THE BLACK BOOK | current to 09 March 2021

Current to 09 March 2021

THE

BLACK BOOK. 24 Ruskin Street, Parnell

Your own chapter in the history books

Kitchen Space

40% Deposits

10 and 10 in 10

Make it count

Will it effect the housing market?

Meet Richard Burt

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. Its been such a great pleasure watching our book grow and expand into all areas of New Zealand with so many success stories as a result.

The digital world has made it possible for us to sell and have our clients properties seen by anyone and everyone wherever they are in the world and even if we are in a lockdown and not able to view a property or attend auctions in person. The silver lining to the covid situation has obviously been the increase in the New Zealand property market.

On that note, the growth of the Black Group into Matakana and Omaha has also been a wonderful string to our real estate bow and service to our clients. We are now selling holiday homes for our Auckland Central based clients and able to offer them stock up in beautiful Matakana and Omaha. There is such an overlap in these markets and we are thrilled to be able to bring a next-level service to this stunning area of the world which it so deserves.

We hope you have a wonderful end to February, hard to believe we are heading into March!

Enjoy this issue.

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?

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.

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contents.

4.

6.

8.

20.

Will The 40% Deposit Rule Put The Breaks On Rising House Prices?

10 and 10 in 10 Make Every Centimetre Count In The Kitchen Property Feature Properties For Sale

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THE BLACK BOOK.

Welcome Note Contents Inspire

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14.

16.

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20.

25.

25.

16.

Since joining Black Group, my career has gone from strength to strength.

Having an incredible management team, the administration support, plus the technology Ray White offers - I am thriving.

- Rachael Bridger

Ray White Takapuna

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 - have it your way.

Heather Walton Selling Principal 021 432 167

Mark Bycroft Franchise Owner 021 968 946

Jeff Tubman Sales Manager 0274 958 717

Jacki Lane General Manager 027 556 7042

Ray White Epsom 1/416 Broadway, 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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inspire.

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THE BLACK BOOK.

THE 40% DE P OS IT RUL E :

Will it put the brakes on rising house prices?

With the return of the 40% deposit rule looming large, some in the housing industry say the measure probably won’t do much to slow the frenzied market.

The Reserve Bank has signalled that it will reinstate its loan to value ratio (LVR) restrictions in March, almost a year since it suspended the rules in a bid to ease the pain of the Covid-19 lockdown.

Investors are set to be hit with bigger deposit requirements – from 20% of the total value of the loan to 40% – although some banks have already upped their requirements.

Lesley Harris, from the First Home Buyers Club, said that while the return of the LVR restrictions could reduce the amount of competition first home buyers face from investors, they would unlikely help solve what she says is the big problem in the market: the “extremely tough” bank lending and debt servicing criteria.

“I suppose the LVR restrictions coming on are not going to help or hinder first home buyers. They’re not going to make things better for them but I don’t know whether it’s going to make things hugely worse. The situation is already quite diabolical.”

A lot of bank home loan applications were being declined, she said. “Time will tell but it’s certainly pretty grim for first home buyers. I think people are feeling really, really frustrated with prices going up and banks’ lending criteria not easing up but just getting tighter.”

I suppose the LVR restrictions coming on are not going to help or hinder first home buyers.

They’re not going to make things better for them but I don’t know whether it’s going to make things hugely worse.

The best advice she had for those looking to get a mortgage and buy in the current market was “to be the best possible customer you can be” to the banks.

“Get rid of your debt and get as much of a deposit together as you possibly can.

When you’re in that low deposit space it’s not a win all the way through, because you’ll have to pay margins on top of standard interest rates. You don’t get the same interest rates as people who’ve got 20 per cent deposit or more,” Harris said.

She said she recently heard of one situation “where three singles had gone in together to buy a house and the deposit was gifted by mum and dad but they still couldn’t get lending”.

“Here are three people with really good incomes that will have been declined because the bank wants to see where the deposit has come from,” she said.

She said that while a toughening of deposit rules could put off some investors, others would find ways to stay in the market.

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There’s a very high chance that when the Reserve Bank fully confirms the LVRs are coming back they will go for 40% for investors and 20% for owneroccupiers.

“They can withdraw money from a revolving credit facility, or something based against another property to put towards bolstering the deposit of the new ones.

There are different means and ways of getting around it,” she said.

John Bolton, owner of Squirrel mortgage brokers, said the impact of higher LVRs would be minimal as banks had already moved to put the restrictions in place.

“We’re talking about the Reserve Bank making it official in March but the reality is all the banks have already moved,” he said.

“Price growth might slow a tiny bit and while it will take some people out of the market I don’t think property investors are a big driver in this market at the moment – they might be in the provinces but they’re certainly not in Auckland.”

The real drivers of the market, he said, were first home buyers and developers.

“There are a lot of new developments coming on stream. What happens is developers are buying brown sites, so they’re buying an existing property, removing the house and building terraced townhouses and they’re paying a lot for 800sqm sections.

“If you look at land prices they’re a big contributor to why prices are going up because builders and small-scale land developers have been buying up anything over 800sq m that comes to market.”

“We’ve got a good balance of investors and home buyers and if there are fewer investors there’s going to be more home buyers. Also, there are other lenders out there. There are ways and people are already looking at that.”

Only five per cent or less of investors owned multiple properties.

“The rest are one-offs or they’re not affected by it. It will affect a small percentage but because of the amount of demand at the moment I don’t see it having an effect on prices.”

However, economist Tony Alexander believes that a 40% deposit rule for investors would slow the market.

“That’s what we learned in 2016,” he said.

The 20% requirement “didn’t really do much”, he said, and the 30% requirement from 2015 “had a very temporary impact”.

“It only lasted three or four months then people went back buying again but the 40% LVR for investors effective from July 2016 basically stopped Auckland prices rising,” Alexander said. “[Auckland prices] sort of went nowhere for three years, and the pace of house price growth halved in the rest of the country.

“That’s why I’m of the opinion there’s a very high chance that when the Reserve Bank fully confirms the LVRs are coming back they will go for 40% for investors and 20% for owner-occupiers.”

Coming at the same time as the Residential Tenancy Act changes, the market will slow, Alexander thinks.

“Some of the longer-term investors who have seen this sort of thing before will now be thinking about getting rid of some properties that are in need of maintenance.

It’s a fantastic period for them to do that.” n

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THE BLACK BOOK.

ten and ten, in ten with Richard Burt

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 Richard Burt from Ray White Epsom aside to ask him ten personal, and ten professional questions.

Personal

What’s your coffee order?

Small Flat White, 2/3 full sometimes if the takeaway cup looks too big.

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

Sia’s song Unforgettable Which App do you spend the most time on?

Instagram apparently from what my phone tells me.

Where do you think New Zealand’s bestkept secret is?

The South Island, Fleurs Place in Moeraki How do you start each morning?

Coffee, always coffee What’s your go-to ice cream flavour?

French Vanilla.

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

Hello Beasty - it’s a fun environment. Love that downtown area and their food is so good.

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

Cate Blanchett because she takes on projects more than block buster movies, art films like Manifesto.

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

Something like the Block, I could put my design and making knowledge to the test.

What was the last book you read?

Rebuilt, a book ranging from historic homes to contemporary dwellings in Canterbury.

Professional

What was your first job?

Kitchen hand at Saint George’s Hospital in Christchurch - best part was they fed me.

What did you want to be when you grew up?

When I was kid either a train driver or a chef.

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

The people you meet and making the buying or selling enjoyable for them.

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

Just be yourself everyone else is taken.

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

I kind of knew what I was getting into. I started real estate as I was encouraged to by sale consultants working for group home builders and a couple of real estate agents in Christchurch.

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

To repaint my 1971 280s Mercedes, deserves it after 18 years of owning it.

What motivates you?

Life.

Tell us someone who inspires you?

All Artists. They are so focused on what they do uncompromisingly. I was very fortunate to work for Darryn George as his studio assistant and Art Dealer Judith Gifford for a number of years.

Share with us your property must-have?

Well considered accent lighting. Lighting seems to always be forgotten.

Million dollar question - how’s the market at the moment?

That is a Million dollar question in most cases.

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THE BLACK BOOK.

Make Every Centimetre Count

in the kitchen

Once you have an idea of the scope of your kitchen project, planning the storage design and layout is one of the most crucial parts of a kitchen renovation.

When our design studio does home consultations, we spend a lot of time opening cupboards and finding what doesn’t work so we can get a final design that does work.

Here are my guidelines to be on your way to a functional kitchen layout that you love and makes the most of the space you have.

You all would have heard about the working triangle, one of the interior 101 basics of kitchen design. A quick reminder: imagine drawing a triangle in your kitchen connecting the fridge, sink and stove.

But in my practice, while we do follow that rule, I prefer the approach of using an irregular quadrilateral. Basically, that just means we include the pantry as the fourth essential for a good workflow when cooking. The key is making sure these functional pieces of your kitchen are all within arms reach.

Make sure you analyse what’s important to you and design for your lifestyle with things like a wine fridge or appliance garage. If you’re planning on selling the house in the future, keep in mind buyers’ re-sell wish lists, as you only want to do a kitchen renovation a few times in a home’s lifetime.

One of my favourite discoveries is when we open the cupboards in an existing kitchen and come across the plastic storage containers cupboard.

Usually, an army of un-matched lids and bases spill out of control through the cupboard.

Storage optimisation is hands down the best part when planning your kitchen. We like to opt for drawers, rather than cupboards, even under the sink. They are the best way to maximise storage as most drawers having dual inners which means you can use every centimetre possible. And don’t stop there, invest in internal drawer organisers that will really take your storage to the next level - your plastics collection will never be messy again!

When looking at the internal configuration layout, be logical for the way you work.

Put chopping boards in a purpose-built cabinet near the stovetop, line pull-out bins near the sink and dishwasher. An up-and-coming Jamie Oliver needs provision for a herb and spice drawer with taller space for favourite olive oils and sauces.

“Make sure you analyse what’s important to you and design for your lifestyle with things like a wine fridge or appliance garage.”

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“If you have the floor space then a butler’s pantry will be amazing – especially for those times you are entertaining and can just close the mess away.”

The other way to make the most of the space is to use your ceiling height. Don’t settle for a standard option for wall cabinets that stop at 2100 high (the height of a standard door), but instead, take cabinets right up to the ceiling. I can guarantee you will make more use of that space than the grease and dust that usually accumulates on the top of cupboards.

If you have the floor space then a butler’s pantry will be amazing – especially for those times you are entertaining and can just close the mess away.

If you haven’t enough room for a full butler’s pantry then try an appliance garage that hides all your appliances in one area, but opens up for access.

If you plan a kitchen island, include the elements of the working quadrilateral in there rather than it just being storage. This will helps with workflow and lets you engage with family or guests sitting at the island when you are busy with tasks.

We like to break up the island with some open book shelving or end storage for access to things like children’s homework or crafts. n

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THE BLACK BOOK.

Your Own Chapter In The History Books If the walls of 24 Ruskin St could talk, there would be enough amazing stories to fill a library.

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The yarns from the time the historic homestead was a police hostel; the tales of when it was a brothel; the stories from its days as a kennel.

It’s a property that gets listing agent Ross Hawkins of Ray White Epsom truly excited.

“It’s one of those homes that makes me realise why I do what I do,” he tells.

“It’s an incredibly unique property, and one that presents an incredible opportunity for the right buyer.”

We don’t have a lot of properties with this historic provenance in New Zealand, and especially few this well preserved.

Built in 1840 in Parnell looking out to Auckland’s waterfront, 24 Ruskin St offers soul, spirit and an unparalleled slice of Auckland’s early history.

And as soon as you stroll through the crisp white gates of the beautiful property, framed either side by gorgeous mature trees, you know you’re about to walk into something special.

While the City of Sails has since sprung up around the huge 1300 sqm section (almost unheard of in Parnell), the elegance and grandeur of the past are still in full display, and with it a chance to be a part of the homestead’s rich history.

“It’s still very much in its original glory,” says Ross.

“It actually reminds me a lot of Pompallier House in the Bay of Islands, which was built around the same time. We don’t have a lot of properties with this historic provenance in New Zealand, and especially few this well preserved.”

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You can still see some of the original saw cuts in some of the Kauri.

An old photo from the 1850s shows the home quite alone on its section, looking out towards merchant ships sailing out of the Hauraki Gulf.

Now surrounded by more than 150 years of development, 24 Ruskin St stands as a monument to Auckland’s exciting beginnings as a new city, and now offers a peaceful oasis in the middle of the city fringe.

Boasting four bedrooms, thoughtfully modernised kitchen and bathrooms, an 11m swimming pool, guest house, spacious attic and both formal and family living areas, this property is the perfect family home - or for the visionaries, a home ripe for development and enhancement.

A true mark of its colonial heritage, your eye goes straight away to the large wrap-around veranda and the classic French doors from almost every room.

Inside, many of the magic features of the property have been painstakingly restored and maintained, including original Kauri dados.

“You can still see some of the original saw cuts in some of the Kauri,” says Ross, shaking his head.

“It’s quite extraordinary”.

The home seems to have a soul as you go from room to room, letting your mind wander to thinking of who crossed the same thresholds once upon a time, and back to the unlimited potential of the layout and feel.

A grand attic is the perfect starting point for renovations, says Ross. “There is so much space – the potential is endless.” The home also has a large under-house area – great for a laundry or storage, but could be transformed into a wine cellar or home brewery.

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I’d love to find the right owner who will give it the love it deserves.

Two huge living areas with impressively high ceilings and gorgeous fireplaces hark back to another era, while the kitchen and bathroom have been updated to modern standards whilst still retaining their Victorian charm.

One of the few modern concessions, an 11m swimming pool, lies welcomingly in the back garden, offering a perfect pause from the hustle and bustle of modern life. A courtyard garden lends itself to evening aperitivo and summer BBQs. And handily for 2021, a self-contained two-story cottage sits beside the pool – perfect as a home and income base, a separate home to rent out, a home office or a place to stash the teenagers.

“This is the perfect home for someone with a passion for history and New Zealand,” says Ross.

“I’d love to find the right owner who will give it the love it deserves.

“It’s truly not to be missed.”

So, what do you want the property to be? A grand home for your family? An impressive business location? A perfect bed and breakfast?

Or perhaps the development opportunity you’ve been looking for?

Get in touch with Ross now to begin writing your own chapter in the rich and colourful history of 24 Ruskin St. n

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M IS S I NG O UT?

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.

| 3