Despite the fact that property is likely to be the biggest purchase most people will make, the impact of the rise in GST will have little affect on home buyers. That’s because there is usually no GST payable on residential property and since buyers don’t usually pay the agent commission, they are only likely to see a slight increase in legal fees and any specialist reports on the property that they commission.
Sellers will have an added expense with GST payable on agent’s commissions, but looking at the big picture it’s not really a significant amount. Remember too the reduction in personal tax is likely to make many home owners better off.
October 02 2010 | Market opinion | No Comments »
The 32 reported house sales in Gisborne for May continue the trend of low sales volumes for 2010. While agents, banks, mortgage brokers, removal companies and solicitors plus a host of associated business would dearly love the return to the higher levels of sales activity that was seen in previous years the fact remains; this is our current reality and we have to get used to it.
Despite the gloom it’s important to remember that houses are still selling, buyers are still buying and life is still going on. There will always be genuine reasons why people need to sell. The most common are the 3D’s : death, divorce and da bank. And people need to upsize, downsize, or transfer out of town. And there are people still looking for investment property too. There will always be opportunities for buyers and sellers to make lifestyle or wealth gains. You just need to keep an eye on the bigger picture, instead of retrenching, reacting negatively and shrinking to the current reality. Remember, fortune favours the bold!
June 22 2010 | Market opinion | No Comments »
We all know that auctions work for sellers because it gets their property sold. But when the market is flat like it is now, auction also provide buyers with an opportunity to secure property at good market prices. That’s because sellers who choose to go to auction are usually more motivated to sell and are therefore keener to negotiate in order to get their property sold. From a buyer’s point of view, there’s nothing more frustrating than trying to deal with sellers who are ahead of the market. But auctions work for both parties as they provide a greater degree of certainty for everyone, that is, a sale. And at the end of the day that’s what we all want; to know that you have either sold or bought. Watch this week’s video for more reasons why you should buy at auction. And for sellers watch this video for more reasons why you should consider selling by auction in this market.
June 12 2010 | Market opinion | No Comments »
You just got the phone call from the real estate agent letting you know that your offer on the house you have your heart set on has been accepted. You paid the GV (Government Valuation, or RV – Rating Valuation). Did you:
A Pay too much?
B Pay a fair price?
C Got it for a steal?
So, what is the correct answer?
Actually, it could be any of the above, depending on many factors. Firstly, how recent was the RV? If it was older than 12 months, the likelihood of it being relevant slips away quickly. Markets change. Banks recognise this and when they require a Registered Valuation for security purposes they usually want it be not more than 3 months old.
The condition of the property has a huge impact on its market value. Improvements to property are only captured in the Rating Valuations if they require resource consents or building consents. Rating Valuations don’t necessarily capture landscape gardening (you could easily spend $60,000 plus here). Nor do they take into account new kitchens, bathrooms, interior and exterior painting, or new carpets.You could easily improve a property by spending over $100,000 and it still wouldn’t be reflected in the Rating Valuation.
Then there is the motivation of the seller. If they needed a sale and were keen to take the money, then maybe they settled for a lower end of the fair market range. Or maybe they weren’t in a hurry to sell and you had to pay what they wanted in order to get it (usually a dream price).
Really, it’s hard to say if the GV was an accurate market value or not. But most buyers know this. They know what is fair market value. They know what is over priced and they know what’s a steal. And they know (deep down) that GV doesn’t usually have a lot to do with market value.
It’s not about GV. It’s all about the competition. Sellers have competition and so do buyers. When a house is for sale, it is never sold in isolation. It is in competition with other houses for sale. And buyers only pay what they have to pay in order to get the property and no more (usually more than the other buyer) .
That’s how the market works.
Mmmmmmm. now that’s food for thought …
June 06 2010 | Market opinion | No Comments »
Ryman Healthcare’s new retirement village will have a huge impact on the local housing market. Not only will the $60m project inject welcome cash into the local economy, but it will also create a flow on effect in the housing sector as many folk move houses.
Unlike a new factory or processing plant, Ryman’s end product creates new housing opportunities which means all those people who will buy a retirement villa at Ryman’s centre will end up selling their existing homes and so a chain reaction begins.
This will have an impact on future market prices. Gisborne’s population is static and has been so for many years. So if there is not an influx of new people coming to Gisborne, there will be a strong supply of houses for sale in Gisborne but not an increase in demand. The law of economics of how market prices are driven in part by the supply and demand, will come into play and we may see a further easing of prices. But if on the other hand the projected population growth for the region kicks in, then Ryman’s new centre may be the answer for a projected shortfall in housing stock. It will be interesting to see it all unfolds.
Either way Ryman’s new retirement village is a welcome project for the region.
April 01 2010 | regional | 2 Comments »
a leaky home - a nightmare
When making the decision about purchasing the right home, it is not unreasonable to be concerned if the property is a leaky home or not. In Gisborne the chances of it being a leaky home are low. The Weathertightness Homes Reolution Service (WHRS) has only had one of the 4,000 property cases from Gisborne. No doubt there have been more cases of new homes requiring the builder to go back and fix the odd problem, but the leaky homes saga goes way beyond that. Back in the 1990′s some methods of constructing residential homes changed. Problems did not start appearing until many years later. Now they are all too apparent. Watch the video leaky homes in Gisborne about how Gisborne has been affected by leaky homes. Also visit the website houses for sale in Gisborne for more articles about leaky homes in Gisborne.
March 27 2010 | regional | No Comments »
After a challenging year in 2009, thinking that we were out the recession only to find that sales volumes dipped in the third quarter, we finished on a high note.December sales activity in the Gisborne residential property market finished above the anticipated level. While October posted 42 sales and November only 34, December bounced back with 48 reported houses being sold in Gisborne. That pushed the 4th quarter up to a total of 124 sales, better than the 115 of the previous quarter and coming in behind the 2009 2nd quarter of 157 sales. Median house prices for the quarter rose to $261,000. So, it looks like the market is not dropping but is in fact showing a slight increase in values. Next report: year end sales – how does it compare with previos years? Have market values risen?
four year sales comparisons - medians and sales volume
January 27 2010 | regional | No Comments »
It looks like Gisborne is one of the best places in New Zealand to buy real estate property in right now. continue reading »
November 10 2009 | regional | No Comments »
The number of confirmed sales in Gisborne city for the September quarter was down on the June quarter by 26%. continue reading »
October 21 2009 | regional | No Comments »
It has been a busy week for the Walker real estate sales team in Gisborne as several houses that were for sale have now sold. The lifestyle property at 31 Somerton Road sold after two interested buyers placed offers on the property. It sold close to the asking price of $519,000. An investment property 35 Oak Street sold to an investor. The property had two houses for sale on one title and sold for close to the asking price of $315,000. Another house for sale just out of Gisborne City, 212 Valley Road sold for close to the asking price of $415,000. It’s great to see buyers taking advantage of the low interest rates and getting some great homes for good prices.
October 10 2009 | company | No Comments »