colinrealestate

commented last time that it seemed as though interest rates would remain low into 2012! Well, with the drama in Europe that seems likely well into if not through next year. A lot of this has to do with European [and other] governments dropping their OCR rates, thus making it cheaper for our banks to gather in the extra money needed to meet loan requests here.  Additionally, Dr Bollard seems to be indicating that not only will our OCR remain low, it might even drop if market stagnation takes over from current conservative spending by Kiwis.

The banks are telling us that they have never had so many re approved loans in the market but which are not being drawn down on! Are those buyers just waiting for the right property to come on the market?

Filed under: REAL ESTATE  |   Tagged under Real Estate | No Comments »

Frankly, with what the parties are saying as we head to another election, we don’t see any major change impacts on the property market irrespective of which majority party prevails and which minor parties push them around.  At this stage or course, a change in government seems unlikely which provides even more comfort as we all plan ahead.

Filed under: REAL ESTATE  |   Tagged under Real Estate | No Comments »

I think I commented a couple of newsletters back that we were seeing increased interest in but not yet sales of rural properties. Well, that has changed, with rural property saes the highest in the past two months than for any two months in the past four years.

The farm gate income projections remain strong across almost all sectors of landuse notwithstanding that pressure has come of some unreasonably high export prices slightly and this continues to put positive spending  pressure on regional towns and cities …and consequently pressure on  their rental and property sales markets.

Filed under: REAL ESTATE  |   Tagged under Real Estate | No Comments »

First National’s quarterly Property Management survey recently showed that in the main rental demand is high, vacancies low and real pressure is coming on newer and larger homes.

Really, this followed on from the previous survey but for those intending becoming a landlord it is yet another reminder that the lowest priced property which is immediately cash flow positive might not be the safest place to invest longer term. Our property team can advise.

Filed under: REAL ESTATE  |   Tagged under Real Estate | No Comments »

t’s almost a broken record now, but the indicators are there that mortgage interest rates will stay as low as they are at least into the middle of 2012 and given the contraction in Europe along with China and pending drop in the Australian interest rates… it could even be extended beyond that.

Advice though, form the banks even, is to watch out for low rates for fixed mortgages 3 – 5 years and where you see something with your lender that looks like it will insulate you against the likelihood of 8% rates in a couple of years’ time, grab the opportunity!  Remember, NZ’s rolling average mortgage rates this past 30 years have settled in the 7.75 – 9% area.

Filed under: REAL ESTATE  |   Tagged under Real Estate | No Comments »

When you buy a car, you usually get an MTA registered inspector to report on its safety, wear and tear and potential longevity. Or AA. Either way, you can trust the report and there can be ‘come back’ if an adverse event occurs.

Well, it is of huge concern to us that when making the largest spending decision of their lives when buying a home, far too many New Zealanders use very informal checks; unregistered builders, friends and relatives for example.

Some engage the services of promoted Building Inspection Companies, however, it has to be said that while many of these companies are reputable and deliver excellent advice, some do not. And worse, as a generalisation, those more informal organisations often don’t carry indemnity insurance of any sort, to cover that sad situation where their report and investigation misses something important.

So, our advice? Be just as careful about who checks out your home as you are about who checks the car, your teeth and your children’s health.

Filed under: REAL ESTATE  |   Tagged under Real Estate | No Comments »

There are so many theories as to what will happen post the Cup, but it does seem to First National, that in those towns and cities that are hosting overseas teams and especially those hosting games, there will be some spare rental properties. It’s now quite obvious that considerable volumes of homes are being rented out to visitors…many of these properties having been withdrawn from the rental market just in time for the cup start.

Filed under: REAL ESTATE  |   Tagged under Real Estate | No Comments »

I spoke with one of our key rural salespeople the other day and he commented that the increased income almost all rural land-use types are reporting is still being used to downsize debt, some needed capital expenditure and for increased pasture management [did you see both major fertiliser companies report between 75 – 100% increase in sales this year compared with last?].

This has meant that while listings and sales are slow still, although certainly up on 2010, the past week or two has seen considerable activity with owners applying diligence pre listing while buyers are starting to seek options.

Rural towns are enjoying the increased spending off the farms, that’s for sure.

Filed under: REAL ESTATE  |   Tagged under Real Estate | No Comments »

I know I’ve said it before, but as we’re all in the property market somewhere, we need to be ready for what Spring usually brings in this little country of ours.

Firstly, it will bring more homes to the market. This will mean more choice for buyers…and right now they don’t have much of that so are ‘fighting’ over the better listings, resulting in some real battles and strong prices. More listings may take that pressure away.

For those selling, it will be more important than ever that their home is clean, fresh, uncluttered and a ‘standout’ in their price and size sector, especially if there is, as we suspect, more competition.

Of course, even more buyers will surely be in the spring market too. History predicts this as does the now hugely record numbers of people browsing property websites…nothing is surer than they will all synchronise their watches and arrive in the market together!

Filed under: REAL ESTATE  |   Tagged under Real Estate | No Comments »

While there’s lots of debate about when the mortgage interest rates will rise, the Reserve Bank has flagged it will likely be well into 2012 and with their comment this past week that inflation is quickly disappearing from the economy, that delay may be for even longer.

As a note, Australian rates are 2% higher than ours and likely to stay that way too. So who’s the ‘lucky country’ then?

Filed under: REAL ESTATE  |   Tagged under Real Estate | No Comments »