Archive for the 'Buyers' Category
Here is an interesting article from the Herald Website:
Baby boomers are returning to the housing market in droves – but younger first home buyers are still doing it tough.
Mortgage applications last month were up 38 per cent compared to the same month last year, and were the highest monthly total since November 2007.
The information was supplied by credit information firm Veda Advantage.
Baby boomers (44-62 years old) in particular appear to be showing a disproportionate interest in the housing market, with a 45 per cent increase in mortgage applications on March 2008.
Generation X (28-43 years old) experienced a 34 per cent increase, while Generation Y (less than 28 years old) had the smallest growth with a 16 per cent increase on March last year.
“We are experiencing a level of activity in mortgage applications that we have not seen since house prices began falling in late 2007″, said Veda Advantage (NZ) chief John Roberts.
“This activity reflects the lower interest rates stimulating demand, and shows the market going to fixed terms to lock in these rates.”Roberts went on to say the much larger increase in the number of baby boomers applying for mortgages, compared to younger age groups, suggests that they are more cashed up and in a better position to snap up perceived bargains in the housing market. Generation Y have increased only marginally over March 2008
My take on this is people in general have been taking advantage of the lower interest rates avaliable at the moment. But the big point to consider is that now because of the lending criteria being so tough ie 20% it is hard for the younger people (gen y) to get the loan. Naturally the older generation of people have a bit of money behind them, possibly in equity and or savings. Leaving the younger generation with out of the equation.
Most of the older generations of people (generation X and the Baby Boomers) will probably have their own properties already and could be buying an investment property to fill up their nest egg for retirement.
My question to you is… Due to the current trend we are seeing here are we going to see a huge influx of rental properties come up for rent soon and in 10 to 15 years time when these older generations come to retirement and cash in their nest eggs, are we going to see this influx of rental properties come to the market again?? Makes you think doesnt it.
April 07 2009 | Buyers and The Market | No Comments »
Today I read a very interesting article on stuff.co.nz about an Auction that a good friend of mine Roland Lina conducted last night in New Plymouth. It highlights a good point about what is happening in the market. The article reads as follows.
Three words are dominating Taranaki’s real estate pages “sell, sell, sell”.
As house prices and interest rates continue to plummet desperate vendors trapped in mortgages they can’t afford are looking for creative ways out.
Last night at Harcourts New Plymouth an auction attracting almost 100 people sold an expansive Heta Rd property for almost $120,000 below its government valuation (GV).
Advertised as a pre-mortgagee sale under the title “beat the bank” the six bedroom, 1582sqm, 2 1/2-year-old home had a reserve price of $380,000, was valued at $680,000 and sold for $566,000.
Auctioneer Roland Lina said the days where you could simply “nail a sign to a fence” and a place was sold were over.
“I can assure you if we had advertised it for $600,000 it would still be on the market,” he said. Having worked in real estate for 18 years Mr Lina said clever marketing was needed to get the best price and houses off the books.
Several bidders at the auction said they had come in the hope of getting a bargain but expected the “marketing ploy” would push the price way past the low reserve.
Other advertisements on both Trade Me and in real estate publications are littered with phrases such as “lawyer says sell”, “priced to sell fast”, “bank wants all offers presented NOW” and “Crunch Time!!”
Thought of as existing in a bubble, mortagagee and pre-mortgagee sales are starting to creep on to the region’s real estate market.
Industry insiders report a rise in the number of people forced to default on mortgages they got into when interest rates were as high as 9.5 per cent.
Nationally mortgagee sales listed on websites Trade Me and realestate.co.nz have more than doubled in the past year.
The country’s increasing unemployment has been blamed for the mortgagee sales.
The last comment here is one that doesn’t go down too well with me. Sure enough unemployment is one of the reasons there may be some mortgagee sales but if you get into the nitty gritty of it most of the people that have mortgagee sales at the moment are still on high interest rates. And after talking to a few people in that situation they simply say they canot afford with the incomes they are gettin to pay the mortgage.
Sometimes this figure is up to 80% of the total income goes on the mortgage. And I am sure that there are some people with more. Now think about it, on top of that yo have to eat, pay the rates, the power, the phone, the car bills, insurances and any other costs that you can think of.
What I have found is that some people I have spoken to have been surviving like this purely because of credit facilities that they have been using. For example the weekly wages goes toward the mortgage and then the rest goes on the other bills, but the shortfall is made up of credit – eigther a credit card or a personal loan. Some people have even got to the state of getting personal loans just to pay the credit card off.
Now the simple fact is that you can probably live like this for a very short time until things ironed themselves out a little, but we are in a ressession, if you cant see that or think it wont last i believe you need to have a good look around you. Mortgagee sales will rise because of this fact. As people run out of credit they need to sell or should sell. MOst people will try and hold on to what they have but in a lot of cases the bank steps in and takes over which is what you then call a mortgagee sale.
But as Roland said in the article above there needs to be some smart thinking going on and try and people need to sell before the bank steps in. In that case you as the home owner will have a little more control over what is going to happen to what probably could be your biggest asset. If you are a home owner please do take a close look at your speding and where your money is going. It is much better to try and sell before there is a problem. Becoming a mortgagee is not a nice place to be for anyone.
March 19 2009 | Buyers and Sellers and The Market | 1 Comment »
An opportunity exists NOW for a property buyer in New Zealand to participate in an International TV documentary. If you’re looking to buy a home or vacation property and would like to have it documented on an American TV show that airs in several different countries around the world, including New Zealand then I need to hear from you.
About the show:
The show takes the viewer through the buyers process from touring houses to making offers, each episode of HOUSE HUNTERS INTERNATIONAL highlights the experiences of finding and purchasing a property. Each episode breaks down as follows:
* First, we meet the buyers in their current residence to find out what type of property they are looking to purchase and what they would like in a new home. They give us a tour of their current residence.
* Then, we meet the agent who discusses the home buying trends in the area and shows the clients three comparable properties that suit their needs.
* Finally, the clients select a property to purchase and the episode ends with the homebuyers already moved into their new home.
To have a look at the show go onto Youtube.com and type in House Hunters international or follow this link to HOUSE HUNTERS INTERNATIONAL
For the person/people chosen to participate cameras will follow you as you tour 3 different properties and ultimately choose the one to buy and move into. This is a great opportunity for you. Whether you like the thought of being on TV or if you like the thought of being able to have a professional documentary of you buying a property, this is for you.
The show is looking for outgoing, lively people who are planning to purchase a place in the next 3-6 months. Please note that shooting usually takes about 5 days. If you are interested, please contact me on deon@deonswiggs.com or deon@propertyprofitsecrets.com or call me on my mobile 0274620350 for more information.
February 14 2009 | Buyers and Sellers and The Market | 2 Comments »
There is probably no better way to become aware of the condition of a home than to have your home inspected by a licensed inspector. However, there are several considerations on which only you, as the purchaser, can decide. And, as I’ve said in other articles, it’s my belief there are some things you must do yourself: Manage your money. Raise your children. And, also… purchase your home!
1. Location, location, location…
Probably the most important factor is that your new neighbourhood is a good fit. Take some time to drive around the area and make sure you like it. Check out the traffic at rush hour – if the home you like is on a main street, make sure the traffic noise won’t be a problem for you.
Additional location considerations might include: Where are the closest schools? Having schools nearby can be great if you have young children yourself. It can be rather annoying with noise or traffic, if you don’t! Does the lot back to a wash? If you have cats or a small dog, they might be at risk to urban coyotes and other wildlife. Is there an alley? Alleys have both positive and negative features. They provide a buffer between you and the back neighbor, but they also give opportunities for clandestine behavior since they are relatively private.
You might want to check the crime statistics for the area, something you can find by googling “neighborhood crime data” along with the community of your choice. You may also go to the county sex offender registry and make sure you are comfortable with your neighbors. I
Check into nearby vacant lots. You never know when the lot your kids play on will be developed into something you might not want to have as a neighbour.
You can even ask your agent to speak with your potential new neighbors. Find out if there is any unreported crime; ask if there is a rock band that practices all afternoon. Find out if there is a problem neighbor at whose address the police have a reserved parking spot. Ask the immediate neighbors if they plan any major remodeling or additions. This could lead to a year of construction vehicles and noise from sunrise to sunset. A few minutes of due diligence can prevent an unhappy ownership situation.
Make sure the lot has good features; i.e. not located in a flood area, and not the lowest lot in the area (sure to be 3 inches deep in water every time it rains). Generally this is not a big issue because most municipalities will not give a building permit for such areas.
2. What do I really need…?
The home you pick should meet whatever needs you or your family have. Think about the future. Having kids? Already have kids? Kids leaving? Getting married? How big a home do you need, how many bedrooms and bathrooms? For later resale, the most popular single family home is a 3 bedroom 2 bath home. Homes with only 1 bathroom or only 2 bedrooms are more difficult to sell than the more standard 3/2.
Take the family and spend a little time in the home. Spend a couple hours, especially during the morning or afternoon rush hour. Make sure the noise and activity levels are acceptable, and make sure the home has all the conveniences you like.
Is a pool important? Somewhere to relax on those hot summer weekends? Be sure to inspect the pool closely, using a professional inspector. Pool maintenance can be quite expensive and time consuming. I personally do not have a pool service, instead I have an automatic chlorinator and an automatic pool sweeper. These items are a significant up front expense, but can yield years of virtually maintenance free pool enjoyment. Insist that all pool equipment be in excellent working condition.
3. Last year’s remodel… this year’s nightmare?
Many older homes may have been converted from a one bath to a two-bath home. You can usually tell. Make a careful inspection and see if this was done.
Sometimes a master bath has been divided and made into two bathrooms. If the remodel was done well and permitted (a permit was obtained from the municipality), this is a better situation than a poorly done, unpermitted change. You can often find permit information at the city planning office.
Sometimes additional square footage has been added to a home, either by converting the garage into a bedroom or office, or by enclosing the patio. Telltale signs of this might be: No garage, or a garage door that is still there but has no purpose; a slanting floor (garage floors and patios often slant to provide drainage); unusually low ceilings in one room; no air conditioning vents in the room; an outdoor carriage light on the wall of the room; a room with one cinderblock wall and 3 wood frame walls.
Some homes built with a carport have had the carport enclosed. This is an inexpensive and useful remodel, provided it was done correctly and with the proper permits. Things to check for: A window from the house into the garage; garage door is not self closing and/or is not a solid core door; one garage wall is block, the other walls frame; no power outlets on the garage walls except on the back wall.
Look at the flooring in the home. Flooring is an upgrade many homeowners attempt on their own, but without sufficient skills. Often before selling, owners will rip out old carpeting and install laminate wood flooring. Look for the seams in the laminate; one of the more difficult things for the unskilled installer is to plan the job appropriately so that the seams in the flooring come out right, with no gaps. Further, many installations run right up to the baseboard – sometimes there are two baseboards, the old original and then the new baseboard to cover the gaps from the flooring!
The proper installation is generally to remove the old baseboards so that the flooring is seamless from wall to wall and only a single baseboard is installed. New baseboards should be installed – this minor step costs little and makes a big difference. You can often see a discoloration at the bottom of the old baseboard where the carpet used to be. And, most do-it-yourselfers are not good at mitering the corners and fitting the baseboards perfectly. Just look at the joints and the corners – you will be able to tell, easily, whether the installation was done well.
Tile is another homeowner do-it-yourself favorite, and again, without the proper skills, the job can look terrible close up. Uneven levels in the tiles, grout lines that are not straight, and poorly done corners are just a few examples. Just look at the work, you will be able to tell whether it was done professionally or not.
Finally, look for additions. This is often evidenced by one part of the home leaning away from another part – look at where outside walls meet. Look at joints in the outside walls and see if they are pulling away from each other. Look at the flooring in the home at the same point; if there is carpeting, it is harder to tell, but sometimes the addition will have a different slope from the main part of the house.
For information about remodel work, trust your home inspector. This sort of thing is often more cosmetic, but might make a big difference upon resale.
4. Who built the ark? OR….
How is the home constructed? Some older homes are slump block, and this is a wonderful thing, as the utility bills will be substantially less than for a frame house. These homes stay warmer in the winter and cooler in the summer.
While my personal favorite construction is slump block, a close second would be block homes. With these homes, you may find the cable TV companies complain when they have to drill through the block to add an outlet! Block or brick, or some form of masonry, can provide a strong, stable framework that has inherently good insulating qualities.
For some time, homes were literally built by framing the home, wrapping it with insulation and chicken wire, and then using a gunite machine to spray stucco on the outside. I know I am not characterizing this very well, but it is probably the bargain basement construction method. Unless this process is completed carefully, the stucco can develop cracks. Newer homes are built with framing, then engineered wood (plywood or particle board), then insulation and stucco. This is much more stable than chicken wire over framing!
Any of these construction methods, done properly, are acceptable. My opinion is that the risk of problems is lower with masonry of some sort.
When my grandparents bought their last home they did not check any of the electrical outlets. The inspector verified that they worked, but the brand used by the contractor must have been the very cheapest, because none of them will hold onto a plug – the spring action is so weak that the plug literally falls out of the outlets, this is just something to keep an eye out for.
Similarly, look at the valves under the sink and toilet. Make sure the lines are copper and not galvanized. Galvanized pipe, installed in the 70’s, will almost surely be rusty and possibly leaking now, 35-40 years later. Insist on a repipe to copper at the seller’s expense. Have your inspector make sure the plumbing is copper.
I like to make sure the inspector checks the shut off valves under the sinks and toilets, because in older homes, they are often frozen and impossible to use. If there is any evidence of leaking, have the seller replace them with new ones which are less prone to freezing. When you have to have your sink or toilet worked on, you won’t have to shut off water to the entire house for half a day.
5. Rules, rules and more rules…
who ever your agent is they should make sure you get a copy of any Covenants, Conditions and Restrictions on the property. These are rules associated with a property which are part of the deed and run with the land.
Other things to think about (this list is by no means complete):
- Cost of homeowner’s insurance
- Taxes/Rates
- Utility costs
- Garbage pickup / bulk pickup
- Neighborhood watch
- Internet service
- Sky
- Street condition, paving
- Security system
- Paint condition
- Driveway condition
- Roof condition
- Age of air conditioners
- Septic or sewer?
- Age of faucets and other fixtures and their condition
- Type of electrical wiring (aluminum, copper?), electrical panel, breakers
- Condition of shower enclosure and tub area (mold?)
- Insurance claims history
- Street utility manhole in front of house?
- Distance to fire hydrant?
- Water pressure?
- Condition of watering system for grass, shrubs?
Finding the perfect home for you and your family should be an enjoyable experience. I hope these guidelines will help you in your search and home buying experience! Good luck.
February 08 2009 | Buyers | 1 Comment »
Generation Y have been bought up with an awareness of the environment and have become more inclined to use and purchase items that are deemed eco friendly. As a result eco-friendly properties are growing to be more well-liked. For a sellers best interest if your house is eco it’s useful for your buyers to be able to identify sustainable home building resources for themselves. When it comes to buying a home if you know the details of its build you can make vital decisions between one property and another based on just how careful the construction has been with taking into account the impact of protecting the environment. You can also identify which properties will save you funds when it comes to running costs and making repairs. And if you plan to put up additional buildings or extensions to your property, you’ll know how to go about it in a responsible way.
Here is a quote taken from a book I have been reading on sustainable living. It says sustainable material can come in many forms. Preferably it should be offered locally to lessen the environmental impact on transportation. The materials should originate from renewable sources, such as sustainable forest plantations, and the processing and manufacturing involved in preparing them for construction use should be efficient and non-hazardous. They should also be intended to last for a long time, reducing the need for repairs and replacements. It sounds like a lot of hog wash but the practical use and the impact
Sustainable building materials are not only excellent for the environment, they’re good for your health. In order to take full advantage of their staying power, they should be water resistant, which will also go well in stopping the growth of mould and rot, which can harm your health in many ways. Using natural materials such as wood or stone means you won’t have to be concerned about toxic and carcinogenic emissions such as those emitted by some petroleum-based building materials and asbestos. If builders used recycled or reclaimed materials in the construction of a property, you can use air-monitoring equipment to check the interior air quality and make certain no problems have arisen as a result. For many construction businesses, such tests are standard on eco-friendly homes, making them a better bet than ordinary properties. And most sustainable materials are designed for easy cleaning so that you won’t have to use to use strong chemical cleaning products which can potentially harm both you and the environment.
Once you begin looking into sustainable building materials, you’ll find that there are all sorts of intriguing options out there, including traditional cedar or stone, lightweight but unexpectedly strong bamboo or cork with wool-based cavity filling providing a tremendously efficient substitute to standard insulating materials, and linoleum or terracotta tiling perfect for floors. Materials such as these can be used to craft a home that is good for the environment, good for you, cheap to run and truly individual. You really can’t lose.
But for a start here are a few things you can do in your house today.
Start with Just a Bulb
Start with small changes that make a big difference in your own energy use and the pollution we generate. If every homeowner replaced their five most frequently used light fixtures or the bulbs in them with ones that have a low energy rating then you can save 10% of your power bill straight away. The initial cost can seem high but the long term rewards are good.
- Kitchen ceiling lights
- Living/Family room table and floor lamps
- Outdoor porch or post lamps
Facts
Energy saver lighting uses about 75% less energy than standard lighting, produces 75% less heat and lasts up to 10 times longer.
The energy used in the average home can be responsible for more than twice the greenhouse gas emissions of the average car. Helping with global climate change starts right at home with easy changes like light bulbs and fixtures.
Heart of the Home
Close to 50% of the energy used in your home goes to heating and cooling. It makes sense to ensure your systems are operating efficiently.
Air Filters & Obstructions
Change the air filter on your heaters or air conditioning modules at least every 3 months to run it at its maximum efficiency. Clogged, dirty filters really reduce efficiency of your system and the air quality in your home.
Keep your vents and registers unobstructed. Move drapes, rugs and furniture away from heat registers and return-air vents. Free-flowing air through the units provides more comfort and will save you money.
Save Money with Regular Maintenance
Get a tune-up for your HRV equipment yearly. Airflow and other problems can reduce your system’s energy efficiency by 15%.
Install a Programmable Thermostat
A programmable thermostat can save you hundreds a year in energy costs! It will give you the flexibility to turn down the heat or air conditioning during the day and when you are away for extended periods of time.
Save 25 to 40% on Energy Costs
Seal your leaky heating and cooling ducts and increase their efficiency by as much as 20%, while increasing the comfort in your home. Much of your heating and cooling goes out through leaky ductwork.
Close to 75% of installed cooling equipment has the incorrect amount of refrigerant. This can lower efficiency from 5-20% and cause premature failure. Work with your contractor to verify the level is correct.
Going Tankless
Infinity hot water heating (tankless) have an advantage over tank water heaters because they provide significant energy savings. The tank water heaters must constantly heat the tank’s water waiting for the demand, where the tankless provides the hot water on demand. Installing tankless water heaters in new homes makes a lot of sense. When replacing a tank water heater in an existing home, the cost of the tankless, plus installation will generally be 2-3 times higher.
If you are replacing an electric or liquid propane tank water heater with a tankless, the savings can be up to 50% on water heating costs. The cost of heating hot water in a home is about 14% of your energy bill, so it is a significant expense.
There are both electric and natural gas tankless hot water heaters. The natural gas units are more expensive than the electric, but they cost about 10-15% less to operate. A good plumbing contractor can help you calculate your potential savings and payback period, plus discuss which is better for your home.
Front Load vs. Top Load
When you need a new clothes washer, there are quite a few choices, but the primary choice is between a front or top loading machine design.
Front loading machines use about 38% less water and 56% less energy, and they are also easier on clothing because there’s no agitator. They require less detergent too. Big families can fit more clothes in a load, saving even more energy and some time doing laundry too. Front loading machines also extract more water, reducing drying times for additional energy savings.
Front loading machines do cost more upfront, but can pay for themselves fairly quickly. A family of four can save around $100 annually just on water and energy costs alone. The cost of top loading machines ranges from $400-$1200 and front loading machines from $700-$1500. A front loading machine can pay for itself in 2-3 years, depending upon the model you choose.
Remember to always look for ENERGY STAR!
ENERGY STAR Savings
Products with the ENERGY STAR rating use 10-50% less energy and water than standard models. The money you save on energy will more than make up for any additional cost. Look for the EN ERGY STAR label on clothes washers, refrigerators, dishwashers and many other household systems and appliances.
January 25 2009 | Buyers and Sellers | 2 Comments »
Its official. Sales volume is the lowest it has been for 16 years 11 months and the market has never been harder to work. Sellers, Buyers and agents… We are all having to adjust, compromise and accept that the days of the boom are well and truly over. And property prices have in fact in some areas come back 10% and some places maybe more. Negativity is so easy to talk about these days when the markets are depressed. Every day we are all hearing about the Credit crisis, banks bailout, tougher lending, house prices and sales fall, car industry crashes, jobs been slashed, and I could go on for a very long time.
These of course are the reality of today but we have to look in hindsight at whats happened prior to bring this about and the fact of the matter is that too many of us are forgetting about is that from 2000 to 2007 there were 7 years where there was the biggest economic growth this world has ever seen. This created jobs in huge amounts businesses were making money without huge expense and effort, many people bought property and in 4 years sold it for double what they paid for it enabling them to buy bigger and better homes and allowing others to get into the market easily at the time. We were all living relatively good lifestyles and many of us were probably living at a level above where we deserved to be.
Reality has hit home but is this a reason to be scared, freak out and stop doing the economic activities we used to do? NO! It’s a time to consolidate definitely and a time to work smarter and stop being lazy. Do you want to be left behind and watch the ones who take action now prosper in ten years time. Are you going to be the one who says, dam I wish I took action when there was time. I sure hope not. There is no reason to worry, it’s time to start opening your eyes up and see whats happening around you. We have seen a major shift in the market place one which few people really expected, homes and property continue to be bought and sold at new levels every day of the year. There are always people who need to sell, and people who need to buy, and so long as there are these 2 people in the market, property will sell. It just won’t sell at prices that where around in 2007.
Housing prices today right now are in many places at a level that has made homes right across the board more affordable. And in my view the key to selling your property in 2009 will be in the ability to show that your home has the best value for money on the market, and attract the right buyers to it, and when you’re buying and selling on the same market you aren’t gaining or losing any of that market change. Don’t be afraid to step up to the mark and make a move.
There are some very good buys out there now. We don’t know if there will be better buys to come. All we can do is work with what we have now, and there are plenty of people wanting to sell. Plenty of people are wanting to buy. Enquiry on this blog has doubled in the past three weeks and the search terms are mostly about how to find a good buy. If you want to know where a good buy is, talk to a trusted real estate agent. In this market as a seller they are going to be your best help and also for a seller a real estate agent will be helpful in so many ways. Its bridging that expectation gap which the agents do in order to meet everybody’s needs which is so important.
I have a very large social network online and am in constant contact with them. Today I conducted an experiment. On Twitter I asked a simple question. ‘What are your concerns going into 2009?’ 70% of the response I received was positive and about the opportunities that they see coming into play now. The other 30% were concerned about the financial pressures of life. Which person do you think is going to take action and prosper from it.
Take action. Don’t sit by and let things happen before you. If you have a problem, for example you need a job transfer somewhere and you need to sell the house, take action and sell it. Maybe consider a part swap of a possession somewhere else or something else to sweeten the deal to the buyer. These things will work and you will see the results. I believe the time of opportunity is near. But the opportunity is lost if your too late. Be in. Don’t be scared and think of the long term goal. If your purchasing a home today, tomorrow or in the near future good luck. There are some great buys out there for you to snap up and they arent a trick. This is for real. People lived lives a step above what they earnt and now are having to take the hit. This is the opportunities for you.
December 16 2008 | Buyers and Sellers and The Market | No Comments »
The Christchurch Real Estate Market was alive and well today. Harcourts Grenadier held 18 Auctions today. After all were conducted the results were quite good. 8 properties sold under the hammer, 2 were sold prior and 2 were sold after the property was passed in and it sounds as though a few will be under offer in the next few days. The interesting thing to note is that many of the properties that were been Auctioned today were of the higher end of the market.
This may be good news for the market in the fact it shows that the buyers are still out there and there are still people with money to buy. Sales numbers on previous years are well below what they were so it is still more important than ever to have your property stand out. Targeted, high profile marketing, sound presentation combined with a strong structure and a competitive edge when it comes to the price and you will attract the buyers out there to your property and hopefully the hard work put in will get an offer on the table that if not at an acceptable level you can work with.
The total amount of sales this year has been consistently moving downwards as the economy in New Zealand has been crippled by the global credit crisis. In recent months there has been some relief for us all with interest rates falling, fuel prices falling and tax cuts from the government but these are still not seen to be enough to help some of the struggling families out there as many won’t feel these reductions for many months to come. So the market still has some
The statistics below show the data collected by the REINZ for the Christchurch Central Area (The 4 Avenues) and how much different this year has been to two years ago.
The tables below read: DATE; MEDIAN; TOTAL SALES; DAYS ON MARKET
|
May 2008
|
$322,500.00
|
57
|
52
|
|
|
Jun 2008
|
$357,500.00
|
42
|
47
|
|
|
Jul 2008
|
$342,500.00
|
40
|
57
|
|
|
Aug 2008
|
$334,950.00
|
43
|
57
|
|
|
Sep 2008
|
$332,250.00
|
34
|
59
|
|
|
Oct 2008
|
$310,000.00
|
33
|
47
|
|
|
Nov 2008
|
$310,000.00
|
35
|
45
|
|
Now Compare this for the same period 2 years ago.
|
May 2006
|
$315,000.00
|
86
|
42
|
|
Jun 2006
|
$319,000.00
|
82
|
41
|
|
Jul 2006
|
$298,750.00
|
92
|
41
|
|
Aug 2006
|
$307,000.00
|
84
|
53
|
|
Sep 2006
|
$300,000.00
|
77
|
53
|
|
Oct 2006
|
$327,000.00
|
82
|
38
|
|
Nov 2006
|
$300,000.00
|
91
|
40
|
|
Dec 2006
|
$355,000.00
|
93
|
43
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You can see quite clearly that the sales volume is below half of what it was two years ago for the exact same area. This is why it is so important to do all the things I mentioned above. The fact of reality is that there are more listings than last year and half the sales. Dont be the one sitting on the market and not selling. Be one of the ones who do sell. It is hard to look at the price from these graphs and compare it in this cross section as it is only a small sample of the market and too much influencial data can skew the data. But below is a graph of the median price for this Christchurch Central (4 Avenues) area. The other thing is the sales stats from the REINZ only show medium not average so many influencing factors can skew the graph over each month.
The market is not completely dead, as I said right at the start of this post there are still properties selling and today we saw a number sell under the hammer which just hasnt been heppening to that extent on a consistent basis for a while now. The feeling I get is buyers are ready to buy but are waiting for that opportunity that they consider a good buy. Most buyers I talk to out there say there is still a lot of room for the market to move. And unfortunately when your in a buyers market these are the words that are going to ring true in many cases. The sales volume for New Zealand in November 2008 were 4297 sales. The next lowest was in August 2008 with 4220. But previous to this years shocking sales volume drop the lowest sales in any given month was a massive 16 years ago when in January 1992 there were 4,427 sales.
Buyers are holding tight, but are still buying in other ways. Its a funny market, one none of us can predict.
There are people out there that can see good buys but so many more are saying they will get better and are waiting.
December 11 2008 | Buyers and Sellers and The Market | 2 Comments »
Google today announces the launch of Street View on Google Maps in New Zealand:
maps.google.co.nz/streetview.
Street View is a new feature for Google Maps that lets internet users view and navigate 360 degree street-level imagery of New Zealand’s cities, towns, regions and remote areas.
More than 100 metropolitan areas in six other countries around the world are presently visible in Street View, which first launched in the United States in May 2007.
It’s not just about the cities though, street view can take a virtual drive along Scenic Drive to almost any remote location in New Zealand. Tourism New Zealand has selected a gallery of Street View images, available at maps.google.co.nz/streetview that showcase some of New Zealand’s best tourist attractions and locations to the world. Many other organisations have already identified significant opportunities for Street View to be used in travel, tourism, house buying and renting, education, and helping make small businesses easier to find. So hopefully this may bring back some of the tourism to New Zealand.
What can you use Google Street View for? well to get directions, companies are integrating it with their websites, enthusiasts use it to create personalised maps related to their areas of interest, check out the house in the city you want to go too. See what your best friends street looks like. Let your family and friends see what the street looks like where you are living. There are just so many options.
Google has gone to great lengths to safeguard privacy while allowing all New Zealanders to benefit from this feature. Street View only contains imagery that is already visible from public roads, and blurs identifiable faces. Anyone can easily flag for removal images that they consider inappropriate by clicking on “Report a concern” at the bottom of the Street View image in question.
The Street View imagery was collected by camera-equipped cars that drove public roads in New Zealand over the past 12 months. If you notice the picture below you can see the Christmas tree still in the square from almost 12 months ago.
In the picture above I checked out my house and then took a screen shot as I went past the office and in the picture below I have been checking my new home out and the surrounding areas and decided to take a screen shot of one of the main monuments in Christchurch. As I just said I have been an early adopter of this application in New Zealand and have been actively looking around the streets of some of the houses I am interested in buying in Christchurch. Even though I am still in New Plymouth for a number of weeks more I can easily see without ringing and asking the agents what the neighbourhood is like. This is awesome and truely something that home buyers are going to find fantastic when looking at property in locations they aren’t sure of.
In Real Estate Street View offers a very interesting and new dynamic to the mix. Now there one can look at a property online with the photos and then go to Street View and look how it is placed amongst the rest of the neighbourhood. You can now check out the street before you go to the open home, this might save you time and gay money. Trademe being their innovative self have already placed Google maps into their tourism and property sectors so that now when you look at property on Trademe you can simply click a button that will let you look at the street as well. How cool is that. And also Realestate.co.nz have added streetview to their listings so that the general public can again look at the street they are interested in possibly living on.
I hope you enjoy Street View as much as I have this morning. It’s been great checking out all the places I used to live which has bought some great memories back. It is amazing the length Google are going to become the world’s best online place to go. What next…
Leave a comment and tell me what your views are on Google Street View
December 02 2008 | Buyers and Uncategorized | 1 Comment »
By New Zealand Law all Contracts for the sale of land and property must be Negotiated in Writing. Most Licensed Real Estate Companies will use the standard form which is prepared by the Real Estate Institute of New Zealand and the Auckland Law Society. This contract covers the legal issues necessary to protect both parties and enable a satisfactory Real Estate Transaction.
Contracts can be written up subject to various conditions so that the purchaser or seller can satisfy their own needs. An example of the more common ones are:
- Subject to Finance. This allows the buyer time to confirm or arrange their finance from the banks or any other lending company. Generally this condition isn’t more than a week, but in any case has to have an end date for satisfaction, upon this date been reached you can apply to have an extension through your Solicitor.
- Subject to the sale of another property. This condition also needs to have a time limit on it. Generally this is negotiated between the parties. This will give the person buying the property to have enough time to sell their own house in order to buy. This condition is usually followed by an escape clause. This allows the seller to continue marketing their property and being able to accept another offer that is better to the seller( this can be a lower price, it doesn’t matter). This is then called a cashing out contract. The original contract then has the agreed on working days to go unconditional. If they do not then their contract is void and the cashing out contract is executed and closed.
- Subject to a report of the building or land or a LIM. This gives the purchaser to do any homework on the property once a price has been agreed to. This could include a builder, a plumber, an electrisation or any other thing that the purchaser wants to do their homework on. But things you want to be investigated must be stated on the contract before it is accepted.
Once all conditions are met the contract becomes Unconditional and binding on both parties. This means the sale must settle as detailed in the contract. The payment of any deposit mentioned is payable upon this time. If you buy through a real estate agency the deposit is usually held in a trust account for 10 working days.
You can bypass the conditions part and put what we call a cash unconditional contract in to the seller. This means that you are happy with the house at the time of putting a contract in and if the seller accepts the price you submit will be one you buy the property at. being unconditional you will then pay the deposit and settle on the date in the contract. Unlike many parts of the world you do not need to get surveys etc on every property. In New Zealand a property can’t be sold without a title and its generally the duty of the seller to get everything in order.
The day of settlement is the day when the balance of the payment is made, this being the total purchase price minus the deposit which was payed at the unconditional date. The money is usually transferred via the solicitor. This is the day you pick up your keys to the property and take over the legal rights to the property. You can move in this day 
A solicitor is a lawyer. When you deal with them in terms of a property sale they look after the legal aspects of the sale like transfer of money, transfer of title and things like that. Basically when the contracts are agreed on, sent to the solicitor, and becomes unconditional the job of the real estate agent is all but complete. A good agent should keep in touch with both parties, bring them together, and make sure that a smooth transition of settlement takes place.
The fees associated with buying a property in New Zealand are very minimal. The only fees that you need to pay are the solicitors fees for buying, which can be anywhere between $500 – $1000. But could be more or less depending on the area your buying. Also if you want to have any inspections done or a LIM report done you will also need to pay for those. Costs on these are minimal though. So really for buying residential property in New Zealand what you put on the contract is what you pay.
There is other things associated with buying property in New Zealand. Other ways of buying such as tender and auction are available but the principle is the same. For more questions or to find out more call or email an agent. They will be able to assist you with your questions. Remember that to have the agent sell you a house as a buyer it’s not costing you anything, and you get their knowledge and support the whole way through.
December 01 2008 | Buyers and Sellers | 17 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 »
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 »
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