Archive for September, 2011

Borrowing Much Easier!

It was not long ago that home buyers had to save a 20% deposit before they were eligible for a mortgage from most banks. This was $40,000 for a $200,000 property. It was very difficult to save so much while paying rent and having to “feed the family.”

For some time now most banks have relaxed their criteria, and 90% and 95% loans are available.

With Welcome Home Loans (supported by Housing NZ), you might be able to borrow 100% of the purchase price up to $200,000 for your first home. If you want a house between $200,000 and $280,000 you will need a deposit of 15% of the amount above $200,000. For example if you are buying a house for $230,000, you will need a $4,500 deposit. The deposit can be gifted. $280,000 is the maximum locally, and the maximum combined income for 2 earners in a household is $85,000 pa before tax. 3 or more borrowers can team up to purchase a home, and in that case the maximum combined household income is $120,000. You may be able to use KiwiSaver first home deposit subsidy, or Kiwisaver first home withdrawal provision to assist you in to your first home.

We have a supply of “Owning A Home” booklets, with details of the above. Feel free to contact me/us for a booklet and/or to discuss your options. A $200,000 mortgage can cost as little as $265 per week to service currently.

Kind regards, Michael

How Big Is Our Patch?

It certainly puts matters in perspective when we realise that Feilding’s residential real estate market makes up about 0.3% of New Zealand’s on a dollar value basis. That is under one third of one per cent! Palmerston North weighs in at a hefty 1.5% approximately, and the entire Manawatu/Wanganui Region sits at around 2.8%.

All of the following regions: Northland, Hawkes Bay, Taranaki, Central Otago, Otago and Southland have a market share by value of less than Manawatu/Wanganui.
Nelson/Marlborough has around 3.3%, Canterbury/Westland has 11%, Waikato/Bay of Plenty and Wellington Region each have around 12%, and the Auckland Region totally dominates at around 49%.

This is why we should be careful not to take too much notice of national news stories about the residential real estate market. They are likely to be stories about the Auckland Region which makes up half of NZ by value. Even stories about Palmerston North may not be relevant to Feilding, although our market is generally considered to be part of the total Manawatu market including Palmerston North and Feilding.

Sales volume in Feilding was down a bit last month after 2 greatly improved months. This is partly because of the shortage of property listed for sale currently, making it a good time to sell for genuine Sellers.

Kind regards, Michael

Character Home Terms:

Finial – Decorative capping or turned post added to the apex of the roof gable. Originally used to protect a home from witches (clearly don’t work from my experience!)

Rusticated Board – A weatherboard that, with a curved shape cut out of the top and bottom, was able to lap the board below, yet lay flat against the wall studs. An imitation of coursed stonework.

Pilaster – A column, or imitation column, attached to a wall. It is generally half the thickness of the column it is matching.

Matchlining – Boarding on internal walls which is usually tongue and grooved.

Frieze – A rail or decoration marking the upper part of a wall just below the cornice. The frieze is usually of wallpaper.

Bay window – A square or polygonal shaped window that projects beyond a wall, and is supported on the ground.

Bow window – Similar to a bay, but semi circular or segmented in plan.

What to do prior to sale?

I have often seen Vendors spending tens of thousands of dollars preparing their property for sale, and the outcome has been that the money was wasted. I have also seen many situations where the eventual sale price was discounted substantially because the presentation was poor. Often a few hundred dollars and a few weekends work would have made a huge positive difference to the sale price.

I offer a free service whereby I will give you a presentation report prior to you deciding what jobs to do and what jobs to leave to the next owner. Use my 33 years experience to avoid a costly mistake.

Briefly, any small and inexpensive jobs that lift the presentation are usually worth doing. First impressions are important. Imagine the Buyers driving to your place. What will the see first? Your fence, letter box, front path, driveway front door and porch/verandah, front garden, and front paintwork. Often a quick paint of the letter box, window trim and front door can give a house a real lift. Weed the garden, mow the lawns, plant some colourful flowers, give the house a washdown, paint the garage door. This will have cost a few hundred dollars only, and a small amount of your time. Employ someone if you need to.

Our Company offers up to 6 hours free presentation work for your section or house, if you list exclusively with us.

Inside, cleanliness and reasonable tidiness are important. Get rid of mould and grease, clean the oven, mop the floor, vacuum regularly. De-cluttering is required for most of us. Often a lick of paint in the kithen and bathroom will freshen up those important rooms.

Generally, it is not economic to commence major projects, particularly in this market. Leave the new extension, garage, and full internal upgrade for the new owners. You will be lucky to recoup 2/3 of your investment. My advice is different if you intend remaining in your property for some years. In those cases, you will get years of enjoyment and amenity from those improvements.

Don’t do them for sale purposes only. Don’t forget, just give me a call. I am happy to help.

Kind regards, Michael

 

Which Season is Best?

Every year is different, and every month is different, but if we look at averages over the last 8 years, a trend emerges in terms of number of sales each season in Feilding.

The main thing to take from the survey is that Feilding’s residential real estate market is not seasonal.

The season with the lowest number of sales over 8 years had only 13.6% less than the season with the highest number of sales.

For the record, the order is Spring, Autumn, Winter and Summer.

There is only 10% between the top 3 seasons.

Winter is much busier on average than most people think, and most people are surprised that Winter has more sales than Summer.

The rankings per month are all over the place, but November, February, September, August and March are the top 5, with January bringing up the rear.

Some locations such as beach and lake resorts do have seasonal markets, but not Feilding. Any time of year is much the same, and in fact now is a good time to list because there is a shortage of properties on the market for sale.

Kind regards,

Michael