Blog

Many first time investors can over research or over think their options.  Some investors do so much research that they in fact scare themselves out of property investment.

Often we can see all the reasons why property investment makes sense yet one article as to why shares out-perform property, or a bad tenancy story can shelve the property investment for months, sometimes years and on occasions, forever.

Always undertake research and ensure due diligence when making a decision.  The fact is that to the inexperienced too much research can confuse and lead to procrastination.

• Buy your first investment property local – you know the local market
• Understand negative gearing
• Understand taxation benefits
• Buy peace of mind
• Make sure you are buying reasonable value property

Welcome to 2012 – I hope everybody had a wonderful Christmas and New Year and  looking forward to a great 2012.

If you are thinking of selling or buying and looking for a market leader to assist you contact Lochore’s Real Estate Ltd – 09 481 0639

Buy yourself a nest egg for Christmas.  There’s never a better time to get into the property market.

The Auckland property valuations are causing a real stir in the market place.  These valuations are based on a combination of house size, land area and a 3 second drive past.  Yes, it’s good news for most North Shore ratepayers, but for those wishing to sell our advice is to get a valuation done by a registered valuer.

Most properties are now up to 10% to 15% undervalued by the new valuations.

Prices are being driven up by a shortage of properties to buy and rent.  There is such a shortage of rental properties that rents are up more than 10% on last year and they are still increasing.  In my experience, when rental prices go up you know property prices will increase 3 to 6 months later.

Prices are also under pressure because of the chronic shortage of new properties across New Zealand.

At Lochore’s our rental department is receiving 5 or 6 enquiries a day from returning expats and new immigrants from the UK and Europe.  They want to buy, but are looking to rent in the short to medium term.  There are just not enough rental properties or properties to buy to satisfy demand.

Lower priced houses are particularly sought after by the phenomenal increase in first time home buyers trying to get into the market.  With interest rates at historical lows and appealing fixed term mortgage offers from the banks, it has never been a better time to enter the housing market.  Given the problems in Europe, interest rates are likely to remain low for the next 2-3 years, so buying a home is truly an affordable option again.

There is a two tier market here.  Though things are on the up for the lower to mid-size end of the housing market, the upper end is on the way down.  Many people caught by the recession are trying to reduce debt by downsizing their houses, causing a flood of higher priced properties on the market.

So, if you are looking to buy your first property, find yourself an expensive property or purchase an investment property now is the time to buy, because in 3 to 4 months time today’s prices will be a thing of the past.

If you are looking to sell, start thinking about listing your property in December to be in a good position to take advantage of the upswing in the New Year.

It is going to be a very busy January.

All in all, things are looking up for the housing market.

Have A Very Merry Christmas

There appears to be two separate real estate markets operating at the moment, driven by several small but significant factors.

In the low to mid-priced market there has been an upsurge in prices; while at the top end an over-supply is pushing prices down.

I believe that the rental market is the barometer of the real estate market.  When you see rents going up, you can count on house prices following three to six months later.  Conversely when there is a glut of rental houses, prices go down.

We are seeing significant numbers of Kiwis returning to NZ.  Some people having spent five to ten years in the UK and Europe have become sufficiently unsettled by financial and job uncertainties to retun home – often now with families.  They have added to an already high number of people seeking rentals.    Also, tenants are not vacating homes seasonally as they used to do; fearing they may face higher rents.  This rental competition leads to more people considering purchasing their homes, taking advantage of the low interest rates which are as good as any in the last 40 years.  With little stock out there though, the choice is narrow.

A lot of small investors are coming back into the market, attracted by the high rents and low interest rates.  So, many little influences going on – but it’s all postiive for vendors!

Conversely, there seems to be a glut developing at the high-end.  People are downsizing, not upsizing but there’s no denying, there’s an underlying shortage of houses for sale, and banks are not going to be providing financial assistance to developers any time soon.

To those weighing up property investment versus share investment or savings schemes, I suggest you look at the record of property prices over the years.  In my 48 years in real estate I have seen homes sold for the pound equivalent of $7,000-$8,000 now selling for $400,000.  Come forward another 20 years and homes that sold for $50,000 are also selling for $400,000.  Even something bought 20 years ago for $100,000 is fetching $400,000.

Clearly buying a second property for the long term (that is for 20-30 years), is your only real guarantee of a retirement income.

So, make it a priority to reduce or quit your mortgage, invest in a retirement income through a second property, shun the volatile sharemarket and be very wary of savings schemes and retirement insurance where everybody ‘clips the ticket’ before you get your share.  Where is the return in that?

I am holding a FREE Investpak Seminar on Wednesday 30th November 2011 @ 7.00pm at 100 Mokoia Road, Birkenhead, Auckland.  I have over 45 years experience in the real estate industry and can offer some very helpful advice and suggestions on how to create your property portfolio. 

Property prices and rents are increasing so now is the time to buy.

Please phone 09 481 0639 to book your seat.

If you are thinking of selling and want the best price – first impressions count. 

• Put plants around the boundaries of your front yard to ‘frame’ your home
• Make sure your driveway is presentable
• Draw attention to your ‘entrance’ or front door area
• Make sure your letterbox is in good condition

Select your selling agent carefully, look for someone who you feel comfortable with and with whom you can conduct honest, open discussions.

Don’t choose your agent based solely on commission.

Make sure your home is tidy and all unfinished projects are complete.

Research the market and set yourself a realistic sale price.

Quality market plans can improve your sale price.

Whether you are purchasing your first home or adding to a substantial property portfolio it is important that you understand the current market conditions and where it is heading.

Buyers and sellers need to have an understanding of where the market is and where it is likely to go.

These days information on property, interest rates and market conditions is abundant.  Knowing what to look for can be the key.

• Rental returns – when rents are up it generally means that supply of rental property isn’t meeting demand.  A good sign for property investors.
• The number of properties on the market – more properties on the market means a slower sale rate, more opportunity to negotiate and more choice for buyers.
• Frenzied competition – means multi offers and prices going up.
• Days on the market – most agents can tell you how many days on the market is average for their area.
• Sign counts – drive through an area (widespread) and count ratio of ‘For Sale’ signs to ‘Sold’ signs. 

Need help buying your first home & realising your dreams?

FIRST HOME BUYERS SEMINAR – Wednesday 19th October 7.00pm  100 Mokoia Road, Birkenhead

Let our experts guide you through the process;

• What to look for when buying
• Understanding the current market
• Where to go for finance
• How much deposit will you need
• How the negotiation process works

PLUS – Ways to make it fun buying your first home

Call Maria on 09 481 0639 to make a booking – hurry, seats are filling fast!