Archive for April, 2012

Real Estate Career

I thoroughly enjoy my job as a Real Estate Agent. Mind you, it is early days, having only started in the property industry in 1977.

Every day is different, every Client and Customer is different and every property is different.

In most cases we produce win win results, where both parties are happy, and are able to move on to the next stage in their life. The thrill for first home buyers is wonderful to be part of.

Agents and Salespeople need to be self motivated and self starters, but the Company provides guidance and training. Product knowledge can be learnt, and in our offices at least, there is always someone willing to help.

Commission is more difficult to budget around than a salary, and income takes a while to gather momentum, but the rewards are good for good operators. You have to have confidence in your own ability. While we do work weekends and evenings, these are by appointment that we organise, and we have flexibility around working hours.

Our Feilding office has a rare vacancy for a Sales Consultant. If you are at all interested, whether experienced or not, have an initial confidential talk to Ken Watson, Tania Osborne, John Cox or myself. We are a strong team, that has fun.

Regards, Michael

 

March Still Strong – Best Start To A Year For 5 Years

The number of sales of houses in Feilding through all Real Estate Agents in March was almost as good as in February, which was the best month since late 2009. March volume was at a long time average number of transactions, and February was ahead of that.

The volume for the first 3 months of 2012 was ahead of the same months in 2008 – 2011. The years 2002 – 2007 were stronger than this year, and this year was exactly the same as in 2001.

The 3 month median sale price is $253,000, which is strong. I feel that it might settle a little lower than this. It compares to Palmerston North at $264,000 and New Zealand at $360,000. Feilding is usually around $110,000 below that of New Zealand and about $30,000 below that of Palmerston North.

Feilding continues to have a much higher median than Levin at $166,000 and Wanganui at $170,000.

Regards, Michael

 

Investors Trickling Back

Astute Investors are coming back into the residential investment market as rents are rising, and the prospect of further rent increases remains strong. Interest rates are attractively low, and values remain static.

Feilding investment returns are better than in most larger cities.

The Government’s changed depreciation allowances took Investors out of the market for a while, largely because of the uncertainty. Now that so many factors favour the Investor, we are seeing a return. First home buyers out number Investors at present, but the dynamics are changing.

Residential property is an investment that you remain in control of, and you can improve it. Over time there has always been capital gain. Over the last 40 years, values have doubled on average every 8 years.

We expect more Investors to take advantage of the good buying conditions this year.

Kind regards, Michael

 

Home Affordability As Good As In 2004!

The Massey University March 2012 Home Affordability index for the Manawatu Wanganui region is 71.27% against the All Districts national index of 100%. This puts us in 2nd place, following Southland on 54.5% as the most affordable region. Otago is 3rd at roughly the same as us (71.5%), and Auckland has just taken over from Central Otago Lakes District as the least affordable region, with 125.3%.

Affordability in Manawatu Wanganui improved 13.2% over the last year. Canterbury Westland was the only region to become less affordable over the year.

Nationally, affordability is about the same as in 2004. It was a lot less affordable between 2004 and now.

Affordability considers average weekly earnings, median residential dwelling prices and mortgage interest rates. House prices have been roughly static for some time, incomes, especially after tax incomes, have increased, and interest rates are at a long term low. The biggest threat to affordability in my opinion is increased interest rates. Fixed interest rates are available to give budget security however.

People will look back at 2012 as being a great time to buy a home or investment property in my opinion.

Kind regards, Michael