Issuu

THE PROPERTY

CHRONICLE

MAY 2022

DRURY

CONTENTS

Letter from Brent Worthington

Page

Drury Developments

Page

4-7

Drury Feature Listing

Page

Drury Listings and Recent Sales

Page

9 - 10

REINZ & Tony Alexander Real Estate Survey May 2022

Page

Rent Exchange – Property Management Newsletter

Page

REINZ Monthly Property Report

Page 13

Loan Market

Page

Kainga Ora Article from Jason Lovell – Manager

Page 15 - 16

Home Ownership Products Meet your Agent – Lina Roban

Page

Lina’s 5 tips

Page

18 - 19

REINZ House Price Index Report

Page

LJ Hooker Home Smart Newsletter

Page

21 - 23

DRURY May 2022

Property market slows, prices remain stable Sales activity in the residential property market continued to slow in April. Although there were fewer listings sold, property prices remained stable, according to the figures from the Real Estate Institute of New Zealand (REINZ). Compared to March, there was nearly a 30 percent decrease in sales across the country in April. However, March is typically a strong month for real estate sales. While the change is significant, the seasonally adjusted figures for New Zealand show a decrease of 0.9 percent moving from March to April – only a marginally weaker result than usual for this month. However, it is clear there has been a change in the property market, and the demand for property has weakened, REINZ chief executive Jen Baird said. “We’re seeing a slowdown in activity, there is more stock staying on the market for longer, and while annual price growth is more moderate, the month-on-month trend shows a fall in median prices.” “April residential property sales decreased annually by 35.2 percent across New Zealand, a story reflected across all regions. Looking at the underlying reasons for the continued decrease in sales count, the seasonally adjusted figures provide some insight. Last year sales volumes were underperforming due to supply challenges, and post-October 2021 when we began to see an influx of stock, it became a market underperforming due to demand challenges.”

Baird also noted REINZ received reports of fewer people attending open homes and auction rooms, as well as a decrease in buyer enquiries. However, the number of public holidays in April may have influenced this trend. “Those who are backed by equity and secure in a job market with a low unemployment rate, will continue to see opportunity in the market as more stock increases choice, and prices ease. Owneroccupiers are the most present and active in the market, so while we see a softening in the mid to low price range, interest is solid in the mid to high bracket,” she said.

Kiwi Bank Senior Economist Jeremy Couchman said the data shows the housing market is paying for last year’s excesses. “It’s also clear that the NZ housing market is in for a rough ride over the year ahead. The market is adjusting to the new reality of rising housing supply, investor-related tax changes, and far tighter credit conditions. Mortgage rates rose sharply over April as financial markets anticipate ongoing and aggressive OCR hikes to be delivered by the RBNZ this year and next,” Couchman said.

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 Drury Plan Changes Approved At long last the decisions have been published for Drury Central Precinct (PC48, Kiwi Property), Drury East Precinct (PC49, Fulton Hogan) and Waihoehoe Precinct (PC50, Oyster Capital). All 3 plan change applications have been approved. Links to the hearing decisions are here: https://www.aucklandcouncil.govt.nz/UnitaryPlanDocuments/pc-48-decision.pdf https://www.aucklandcouncil.govt.nz/UnitaryPlanDocuments/pc-49-decision.pdf https://www.aucklandcouncil.govt.nz/UnitaryPlanDocuments/pc-50-decision.pdf This should mean that Kiwi Property are able to go ahead with work on their Metro Centre and Business Mixed Use developments relatively quickly. The Drury East and Waihoehoe Precinct developments may be delayed as these plan change applications included land which has now been approved to be rezoned from Future Urban Zone to residential zones: Terraced Housing and Apartments, Mixed Housing Urban and Mixed Housing Suburban. As mentioned in my article in the previous Property Chronicle, the Enabling Housing Supply Act passed in December 2021 requires Council to make changes to the rules for these residential zones to accommodate higher density, especially for those areas in the ‘walkable catchment’ of the new train station. As the infrastructure requirements for the Drury East and Waihoehoe Precinct developments were calculated based on the residential density of the old Mixed Housing Urban and Mixed Housing Suburban zones, the Council will need to make some decisions regarding what rules to apply in the Drury East development in particular in order to get the right balance between encouraging more intensive development and ensuring that infrastructure needs are met. This should all become clearer in August, when the Council’s proposed changes to the DruryOpakeke Structure Plan are notified to the public. Watch this space! If you have any questions please feel free to give Andrew Fisher a call on 0275 425 500.

Drury Centre – Zoning Plan

Drury East Zoning Plan

Waihoehoe Precinct

13 Four Oaks Place, Pukekohe

3 Big Bedrooms + Large Office Price indication north of $1million ...... Vendor says 'make your offer'. Built by Sovereign Homes, this beautifully presented big open plan 173sqm (more or less) brick and tile single level home sits proudly on an elevated sunny site of 630m2 (more or less). Fresh brand new carpet has just been laid for you too! This gem of a property is located in a quiet cul-de-sac providing a safe loop for children at play and safety with traffic, as well as privacy. The home has three double bedrooms plus a generous large office that could easily be turned into a fourth bedroom. Two bathrooms, ensuite off the master, two inviting spacious living areas plus a separate dining area that all connect effortlessly. Outside is a low-maintenance garden and a sunshine filled patio area. The smart, modern kitchen overlooks the family living area that has easy access to the outside patio area. Great entertaining space and also a safe haven for children and pets to play. Double internal access garage with a laundry. Pukekohe township is a short drive distance away or you may choose to walk. There are plenty of local shops, supermarkets, cafes and restaurants, plus good schools and the train station. Buyers do note, you'll need to be quick or risk missing out on this fantastic solid home!

DRURY

FOR SALE Price by Negotiation

CONTACT

Andrew Fisher 0275 425 500 Lina Rob 21 022 88521

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

LJ Hooker

Current Listings

DRURY

13 Four Oaks Place, Pukekohe NZ

§3

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3 Big Bedrooms+ Large Office

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

91 Beatty Road, Pukekohe NZ

§s

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UNLIMITED POTENTIAL WITH DEVELOPMENT LAND 2379m2

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

8 Le Havre Pl, Takanini NZ

§3

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LIVE, INVEST OR DEVELOP

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

87 Beatty Road, Pukekohe NZ

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Perfect Home and Income

The 262m2 (more or less) main dwelling is set on a 949m2 site (more or less) and offers the perfect ...

10 Regis Park Drive, Pukekohe NZ

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Spacious Gem in Pukekohe

This immaculate and spacious home is perfect for families of all ages. Spread over two levels, the ...

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

For Sale Price By Negotiation View Saturday June 4th and Sunday June 5th, 12:15PM -12:45PM Andrew Fisher 0275 425 500 andrew.fisher@ljhooker.co.nz

Lina Roban 0210 228 8521 lina.rob@ljhooker.co.nz For Sale $2,850,000 View By Appointment Andrew Fisher 0275 425 500 andrew.fisher@ljhooker.co.nz

Lina Roban 0210 228 8521 lina.rob@ljhooker.co.nz

For Sale $980,000 View Sunday June 5th, June 12th, June 19th, June 26th 11:00AM - 11:30AM Andrew Fisher 0275 425 500 andrew.fisher@ljhooker.co.nz

For Sale Auction Date To Be Confirmed View By Appointment

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

For Sale By Negotiation 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

LJ Hooker Drury Recent Sales

DRURY

69a Dublin Street, Pukekohe NZ

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93 Te Puea Avenue, Meremere NZ

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Sold

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Calling all Doer-Uppers and Flippers

Here is an opportunity too good to be missed. Situated on a 877m2 corner section this three b...

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...

3 Elias Court, The Gardens NZ

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Sold

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3 Elias Court,The Gardens

Elegance, Spacious with Location Immaculately presented with elegance throughout. Walking int...

1 Tuakura Way, The Gardens NZ

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Sold

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Spacious with Bonus Location

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

1402 Glenbrook Road, Glenbrook Beach NZ

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

Sold

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

REINZ & TONY ALEXANDER REAL ESTATE SURVEY May 2022

ISSN: 2703-2825

Property Management Following on from last month's Newsletter we can confirm that the Changes under the Residential Tenancies (Healthy Homes Standards) Amendment Regulations 2022 came into force on 12 May 2022. The final form of the regulations can be found in the Residential Tenancies (Healthy Homes Standards) Amendment Regulations 2022 and can be found here. The changes will affect the heating, ventilation, and moisture ingress and drainage standards. Tenancy Services have notified that they are in the process of updating their heating assessment tool to reflect the new formula available for some properties. See here for MBIE's helpful table explaining these changes. 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: 021 303 864

MONTHLY PROPERTY REPORT. 1 2 M AY 2 0 2 2

Click here for the report

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

Jason Lovell Manager Home Ownership Products Kāinga Ora - Homes and Communities

Changes announced for First Home products The Government has announced changes to the First Home Loan and First Home Grant products administered by Kāinga Ora, enabling more New Zealanders to access support to achieve home ownership. The changes, which were announced on 19 May 2022 as part of Budget 2022, include house price cap increases and adjustments to the eligibility criteria. Please see below for a summary of the key points:

CHANGES TO THE FIRST HOME GRANT •

• • •

•

House price caps for the First Home Grant have increased in many parts of the country, to align with lower quartile estimated values for new and existing properties. You can view the new house price caps here. KiwiSaver requirements have been adjusted, to reduce the threshold amount of regular savings to access the grant. A new income cap category has been introduced for ‘individual buyers with dependents’, with an income cap of $150,000. Relocatable homes that have received a Code Compliance Certificate in the last 12 months can qualify as new properties – increasing the grant amount that applicants can receive. Members of eligible Progressive Home Ownership rent-to-buy schemes can access the new build grant.

CHANGES TO THE FIRST HOME LOAN •

•

House price caps have been removed entirely for First Home Loans (income caps and lender requirements still apply), to provide applicants with a greater choice of properties. A new income cap category has been introduced for ‘individual buyers with dependents’, with an income cap of $150,000.

The Government has also announced a change to the Kāinga Whenua loan scheme. The loan cap will be increased from $200,000 to $500,000, to provide more choice and opportunities for people building, relocating, or purchasing a home on whenua Māori. A deposit of 15 percent of every dollar borrowed over $200,000 is required. The changes to the First Home Grant take effect from 19 May 2022. The changes to the First Home Loan and Kāinga Whenua Loan are expected to take effect from 1 June 2022. Kāinga Ora - Homes and Communities are also contacting First Home Grant customers (those with pre-approved applications) to outline what the changes might mean for their situation. First Home Loan and Kāinga Whenua Loan customers will need to discuss their individual circumstances with a participating lender. As a result of the changes, we are already experiencing an increase in the number of First Home Grant applications. While we will endeavour to process applications as quickly as we can, a reminder of our timeframes - we require new applications four weeks before settlement, and those with existing pre-approvals to submit all relevant documents two weeks before settlement. For further information, please visit the Ministry of Housing and Urban Development website, which has supporting fact sheets with examples of households that could benefit from the changes. Your clients might also be interested in our interactive First Home Decision Tool, which can help determine which products they could be eligible for. Alternatively, please don’t hesitate to phone us on 0508 935 266. We look forward to supporting more New Zealanders on their journey to home ownership. Ngā mihi, Jason Lovell Manager Home Ownership Products Kāinga Ora - Homes and Communities

Meet your Agent Lina Rob Prior to entering the world of real estate, Lina had an impressive 20 year career in sales and marketing roles in the telecommunications and corporate marketing industries where her expertise in communication and negotiation always resulted in the delivery of superior customer service to her clients. Originally from Fiji, Lina epitomises energy, passion, integrity and hard work in everything she does.

DRURY

Lina Rob

0210 228 8521 lina.rob@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, Lina'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 Lina, 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.

MONTHLY HOUSE PRICE INDEX REPORT. Click here for the Report 1 2 M AY 2 0 2 2

Pointers for getting ready to buy a house We may often ask ourselves when is the best time to buy a house? There are many signs that can indicate a person’s readiness to purchase a home, but there are also others who might suggest the time is not right. A property is a large investment, and when you make that commitment, you want to ensure it is a financially sound decision. To achieve this, you need to be open and honest. By taking the time to look at the key indicators, you will be well placed to determine the right outcome for you.

This article will help explain what should stop you from considering a purchase at this time, but also what you should look for to show you are ready to buy. The signs that you are not ready to buy While you may be eager to move into your own home, you should consider all the external signals that may indicate you are not ready to buy just yet. The existence of these signs might be disheartening, however, they can save you from making a massive financial commitment at a time that is not right.

Sign three: You have only considered the sticker price The process of buying a home can be quite costly. Suppose you have not considered and saved for extra associated costs such as rates, insurance, utilities, renovations, maintenance, and even moving costs. In that case, you are not ready to buy a home just yet.

Sign one: You have a low credit score Borrowing money has become easy, and purchasing new items on high purchase has become very common. Depending on whether you keep up with the payments, it could impact your credit score, and a low credit score could show you are not ready to buy a home just yet. This is because people with a high credit score will Sign four: Be a realist about your financial goals receive a better interest rate on their mortgage and ensure you can meet them all and lower monthly payments. If committing to buying a property and entering into a mortgage means that financial goals in Sign two: You do not have enough cash for the other areas of your life suffer, it may not be the deposit best decision. It is important to consider potential When it comes to putting down money for the future factors. For example, do you plan on making deposit, ideally, you should be able to afford 20 any other large financial decisions in the year? Is percent. there a

Get the value of our experience today by booking a free property appraisal with your local real estate expert. ljhooker.co.nz/property-appraisal

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chance you will have to move away in the longterm, for work, for example? These are essential questions to be asking yourself when you are looking to determine if you are ready to purchase a property.

You can gain a thorough understanding of the market by talking to real estate agents and property managers. They can guide you through the process and the pros and cons of buying at certain times, in certain areas.

When are you ready to buy?

You can afford the upfront costs of buying There are many costs associated with buying real estate. There are initial costs such as your solicitor’s fees, and getting a building report. Then there are recurring costs like council rates. Do not forget that extra costs like moving fees and utility connections also need to be considered.

When asking yourself ‘am I financially ready to buy a house?’, look for the following signs that indicate your financial security, market awareness, and stability. You are realistic A lot of people dream big and set their hopes too high. This might mean that they look for homes well above their budget, which would result in a higher mortgage and less manageable repayments. If you are aware of your financial limitations, do your property search accordingly. You better position yourself to cope with the mortgage repayments and will reap the benefits of a carefully planned budget. Understand the market The market goes through periods of fluctuation. For example, at any given time, it may be a seller’s market or a buyer’s market. Having an understanding of the current market and local house prices will help you make a financially sound decision.

The extra costs of buying a home are often overlooked. That’s why, if you have considered these costs and have saved enough to cover them, you can likely afford the costs of homeownership. You have a secure and stable income A secure and stable job means that you can afford to make monthly mortgage repayments. Without regular income, you might be unable to maintain and keep on top of loan repayments, as well as daily expenses, which can add up fast in the wake of a large financial decision. Therefore, having a steady stream of predictable income is a key indicator that you are financially ready and equipped to buy a home and commit to regular mortgage repayments.

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

DRURY

1/233 Great South Road, Drury 09 294 7500

drury.ljhooker.co.nz