The Property Chronicle - July 22

The Property Chronicle When you know home is where the heart is

DRURY

July 2022

DRURY

CONTENTS Letter from Brent Worthington

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3

LJH Home Smart News Letter - Where to buy?

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4

Drury Listings

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6

Drury Feature Property

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7

Just Sold

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8

Rent Exchange – Property Management Newsletter

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9

REINZ -Monthly Property Report

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13

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14

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15

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REINZ - Monthly House Price Index & Data REINZ & Tony Alexander Survey & Extra The Insider – Loan Market Meet your Agent – Nav Johnson

Page 17

DRURY July 2022

Hi,

Annual house price growth holds ground.

Residential house prices across New Zealand continue to hold their ground, with the latest property data from the Real Estate Institute of New Zealand (REINZ) showing an annual median price increase of 4.2 percent in June.

The median residential property sales price in June was $850,000, up from $816,000 12 months earlier. However, the House Price Index shows prices across New Zealand were 5.4 percent lower in June than in March.

A report from ANZ Research notes the market is still on a “softening trajectory”, and the slowing appears relatively orderly.

“Smaller-than-expected price declines of late suggest that while buyers are well aware of the merits of patience right now (as prices fall), sellers are not all that desperate. While that may change a little over coming months, this certainly isn’t a Global-FinancialCrisis-style situation where unemployment is sharply, and very visibly, rising,” the report said.

One of the big changes in the property market is the number of homes sold. In June, 4,721 were sold across New Zealand, that’s down from 5,707 properties sold in May, and 7,629 in June 2021. This marked the fewest properties sold in a June month since 2010.

“Housing affordability remains an issue for many buyers on the market. Paired with tighter lending restrictions, higher interest rates and concerns over inflation, we are seeing hesitancy amongst buyers,” REINZ chief executive Jen Baird said.

Kiwibank senior economist Jeremy Couchman said the tumble in sales was due to very tight credit conditions and a lack of confidence in the market.

“Properties are taking longer to sell, with the median number of days to sell hovering around the long-run average of 39 days,” Couchman said.

“Because sales are few and far between, the total supply of listed property continues to trend higher according to realestate.co.nz. The total available supply of property has surged in 2022, up almost 90 percent on June last year.”

In July, the Reserve Bank of New Zealand lifted interest rates 50 basis points to 2.5 percent, and in its statement is said it expects the increase to mortgage interest rates to “assist to bring house prices more in line with sustainable levels”.

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

Kind Regards,

Brent Worthington Principal LJ Hooker Drury & Rent Exchange Property Management T 09 294 7500 M 0292 965 362

Where to buy - country or city?

There are no two ways about it, buying a house is a big decision. You can spend months compiling a list of all the things a potential home must have the process really is that absorbing.

Once you’ve locked down the features of the perfect house, then it’s time to think about location. At the end of the day, location can make or break a house. Location is not just what street the property is on, but also the suburb and region around New Zealand you decide to call home.

When it comes to property location there is no one size fits all. So before deciding on a house, there are some considerations to make note of.

Firstly, money plays a significant role, how much would a comparable property cost in a more rural versus a city setting. Secondly, is the house a reasonably located to schools, work and the shops. Finally, consider what it is you want from the property. Once the goals of the investment are determined, this will help you decide whether you belong in a city or the country.

Where should you buy?

Deciding whether to buy in a city or in the country might sound simple, but it’s not as straightforward as it may appear. Finding the right location can be a daunting prospect, and not just for first time investors.

One way to sort through the noise is to define the broader parameters for where you think you might like to invest.

Choosing between regional New Zealand and being near smaller towns or closer to big city centres is one way to narrow your search.

Deciding between the two are individual decisions which will be based on the goals of your property investment strategy as well as the level of risk you are comfortable with. However, deciding between the two will come down to your research.

People who have never lived in the country before can encounter pitfalls they never knew a property could have, so it is important to be well prepared. If you’re considering a rural property, do your research. This is because there are responsibilities that come with rural homes that simply don’t concern suburban or inner-city residents.

Some of these risks include: Presence of livestock diseases in the area Instances of plant and pest diseases Land usage rights that affect what you can use your property for Land rights that determine what outside parties can do to and on your property Legal requirements to control noxious weeds, animals and insects.

When looking at a rural property, ask questions.

There may be some instances where a vendor is not legally obligated to disclose the aforementioned things about a property. So to combat this, be prepared to ask questions. If you are aware of any issues before you buy, you have all the information needed to make the best decision possible about buying a rural property.

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

ljhooker.co.nz

It should be noted that investors of rural properties can reap huge rewards. House and land prices often cost much less for a lot more property than what house hunters in the city would pay. Of course, there is also the added bonus of enjoying life in the great outdoors when you buy in the country.

A numbers game With 84 percent of New Zealand's population living in urban areas, finding a home in town can be an easier bet. In large cities, there are always a lot of people and therefore you will usually see a steady flow of tenants. Cities offer more work opportunities covering a range of different sectors, and this is responsible for the greater demand for property. This results in a diverse economy, which lowers the investment risk.

However, city properties do have a pitfall - and they are often a lot more expensive. The median house price in Auckland sits at $1,125,000. For example, an investor could buy a property in Martinborough for exactly that amount. The property is recently renovated and features five bedrooms, one bathroom and is on 5.78ha of land.

At the end of the day, the fact remains that city properties are much more expensive than rural properties. So the decision between the two locations comes down to many factors. Firstly, what lifestyle you want your property to allow for.

Secondly, would you rather a bigger property in a rural location for less money, or a smaller property in a city location for a lot more money.

Knowing how far your money will get you in both city and rural locations is the first step to coming to terms with where you want to buy.

The broad differences Buying in either a rural or city area is going to provide buyers with two distinct lifestyles. Rural property owners will notice how peaceful and slow paced life can be. There really will be time to stop and take in the vast surroundings of mother nature. Whereas those who call the city home will notice that everything moves at a faster pace, there will always be a cafe to try, a show to see or a place to shop.

Where you buy will determine the lifestyle you will have. In the city there will always be the noise of others - be it sirens, the sound of traffic or just people living their lives. In a rural town, buyers will find that the majority of sounds come from the landscape, which in turn leads to a more peaceful feeling.

In the city, of course, there will be lots of access to just about anything one could think of entertainment venues, food stores and activities.

While in the country residents may find themselves spending more time at home, keeping busy on your property, or spending more time in the car in order to get to the shops.

There is no one size fits all answer to the country versus city debate and your selection will depend on many different variables. An LJ Hooker agent can assist you in making the best choice for your individual property needs.

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

LJ Hooker

DRURY Listings

91 Beatty Road, Pukekohe NZ

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uNuM1TED POTENTIAL WITH DEVELOPMENT LAND 2379m2

15th, Jul 2022

For Sale $2,850,000 View By Appointment

Andrew Fisher 027 542 5500 andrew.fisher@ljhooker.co.nz

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

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 ...

30 Franklyne Road, Otara NZ

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Development Bowler

Currently tenanted, this 985m2 site (more or less) is a developers dream. Zoned Residential (9D), re...

1 Luke Place, Otara NZ

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Unique Site in Coveted Precinct

* Prominent site * Prime Location * Huge development potential

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

For Sale Price By Negotiation View By Appointment

Andrew Fisher 027 542 5500 andrew.fisher@ljhooker.co.nz

For Sale By Negotiation View By Appointment

Andrew Fisher 027 542 5500 andrew.fisher@ljhooker.co.nz

For Sale By Negotiation View By Appointment

Lina Roban 021 022 88521 lina.rob@ljhooker.co.nz

For Sale Price By Negotiation View By Appointment

Amit Kolkur 0277 766 055 amit.kolkur@ljhooker.co.nz

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

FOR SALE Price by Negotiation

10 Regis Park Drive, Pukekohe Spacious Gem in Pukekohe

This immaculate and spacious home is perfect for families of all ages. Spread over two levels, the home features two double bedrooms and a bathroom downstairs, with another two doubles, bathroom and master with ensuite and walk-in wardrobe on the upper level. The fully open plan layout flows from the modern kitchen through to the dining and generous living areas, and from there through to a large deck with beautiful views away to the Bombay Hills. With a focus on family living, the home is spacious, light and airy. Double garage and off-street parking, double-glazing, heat pump and security system are just some of the features that make this home an exceptional opportunity. Two minutes' drive to New World Pukekohe and 10 minutes to the Bombay motorway mean this home is located for maximum convenience.

Call for a private viewing - the vendors are relocating and motivated to sell.

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FOR SALE Price by Negotiation

VIEW

Contact for viewings

CONTACT

Andrew Fisher 0275 425 500

LJ HOOKER DRURY

09 294 7500

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

LJ Hooker

15th, Jul 2022

8 Le Havre Pl, Takanini NZ

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LIVE, INVEST OR DEVELOP

This 9lm2 3-bedroom home is set on a 608m2 section zoned Mixed Housing Suburban. The property is loc...

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

Sold Andrew Fisher 027 542 5500 andrew.fisher@ljhooker.co.nz

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

Property Management On the following pages you will find our latest Property Management Newsletter.

Please don’t hesitate to contact Debbie Harrison who can ably assist you with any Property Management issues you may have or 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

Landlords work harder to find good tenants With a slowdown in the property sales market, many investors have decided to change the sticker on their properties from ‘for sale’ to ‘for rent’, and this has seen a rise of ‘accidental landlords’.

According to CoreLogic’s head of research, Nick Goodall, total listing numbers are up 77 percent on a year ago, and that has had an impact on the rise in rental stock.

“What that brings is a rise in rental supply, less upward pressure on rents, and potentially downward pressure on rental rates too,” he said.

With this shift in the market, a recent survey by economist Tony Alexandra found that landlords were finding it hard to find good tenants, and his findings from the survey suggested this would only get harder.

As house prices have fallen about six percent since their peak, Goodall said it was expected that there would be a flow of properties back into the rental market, although it happened a lot faster than predicted.

This change could be good news for tenants with more rentals to consider, as the country is about to tip into a renters’ market, Goodall said.

Property portals have seen proof of this change, with Trade Me seeing more properties listed to rent than ever before, and it also noted that national median rents had fallen one percent year-on-year.

Just like home sellers have had to adjust their expectations in this market, so do landlords.

Property managers are spending time digesting the current market to help attract and retain new tenants.

With the influx of new rentals, Goodall said it is hard to determine whether accidental landlords had bought new homes and failed to sell their old ones, or whether they were simply investors who wanted to divest at the peak of the market and failed to.

With the help of a LJ Hooker property manager, we will be able to do all the hard work for you in this market and find good tenants for your investment property.

ljhooker.co.nz

You will need to pay more leasing fees to your property manager each time it is leased to a new tenant It takes time to maintain and monitor an inventory list of all your items You are responsible for replacing or fixing items quickly if they are not working Whilst you do not need to take out contents insurance on the furniture and other items it is a good idea if anything is of value is in the property. This is an additional expense you need to consider.

When is it good to have an unfurnished property?

75 percent of renters are looking to sign a long term lease, they want to find a place they can call home.

This large group of renters mostly prefer an unfurnished place – or perhaps one with white goods, that they can fit out to suit their taste and style.

Pros of an unfurnished place: You are looking for long term lease with financial security

Your investment is not near the CBD so you are unlikely to attract executives You do not want the added expense of buying furniture and whitegoods You do not want to have to manage a furnishing inventory and worry about replacement of products if they do not work.

Challenge of an unfurnished place: Unlikely to attract higher paying transient or executive tenants Some tenants are willing to pay more for the convenience of moving into a fully furnished home and you'll miss out on this group.

Installing a few key items and large appliances can be a great way to tap into elements of both furnished and unfurnished rentals, particularly if you have the option to place items of furniture in storage if the tenant wants to bring their own.

Talk to your property manager about your individual property and whether they think you will do better with a furnished or unfurnished place. They know the market and the type of tenant your property will attract and how you should best position your property to appeal to them.

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

Furnished vs unfurnished rental We are often asked by our investors whether they should lease their property out furnished or unfurnished. There is no right or wrong answer, it comes down to who are your target tenants, how you want to use the property, the location and the current demand for properties in your area.

The different types of furnished properties Before we get into the pros and cons of furnished or unfurnished, let us look at the different ways a property is considered furnished: Fully furnished and equipped - a short term or holiday rental for instance falls into this category where everything including pots, pans, cutlery etc is provided Fully furnished – the rental property has all the furniture it needs Partly furnished – the rental has some furniture such as sofas, table and chairs White goods only – some or all of the white goods are provided Unfurnished – no furniture or appliances are provided, the tenants supply it all.

When is it good to have a furnished property?

Fully furnished rental properties are popular with tenants: Who are looking for a short term lease including executive and holiday rentals Tenants whose belongings are in transit or storage Who travel regularly for work and need a place close to their work to stay Tenants who do not own any furniture and do not want to buy any.

Letting a furnished property allows you to increase depreciation deductions It saves tenants money as they do not need to buy the furniture themselves If your property is located near the CBD and is nicely furnished it can attract higher paying professionals as it better suits their fly in, fly out lifestyle.

Challenges of a furnished property Whilst you will be able to charge higher rent for a fully furnished property you may find: You have a higher turnover rate with tenants only staying for 3-6 months, leaving you without rent while you find more tenants The costs to set up the property and style it is an additional expense you may not want Every 3 – 5 years you will need to update the furniture and styling which can be costly Your advertising costs will be higher as you will need to keep promoting the property due to it being vacant more often

Pros of a furnished property There are number of benefits of having a fully furnished rental. Some of these include: You can normally charge a premium for fully furnished properties

ljhooker.co.nz

MONTHLY PROPERTY REPORT. Click here to view report

© REINZ - Real Estate Institute of New Zealand Inc.

1 3 J U LY 2 0 2 2

MONTHLY HOUSE PRICE INDEX REPORT. 1 3 J U LY 2 0 2 2 Click here to view HOUSE PRICE INDEX report Click here to view JUNE DATA RELEASE report

© REINZ - Real Estate Institute of New Zealand Inc.

July 2022

REINZ & TONY ALEXANDER REAL ESTATE SURVEY Click here to view SURVEY - Buyers Standing Back Click here to view EXTRA - Some Fixed Rates Almost Peaked

© REINZ - Real Estate Institute of New Zealand

ISSN: 2703-2825

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Meet your Salesperson Nav Johnson With more than 17 years customer service experience, Nav's clients all echo the same sentiments about him. Punctual, honest, softly spoken, understanding, calming in difficult and stressful situations. All qualities and attributes essential in Nav's previous employment as a driving instructor for 6 years. Now, these same qualities and attributes are what Nav delivers for his clients in the world of Real Estate.

By his own admission, Nav's driven by the pleasure of assisting his clients to reach their goals while delivering a great experience and outcome. "I like to work with you and not for you".

Fluent in English, Hindi, Punjabi and Urdu, away from Real Estate Nav enjoys the pleasures of family time with his wife, 2 children, a cat and 4 budgies. He's also an ardent cricket fan, has played representative cricket abroad and is currently involved in coaching at the Howick Pakuranga Cricket Club.

Nav Johnson

0278 272 213

nav.johnson@ljhooker.co.nz drury@ljhooker.co.nz https:// drury.ljhooker.co.nz

DRURY

1/233 Great South Road, Drury 09 294 7500

drury.ljhooker.co.nz