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At the recent First National conference in Wellington we heard from ANZ’s Khoon Goh, who carefully explained why the world is in the mess it is, where things are going and what we New Zealanders might have to expect in the future.

I won’t confuse you with the intimate details but the nub of it all goes like this:
Firstly, NZ is doing well compared with many nations, with a slow return to normality under way.
Secondly, because of the cost of money to banks off shore and changes in the Reserve Bank’s requirements around NZ banks using more and more NZ-sourced money for mortgages, the “new normal” will see:
o floating rate loans at lower rates than fixed, probably permanently it seems,
o a demand for higher deposits on property purchases
o and get this, we could be right back to the real old days with a limit on the number of loans available in any one week from any one bank branch.

It was also obvious that the Reserve Bank has constructed this position and there is really no way out. This will indeed become the “new normal.”

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An associated result of the Budget appears in the investment property market, where the shift in depreciation advantages is projected to see a lift in rental property sales, by those investors exposed through low equity alongside the drop in depreciation. While some pundits believe those retaining their rental properties will increase rentals to counter the lower tax claw-backs now available.

This result seems highly probable in those markets where building remains at low levels, ensuring pressure on existing rental property.

The corollary to all that is there will be at the very least a noticeable lift in the number of properties in the lower end of the market available for purchase. Whether it’s first home owners or well-heeled investors that purchase these listings remains to be seen.

If you are in either of those markets, keep your eyes out for opportunity and give me a call to discuss your options!

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The lowering of Company and Personal tax has already had a positive effect on interest in lifestyle blocks and the orchard sectors, most particularly the latter, where pip and berry fruit sales had all but ceased these past 18 months.
Buyers and sellers seem now to have more confidence in these market sectors.

Visit http://www.firstnational.co.nz/rural/ and search under the “Lifestyle Search” tab for opportunities in your area now.

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The same can be said for holiday markets around the country, where we are hearing from colleagues that more buyers are out but looking carefully at what they make offers on.

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In a move directed at delivering better information on real estate issues to prospective immigrants to New Zealand, First National this month announced an exclusive relationship with the highly-regarded migrant site move2nz.com

“Mike and Tammy Bell, founded the site following challenging time gathering information on this country and especially specifics on our real estate processes and laws” commented First National General Manager, John Stewart.

“After over five years in the market, move2nz.com has become a leading information cinque for people looking to move here and not only from the UK where its founders came from, but also Europe, North America and Asia” he added.

First National will provide all its press release information, regional updates and advice to the website members as well as covering all queries raised on the site’s “Ask an expert” column.

If you have friends or family looking to make the move to NZ, they can find a link to move2nz.com from the home page of www.firstnational.co.nz at any time.

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Finance Minister, Bill English, turned more than a few heads recently with comments made in advance of the 20th May Budget. In short, he flew the flag that there will be tax cuts across the board but an increase to 15% on GST.
The Minister noted that any tax switch involving cutting personal taxes across the board and raising GST to 15% would leave the vast bulk of New Zealanders better off. He said that any increase in GST would be accompanied by immediate compensation for low and middle income earners, beneficiaries, superannuitants and people receiving Working for Families. Additional regular adjustments for other ongoing inflationary pressures would be provided as usual. In addition, under the tax package being considered, superannuitants and people on lower wages would also receive income tax cuts.
Coupled with Reserve Bank Governor, Dr Allan Bollard’s decision to both leave the OCR at a low 2.5% and flag a much later lift in interest rates while our contacts at the ANZ Bank believe any increase in OCR rates will probably be limited to four 0.25% rises before settling
So, perhaps we can begin to feel the end of the tight world we have endured is in sight.

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Over the year’s two old favourite wives-tales – that winter is a bad time to build a home or sell a home – have been proved fallible at least, false at best. And here’s why.
Simply put, the more people who listen to that type of advice mean that if you do choose to sell during the winter months there will be less competition! Simple really – if your house is well presented, well priced and one of only a few homes for sale, your chances of attracting the right buyers increase. And in the building example, there is less pressure on construction companies and particularly less pressure on sub trades who are often the determinants of “the pace of completion.”
So, if you do choose to sell this winter, get one of those paving cleaner products and spray paths, fences and out buildings to make sure they are clean. Wash the house down…no, not with a water blaster, they don’t work and can damage; best results are always gained after hosing and “sweeping” with a soft plastic-feruled yard broom.
Inside, keep your home warm, light and colourful. You may like nets and semi-closed curtains and lowered Venetian type blinds but really, they create a very dark and therefore unappealing room and this need not be the case. Add colour with fresh flowers or an interesting vase, make living spaces more homely by lighting the fire (if you have one), and don’t forget the classic aroma of freshly baked bread, muffins or cookies will appeal to everyone’s senses as they view your home

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After reductions in new homes being built over the past couple of years, a stable inward drift of immigrants and fewer Kiwis departing overseas, there is likely to be real pressure on rental stock this year and into 2011.

Additionally, the threatened tax increases on some investment property income has seen some investors down sell.

It is our opinion that in many markets there will be a shortage of good and larger sized rental properties available, especially in areas popular with job seekers and immigrants. If you already own rental property, now is the time to get maintenance and odd jobs completed.

If you don’t own an investment rental property yet, speak to me today about options in your area.

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www.firstnational.co.nz for nation-wide property listings and Real Estate information
Looking to move to OZ?
See www.firstnational.com.au for Australia wide property listings.
www.pricespy.co.nz Prices for NZ’s electronics compared
www.sorted.org.nz for all your finance queries
www.interest.co.nz for the best mortgage rates from all lenders
teuxdeux.com for a very handy and useful daily “to-do” activity list to keep on your screen.

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If you sell, buy or list a rental property through First National, here’s something to warm you as winter arrives!

We are about to launch our Club FN card which will see holders qualify for savings across a range of products and services, presently revolving around electronics, appliances, banking and insurance but shortly to deliver on a whole lot more.

Talk to us about Club FN soon.

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