The Property Chronicle April 2022

THE PROPERTY

CHRONICLE

APRIL 2022

Drury

DRURY

CONTENTS Letter from Brent Worthington

Page

3-4

Drury Developments

Page

5-7

Drury Feature Listing

Page

8

Drury Listings and Recent Sales

Page

9-10

REINZ Monthly Property Market Update

Page

11

Rent Exchange – Property Management Newsletter

Page

12-14

Loan Market

Page

15

Meet your Agent – Andrew Fisher

Page

16

Andrew’s 5 tips

Page

17-18

REINZ Megatrends Report

Page

19

LJ Hooker Home Smart Newsletter

Page

20-23

DRURY April 2022

Well the Easter Bunny's been and gone and it's only eight weeks until the Winter Solstice-shortest day.

Wow! The year's racing away on us again.

Variable market dynamics and a mixed bag of forces both at home and abroad continue to send tremors through our economy. Yet even these shifting goalposts offer opportunities for buyers and sellers alike in our residential marketplace, despite the doom and gloom commentary from

mainstream media. You'll find several interesting articles in this month's publication that address this.

What continues to be extremely frustrating is the "lip service" Government and local Council pays to the escalating cost of new build residential property in New Zealand. They offer many reasons for the increasing costs without addressing their own contribution to the problem. Ever since the early 1990's

Councils and the Government have been regularly and significantly increasing the cost of compliance with total disregard for you, the homeowner.

Up until the early 1990's local Council and the Government funded community facilities along with the services required for a residential subdivision, while the information required to get a Building Consent for a domestic dwelling amounted to nothing more than three or four drawings, some engineering detail and possibly some product specifications. Sadly, not anymore.

The developer of a residential subdivision now has to fund the installation of all services, footpaths,

lighting, sewage, etc. and then upon completion hand ownership to the local Council. The developer also has to pay a Parks & Recreation levy which according to various Councils is utilised to help fund infrastructure like parks, community facilities, local roads, stormwater drainage, traffic management, etc, etc.

And this is without consideration to the costs already incurred by the developer to meet the

requirements of the Resource Management Act and local Council Bylaws before getting the authority to proceed with the subdivision.

All too often we now see developers given the approval to proceed with a new residential subdivision while scant regard is shown by the Council or Government to the provision of public facilities, additional roading, schools, etc. to cope with the increased population the subdivision impacts on the existing community.

Whether building a new dwelling or making an addition to an existing one, the costs associated with getting a Building Consent, having the work "signed off" by a Council approved Building Inspector at the required stages of the build and then applying for a final inspection and Code of Compliance Certificate (CCC) now run into thousands and thousands of dollars.

This is without taking into consideration the time and money it takes to provide all the information

now required by Council when initially lodging the minefield of applications required. Not to mention the extreme frustration, time-wasting and costs incurred dealing with what have become totally dysfunctional organisations.

Why do we have to pay for a Land Information Memorandum (LIM)? This is a document held by Council on your property. The very Council whose employees we pay as rate payers. The same goes for accessing your Property File.

One could write an encyclopedic novel on this subject however there's likely more than enough of an insight here for you to grasp the reality of how our Government and Councils continue to contribute significantly to the increased costs of residential land and dwellings.

Common sense suggests that if the bureaucracy was seriously interested in addressing the continually escalating cost of building in New Zealand they would commence by removing a lot of their charges and nonsensical compliance requirements.

As always, we trust you enjoy this month's publication.

Kind Regards,

Brent Worthington Principal LJ Hooker Drury & Rent Exchange Property Management T 029 294 7500

DRURY

DRURY DEVELOPMENTS Proposed Zoning Changes for Drury Auckland Council has now released information about their proposed zoning

changes to meet obligations under the government’s new planning legislation: the

National Policy Statement on Urban Development ( NPSUD) and the Enabling Housing Supply Act. Briefly, the NPSUD allows high density development ( 6+ storeys) within

‘walkable catchments’ of public transport hubs and town centres. The Enabling

Housing Supply Act applies new Medium Density Residential Standards ( MDRS) to all residential land ( with some exceptions for character properties etc) . These MDRS

rules enable the building of 3 x 3 storey buildings on any residential site as a

permitted activity.

Council is asking people to provide feedback on the proposed changes through the submission process at akhaveyoursay.nz/housing. The feedback process will last

through until 9 May and the zoning and planning changes will be notified in August.

Drury is less affected currently by these changes than most other areas in Auckland.

This is because so much of Drury is still zoned Future Urban and awaiting decisions on the Drury East plan change applications by Kiwi Properties, Fulton Hogan and Oyster Capital.

This is a quote from the Council Information Sheet on Walkable Catchments:

“The location for the stations at Drury Central and Paerata has been confirmed, while the location for the Drury West station has not. However, the full extent of the

walkable catchments for the Drury Central and Paerata stations has not been

determined. This is due to the surrounding Future Urban zoned land and the lack of certainty about the future road networks in parts of these areas. The full extent of these walkable catchments will be determined at a later stage”.

We can see from the attached map, however, that Drury north of the train station along Great South Road has a proposed mix of 2 story residential, 3 storey

residential and terrace housing ( with the new higher 6+ storeys enabled within the walkable catchment) .

If you have any questions about any of these changes ( and they are pretty complex! ) , please feel free to give Andrew Fisher a call on 0275 425 500.

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8 Le Havre Place, Takanini LIVE, INVEST OR DEVELOP This 91m² 3 bedroom home is set on a 608m² section zoned Mixed Housing Suburban.

The property is located on a charming, peaceful cul-de-sac, and is perfect for a family home or as an investment.

The size of the property and its easy street front access mean that it also has considerable potential for development.

A large double garage with attached double carport provide plenty of parking space - or the opportunity for a serious man-cave.

Location is key with this property - a short walk to the local primary school and also a walkable distance from Takanini train station and shopping precinct mean that this property is quiet, convenient and full of potential.

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AUCTION In rooms, Thursday 5 May at 6.00pm (unless sold prior)

CONTACT Andrew Fisher 0275 425 500

LJ HOOKER DRURY 09 294 7500

To be Auctioned Thursday 5 May 2022 In Rooms 1/233 Great South Road, Drury at 6.00pm (unless sold prior)

https://drury.ljhooker.co.nz Residential | Commercial | Rural | Land Sections | Coastal

LJ Hooker

Current Listings

13 Four Oaks Place, Pukekohe NZ

§3

b2

�2

3 Big Bedrooms+ Large Office

Price indication north of $!million ...... Vendor says "make your offer".

Built by Sovereign ...

91 Beatty Road, Pukekohe NZ

§s

b7

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For Sale Price By Negotiation View By Appointment Andrew Fisher 0275 425 500 andrew.fisher@ljhooker.co.nz

For Sale $2,850,000

On the market for the first time in 43 years. The 630m2 (more or less) dwelling is set on a 2,379m2 site ......

View By Appointment Andrew Fisher 0275 425 500 andrew.fisher@ljhooker.co.nz Lina Rob 0210 228 8521 lina.rob@ljhooker.co.nz

72 Cape Hill Road, Pukekohe NZ

For Sale $550,000

UNLIMITED POTENTIAL WITH DEVELOPMENT LAND 2379m2

View By Appointment Andrew Fisher 0275 425 500 Calling all the dreamers and builders desiring to build a andrew.fisher@ljhooker.co.nz dream home on this desirable 722sqm section.

Jessica Green 0211 678 193 Building consent and survey work has been done by jessica.green@ljhooker.co.nz the vendor, making it easy for you.

Make An Offer Today!

8 Le Havre Pl, Takanini NZ

§3

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�6

This 91m2 3-bedroom home is set on a 608m2 section zoned Mixed Housing Suburban. The property is lac...

LIVE, INVEST OR DEVELOP

-11:30AM, Sunday May 1st, 11:00AM -11:30AM Andrew Fisher 0275 425 500 andrew.fisher@ljhooker.co.nz

87 Beatty Road, Pukekohe NZ

For Sale Auction Date To Be Confirmed

§s

b4

�2

Perfect Home and Income

The 262m2 (more or less) main dwelling is set on a 949m2 site (more or less) and offers the perfect home and income combination. Every picture tells a .....

09 294 7500 https://drury.ljhooker.co.nz/

For Auction Auction Thursday May 5th, 06:00PM View Saturday April 30th, 11:00AM

View By Appointment Andrew Fisher 0275 425 500 andrew.fisher@ljhooker.co.nz Jessica Green 0211 678 193 jessica.green@ljhooker.co.nz

1/233 Great South Road Drury NZ 2113 drury@ljhooker.co.nz

LJ Hooker

69a Dublin Street, Pukekohe NZ

§2

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LJ Hooker Drury

Recent Sales SOLD

�2

Contract Fallen - Price Drop!

Motivated Vendor says "sell". Vendor has already started to move so needs an urgent sale. Act now an...

45 Manuwai Lane, Karaka NZ

§4

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SOLD

�2

Karaka Lifestyle

Lifestyle, work from home, extended family, home and income.

Found in rural Karaka, this tran...

28 Pokorua Road, Pollock NZ

§3

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SOLD

�-

28 Pokorua Road

50 acre approx. lifestyle block or run off would suit any farmer.

This block sits with coasta...

33 Pearson Road, Patumahoe NZ

SOLD

Patumahoe Country Lifestyle

North facing, family brick three bedroom home on a 12 acre lifestyle block.

Open plan woode...

62B McRobbie Road, Kingseat NZ

SOLD

Land Bank or Develop

Calling all developers and investors Presenting 1.5 hectares (3.7 acres zoned rural) ...

1 Tuakura Way, The Gardens NZ

§3

b2

SOLD

�2

Spacious with Bonus Location

Location with space inside and out. Brick and tile low maintenance north facing executive home, sitt...

09 294 7500 https://drury.ljhooker.co.nz/

1/233 Great South Road Drury NZ 2113 drury@ljhooker.co.nz

MONTHLY PROPERTY REPORT. 14 APRIL 2022

© REINZ - Real Estate Institute of New Zealand Inc.

Click here for the Full Report

Property Management On the following pages is our LJ Hooker Property Management Newsletter which refers to the Changes to Healthy Homes Standard and also includes an article about a tenant who has been ordered to pay decomtamination costs.

We are sure you will find the Newsletter both interesting and informative.

For further information please click here for the link to Updating Healthy Standards - Heating Regulations.

If you have any questions about anything in the Newsletter or property management in general please do not hesitate to contact our Property Manager, Debbie Harrison.

Email: debbie.harrison@ljhooker.co.nz Phone: 021 549432

Changes to Healthy Homes Standard delayed In response to public feedback, the government made changes to the Healthy Homes Standards that were meant to come into force in April.

This decision was made by the government on December 3, and the amendments to the heating standards are meant to better reflect how certain properties are designed to retain heat.

The changes will also give more flexibility with the introduction of: a new alternative pathway to compliance a new ‘top up’ heating allowance, and a new tolerance for existing insufficient heating capacity The changes to the ventilation standards now allow mechanical ventilation systems that continuously extract from kitchens and bathrooms, for homes that have received building consent since November 2019.

Back in December, the government indicated these changes would take effect in April 2022. However, it was not considered by Cabinet and Executive Council until mid April.

A spokesperson for the Ministry of Housing and Urban Development (HUD) indicated the changes have been gazetted on April 14 and will become law on 12 May 2022.

“The changes have to be public for 28 days before they become law. “(What) this means is that landlords who are eligible to install smaller heating devices in new homes built to the 2008 building code requirements for insulation and glazing and some apartments will be able to do so from mid-May onwards.”

Other proposed changes include an increase to the electric heater ‘top up’ allowance from 1.5kW to 2.4kW and a decrease in the tolerance allowance from 90 percent to 80 percent if there is an existing qualifying heater installed prior to July 2019.

ljhooker.co.nz

Tenant ordered to pay decontamination costs Two tenants with a liking for class A drugs have been ordered to pay up after decontamination costs passed $30,000.

The methamphetamine levels at the Pokeno property were up to 11 times higher than the national safety standard.

While the landlord was insured for such an event, it was not enough to cover the clean-up.

In a decision released by the Tenancy Tribunal, it stated the decontamination costs exceeded $30,000 and that the landlord was only insured to that figure, less a $2500 excess.

The two tenants moved into that property in July 2020 after a baseline testing for meth was undertaken. A year later, when the tenancy ended and they left the property, a composite test for meth was done.

The test revealed drugs had been used inside the home, and that led to a detailed assessment in August, 2021.

Meth levels up to 16.9mg per 100cm2 were detected throughout the house, exceeding both the New Zealand standard of 1.5mg per 100cm2 and the Gluckman standard of 15mg per 100cm2.

Following those results, the landlord applied to the tribunal for compensation and reimbursement of the bond.

The tribunal ruled the tenants had intentionally damaged the property by committing an unlawful act.

It found them liable for costs and ordered to immediately pay the landlord $13,572.

This compensation covered the insurance excess, $6137 for the meth testing, $1000 exemplary damages, and for the replacement of the blinds, rangehood and heat pump.

The tenants’ bond of $2400 was also to be paid to the landlord, the tribunal ruled.

The information contained in this publication is general in nature and is not intended to be personalised real estate advice. Before making any decisions, you should consult a legal or professional advisor. LJ Hooker New Zealand Ltd believes the information in this publication is correct, and it has reasonable grounds for any opinion or recommendation contained in this publication on the date of this publication. Nothing in this publication is, or should be taken as, an offer, invitation or recommendation. LJ Hooker New Zealand Ltd accepts no responsibility for any loss caused as a result of any person relying on any information in this publication. This publication is for the use of persons in New Zealand only. Copyright in this publication is owned by LJ Hooker New Zealand Ltd. You must not reproduce or distribute content from this publication or any part of it without prior permission.

ljhooker.co.nz

How to maximise your chances of mortgage approval The CCCFA (Credit Contracts and Consumer Finance Act) only came into force in December, and the credit crunch is already starting to bite.

The legislation aims to protect vulnerable borrowers from loan sharks and requires lenders to scrutinise applicants’ financial history more closely. However, many home loan seekers have found themselves rejected by the banks. The latest data shows the proportion of successful home loan applications has dropped from 36% to 30%. According to media reports, grounds for refusal include too much spending on takeaways and Christmas shopping.

The good news is that you can take action to improve your prospects even in a tightened lending environment. Here are some tips to give you the best chance of approval.

CLICK FOR MORE

Property market showing signs of recovery - what could this mean for buyers?

The first faint signs that the Kiwi property market is cooling have emerged, with good news predicted for property buyers.

The number of homes for sale is back to pre-COVID 2019 levels according to realestate.co.nz but asking prices in some key centres have begun to dip.

The latest data from the website says more than 23,000 homes are now on the market – the first time it’s hit this level since June 2019.

The housing stock in February increased 47% year-on-year. Just 12 months ago, Kiwi buyers had around 7,500 fewer homes to choose from. And just six months ago, the number of homes for sale was 12,249 – a 15-year low.

CLICK FOR MORE

Meet your Agent Andrew Fisher Andrew is a real estate consultant committed to achieving the best outcomes for his clients, whether they are buyers or sellers.

Andrew's natural ability to quickly build rapport, combined with his determination, analytical ability and negotiation skills are strong positive attributes.

Andrew knows how important it is to be a great listener and a calm source of knowledge and support for the people he is representing.

Andrew Fisher

0275 425 500 andrew.fisher@ljhooker.co.nz drury@ljhooker.co.nz https://drury.ljhooker.co.nz

When you know, you know. ™

From a real estate agent's point of view, Andrew's top five tips are:

• • • • •

To meet with the bank and mortgage broker early, before starting the property hunt Engage the services of a lawyer/solicitor Undertake market research – look at what is for available for sale, what is an affordable location, research recent sale prices in the preferred area Try and get to the properties you like, preferably before the first open home Minimise conditions – your bank/broker and lawyer will be able to help guide you on this as everyone's situation is different.

It's also good to think about current circumstances and long-term goals to decipher whether the time is right before embarking on the home buying journey.

Research finances, consider mortgage repayments, the costs involved with buying a house like legal fees and moving costs, as well as living expenses and costs of owning a home too.

For agents like Andrew, helping buyers into their first home is both exciting and satisfying.

When you know, you know. ™ Five top tips to help buyers realise their dreams: Keep your eye on the prize - when saving, believe that the end goal is going to be worth it and all the sacrifices you make are worthwhile

Use a mortgage broker - a mortgage broker is critical to providing in-depth knowledge about the housing market, the loan options available and/or how to reach your deposit goals. They also have access to multiple lenders and can provide offers that may not be available to direct customers

Create a checklist of "must-haves", "nice-to-haves" and "bonus points" – the Walkers then attached a score of 3, 2 and 1 respectively to each category and marked each house like this.

That way you can be realistic about every house and they are all on an even playfield to score.

Things like the weather, the agent's personality and how you feel on the day won't affect your actual score of the house

Be open - in today's market we all know how difficult it is to get your foot in the door of a home, especially your first home. Your first home doesn't have to be absolutely perfect. Chances are it will not be your "forever home", so be flexible and perhaps sacrifice that large bathroom you wanted, or the distance to the local school may not be as close as you would like

Due diligence - do your homework. The simple stuff everyone should do before buying a home.

Before putting in an offer make sure you look at the home's history, such as the sales history and property inspection report ( using a qualified property inspector ) , including a LIM and building report. Talk to the agent and find out as much as possible about the property. Research the suburb.

Be nosey and check out the neighbours. Invite a friend or family member to the open home or to a private inspection for another opinion.

MEGATRENDS REPORT

New Zealand property market 2022

Click here for the Full Report

1 | Real Estate Institue of New Zealand

Market update: supply grows, demand eases The tide is changing for the property market as the flame that has motivated selling activity in recent times is starting to diminish.

The latest data from the Real Estate Institute of New Zealand (REINZ) shows a continuation of the slowdown in the property market, noting that prices have eased while inventory levels have increased.

Annually, the median residential sales priced nearly eight percent since March 2021, from $825,000 to $890,000 in March 2022. However, the seasonally adjusted figures showed a decrease of 4.8 percent, indicating a weaker price increase than expected moving from February to March.

“Over the past three months, we have seen a shift and the market is now settling into this phase of the cycle,” REINZ chief executive Jen Baird said. “The last two years have benefited from an exceptional COVID-19 boost.

Following this period of significant activity and growth, prices are easing and the market is returning to a more settled pace.”

“While we continue to see prices increase annually —in all but one region — the rate of growth is slowing, sales activity is down and the median days to sell is up. We’re seeing the market moderate as people settle into this phase of the property cycle.”

rate by 50 basis points — to 1.5%. The double rate hike will do little to alleviate concerns and rather see the market slow further as buyers reassess their ability to meet higher mortgage repayments should the dial be turned up further, tempering their spending.

“As the market shifts to a new pattern, we note volatility across regions. The data shows variation across regions and TAs within those regions. Last month, we saw strong prices in Otago, Southland and Canterbury, in March these regions are down — a reflection of what is happening across the country.

“House prices tend to be more sticky when decreasing than increasing, which is what we are seeing now.

While market sentiment has quickly shifted, vendors are slower to adjust their price expectations. As demand drops, vendors tend to choose to wait longer to sell their property rather than sell below those expectations.

Those who must sell often have to drop their price to meet demand. That tends to be the general experience at this stage of the property market cycle where the market power is leaning towards buyers,” Baird said.

Tighter lending criteria, LVRs, increased interest rates and inflation have reduced the pool of buyers who are ready and willing to pay market prices, Baird said.

“The increase in interest rates over the past months presents one of the greatest impacts to the market.

Yesterday the Reserve Bank increased the official cash

ljhooker.co.nz

Reasons to get a property inspection before you sell Buyers will often get a property inspection to reveal any unwanted surprises that may mean additional costs they did not budget for.

But sellers should not just leave that up to the buyers, if you get a building inspection done before your property hits the market it will uncover whether you have mould, leaking pipes, electrical wiring issues, water damage and potentially more.

With this information in hand, you as the seller get the chance to set yourself up for a more successful sale.

So why should you consider a pre-sale property inspection?

Get more interested buyers As a seller, you want to attract more interested buyers, and with a property inspection report provided upfront, it gives buyers a comprehensive overview on the general condition of your property.

This gives buyers more confidence your property has no issues they would need to deal with, or it gives them confidence that work that needed to be done was done properly. All those details would be outlined in this report, and buyers will be able to proceed with confidence knowing exactly the state and condition of the home they want to buy.

Gives you understanding of the current conditions of your property After a thorough inspection under the floorboards, in the ceiling and everywhere else around your property, you will have an accurate understanding of its condition. During this process, minor and major issues, such as cracks and drainage problems, can be noticed and easily fixed to avoid bigger problems down the track.

With a professional inspection you can correct any issues right With the report in hand at the away. This gives you an beginning of your property selling advantage during price journey, it could also accelerate negotiations, allowing you to the deal process as you can back up your claims about the address issues beforehand. This condition of your property with an would avoid delays and setbacks independent and expert report. that could occur during the Also, with a clear understanding of your property’s negotiation if unexpected condition, you have a better picture to determine its value for an accurate and realistic expectation on problems cropped up from the where to set your price range. buyer’s property inspection.

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Understand potential future expenses With a complete property inspection, you will get an insight into future costs with a high degree of accuracy. Ensuring you and the future owner understand when various systems, such as piping and plumbing, may need to be replaced.

Also, it could be helpful to get these systems assessed for wear and tear to understand their expected lifespan. This gives you confidence that these systems are still in good working order at the time of sale.

Whether you sell or not, this information helps you better budget and plan for these costs, as well as help during negotiations. You might end up having a faulty system replaced before listing your property. And for those that are in good working order and do not need attention, your inspection gives you the opportunity to highlight this fact to buyers and potentially get you a better price.

Firm up your expectations A correct and accurate perspective of your property’s value gives you added confidence during the selling process. With a comprehensive property report, you will be able to set your own expectations around the price and the sale of your home with confidence.

Why get a property inspection before you sell?

Understand your property's condition and make any needed repairs before going to market Be aware of future costs a new buyer may have to factor into their decision To help you get an accurate perspective of your property's true value, giving you confidence during the selling process Gives you peace of mind about the 'health' of your home

You will also have a solid foundation for answering any questions that a prospective buyer could have. By being able to reference the view of an independent professional inspection report, you can give buyers more confidence and encourage them to make better offers and transact more quickly.

Rest assure - you have peace of mind With a detailed report full of critical information on the ‘health’ status of your home, you can be sure to have peace of mind. When you know your home is structurally sound and in good condition, you can attract higher prices.

With an inspection that puts your property in the clear, you can start marketing your property and negotiate with confidence, knowing that prospective buyers won’t find any issues because you have turned over every rock.

Additionally, if any problems do crop up from the buyer, you will be in a position where you will be able to sort them out swiftly and, on your terms, as they will not be a surprise. But with a house that is move-in-ready and with a clean bill of health, you have put interested buyers into a comfortable position where they know they can put in an offer with ease.

The information contained in this publication is general in nature and is not intended to be personalised real estate advice. Before making any decisions, you should consult a legal or professional advisor. LJ Hooker New Zealand Ltd believes the information in this publication is correct, and it has reasonable grounds for any opinion or recommendation contained in this publication on the date of this publication. Nothing in this publication is, or should be taken as, an offer, invitation or recommendation. LJ Hooker New Zealand Ltd accepts no responsibility for any loss caused as a result of any person relying on any information in this publication. This publication is for the use of persons in New Zealand only. Copyright in this publication is owned by LJ Hooker New Zealand Ltd. You must not reproduce or distribute content from this publication or any part of it without prior permission.

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