The Property Chronicle June 2022

THE PROPERTY CHRONICLE

DRURY

JUNE 2022

DRURY

CONTENTS Letter from Brent Worthington

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3

Drury Feature Listing

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4

Drury Listings

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5

Preparing your home for a winter sale

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6

Rent Exchange – Property Management Newsletter

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8

REINZ Monthly Property Report

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12

REINZ Residential Statistics Report

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13

REINZ Monthly House Price Index Report

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14

LJ Hooker – Getting ready to buy a house

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15

LJ Hooker – Five top tips

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17

The Insider – Loan Market

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18

Meet your Agent – Amit Kolkur

Page 19

DRURY June 2022

Buyer activity slows, median house price growth recedes Economic conditions are putting noticeable pressure on the New Zealand property market, with sales taking longer to complete, fewer active buyers and reduced activity pushing up prices, according to the latest Real Estate Institute of New Zealand figures.

The annual median price increase for residential property across New Zealand has slowed, up 2.4 percent from May 2021 when the median price was $820,000. In May 2022, the median price was $840,000, which was a month-on-month decrease of four percent from April, when the median price was $875,000.

Auckland was the only region to show a reduction in annual median prices, down 2.2 percent. This is the first time the annual median price has dropped in Auckland since October 2019. The Super City also saw reductions month-on-month, with a median price drop of 3.9 percent.

Hawke’s Bay is the other notable region, which has seen no growth in its annual median price which is the same as May 2021 at $730,000.

Apart from the West Coast, which achieved a new median price record for May, median prices in the regions have come off their peak, REINZ chief executive Jen Baird said.

“Over the course of 2021, house prices soared, largely due to supply not being able to meet demand, supported by historically low interest rates and access to capital,” she said.

“With further increases to interest rates to counter inflation expected and global economic uncertainty and supply chain disruption caused by the conflict in Ukraine, we may see market activity settle this winter at its new, slightly slower, pace.”

Kiwibank chief economist Jarrod Kerr said while economic conditions have slowed the market, policy changes have played a part in turning many away from housing.

“Policy changes such as new tax rules for investors, CCCFA changes to bank due diligence requirements, and tighter deposit requirements,” he said. “We continue to forecast that house prices will fall 10-11 percent by the end of this year before slowly getting up off the canvas from late 2023.”

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

1 Luke Place, Otara

Unique Site in Coveted Precinct This prime development offering within this increasingly popular suburb of Auckland provides developers an excellent opportunity to deliver an outstanding project.

Zoned Residential (9D) Residential-Terrace Housing & Apartment Building Zone, concept plans have already been completed for a 23 unit, three storey apartment complex.

Key features include: • High profile corner site of 1,067m2 (more or less) • Dual street frontage.

• Residential growth zone • Excellent location.

Close to the heart of Otara township, a leisurely 200 metre stroll to Sir Edmund Hillary Collegiate and not much further to Ngati Otara Park and the Manukau Institute of Technology.

Currently tenanted on a fixed term tenancy due to expire in April 2023. This immaculate property offers an outstanding opportunity for astute investors to acquire a freehold property in a central location.

5

2

FOR SALE

By Negotiation

VIEW

By Appointment Only

CONTACT

Amit Kolkur 0277 766 055 Nav Johnson 0278 272 213

LJ HOOKER DRURY

09 294 7500

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

LJ Hooker

Current Listings 27th, Jun 2022

91 Beatty Road, Pukekohe NZ

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uNuM1TED POTENTIAL WITH DEVELOPMENT LAND 2379m2

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 Saturday July 2nd, 01:00PM -

01:45PM, Sunday July 3rd, 01:00PM 01:45PM 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

Jessica Green 021 167 8193 jessica.green@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

Preparing your home for a winter sale Although the weather is not usually at its best during the colder months, people search for property all year round. In fact, selling your home in winter can even have its own benefits.

In this blog post, we have put together six top tips for selling your home during the winter months to make sure that you get a hot price while the weather is cold.

1. Ensure your home is warm and cosy

Traditionally spring is the season when there is a burst of activity on the housing market, but with less competition in winter it makes the season a prime opportunity to get your home seen. There are often still just as many buyers on the market but in winter there are fewer houses to pick from.

To make a good first impression, start by making your home cosier. After all, no matter the season, selling a home is all about appealing to people emotions - you want your prospective buyers to fall in love with your property. Make sure it is warm when people come to inspect it. Turn the heaters on, and if you have a fireplace, make sure you have a fire burning (or turn it on if it is gas).

Add a warm touch to each of your rooms in the way of adding blankets, such as drapping a throw rug over the back of a sofa, or put a coloured duvet cover at the end of the beds to help create a warm and welcoming feel. Another idea is to change your cushion covers to a colour more suited to winter. This can help change the whole feel of a room and make it cosier for your buyers.

2. Clean, clean, clean No one likes to walk into a messy home, and in winter it can be challenging to keep a home clean

Make sure all your dirty family gear is hidden away so people inspecting your property cannot see it.

And, of course, clear away any fallen leaves and keep your garden tidy, it helps set the right tone.

3. Don’t forget your outdoor space Just because it is colder outside does not mean you should forget about the great outdoors. Spend some time giving your garden a simple makeover.

This could include defining the edge of your flower beds with timber borders or lining them with small shrubs or grasses. You could also add a few larger plants as focal points, but ensure you keep them in proportion to the size of your garden. As a finishing touch, add some flowering plants as it will make your home much more welcoming.

You want to show your buyers how they could use your home's outdoor space all-year round. How about adding a fire pit or heaters, or even a pizza oven to show how easy it is to entertain. Add some warm winter throws over your outside chairs to help bring colour to the area and make it more appealing. Buyers love more living options, and the outside is an ideal extra space.

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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4. Light is just as important as heat If it is cold and grey outside, the last thing a buyer wants is to walk into a home that is full of shadows. Light will be just as important to buyers as the warmth and cosiness of your home during winter. Maximise the daylight in the home, natural light is an incredibly attractive prospect for any house hunter. Keeping the lights on during open homes is also essential in winter.

Shuffling furniture and perhaps even widening windows can give you this effect if you have the time and budget for it. Make sure it is done right with the appropriate glazing or curtains or you might end up dealing with a glare that can put buyers off.

5. Check your timing By checking weekly auction results, and in particular, the expected number of homes for sale on any given weekend, you can pick the right timing for a quick sale. Winter generally means less supply on the market, which means buyers have to compete more furiously to secure a home.

By doing diligent research and putting your home up for auction on a weekend when there is not much activity, you could funnel many buyers your way, who then have to push further and pay more to outdo the competition - leaving you with a handy bottom line.

6. Emphasis your home's strengths When your house is ideal for winter living, especially cosy nights, make sure you show off these strengths. Host your open home during the evening, when people can experience the warmth and comfort of your property first-hand.

During the day, it is not as practical to have heaters going and living areas set up for relaxation. Buyers might even think you are wasteful with your power.

Cosy indoor areas, elegant drapes and ornate lighting fixtures can all become highly appealing visual elements of the home when your setting is a cold winter evening. People will be able to instantly imagine themselves relaxing at home.

Perhaps they will be willing to part with a little extra to make sure they get your favour.

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

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

Included in this month’s Newsletter is an article about the 5 Point Plan created by the Property Investors Federation. The Property Investors Federation say they will fix the rental property crises.

Also included are tips on how to make your rental property stand out. As mentioned in the article, hiring a Property Manager can save you a lot of time and effort in managing your rental property.

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

Property Investors Federation strategise plan to fix rental property crisis A five-point plan has been created by the Property Investors Federation which it says will fix the rental property crisis.

The plan includes harsher penalties for bad tenants, returning of the bright-lines test to two years, bringing back the right for landlords to issue no fault 90-day notices and making mortgage interest tax deductible.

The federation’s vice president Peter Lewis said no landlord wakes up wanting to evict their tenants for the sake of it.

"Obviously, if you get rid of a tenant, then you are losing money on that property ... The problem is that if you go and say to them you have to leave because of this particular thing that you're doing, human nature makes you say 'oh we won't do that any more, we'll reform, we'll do better'," Lewis said.

"But most people revert and we have seen this publicised recently with a lot of the Housing New Zealand tenants."

A public list of tenants who owed money after their tenancy ends, damaged the property or disturbed neighbours was also proposed in the plan.

Lewis believed the cost of borrowing was putting off potential investors, too, meaning fewer rentals.

"A lot of that price increase is being caused by these taxation changes that are badly affecting a lot of residential landlords.

"And thus the first reaction of course is to put the rent up as far and as fast as possible."

The proposed changes were intended to help both landlords and tenants, Lewis said.

"I'm a landlord and I have been a landlord for 31 years. My ideal is to have happy tenants who I get on well with, co-operate with and it's a mutually beneficial arrangement.

"I provide quality accommodation for them, I'm responsive to their requests and their needs and in return, they pay me a reasonable market rent, just like any other business."

Renters United have labelled this proposal as a “very old school way of thinking”.

"What we're seeing here is a plan for people to continue investing in property so they can extract as much money as they want out of their renters rather than something that actually upholds the human rights that renters have and comes to a solution that's actually better for anyone that isn't just those that own thousands of properties," Renters United spokesperson Geordie Rogers said.

Another of the federation's proposes is an expansion to allow landlords to request a 12 week bond.

"The idea that they'd be charging $7000 for the median rent on a bond is ridiculous to me, especially when they're in a position where they do have the capital to put that behind a loan to repair the property or even to pay for insurance - which a lot of us renters are already paying for on behalf of these investors,” Rogers said.

ljhooker.co.nz

Make your rental property stand out With new rental developments being completed, and a range of variety in the types of rental properties, landlords need to make their homes stand out from the rest.

It is always going to be important to make sure your property is appealing above all else. At the end of the day, there are many little things that add up to create the means for successful tenants to move in.

The following will help guide you by giving you options to make your rental property stand out and the things you can do to prepare your property for prospective renters.

Show off the home’s best features Identify what makes your property unique. Does it have large bay windows? Is it the landscaped garden? Are the rooms bright? Or does it have an eye-catching front door? Whatever it is, make sure you draw attention to it in your listing.

Most prospective tenants will search online listings first, which is where high quality photos are key. Professional photos will help grab their attention and heighten their appeal in your rental property. By staging your property, you will make it look even more attractive to renters.

You want to make sure you cover every angle of a room. If your budget allows, make your property look good for a day, with staged furniture and props, and snap some great photos showcasing the best features. This can give you a competitive edge and a wider audience reach, especially for out-of-town renters.

There are some simple ways you can improve curb appeal.

First of all, does your property look inviting?

Take into account the front garden, doorstep and exterior. Is there anything you can do to refresh these areas to make it look more attractive from the street? Perhaps some basic landscaping or replacing broken fence palings? If you own a unit, have a look at the condition of common areas such as the stairwell and foyer. It’s a good idea to request repairs or updates where they might be needed.

Next, set a high standard for cleanliness.

While you want your property to look good from the outside, the inside matters even more! Consider having carpets professionally steam cleaned and wash any dirt or marks off the walls and cabinetry.

Quality tenants are attracted to rental properties that are clean, safe and clearly well cared-for.

First impressions always matter Street appeal is vital, and it can have a real impact on rental decisions. Renters are more willing to pay top price for a well-presented property. So, if you are hoping to make your rental stand out, you should focus on making the best impression with it.

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Small fixes go a long way Fixing whatever is broken prior to listing your property will give you a better chance of attracting more people to it.

Tend to small cosmetic fixes such as refreshing paint where needed, fixing leaky faucets, replacing old light fixtures and filling up minor cracks in walls. Pay attention to the exterior, too.

Is the front gate squeaky? Does the porch light work? Are there any overhanging branches obscuring the garden path that need pruning back?

Small repairs here and there can save your tenants any frustration down the line. It also prevents any bigger, more costly repairs for you in the future.

Detailed listings When it comes to the property write-up, make sure you give it an accurate description. How many rooms are there? What is the storage space like? What is the size of the property?

What is the rental cost? What amenities are nearby? Do you allow pets? If you have recently renovated or updated appliances, make it known.

Get as specific as you can. This will help to paint a clear picture of your property and give potential renters a better idea of what to expect. Do not forget to highlight your property’s unique selling point, either. Get creative with your listing and make it easy for potential tenants to visualise living in the property. If, for example, it boasts a balcony, write about how tenants can enjoy summer evenings watching the sunset on their balcony.

Some other ways to give your rental property listing an advantage include advertising on social media or enticing tenants with add-ons such as free wi-fi, security systems or an in-unit washer and dryer.

Hire a property manager A property manager can take care of a rental property on your behalf. They can assist you with all of the above as well as provide advice on how to increase your property’s value along with screening potential tenants.

One of the biggest benefits of hiring a property manager is that they save you a lot of time and effort in the managing and staging of your rental property. They will also give you a greater chance of attracting and securing high-quality tenants.

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

MONTHLY PROPERTY REPORT. 15 JUNE 2022

© REINZ - Real Estate Institute of New Zealand Inc.

Click here for the Report

MONTHLY HOUSE PRICE INDEX REPORT. Click here for the Report 15 JUNE 2022

© REINZ - Real Estate Institute of New Zealand Inc.

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

DRURY

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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.

DRURY

ljhooker.co.nz

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.

Housing affordability remains a hot topic for home buyers as New Zealand’s inflation rate hit a thirty-year high in the March quarter.

While there have been some positive signs that property prices are cooling down, construction costs on new builds and renovations have skyrocketed.

Here are some important headlines to keep you up to date - you can check out the articles by clicking the link: •

Inflation spike feeds rumours – Click here

•

Positive signs emerging for buyers - Click here

•

Property affordability splits Kiwi society - Click here

It’s been a big month for the economy with even more major changes ahead.

If you’re curious about how any of this may impact your property finance, or you’re ready to purchase a new property, don’t hesitate to reach out.

Meet your Agent Amit Kolkur “There are no shortcuts to success. I truly believe that my work experience, extensive knowledge and being sincere, hard-working and proactive will lead to my success in real estate." Amit Kolkur.

Amit is a very humble person who possesses excellent interpersonal skills, considers himself a bit of a social butterfly and loves meeting and talking to people. Amit always does what he says he will so call or email him today, have a chat and hatch a plan.

Amit Kolkur

0277 766 055 amit.kolkur@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, Amit'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 Amit, helping buyers into their first home is both exciting and satisfying.

DRURY

1/233 Great South Road, Drury 09 294 7500

drury.ljhooker.co.nz