artistic flares and a presence about them that no other home has.
Good Points:
· Mostly Rough-cast over native timber framing; well braced with solid diagonal. If over time the studs do rot the sarking will hold the house together.
· Usually coated with 4 coats of plaster for strength, so are very strong.
· Well detailed flashings and eyebrows over the windows.
· Flat roofs, but used full length industrial profile iron with good flashings, they are virtually leak proof if maintained well.
· Solid concrete foundations.
The Not so Good Points:
· Design not necessarily suitable for modern lifestyles.
· Exits are not well designed for having too many people over.
· Bathrooms are generally small.
Art Deco homes to me are one of the more character homes of New Zealand. There are areas close to where I live that have whole streets of these homes on them and these homes can be painted in very extravagant and bright colours and get away with it. They form a great part in any community and there are some people that really love them.
November 21 2008 | Buyers and Uncategorized and houses | 9 Comments »
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In todays market it is both taking longer to sell your home and harder for buyers finance to be approved. This coupled with what seems prices dropping slightly every month is making for a very interesting and tough market to work and sell in. But there is always ways of making the selling process easier and quicker. The fact is that buyers who are in the market are looking for a good buy – or what they perceive to be a good buy. And usually this is associated with the price that you put on the property compared to the location and condition it’s in. And there is one thing that I have come across time and time again is the emotional attachment a seller has to their home when trying to negotiate a contract.
price you were willing to negotiate to, and sometimes by a lot. This is when it can become emotional and those emotions can get in the way of true negotiating. At this point it is fair to say you need to take a big breath and remember why you were on the market in the first place. And ask yourself is this enough money for me to move on with my life and if not how much more do I need. But you also need to be thinking where is the market telling us the property is at and how much away is this offer. From here you may want to discuss the offer with your agent and work out a plan of attack, whether this is accepting or countering with a counter offer. At the end of the day we can only hope to achieve a fair market price on the day. 
