Steve Fejos’s
DECEMBER 2011 Best wishes for a safe and happy Christmas and a prosperous New Year!
Price-conscious buyers push sales volumes up Real Estate Institute of New Zealand (REINZ) latest data on the New Zealand housing market showed 5,007 unconditional sales for the month, up 1,104 sales (+28.3%) compared to the same month last year. “The volume figures for October suggests that the spring ‘lift’ widely expected in the real estate market has been muted, but so too has any impact from the Rugby World Cup and European uncertainty”, said REINZ Chief Executive Helen O’Sullivan. “Volumes are up strongly compared to this time last year, but that in part reflects a very weak October 2010 when sales volumes were amongst the lowest in the past 20 years”. “We are seeing plenty of activity, but buyers are still very price-conscious. They will move quickly when they find a property that meets their needs, but properties perceived by prospective buyers as over-priced are not generating much interest at all.” The national median ‘days to sell’ improved by 2 days from 37 days in September to 35 days in October. The days to sell were at 41 days in October 2010. The days-to-sell measure continues to trend downward and has now fallen by 10 days over the past five months, from 45 days in May to 35 days in October.
Win Dinner for 2 at Logan Brown Restaurant Cnr Cuba and Vivian Streets Tel: 801 5114
Courtesy of Logan Brown Restaurant you are offered the opportunity to win dinner for two to the value of $250.00 To go into the draw fill in your name address and telephone number and mail your Newsletter by the end of the month to: “RE/MAX Leaders Logan Brown contest” PO Box 24262 Manners Street Wellington 6142 To email your entry: Email remax@homenet.co.nz and include the following details: Subject: Logan Brown contest Email: Your name, address, and contact phone number and the name of the agent who sent you the newsletter. Newsletter sent to me by
of RE/MAX Leaders
Name Address Telephone
Last month’s winner was: Kate and Carl Hartmann of Waikanae
Ongoing responsibilities after completing gifting Trevor and Jill set up a family trust five years ago and transferred their family home to it. Since then they had been gifting $27,000 each per year to reduce the loan from them to the trust that arose from the transfer of the property to the trust. After the abolition of gift duty in October, they gifted the whole amount remaining in one lump sum. They presumed they had therefore completed all their responsibilities in relation to the trust and could “rest easy” until they sold the property. Those like Trevor and Jill need to be careful that they continue to administer their trust after making a final gift. There are continuing obligations in relation to trusts to ensure it is clear that the property is owned by a trust and not you personally. Those include: • Decision-making - Ensure that all trustees are included in every decision regarding trust property and all major decisions are recorded in writing and signed by all trustees. • Finances - If the trust has its own income stream, annual accounts need to be prepared, and an annual tax return prepared for the trust. A separate bank account for the trust should be used. • Trustee meetings - Hold annual meetings of trustees and ensure minutes are taken. Your lawyer will be able to assist you with ongoing maintenance of the trust, to ensure your trust is as watertight as possible. By Claire Coe Rainey Collins Lawyers www.raineycollins.co.nz or follow us on Twitter @RaineyCollins
‘Home mortgage borrowers should stay floating’ In one of his recent ‘overviews’ Tony Alexander, Chief Economist with the BNZ, said that ‘the world is looking worse and worse and now for the first time this year I am even thinking that fixing two years near 6% or three years near 6.25% may not be worth it. I would stay floating. But for business borrowers there may be an opportunity to secure some low cost two or three year fixed rate funding and remove uncertainty regarding cash movements.’
WELLINGTON REGIONAL COMPARISON
Wairarapa Wellington Central Wellington West Wellington East Wellington South Wellington North Pukerua Bay/Tawa Lower Hutt Upper Hutt Otaki/Paekakariki Levin
38 43 32 21 33 65 68 82 32 71 14
47 38 36 27 27 80 64 102 52 74 27
MEDIAN DAYS TO SELL OCT 10 OCT 11
39 45 27 29 23 30 47 43 52 53 94
62 53 25 27 22 26 42 30 31 66 56
MEDIAN SALE PRICE OCT 10 OCT 11
$000s $222 $467 $483 $450 $525 $415 $349 $353 $342 $329 $192
$000s $230 $340 $551 $500 $471 $431 $429 $341 $349 $370 $218
Wellington Region Median Sales Price MEDIAN SELL PRICE
AREA
SALES OCT 10 OCT 11
Comparative sales figures compiled from the Real Estate Institute of NZ statistics
PHONE 04-475-5021 CELL PHONE 0275-621-777 EMAIL sfejos@leaders.co.nz Disclaimer: All the information published in Property Update is true and accurate to the best of the publisher’s knowledge. No liability is assumed by RE/MAX Leaders, nor the publisher, for any losses suffered by any person or organisation relying directly or indirectly on this newsletter. Leaders Real Estate Group represented by: Leaders Real Estate (1987) Ltd, Northside Realty Ltd, Villa Real Estate Ltd. Licensed under the Real Estate Agents Act 2008
© Homenet Enterprises Ph: (04) 234 8006, E-mail: graham@homenet.co.nz