The biggest improvement is the average days to sell which, at 25 days, is the first time it has fallen below a month since April 2005. Properly priced properties sell relatively quickly, often with competing offers.

The median price is sitting at around the $330,000 which Quotable Value tells us is an improvement of 2.2% compared with last year. Hastings and Central Hawkes Bay prices improved much more significantly at 6.1% and 8.8% respectively. Well-presented homes tend to attract a premium.

In the middle and lower end of the market demand is being stimulated by low interest rates and benefits to first home buyers. Buyer activity is also being boosted by positive immigration into the region, and out of town investors seeking better returns than metropolitan areas provide.

A lack of properties available for sale is not only limiting buyer choice, but constraining the scope of potential house sales in the months ahead. This data means that sellers can put their house on the market with confidence.

Over 93% of Hawkes Bay properties sell by Private Treaty, with the few remainder sales evenly divided between Auction and Tender. These latter methods of sale are not favoured by local purchasers who overwhelmingly want a clear price indication. Most importantly for sellers, those strategies could mean losing the best buyer who wants to buy now, rather than being forced to wait for a later date.

Although consumer confidence appears to be easing, households don’t appear to have been spooked as much as businesses by drops in dairy prices and uncertain global economic prospects.

The post Napier market trends positively appeared first on Cox Partners Estate Agents.

According to realestate.co.nz there were 366 properties for sale at the start of September and 169 new properties were listed during the month. Then 68 withdrew from sale (primarily vendors whose motivation to sell eased, or whose expectations were unrealistically high) and 112 properties sold. Overall the market shrunk to 355. A lack of properties available for sale is limiting the scope of potential house sales in the months ahead.

Limited choice is now beginning to lead to an improvement in property prices in Napier, particularly in mid-range properties, and while the shortage of stock continues we expect this to continue in the months ahead. This trend is likely to be restrained by affordability issues such as local income constraints. REINZ reports that the current median price in Napier is $337,500. Quotable Value reports that present prices are an average of 1.3% higher than a year ago. The Quarterly Price Index shows that at current levels prices are similar to those being achieved at the market peak in 2007 / 2008.

Well-presented properties in popular localities which are correctly priced are attracting excellent interest, often receiving multiple offers and selling for above average prices.

Although consumer confidence appeared to ease this year, households don’t appear to have been spooked as much as businesses by the drop in dairy prices and uncertain global economic prospects. The Reserve Bank and the New Zealand dollar, have both responded to these challenges – with the Bank cutting the OCR further in September, and the dollar depreciating 12% in the past three months.

Napier: Number of Sales 2014 / 2015

Napier: Median Prices 2014 / 2015

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Generally there is no capital gains tax on property sales in New Zealand. However, new rules affect properties purchased from 1st October 2015 and sold within two years of being bought may attract a tax liability from any increase in value.

The “bright line test” will be used to help Inland Revenue distinguish those who buy and sell residential property with the intention of making a profit from property sales.

The IRD has always had the ability to impose a tax when a property was bought with the INTENTION of profiting from the sale. But “intention” is often difficult to determine and enforce, resulting in a loss of tax revenue.
Under the new rules the sale of your main home is exempt, as is a property transferred on the death of a person or under a relationship agreement.

The calculation of the taxable portion is simple: it’s the difference between the purchase price and the selling price. And the tax is calculated at the individual’s marginal tax rate, the same as any other income.

Habitual renovators will also have the “bright line” test applied to them. Anyone who frequently buys a home and does it up while living in it, then sells it for a profit is really running a trading business.

These people should be taxed under existing law, so the new test simply makes this clear. It states that if a home renovator buys and sells their home more than twice in a two year period, they will be deemed a trader and tax will apply on any profit they make.

The bright line test is not aimed at people who buy a property to provide tenants with a home.

While there has always been a risk associated with quick turnover in the sale of investment properties, there has been debate on how the bright-line test could catch people whose personal circumstances change unintentionally, and must sell their investment property within two years, triggering a tax bill.

Two other compliance requirements under the new rules are that non-residents and New Zealanders buying and selling any property other than their main homes must provide a New Zealand IRD number with the transaction, and non-residents must have a New Zealand bank account to get a New Zealand IRD number.

If you are planning to buy and sell property, our recommendation is that you always seek independent legal advice to help ensure your interests are protected.

The post New tax rules for property traders appeared first on Cox Partners Estate Agents.

Activity in the top half of the North Island is leading growth across the country as buyers look for more affordable property options outside major metropolitan centers.

First home buyers taking advantage of recent incentive improvements has help lift demand for homes up to the $350,000 cap which have improved by 19% during the past year. Investors are competing for these homes looking for better returns than banks or shares can currently offer.

A softening of lending constraints and further easing in interest rates is benefiting sellers in higher price brackets as well. In particular turnover between $350,000 and $600,000 has improved 25% over the past year.

A lack of property available for sale is limiting the scope of potential house sales in the months ahead. An audit of data from realestate.co.nz shows only 366 properties for sale in Napier in September 2015, which is 33% fewer than the same month a year ago.

Improved demand has had a positive effect on prices, which have stabilized. Quotable Value is reporting that prices have improved by 2.4% in Napier compared with the same period last year. QV’s Quarterly Price index shows that at current levels prices have returned to levels similar to the 2007/2008 market peak.

Well-presented properties in popular localities which are correctly priced are attracting excellent interest, often receiving multiple offers and selling for above average prices.

Although consumer confidence has eased this year, households do not appear to have been spooked as much as businesses by the drop in dairy prices and mounting uncertainty about global economic prospects. The Reserve Bank and the New Zealand dollar, have both responded to these challenges – with the Bank cutting the OCR further in September, and the dollar having depreciated 12% in the past three months.

Napier: Number of Sales

Napier: Median Prices

The post Strong turnover constrained by supply appeared first on Cox Partners Estate Agents.

The key driver in Napier is housing demand.

First home buyers taking advantage of recent incentive improvements has lifted demand for homes up to the $350,000 cap by 12% during the past year. Investors, many from outside the region, are competing for these homes looking for better returns than banks or shares can currently offer.

A softening of lending constraints and further easing in interest rates is benefitting sellers in higher price brackets as well. In particular turnover between $400,000 and $600,000 has improved 25% over the past year.

A lack of property available for sale is limiting the scope of potential house sales in the months ahead. At the start of August data from realestate.co.nz shows there were only 384 properties for sale, which is a massive 38% less than the last quarter of 2014.

Improved demand has had a positive effect on prices, which have stabilized. Quotable Value is reporting that prices have improved by 1.9% in Napier compared with the same period last year.  QV’s Quarterly Price index shows that at current levels prices are within 2% of the 2007/2008 market peak.

Well-presented properties in popular localities which are correctly priced are attracting excellent interest, often receiving multiple offers and selling for above average prices.

However, in the background is a series of negative blows affecting economic confidence including slumping dairy prices, an early peak in the Canterbury rebuild, and the negative confidence shock associated with events in Europe. The Reserve Bank and the New Zealand dollar, have both responded to these shocks – with the Bank expected to cut the OCR further in September, and the dollar having depreciated 12% in the past three months.

Napier: Median Prices

Napier: Sales Turnover

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People who buy before they have sold turn themselves into a “must-sell frustrated vendor” by choice. Anyone forced to sell rapidly is at the mercy of the market. In about 85% of the cases the result is acceptable enough for the seller. The other 15% suffer badly.

Unfortunately the confronting consequences of having to sell ASAP often only dawns on the unprepared homeowner once they have committed themselves to buy elsewhere.

Telling yourself that you will ‘just rent it out if you don’t get you price’ seems practical at first. That’s until you work out that you are paying a mortgage rate of 5% on a property that returns 3% in net rental income!

It’s a better result than a fire sale, but it is a situation better to avoid altogether. It is best to write up a plan prior to buying or selling. Work out time lines, house preparations, which selling agent you will use, solicitors, photos, financier and building inspectors. Interview agents well before you need their services.

You can buy yourself a lot of time by being prepared in advance. Once you are committed to a contract to buy, the clock runs down quickly.

Most homeowners who buy before they sell, do so for two reasons: they have excess confidence that their home will sell quickly and well, and they fear they will be unable to find another suitable replacement home.

The answers to the following questions may help you decide what to do:

Would you rather rent because you sold your home for a high price? or would you prefer to sell your home for a bargain price just because you bought elsewhere and were forced into a quick sale.

Like all markets, the property market is prone to be unpredictable. Generally it is much easier and safer to find a home to buy quickly than it is to find a buyer at your desired price. We recommend that you aim to become a cash-ready buyer rather than a desperate buyer.

What seller wouldn’t talk to a cash buyer willing to pay a fair price?

It might also assist your situation to have a long settlement date in your sales agreement. This will give you some ‘breathing space’ to find another home.

We have a new edition of the popular book “Get the Highest Price for Your Property” available with our complements. Please call us anytime on 835-4321.

The post Bought elsewhere, must sell appeared first on Cox Partners Estate Agents.

The good news is that because of the combination of low interest rates and relatively affordable property prices in our area, home affordability is currently at it’s best level in years.

Now is a good time to ask the question should I rent or buy a home?

If you’re buying your first home, you may also qualify for the Home Start Loan Grant. Also after 3 years of contributing to KiwiSaver, you may be entitled to a first home deposit subsidy. If you’ve owned a home before, in some circumstances you may still be eligible for the first home deposit subsidy.

A good place to start is to contact a mortgage broker.

When considering whether to buy, do your numbers carefully. You don’t want to move into a home only to find yourselves under financial pressure as time goes by. We can connect you with a reputable adviser who can assist you with this.

Here are some questions to ask when weighing up the affordability of a home:

1. How much deposit do you have?The bank expects you to prove your savings record, and show that you have saved some money as a deposit toward your home.
2. Can you afford the repayments now?The bank will look at your employment record, your income and how well you are managing your expenses. Get your credit card and hire purchase under control.
3. Can you afford repayments on 1 wage?If pregnancy is not a possibility, this is not such a vital consideration.
4. Can you still afford the repayments if interest rates rose by 2 %?If you can’t, than don’t buy. Interest rates may rise next year, so allow for a 2% increase to be conservative.

If you can afford to buy, then go ahead.

Don’t wait for the ‘right time’. Start enjoying the benefits of home ownership now.

These benefits include long term capital gain; feeling safe and secure; building up your asset base; and getting on the path to prosperity.

Finally, start out with a modest home, then trade up when you’re ready. Always keep your home repayments at a (conservative) affordable level.

For other great advice about buying your home call Cox Partners Estate Agents on 835-4321
for our FREE booklet,  “Buying Your Home”.

The post Rent or buy a home? appeared first on Cox Partners Estate Agents.

There is no doubt that buying (and selling) a home can be an intensely emotional process for some people. The solution to a successful property purchase is knowing where to find the answer for each challenge. The more information you have, the more logic rises and emotion subsides, keeping stress at bay.

It is useful to get a team of trusted advisers to assist you to assess the pros and cons of purchasing the property you are interested in. These advisers might include a valuer, solicitor and a building inspector.

Having an army of family, friends and advisers plying you with their opinions will only lead to confusion. Never ask these people whether you should or shouldn’t buy a property or how much you should pay. There is too much responsibility attached to these answers. They will understandably be conservative.

It is better to ask an expert. Maintain the same few expert advisers throughout your search. This will help them offer the best possible feedback and build on their knowledge of the market.

The transaction history of the property you intend to buy and other sales in the immediate area can be found easily by companies such as QV (Quotable Value) who specialise in this service. And if you Google search a specific property you will find other details related to the marketing of the property.

A good solicitor can assist during this emotional time. Their role is to identify the issues that could go wrong and advise you accordingly. Because most people buy property infrequently, they don’t know what to look for before
things go wrong. It’s your solicitor’s responsibility to tell you what you don’t know.

We always recommend obtaining a building inspection from a suitably qualified inspector. It’s also a good idea to attend the building inspection. This way you can talk to the inspector, so they can tell whether or not an issue they identify is a big or small problem to fix. What might appear to be a poor written report could be perfectly manageable, and the issues rectified without too much cost. By attending the building inspection, you will reduce your stress and not pass up the right property for you.

The location you buy in will have a massive impact on your happiness when you live there. We often recommend that buyers door knock the neighbours to get a feel for the area. If you do this, you may glean information the agents or vendors may not tell you or even know. Doing this you may decide you want to buy the house even more than you did before. Knowing you are buying in a desirable location with nice neighbours helps alleviate a lot of stress.

The informed buyer finds the often emotional process of purchasing a home so much easier than the unprepared and naive buyer. Finding experienced advisers and doing you homework is always worth the effort.

If you’re looking for a home call Cox Partners on 835-4321 anytime. We’d love to help.

Follow this link for some great Buyer Tips . . .

The post Being a well-informed home buyer appeared first on Cox Partners Estate Agents.

Since February 2015 the gap between the benchmark 10 year average monthly turnover has narrowed, which indicates a recovery in demand, which was relatively sluggish over the past 18 months. This stronger growth could be attributed to the lifting of the LVR speed limit to 15% (outside Auckland) coupled with lower interest rates. Further interest rate cuts are expected.

A lack of listings is limiting Napier house sales potential in the months ahead. According to data from realestate.co.nz, listings have been lower than a year earlier for each of the last nine consecutive months.

HomeStart subsidy and larger Kiwisaver withdrawals for first home purchasers since April 2015 has increased activity below $300,000. Investors from outside the region have also increased the demand for more affordably priced homes. However, softening lending constraints and further easing in interest rates has also benefitted sellers in higher price brackets.

Overall prices have only shown marginal improvements, with the latest monthly price index from Quotable Value showing that current prices are on average 1.6% higher than a year earlier.

The quarterly price index shows that at current levels prices are within 2% of the 2007/2008 market peak.

The measure for the average days to remains high at around 8 weeks in June, probably because a number of the properties which sold during the month had been for sale for an extended period of time.

Properties that are located in popular areas, are well-presented and correctly priced are attracting the most interest, often receiving multiple offers and selling for above average prices.

Napier Monthly Median Selling Price

Napier Monthly Sales Volume

The post A lack of listings is limiting Napier house sales potential appeared first on Cox Partners Estate Agents.

There is no doubt that buying (and selling) a home can be an intensely emotional process for some people. The
solution to a low stress successful property purchase is knowing where to find the answer for each challenge.

The more information you have, the more logic rises and emotion subsides, keeping stress at bay.

It is useful to get a team of trusted advisers to assist you to assess the pros and cons of purchasing the property you are interested in. These advisers might include a valuer, solicitor and a building inspector.

Having an army of family, friends and advisers plying you with their opinions will only lead to confusion. Never ask these people whether you should or shouldn’t buy a property or how much you should pay. There is too much responsibility attached to these answers. They will understandably be conservative. It is better to ask an expert.
Maintain the same few expert advisers throughout your search. This will help them offer the best possible feedback and build on their knowledge of the market.

The transaction history of the property you intend to buy and other sales in the immediate area can be found easily by companies such as QV (Quotable Value) who specialise in this service. And if you Google search a specific property you will find other details related to the marketing of the property.

A good solicitor can assist during this emotional time. Their role is to identify the issues that could go wrong and advise you accordingly. Because most people buy property infrequently, they don’t know what to look for before things go wrong. It’s your solicitor’s responsibility to tell you what you don’t know.

We always recommend obtaining a building inspection from a suitably qualified inspector. It’s also a good idea to attend the building inspection. This way you can talk to the inspector, so they can tell whether or not an issue they identify is a big or small problem to fix. What might appear to be a poor written report could be perfectly manageable, and the issues rectified without too much cost. By attending the building inspection, you will reduce your stress and not pass up the right property for you.

The location you buy in will have a massive impact on your happiness when you live there. We often recommend that buyers door knock the neighbours to get a feel for the area. If you do this, you may glean information the agents or vendors may not tell you or even know. Doing this you may decide you want to buy the house even more than you did before. Knowing you are buying in a desirable location with nice neighbours helps alleviate a lot of stress.

The informed buyer finds the often emotional process of purchasing a home so much easier than the unprepared and naive buyer. Finding experienced advisers and doing you homework is always worth the effort.

If you’re looking for a home call Cox Partners on 835-4321 anytime. We’d love to help.

The post Being a well-informed home buyer appeared first on Cox Partners Estate Agents.