Archive for May, 2009
The number of people who think the time is right to buy a house continues to increase, even as expectations that prices will keep falling start to ease. The ASB housing confidence survey for the three months to April, published today, found 59 percent of respondents felt now was a good time to buy, up from 53 percent in the previous quarter. ASB chief economist Nick Tuffley said that during the past nine months those surveyed had become increasingly enamoured with the housing market.
The improved sentiment appears closely linked to the dramatic fall in interest rates in the past year, Mr Tuffley said. “Housing is a New Zealand example of ‘green shoots’. Caution over the outlook for prices and the uncertain economic environment has started to be overcome in recent months. “The early months of 2009 have seen positive views on purchasing translate into action: sales turnover lifted sharply through to April.” It was likely the housing market was turning the corner, but a robust recovery was another matter.
“Many long-run fundamentals for the housing market remain weak, in particular prices remain high relative to both incomes and rents despite recent price falls,” Mr Tuffley said. “The cautionary messages for prospective buyers are to be realistic about the extent of future capital gains and to make allowance for the fact that mortgage rates will be higher on average in the future than the rates currently available.”
In the latest survey, a net 45 percent of respondents expected house prices to fall in the next year, while a net 30 percent expected interest rates to fall. While expectations of lower house prices persisted in the latest quarter, month-to-month results showed a very pessimistic start to the quarter but a swing to less downbeat views by April, Mr Tuffley said. During the three month period, there were also increasing doubts that interest rates would fall further. By the end of April responses were evenly split between those expecting rates to rise or fall. “The shift is no doubt in response to the sharp jump in fixed rate mortgages at the end of March.”
A new record has been set for the number of people forced to give up properties to mortgagee sales. Mortgagee property sales have hit an all-time high, with 201 recorded for March, Terralink says. In the 15 years figures have been recorded, the previous highest was 191 last December, Terralink International managing director Mike Donald said. The March total was a 378 per cent increase on the 42 forced sales recorded in the same month last year. “The latest figures are a stark reminder of just how much the economic situation has worsened over the past 12 months for many New Zealanders,” Mr Donald said.
Almost half of the mortgagee sales were in Auckland – 99, up from 10 in March last year. The worst affected parts were Manukau and Central Auckland. Northland also showed a rise, with 19 sales in March compared with none in the same month last year. Mr Donald said more than half of the nationwide mortgagee sales were held by private owners, 60 per cent of whom owned more than one property. This could indicate there are investors who are over-extended. Investing in property is no longer a way to make quick and easy profit.” AdvertisementSmaller finance companies were driving fewer mortgagee sales than they were in February. “For the first time we are seeing that the recession is starting to impact on residential property owners, not just property investors,” Mr Donald said. Terralink derived its mortgagee sales data from legal registrations of actual mortgagee sales.
Get your ideas, business plan, financial forecast, contacts together because New Zealand has been ranked Number one for the ease of starting a business according to the World Bank ‘Doing Business 2009’ Report. If you have dreamed of starting your own business or had an itch to try out a new idea or product then you are in the right place. Not only does New Zealand rank number one in the ‘ease of starting’ a business but we are also ranked second (a close finish behind Singapore) for ease of ‘doing’ business. That gives New Zealand a competitive advantage over the other 181 countries surveyed.
The report was analyzed based on the level of difficulty to comply with 10 different sets of business regulations. New Zealand scored its top place for ease of compliance thanks to a new joint venture between the NZ Companies Office and Inland Revenue. These organizations have created a system where you can now apply for a GST and a Registration number at the same point of contact and the result is that starting your own business has never been easier.
If that’s not enough to convince you to take on that small business idea then perhaps these statistics might help: Read the rest of this entry »
The Loan Market New Zealand consumer website has been undergoing a major redesign over the past months and was released publicly overnight. The Loan Market New Zealand has 46 brokers faciltating 760 mil in lending per annum.
The upgraded Loan Market website now includes –
Updated branding to the new International Loan Market logo
Comprehensive menus for Home Loans, First Home Buyers, Investment Loans and Refinancing inclusive of more extensive content.
New user friendly mortgage calculators
Full Loan Market overview including How Brokers Work section
Prominent Contact Forms on most pages designed to collect real time consumer enquiry.
Enquiries are contacted within 2 business hours on a working day
At-a-glance interest rate table displayed on all pages
Real time interest rate guidelines on the front introduction page
E Newsletter subscription facility
Site search facility
Please visit www.loanmarket.co.nz
Tony Sheirlink of Ray White Browns Bay recently asked Stuart Matheson from the Loan Market North Shore to attend three open homes for properties he believed would have a lot of interest and the possibility of multiple offers. He was right!
The first property they received together, 5 offers on the Sunday night. Tony wanted them to have the confidence to offer their best offer, whether that was price or fewer conditions. The 2nd property, a deceased estate, and the 3rd an auction. Tony and Stuart are working together to have buyers in a position to bid on the day. Stuart secured three appointments and also gave the buyer confidence as to what their preapproval meant, resulting in them making their offer unconditional.
Tony said ‘the vendor of the Auction property was really pleased with the Team approach and the fact Stuart was there that to sell her property’ Tony added ‘that it was a bonus as Stuart was around also helped with the overall security of the property’.
Ray White Northern Offices had a heartwarming Auction recently, where the Public Trust instructed the Paihia/Kerikeri offices to conduct an auction of a deceased estate 3 bedroom house in Moerewa. Joe Hoey of the Paihia office conducted a number of open homes, where good attendances indicated a range of potential purchasers. The reserve was duly set and auctioneer Mark Saxton of Ray White Kaitaia called for opening bids.
When the bidding stalled the highest bidder called for the attention of the auctioneer and stated “This is not the price I want to pay for this property, out of respect to the Whanau of the deceased previous owner I would like to pay more”. The auctioneer asked him what price he would be prepared to pay, the bidder then offered a higher figure which reached the reserve and the property was knocked down to the rounded applause by all those in attendance.
The auction spectacular will again be an unprecedented event. For Auckland the line up will begin in the North Shore on Tuesday 23rd June at the Spencer on Byron (Takapuna), followed by West Auckland on Friday 26th June at the Lincoln Green (Henderson) and Commercial and all other zones on Wednesday 24th June at the Westin Hotel (Auckland Central).
Mark Te Whare (pictured) will be the leading Auctioneer in New Zealand he has had a distinguished career in auctioneering and real estate. During his career in Australia he was recognised among the top five auction performers for North Brisbane and won a number of newspaper marketing awards. He has called more than 3,000 residential, commercial and rural property auctions, ranging in value from $96,000 to $16 million. He was also Named Ray White Queensland New Auctioneer of the Year in 2002 and was a finalist in the Real Estate Institute of Queensland Auctioneer of the Year Award 2007 and 2008.
We have now become a sociable network. Increasingly networking has been taken online where people join together as friends or within a business network through two primary sites; Facebook and Twitter. To enable our Vendors, Buyers and Group Members to have a social representation we have placed an icon on everyone of our properties on the website. It is a share and save button which has the ability to transfer property to an account owner of any social website.
We are the first Real Estate company in New Zealand to offer this service to the broader online Real Estate community. Added to this is our Streetview and the ability to have 80 photos of each property. www.raywhite.co.nz and the 125 local websites are cutting edge of the New Zealand property industry. If you follow this link it will take you directly to one of our local website properties and we encourage you to run your mouse over the top of the share and save button at the left hand side of the screen.
We are pleased to report during the past month that several of our businesses throughout the Auckland and Manuwatu districts have recommitted for a further five years to the company. Bob Mountfort and Neil Baker’s offices throughout the Eastern Beaches area, including Howick, Botany Town Centre, Botany Junction, Pakuranga, Bucklands Beach and Whitford, continue to be members of Ray White for a further five years.
Stu Fleming from our Palmerston North office has been with our company 10 years and has also recommitted. His offices have expanded to take in Feilding and also the Hawkes Bay.
Don Ha’s business in Manukau City has also reconfirmed. It’s amazing to think Don started with our group five years ago and has had such an impact. His personal results and office achievements have been outstanding.
Another business that is an important part of our company is Motueka. This business is a market leader and consistently ranks in the upper levels of market share. David Ogilvie and his team have shown the confidence in Ray White to extend their tenure.
The unprecedented success of the first Ray White Auction Spectacular in March this year means the landmark series of trans-Tasman super auctions is here to stay. Numerous desirable properties went under the hammer in 25 locations across Australia and New Zealand in events that attracted enormous media attention and achieved extraordinary success in a difficult economic climate.
Over 700 properties were listed for sale and excellent clearance rates achieved across the board, with NZ’s auction generating over $49 million in sales. The event contributed to an outstanding March, during which Ray White generated record sales of $2.57 billion!
The Auction Spectacular brings together the strength of every arm of the Ray White Group, including Residential, Commercial, Rural, Property Management, Loan Market Group and Ray White Concierge.
Any vendors sitting back or adopting a ‘wait and see’ approach are strongly advised to take advantage of interest rates at a 45-year low and plummeting mortgage rates. Strong buying opportunities combined with the fact that selling and buying in the same market generally procures the same net result, make now the ideal time to upgrade or re-locate, with the added advantage of capital growth as the market strengthens.
The stunning success of the first Ray White Auction Spectacular also illustrates that property auctions continue to offer many advantages over private treaty sale. Whether selling a home or commercial property, the auction process has been proven to be the most likely method to attract genuine buyers.