THE BLACK BOOK | current to 06 April 2021

Current to 06 April 2021

THE

BLACK BOOK.

10

WAYS T O AD VALUE T D YOUR H O OME

Ashley Church:

10 and 10 in 10

Going, Going... Not Gone

The government’s housing bomb

Spend 10 minutes with Bill Myers

A look at the popular selling method

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

Black Group Realty Ltd. Selling Principal

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

Franchise Owner

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

hello.

Welcome to another edition of The Black Book.

In a time where auctions are king, it’s no surprise that a majority of property owners are turning to the method when it comes time to sell their properties. How many times have you heard, ‘the best properties go to auction’, or ‘it will sell under the hammer’? Nothing rings more true than that over the past few months. In this issue of The Black Book, Jeff Tubman discusses the current auction landscape and why it’s the way to go in any market.

A question we are often asked is, ‘where should I spend money before I sell?’. This of course is dependant on so many things, and the agent you choose to engage is the one to best advise you - another reason to engage one early on. Over on page 18, we look at the top 10 ways to add value to your home.

There are plenty of new listings for you to discover, starting on page 22. There really is something for everyone. If you don’t find what you’re looking for, get in touch with one of the Black Group agents - we are based all over Auckland and would be so happy to help you find your next home.

Until next time, Heather Walton and Mark Bycroft Ray White Epsom, Ray White Takapuna and Ray White Matakana & Omaha Black Group Realty Limited Licensed (REAA 2008)

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Group General Manager Jacki Lane 027 556 7042 jacki.lane@raywhite.com

Sales Manager

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

Black Group Property Management.

General Manager

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

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

Ray White Epsom Ray White Matakana & Omaha Ray White Takapuna 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.

M IS S I NG O UT?

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Liam Bratton talks pre-approval

Get ready to sell post lockdown

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Going, Going... Not Gone 10 and 10 in 10 The Government’s Housing Bomb Ten Ways To Add Value To Your Home Properties For Sale

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Get every issue, direct to your inbox

Issue One | 22 April 2020

THE

BLACK BOOK. ou ie launch ’

‘Blackr T

60

Bold and Breathtaking 39 Spencer Street, Remuera

pages of properties at your fingertips

How high can you go?

Bite Size

Locked In, Not Out

Liam Bratton talks pre-approval

Get ready to sell post lockdown

Our first online auction success

For most, their Black Book is a tightly guarded secret. In contrast, we want ours to advise, inspire, or just give you something nice to flick through on a Sunday morning with your coffee.

C L IC K H E

RE TO

SUBSCRI

BE

THE BLACK BOOK.

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inspire.

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Going, Going…

not GONE!

To auction or not to auction? It’s a big choice when it comes to figuring out how to sell your home, but as expert auctioneer Jeff Tubman says, they’re a sure-fire way for all parties to win.

There’s nothing quite like the rush of an auction.

“It’s really a big thrill,” smiles Ray White auctioneer Jeff Tubman.

“You’re in the middle of one of the biggest moments in people’s lives – you’re right there in the transaction and feeling all of the emotion. Both buying and selling a home is a huge moment, so the energy around it all… it’s quite addictive actually!”

Jeff has been calling auctions for Ray White for almost a decade, with years and years of selling before that. And he admits he hasn’t seen a housing market quite like the one we’re in at the moment – which is why he reckons that auctions are just the ticket, for both buyers and sellers alike.

“It suits both parties at the moment,” Jeff explains.

“Vendors know that their property is being well exposed to the market, so it means that we’re having the reach with those buyers, no matter where they are. And as for buyers, look they’re probably not quite as keen! But an advantage is for them is that it’s a very apparent process – they know the vendor is serious about selling, and they know that if they secure that property on the day, it’s done and their house buying journey is over.”

Is an environment Jeff loves to be amongst, whether he’s banging the gavel down on a multi-million dollar estate or a modest apartment.

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‘It doesn’t matter whether it’s a brick and tile unit or mansion on the Northern slopes, the emotion and the thrill of people is just the same and that’s the lovely bit of it. It’s a very pivotal moment for people - it’s often the largest financial transaction they’ll ever been involved with. It’s a huge privilege to be there to help with it.”

And with the market still running red hot, Jeff’s presiding over the most auctions he’s ever been a part of – and he and Ray White have the successful numbers to back it up, with an impressive rate of success – in fact it’s more than 90% - at auction this year.

“It’s gone from probably late 70s to the 90s, it’s probably as high as it’s ever been, regardless of Covid restrictions,” Jeff nods.

Ah yes, Covid-19 – the bug bear of pretty much every business in the world right now – although thanks to great technology and a bit of old fashioned Kiwi can-do attitude, Jeff and the team at Ray White are now old pros at online auctions and have been since the first lockdown in March 2020.

“Vendors know that their property is being well exposed to the market.”

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“Auctions have had some extra publicity lately with some spectacular results, but essentially it’s a format that just works in every market.”

“It’s hard to believe that was a year ago,” he says.

“We’ve been able to operate purely online during the lockdowns, with this last Auckland lockdown being particularly seamless - we had eight auctions that week and we didn’t drop or cancel any of them.

In fact, we had some really outstanding results from that. It’s very direct. It helps that people are so much more comfortable with Zoom and video calls now, so it was very much a business-as-usual affair.”

It was a new frontier for Jeff, who had never fronted an online auction before the Covid-19 era.

“Although I have to say, I still love the auctions I do that are actually at the property. Being there and seeing people know that this house could be theirs, that just sometimes gives it a real element of pleasure for everyone – the buyers meet the sellers, and you ultimately realise it’s more about the people than the property.”

As well as being an old hat at the auction game professionally, Jeff knows himself just how emotional auctions can be, having auctioned his own home.

“Oh I do understand how nerve-wracking it can be, for both parties! And it is, no question about that. Part of my role is to be there to talk people through the process and talk people through it, and be part of the team to make sure that yes, it’s nervewracking, but not terrifying. I do practice what I preach!” he says with a laugh.

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And while he’s auctioned off his fair share of swoonworthy homes, Jeff admits he has a favourite type of auction – seeing first home buyers finally step onto the property ladder.

“Seeing that joy…it’s a wonderful thing to be involved with. It’s really being part of that journey – it sounds very cliched, but it’s true.

“Auctions have had some extra publicity lately with some spectacular results, but essentially it’s a format that just works in every market. It’s the oldest form of selling, it’s been here forever and it finds true value, whether if the market is pumping along or if it’s a bit more even.

“It’s the best way for all parties to find that true market value.” n

“I was happy in my old office.

I’m happy in this office. The difference is my performance and my results.”

- Ryan Teece

Ray White Epsom

Black Group has a proven track record of giving salespeople the right tools to achieve the best from their business. Health, wealth, work-life balance and the occasional award?

Heather Walton Selling Principal 021 432 167

Mark Bycroft Franchise Owner 021 968 946

Jeff Tubman Sales Manager 0274 958 717

Ray White Epsom 349a Manukau Road, Epsom 09 638 8640 | epsom.nz@raywhite.com www.rwepsom.co.nz Ray White Takapuna 87 Hurstmere Road, Takapuna 09 488 9191 | takapuna.nz@raywhite.com www.rwtakapuna.co.nz Ray White Matakana & Omaha 44 Matakana Valley Road, Matakana 09 283 3656 | matakanaomaha.nz@raywhite.com www.rwmatakana.co.nz Black Group Realty Ltd Licensed REAA 2008

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ten and ten, in ten with Bill Myers

Getting an agent to sit still can be difficult, so we bribe them with coffee to spend 10 minutes with us. This week we pulled Bill Myers from Ray White Epsom aside to ask him ten personal, and ten professional questions.

Personal

What’s your coffee order?

Double shot flat white in a tulip cup.

Which App do you spend the most time on? realestate.co.nz Where do you think New Zealand’s bestkept secret is?

Mueller Hut - Mt Cook so accessible and beautiful How do you start each morning?

30 minutes of quiet and purposeful planning of the day If you could have coffee with anyone in the world, who would it be?

My elderly mum, I haven’t seen her since Covid

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THE BLACK BOOK.

Give us a TV show recommendation to binge watch on a rainy day?

Frank Lloyd Wright- Man Who Built America What’s your go-to ice cream flavour?

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

The Amazing Race with my wife Maree What is your greatest fear?

Snakes! That’s one of the reasons I love NZ Where in the world do you wish you could head to for a holiday?

California to see my family

Professional

What was your first job?

Newspaper boy What did you want to be when you grew up?

Real Estate Agent!

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

I get to do it everyday!!

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

Connect with someone who is really making a difference as an agent and start an apprenticeship with them.

What motivates you?

We are presented with a new day everyday to be the best father, partner and real estate agent we can be.

Share with us your property must-have?

Mid century architecture and furniture. Take me back to 1972!

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

That I don’t have to invent everything. Keep it simple.

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

Continuing to share wonderful and fun times with family and friends watching us all grow and come together in celebration often.

Tell us someone who inspires you?

Anyone following their dream and at the top of their game.

What separates you from other agents?

Really listening and taking on board the important messages and implementing solutions and objectives using a broad range of skills.

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N O I N I P O

Other than the long-awaited news of a ‘travel bubble’ with Australia, few recent Government announcements have been anticipated more than the trumpeted release of a suite of measures to address the issues facing the housing market.

Sadly, however, the reality of the announcements falls far short of the hype and has proven to be little more than a clumsy potpourri of retrospective justifications of previous failed initiatives and virtue signalling mixed with some worthy tinkering.

With one exception – but I’ll come to that later.

The Government just lit the fuse on a bomb that will blow up the housing market.

Ashley Church

A property commentator for OneRoof.co.nz.

Email him at ashley@nzemail.com

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THE BLACK BOOK.

The announcements comprise a selection of documents – one which goes to considerable lengths to put a brave face on the Governments housing market performance over the past four years - all laid out without a hint of irony or humility. This section, which swings between defending the indefensible and taking credit for the achievements of the previous Government, paints the construction of 800 Kiwibuild homes as a success despite the fact that the original target was 100,000.

To be fair, not all of the announced initiatives are without merit. The decision to increase income and price caps for those who qualify for the First Home Loan Scheme is a long-overdue response to a problem that has been brewing for two or three years, and the investment of $3.8 billion in a contestable fund to work with councils to develop the infrastructure required for new housing developments is a practical measure that will help to make a real difference. These moves should be applauded.

But such pragmatism is quickly overshadowed by the large dollops of ideology that underwrite the essence of most of the other measures, particularly the decision to increase the Bright Line test to ten years, despite no logical reason for doing so. This means that property investors will now pay capital gains tax on the sale of a property if they sell within ten years, doubling the previous rule which was already far too long. Unlike speculators who buy and sell quickly in the expectation of making a profit, property investors invest for the long term and pay tax on the profit they make from operating their business, so taxing them twice, in this way, is inequitable, naïve and continues to misrepresent the important role played by tens of thousands of mums and dads investors.

But that measure is a mere entrée to the real game-changer in this package: the decision to remove interest deductibility on property investment mortgages. If your eyes are glazing over, I don’t blame you, but bear with me because the consequences of this change are important.

First, let’s understand what this actually means. Contrary to the dishonest language of the Government release – which refers to this as a “loophole” – the ability to treat interest as an expense for tax purposes is an internationally accepted aspect of business tax practice and has been for as long as anyone can remember. If my business generates $100 and my expenses are $75, my ‘profit’ (the amount on which I pay tax) is the difference, $25. The interest paid on an investment mortgage has always been understood to be such an expense, but the effect of this change is that it won’t be in future.

The consequences of this are huge and will dramatically increase the tax bill to the average investor, at a time when most landlords are already losing money on the day to day operation of their investment.

I’m sure there are some who will applaud this, but that’s short-sighted thinking.

The reality is that the need for rentals increases as our population increases and this policy change flies in the face of that truth. Inevitably, for these reasons, this measure will lead to a full-blown rental crisis characterised by stagnant (or falling) numbers of rental units, a big spike in the cost of renting, and huge pressure on the Government to build even more state houses to fix this new housing crisis.

However, the change will be gradual.

While new investors will be subject to this new rule from 1 October – the change will be phased in, for existing investors, over the next 4 years. This means that, by the time that happens, we’ll have long since forgotten this announcement and will no doubt look for something or someone else to blame for the crisis.

Neither this measure, nor any of the others in the Government’s announcement, will make the slightest bit of difference to house price inflation.

And here’s the starkest truth. Neither this measure, nor any of the others in the Government’s announcement, will make the slightest bit of difference to house price inflation. Prices will continue to rise and the latest ‘suite of measures’ will become just another footnote to a long list of failed policies.

It kind of makes you wonder what all the fuss was about. n

For this , and m ore

OneRo o

f.co.n conten t, click h z ere

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s y a W n e T o p T o e T u l a V d d A o T e m o H r u Yo

With the property market currently enjoying an unprecedented level of activity, it’s hard to know whether you should even need to try adding value, when homes in any condition are being snapped up so quickly.

Most experts say that the current price-rise trajectory, fuelled partly as the result of limited stock, still does not mean that any old poorly presented property will sell. That means that actively improving your property makes sense to make the most of the hot market.

And if you’re happy to stay put, for now, any level of investment, is likely to pay off when you eventually sell.

Here are ten things you can work on:

01

Hit the deck If your home currently doesn’t have a deck and there’s potential space for building one, the added value can be significant. The seemingly insatiable Kiwi desire for indooroutdoor flow is higher now than ever, as we cycle in and out of lockdowns, working from home, and looking for relaxation spaces that create a sense of separation.

Dig deep Basements aren’t common in New Zealand homes, which means if you have one, see if it can be better utilised to provide considerable extra space in your home. Media, rumpus or games rooms are ideal in a below-ground renovation, and even workshops and dry storage areas or perhaps a home office, will attract many potential buyers.

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three

This room is, without doubt, one of the most important parts of the house. Depending on the age and condition of the property, an update can range from a full gut refurbishment to just a clever makeover. A budget-friendly update that retains much of the original kitchen with clever use of materials such as paint, new splashback tiles, resprayed doors and drawer fronts, new handles and flooring, is likely to improve the value of your home.

Heating, cooling & smart living Almost anything that improves your homes health - efficient heating, improved ventilation, upgraded insulation and doubleglazing – and energy projects such as solar panels to reduce utility bills, will automatically make a property more desirable.

Smart-wired houses are increasingly popular, with security systems, remote control of appliances, audio and lighting all at the top of a potential buyer’s wish list.

Making space Open plan living has been a property buzzword – or three - for the last couple of decades. It’s very rare to find kitchens or dining separated from the living area today. If your current home has potential for opening up those spaces, doing so will almost certainly add value. Ensuring these areas are light and bright and enjoy easy access to the outdoors is key to creating a truly desirable feature.

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Kitchen update

05

Beautiful bathrooms A new bathroom is instantly attractive to buyers. As long as it’s classic and timeless in style, constructed using quality materials, they will welcome the opportunity to move into their new property without having this messy and expensive job ahead of them. In terms of budgets, a new bathroom can cost anything from around $20,000 to many times that amount, but it is almost certain to pay for itself – and more, when you come to sell your home.

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07

Keeping in character If your current home is an older one, it’s nice to try and keep and restore, features such as timber flooring, leadlight windows, ceiling roses, architraves, original fireplaces and fretwork. The key is to arrive at a blend of old features and new amenities that will have wide appeal.

08

Add curb appeal

First impressions are very important, so spending time and money on enhancing your home, with prospective purchasers in mind, will undoubtedly add value. New owners would rather avoid having to paint the property, so any touch-ups you can undertake to present the exterior in top condition will impress them. A freshly painted front door is also a good selling point and some nice planters with a couple of palms or a pot of floral colour will further enhance its appeal.

Nine Good garaging

While there’s a school of thought which says garages are wasted on cars, a canny vendor will present the garage in such a way that potential buyers can imaging keeping not only their precious wheels in there but can also see the scope it provides for DIY and storage. If the garage lends itself to conversion as an office or rumpus room, it may make sense to have applied for consents, even if you don’t actually undertake the project yourself.

Green thumbs Nothing is more off-putting than overgrown trees and shrubs, weed-filled flower and vegetable beds and untidy lawns. Just a few hours can make all the difference and enhance the property’s appeal. If you really aren’t that way inclined and the garden is especially needy, a professional gardener or landscaper can do wonders in a remarkably short space of time.

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