Leonie's blog

Investment property buys

The tax rule changes were widely expected to remove claimable depreciation on investment property, though expect to see some landlords reconsidering their portfolio with some looking to sell and fewer people buying investment properties***.  I have had several enquiries at the coal face since the budget, and as an experienced investor, I can guide you through buying or selling investment property.  With more investment properties coming onto the market, look for some very good buys.  Check out my website for criteria on purchasing an investment property or give me a call for advice. 

*** BNZ Weekly Overview

Leonie Snook, Top Wellington Real Estate Agent

Export-led recovery

Figures out yesterday show New Zealand’s first annual trade surplus in almost 8 years, at $161 million for the year to April.  The Treasury, on the back of government’s budget announcements, are forecasting economic growth to reach 3.2% for the year to March 2011 (up from -0.3% for the year to March 2010) and ranging around 3.0% for the 3 years following.  Unemployment is forecast to fall to 6.2% for March 2011 (down from 7.1% for March 2010), and is forecast at 5.5%, 5.1% and 4.6% for the three years following**.  This is all good news for the property market and house prices in the medium term, and is against a backdrop of housing shortage with demand expected to exceed supply.  Buyers are out there, and now is a great time to trade up!  If you or someone you know is thinking of moving, drop me an e-mail for a free and no obligation market opinion (leonie@leoniesnook.com).

* Mercer 2010 Quality of Living Survey
** The Treasury, March quarters

Wellington has just ranked 12th (out of 221 cities) in a global poll of the world’s most liveable cities.  While we are left scratching out heads about how Auckland ranked 4th :-), having two of our major cities in the top dozen in the world is great, and of course positive for migration and our property market.  I work all over this awesome city, so if you or anyone you know wants to stay in touch with property or needs high quality real estate advice, give me a call or pass my update on (Leonie 027 664 6063).

Leonie Snook, Top Wellington Real Estate Agent

Well, the weather is turning and flu season has started!  So take care of yourself... grab a cuppa and spend a couple of minutes catching up with this week's 'no fuss - no confusion' market round-up.

Quick News/Updates

• Interest rate picks - The Reserve Bank left the official cash rate (OCR) unchanged at 2.5%, but said they expect to begin removing their 'monetary stimulus' over coming months. Economists are torn on whether the rate rise will begin from June or July – but with a broad economic recovery taking shape (yay!) it’s a case of when and not if (boo)! For buyers and sellers, now is a great time to make your move and get in before interest rate increases.
• Free market sales – See my website for updated sales information. If you, a friend or a work mate want to know where your property sits in the market give me a call for a free and no-obligation market appraisal. I work all over Wellington…get top results for my clients…and give generous referral rewards :-) .
• Confidence climb - economy right behind! - Business confidence levels increased this month to +50*, suggesting good economic growth ahead. Its also the first time since 2001 that more firms expected the unemployment rate to fall than rise – all good for jobs, investment and growth. For the Wellington region housing market, things are well recovered and stable with prices up 6.6%** on a year ago and sales volumes for March similar to last year.

In any market, the best house sale prices come from the best approaches – through smart marketing, leading edge technology and negotiation, my clients continue to get better results. Don't just pay someone to stand at your open homes... you need the best marketer and negotiator you can get.  If you know someone thinking of selling this year put them in touch or drop me an e-mail to find out how (leonie@leoniesnook.com).

Quick News/Updates Feb 12th 2010

1.    Interest Rate Rises – The Reserve Bank has left the official cash rate (2.5%) unchanged for now but signalled interest rate rises over 2010, as the economic recovery continues and less stimulus is needed.  With some economists picking that rate rises may start as early as April, its timely to start thinking about mortgage planning and it may save you a lot of money!  Give me a call or e-mail if you want to tap into some advice.  I work with a preferred mortgage broker and have had great feedback from clients on their service.

2.    Property Market Healthy – The property market recovered strongly over 2009 with values back to just under 4% of November 2007 peak levels*.   Why is this and what does it mean for the future?  Property is a demand and supply picture, and at its most fundamental level is about housing people.  On the demand side net migration was just over 20,000 for the year to Nov 09 (compared to 3,569 for the year to Nov 08) and is expected to remain positive over 2010 while employment is set to improve.  On the supply side, real estate construction is at weak levels (consents issued were 14,199 for year to Nov 09 just up on a previous four decade low of 13,616), and is slow to adjust leaving housing shortages.  Impending tax changes for property investors and interest rate rises are expected to dampen demand and cause a transitional period to wash through.  However, looking out beyond transitional factors, economists are expecting that population growth and less construction will see continued housing shortages and price increases (albeit more moderate).

3.    Selling Now - We are heading into high season - a great time to sell :-) – and the phone is very busy!   Selling property is about the 3 P’s - Presentation, Promotion and Price - and getting the very best results in different stages of the market requires the right approach and process.  I go beyond what most other agents can offer, and work with each of my clients to provide a strategic marketing plan, leading edge technology, and project management to ensure the best possible result.  You would be surprised what a difference it makes!  Who do you think may be the next person you know to buy or sell?  Please put them in touch.   I also give generous referal rewards :-)
* www.reinz.co.nz

New Rateable Values are out for Wellington (check out online services on the Wellington City Council website).  Many have fallen to some degree.  Will this have an effect on prices?  It’s no secret that buyers start by benchmarking using RV’s.  However, as you can see from the latest sold properties below, RV can vary greatly from the actual price paid.  Buyers have usually visited many properties before they put an offer in.  They make their decision based on what others have recently paid for similar properties.  Unless we see a move in interest rates causing the numbers of buyers to reduce, we should continue to achieve similar prices for properties over coming months.

Leonie Snook, Licensed Sales Person, Johnsonville Churton Park, Harcourts

According to an article on the Landlord Website there was a 19% increase in listings in September 2009.  This could be attributed to the 'Spring Fling' however with prices increasing and vendor expectations of prices increasing we do see and increase in consumer confidence.

Of course there is talk of Capital Gains Tax - the government and their media team are 'chip... chip... chipping' away at that one with various media releases and statements, but that doesn't seem to have dampened the rise in prices or buyer activity going on.

Mortgagee sales continue to rise especially in Auckland and in the most part with investors.  If you are struggling with payments please call me first - we may be able to sort out a plan to svae your house from the bank...

Have a great weekend, Leonie Snook, Sales and Marketing Consultant, Harcourts, Wellington.

The Sunday Star times released numbers today regarding the number of mortgagee sales. They are on the rise not only in Auckland - where pages and pages of black and white photos show the carnage... but also in Wellington. It was corporate developers and property investors who were feeling the pinch... but now it is the average kiwi homeowner. With redundancies and reduced cashflow, they hold out for as long as possible through fear and pride and then bam... ,mortgagee sale. If you are in this predicament please call me. I understand your predicament and will help you work to a solution. I have many contacts in the housing industry and we may be able to help you. Leonie Snook, Sales and Marketing Consultant, Harcourts Johnsonville www.leoniesnook.com

According to the latest Nielsen Online Poll, sellers are turning to Real Estate agents again as buyers flood the market.  Private selling is seductive.  Much like doing up your house yourself.  You know where to buy paint and a paint brush... can't be that hard.  You buy a book on painting or search online... not that hard... oh hang on - do I need to wash the walls first... sugar soap... what's that... gloss... semi gloss... plastering... cutting in... green tape or blue tape or purple tape....

A Real Estate Marketing Consultant is a trained professional.  They are in the industry as they can communicate with people, they enjoy talking to people, they know how to project manage, market, manage legal contracts and negotiate.  This is how they feed their families.  They live and breathe it everyday.... The Sale and Purchase Agreement is a confusing document at the best of times, let alone juggling builders reports, valuations, warranties, contractual obigations, open homes, advertising, lawyers and mortgage brokers...

Don't DIY one of the most important decisions you have to make.  The professionals will get a much better outcome for you - less stress and more money... as long as you choose the right one :-)