Christchurch Real Estate

Home Hints – How Do I Decide What To Sell My Home For

It’s important to do your homework before you decide on the asking price for your home. There are several sources of information you can use to work out what your home might sell for.

Your rateable value

The rateable value (RV) provided by your local authority is not necessarily a good guide to what your home might sell for. Some homes sell for a lot more, or less. The value does not include chattels, such as carpet, drapes, light fittings, appliances and built in items that can add to the saleable value of your home.

Your real estate agent

Most agents are happy to do a free appraisal to give you a price they think it would sell for. While an experienced agent will have a good idea of the current market, it is still only their view and different agents could have quite different views. Some may tend to give a higher price to encourage you to sign up with them, while others may give a lower price because it makes the home easier to sell.

Other recent house sales

Try to find out what other homes in the area have sold for in recent months. You can buy this information from QV (Quotable Value). Your real estate agent can provide similar information from the REINZ (Real Estate Institute) database. You could ask the agent to show you similar homes for sale in your area, so you get a feel for the ‘competition’.

Registered valuation

Getting a valuation from a registered valuer may cost $500-$800, but it can be a good guide to how much your home is likely to sell for. The valuer will look at the features and condition of your property, as well as what similar properties in the area have sold for. Ask your lender who they recommend you use.

A registered valuation can be a useful negotiating tool. You don’t have to tell the agent or anyone else what the valuation is, but you can indicate that an offer is under valuation and needs to come up. Or if you are happy to accept an offer at the valuation price you could offer to share the valuation report with the buyer if they share the cost with you.

What will a buyer pay?

Many people think their home is worth more than it really is – but in the end it’s only worth what a buyer will pay. If you overprice your home you could put genuine buyers off. And if a home is on the market for a while without selling, buyers tend to wonder what’s wrong with it. So it pays to be realistic about your sale price at the start.

Is your home hard to value?

If your home has features that set it apart from other homes, such as a view or waterfront location, it may be hard to decide on a sale price. It may be better to sell by auction or tender because you don’t have to set a sale price – instead the buyers bid or tender what they are prepared to pay.

Do you have a large section?

It will increase the value of your property if your section can be subdivided. Check it out with your local authority and if subdivision is possible tell the valuer and agent.

May 29 2009 | Home Sellers and Buyers Guides and Sellers | No Comments »

Home Hints – Should I Sell It, Do It Up Or Rent It?

What are your options?

Before you decide to sell, here are a few things to think about first

• could you get the home you want by renovating or extending instead?
• how much more will you have to pay to get the home you want – can you afford it?
• would it be a good idea to keep your current home as a rental investment?
• if you’re selling so you can retire do you have any other options?

Should you do up or move?

Selling and moving can be an expensive business. So if you like the area but the home no longer meets your needs, renovating or extending may be a good option instead of selling.

On the plus side

You save the cost of moving and selling your home. Estate agents fees could be up to 4% or more of the price you sell your home for – and moving could cost you several thousand dollars. There’s more about costs later on, and a list of costs in the guide Tool kit.

On the other hand

You need to be careful that you don’t overcapitalise and spend more on your home than it’s worth. If you alter your home would this make it better than other homes in your street or area? If the answer is yes, you may not get all your money back when it’s time to sell.

It’s not for everyone

Doing up a home is not for everyone. It can be hard living in a home during renovations, and if you have to move out for a while it can add quite a bit to the cost of the project.

There’s more about renovating in the ‘Building and renovating’ section, and some advice on what may or may not add value to your home.

What will it cost to move?

The main costs you will have when you sell are the real estate fees and your moving costs. But you also need to be prepared to pay some one-off expenses for your new home, for instance if you need to make repairs or buy new appliances and furniture.

Real estate fees

The real estate agent is paid by the seller when the house sale becomes unconditional.

The fees and costs can vary quite a bit from company to company. Some companies charge a base fee plus a commission based on how much your home sells for. Others charge just a commission and some charge a fixed fee no matter what your home sells for.

Base fees are usually around $500 plus GST. Commissions are usually about 3-4% (plus GST) of the sale price, but may work out less for more expensive homes – or you may be able to negotiate a fixed fee. You may also have other costs such as advertising (which you pay even if the home doesn’t sell).

You may be able to get a better deal, especially if you sign up with just one agency, so be prepared to talk with several agents and negotiate the fee. However, the fee is not the only thing you should think about.

Moving costs and insurance

Moving costs vary considerably. You could expect to pay anything from $1,000 to $3,000 to move within the same town or city. It also depends on how much of the packing you will do yourself.

Most contents insurance policies don’t automatically cover your belongings during a move, so you’ll probably need to ask your insurer to give you extra cover for the day. Or the moving company may be able to provide the cover. If you’re planning to do any of the packing or moving yourself, it would pay to check what the insurance will cover.

Should you keep your home as an investment?

Many New Zealanders own a second home as an investment. It makes sense to do the sums and think about the possibility of keeping your current home as a rental property before you decide to sell. It could be one way to start or expand your investment portfolio.

On the plus side

If owning a rental property is something you have in mind for the future, keeping your current home when you move could be a practical way to achieve it. It means you’ll save on the time it would take you to look for a suitable rental property to invest in, you won’t have to pay a real estate fee to sell your current home, and you should have a good idea of what maintenance might be needed.

On the other hand

Not all homes are suitable rental properties. You need to be sure the home will be easy to rent, and that you can get enough rent to cover the costs of keeping it. We can help you work out how much you might need to borrow, and what your loan would cost.

Will the rent cover the costs?

To get an idea of the rent your home might fetch, check similar places listed with local rental agencies. The Department of Building and Housing website provides information on average rents for homes around the country.

You could also ask a rental agency, or property manager, to give you an opinion about how easily your place might rent and what rent you could expect to get.

Ideally your rent should cover your loan and all expenses for the property. You need to allow at least 25% of the rental income for running costs such as rates, insurance and maintenance – and more if you use a property manager.

Would it make a good rental?

You need to try to think about your home in a detached way (which is not always easy).

Ask yourself

• is the home in a good, safe area?
• are there good facilities nearby, such as shops, medical centre, sports grounds?
• is the home close to public transport?
• is it in good condition?
• is it easy to maintain?
• are the grounds easy to look after?
• is it sunny, sheltered and not damp?
• are the living areas a reasonable size?
• does it have 2-3 bedrooms?
• does it have a modern bathroom, kitchen and laundry?
• are appliances and fittings in good order?
• is there a garage or off-street parking?
• is there private outdoor living space?
• how much rent could I expect to get?
• would the rent cover the loan, rates, insurance and upkeep for the property?

If you’ve answered mainly ‘yes’ chances are your home has reasonable rental potential. But you also need to check with local authorities to see if there are any plans for major changes in the area that could affect the property’s future value, such as zoning changes or plans to build a motorway nearby.

Try to avoid ‘having to sell’

It’s best if you don’t have to sell in a hurry. So if you’re making an offer on another home, give yourself plenty of time to sell. And make your offer conditional on your home selling at a price acceptable to you. If you can’t sell by the date set and don’t want to miss out on the new home, ask your lender if you can get ‘bridging finance’ (a short-term interest only loan) to tide you over.

If you’re in a position where you think you may have to sell, it could be a good idea to put your home on the market sooner rather than later, to give yourself more time to find a buyer willing to pay the price you want.

May 28 2009 | Buyers and Home Sellers and Buyers Guides | No Comments »

The State of Real Estate Around the World: No Signs of Stabilization

Our Housing marketis in worse shape than Australia’s but is also likely to avoid as deep a correction as in the U.S. and Europe. The Reserve Bank of New Zealand has cut 575bp since July 2008 to 2.5% in April 2009 but longer-term, fixed mortgage rates have recently begun to rise again due to expectations of a quick recovery and higher interest rates. Fiscal policy has been laissez-faire towards the recession, opting merely for tax cuts as the government would rather not stand in the way of the economy’s structural adjustment. With housing assets 5.7 times the household disposable income, New Zealand property markets are even more leveraged than their U.S. counterparts.

House prices fell 8% in 2008 and are down 9.2% y/y as of April 2009. Some analysts believe the housing market will bottom on an annual basis in 2009. The housing market has already bottomed on a month-over-month basis, with the median price rising from $325,000 in January 2009 to $340,000 in April.

Immigration has revived housing demand and sales have been strongest in the low-end segment thanks to increased affordability. However, new building starts and new home sales remain below the boom levels of 2004 and will likely remain so due to credit constraints, rising unemployment and sluggish economic growth in the year ahead.

To have a detailed look at what has been said about the rest of the world and the state of their housing markets visit this site.

Source: RGE

May 28 2009 | The Market | No Comments »

Home Hints – What Legal Stuff Needs To Be Done

Your lawyer’s job is to protect you by checking contracts, explaining your rights, and making sure the property’s title is in order. They also do the legal work to transfer the property to you (the conveyancing) and register your mortgage on the property title.

They’ll provide advice on things like different ways to own the property (for example as joint tenants), negotiating the price and things you need in your sale and purchase agreement.

They may also help with arrangements for your loan and insurance. And they’ll probably suggest you make a new Will and Enduring ower of Attorney, so your affairs are in good order if something happens to you.

Before you make an offer

You should always seek a lawyer’s advice before you make an offer to buy a home.

They can help you by

• checking the sale and purchase agreement, auction or tender documents
• making sure you have the right conditions in your offer to protect you
• arranging valuations and reports
• advising you on ownership matters and any legal issues
• providing advice on negotiating the price.

If you’re buying at auction or wanting to make an unconditional tender, your lawyer will need to do all the legal checks first, such as checking the title and LIM report.

When your offer is accepted

Once your offer is accepted your lawyer makes sure the conditions in your agreement are met and starts doing the legal work to transfer the property to your name.

The transfer is done electronically using Landonline (the electronic dealing system of LINZ, Land Information New Zealand). Your lawyer signs online on your behalf, so they will ask you to sign a form giving them authority to act for you.

At this stage their job usually includes

• checking the title for any ownership restrictions
• checking the LIM for things like consents, and potential problems
• checking local authority plans to see if any major changes are likely
• checking all the conditions in your agreement are met
• preparing the authority form for you to sign and confirming your identity so they can act on your behalf
• setting things up in Landonline – a lot of the legal work is done in advance
• explaining your loan agreement to you and arranging the mortgage
• checking rates and other costs are paid up to date
• making arrangements with you and the bank for payment of your loan and your share of the purchase price.

Your lawyer will also check the property is insured – this is a condition of your home loan. We can arrange all your insurances when you apply for your loan.

You should never sign an offer or any legal document without asking your lawyer to check it first.

Do a final check

Before settlement day it’s a good idea to do a final check to make sure

• the property is still in the same order
• any agreed repairs have been done
• everything you’ve bought is still there.

If there’s a problem, talk to your lawyer before everything becomes final.

On settlement day

On settlement day your lawyer works to settle the deal and does the transfer of ownership.

This work includes

• doing a guaranteed title search
• liaising with the seller’s lawyer to make sure you receive a clear title
• paying the money to the seller’s lawyer
• ensuring the seller’s lawyer does their side of the electronic dealing
• completing the transfer using Landonline
• final details such as where you get the keys and when you can move in!

The money paid on settlement day takes into account the deposit you’ve already paid on the home to the real estate agent.

After settlement

After settlement the lawyer will

• register the new mortgage and the transfer of the title
• provide you with a statement showing all the purchase details
• send a copy of the title, mortgage and certificate of insurance to your lender
• give you a copy of the title showing you registered as the new owner.

Are you buying with someone else?

There are two main ways of sharing the ownership of a home. You can have a joint tenancy where you own the home together and if one person dies the others take over the ownership – this is the way most couples own a home together. Or you can have a tenancy in common, where you each own a share and can leave your share to anyone you wish in your Will – this is more common when there are several owners. Another option is a property sharing agreement. Your lawyer will advise you on the best way to set things up for your situation.

What types of ownership are there?

Most people buy a freehold home, but there are quite a few different ways to own a home.

Freehold – this is the most common type of ownership. It means you own the land and house with virtually no restrictions on your ownership rights. The term freehold is also commonly used to mean that you don’t owe any money on the home.

Leasehold – with this type of ownership you lease the land and pay rent to the landowner. You own the house but your use of the land may be restricted, and the rent can go up. You can sell the lease if you want to move, but you may need to tell the landowner first.

Cross-lease – this is where there are several homes on a piece of land and all the owners own the land together. Each owner leases the land their home is on from the others for a small cost.

Unit title – you own or lease your unit but common areas (like stairways and parking) are managed by the body corporate.

Company title – if you buy a flat with company title, you buy ‘shares’ that give you the right to live there. The company administers and maintains the block of flats.

Licence to occupy – with this type of ownership you don’t actually own the land or buildings, but you have a right to live there for life. This is the most common type of ownership for retirement villages.

May 25 2009 | Buyers and Home Sellers and Buyers Guides | No Comments »

Home Hints – Getting That Loan

Buying a home is a big financial commitment and is going to impact your life for a good part of your adult life. And usually we don’t have enough money to go out and buy a home. So we need to finance this. What’s this? It’s a loan. When you buy a home you usually need to put in a deposit – either money you’ve saved or equity from another property. The more you can put in the better, because it reduces the amount you need to borrow. Most lenders will ask you to put in at least 10-20% yourself as a deposit.

You can usually take out a home loan for up to 30 years (this is called the loan term). Most lenders will charge you a fee to set up your loan.

Principal and interest

The money you owe is called the principal. With most loans you make fortnightly or monthly repayments and the money is split so that some goes to repay the principal, and some to pay interest to the bank.

Interest is what you pay the lender for the use of their money. It’s always an annual percentage, for example 7% p.a. (p.a. is short for per annum, meaning a year). It’s usually worked out each day and charged to your loan every fortnight or month.

With a long-term loan you often end up paying more in interest than the amount you borrow. But you can make big savings by paying your loan off as quickly as possible.

You can save a lot in interest if you

• pay half your monthly loan payment every fortnight (it means you make two extra payments a year)
• make your payments as big as you can and increase them whenever you can
• keep your payments the same if interest rates go down
• pay off extra when you have spare cash.

To make the most of these suggestions you’ll need some of your loan on a floating rate.

Different types of interest rates

There are three different types of interest rates – floating, fixed and capped, or you can get a loan with a combination of these.

Floating interest rate - this can go up and down when the market changes, so you pay the going rate. This type of rate gives you more flexibility to actively manage your loan, for example you can pay off some or all of the loan without having any extra costs to pay.

Fixed interest rate - this type of rate is fixed at a set level for a certain time. It’s good for people who need certainty about how much their payments will be. If you want to change a fixed rate loan or end it early a ‘break cost’ may apply.

Capped rate - the interest rate can go up and down – but it can’t go over a set level for a certain time. It gives you some certainty about payments and you won’t get caught on a high rate if rates go down.

Combination of rates and terms - you can have the best of all worlds by having part of your loan on a floating rate (an amount you think you can pay off quickly) and the rest on a fixed or capped rate so you have more certainty about how much your payments will be. Or you might want to combine several fixed (or capped) rate terms so not all your loan is due to be ‘refixed’ at the same time. This can help you manage the risk that interest rates are higher when your fixed rate ends.

What types of loans are there?

There are several different ways of paying off your home loan. Most people choose a table loan because it gives more certainty about payments, or a transactional loan because it’s more flexible.

Table loan

With a table loan your regular payments are the same each time (unless interest rates change). At first most of the money goes towards the interest you owe, but as your loan starts to go down more of each payment goes towards repaying the loan itself. This is the most popular type of loan because it gives more consistency to your payments.

Interest only loan

An interest only loan is where you pay all the interest owing each fortnight or month, but nothing off the loan itself. These are usually short-term loans (up to 3 years) to help keep payments low while you are building, or if you need bridging finance while you try to sell another home. You have to repay the whole loan at the end – or get another loan. An interest only loan will cost you more in interest than a table or reducing loan because the principal isn’t going down.

Transactional and revolving loans

With a transactional loan your loan and everyday banking are combined into one account. There are usually no set repayments as long as your loan balance goes down a certain amount each month.

A revolving loan is where you can keep taking the money out again – so it’s like a large overdraft. There’s usually a set date when you have to repay the loan by.

Reducing loan

With a reducing loan you pay a set amount off the loan each time plus all the interest you owe. So your payments are a lot higher at the start than later on. This can save you interest because you pay more off the loan earlier on.

May 24 2009 | Home Sellers and Buyers Guides | No Comments »

Home Hints – What Do I Do When I Want To Buy My Home In New Zealand

Well by now hopefully you have chosen what you want. Done your research and found what you need to find and are able to make an educated decision when it comes to buying your home.

There are three main ways to buy a home

1. by offer and negotiation – you make an offer and then negotiate if necessary until you and the seller agree on a price

2. at an auction – you go along on the day and everyone interested bids against each other until only one bidder is left

3. by tender – everyone interested in buying puts in a written offer for the seller to consider, usually all at the same time.

Most homes are still sold by the first means. But auctions and tenders are often used in sought after areas, or if a home has a special feature, or needs to be sold by a set date.

Buying by offer and negotiation. This is normally done through a real estate agent using a standard sale and purchase agreement. You make a written offer using this form, which the agent takes to the buyer.

If the buyer accepts your offer, they sign it and the form becomes your sale contract. But the seller may want to negotiate and make a counter offer (where they change something in the offer then sign it). The agent will come back to you to see if you agree to the change and if you do, you sign the change and the deal is done. Or you might decide to change something yourself and the process is repeated until an agreement is reached or one of you decides to stop.

The big plus about buying this way is that you can take time to think – and you can put in conditions that let you check the place out before you’re fully committed.

Important things to know

Your sale and purchase agreement is a legal contract. You need to have it checked by your lawyer before you sign it – and if any of the conditions change during negotiation. The agreement becomes binding once both you and the seller have signed it and initialled all the changes. You can stop negotiating at any time up until then.

You can take your time. You don’t have to have everything agreed in one day or evening – although this is what the agent may be hoping to do.

If the seller changes something, you can change the offer. So if the price goes up you may want to extend the settlement date or ask for something else to be included in the deal. Or you may want to make your offer more attractive without raising the price by taking some conditions out.

Paying a deposit to the agent

Once everything’s agreed you pay a deposit of 5–10% of the sale price to the agent. The rest of the money is paid on settlement day. The agent pays the money to the seller when your offer becomes unconditional (when all the conditions are met and the sale is definitely going ahead). You get your money back if the sale falls through because the conditions are not met. Butyou can’t usually get it back if you want to back out after everythingis unconditional.

The deposit is held in a trust account and is protected by law. No one can take it if the real estate company goes broke and there’s a fidelity fund to cover missing money.

If you’re buying privately

The process is much the same if you’re buying privately but it may be more difficult negotiating directly with the seller, especially as they may be expecting more from the sale. It’s very important to use your lawyer at each step. If you buy privately, pay the deposit to your lawyer so they can arrange for it to be held in a safe trust account.

The sale and purchase agreement

The agreement mainly used these days is a standard one created by the Real Estate Institute and the Auckland District Law Society. It’s about 10 pages long and in small print, so you may want to get a copy from your agent and read it in advance so you understand

what’s in it.

It covers things like responsibilities under various laws and what happensif settlement is late – and lets youinsert your own dates, amountsand conditions.

Is your offer conditional?

Making your offer subject to conditions gives you time to check that everything’s okay. If your conditions are not met you don’t have to go ahead, or you can renegotiate – for instance you might be happy to do repairs if the price is lower. It’s very important that your lawyer checks your offer and any conditions you add. The other thing to remember is that too many conditions can put a seller off.

Is your offer unconditional?

If you make an unconditional offer you need to sort out your loan and everything else beforehand because once the offer is accepted you have to go through with the sale. If you break the contract you can be sued.

Sellers can add conditions too

Sellers can also add conditions, although this is less common. One you may see is an ‘escape clause’. This means if they get a better offer they can give you a deadline to make yours unconditional. If you can’t meet the deadline they can accept the other offer.

Important dates

Your offer has several dates in it. The finance date is when you need to have your money arranged by and settlement date is the day you take over the home. I suggest you put in a date that your offer ends if the seller doesn’t accept it – that way you’re not left

wondering while the seller possibly waits for a better offer.

This offer is subject to…

Here are some common types of conditions buyers add to the agreement.

• finance – this gives you time to arrange your loan. Make sure it says finance on terms satisfactory to you or you could be forced to borrow on terms you don’t like

• title search – so your lawyer can check there are no problems with the title, or restrictions, covenants or easements you need to know about

• valuation report – so you can check the market price. Your lender will probably want you to get one anyway

• LIM report – so you can check what the council knows about the property and make sure there are no problems with things like consents or flooding

• building inspection report – so you can check the building is sound and find out about any problems that might cost money

• engineer’s report – so you can check any structural or land issues

• sale of another home – if you need to sell one home to buy another.

You might also want to add other conditions covering things like repairs they’ve said they’ll make or extra items they’ve agreed to leave.Your conditions need to state that the report, finance or repairs must be satisfactory to you. Otherwise you will still have to go ahead even if you’re not happy with the results.

Your lender will need to see the sale and purchase agreement after the deal is done. But talk

to them beforehand to check if they have any specific clauses they want added.

My advice is to always get legal advice and get the agreement explained to you before signing anything. Although I myself think this is annoying when your trying to secure a deal I honestly believe this is the safest thing to do. An agreement is binding and I would hate to think that your going to be bound by something you dont fully understand.

May 23 2009 | Buyers and Home Sellers and Buyers Guides | No Comments »

Home Hints – Things You Need To Look Out For Before Buying Your Home

When you have decided on a house you need to take a good look at it and make sure that you are going to be buying it in a reasonable condition (do a building inspection) – this is where every dollar counts because there are some things that can be a disaster for you and cost you thousands if you do not look into them properly. If there is anything wrong with the property it is always a good idea to know what it is before you go into putting offers in. You will need to budget for these other things into the amount you can afford for the house. For example if it needs a new roof you should not pay a rice for the property that is assuming it has a good roof.

Here are things to look for:

 

 

 

May 21 2009 | Buyers and Home Sellers and Buyers Guides | No Comments »

Home Hints – What Are The Things To Keep In Mind When Buying Property

Once you’ve found a home you’re interested in you’ll want to check it out carefully. It really is a case of buyer beware. You don’t want to end up with a lemon, or costs you hadn’t planned for. Here are some ways you can check out the place you’re interested in.

 

1. Check the place out

When you visit a place you like, take your time. Go back several times. Ask the agent lots of questions, and do a thorough check for things you may have to fix or want to change.

2. Contact the council

Ask your local and regional councils for information about the area and any future plans. Talk to the town planners (and ask them if there’s anyone else you should talk to). Ask about the district or resource plan. It sets out the rules for development in the area, including zones and building heights. You can also get things like drainage and building plans and copies of permits for the property from your council.

3. Apply for a LIM report

A Land Information Memorandum (LIM) from the local authority gives you all sorts of valuable information about drainage, roads, flooding, erosion, consents etc. There’s a charge for LIM reports and prices vary around the country but you can expect to pay around $150–$350 (costs are generally higher in the larger cities and you usually pay more if you need an urgent report).

While LIM reports can contain a lot of valuable information they may also be missing vital bits (such as accurate boundaries, or mention of Wahi Tapu or sacred sites), so it’s a good idea to also talk with the staff and try and find out what other information the authority may have about the property and its neighbours.

4. Get expert advice

Get a report on the property from a licensed building surveyor. Make sure you choose someone with a good reputation and ask them what their report will and won’t cover. Also ask them to give you an idea of what it might cost to fix any problems they find. If there could be any problems with the land or large structures you should also get a report from an engineer.

You my also want to check with the Weathertightness service (see the Useful contacts section) to see if there has been a leaky home claim for the property.

5. Check the title to the property

This will tell you if there are any restrictions that could affect your ownership or use of the property. The agent should have a copy of the title. Also talk to your lawyer about the title and any other checks they think you should do.

You might also want to ask your lawyer about title insurance. It could help protect you if you find later on that the boundaries are wrong or there has been illegal work done on the property.

Is the home in good order?

Before you buy a place you want to be sure it’s in good order, or at least know what repairs are needed and how much they may cost. Your best protection is to get a report from a building consultant. But you probably won’t want to pay for a report until you’ve done some checks yourself and are fairly sure it’s the home you want.

 

Here are a few pointers

 

When you check the home look for structural problems, or things like rotten wood or leaks that can be difficult and expensive to fix.

Signs of movement and sinking include cracks in walls and doors or windows that are crooked or jammed. Rotting or borer filled timber is soft and spongy. Rotting wood sounds ‘dead’ when you tap it and crumbles if you push a key or something sharp into it.

Signs of leaks include mould, mildew and bulges in the wall. Often the place will smell musty as well. Musty or unpleasant smells can also be a sign of problems with the drains or sewerage.

Be wary of fresh paint and plaster especially if only some areas have been done up – it could well be covering up a problem. Furniture and pot plants can provide good camouflage too, both indoors and out, so don’t be embarrassed to look behind or under them.

 

Some common problems include

 

• poor ventilation and lack of insulation

• lead paint and asbestos problems

• dangerous wiring

• deterioration in wall claddings and roofs

• rotting timber windows

• perishing seals on aluminium windows

• breakdown of silicon sealers

• leaky homes.

 

How much will maintenance cost?

 

The cost of repairs and maintenance depends on the age and condition of the home. But you’ll probably need to allow at least $3,000-$5,000 a year. It doesn’t mean you’ll spend this much every year. But over the years you will have maintenance costs, sometimes quite big ones, and you need to be prepared for this. Here are some rough estimates based on an average size home.

 

 

May 19 2009 | Buyers and Home Sellers and Buyers Guides | No Comments »

Home Hints – Where Do You Start When Looking To Buy Real Estate In New Zealand

How do you find a home?

 

Once you know what you want and can afford, you want to get a ‘feel’ for the market. You could start by

• searching the Internet – try trademe.co.nz or realestate.co.nz

• reading the papers – weekend papers often have lots of adverts

• driving around areas you like, looking for ‘For Sale’ signs and open homes

• looking at homes in real estate agents’ windows, or on their websites.

 

Real estate companies

Many people find their homes through a real estate company. Often homes are only listed with one company, so ask agents from different companies to show you suitable homes. If a home is a ‘sole agency’, only that real estate company can show you the home. A ‘general agency’ means the home can be listed with a number of companies.

 

Private sales

Not all homes are listed with real estate agents. Some people try to sell their homes privately and they may use a ‘private sale’ company to help them with marketing. Don’t assume a private sale means you’ll pay less – the owner may be trying to get more from the sale by not paying an agent – and dealing directly with the owner may be quite stressful.

 

Finding it yourself

Some homes never come on the market. If you know where you want to live you could put a short note into letterboxes in the area, ask locals if they know of anything coming up, or even put your own advert in the paper.

 

Things To Ask Your Real Estate Agent if you use on (Just a Hint – A Real Estate Agent if your buying a property can be your best friend if you know how to use them properly, but speaking from experience you need to know how to ask the right questions as at the end of the day the agent is working for the seller).

 

• why are the owners selling the home?

• how long has it been on the market?

• how much interest has there been?

• what is the Rateable Valuation?

• how much are the rates?

• what are the properties nearby worth?

• what have other places nearby sold for recently?

• what are the neighbours like – do they have children, pets, or noisy parties?

• what facilities are in the area?

• what are the schools like, are they zoned?

• is the house north facing (for sun)?

• when does it get the sun?

• what is the prevailing wind direction?

• is the home sheltered?

• is there noise from traffic, trains, planes?

• is there a danger of flooding or erosion?

• are there any major redevelopment plans for the area?

• are there any zoning restrictions?

• what type of title (ownership) does the property have?

• are there any covenants (restrictions) or easements (rights) on the title?

• are there any protection orders over the trees or buildings?

• where are the boundaries?

• is the home suitable to renovate?

• could the section be subdivided?

• does the home need any urgent repairs?

• has this home been a ‘leaky home’?

• have there been any alterations – do these have consents and certificates?

• has it been re-piled, re-plumbed or rewired – and when?

• what heating and insulation does it have?

• what fittings are being sold with the home?

May 18 2009 | Buyers and Home Sellers and Buyers Guides | No Comments »

Home Hints – How Much Can You Afford?

How much can you borrow?

The amount you can borrow depends on

• the value of the home you want to buy

• how much equity or deposit you have to contribute

• how much you can afford to pay towards your loan.

These things all need to balance, so if you can afford a bigger loan you may need less equity or deposit.

How much is the home worth?

How much you can borrow is based on the market value of the home. Every lender has different lending guidelines but most will let you borrow up to

• 80% of the home’s market value (or the price you pay, whichever is less) depending on your situation. In some cases you may be able to borrow more.

• 70% for a purpose built apartment, or up to 65% for a converted apartment

• 40–70% of the land’s market value for a section depending on the area and services such as water and power.

What equity or deposit do you need?

Generally you need to have put in at least 10-20% of the money yourself before you can get a home loan – this is your deposit. It depends on the value and location of the home and your financial situation. This money could come from either equity you already have in a home, from a deposit you have saved, or from being in KiwiSaver.

The word deposit is also used to mean the money you pay the real estate agent as the down payment on your home.

What about KiwiSaver?

If you have been saving with KiwiSaver for at least 3 years you may be able to take out some or all of your contributions (plus your employer’s contributions) to help you buy your first home. After 3 years of saving you might also get a Housing New Zealand first home subsidy of up to $5,000 depending on how long you’ve been saving. If you qualify you’ll get $1,000 a year for up to 5 years’ saving. Couples who both qualify could up this amount to $10,000 between them. To qualify there are certain income and home price levels.

What if you already have a home?

If you already own a home and want to sell it to buy a new one, you can usually use the equity in your current home as the deposit for your new one. Equity is the portion you own yourself after your home loan is paid off.

Or you may be able to keep your current home as an investment and use some of the equity you have in it to buy another home. If you’d like to find out more about investing in property and whether your home might be a suitable rental home.

 

What loan can you afford?

There’s no easy way to work out what you can afford – because everyone’s situation is different. You might like to start by doing a simple budget so you know what your current situation is and how much you might be able to afford to spend on a home loan. There’s a budget worksheet in the tool kit at the back that you might find useful.

Most lenders say your total loan payments (for all debts) can’t be more than about a third of your income before tax. But they also take your other expenses into account and want to know that you have spare income left over for unexpected expenses – and so you can still have a life after buying your home.

Here’s a quick guide…

 

 

May 17 2009 | Buyers and Home Sellers and Buyers Guides and Uncategorized | No Comments »

Home Hints – What Type Of House Do You Want To Live In

After you think about the area you want to live in you need to decide what type of home you want to live in. Sometimes this can change the area you will need to look in so you need to get this step sorted out relatively early so that you can get it right so that you are not left at the drawing board for too long. Here are some of the things you have to ask yourself and think about when trying to decide what type of home you want to live in.

Would you prefer an older home?

An older home can provide character in an established setting. Rooms are often large with decorative details. But don’t get carried away with the character and forget to think about the work and money that might be needed.

Here are a few things to consider

• older homes can be hard to heat – they often have no insulation

• the layout may not suit modern living – often the living rooms are at the front, away from the kitchen and private garden

• it can be hard to know what’s ‘behind’ the walls, so alterations can be expensive – builders may want to work for an hourly rate instead of giving a firm price

• the age may mean wiring, roofing, piles and plumbing need replacing

• sometimes even if you want to make small changes you’ll end up having to do other work to get consent

• some renovations need special care – asbestos products were used until about 35 years ago, and some paints contained lead until about 15 years ago.

Check everything carefully, get expert advice first, compare as many homes as you can – and ideally find one where the major work has been done for you.

Do you want a new home?

New homes are generally well insulated, need little maintenance and have modern kitchens and bathrooms. But you may have the extra costs of landscaping, buying curtains and carpets, and commuting. A new subdivision can take a while to start to look established. If you’re keen to build, read the section on building and renovating later

Do you want an apartment?

Living in the city is popular and an apartment can be the ideal first home or retirement unit. An apartment can provide convenience, security and less maintenance, and make it more affordable to live in a good location.

On the other hand, a small two bedroom apartment with no parking or outdoor space in town can sometimes cost more than a three bedroom home further out. And not all apartments are good investments.

Apartments in older converted buildings can be a problem and make finance and insurance harder to get. Why? Because older buildings may need expensive maintenance, and many earlier conversions were poorly done by people out to make quick money.

There can also be problems with newer apartments, for example with building quality or sound proofing. And in some areas the large number of smaller, poorer quality apartments built has affected prices.

In general it’s not a good idea to buy ‘off the plans’ in a new complex where you have no proof of the finished quality. Some owners spend years getting problems sorted out.

Many people say they love apartment living and it’s one of the best moves they’ve made. But there can be pitfalls so it’s important to do your research and get good advice first. Here are a few tips to get you started

• talk to your local authority and ask them if they know of any problems – they do all the consents and inspections

• get advice from an independent valuer with experience of apartments in the area you’re looking – don’t rely on a developer’s valuation

• choose buildings by local architects, builders and developers with a good track record

• be wary of buildings where apartments often come up for sale – there may be problems with the building or the body corporate.

When you’re looking ask

• is there enough space to suit your lifestyle and belongings?

• does the home have the features you want? Use our checklist over the page

• does it have storage and parking? Can you get in and out of the park easily?

• does it have good safety and fire prevention features?

• will noises and smells from the area bother you? Visit at different times to make sure

• what happens to the rubbish? Check it’s not stored near your unit

• can you hear the neighbours? Check for living and plumbing sounds at times others are home

• is there a live-in manager? If there is, meet them and ask how things run

• what work has been done recently and is there money put aside for new work?

• have there been any problems with the apartment or the complex, such as leaks, and what has been done about them?

• what are the body corporate rules and the levies you have to pay?

• is there a fund or savings plan to cover large maintenance work?

• what are the other owners like – are they mainly owners or renters? This may affect how quiet and well kept the complex is

• what is the area like – how is it likely to change in the future?

What’s the body corporate?

Most apartment complexes have a body corporate. All the owners belong and pay a levy to cover building running costs and maintenance. The group is responsible for looking after common areas such as stairs, hallways, garaging, car parks and grounds. It also sets the rules for the complex and these can affect what you can do with your unit (for instance you may not be able to alter your unit or run a business from home). Every body corporate is different and it’s important to find out how it works and what the rules are, because it can affect both your use of the property and the value of your investment.

May 16 2009 | Buyers and Home Sellers and Buyers Guides and houses | No Comments »

Home Hints – Where Do You Want To Live?

By now if you’re looking to buy a property you will have been told about the saying, Location, Location, Location. But why do people go on about this so much? Why is it so important?

Well your home is one of the biggest assets most people will ever buy in their lives. It is therefore important to be happy with where you live because if you’re not happy you can’t pick the house up and move to somewhere better. You have to go through the whole process of selling which is both expensive, time consuming and stressful.

When you look for a house to buy you need to look for a house in the most desirable area your money can afford. Desirable areas hold their value better because others want to live there, and when prices do increase the more desirable areas tend to rise first and faster than other areas. Also you will be likely to get the money you invest initially back.

How do you find a good area?

·         Talk to family and friends about the areas they live in.

·         Ask real estate agents and valuers about local sales in the areas, price and sales volume trends. Look for areas that are selling fast and with holding values in this market.

·         Look for areas with good facilities such as transport, shops, schools, cafes, sporting venues and entertainment for the family and yourself.

·         If you’re looking in an older area of town look at the places that are getting renovated – and if it’s in a new area look for signs where people are taking the effort to make homes look loved, i.e. landscaping and variety of design.

·         If there is variety in landscape where there is flat land with water and views, this will always sell well.

When you decide with is important for you in an area and what would suit you look at the pro’s and con’s of where you’re living.

Here are some things to consider:

·         How close do you want to be to work, family and friends.

·         Are you prepared to commute – what will be the costs.

·         Do you like to be in a quite location or in the heart of the action.

·         If you’re preparing to run a certain activity from your home, will the zoning allow you to do this?

·         What sort of people do you want to be living amongst, do you want to be in newer homes or older homes.

At the end of the day you need to look at lots of homes in many different areas to get a feel for what you like and can afford. A home to buy and live n is not a short term thing, so bearing that in mind you need to keep in mind what will the area I like now be like in the future. In order to do this you need to check the zoning for the area with your local council and ask if there are any changes planned. You want to be sure the area is still going to be a nice place to live in the future. Zoning allows and restricts activities that can happen in an area, such as running factories or businesses. An area may seem quiet now, but if it’s zoned commercial you may find yourself surrounded by businesses later on.

Here are some of the advantages of investing in property

 

• If values go up you’ll make a gain

• There’s usually no tax on capital gains (the profit you make if the property goes up in value)

• Many people are better at paying off loans than saving

• You could make money by buying carefully, or with some types of renovations

• It’s a relatively low risk investment that should keep up with inflation

• You own your home and end up with an asset instead of just paying rent.

 

But you need to look at the options that are available to you.

 

• Other investments may earn more

• Property prices can go down as well as up

• It may take time to sell – if you’re in a hurry you may have to accept less

• You have ongoing extra costs like maintenance, rates and insurance

• If you don’t keep your home in good order its value may go down.

 

If buying a property is what you want then to make the most of your investment

 

• buy in the best area you can afford (buying the worst house in the best street is still good advice)

• check everything out thoroughly first to avoid problems (there’s a checklist later)

• keep your home well maintained

• get advice from a valuer before you do any major alterations – changes don’t always add value.

May 15 2009 | Buyers and Home Sellers and Buyers Guides and Sellers | No Comments »

Has The Recession Hit!

I am not going to harp on about any statistics or any comments made by the so called experts. All I would like to see here is a real discussion on what you actually think and what your actually seeing out there on the streets. For several months now I have speaking directly to business owners and I have seen a very clear trend with most of them. The exceptions being liquor stores and video stores .I will explain soon.

In my time speaking to businesses there has been a very downward spiral in their sales. Since Easter there has been a drop off to very slim pickings in terms of sales. I have even noticed this within the business I have been working where I have noticed sales drop to half of what they were 4 months ago and we haven’t been alone in this. I have had almost all of the 400 businesses I am dealing with say the same thing except for those exceptions I said before.

You don’t have to be a rocket scientist to think that its hard out there now. Just drive down the main street of Christchurch or any City in New Zealand and see how many businesses are closed down and how many shops are closed.

Is winter going to be a downturn in the masses where we see much more the redundancies that we are already seeing. From what I see most business owners have less money. The waged people are safe until their employer can’t pay them anymore which is seeing most keep their hands in their pocket when it comes to spending and only spend limited amounts when they need to. This is why the liquor stores and video stores seem to be doing well as people must be staying home drinking and entertaining.

In your observation what are you seeing. Have you been in or are you in a situation that is causing you to budget. Please leave comments, let us know what’s happening out there on the ground.

May 13 2009 | The Market | 1 Comment »

Internet Marketing For Real Estate – Is It Worth The Fuss?

Internet marketing is a tough question on its effectiveness and if it actually works or not. For some people it works wonders, and for some its just not worth the time you put into it. I believe in internet marketing and I believe that it will play an increasing part in the way Real Estate is searched and found in New Zealand. I am not just talking about the major portals such as realestate.co.nz but I am also talking about the individual Real Estate Agents that advertise their own listings on their websites.

Some people spend so much money and time on a website that is a stagnant page that does not alot for that person. You need to be able to gather information from all your visitors and actually follow them up.

I found a good article that stimulated me to think and I wanted to share it here with you. From Joe McFerrin streetdirectory

Internet Marketing for Real Estate can be both an effective real estate marketing endeavor or it can be the worst idea you have ever tried out to build your real estate business. Internet Marketing for Real Estate is a whole new ballgame in itself, so be prepared to be an astute learner to gain the most from the experience.

The main purpose of any Internet Marketing for Real Estate campaign is to help you get the leads you need to be able to make a prospects list. This prospect list is composed of people you believe have the potential to become customers for you eventually. And this means managing traffic to your website appropriately.

Internet Marketing for Real Estate websites have to be useful somehow to visitors. Visitors who get disappointed by your website will never return and since you know how hard it is to get a person to visit in the first place, your Internet Marketing for Real Estate website has to offer as much information pertaining to the real estate biz as you can fit in without making your site look cluttered or disorganized. This leads us to the next tip.

The right Internet Marketing for Real Estate campaign will work if you snare the attention of visitors as soon as they enter your site. Yes, first impressions definitely last – but for them to lead to a possible sale, you have to have follow-through as well.

To produce follow-through, try examining your Internet Marketing for Real Estate website as if you were yourself just a visitor: what do you see? Do you just see a website like any other, or do you see a website that would attract people interested in real estate, that provides information that is actually usable for them, and that tells people the owner of this website is the person they should look for when trying to buy or sell real estate? Hopefully, it would be more of the latter for you.

When visitors drop by and leave a note, what is your Internet Marketing for Real Estate follow-through? Do you just take note of them then drop their names into a giant database to be swallowed up and forgotten forever? If you are a true follower of Internet Marketing for Real Estate follow-through techniques, you should follow through by sending them a message at whatever contact address they may have left. If all they left was an email address, that is okay already. You can start by sending them a thank-you email for visiting your website and tell them that you hope they will agree to be part of your subscription list for your business-oriented newsletter. It is always part of ethical Internet Marketing for Real Estate practice to ask before adding anyone to an emailing list – think of it as good etiquette for real estate agents.

Your Internet Marketing for Real Estate website would be incomplete if all you have are the same static content to showcase day in and day out. This means that your Internet Marketing for Real Estate articles on the website should always be updated, maybe even replaced when necessary, so that visitors get intrigued and come back for more. The better the service you provide this way, the more visitors will want to read and learn about what you have to offer.
Internet Marketing for Real Estate may be misused in one way though, and that is by using too much data that visitors get glassy-eyed and click on the mouse to find a less burdensome site to visit. It is tricky, this Internet Marketing for Real Estate campaign work, so you need to have a good sense of when you are overdoing the content.

If you want to add a personal touch to your Internet Marketing for Real Estate website, you may want to use a blog on your website as well. This helps visitors see things through your eyes.

May 11 2009 | Uncategorized | 2 Comments »

Twitter (This One’s 4 U Peter) – “And Max It Will Help You As Well”

Twitter is more than three years old, (quite an oldy actually) and it’s been featured everywhere from the New York Times to ABC News and is being used for so so many uses its not funny. Now Peter this is why you should be using Twitter  – here are four reasons, off the top of my head:

       Â
          It’s a great way to share your message  

          It’s a great source for information and news about your industry  

          It’s a great way to connect with potential customers AND potential partners  

          It’s a great place to go to research your marketÂ
       Â
          …those are just a few of the benefits!
        But to get the MOST out of Twitter for YOUR business, you need to understand
how to find people to follow, how to get followed and how you actually interact in a way that will make the most out of your time.
        Here are three ways to look for people to connect with:

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                  Go to Twitter Search, and enter your keywords or words  related to your product
or industry into the search bar. (in our case it could be Real Estate New Zealand or Auckland Real Estate or even narrow it down to Takapuna Real Estate) Twitter Search will then show you all the “tweets” that include those terms, and the people who wrote them – instant way to find clients talking about what you can give tem. You can then click through to their Twitter profiles, and see if they are someone you’d like to follow and then maybe you can contact them and talk business.
                  Look through the “Follows” and “Following” lists on anyone you follow to see
if you spot anyone interesting!
          Watch the conversations in your Twitter stream (You can tell who people are talking to from the “@TheirNameHere” in each tweet) and if you see people having an interesting exchange, follow them, or get involved in the conversation by using the @ function yourself! In fact, if you see an interesting tweet, you can reply automatically by clicking the little arrow within the tweet box.Â
        

        But it doesnt end just there. Once you have followed some people, here are four quick tips to make your Twitter experience more enjoyable – and to connect more effectively with other users!

      Â
                  Don’t ask people to follow you: People who request that others follow them usually don’t succeed at getting ANYONE to pay attention. Be interesting and engaged in each of your tweets, and be responsive to others and people will follow you (or follow you back) because you add value to THEIR   stream.

                  Focus on sharing information – not on making a pitch: As with any social media platform, you want to build credibility and relationships – instead of pushing for a sale.
                  If you see someone post a link you like, “re-tweet” it: It’s easy – just copy their whole message (including their name), paste it into a new tweet, and add RT at the beginning. This is a great way to show someone you value what the have to say enough to share it with your community.Â
                  Pay attention to how other people use Twitter: One of the best ways to figure out your place in a community is to follow in the footsteps of people you admire.

May 07 2009 | Uncategorized | 2 Comments »