Archive for the 'Uncategorized' Category
For most of us this is something that we have been looking to for a while now. There has been plenty of hype running around this years budget and the cat has now been let out of the bag.
Property tax has been hit hard with quite an increase and other things.
Here is an example from the govt website A professional landlord and property investor over the last 20 years, he has built up a portfolio of 25 properties. Dave’s net annual profit from his rental activity, after costs of interest, repairs and maintenance and rates, but before depreciation is $112,000. After claiming depreciation of $52,000 ($1000 a week) on the buildings he owns his net annual profit is reduced to $60,000, which he pays tax on. Under the current rules, Dave can claim depreciation despite the fact that both his houses and the land they are on have substantially increased in value over time.
Under Budget 2010 tax changes, Dave can no longer claim depreciation on buildings. As a result he must now pay tax on $112,000 of annual profit rather than $60,000. Despite personal income tax cuts this increases his weekly income tax by $289.03. As he has less to spend his GST reduces by 85c a week. Overall he is $288.18 a week or $14,985.36 a year worse off.
Here is an overview. For more info go to http://www.taxguide.govt.nz
Budget 2010 tax changes – at a glance
Rewards effort and helps families get ahead
Attracts and retains skilled people in New Zealand
Encourages savings and productive investment
Makes the tax system fairer
At all taxable income levels, tax cuts more than offset the GST rise
The tax package comprises:
All personal income tax rates will be cut from 1 October 2010.
Income Current Rates
New rates
$0 – $14,000 12.5% 10.5%
$14,001 – $48,000
21.0% 17.5%
$48,001 – $70,000
33.0% 30.0%
Over $70,000
38.0% 33.0%
After-tax earned incomes at all levels of taxable income will rise by more than the increase in GST.
Secondary tax and resident withholding tax rates will be reduced from 1 October 2010, to align with the new personal tax rates.
Individuals and families can work out how Budget 2010 tax changes personally affect them at www.taxguide.govt.nz
An increase in GST to encourage savings over consumption
GST will be increased from 12.5 per cent to 15 per cent from 1 October 2010.
Income support and other payments will be increased by 2.02 per cent from 1 October 2010, to compensate for this increase. These payments include:
All main benefits, Student Allowances and a number of supplementary benefits.
NZ Superannuation, Veterans Pension and CPI-adjusted Government Superannuation Fund and National Provident Fund payments.
Working for Families (Family Tax Credit and Minimum Family Tax Credit).
Reductions in tax for companies and savings vehicles to encourage investment and savings
The company tax rate will fall from 30 per cent to 28 per cent from the 2011/12 income year.
The top tax rate for most portfolio investment entities (PIEs) will fall from 30 per cent to 28 per cent, while the other PIE rates drop to align with the new personal tax rates, from 1 October 2010.
The tax rate for life insurance policy holders and widely-held savings vehicles like unit trusts and superannuation funds will fall from 30 per cent to 28 per cent from the 2011/12 income year.
Changes to depreciation rules to better reflect asset value reality
No depreciation deductions will be allowed for buildings with an estimated useful life of 50 years or more (such as rental housing and office buildings) from the 2011/12 income year.
The current 20 per cent depreciation loading on new plant and equipment will be removed, for assets purchased after Budget day.
Stricter tax rules for foreign multinationals to reduce their ability to minimise tax payments in New Zealand.
Tax rules will change from the 2011/12 income year to reduce the interest deductions foreign multinationals can take by having high levels of debt allocated to their New Zealand subsidiaries.
Changes to loss attributing qualifying company (LAQC) and qualifying company (QC) rules to ensure investors are taxed at the correct rate
LAQC and QC rules will be tightened from income years starting on or after 1 April 2011 to prevent people choosing to have losses deducted at their marginal personal tax rate but profits taxed at the lower company tax rate.
Making Working for Families fairer
People will no longer be able to use investment losses, including from rental properties, to reduce their income and become eligible for Working for Families, from 1 April 2011.
One part of the formula that adjusts Working for Families payments for inflation will be amended because it currently gives higher-income families a greater proportional increase than lower-income families.
Tackling tax avoidance and improving the integrity of the tax system
IRD will get a significant funding boost to increase its audit and compliance activity around debt collection, the hidden economy and property transactions.
GST rules will be changed to stop the use of “phoenix” GST fraud schemes.
To Sum Up the KEY Points are
Today’s Budget includes these key points:
- GST increases from 12.5pc to 15pc
- Company tax rates fall from 30pc to 28pc
- All income tax brackets fall, with the top rate levied on income over $70,000 per year coming down from 38pc to 33pc.
- Landlords and businesses will no longer be able to claim depreciation on buildings that are expected to increase in value.
- Rules around ‘loss attributing qualifying companies’ often used by property investors to reduce their tax payments are being tightened.
- All benefits including NZ Super and working for families will increase by 2.02pc to compensate for the increase in GST
- An extra $2.1bn is being spent on health over the next four years, which includes $1.7bn of new operating funding.
- Funding for schools is going up by $1.4bn over the next four years, which includes $350m in new operating and capital funding for school property.
May 20 2010 | Uncategorized | 1 Comment »
I am not going to get into my pet hate at the moment of sensational headlines misrepresenting the state of the housing market – except to say that the newspapers are in the job of marketing their product and bland headlines do not sell newspapers.
Similarly bland photographs do not help sell houses. If you are thinking of selling then please read the blog at Unconditional – it explains with examples how good photography benefits your property marketing.
Once the photographs are taken, the next thought has to be how to market – price or not. In the current market, with low volumes and plenty of uncertainty, sellers need to be very competitive in their pricing. Salespeople are often less than helpful as the practice of “buying listings” is alive and well. By that I mean the sales consultant tells the seller to price too high, knowing it is a figure that the seller would like, though unachievable. They then spend the next few weeks “conditioning” them to the “new” market reality.
A more professional approach is to be clear on what sort of price will sell (whether or not it is what the seller wants to hear), and concentrate on why the owner wants to sell.
The alternative to pricing is no price marketing. At the current time I believe a deadline is essential. Consider this – if you got a telephone bill without a due date to pay, when would you pay it?
It is the same with houses – unless the price is so competitive that the buyer believes they have to act before it is sold to someone else, a deadline is necessary to convince the buyers that the seller does intend to meet the market and sell. Deadlines can be auctions or for offers to be presented.
I am to discuss this further with anyone – just call!
March 17 2010 | Uncategorized | 3 Comments »
If you have a list of questions ready to ask a tradesman, always ensure that you get the answers you need from them immediately. There’s no point in waiting around for them to get back to you. A good tradesman will know the answers straight away and will be happy to put your mind at ease with his or her responses. Below is a list of questions you should always include before hiring any tradesman. And please remember, that the cheapest is not necessarily the best.
1. How long have you been in business?
Always ask initially how long the tradesman has been in business. If they can provide you with some form of proof also, that is even better as you can see they’re not ‘fly-by-night’ types and this should mean they have an established business and business address.
2. Do you have references for past work?
If you can find a tradesman who is willing to show you examples of their past jobs, this is a good sign. If they have photos of their previous jobs, take the time to look at them. Also, if they have references, ask if you can have a copy, then call these people to ensure they were satisfied with the work.
3. Are they a member of a trade organisation?
Many organisations have a protection scheme that helps to resolve any disputes that may occur and also gives you peace of mind that there’s someone to turn to if things go wrong. Get the name of the organisation or association the tradesman belongs to and then ring them to find out whether they’re a member.
4. Do they have insurance against damage?
It is absolutely crucial that you find out whether your builder has insurance to cover any possible damage against your property. Even if they’ve never had any issues in the past, there may be mistakes made in the future, so check that they are liable should there be any unexpected events whilst the work is being carried out.
5. What is the guarantee on their work?
Make sure that you get a written guarantee of work, or that you see their standard guarantee before signing. If their guarantee is backed by insurance, this is even better as you will have protection should the tradesman’s go out of business. It is very important to look at the guarantees as you don’t want to suddenly realise there’s a problem a few weeks outside of your standard guarantee period.
6. Ask if you can see their license?
Obtaining the details of a tradesman’s license can be one of the more fundamental questions to ask before starting any job. Take note of the license details and ensure they’re up to date and are genuine. You may need them in the future and it’s possible that if something goes wrong the tradesman won’t be willing to give the details by that stage, so get them early on and keep them safe.
7. What do they estimate to be the time frame for the job?
Always get a written estimate of the time frame for your job. If you need work to be completed by a certain date, make sure that the tradesman is aware of that and ask for it to be written down as an estimate if they believe they’re able to make that deadline. Never agree to a contract with no foreseeable completion date.
8. What will be the quote for the job?
Try to get at least 3 quotes from a variety of different tradesmen, but always ensure that it is a written quote and check how long it is valid for. If there’s anything on the quote you’re not sure about, ask specifically about it and don’t ever feel that there’s a dumb question. Get all the information on how much the work will cost you before agreeing to a contract.
9. When will the work begin?
Many people agree to a contract after being happy at the length of time quoted for completion of the work, but then don’t hear anything from their tradesman for some time. Always find out what the start date will be for your job and make sure that they stick to that. If you can, have it written into the contract that they must start and complete the job by a specific time.
10. What are the terms of payment?
Agree with your tradesman the terms of payment before you sign the contract. Some tradesmen will require a deposit upfront, whilst others are happy to carry out the work and receive payment then. Some will bill you for the work, whereas others may require cash or a credit card on completion. Arrange it in a way that suits you best and makes you most comfortable, but again, get this in writing.
March 10 2010 | Sellers and Uncategorized | 2 Comments »
Just a quick post to introduce myself as a new author for this blog. No secrets, I am a real estate sales consultant – but I hope one of the more enlightened breed.
By that I mean that I recognize that the real estate industry is going through, what I beleive is a fundamental change in how business is conducted – and that is online. Not in terms of electronic contracts (though I am sure that will happen) but in terms of information sought and provided.
I hope that I will provide timely, useful and witty insights into the local market and hope that this blog grows into a resource that people can trust and use regularly.
Tim
March 03 2010 | Uncategorized | 3 Comments »
Blog Authors Wanted I am currently in the process of looking for blog authors to contribute to Christchurch Real Estate.
If you are based in Christchurch and would like to have more promotion and exposure online to a very large market I would love to hear from you. I am running out of time and resources to keep writing interesting topics on this blog and this is not what I want for this site. I am looking for 2 or 3 more authors who want to help create a fantastic Real Estate blog site for the people of Christchurch, New Zealand. If you’re an agent, sales person, mortgage broker or investor/expert and want further exposure online I would love to hear from you.
Currently this site gets approx 200 unique visitors per day and approx 700 page impressions per day. This is huge exposure that you as an active player in the Real Estate industry could give you a great heads up. Before the recent change in the domain names this site had received over 150,000 unique views with over 400,000 hits. It has been running for just on two years and its about time to make it a powerful resource for people searching Real Estate especially here in Christchurch.
Over the next few weeks I will be slightly changing the look of this blog so that it better reflects the intentions I have as a Christchurch Real Estate Blog which will benefit the general user who comes to this site for information or for you as a potential author of the site
If you have a general interest then please send me an email to deon@deonswiggs.com with your blog / website for me to look over. If you do not have a website / blog, then do not worry – if you are a good writer and it shows then just email me with some information about yourself. I am looking for 2-3 authors to contribute. I can guarantee that by even just submitting a few articles on here about your particular field your local exposure will be greatly increased.
Thank you for your interest and I look forward to hearing from you.
February 27 2010 | Uncategorized | No Comments »
Here is an awesome blog post from propertyadguru
The benefits of agents running their own real estate blogs are many: they can position you as a local expert in your neighbourhood, enhance your credibility as a businessperson, and attract leads that might otherwise have overlooked you entirely.
At least, that’s the theory. In practice, an agent’s blog can have the opposite effect, driving away leads by presenting an image that’s far from professional. It’s an understandable by-product of the accessibility of blogging – everyone can do it, but not everyone can do it well.
So what are some of the pitfalls to avoid with your blog, and what are some attributes to aspire to? We don’t intend to name and shame, but after scouring the web for agent website examples, we have come up with a few hot tips:
The writing has to be up to scratch. You might be a wonderful communicator “in real life”, but the online environment is less forgiving, as typos and poor grammar sit around until you correct them. The trick is to write as if you were speaking to a friend, keeping your sentences as natural and conversational as possible.
Closely linked to the way you write is what you write about. And here’s where you ask that all-important question: who is my audience? Would potential customers really be interested in the latest industry news? Or would they be more attracted by content that discusses movements in the local community – new shops opening, business successes, perhaps even an interview with the local mayor or council member? Put yourself in your readers shoes and consider what you’d be searching for in your online home hunt.
Speaking of mayors, keep this in mind: politicising your content, while tempting, is a sure-fire way to alienate those readers who don’t see things your way. Of course, it makes sense to discuss local issues and the way government is addressing these, but by taking a hard-line stance you’re sure to upset someone, and that someone could potentially have been a new client.
The basics aren’t enough when it comes to blog design. Of course, not everyone can begin with a perfectly designed blog – at first a basic theme will probably have to do. But as time goes on, readers will expect improvements. A poll, more pictures, updated links, a few more pages – anything to make things more interesting for return visitors beyond the daily or weekly posts.
If you give up, take it offline, at least until you’re ready to re-start. If your blog is your only online presence, consider stripping it back to a basic contact and information page. Then, when you’re less run off your feet, bring back the posts. Nothing will bring doubt into the mind of a potential client more quickly than the top post being dated “September 4, 2008″.
Propertyad guru go further and state this interesting fact:
Track what’s working, and change things accordingly. There’s no point signing up for a web analytics service if all you do is paste in the code and forget about it. Figure out what kinds of posts draw in the most visitors, and what keeps people on your website for more than a few seconds. Your website’s click-stream – the way people move around the website – should also be something you’re familiar with. Using all this information to constantly modify the content on your blog is the key to gaining traffic.
Look at the search terms people are using to find you. Some results will be slightly off-the-wall, but in amongst those will be some gems that tell you exactly what your readers were hoping for when they clicked through to your blog. The next question you have to ask yourself is, did you deliver? If not, what can you add that might satisfy those readers next time?
Colour is important. It is easy to lose a lot of time playing around with themes and colour settings, but at the same time, poor choices here can drive people away. This is where honest feedback from friends and colleagues can go a long way, as well as a survey of your favourite blogs to see what works for them.
Explain who you are up front. Ideally, the description under your blog’s title will tell people who you are and what they can expect to find. Information in your sidebar should expand on this with facts about your business, location, and an option for people to contact you. The more you say here, the more likely people will be to think of this blog as an extension of a real-world business.
Try not to leave people hanging in your comments section. If your readers have a question, answer it. Even if someone else has jumped in while you’ve been away from the computer, take the time to acknowledge the question and throw in your two cents. This helps to remind people that there really is someone on the other side of the posts.
A great post that I think you should think more about. In my opinion going back to the fourth point bought up. The look of your blog. Have a look at my other blog and see if you can get your head around the concept. It looks different and can deliver some great information. Unfortunately this blog is boring and does not function very well. This I know has turned many people away but I want to improve it. Unfortunately I can not due to the limitations set out by the people who manage the host domain – correction also Wordpress MU is a little tough to 
Your blog should be interesting to the eye so that it captures the imagination of your reader, otherwise they will press the back button to the google results and look for something better. I am working on making this site better with better plugins and other themes so watch this space. we will make it happen with the help of the crew.
If you have any further comments let me know.
Deon
February 26 2010 | Uncategorized | 4 Comments »
This is an article that is something that will hopefully help you more understand why the dam interest rates go up or down, usually we only complain when they go up, as this directly costs us more money. Although written with a slight US feel, with the words federal, the principles are the same which is why i’d like to share this with you.
Mortgage rates are linked to the trends in financial markets and changes in economy. There are a number of factors that determine the home mortgage rates. The interest rates on home loans are affected by stocks, treasury notes and bonds, inflationary trends, actions of the federal government, international forces, etc. It is better to have an understanding of the changes that affect the loan rates before applying for a home loan.
Here are some of the factors that determine the interest rates on mortgages:
- Federal Reserve discount rate: Federal Reserve Discount Rate is the cost that banks and other financial institutions are charged for borrowing money from Federal Reserve Banks. When Federal Reserve Banks increase the discount rate, it becomes expensive for investors to obtain money and hence they are not able to borrow much. As a result of this, the investors/lenders (banks and financial institutions) increase the rates they charge their customers for home loans.
- Inflationary trends: Inflation reduces the purchase power of money and so lenders increase the interest rates on home loans during inflation. On the other hand, deflation tends to reduce the interest rates.
- Stock market: The stock market plays an important role in determining the home mortgage rates. The stock market fluctuations affect the credit supply in financial markets and this in turn affects the home loan rates. As stocks go up, more money is invested in stocks. More investment may lead to less money invested on mortgage backed securities and this would increase interest rates on mortgages.
- Treasury notes and bonds: The government often sells mortgages (packaged together with treasury notes and bonds) to investors. These are issued in financial markets as mortgage-backed securities. A higher demand for treasury bonds lowers the home loan rates.
There are certain other factors that affect the home loan rates. If international/ foreign investors put in money in the domestic financial market, the rate of interest on mortgages decline. Major fluctuations of dollar in foreign exchange market also affect the home mortgage rates.
February 24 2010 | Uncategorized | No Comments »
There is a nice trend the past few years to buy an existing home and renovate it to either make a capital gain or have a nice home to live in. However I have a feeling that we are soon going to see a shift in attitude and see people buying land in new residential areas and build. This is already done now but I think it will take off.
When buying residential land, you must ensure that the location is not only affordable for your budget but it is also liveable and have a nice environment for your needs. To determine this you need to find out about the current council zoning and their future plans if any are made up. This can determine very quickly whether the property has future potential. There is nothing worse than building a home and finding it worthless because it’s on the edge of the new industrial zone of town, or the new motorway.
Here are some things to keep in mind:
section
Environment and Location.
You must consider the overall standard of other properties that are in the area and think are the buildings you plan to build in cue of the one you’re planning. For example if you are planning to build a new home in an area where there are mainly older homes this may adversely affect the future investment possibilities. It is always tempting to buy a modest property in a lower socio economic area but take a step back and think about what are your needs to the property.
Site and Services.
When looking at your piece of land ensure the site lends itself to accessibility of the services and it has a range of housing design options available. For example if you buy on a steep section your building costs go up and the type of property you can build goes down. The things you need to consider are excavation, engineering, foundations, drainage, transport, landscaping and so many more. Other things is to make sure sewer, water, gas, electricity, phone and that roading, kerbs and other lighting services will be in place before you buy.
Position and Facilities.
As well as looking out for those views if any keep in mind the aspect to the sun. Where can I place my house to get the best aspect of sun? Think about the location to the local shops, schools and other public transport amenities. In the long run this will have a major effect on the saleability of your future house. If the area is new you need to investigate where and when and if new future developments that may be in the area.
Titles:
When looking to buy your land make sure you understand what the title is all about. The best type for buying and selling is freehold, which is free from covenants and other ownership restrictions.
Sub divided and cross leased sections:
Residential zoning by-laws determine how many dwellings will be permitted on one site depending on the land size and the dimensions. Generally when a block of land is subdivided it is chopped up and the sections are of their own title. But sometimes you can get a cross leased section. For more information on this have a look at a previous blog post of mine on titles.
Legal Advice:
Always seek legal advice before purchasing. I only say this as it can sometimes save you a fair bit in the long run. Sometimes a lawyer will be the devil’s advocate and try and put you off a deal. Listen to their advice but remember you are your own boss when it comes to buying your section. Also make sure you get the legal title searched. This means you can find out if there are no caveats or covenants on the land, or no problems over ownership of the land for sale and no legal obstacles to building on the site.
LIM: Land Information Memorandum:
My advice is you must get one of these. It will cost you up to $200 but for the price of the section your buying it will save you a whole lot of issues. It will provide you all the known information on the land including erosion possibilities, subsidence issues, soil type, location of drains, any permits, certificates of land use and any restrictions by the department of conservation or historic trusts. Again read my blog post on LIM’s.
Buying land can be exciting, especially when you’re looking to buy land to develop a house on. Just make sure you do it right.
February 20 2010 | Uncategorized | No Comments »
I have been reading a few things lately about the Real Estate prices in and around Christchurch and New Zealand. There seems to be much talk about the market prices climbing up and up and up in recent months and reaching what one is calling record prices. What the hell is going on. The country is still suffering one of the longest recessions in recent times and Real Estate companies across the board are spouting out that the housing market is in full recovery.
Here is what I read on stuff.co.nz http://www.stuff.co.nz/the-press/news/christchurch/3239911/House-prices-break-record
Christchurch house prices have hit an all-time high as a shortage of properties fuels a market recovery.
The city’s median house price last month was $347,250, up 12 per cent on a year earlier and beating the previous record of $340,000 set in November 2007, Real Estate Institute figures show.
There were 506 Christchurch house sales last month – about the same number as in December 2008.
Bank of New Zealand chief economist Tony Alexander said prices were rising as the low level of new-home building curbed supply, while a rise in immigration and lower interest rates boosted demand.
The market was playing “catch-up” after the recession kept buyers away, he said.
Cities were leading the market recovery, with export concerns and farm debt hurting rural areas.
“I’d expect that prices on average in many parts of the country will continue to rise by 5 or 10 per cent over the next year,” Alexander said.
Longer-term interest rates were rising, but he expected floating and shorter-term rates to stay low until next year, prolonging the market rally.
Real Estate Institute president Peter McDonald said house prices had “definitely stabilised” and were now rising, boosting optimism in the industry.
New homeowner Tania Power said competition from other buyers meant she and partner Marc Greenhill made their top offer to secure the Christchurch home they moved into last week.
The couple spent a year “saving really hard” and watched prices rise.
“There were definitely a lot of people looking when we bought ours,” she said.
“It went to a multi-offer, so we had to offer them the asking price, but it was worth it to get the one we wanted.”
Christchurch real estate agent Rob McCormack, co-owner of offices under the Harcourts Grenadier brand, said houses and sections were selling well.
“There’s a feeling of optimism out there, and I don’t think it’s a dead-cat bounce,” he said. “If we do have a problem it’s getting stock. We don’t have the supply, but there is certainly the demand.”
Rising prices made properties hard to value, and more sellers were prepared to auction their houses, McCormack said.
Statistics New Zealand figures show house-building has been at its lowest point for several decades. About 1500 consents for new homes are being issued each month by councils, half the number from six years ago.
The Real Estate Institute’s figures show prices rose in 11 out of 12 regions in the past year, with the national median price of $360,000 up 9.6 per cent on December 2008.
Of 4957 sales across the country last month, 58 per cent were under $400,000. Homes sold in a median 33 days.
//
In the Canterbury-Westland region, December’s median priced matched the February 2008 high of $320,000 after rising 7 per cent in the past year.
Median house prices in other regions in the year to December were, with annual price growth in brackets: Nelson-Marlborough $343,500 (14.5 per cent), Wellington $400,000 (8.1), Southland $184,000 (10.84), Otago $230,000 (unchanged), Central Otago Lakes $432,500 (1.16), Auckland $470,000 (6.81), Northland $306,000 (minus 2.08), Taranaki $280,000 (7.69), Manawatu-Wanganui $230,000 (2.9).
Come on. Look at the bigger picture and look whats going on. Now I know I am not qualified to rattle off any official stuff. But you have to ask the questions that will this price recovery actually keep going. And when they talk about median prices. The reality is that more higher priced homes have been selling in the last 6 months than in previous homes comparatively to the lower priced homes. From my understanding of going to peoples homes the amount I have been most people who own homes under the 400k mark are finding the times tougher and arent moving.
Compare that to many people who are downsizing their homes at the moment. People in bigger houses in posh locations looking to downsize and have something with smaller mortgages. The reality is that people out there still worry about the prices of homes. Our home affordability allbeit better than previous years is rising fast and is one of the most expensive in the world.
On top of all of this you have to keep in mind we still have an extremely low OCR which is tipped to rise by June this year kissing good bye to the relatively cheap money we have had access to for the past 12 months. Bollard has tipped a mid-year increase in the official cash rate from its current record low 2.5 per cent but the market is anticipating he will start as soon as March and have hiked the OCR by 75 basis points by June 30.
I am sorry to say but if you look at the signs they do not paint a pretty picture. The average Kiwi is going to be priced out of buying a home. And if they do they most certainly will be stuck with a massive mortgage.
I feel the Real Estate industry shouldnt be telling the country that house prices are heading to an all time high. Its just not healthy to be doing this at this time. Sellers will start to expect higher prices. Great if your a home owner though. There is a drought of listings at the moment. A sure sellers market. So what the industry needs to do is attract more listings. Which is what the article above will most certainly do. Before you buy or sell right now make sure you do your research on true facts as there are too many conflicting opinions out there, including mine. But you need to look at cold hard numbers and look at the trends.
Good luck.
January 19 2010 | Uncategorized | 2 Comments »
I just want to send a quick message to you to wsh you a merry christmas and hoping you all a happy new year.
2010 I feel will be a year of massive change in the way we look upon how we live and conduct business within our homes. I look forward to this.
Be safe on the raods and hopefully we will talk next year.
Regards
Deon
December 25 2009 | Uncategorized | No Comments »
The fact of todays market means we all need to all be careful with all our money.
A few years back when I had too much time on my hands I got hold of a good friend of mine and started to produce some material to help people save money and outline steps for buying a first home. Unfortunately this didnt quite get finished in the form that I wanted but hey at least I learnt alot from writing it.
I dont think there is any way of learning more than actually trying to write a book about it. But thats a new story.
For the last few weeks I have been working with some friends of mine who are looking into buying their first home. They have had all the questions in the world and are getting their way through all of them. But there has been one strong thing that has come to light. One has been the planning needed and the other being their financial position. Both are very much needed to make sure success will happen when buying your first home. The one thing you need to plan for is that interest rates are going to go up which will mean the costs will go up in time!
For this reason I thought I should share some of the material that we made a few years ago. The information is fairly common but it is important:
FAIL TO PLAN – PLAN TO FAIL
The amount of money needed to actually survive is a surprisingly small amount. No matter how much money you have to live on, there are always a number of ways that you can reduce your out-goings so that you can make those dollars stretch further.
Up until the Second World War most people counted their wealth not only in terms of money but also in terms of how lucky they were to have family, housing, food on their table and good friends. The depressions prior to the war taught people that being rich wasn’t necessarily how much money you had in the bank but the quality of life that you lead.
Since then the war of materialism has become more and more popular with people wanting to “keep up with the Jones’”. Buying things on hire purchase so that you can have the product today has become the normal way of obtaining goods.
As reliance on ourselves and our bank account increases, and a desire to be dependant on the family decreases, we only have our own resources to help us out when we suddenly find ourselves in a financial bind.
Because we have limited resources, we have to plan much more carefully what we are going to do with our money.
If we are travelling in our car to a particular destination and we know we only have quarter of a tank of petrol, we calculate how far we are going to get on that quarter of a tank of petrol so that we don’t get stranded before we reach our destination. Why don’t we show the same care and attention to the amount of money we have in our pocket?
The main reason that people get into a financial mess is because they do not plan their finances.
IF YOU FAIL TO PLAN THEN YOU PLAN TO FAIL!
YOU NEED TO PLAN YOUR FINANCES
THE PLAN OF ATTACK
We must:
- · Identify where we are right now and have a full understanding of exactly how much income we have coming in and where it goes. We will see how much excess we have left – or how far short we are in paying our bills.
- · Stop further debt. Catch up on unpaid bills and start a habit of paying our bills as soon as they come in. As bills usually give you 20 days or so to pay them, this builds in an amount of flexibility if you usually pay them straight away.
- · Plan debt repayment. Clear all your credit cards and hire purchases by putting extra cash into these areas. Modify your budget and spending behaviour.
- · Start savings as soon as you can. This money is to be used to stop you getting into more debt by allowing you to overcome unforeseen expenses and also to assist in paying for needed purchases with cash. We need to aim at having $2000 as an emergency fund but you must start – even if it is the tiniest amount.
- · Monitor and plan your spending continually to make sure the plan is working and changing with your needs.
I hope this information helps in some way. I am no financial adviser but the basics are important. If you want a copy of the entire book, their are 6 – 60 page booklets that you can download from my server.
All you need to do is just email me.
December 17 2009 | Uncategorized | No Comments »
Should a Green home or a sustainable home be called instead a smart home?
When you think about it when you are planning to build yourself a green home or you’re going to renovate your existing home to a green home you look at the potential products out there which will serve you two basic principles. These been to save you money in the day to day running of your home which will become a sustainable option to the environment on a larger scale and also you look at making the home sustainable for your own self which means the home can look after itself.
Green building is so much more than saving energy or reducing a home’s environmental footprint. There are a few other things that a green home can do for you as well.
New Zealand is rich in resources and values and I believe that creating smart homes here would be a great benefit to society and to all the individuals who live and build them. The housing industry needs to shape up with the way they build houses here in this country. New measures need to be made to future proof and smarten up the houses we build.
So green housing isn’t just an economy thing it is about creating smart homes and future proofing.
There is more on this topic at this Healthy Home Website
December 02 2009 | Uncategorized | No Comments »
Selling your house in a market where there is a very stiff competition with other properties is incredibly a tough thing to do. You need to ask yourself the question. Why am I selling? If you want to sell then prepare for it and if you need to sell then prepare for that as well. The worst case is it can take you years before you can finally sell it. The best thing you can do is to make your property stand out from other houses for sale and maintain it so you can survive the competition. Consider some of these effective ways on how to sell your house in an instant.
I read this and had to share it.
Everybody knows that price is a major factor since most of aspiring homeowners depend on their resources for every move they make. And one of this is buying a house. Make sure to be lenient when it comes to setting a selling price for your house. Consider other offers by potential home buyers. It will greatly help if you place in one of your advertisements that you are open to offers. This will attract more buyers to inquire about your house.
When you attempt to sell your property and the last time you renovated it was a decade ago, then expect that it may not be as attractive to people. Prior to selling your house, make sure to do some small cosmetic improvements like repainting the walls and ceilings, replace destroyed lock and door knobs, remove broken tiles and other related repairs that will help enhance the quality of your home. Bear in mind that home buyers will see your properties as well as other for sale houses, so you should secure the entire package of your house before you list it in the market.
A potential home buyer imagines their own style on your house. Family portraits displayed all over the living room can have sentimental value but once the buyer has seen them, they might be intimidated or they feel they are breaking your privacy. Your house must allow them to feel that this can be their own place if they decide to buy it. Do not leave anything that will imply to them that the house is still the owner’s property. Get rid of all the personal things and other stuff that will make them feel awkward when they go inside.
You might have a tendency to collect anything and everything then place it in your storage room. Before you sell it, get rid of all those stuff since this will make your place overcrowded. It can also imply that it is too small which can discourage potential home buyers. As much as possible, make it appear to be spacious, even if your place is not that big.
Consider the opinion of other people about your house. While you think that your place is a perfect abode, others might not look it that way. Sometimes they see so many flaws and other can also look at it the way you think about it. It pays to listen to those tips and suggestions so you can improve it more and enhance its quality. Do not find it too bad whenever they criticize your house. Everyone is entitled to their own opinion. Just accept them and make them as your basis for improvement.
Now that you have read the suggestions on how to sell your house, try to implement them and you will notice the development as you go along. However, it will also help if you try to put yourself in the place of the buyer. Try to ask yourself what are the things that you are looking for a dream house? Contemplate on it and you will surely sell your home in an instant.
You might want to experience what it is like to live in one of these communities Estancia Scottsdale Homes and Scottsdale New Builds
Article Source: http://EzineArticles.com/?expert=Lian_Canonigo
If you hang in there you will get a sale. One person told me to look at house sales like car sales. When you go out looking at buying a car the first thing you generally find out what kind of car you want and then establish your budget. In regard to a house that is usually by location and price. The next thing we do is look on the internet and or the local papers at the competition that is out there.
Then we look at a few out there and test drive them. For many people in Real Estate terms this can be done in an Open Home.
If you need to sell your home this is when it becomes important. You need to look at your home in a certain light and then figure out what a potential buyer will want from it and then try and establish as many reasons why the buyer will buy. If your house has more features/reasons for the buyer to buy yours and then the price is right your one may be the one they offer on.
November 20 2009 | Uncategorized | 1 Comment »
Why is the Real Estate market showing signs of recovery? The simple answer is there must more buyers out their buying up property. Consumer confidence has jumped to a four-year high, business confidence to a 10-year high. House prices have been rising since February. So are happy days here again? I feel this optimism is built on foundations of miss guided merits and hope – a deeply mistaken belief that the status quo before the crisis was normality to which we can now happily return?
The market in terms of housing has definitely risen. But I do not feel it is with great merit that it has. From the personal experiences I have had I had one property investor I know of buy up 6 properties in two weeks and then stuck them on the rental market. Now she was telling me that the reason she did that was because she has enough equity in the rest of her portfolio so that the banks would lend her money to buy. So with relatively cheaper money she went on a spending spree. Now with the mortgage repayments that are n each of the properties the rent is going to cover them and more.
This is the sad case of today’s market. I am finding that there are more and more people out there wanting to buy property and can’t do it. There are plenty out there though who can, and these people are just scraping in and the bank’s lending them the money to buy. But there are also a great deal of people out there that have so much equity and are looking at the current opportunities with the low interest rates and are snapping up the deals that are coming along.
What we will find is the rich are going to get richer and the poor poorer. The state of the nation is something that under current conditions cannot change or get any better. Rents have been stable over the past two years, while housing affordability is again deteriorating as house prices edge up, interest rates rise and incomes stagnate. Rising house prices and interest rates combined in September to weaken home loan affordability to its worst level since December 2008, the BNZ Home loan Affordability Measure shows.
The apparent recovery in the housing market and higher long term interest rates are adding to pressure on
affordability caused by modest income growth and rising unemployment. The BNZ Home Loan Affordability measure for all of New Zealand showed the proportion of a single median after tax income needed to service an 80 per cent mortgage on a median house rose by 1 percentage point to 59.7 per cent, its worst level since December 2008.
Affordability hit its worst level of 83.4 per cent in March 2008 just after house prices peaked and 2 year mortgage rates were close to 10 per cent. So we are still quite a way off this level but it is not hard to climb back up there.
The median house price rose 0.9 per cent in September to NZ$350,000 from NZ$347,000 in August and is now just 0.6 per cent below its November 2007 peak of NZ$352,000. The average 2 year fixed mortgage rate, which has been among the most popular with borrowers in recent years, rose 8 basis points to 6.58 per cent over the month and has now risen from an average 5.92 per cent in February.
There has being a definite rise in interest in the property market. A number of my friends have bought their
first homes in the past few months and most of them are happy for now there is one who is now struggling very much because of the cost of servicing the loan. This person bought the property and when budgeting in he had a spare 300 per week for expences. Now all he has due to lack of work is $150. This is the harsh reality of today’s climate.
We cannot be certain yet about the market. It is definitely moving but the reasons why it is moving are not publically being truthfully told. The example I set above is not just a one off. There are many doing this and if your going to be caught out in the hype you will be burnt. The fact is that New Zealand has one of the worst housing affordability indexes in the world. This is pricing out all the younger generations from getting their hands on some real estate. Its just typical of us kiwi’s though. We are quite a greedy bunch.
But in all reality what’s going to happen from here? The writing is almost on the wall isn’t it. The media is spouting that the recession is over. But the flow on effect from the recession is going to last for years. Just look at Firestone and Bridgestone. Just in the Central Christchurch area the loss of 240 jobs will happen from December. This has got to have an impact on the state of the local economy everywhere.
Many home buyers jumped in March, April and May of this year to take advantage of lower interest rates and
look for bargains, which improved the number of houses sold and stabilised prices. But short term mortgage interest rates flattened out in late March and longer term mortgage rates began to rise in line with rises on wholesale markets and higher local term deposit rates.
Affordability is increasingly out of reach for most home buyers on a single income. The threshold proportion of after tax income considered prudent to sustainably own a house is around 40 per cent. Anything above that is starting to become unaffordable.
For the first home buyer the affordability also deteriorated in September. The proportion of a single after tax pay needed to buy a first quartile house rose to 51.6 per cent from 50.1 per cent in August. This is the highest level since November 2008. The first quartile house price rose in September to NZ$250,000 from NZ$245,000 in August.
From here on in what it looks like is that interest rates will rise to try and tackle any inflation coming out of the recession. Money is getting more expensive for the banks to borrow from overseas which will mean that our mortgage rates are going to climb. But where does all this leave the old house price. Well the recent rise in housing may not be long lived. There are two things that could happen.
House prices will come down again to allow the market to actually become more affordable to the average kiwi. This may see investors and the baby boomer type of person with a few properties let their properties go for less than market value just to loosen the purse string.
The house price flat lines and the average kiwi cannot afford to buy their first home or buy a home for their expanding families. This will see many social implications for New Zealand and it will be sad.
It will be interesting to see what happens from here on in but the nice glorious days of housing and the property market is still very much under extreme pressure.
October 25 2009 | Uncategorized | 3 Comments »
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