THE BLACK BOOK | current to 21 September

Current to 21 September 2021

THE

BLACK BOOK.

ADDING VALUE TO YOUR PROPERTY T H E E A S Y WAY Image provided by trendzoutdoors.co.nz

Diana Clement For buyers aged 50-plus, getting a mortgage is about to become a mission impossible

10 and 10 in 10 Spend 10 minutes getting to know Hamish McKay

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PROPERTIES FOR SALE Kāinga Ora Auckland’s newest suburbs ‘designed for good living, not simply profit’

Covid-19 – Alert Levels Everything you need to know about Level 3, 4 and Property

We hope you and your loved ones are staying safe during this lockdown.

With the exception of physical viewings, we are still business as usual!

Here’s hoping Auckland makes it down to level 3 shortly.

Our team are here to assist you with virtual viewings and appraisals – just ask one of our agents how they can help!

Useful Links: Buying and Selling at Alert Level 4 Buying and Selling at Alert Level 3 Stay up to date with the Covid-19 Website Where to check locations of interest Stay safe, everyone.

Kia Kaha, New Zealand

Modern Mortgage Brokering. Old School Service.

Are you considering putting an offer on a property or looking at your next potential purchase? If so, has your bank or lender approved what level of debt you are looking at taking on?

Pre-approvals provide you an idea of your buying power and an approximate price range so you can purchase with confidence.

We strongly recommended reaching out regarding any of the below: Dylan Thomas Director & Financial Adviser

Pre-approvals Refinancing Buying your first home Purchasing another property Providing a second opinion on your current rates

WWW.SIXTUS.CO.NZ 021 051 6496 DYLAN@SIXTUS.CO.NZ GEORGIANA@SIXTUS.CO.NZ

R AY W H I T E N OW

Introducing Ray White Now, an insight to provide clarity to all our customers on what is happening in the market now.

If you are considering selling we explain how you can take advantage of the current conditions to achieve the best possible sales outcome.

The resilience of the New Zealand housing market has never been more evident than over the past three months. Most New Zealanders would be surprised at the level of activity and prices achieved, even though it has operated under restrictive operating conditions.

As Australasia’s largest real estate group, we are uniquely placed to provide our clients with the most relevant and timely information and data to assess current market activity and outlook. And as a family-owned and led business with 118 years of experience including operating through two world wars, the great depression and recessions, we know that we can deliver you the highest quality solutions in the current market.

C L I C K H E R E TO R E A D T H E L AT E S T I S S U E N OW

contents.

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Black Group Realty Ltd. Contents

Selling Principal

Heather Walton 021 432 167 heather.walton@raywhite.com

Inspire

Franchise Owner

Mark Bycroft 021 968 946 mark.bycroft@raywhite.com

Black Group Realty Year End Awards 2020 - 2021

Sales Manager

Jeff Tubman 0274 558 717 jeff.tubman@raywhite.com

Diana Clement

For buyers aged 50-plus, getting a mortgage is about to become a mission impossible

Trade Tested

Black Group Property Management.

Adding value to your property the easy way

General Manager

10 and 10 in 10 with Hamish McKay

Business Development

Kainga Ora

Auckland’s newest suburbs ‘designed for good living, not simply profit’

Properties for sale

Mac Bycroft 021 223 6893 mac.bycroft@raywhite.com

Josh Smith 021 235 8802 josh.smith@raywhite.com

Ray White Epsom Ray White Matakana & Omaha Black Group Realty Ltd. Licensed (REAA 2008)

The Black Book is subject to copyright in its entirety and the contents may not be reproduced in any form, either in whole or in part, without written permission.

Opinions expressed in The Black Book are those of the contributors and not necessarily those of Black Group Realty Ltd or Ray White Epsom. No responsibility is accepted for unsolicited material.

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inspire.

Year End Awards 2020-2021

Last month, Black Group Realty hosted their annual awards night at the Viaduct Yacht Club in Auckland CBD. With Matty McLean as MC, it was a special evening that celebrated the team and all their achievements, with no shortage of laughter, wine, and plenty of photos!

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Awards No.1 Salesperson Ross Hawkins

Chairman's Elite Heather Walton Richard Thode Ross Hawkins Ruoxi Wang

Elite Bill Myers Ken Choong Ryan Teece Sue Hatton

Premier

Hannah Zou Rae Zhang

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Awards Rising Star

Annie Mellor

Top Auction Lister Richard Thode

Customer Satisfaction Richard Thode

Outstanding Contribution Ryan Teece

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Trying to get funding for a house purchase when you’re 50-plus has become increasingly difficult.

Borrowers aged over 50 are finding it increasingly tough to get mortgages. And those as young as 50 could get a straight “no” from the bank for both new mortgages and top-ups, say mortgage brokers.

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THE BLACK BOOK.

FOR B U Y ERS AG E D 5 0 - P L U S, GE T T I N G A M ORTGAG E I S AB O U T TO BECOM E A M ISSI O N I M P O S S I B L E - Diana Clement Around one-fifth of people aged 65 and over are still paying mortgages, according to data from credit agency Centrix. That flies in the face of assumptions made that people pay off their mortgages before they retire.

“We’re not necessarily talking about your 70- and 80-year-old,” says mortgage adviser John Bolton, of Squirrel. The Credit Contracts and Consumer Finance Act 2003 (CCCFA) is part of the problem.

But ageism starts to kick into mortgage criteria around age 50.

The first to be slammed are often divorcees, says Jeff Royle, mortgage adviser at iLender. The couple may have an expensive home and no mortgage.

When they split, they need two mortgages and the bank says “no” because they can’t pay it off before the age of 65-70.

When doing their due diligence, banks are cautious about lending to borrowers who will retire before the loan is paid off. They assume that person will no longer be working.

Yet people aged 65 or 70 often still have good jobs paying healthy incomes and can afford that mortgage, says Stephanie Clare, chief executive of Age Concern. Banks don’t always see it that way.

Bolton says a classic example of the unfairness of the mortgage criteria for older borrowers was sitting on his desk when OneRoof called. The client was 71, had cancer, and needed to top up his mortgage to stay in the home. The bank had refused.

The house is valued at $2.5 million and the mortgage would only be $700,000, says Bolton. Income from three boarders would cover the payments for an interest-only mortgage.

The bank was concerned about how the borrower would pay the mortgage off and said no to interest only, demanding principal and interest payments, which pushed the repayments too high. “He doesn’t need to pay it off,” says Bolton. “He will sell the house (and repay the loan) when he’s ready.”

The client is now forced to either sell his beloved home or he must re-mortgage with a second tier lending at a cost of $14,000 more a year. “That’s $14,000 of real cost on an old fella. And it shouldn’t be happening.”

Such problems are only going to get worse for older clients when the CCCFA and its regulations become tougher on October 1 this year, requiring more due diligence on affordability and suitability. Banks will become even more sensitive to affordability on paper.

Yet between 2017 and 2020 the number of mortgage holders aged 65+ increased by 16%, says Keith McLaughlin, managing director of Centrix. The number of mortgages being paid by people aged 50-plus is 525,000, up slightly on last year and for 65+ is marginally down at 128,000, says McLaughlin. That reflects the larger sizes of mortgages in Auckland in particular.

The client was 71, had cancer, and needed to top up his mortgage to stay in the home. The bank had refused.

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Tips and tricks

Older clients who are going to succeed need a clear exit strategy Some of those people are raising money against their own homes to get their adult children on the property ladder, McLaughlin adds. It’s not necessarily that they can’t afford their homes.

Mortgage Managers adviser Stuart Wills says as well as the CCCFA changes, the introduction of debt-to-income ratios later this year could be another impediment to older borrowers, hitting the self-employed and those don’t have income from a day job. It’s not yet known how the registered banks will calculate income when that happens. “This may even force all banks to have a standard approach to this which means the customer has (fewer) real options as the points of difference is no longer a factor.”

Wills says a shorter term loan will be more acceptable to the bank than a 30-year one. That may get the borrower over the line.

Royle adds that older clients who are going to succeed need a clear exit strategy that shows how the loan will be paid down. He secured a 20-year mortgage for a 67-year-old borrower this month because the man had four rental properties, which would eventually be sold, and the capital used to pay off the loan. Buyers who want a 90% mortgage, however, over age 50 are probably out of luck, he adds.

Another way to look more appealing to the bank’s mortgage criteria is to pay down consumer debt.

Borrowers should be wary of regular expenses on their bank statements such as coffees, gym memberships and buy-now-pay-later deals, says Royle. The banks see these as expenses that reduce serviceability.

There is some good news for buyers aged over 50.

Some may find their affordability situation improves when their teenage children move out or start paying board, says Wills. What’s more, most people in the 50+ age bracket are first-home or second-chance buyers and can access KiwiSaver to buy.

Failing all, advisers can often get loans for the buyers from non-bank lenders, he says. n

For this, and more

OneRoof.co.nz content, click here

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Diana Clement is a freelance journalistwho writes on personal finance and property investing.

E-mail her at diana@wordfusion.com THE BLACK BOOK.

Bill Myers

Living locally, selling locally Top 3% of the Ray White Group

021 890 006 n bill.myers@raywhite.com n billmyers.co.nz

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THE BLACK BOOK.

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A D D I N G V A L U E T O Y O U R P R O P E R T Y

T H E E A S Y WAY Before you take a sledgehammer to the kitchen or spend hours deciding what shade of white your new bathroom tiles should be, bear in mind that one of the easiest ways to add value to your property is to start with the backyard.

First impressions really do count and an outdoor space which looks amazing and requires minimal maintenance will lift your property above the rest.

The general rule of thumb is that you get up to a six-fold return on any investment spent making your home’s exterior areas more appealing so it’s an easy win.

After over 10 years helping hundreds of thousands of kiwis make their backyards great, Trade Tested has everything you need when it comes to making a real splash with very little effort required.

“With everyone spending more time at home

and the property market running red hot, we’ve seen a massive increase in sales of products that help people make a statement in their backyard,” says Dan Albertsen, COO at Trade Tested.

“With summer just around the corner it should be top of mind for people looking to get the most value for money on any home improvements.”

Whether you’re planning to do some statement landscaping or create an amazing outdoor entertainment space, here are some easy ways to get significant gains while barely lifting a finger.

MAKE A GRAND ENTRANCE What better way to literally set your house apart from your neighbour’s than with a luxe-looking fence?

PVC fencing is a modern take on the classic Kiwi white picket fence. It looks smart and is guaranteed to impress potential buyers. PVC fencing is low maintenance, rot-free and best of all you’re not going to have to spend a whole weekend painting it!

Security is a huge consideration for house hunters these days too and a fence ticks this box from the outset.

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A B A C K YA R D S A N C T UA R Y W I T H LOA D S O F P OT E N T I A L Following changes in consent requirements, which came through late last year, backyard cabins have become even more popular. As long as they’re under the new 30m2 limit for consent exemptions, they are a straightforward but stunning upgrade for any property.

An extra room will automatically set your house apart from other similar size properties and they’re perfect if you’re after a she shed, a man cave, or simply a secluded spot to work from home.

Cabins offer amazing versatility when family and friends come to stay and, if they’re set up properly, first-time homeowners may be able to rent them out to supplement their mortgage payments.

Oh, and while you’re around the front of the house, don’t forget to make sure that the berm is nice and neat.

EASY OUTDOOR LIVING, W H AT E V E R T H E W E AT H E R Make use of your deck all year round and increase your liveable space by installing a designer louvre roof. People really do pay a premium for the ‘wow’ factor, so this is an easy triumph.

They’re simple to assemble and with premium features, such as hidden gutters, this is definitely one of the best value upgrades you can give your outdoor living area.

Louvres simply open to let the sunshine in or you can seal them up if bad weather hits, so you’ll never need to worry about rain ruining your family Christmas lunch again.

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THE BLACK BOOK.

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For this, and more

OneRoof.co.nz content, click here

HIT THE DECK, T H E PAT I O, O R T H E G A R D E N Having a beautiful outdoor living area can mean the difference between making or breaking a house sale.

It’s important to get the balance between dining and relaxing right so that potential buyers can visualise themselves lazing on the couch listening to the cricket - or hosting an elaborate summer barbecue with family and friends.

No matter how gorgeous your home’s interior is, if your outdoor furniture is letting the side down it will affect the overall impression house hunters walk away with. This means it’s well worth splashing out on a cool new outdoor dining suite, a couch or just some statement chairs.

And don’t forget the lighting. Festoons of twinkling bulbs quickly transform any outdoor space into something truly magical on a balmy summer evening.

G E T P L A N N I N G TO D AY So, kitchens and bathrooms are important but New Zealanders really value their outdoor living spaces. Whether you’re looking to list today - or planning for a summer sale, it’s time to get your backyard looking beautiful. It’s the easiest proven way to get buyers across the line and you’ll receive an excellent return on your money.

So if you’re looking to add value to your property without having to pick up a paint brush or knock out some walls head to Trade Tested. As New Zealand’s most popular online home improvement store, they’ve got everything you’ll need to add some ‘wow’ to your backyard. Best of all, they’ll even deliver it straight to your front door.

Of course, the downside to going with all these great ideas is that your surroundings will look so sensational you may not want to sell up after all! n THE BLACK BOOK.

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ten and ten, in ten with

Hamish McKay

Getting an agent to sit still can be difficult, so we bribe them with coffee to spend ten minutes with us. This week we pulled Hamish McKay from Ray White Epsom aside to ask him ten personal, and ten professional questions.

Personal What's your coffee order?

Triple shot with very hot milk. My well-travelled Grandfather made me flat whites in the '70s. So I was pleased we finally caught up with a coffee culture by the '90s!

What song is on repeat on your playlist at the moment?

High Wind in Jamaica by the one and only Graham Brazier. RIP you GOAT. Which App do you spend the most time on?

Sports APPS. No surprise there.

Where do you think New Zealand's best-kept secret is?

Makoura Lodge in the northern Manawatu, nestled beneath the seriously under-rated Ruahine Ranges.

Rustic and real. BGR retreat!?

How do you start each morning?

It varies. A bit of TV, but usually a coffee and read the Herald at La Vista Cafe. I try to have five minutes of interaction with my children and skull a litre of water. The water is the easy part.

If you could have coffee with anyone in the world, who would it be?

Reece Witherspoon. As I say to clients, “you want that price and I want Reece Witherspoon to return my calls”

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THE BLACK BOOK.

If you were to win a reality TV show, which one would you have the best shot at winning?

Love Island!? Yeah, nah, probably not!. I think I’d win Celebrity Treasure Island. My alter ego loves a dose of collaborative skullduggery. I mean how else did I survive 20 years in TV!?!

It's date night - where are you making a reservation for dinner?

I like a bit of liveliness, so HQ for me, but probably Soul.

What was the last book you read?

Red Notice. Intriguing Russian backdrop to an American businessman who becomes Putin’s #1 enemy. True story.

What's your greatest fear?

Free falling. Bungy? Not a chance!

Where in the world do you wish you could head to for a holiday?

The Old Port in Marseilles. I went there a number of times in my TV days. I could sit and watch the world go by all day. Boats have been coming into that port for well over 2000 years.

Professional What was your first job?

Sheep shearer.

What did you want to be when you grew up?

Rugby commentator and TV Sports Presenter. Made it!

What do you wish you’d known before you started out in your career?

There’s lots I’m pleased I didn’t, otherwise I might not be here with BGR!

Tell us the thing you love the most about working in real estate?

I’m not sure I’ve ever loved Real Estate. But since arriving at BGR that’s changing!!! But overall it’s the personal interaction, winning trust and then delivering on that.

Ultimately I’m responsible for my success. Or otherwise.

Unlike the media world where the chop can come even when you’re on top of your game. In my case, thank goodness it did, as it opened up a whole new world.

Tell us someone who inspires you?

There is no single answer to this. But the one that comes to mind is my first Radio Newsroom boss Sue Foley. An absolute go-getter, invent the parachute after you’ve jumped type. Sue is Director of External Relations at Westpac. Not bad for a single Mum who started in communications by reporting track-work times from the Bulls Racecourse. Note she still lives in Bulls!

Give us some advice to pass on to someone thinking about joining the industry?

Focus on those who are clearly good at what they do and observe, observe and then observe some more. Select carefully who you take advice from.

On a global stage, it’s musician Jeff Lynne. The most complete artist, singer, songwriter, musician. If you want the hairs to stand up on the back of your neck, find ELO at Wembley Stadium performing Telephone Line

What would you consider to be your greatest achievement?

Commentating two Rugby World Cup finals was the icing on the boyhood dreams cake. There was no pathway and plenty of blockers. I just sewed a seed and never stopped believing.

What motivates you?

The desire to deliver for my family. They’re my why.

Share with us your property must-have?

Room for my children to come and go as they please.

And bidets in every bathroom.

What do you hope you’ve achieved in five year’s time?

My great friend Ella knows this! Let’s say the words Chairman and elite come to mind. But I intend to keep enjoying the journey, feeling the grass between my toes, and licking the odd ice cream. Although I can’t do that before 11am, otherwise I’ll be in trouble with Heather Walton. But that’s another story! n

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AUCK LA ND’S N E W E S T S U B U R BS ‘ DES I G NED F O R GO O D L I VI N G, NOT S I M P LY P RO F I T ’

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THE BLACK BOOK.

Move over dreary suburbs. More desirable master-planned communities like Hobsonville are on their way all over Auckland and further afield.

Few Aucklanders could have missed the mass removal of 1930s-style standalone State homes from suburbs all over the Tāmaki Makaurau.

They’re being replaced with large-scale regeneration and development programmes in suburbs such as Northcote, Roskill South, Ōwairaka, Hobsonville, Tamaki and Mangere, replacing vast swathes of old, cold, run-down State homes.

Kāinga Ora’s master-planned suburbs are the largest urban regeneration ever undertaken in New Zealand and isn’t about packing as many people in per square metre as possible. The master plan is to create a new suburb for life on underutilised land.

New communities springing up in old suburbs, such as this one in Northcote on Auckland’s North Shore

The new comm homes and imp public spaces an thousands of ho than just housin been planned fr attention paid t might see as ex

Bill McKay, seni and Planning at Auckland, comp approach of gov planned commu developed for p government’s fu doing it? It’s to communities,” s developers’ fun it? That’s to mak

For this, and more

OneRoof.co.nz content, click here

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THE BLACK BOOK. THE BLACK BOOK.

Diana Clement is a freelance journalistwho writes on personal finance and property investing.

E-mail her at diana@wordfusion.com

munities will offer warm, dry proved amenities, better nd infrastructure for many ouseholds. They’re more ng developments, having rom the top down with to detail that developers xpensive annoyances.

Unlike the old days when new suburbs were designed with mostly young families in mind, master-planned communities 2020s style are a suburb for life, with a range of housing for young, old, public and private. They’re designed for good living, not simply profit. In short a suburb for life with lifestyle choices.

“We’re looking at increasing the population, which requires additional design requirements and guidance to make sure that we’re doing density well,” says Barber. Some of the most obvious changes from old-style developments are in the public spaces and realm, says Barber.

ior lecturer in Architecture t the University of pares the different vernment-led masterunities with those profit. “What is the undamental reason for house people and build says McKay. “What is [the] ndamental reason for doing ke money.”

The point of master planning is that it makes a suburb an awesome place to live, says Boyd Barber, senior urban designer at Kāinga Ora. Working on the design of a master-planned community allows Barber to consider every aspect of what goes into a successful neighbourhood. “By masterplanning a community we can (look) 10 years ahead. What this community will look like in 10 years (to) make sure that it really works well.

The government housing agency may be behind the communities, but they’re not just for State tenants. Each community has mixed tenure. The Northcote master plan, for example, includes apartments, terrace homes and standalone, with around one third being State tenants and the other two thirds private homes/ rentals.

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In Northcote, the master plan replaces 370 old State homes with 1500 new homes on the same land. The technical design goes well beyond the home and includes three new pocket parks as well as renovating the four existing parks to become more usable and fun. The design includes leafy parkways built for the community to walk or cycle on. The streets are being renewed, upgraded, and made safer. And with such a large development, public transport can be rerouted to where it’s needed.

The diversity that comes with increased density and mixing public with private tenure makes it more enjoyable to live in, says Barber.

According to McKay, people shouldn’t turn their noses up at living beside State tenants.

He bought a house in a mixed-use street in Ponsonby and his State-tenant neighbours are valued members of the community.

Key to master planning is the idea of “mixed use”, he says. Older planned suburbs like Manurewa were, when developed in the 1960s, designed to be purely residential. You had to get in a bus, car or taxi to go to the shops, says McKay. In a master-planned community, you can expect to find the amenities you need around the corner.

When moving into developer-led suburbs, you have to think through how far away amenities such as schools, bus stops and chemists are from your home, says McKay. “Whereas the public master plans are thinking through all of those things. It’s like living in a real suburb,” he says.

Density is growing on New Zealanders. While some may turn their noses up at medium density housing, these new homes are better designed and make perfect sense for different generations, says Barber. First-home buyers might enjoy the view of the tui in trees from their third-floor home or, if you’re slightly older, that you know having a ground floor apartment could be a really good way to maintain your independence.

It makes sense, says Barber, to use Kāinga Ora’s landholdings more efficiently. “This is a really unique opportunity to refresh neighbourhoods, and change the perception of these suburbs.

They’re really well located and can be really, really amazing.” n

- This content was created in partnership with Kāinga Ora 28 28 ||

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