Mortgagee Sales now account for 4% of all house sales. This is a disturbing statistics. It is horrifying to think that 1 in 25 houses selling on the market today are mortgagee sales. For statistics
Regional towns across New Zealand are feeling the squeeze as mortgagee sales hit another historic high in September, according to the latest figures from Terralink International.
The data released today showed 343 registered mortgagee sales – up on the previous record number of 321 in July this year.
September 2009’s figures are up 130 per cent from the 149 mortgagee sales recorded in September 2008.
In September 2007, prior to the recession, there were 16 mortgagee sales.
Terralink Managing Director Mike Donald said the new record figures followed an uncharacteristic dip in mortgagee sales the month before.
“The continuing increase in mortgagee sales came as no surprise because all indicators showed the worst was not over for property owners. I don’t think we’ll see a true decline until sometime next year,” he said.
Regional towns and cities showed the greatest increases in mortgagee sales, Mr Donald added.
The number of mortgagee sales in Manawatu has doubled in a month from 11 to 22, Hawke’s Bay has gone from 15 to 24 and there were 32 mortgagee sales in the Waikato region in September, up from 18 the month before.
Northland, Otago and the Bay of Plenty also saw significant increases.
“The recession isn’t just hurting people in the big cities, small town New Zealand is clearly hurting too,” Mr Donald said.
Christchurch was the hardest hit main city, up from 19 mortgagee sales in August, to 29 in September.
figure source: NZ Herald
As I see it now there is no logical reason as to why house prices in New Zealand haven’t yet crashed in a dramatic way like the rest of the world. Not only is farming bad but tourism is terrible. Mortgagee sales and mortgagee auctions have risen 100% in Northland from May 2008 to May 2009, In Auckland during the same period, they rose 211% and in Wellington 1000%
This begs me to ask why are people getting themselves into the hassle of mortgagee sales but unfortunately its just about people not taking the right measures to avoid it. But I still receive emails from people asking why do people get themselves into this situation and others asking what actually happens in a mortgagee sale. So here is a quick excert from a New Zealand Website that details what a mortgagee sale is…
So what happens at a mortgagee sale?
A mortgagee sale is the final stage of the mortgagee process, at which the property which is the subject of the mortgagee action is sold at public auction to the highest bidder. The sale is conducted by a court-appointed referee. The referee commences the sale by reading aloud the Terms of Sale; the Terms of Sale is the document that acts as the contract of sale between the referee and the high bidder, and sets forth the rights, responsibilities and obligations of both the referee and the high bidder. Once the referee has read the Terms of Sale, the referee begins to accept bids for the property. The foreclosing mortgage holder (the “Mortgagee”) usually has an “upset price” which is the minimum amount it will accept in satisfaction of the mortgage debt. If the highest amount bid is less than the upset price, the Mortgagee will usually be the high bidder and take title to the property. If, however, the highest amount bid exceeds the upset price, the property will generally be sold to the highest bidder.
How does this happen?
If you fail to make the payments due under a mortgage on your home, the lender (the “mortgagee”) has the right to recoup the loan amount through exercising the powers contained in the mortgage contract. Usually this is done through the power to sell the property.
The mortgagee must, however, fulfil certain strict legal requirements, including serving you (the “mortgagor”) with the proper notice. If these requirements aren’t met then you may be able to apply to the court for a remedy.
Mortgagee must serve you with notice before taking action
Before taking action the mortgagee must serve you with a notice under section 92 of the PROPERTY LAW ACT 1952. This notice must adequately inform you of:
- the nature and extent of the default complained of (that is, the amount by which you are in default)
- the date by which you must remedy the default
- the rights that the mortgagee is entitled to exercise if you don’t remedy the default by the specified date
The date specified must be at least four weeks from the date on which the notice is given. But if the mortgage contract specifies a period for this that is longer than four weeks, the date specified in the notice cannot be earlier than the end of that longer period.
If you receive a notice from your mortgagee that does not comply with the legal requirements, you may be able to apply to the court for an injunction to prevent the sale going ahead. Further, if the mortgagee exercises the power of sale before the date specified in the notice, you may also be able to apply to the court for a remedy.
The mortgagee’s duty to obtain the best price
The mortgagee has a statutory duty to take reasonable care to obtain the best price reasonably obtainable as at the time of sale. If the mortgagee breaches this duty, you can apply to the court for a remedy.
To satisfy the duty the mortgagee must adequately market the property, which may involve advertising outside the local area, giving notice of the property’s advantages (including the potential for any development), and setting a realistic reserve price based on the property’s valuation.
Three ways of exercising the power of sale
The mortgagee can exercise the power of sale in one of three ways:
- sale through the High Court Registrar
- sale through public auction
- a private sale
Sale through the Registrar
If the mortgagee chooses to exercise its power of sale through the High Court Registrar, it must apply to the Registrar and notify the Registrar of the name and address of the mortgagor and of any other mortgagee. The Registrar must be satisfied that the mortgagee is entitled to exercise its power of sale.
A mortgagee is entitled to buy the mortgaged property only if the sale is conducted through the Registrar.
Your right to redeem the property
There is a small degree of protection afforded to you, the mortgagor, through the “redemption price” – this is the price at which you may redeem the land to be sold. At any time before the Registrar’s sale you may pay the redemption price or the amount due and owing under the mortgage; the mortgagee must then release the mortgage.
The redemption price is set by the mortgagee, and must be specified in the mortgagee’s application to the Registrar to conduct the sale. Any advertisement for the mortgagee sale must state that the redemption price is available at the Registrar’s office and can be obtained before the auction.
The best thing to do is talk to your lender and your solicitor early to avoid heartache.
The reality is that real people are having mortgagee sales. Its as easy as a person losing their job. For example a friend of mine lost his job, have a mortgage holiday but his new job did not give him enough money to pay the mortgage. He then was notified that his home was going to be sold and there was not much he could do. This is very real and looking at the economic situation out there there will not be a sudden drop off from these types of sales.
November 22 2009 | Sellers and The Market | 4 Comments »
There have been many reports recently stating that “experts” are seeing a turnaround in several segments of both the commercial and residential real estate markets here in New Zealand. But I find it hard to see this and put credibility on these reports. I justify this by saying there is no other crux that is more closely tied to the fundamentals of real estate than employment and there is no indication that we are close to seeing a peak in unemployment.
I say this because yesterday I had to do something I am really not proud of but I had to seek some financial assistance to get me through the times that most of us are experiencing. During the time I was at the IRD and other various offices talking to people there was a very clear trend happening. There is very little work out there and there are a lot of people seeking the same advise and help I was asking for. My bank manager told me that there were hundreds of people just from our branch on a 3 month mortgage holiday at the moment. Let’s hope those people can keep their homes once they come off.
We are presently at an unemployment rate of 5% nationally and economists estimate that there will be a peak of 9%-10% to as much as 11% before the trend reverses.
The national unemployment rate of 5% from the March quarter 2009 is a result of employers cutting more jobs to counter the lower sales and revenue being generated. This is the highest unemployment rate that this nation has seen since late 2003. There have been a huge amount of jobs lost in the last 12 months and it’s not looking to stop.
Redundancy or job loss seriously impacts upon a families ability to meet their financial obligations. Buying food, paying utility bills, covering personal debt and making mortgage repayments represents a real and lasting challenge for those that don’t have adequate unemployment insurance in place.
People that were struggling with debt when they were in work are unlikely to find that losing their job helps their plight. The lack of a regular income also means that negotiating a suitable monthly repayment figure with creditors is vastly more difficult for cash-strapped families. Some debt solutions are also no longer available for struggling families.
Rising unemployment doesn’t just affect those that have lost their job, it also affects peoples’ ability to negotiate wages or secure a better employment package when they find a new job. Those that are actually in work fear for their own job security; employers realise that the bargaining power of their employees’ is reduced and are better placed to control wage inflation.
Since the start of the recession, redundancies and job cuts been lost across many sectors from retail to manufacturing, but the hardest hit industries for job loss has been finance, construction, tourism and real estate agents.
The effects of the credit crunch are flowing through to the real economy in New Zealand NOW and this meant 1000 people a week were signing up for the unemployment benefit, half of them in Auckland.
As unemployment rises, people who have either lost their job or fear losing their job do not move to a larger rental apartment and do not move from a rental unit to purchase a residence whether it is a single family home, or a matured family or an individual. People tend to stay at home longer and save money in a recession. People tend not to move around and spend money moving unnecessarily. This is one of the big reasons we are seeing a housing shortage in some areas of the country.
There are still buyers out there wanting to buy. Not in huge numbers but just enough to keep agents busy. But as I just said there is a shortage of houses for sale. It is easy to see how the fundamentals of Real Estate are tied into the unemployment ratio. As we see higher unemployment in New Zealand over this recession and winter we will see a slow Real Estate Market with both slow sales and possibly decreasing values as mortgage sales and desperate sellers compete.
|
Seasonally adjusted
|
March 2009 quarter
|
Quarterly change
|
Annual change
|
| Unemployment rate |
5.0%
|
+0.3
|
+1.2
|
| Unemployed |
114,000
|
+6.1%
|
+34.2%
|
| Employed |
2,181,000
|
-1.2%
|
+0.8%
|
| Not in the labour force |
1,062,000
|
+2.5%
|
-1.1%
|
| Labour force participation rate |
68.4%
|
-0.7
|
+0.7%
|
June 23 2009 | The Market | 2 Comments »
Christhchurch Property Trends
Property values in Christchurch declined by 8.1% over the past year (calculated over the three months ending May 2009 in comparison to the same period last year), an improvement on the 9.6% annual decline reported in April. The average sale price for the city decreased slightly from $342,929 to $339,695.
These annual numbers need to be treated with caution, as the same period last year was a time of decline, measured against the month ending May 2009 which shows a period of flattening. So by default the numbers will show a recovery. It is a positive sign as far as market sentiment goes, but it is still too early to tell whether this 3-month stabilisation is the start of an extended levelling-off period. The small decrease in the average sale price is easily skewed by the mix of property being sold, so although this has limited value, it does reinforce a flattening in the market.
Suburban Christchurch has held well, with the central, northern, eastern and hill suburbs all showing an ease in the rate of annual decline. The central and northern suburbs are showing the largest recovery of 2.7 per cent” Mrs. Swallow said.
Mrs. Swallow of QV says “Anecdotal evidence from different market segments suggests the level of activity to be strong under $350,000, which typically represents the entry-level and investor part of the market. This is followed closely by the $350,000 to $600,000 market segment, which generally represents the next step up the property ladder for most people. The market segment of properties priced over $600,000 appears to have the least amount of activity. Again, this needs to be kept in context as it represents a much smaller part of the market overall. Properties over $1,000,000 are very slow to sell in Canterbury at present”
It seems as though job security is still the key driver behind purchase decisions at present. This lack of security, coupled with the normal seasonal variation, means we expect to see a continuing pattern of consolidation over the winter period
Property values continue to stabilise
The QV national residential property indices for May showed an 8.1 per cent decline in property values over the last year, a considerable improvement on the 9.2 per cent decline reported last month. This is the second month in a row where the year on year change has improved.
This improvement is due to continued stabilisation of property values in recent months, and contrasts significantly to a market that was declining sharply twelve months ago.
This latest trend as I pointed out in my last blog post is unlikely to continue. So if you need to sell, sell now!
|
|
|
|
|
 Auckland Region |
| -7.6% |
| $483,397 |
| Hamilton |
| -7.5% |
| $346,274 |
| New Plymouth |
| -5.4% |
| $319,073 |
| Palmerston Nth |
| -8.9% |
| $274,418 |
| Christchurch |
| -8.1% |
| $339,695 |
| Queenstown |
| -8.4% |
| $600,414 |
| Invercargill |
| -10.3% |
| $205,552 |
|
 |
| Whangarei |
| -12.8% |
| $327,073 |
| Tauranga |
| -9.4% |
| $425,621 |
| Rotorua |
| -9.5% |
| $267,342 |
| Napier |
| -8.9% |
| $311,373 |
| Hastings |
| -9.7% |
| $295,508 |
| Wellington Rgn |
| -7.4% |
| $424,411 |
| Nelson |
| -6.7% |
| $333,812 |
| Dunedin |
| -5.4% |
| $264,180 |
|
|
|
| New Zealand |
| -8.1% |
| $371,555 |
|
Annual Property Value Change
Average Sales Price |
|
|
|
|
|
 |
|
|
source QV
What is the Market Doing Now?
The last property slump was in the early 90’s and in that time New Zealand experienced a mass exodus with immigration figures at one stage peaking at close to 40,000 (decrease) in a 12 month period. This created a surplus of housing and resulted in subdued sales and lower prices. At least through this recession migration figures have stayed in the positive. The lowest point was in February 2008 recording a net increase of 4600 over a 12 month period. Figures from Statistics NZ show seasonally adjusted net migration rose to 2,030 in April from 1,690 in March and is running at 9200 over the past 12 months. So with net migration figures in the positive, and still growing, it will only be a matter of time before this influx creates buyer demand and turns the property market from a “buyers” market to a “sellers” market.
Interest Rates – They are on the move so be prepared to act fast.
Longer term interest rates are still continuing to rise. This is a bit of a concern and disappointing for those who like to lock in long term. However the short term rates are very attractive and offer some significant savings. I wouldn’t expect to see any significant reduction in long term rates as the market is pricing in at the higher levels now. With the enormous amount of “money printing” by Governments around the world the next problem will be inflation. And that means higher interest rates. So fixing at 7.5% now may actually seem cheap in 2 or 3 years time as interest rates may escalate. Clients who have fixed for 4 or 5 years over the past 6 months will be on a winner if this eventuates. Whether you fix short or long will depend on your situation and strategy so don’t hesitate to call if you want some advice in regards to your situation.
Current interest rates
6month 5.45
1yr 5.50
2yr 6.25
3yr 6.99
4yr 7.50
5yr 7.99
June 11 2009 | The Market | 4 Comments »
Our Housing marketis in worse shape than Australia’s but is also likely to avoid as deep a correction as in the U.S. and Europe. The Reserve Bank of New Zealand has cut 575bp since July 2008 to 2.5% in April 2009 but longer-term, fixed mortgage rates have recently begun to rise again due to expectations of a quick recovery and higher interest rates. Fiscal policy has been laissez-faire towards the recession, opting merely for tax cuts as the government would rather not stand in the way of the economy’s structural adjustment. With housing assets 5.7 times the household disposable income, New Zealand property markets are even more leveraged than their U.S. counterparts.
House prices fell 8% in 2008 and are down 9.2% y/y as of April 2009. Some analysts believe the housing market will bottom on an annual basis in 2009. The housing market has already bottomed on a month-over-month basis, with the median price rising from $325,000 in January 2009 to $340,000 in April.
Immigration has revived housing demand and sales have been strongest in the low-end segment thanks to increased affordability. However, new building starts and new home sales remain below the boom levels of 2004 and will likely remain so due to credit constraints, rising unemployment and sluggish economic growth in the year ahead.
To have a detailed look at what has been said about the rest of the world and the state of their housing markets visit this site.
Source: RGE
May 28 2009 | The Market | No Comments »
I am not going to harp on about any statistics or any comments made by the so called experts. All I would like to see here is a real discussion on what you actually think and what your actually seeing out there on the streets. For several months now I have speaking directly to business owners and I have seen a very clear trend with most of them. The exceptions being liquor stores and video stores .I will explain soon.
In my time speaking to businesses there has been a very downward spiral in their sales. Since Easter there has been a drop off to very slim pickings in terms of sales. I have even noticed this within the business I have been working where I have noticed sales drop to half of what they were 4 months ago and we haven’t been alone in this. I have had almost all of the 400 businesses I am dealing with say the same thing except for those exceptions I said before.
You don’t have to be a rocket scientist to think that its hard out there now. Just drive down the main street of Christchurch or any City in New Zealand and see how many businesses are closed down and how many shops are closed.
Is winter going to be a downturn in the masses where we see much more the redundancies that we are already seeing. From what I see most business owners have less money. The waged people are safe until their employer can’t pay them anymore which is seeing most keep their hands in their pocket when it comes to spending and only spend limited amounts when they need to. This is why the liquor stores and video stores seem to be doing well as people must be staying home drinking and entertaining.
In your observation what are you seeing. Have you been in or are you in a situation that is causing you to budget. Please leave comments, let us know what’s happening out there on the ground.
May 13 2009 | The Market | 1 Comment »
New Zealands Official Cash Rate has been cut again to 2.5% which is a further sign that the Reserve Bank is trying to stimulate the economy. Dr Alan Bollard this morning said to the people that he sees the Official Cash Rate being low for around the next 18 months as the economy is finding its place and evening out.
Bollard says “We expect to keep the OCR at or below the current level through until the latter part of 2010. The OCR could still move modestly lower over the coming quarters,” he went on to say; “The world economy deteriorated further than expected in the first quarter of 2009. While monetary and fiscal policy responses in many countries have been substantial and there are some signs of stabilisation in some countries, we still expect the adverse economic forces generated by the crisis to remain dominant throughout 2009. The timing and e
xtent of global recovery remain highly uncertain.”
The OCR is the lowest it has been for 10 years and is now at a record low for New Zealand. Bollard wants to see banks passing on this cut to the consumer. The last OCR cut saw an increase in the 5 year interest rates which didnt impress many of the NEw Zealand public but due to the high cost of borrowing from overseas the banks couldnt sustain the low rate on the 5 year loans. To the right is the graph of the OCR trend in the previous 5 years; picture supplied by Christoph Lukasser
Westpac Bank has moved quickly in response to the OCR cut, saying it was cutting its 6 month home loan rates by 0.4 per cent. This brings its 6 month home loan rate to 5.39 per cent, due to come into effect this Friday. As with most times when the OCR is cut our New Zealand Dollar dropped again this time The New Zealand dollar plunged nearly 1cagainst the American Dollar from US57.34c to US$56.46c
Bollard went on to give a little optimism to the markets by saying; “We expect the large decline in the OCR over the past year to pass through to more borrowers over coming quarters as existing fixed-rate mortgages come up for re-pricing. This, together with the stimulus from fiscal policy, will act to support the New Zealand economy and eventually see activity trough and pick up thereafter. However, the scale of the global financial crisis and domestic adjustments underway are such that it is likely to be some time before econ
omic activity returns to robust and healthy levels.”
In my view there is still a long bumpy road ahead for the economy in New Zealand and around the world. The Swine Flu has not helped matters at all with already Pork exports stopped, tourists from around the world cancelling their trips and New Zealanders deciding not to travel abroad. This will cause the econonomy to retract even further than it already has and with winter on its way will hurt many businesses in the pocket. With Bollard saying the OCR will stay low for around 18 months will give businesses and people confidence of knowing what levels to look forward into, espessially over the summer of 09/10 where many businesses including mine are going to have to plan ahead for and try and grow.
It will be rather interesting to see how the New Zealand economy is going to fear in the next 6 months over the winter period with all the things happenoing in the world at the moment. What do you feel will happen?
April 30 2009 | Buyers and The Market | 1 Comment »
Christchurch
This is the latest Press Release from QV.
Property values in Christchurch decreased by 9.7% over the last year (calculated over the three months ending March 2009 in comparison to the same period last year), deteriorating further from the 9.1% annual decline reported in February. The average sale price for the city increased slightly from $344,816 to $349,442.
Melanie Holcroft of QV Valuations said; “The Central and Northern suburbs are holding as the strongest areas of Christchurch City, with the Eastern suburbs mirroring the Canterbury market. The Hill suburbs have decreased from -8.1% in February 2009 to -9.9% in March 2009. The upper end of the market seems to be experiencing less activity compared to the middle and lower sections”.
“Property values since December 2008 continue to decline, although this appears to be at a slowing rate. Whilst the average sale price for Christchurch City shows a small lift, it must be kept in context as this data is easily skewed by normal market fluctuations and the mix of property being sold,” she said.
“The anecdotal signs of increased market activity with properties that are well priced continue on from last month, and buyers are showing plenty of interest in these. It should be noted however that the overall sentiment is still cautionary, with job security appearing to be the key driver affecting purchasing decisions. Local banks are also reporting a noticeable increase in pre-approvals, but this is still slow to filter through into market activity. We anticipate a slower market over the winter months, with current trends in line with seasonal behaviour,”Holcroft said.
Here is a snap shot of New Zealands Median Price for Property over the past 9 years.
Now here is the median for the same 9 year period in Christchurch.
The trend is very much the same.
Now the big change that agents have noticed is the drop in sales volume. Here is a graph from treasury that shows the drop in sales volume over the last two years and how it has changed.
As you can see there is a huge drop of with sales volume at about the time of the housing crisis in The United States which has evolved to the global credit crunch. But on the other side of this look at how steep the sales volume grew. This is post the 9/11 Twin Tower events which saw the number of migration of ex pats and new people to New Zealand grow at very fast rates as the graph below shows.
Now whether 9/11 was hoaxed by the Illuminati in a bid to change the world and protect certain people wealth or it was a real act of terrorism are still up for debate but the after effects have been more than anyone can detest. The jobs and employment from the upbeating of security was massive and in New Zealand the return home of thousands of New Zealanders pumped billions into the economy. But this caused the bubble that just kept getting bigger and bigger and created more and more debt. This debt is the real reason for the market the way it is. Now we have inflated prices with less capital and the same amount of debt.
When will the housing market start to move again.
Signs are already of more activity and there is a clear sign of migration numbers increasing as more people return home. These people have to live somewhere.
April 25 2009 | Buyers and Sellers and The Market | 1 Comment »
Today all over the new there has been a story about these australian couple from fushnchups.co.nz that posted a blog about New Zealand slagging us off to the aussies and other parts of the world. I think this is a typical Kiwi vs Aussie rivalry that will always go on. But have a look and see what you think of the website which is Fushnchips.
Here is the article that was posted on the NZ Herald website.
An Australian couple has upset Kiwis with an online expat guide which warns that Auckland is a “horrible soulless city” and its inhabitants are “hobbits” who cannot dress properly.
The anonymous duo have used their website, fushnchups.co.nz, to attack their new home here, rubbishing everything from the country’s beer to its major cities and lack of worldliness.
“I was horrified that I couldn’t buy a copy of The Age, even in the major bookstores. True story,” wrote the bloggers, a professional couple in their late 20s.
They sum up the largest city, Auckland, as horrible and soulless, a comment the city’s tourism chief executive, Graeme Osborne, took exception to.
“Maybe they’re just envious that Auckland recently rated ahead of every Australian city as a tourist destination,” Osborne said.
“They should get in touch with me personally and I guarantee I’ll change their impression.”
The couple also trashed Rotorua, a popular tourist destination famed for it sulfuric activity, saying it “absolutely stinks”.
“It smells like the whole town let rip at once,” they say on the site, set up as a guide for Australians contemplating making a move over the ditch.
“Can blokes (in Rotorua) get away with letting out a silent-but-deadly in bed next to the missus?” they ask.
“How do people tell when their eggs have gone off?”
Ruth Crampton, from Destination Rotorua, said the Aussie bloggers had missed the point.
“It’s the smell that makes us special,” Crampton said.
“And didn’t they read that scientists have discovered the gas which causes smell is great for men’s sexual arousal and prowess?
“That’s a reason to visit.”
The New Zealand beer brewery, DB, took exception to an open letter on the site which says the national brew is lacking in hops.
“They can’t be serious,” a DB spokeswoman said.
“We’ve got some of the best beer in the world.”
The bloggers also waded into touchy trans-Tasman waters, laying claim to pavlova and Phar Lap, but adding “you can have Russell Crowe”.
Professor Philippa Mein Smith, of the NZ Australia Connections Research Centre at the University of Canterbury, said the comments were “pathetically rude” and did nothing to help the two countries relate.
Picking up that the young pair were from Tasmania, she decided to give some back.
“Isn’t Tasmania the butt of all the jokes over there?” Prof Mein Smith said.
“They’re just attacking us because they themselves are at the bottom of the pecking order back home.”
- AAP
I think it is important to realise that New Zealand is a great country to live in and then realise that this country is the country we all live in and grow up in. Most of the People I know that have visited this place love it and have always enjoyed their stay. This is a tourist destination most people around the world long to come to to visit and experience the Kiwi culture. Auckland is Auckland.
At the end of the day we have a multi cultural nation and I am proud to be part of it. But people are able to have their own opinion but when it comes to being on a website like theirs its a little rich. But hey you cant look at it just as a negative. Its a little bit of a laugh and if i were reading about it from some other country id probably be quite interested to see what the whole thing was about.
The great thing is that New Zealand is as well as being multi cultural is a very diverse country. There is a vast difference when you go from one part of the country to the next. Every city you visit is different and every rejion is different. I have lived in so many places in New Zealand and I can say that not one place was the same. As with anywhere you have the good places and the bad but I think the people of New Zealand make this a good place. Most people are friendly and because of the diverse culture you can learn a lot from different people.
I have had a good look through their website and it is funny in a way. It has a quirky nature that I know the Australians have which is great fun most of the time. But are the things this couple have been saying a little over the top. In their blog they call it a “piss take”.To some people maybe yes and to some people maybe no. Everyone has their own opinion.
I would be very interested in seeing what people think of this story.
March 24 2009 | Uncategorized | 9 Comments »
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 »
The article below is an article that has been published in the New Zealand Herald and after reading it though I thought was one of the most informative and interesting articles that details the problems that we are facing in terms of our New Zealand housing market. Simply put the prices of our houses in New Zealand are high. Housing affordability is becomeing alot better but is still a long way off the rest of the world. Have a read through this article and leave your thoughts at the bottom in the comments box.
According to the 5th Annual Demographia International Housing Affordability Survey, buying a home in New Zealand is prohibitively expensive due largely to planners.
The reality, however, is far more complex.
In this instance, coming second to Australia is not so bad. The Aussies are the undisputed world champions in unaffordable housing – a home in the lucky country costs 6.3 times the average annual household income.
But New Zealand is not far behind. Buying a house in Godzone is prohibitively expensive too – 5.7 times average household earnings. Crikey. That’s almost double the rule of thumb for affordable homes – that they should cost no more than three times annual household income. In Canada the “median multiple” is just 3.5. And in the United States, it’s 3.2. How the hell did things get so out of whack Downunder?
According to the 5th Annual Demographia International Housing Affordability Survey, the root of the problem is planners – specifically the way their zoning rules and regulations constrain the supply of land.
Free up the supply of land, especially at the city fringes, says Demographia and housing will become affordable again. More suburban sprawl brings housing for all.
What may be surprising about Demographia’s analysis is not that it reflects a property developer’s ultimate fantasy, but that the Government is buying its message.
“National understands there’ll be property cycles, but the recent cycle has been so extreme as to suggest there are fundamental problems with how the market is operating, notably around the supply of land,” said Housing Minister Phil Heatley last week.
“This research proves that many first-home buyers are excluded from entering the property market by a number of factors, including restrictive zoning and consent laws, which not only make life difficult for ordinary Kiwis but are major factors in New Zealand’s poor productivity and economic growth levels.”
Actually, the research doesn’t prove anything about restrictive planning. And before jumping on the Demographia bandwagon, the minister might want to take a closer look at the survey.
The non-profit social change agency, Shelter New South Wales, commissioned research in October 2008 to do just that. It found the overarching methodology flawed, pointing out that it includes all house prices across an entire city – multimillion-dollar properties alongside lower cost homes.
That can easily give a skewed impression. “A city with a high median multiple might have large numbers of affordable properties that operate as separate housing markets in the city,” says the research. Demographia only includes home purchases, excluding dwellings in the public and private rental sector, which are important sources of affordable housing supply.
Andrew Coleman of Motu Economic and Public Policy Research is concerned too that Demographia’s analysis doesn’t take into account the essential financing cost of a house over an extended period of time. “For most of the last decade New Zealand has the highest interest rates in the OECD, so that makes housing far less affordable in New Zealand than elsewhere.”
Another feature not taken into account is the increase in the average size of new houses in New Zealand – from about 130 square metres in 1990 to just under 200 square metres today. He notes too that the boom in house prices in New Zealand has occurred in places like Timaru which have few problems with land availability. “It’s not really obvious that we have constraints in finding sites to build on .”
Shelter NSW’s research argues housing affordability is a complex mix of supply and demand variables including income levels, employment trends, access to (and the cost of) finance, demographic shifts, and housing preferences.
“The Demographia surveys reduce this very complex issue to a simple casual relationship between house prices and assumed planning constraints on land supply,” says the research.
The research takes issue with Demographia’s claim there is an economic consensus regarding the role of “prescriptive planning” in causing housing affordability loss.
Demographia: “There is a growing consensus that more land must be made available on the urban fringe to accommodate new residences and that a competitive land market needs to be restored.”
Shelter NSW: “Most authoritative economic sources focus on demand factors (eg falling real interest rates, strong economic growth, immigration rates, and, in some countries, weakening lending standards and easy credit) to explain house price growth…”
Shelter NSW’s research also criticises that lack of empirical data on whether a city’s planning regime is “prescriptive” (bad) or “responsive” (good) and concludes that Demographia’s planning data “conveniently reflects the subjective impressions of the authors.”
But while Demographia’s view may be understandable, given that one of its authors is Christchurch property developer Hugh Pavletich, the overall finding that housing here, and especially the land component, is overpriced, can’t be denied.
Other housing affordability indexes paint a similar unaffordable picture. But unlike Demographia, they focus on the cost of mortgages and highlight the fact that – thanks to falling house prices and falling interest rates – the tide is turning rather sharply.
Interest.co.nz shows that it now takes 59.6 per cent of one median after-tax income to pay the mortgage on a median priced house purchased in December, down from November’s 63.8 per cent. The index was a whopping 81.1 per cent a year ago and 52.3 per cent five years ago. It reached its highest point – 82.9 per cent – in November 2007.
But as Interest.co.nz managing editor Bernard Hickey points out, while prospects are improving, housing is still out of reach for most. “We reckon housing isn’t affordable again until we get near the 40 per cent mark, where it was in 2002 and early 2003.”
For household incomes the picture looks better. “Median-priced housing is now affordable for families in New Zealand when both adults work,” says the website. On this measure it now takes 38.9 per cent of a median household take-home pay to service a mortgage of a median home purchased in December. That’s down from 41.6 per cent in the previous month and a year ago, when it was 52.8 per cent. But it’s not as good as five years ago when the index was 34.5 per cent.
First-time buyers, however, continue to struggle. It now takes 52.2 per cent of one median income of a person in the 25-29 age group to pay the mortgage on a lower-quartile priced house in December, down from November’s 54.4 per cent.
“Essentially a single median income for a first-home buyer is not high enough to buy a lower-quartile priced house, even with a deposit around 10 per cent of the house’s value,” says the website. “However, a couple/family with more than one income may find the lower-quartile house price is affordable.”
Massey University’s Home Affordability Index to November paints a similar picture – showing affordability improved 4.6 per cent over the last 12 months. The national index is based on median house prices, average personal income and mortgage interest rates. In November it was 32.31 – still a long way off an affordable 20 last seen in November 2002. (A low index equals improved affordability).
But just when the trend towards affordability is improving, a new barrier has emerged – the banks’ increased deposit requirements. Whereas in the past, banks regularly lent 95 per cent and sometimes 100 per cent of the mortgage, they now require a 20 per cent deposit. “Based on current income and house prices it will take an individual 8.2 years to save the 20 per cent deposit as now required by most banks,” says Interest.co.nz. A first-time buyer wanting a lower quartile priced house will struggle too – taking 6.6 years to save the 20 per cent deposit as now required by most banks.
Despite such hurdles ahead, Demographia maintains freeing-up land on the fringe of metropolitan urban limits will save the day. Pull up the boundary fence and let the city limits push out. In its vision of suburban paradise, Demographia does not dwell on the downside – that a more sprawled-out Auckland for example would result in increased infrastructure, transport and social costs.
There’s another problem too. Changing zoning laws doesn’t automatically lead to cheaper land – especially when greenfields land is concentrated in the hands of a few land-bankers.
Professor Bob Hargreaves, of Massey University’s Property Foundation, points out that the land-bankers would need some other incentive to sell. “Research shows that freeing up the land doesn’t make much difference. The reality is, it’s not in the developers’ interest to suddenly dump a lot of sections on the market at low prices. There has to be some penalty on developers if they just sit on land and don’t bring it into the market, but I’m not sure on how you do that.”
From a developers point of view, Hargreaves says it makes sense to corner the market and drip-feed sections on to the market to get a higher price.
A closer look at Demographia’s list of 87 “affordable” housing markets in North America gives new meaning to the word. “Is it any coincidence that the top 20 most affordable markets are in economically distressed regions?” asks Keith Hall, chief executive of the New Zealand Planning Institute and a member of the American Institute of Certified Planners. “These are mostly the ‘rust belt’ cities of the American Midwest and neighbouring Ontario in Canada, areas chronically plagued by high unemployment among predominantly blue collar auto industry workers. The one exception to the auto-steel industry connection among the top 20 is a community on the equally distressed Atlantic Coast of Canada.”
Hall, who stresses his views are his own and not the official position of the New Zealand Planning Institute or American Planning Association, says many of the cities in Demographia’s affordable regions are mostly inland cities in the vast Midwestern flatlands of humid summers and extremely cold winters. “The first Sunbelt city on the list, Killeen, is best known for its large Army base, and a 1990s mass murder that made global headlines.”
Unplanned and unzoned Houston is often touted as an example of how the lack of growth management and the absence of planning can maintain regional affordability. But the irony of Houston is that it’s a city with lots of planners. “That is where I began my career in planning,” says Hall.
Yes, planning processes in Houston are certainly different, and both the regulatory environment and the flat coastal landscape allow unabated sprawl in nearly every direction. But, says Hall, a key advantage to Houston’s system of planning is that it has facilitated central city intensification. “Even in free market Houston, there is strong demand for high quality, medium and high density housing in walkable, mixed-use neighbourhoods with good public transport access.”
Hall also owns a house in Houston – a convenient six blocks from a tram line that passes close to every sports stadium, most of the city’s world-class museums and performance venues, two universities, and the headquarters of many corporations. The convenience did not happen through random dropping of a sports stadium here and a museum there says Hall. Planning took place to ensure that these major investments captured “the synergies of co-location”.
As to affordability, Hall points out that while mortgage interest rates are significantly less in the United States, property rates, insurance, and utilities costs offset Houston’s affordability when compared to Auckland.
Looking at Demographia’s 64 “severely unaffordable” housing markets in North America, Hall notes most are coastal cities and many are near mountains. “Never mind the artificial constraints that politicians place on these cities with their growth management and zoning regulations, these cities face real limitations on growth in constrained geographies.”
“If you want to live in an affordable housing market, why not move to the most affordable city on the list?”, says Hall. Homes are affordable in Youngstown in Ohio because more people are relocating away from, rather than to this prime location also known as “Murder City,” and offering the “Youngstown Tune-Up” – auto worker slang for the city’s frequent car bomb assassinations.
A close reading of the Demographia data shows “affordable housing” is found largely in flat terrain with extreme climates, high levels of crime, dying economies, few natural amenities, and limited prospects for academic and professional achievement for the next generation.
But Hall, like Shelter NSW, says the value of the Demographia reports is that they highlight housing affordability issues and serve as starting point for a dialogue between developers, planners, economists, banks and government that urgently needs to happen.
Hall agrees there are planning and growth management challenges in the mix, but other complex issues also contribute to the problem. If a dialogue were to occur, Hall and others say the taboo subject of a capital gains tax on investment property should be on the agenda. So should government incentives for first-time buyers such as cheap interest and suspensory loans – especially for new houses.
And, if the Government is serious about finding ways to stimulate the economy, getting builders out there building – invigorating a supply chain that reaches all the way back into our forests – seems a good place to start.
February 01 2009 | The Market | 3 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 »
A million substandard homes are each up for a $22,000 bill to meet recommendations from a new national housing performance report.
This report goes hand in hand with the New Zealand Houses series I have been writing about and this is one of the major things factors about the older New Zealand House. Houses built before the 1970’s transitional period weren’t fitted with insulation when they were built.
The survey found one in four Kiwis say the poor quality of their home has made someone living in them sick, and indicated the severe cost of poorly performing homes. The survey of 3526 New Zealanders, conducted in October and November, is the culmination of a two-year $300,000 research project by the Business Council for Sustainable Development.
Council chief executive Peter Neilson said the country was paying $54 million to admit to hospital 50 people a day with respiratory illnesses, losing 180,000 worker days to illness, and spending $475 million a year more than it needed to on household power bills. Proposing a mandatory rating system to apply to all homes when they were sold or rented, the report estimates the cost of bringing homes up to minimum health and efficiency standards would be $20 million over a decade, or roughly $22,000 a household.
Two-thirds of New Zealand’s 1.6 million homes were built between 1900 and the 1970s, before insulation became mandatory in 1979, Mr Neilson said. Registered Master Builders Federation chief executive Warwick Quinn said the report wrapped up a widespread issue, but solutions were fragmented across disparate pockets of the community and industry and had little government support. “Having a consolidated approach would be very helpful,” he said.
Most homes built before 1979 would not meet current building code regulations, he said. “The [suggested] efficiency rating would help bring that to the surface.”
While there were 80,000 homes renovated every year, Mr Neilson said the odds were stacked against New Zealanders doing up their homes for their own good because the benefits were largely unknown.”Most people assume the cost is much more than it is and the benefits are much less,” he said.
The survey showed 69 per cent of people thought they could not afford to upgrade their home and half said they were too uninformed to do it. Mr Neilson said the residential real estate market did not v
alue “invisible” improvements like insulation and water efficiency, so house owners’ priorities lay with marketable benefits such as decorating, improving fixtures or adding a deck.
The estimated average $22,000 bill to make a home energy-efficient and warm was realistic, and might become more palatable if householders could see the long-term benefits as energy prices rose.
“There is a limited number of householders who are driven by eco-thoughts – pricing issues are a major motivator.”
The report was admirable but ignored the need to improve home-heating solutions to battle dampness, a greater health threat than cold, she said. Research showed the worst places for ill health caused by living conditions coincided with poor local populations who avoided using
electric heating because of the cost.
Source: Scoop.co.nz Stuff.co.nz
I believe this is a major issue that has now been bought up in a timely time. At a time when people pockets are being crimped this news from this survey is a real nail in the side. If you do own an older home in New Zealand look into putting insulation into your home or a DVS system or anything else instead of major flash renovations.
December 02 2008 | Uncategorized | No 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 »
One of the Reasons New Zealand is popular with people from overseas is our relatively small population and
our very much untouched landscaped. The North Island is more populated and the South is less populated. Although the South Island has the best landscape which has been made famous with the Lord of the Rings Movies been filmed in large amounts on the Southern Alps which is the backbone of the south island.
The land mass of New Zealand is Around 1600km in length and no wider than 300km, almost all the 167,000 sq.km which is slightly larger than the England which has a total land area of 130,410 sq.km
The population in 1996: 3,618,300
The population in 2001: 3,737,277
The population in 2006: 4,027,947
The Estimated Population in 2008: 4,280,000
The total population in New Zealand is approximately half the size of the population of New York, and justover a quarter of the population of London and England has a total population of 60,776,238 (July 2007). As you can see the population of New Zealand has a vast difference to these large populations especially in regards to the area we all live in. This helps New Zealand be a nice and relaxed place to live.
More than a quarter of New Zealands population live in the largest city, Auckland.
Main Cities:
Auckland
1,208,094
Hamilton
184,905
Napier-Hastings
118,404
New Plymouth
Wellington
49,500
360,624
Christchurch
360,765
Dunedin
220,997
Remaining Areas
1,085,613
November 27 2008 | Uncategorized | No Comments »
This is big news for the real estate market in New Zealand. Especially for agents, vendors and purchasers. This is the official statement released by allrealestate.co.nz.
“In New Zealand, the REA Group plans to end operations of its residential real estate website, allrealestate.co.nz, on 30 November 2008.
The company will continue to operate its successful commercial real estate website, realcommercial.co.nz, which is the market leader by unique browsers. (Nielsen//NetRatings)
We are grateful to our residential real estate customers for their support and we wish them the very best in the future.”
The reasons being closing the New Zealand operations were the tough competitive market in New Zealand from the likes of trademe.co.nz and realestate.co.nz and the challenges that allrealestate.co.nz faced. My view is that the REA is consolidating like many businesses are. The economic downturn is making it tough out there for everyone and my take is that the REA is scaling down its business to focus on areas
it’s doing well in.
It is reported that at the end of June 2008, 527 agents used the site and listed 41,000 properties.
The REA Group entered the New Zealand market in mid 2005, initially by adding a map of New Zealand to the realestate.com.au site. In September 2005 it launched with a unique URL: allrealestate.co.nz.
In June 2008, there were 230,000 unique visitors to allrealestate.co.nz, a similar sized audience as its nearest competitor, the Real Estate Institute backed realestate.co.nz.
What does this mean for Real Estate in New Zealand.
For the buyers: It means that more stock will end up been listed on less sites which means a more comprehensive database of properties for you to look though. This will save you both time and effort in your property searches.
For the vendors: Two main things – 1. Less places to market your property which means that your marketing budget can be less. 2. On the remaining websites left to market your property there will be an influx of approximately 230,000 unique visitors looking around.
For us as agent: This means we can offer a more comprehensive view when coining to marketing plans. When it comes to marketing on the internet the industry owned website of realestate.co.nz offers a great package for sellers for exposure.
November 14 2008 | Uncategorized | 5 Comments »
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Mortgagee Sales now account for 4% of all house sales. This is a disturbing statistics. It is horrifying to think that 1 in 25 houses selling on the market today are mortgagee sales. For statistics
