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We have been predicting for the last two years that there will be a shortage of properties to sell, as the building industry has been decimated in recent years, and the demise of some finance companies has meant there has been no finance available for new stock.  Nor have the major banks been interested in financing new residential developments, despite being awash with money!

There comes a time when people start looking at the low returns from bank on deposits, and start considering investment properties as better security, also first home buyers are taking advantage of the lowest interest rates for 40 years!

So where is the market headed?  The huge shortage of rental accommodation has pushed rents up by 10 percent, and a continuing shortage is likely to push them up by another 10 percent in January-February 2012.

The other factor putting pressure on housing stocks is the Australian economy, which is predicted to shed 100,000 jobs between now and Christmas.  It stands to reason that Kiwi workers in Oz will be affected by the tough economic and employment climate, but how many?  It may be as high as 25,000 – and many of them will return home.

Our housing shortage will continue for the next two to three years and consequently house prices will rise substantially.

Economist, Tony Alexander, says that by the time dwelling consents in NZ get back to an issuance level comparable with our population growth, we’ll be 45,000 dwellings behind.  This will place extra upward pressure on prices, especially in Auckland which is showing the strongest price gains.

The most positive move for buyers, investors and sellers alike is that NZ is in a good position to survive the international crisis, and will be ‘first cab off the rank’ in terms of sustainable recovery.

The climate for investment has reached the point where public pressure has caused us to start-up our Investment Seminars again.

The demand is starting to grow.

Spring is often regarded as the ‘selling season.’

Gardens are brighter, the climate ideal and generally better prices are obtained.  If you are thinking of selling this Spring, now is the time for preparations.

It’s often wise to spruce up your property, finish any DIY projects and make sure your property is ready to attract the best possible price.

It is also advisable to begin the interview process so that you can select the agent that best suits your needs.

Another advantage of marketing your property in Spring is that buyers and sellers can be moved and established in their new premises, ready for Christmas.

If you are thinking of selling this Spring contact Lochores Real Estate Ltd to find out how you can obtain the best possible price.

Purchasing your first home is exciting as well as nerve wracking.  With this in mind it is important to keep the decision process simple yet still undertake your due diligence and research before your buy

Many first home buyers get caught up in the mix of nerves and excitement.  The entire process can overwhelm and as a result no decisions are made.

Tips for first home buyers -

• Undertake your research.  How much can you comfortably borrow?
• Identify what are essential features of your proposed new home and what can be negotiated.
• Your first home is a stepping stone.  Stay within your budget and remember that you can upgrade in years to come.
• Seek advice from family and experienced people.
• Be comfortable with your decision, there is no need to rush in.

The selection of the right agent to market your home is a priority when placing your property on the market.

Knowing what to look for in your agent is critical to making the sale of your property not only successful but easy.

1.  Don’t Appoint an Agent Based Upon Commission

Whilst it is hard to resist a bargain, don’t select your agent just because they are offering the lowest fees.  The truth is, often an agent that easily negotiates their fees will be in the habit of not negotiating correctly.  After all, if they are so keen to lower their own money, imagine how effective they will be with yours.

2.  The Best Agent May Not Quote the Highest Price

Don’t be fooled into selecting the agent solely because they gave you the most attractive price for your property.  The truth is, market conditions dictate your selling price, not your agent.

3.  Make Your Expectations Clear

Feedback, communication and openness are important ingredients for success.  Let your agent know exactly the type and frequency of communication that you expect. 

While property development can be very profitable if you know what you are doing, it can also carry high risks.

I have seen many inexperienced property developers take unnecessary risks and on occasions lose their hard earned savings.

The best advice is to start small, you will learn 80% of your lessons in your first 2 or 3 projects.  Renovations are a great start for aspiring developers but it is wise to know the market, don’t over capitalise and have in place the correct finance.

The main reasons property developers fail are:

1.  Paid too much for property

2.  Lack of accurate feasibility

3.  Take unnecessary risks

4.  Develop in the wrong stage of the property cycle

5.  Become emotionally attached to a business venture

Buying at the right price is the golden key.  Research the market, conduct a feasibility study and consult with area experts.  

Use the right real estate agent, one who has had experience, to help and get the right advice.

Thinking of selling and wondering whether you can obtain a fair price?

Regardless of the market place there are 3 vital things sellers should consider prior to placing their home on the market.

Selling your largest asset is a serious business.  However, regardless of the market conditions your ability to sell will be greatly enhanced by giving serious consideration to three key areas.

1.  Price - Price your home correctly and its three-quarters sold.  Few buyers purchase the first home they see.  Generally they look at numerous properties, study the market place and become knowledgeable about property values.  Pricing your home correctly is of vital importance.

2.  Presentation – Make sure your home is well presented.  Clean, open, bright without clutter always works well.  Make any repairs before placing your home on the market.

3.  Marketing – Select your agent well and have them design an effective marketing campaign in order to obtain the best price.

By following these three tips you can attract a buyer at the right price in a relatively timely manner.

Understanding and negotiating suitable terms of contract is an important step in the purchase process when buying property.

Buyers should be aware of any easements or covenants affecting the property and proposed settlement dates.

Ensure that the contract accurately reflects the purchaser and seller and defines the correct property.

Your solicitor or conveyancer should undertake thorough searches on your proposed purchase and make sure that you can ‘perform’ within the terms of the contract.

Your legal representative will be well versed with the contract and will understand all the clauses that affect your purchase.  You need to liaise with them in terms of the inclusions, your expectations and suitable settlement time.

Purchasing your first home can be both exciting and nerve-wracking.  Preparing your loan application correctly will eliminate some hurdles and assist in getting the ‘go-ahead’ from your lender.

I suggest that compiling your loan application thoroughly assists first home buyers during what can be an anxious period.

The start of the process is securing finance.  First home buyers should educate themselves as to lender’s products, which loan best suits their needs and what documentation and requirements a lender seeks.  The process is simple enough, yet a little preparation can increase the chances of success with a loan application.

Here are some tips to assist in your application -

INFORMATION – Detail complete information.

• Full employment history
• Current and previous addresses
• Current assets and liabilities
• Knowledge of incomings and outgoings (personal budget)

EMPLOYMENT DOCUMENTATION

• Records of salary and income
• Latest tax returns and assessments
• Three years of tax returns if self-employed
• Letter of earnings from your employer stating time of employment

OTHER DOCUMENTATION

• Proof of identity
• Copies of recent bank and credit card statements

Preparing your loan application will greater assist the financial institution and will demonstrate that you have thorough knowledge and understanding of your financial affairs.

Calculating how long it will take to save your 20 percent deposit for your first home need no longer be a guessing game.

Simply divide your proposed deposit amount by the amount you can realistically save each month to figure out how long it will take to hit your target.

Establish a detailed budget and determine what areas of your life you can alter or make sacrifice in order to increase you ability to save.

Space is a major contributor to a property’s value.  Using space to your advantage not only adds to your property’s appeal but also to its value.  Some simple tips to give your property that spacious feeling:

• Avoid heavy window coverings
• Plenty of natural light
• Un-clutter your home
• Install storage
• Multi-functional furniture (ie bed with storage underneath)
• Paint walls in light colours
• Use less furniture
• Take advantage of wall space and install shelving to give feeling of space
• Use of mirrors to exaggerate tha room

Plan your renovation, keep it simple and use clean lines, it always looks un-cluttered.