Tag Archives: TC3

Insurance rebuilds sell well

SOLD: 31 Queenspark Drive, an insurance rebuild, went under offer in its first week on the market for $475,000.

SOLD: 31 Queenspark Drive, an insurance rebuild, went under offer in its first week on the market for $475,000.

Demand strong
This Thursday will see the settlement of our third insurance replacement/new build home that clients have asked us to sell. The demand for these new homes has been strong with two of the three selling prior to marketing, and the third after just one week on the market. The appeal of these properties is being recognised by locals, and when considering them amongst their peers, buyers need little convincing that they are a wise choice. Brand new always has appeal, not to mention future-proofed foundation systems, quality insulation factors and the like.

Values higher than their peers
Our experience is that purchasers are happy to pay more for these homes on the basis of the perceived value for money and the quality and peace of mind of a seismically-proofed home is not hard to justify. Besides these homes are still considerably more affordable than their counterparts in new subdivisions where land and building costs are looking to be recouped by a speculator, building company or owner.

Locals like to live local
These homes have appeal for locals as they like to live within the community that they are familiar with and these areas often provide the amenities and services needed nearby. Besides older communities and suburbs have soul and it’s nice to have that assurance that you will fit into a community, especially so if you already know the locals.

Rebuilding a good choice
Not only for the reasons above, but I often find myself encouraging clients to consider rebuilding when tossing up their insurance options. With so many rebuilds emerging on the horizon and new homes replacing just about every home that is demolished, the vibe is very positive. In fact I would say this is one of the biggest confidence boosters for the eastern suburbs – a very clear message that says “there is life after such a devastating event” – so good on those who have made the choice to rebuild. You won’t regret it and you will stand to get rewarded handsomely when you do choose to sell which has already been proven by the sales to date.

Have a good week and continue to enjoy the upsides of our post-quake rebuild!

The TC3 home solution

Over the weekend I made a point of checking out ‘The Cantabrian’ – a concept home with foundations specifically engineered to perform during seismic activity. Definitely appealing and well worth checking out! It’s on display at 81 Cranford Street, 12 noon – 2.00pm Monday through to Saturday.

Via Rebuild Christchurch:

In the same vein, last week I had the honour of selling my first post-quake rebuild in North New Brighton – may it be the first of many more!

Continue reading

Good press for TC3

Land Redcliffs TC3 Christchurch Real Estate

PROPERTY BONANZA: This TC3 section on Beachville Rd in Redcliffs has sold for nearly $1 million. Photo: Kirk Hargreaves/Fairfax

Last Friday’s front page article by Liz MacDonald brought some timely affirmation of the comeback that TC3 property is experiencing in this current momentous marketplace. Clearly both the buying public and professionals are seeing the bigger picture and understanding that with the right information and procedures in place that there is “life after” for TC3 property. Liz’s comment on my Beach Road listing clearly reflected the almost frenzied response this property experienced – long may this continue. See also: ‘TC3 land prices holding – valuer’, Radio New Zealand.

It’s also a real coup by Westpac to secure such pertinent and relevant geotechnical information – having hard facts on these properties will unquestionably provide them with an edge in the competitive banking market.

Continue reading

August stats show steady growth

August 2013 StatsThe stats from REINZ present a picture of an active market here in Christchurch. The median price of $374,000 is up a modest 2.6% on this time last year, although the institute’s house price index (which adjusts for different types of homes selling) found city prices rose 6.1% in a year. Canterbury homes are also among the fastest selling with an average list-to-sell period of 28 days, with the national average at 34.

It’s apparent that this strengthening market is being primarily driven by investors and first-home buyers competing for similar types of properties. Investors appear to be keen to capitalise on the frenzy in the rental market, whilst first-home buyers are keen to secure a property quickly before the Reserve Bank’s LVR restrictions come into force.

It has been my own experience that these relatively modest properties which appeal to both groups are being snapped up very quickly. One of my recent listings at 202 Beach Road, your classic three-bedroom, one bathroom, Summerhill stone home sold above asking price after only four days on the market – and it was TC3.

Links:
Liz McDonald (The Press): ‘Scramble even for ‘very untidy’ homes
REINZ: Sales and prices rising in August real estate market
NZ Herald: Sales growth slows, property prices up $5,000
David Hargreaves (Interest.co.nz): House market ‘will cool off’, say Westpac economists
BNZ-REINZ Residential Market Survey: No good news for buyers

As Is, Where Is: Why The Demand?

Bower

Today here in the Griff camp our 28th “as is” sale has been confirmed and the demand for these homes continues. So why the demand and who is buying these damaged uninsured homes? Some would say it doesn’t make any sense that people would want them, while others just can’t get enough!

The bottom line is they are cheap and the average Kiwi struggles to let a bargain go unnoticed. The following should provide a reasonable overview of why this current demand is continuing.

Affordability: Apart from the obvious as stated above, the affordability provides a double assurance and protection for the future when rents firm up. It has been so rare in Christchurch in the past to get cash positive investment properties.

Cash cows: with acquisition costs low and rent returns high the maths is simple – more money in with less money out (costs) leaves you with profit!

Rental demand high: Never have I seen such high demand for rentals in Christchurch and it looks like it will continue in the short to medium term yet (5-10yrs).

Returns/yields up: The same as the above – low supply and high demand will always drive up rents.

Short term rentals: Currently insurance companies are happy to pay motel rates for clients while their home is being remediated.

Fully furnished: Premium (motel rates of $175-$220 per night) are being paid for fully furnished accommodation, however a word of caution, the insurance accommodation benefits that clients have are not open ended and while these budgets cover short term repairs with ease it is likely that the budgets will remain the same or similar for longer repair periods, but time will tell.

Every man and his dog in town: With so many tradies and professionals in town, they all need somewhere to lay their weary heads at night. I actually think a lot will look to stay on once the rebuild is completed (not that that will happen over night!)

Christchurch is the place to be: even after the rebuild, while probably not cheap it will unquestionably be a great and modern city to live in.

A captive market: currently sitting at 270+ our current e-database for “as is” specific purchasers continue to say “keep ’em coming”!

Credible property info: Insisting on engineer’s reports often wins the day and creates confidence for purchasers to proceed well informed.

Mum and Dad buying for the kids: A great way to affordably provide a leg-up for the kids – one home sold last week was a delightful wee honeymooner’s nest!

I could go on, but how much convincing does one need? The odds are stacked well in favour of the purchaser and while they are not for the risk averse they are proving popular for the property savvy, investors and young entrepreneurs.

Whether you have a damaged home to sell or looking to launch out into the investment market and could do with some practical advice, don’t hesitate to make contact, we are here to help.

Spirited Bidding on TC3

Thursday morning saw 57 Queenspark Drive sell under the hammer after good interest and a couple of parties rigorously competing in the auction rooms. Personally I think this a real vote of confidence for Parklands and clearly displays there is “life after” for TC3 properties – a very pleasing result all around. Our owners, who are most impressed with the result are now one sold step further ahead toward their move to Central Otago!

With both pre-approved mortgage finance and insurance in place for the buyer this also confirms the willingness of banks and insurance companies to back these properties.

Two of my colleagues from the Parklands team and I all had clients interested in securing this property, the point being that as a team we know the process and necessary requirements in order to achieve a successful result for both sellers and buyers of TC3 properties.

So if you have any questions about which way forward for your TC 3 property do give us a call.

More Good News for TC3 Homeowners

Firth Industries national technical manager John Hambling demonstrates the new foundation system.
Photo: Kirk Hargreaves/The Press

Further to last week’s post on the way forward for TC3 property owners, Liz McDonald in The Weekend Press writes:

House foundations poured on top of the ground that can be re-leveled with the turn of a screw are the newest earthquake fix to appear in Christchurch.

The first foundation to use the new system – intended for rebuilds and repairs on technical category 3 (TC3) sites – has been poured in the suburb of Hoon Hay.

Jon Hambling, national technical manager for Firth Industries, said the system would suit 90 per cent of homes, could be built in a week, and meant a home could be re-leveled in just a few hours if quakes shifted the land.

Instead of piles it involves two poured reinforced concrete slabs, separated by about 25 individual raft jacks which can be adjusted by pulling back carpets. It can be used for both repairs and rebuilds.

I think it is great to see such fresh and creative thinking coming to the fore providing solutions for the future. It would be rather ironic, looking forward, if you were hosting a dinner party following an earthquake – one would be busy texting the guests notifying them that the party will be delayed by an hour while you are waiting for the house to be re-leveled! It all seems too easy really after what most of us have been through over the last two and half years of not living on the level.

Highest research into TC3
One thing about TC3 land is that it indisputably has had the most research done on it over the last two years and probably has more readily available info than any other type of land in the city. In fact I know of a purchaser who purchased a TC3 section for that reason. While he certainly didn’t pay a premium for the site it does make a lot of sense.

I like Gerry Brownlee’s comment, “TC3 is not the bogey some people were making it out to be, dealing with TC3 is not a terminal problem for anyone.” I guess we will be watching this space Gerry!

 

And more good news…
My last week’s auction was on TC3 land and the property sold under the hammer; so that goes to prove that both the buying public and lending institutions have confidence to progress such properties. What’s more is that the property did not have land damage and all the dwelling’s quake repairs had been completed. This is how it should be – normality restored for home and family!

On that positive note, enjoy your week and I trust you too are finding more normality as we move into the “rebuild” phase.

PS – Don’t forget to check out this property at 335 Estuary Road, one of my first “as is where is” sales for the year.

The Way Forward with TC3

While much is being said about TC3 land, the reality is that there is a way forward. Yes, TC3 properties can be sold, and are being sold. Our in-house statistics clearly reinforce this with 39% of our 79 sales between October and December falling into the TC3 category. As I have indicated in the past, by having the right information and a good understanding of just what checks and procedures banks and insurance companies require, the process of securing a mortgage and obtaining insurance can be successfully completed in most instances. Obviously each situation is different and if the perceived risk is high, it is understandable that a bank may be extra cautious or require higher equity levels before lending. I think the other reassuring factor with selling property here in the east is that the local professionals involved with processing these types of property transactions are familiar with the specific requirements to get the sale across the line. I know our own sales team here at the Parklands office have a wealth of experience and we often share experiences and insights that we have picked up along the way, not to forget that a number of us actually own and live on TC3 land.

The bottom line is that the stats clearly prove that there is a way forward and the percentage for these sales is steadily on the increase.


Just a brief reminder

This Thursday sees the auction of 3 Ascot Avenue – a funky 4 bedroom home/townhouse on a smaller section. The final open home is this Wednesday at 3.30pm.

Selling a Damaged Uninsured Home – Part 2

7 Stoneleigh Green will be going to auction next week on an uninsured “as is, where is” basis.

Moving on from last week’s comment and progressing selling homes “as is”, means the next step is to get frank with your insurer and get the options on the table.
Once you have the options on the table it is then a case of deciding which one is in your best interest to take.

It is important to have all your EQC claims and apportionment settled. While this can happen concurrently while you are negotiating your final settlement with your insurer, your insurer will not settle in full until your EQC claims have been finalized and apportionment complete. This is a story on its own so don’t hesitate to contact me as I can often pass on a few tips from client experiences that may be helpful here.

In the settlement it is important to negotiate with your insurer to retain the ownership of the dwelling in its current state. This however, is not always straightforward and often insurance companies have their own individual requirements, so once again it is important to have all the facts in front of you.

The next step is to take legal advice to ensure all the T’s are crossed and the I’s dotted. Inform your solicitor of the option you have decided on so that they can advise you accordingly. There is a lot at stake here so it is best to have the professionals involved.

Obtaining an engineer’s report is also important for two reasons. Firstly, to clearly establish the home’s structural integrity; secondly to identify the baseline of the actual
damage. This ensures that when selling, the facts are clearly represented to the public and the purchaser is clear on what they are buying.

Having a realistic expectation of the sale price is essential as the feedback is often varied. That is the reason that I recommend selling by auction as it finds the true level of the market in a competitive arena.

Finally, we have a marketing and contractual template for these properties that works successfully and in every instance so far the owner has come off better than if selling their home undamaged. I guess with a 100% strike rate we must be doing something right!

Once again I could go on, but the bottom line is that this is a viable option for many people. It also brings immediate resolution unlike the uncertainty often given by insurers.

Selling a Damaged Uninsured Home – Part 1

71 Broadhaven Avenue is the latest of a number of uninsured properties I have successfully sold at auction.

Contrary to public opinion, yes you can sell an uninsured damaged home “as is where is” and as surprising as it may seem, there is considerable demand for them. I am frequently being asked to sell these homes and regularly people are making contact for advice on the best way to go about the process.

Perhaps before I get underway, I should address the “moral” side of the issue. Some insurers are supposedly taking the “moral high ground”, indicating that they do not want to see damaged homes left in the community, taking the view that any home that is deemed uneconomic to reinstate should be demolished. While I can understand their stance in theory, in reality it appears to have a negative impact, with empty sections becoming overgrown with weeds, looking uncared for and creating a “ghost town” image in the neighbourhood – not to mention the driving up of rental prices due to perfectly inhabitable homes (in most instances) being demolished.

In general, many of these homes are on TC3 land, and frankly at the moment without a house on these sites there is absolutely no demand for this land. Combine this with 20,000 new sections of TC1 or TC2 categories coming onto the market over the next few years, you do not need to be a rocket scientist to understand that it will be some time yet before there is any demand for them. Most people are simply putting them in the too hard basket.

Don’t get me wrong, I do wish that everybody (in an ideal world) would rebuild their homes so that we all end up with a fully reinstated and stronger community, but in many cases this is not a reality. The elderly often simply don’t have age on their side to wait 3-5 years for their home to be rebuilt and obviously some people clearly want to move out of the area. As is always the case, everybody’s situation is unique.  One must ask the question of what makes a house illegal or condemnable, and why has “level” become gospel almost overnight especially when so many Christchurch homes have not been on the level since the 19th century?

While we could argue the point all day, the bottom line is that people want to move forward and in a lot of these instances selling “as is” has been a viable option for them. The sense of relief that some people have experienced is really quite remarkable, with some almost feeling like they have been let out of jail after more than two years of battling EQC and their insurers.

As you can see there is a lot to say about this subject so for the sake of time I will continue next week, so watch this space…

On a less intense note, the festive season is upon us, December is all but here, the Christmas decorations and lights are fast appearing and the seasonal celebrations begin.

I don’t know about you, but I love Christmas – the fun, the warmer weather, barbecues etc. So I say bring it on and enjoy!