property update september 2013

2
Lending restrictions from 1 October Reserve Bank Governor Graeme Wheeler has announced that from 1 October banks will be subject to restrictions on high loan-to-value ratio (LVR) housing mortgage loans. Banks will be required to restrict new residential mortgage lending at LVRs of over 80 percent to no more than 10 percent of the dollar value of their new housing lending flows. “The LVR restrictions are designed to help slow the rate of housing- related credit growth and house price inflation, thereby reducing the risk of a substantial downward correction in house prices that would damage the financial sector and the broader economy. “The conventional mechanism to help restrain housing demand, while working on the supply response, would be to raise the Official Cash Rate (OCR), which would feed through directly into higher mortgage rates. “However, while higher policy rates may well be needed next year, as expanding domestic demand starts to generate overall inflation pressures, this is not the case at present. “We are concerned to ensure that specially designed lending products are not developed with the purpose of avoiding or undermining the LVR restrictions. The Reserve Bank expects bank senior management and bank boards to respect the spirit and intent of the LVR restrictions and to closely monitor the level of high LVR lending. Further details: http://www.rbnz.govt.nz/ House sales surge; achieving a six year high The Real Estate Institute of NZ announced that there were 6,777 dwelling sales in the month of July, up 14.7% on July last year and 10.5% higher than June. Real Estate Institute of New Zealand (REINZ) Chief Executive Helen O’Sullivan says, “It is the most active winter the residential real estate market has seen for a while, with the volume of sales higher than would normally be expected for this time of year.” July is usually one of the quietest months in the real estate calendar with new listings and sales at low levels. “As far as buyers are concerned the normal winter slow down hasn’t happened this year, with volumes up strongly on July last year despite school holidays occurring in the middle of month. The increase in new listings in the month contributed to buyer activity which coupled with the easing in prices suggests that the main constraint is very much one of supply. Stock levels across almost all regions are now particularly tight.” “The issue of housing availability remains a key for Auckland and Canterbury, but this is also now being seen in other parts of the country.” www.reinz.co.nz/ propertyUPDATE © Homenet Enterprises Ph: (04) 234 8006, E-mail: [email protected] SEPTEMBER 2013 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 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. Getting house insurance when buying in the Current Market… 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 [email protected] 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 Email Last month’s winner was: P. Powlesland of Ngaio Shane and Louise signed a contract to purchase a property before the recent earthquakes struck, which was conditional (among other things) on them obtaining finance to purchase the property. They then heard that insurers were putting a blanket hold on any new insurance in the Wellington region and thought they were going to have to cancel their contract based on their inability to get finance (as their finance was contingent on them getting insurance) which they were very disappointed about, as they loved this particular property. They spoke to their lawyer and agent who advised that there were ways around this, including taking over the vendor’s insurance policy as had been done in Christchurch after their earthquake. All banks require insurance to be in place before they will lend any funds pursuant to a mortgage. In the past, insurance was organised after confirmation of any finance condition in an Agreement for Sale and Purchase, but before settlement. Given the recent changes from full replacement insurance to “sum insured” insurance and the subsequent earthquakes, many lawyers and mortgage brokers are now suggesting that purchasers organise their insurance as part of their finance condition in their Agreement for Sale and Purchase, to ensure that: (i) That they can actually get insurance (which in the current market may involve transferring the vendor’s policy as referred to above); and (ii) The level of cover they are offered is sufficient to the bank. Purchasers will therefore only confirm their finance condition once these criteria are satisfied. This is to ensure they don’t get caught in a situation where the day before settlement the bank advises them that their insurance is not adequate and they therefore cannot draw their mortgage funds and consequently cannot settle their purchase. Claire Coe, Rainey Collins Lawyers www.raineycollins.co.nz and follow us on Twitter @RaineyCollins Andrea Skews M: 0220 SELL IT (735548) P: 04 4 SELL IT (735548) E: [email protected] M: 0220 SELL IT (735548) P: 04 4 SELL IT (735548) E: [email protected]

Upload: andrea-skews

Post on 22-Mar-2016

216 views

Category:

Documents


0 download

DESCRIPTION

House Insurance, House Sales Surge, win dinner for two at Logan Brown.

TRANSCRIPT

Page 1: Property Update September 2013

Lending restrictions from 1 OctoberReserve Bank Governor Graeme Wheeler has announced that from 1 October

banks will be subject to restrictions on high loan-to-value ratio (LVR) housing mortgage loans. Banks will be required to restrict new residential mortgage lending at LVRs of over 80 percent to no more than 10 percent of the dollar value of their new housing lending flows.

“The LVR restrictions are designed to help slow the rate of housing-related credit growth and house price inflation, thereby reducing the risk of a substantial downward correction in house prices that would damage the financial sector and the broader economy.

“The conventional mechanism to help restrain housing demand, while working on the supply response, would be to raise the Official Cash Rate (OCR), which would feed through directly into higher mortgage rates. “However, while higher policy rates may well be needed next year, as expanding domestic demand starts to generate overall inflation pressures, this is not the case at present.

“We are concerned to ensure that specially designed lending products are not developed with the purpose of avoiding or undermining the LVR restrictions. The Reserve Bank expects bank senior management and bank boards to respect the spirit and intent of the LVR restrictions and to closely monitor the level of high LVR lending.

Further details: http://www.rbnz.govt.nz/

House sales surge; achieving a six year high

The Real Estate Institute of NZ announced that there were 6,777 dwelling sales in the month of July, up 14.7% on July last year and 10.5% higher than June.

Real Estate Institute of New Zealand (REINZ) Chief Executive Helen O’Sullivan says, “It is the most active winter the residential real estate market has seen for a while, with the volume of sales higher than would normally be expected for this time of year.”

July is usually one of the quietest months in the real estate calendar with new listings and sales at low levels. “As far as buyers are concerned the normal winter slow down hasn’t happened this year, with volumes up strongly on July last year despite school holidays occurring in the middle of month. The increase in new listings in the month contributed to buyer activity which coupled with the easing in prices suggests that the main constraint is very much one of supply. Stock levels across almost all regions are now particularly tight.”

“The issue of housing availability remains a key for Auckland and Canterbury, but this is also now being seen in other parts of the country.”

www.reinz.co.nz/

Leaders Real Estate 1987 Limited MREINZpropertyUPDATE

© Homenet Enterprises Ph: (04) 234 8006, E-mail: [email protected]

SEPTEMBER 2013

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

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 1987 Limited MREINZ

Getting house insurance when buying in the Current Market…

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 [email protected] and include the following details:Subject: Logan Brown contestEmail: 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

Email

Last month’s winner was: P. Powlesland of Ngaio

Shane and Louise signed a contract to purchase a property before the recent earthquakes struck, which was conditional (among other things) on them obtaining finance to purchase the property. They then heard that insurers were putting a blanket hold on any new insurance in the Wellington region and thought they were going to have to cancel their contract based on their inability to get finance (as their finance was contingent on them getting insurance) which they were very disappointed about, as they loved this particular property. They spoke to their lawyer and agent who advised that there were ways around this, including taking over the vendor’s insurance policy as had been done in Christchurch after their earthquake.

All banks require insurance to be in place before they will lend any funds pursuant to a mortgage. In the past, insurance was organised after confirmation of any finance condition in an Agreement for Sale and Purchase, but before settlement.

Given the recent changes from full replacement insurance to “sum insured” insurance and the subsequent earthquakes, many lawyers and mortgage brokers are now suggesting that purchasers organise their insurance as part of their finance condition in their Agreement for Sale and Purchase, to ensure that: (i) That they can actually get insurance (which in the current market may involve transferring the vendor’s policy as referred to above); and (ii) The level of cover they are offered is sufficient to the bank.

Purchasers will therefore only confirm their finance condition once these criteria are satisfied. This is to ensure they don’t get caught in a situation where the day before settlement the bank advises them that their insurance is not adequate and they therefore cannot draw their mortgage funds and consequently cannot settle their purchase.

Claire Coe, Rainey Collins Lawyers www.raineycollins.co.nz and follow us on Twitter @RaineyCollins

Andrea Skews

M: 0220 SELL IT (735548) P: 04 4 SELL IT (735548) E: [email protected]

M: 0220 SELL IT (735548) P: 04 4 SELL IT (735548) E: [email protected]

Page 2: Property Update September 2013

Chris Ritchie Barrister & Solicitor

In legal matters your choice of lawyer matters

Sovereign House, Level 8, 22-28 Willeston Street, Wellington Phone 04 472 9711. Fax 04 472 9223.

[email protected] www.chrisritchielaw.co.nz

Personal and professional legal service at competitive rates. Meet me at the office or if it’s more convenient

I can come to you.

Waripori St Berhampore 3 $580,000 $570,000 John Sims Dr Broadmeadows 0 $370,000 $375,000 Nalanda Cres Broadmeadows 3 $400,000 $408,000 Nalanda Cres Broadmeadows 5 $540,000 $610,000 Hindipur Tce Broadmeadows 3 $325,000 $324,000 McKinley Cres Brooklyn 2 $410,000 $445,000 Forsyth Gr Brooklyn 4 $700,000 $664,000 Lakewood Ave Churton Park 5 $630,000 $670,000 Montrose Gr Churton Park 5 $630,000 $670,000 Furlong Cres Churton Park 3 $485,000 $490,000 Winsley Tce Churton Park 5 $695,000 $710,000 Furlong Cres Churton Park 5 $690,000 $701,000 Huxley Gr Churton Park 4 $570,000 $288,000 Westchester Dr Churton Park 5 $780,000 $840,000 Downing St Crofton Downs 5 $860,000 $851,000 Mark Ave Grenada Village 3 $485,000 $518,000 Mark Ave Grenada Village 3 $400,000 $410,000 Buccaneer Pl Grenada Village 3 $345,000 $350,000 Mark Ave Grenada Village 2 $380,000 $386,911 Domanski Cres Happy Valley 4 $650,000 $595,000 Te Anau Rd Hataitai 3 $630,000 $710,000 Evans Bay Pde Hataitai 3 $620,000 $496,000 Mertoun Tce Highbury 3 $750,000 $792,500 Buckley Rd Island Bay 2 $420,000 $460,100 Clyde St Island Bay 4 $600,000 $570,500 Buckley Rd Island Bay 3 $550,000 $580,000 Severn St Island Bay 3 $460,000 $556,000 Frobisher St Island Bay 3 $420,000 $440,000 Clyde St Island Bay 3 $610,000 $606,000 Cortina Ave Johnsonville 4 $455,000 $456,500 Tarawera Rd Johnsonville 2 $275,000 $235,000 Lynda Ave Johnsonville 3 $430,000 $392,500 Mclintock St Johnsonville 3 $550,000 $560,000 Nether Green Cres Johnsonville 4 $535,000 $573,000 Tolhurst St Johnsonville 3 $475,000 $480,000 Sargeson Way Kaiwharawhara 4 $1,200,000 $1,155,000 Tai Paku Paku Rd Karaka Bay 5 $1,150,000 $920,000 Versailles St Karori 3 $465,000 $557,000 Wavell St Karori 3 $400,000 $465,000 Joll St Karori 3 $570,000 $515,000 Kilsyth St Karori 4 $750,000 $725,000 Nottingham St Karori 3 $500,000 $743,500 Parkvale Rd Karori 2 $330,000 $388,500 Monaghan Ave Karori 0 $650,000 $750,000 Hurman St Karori 4 $690,000 $725,000 Buxton Ave Karori 3 $415,000 $470,000 South Karori Rd Karori 2 $370,000 $427,000 Upland Rd Kelburn 4 $1,100,000 $800,000 Kowhai Rd Kelburn 2 $690,000 $692,000 Glen Rd Kelburn 3 $720,000 $903,000 Lucknow Tce Khandallah 4 $680,000 $650,000 Ardross Ave Khandallah 3 $650,000 $621,000 Shalimar Cres Khandallah 4 $490,000 $570,000 Burma Rd Khandallah 4 $610,000 $530,000 Shortland St Khandallah 3 $700,000 $731,000 Lochiel Rd Khandallah 4 $1,200,000 $1,250,000 Calcutta St Khandallah 3 $650,000 $700,000 Calcutta St Khandallah 4 $670,000 $636,000 Gavaskar Pl Khandallah 4 $530,000 $536,000 Satara Cres Khandallah 4 $580,000 $522,000

Mandalay Tce Khandallah 3 $290,000 $268,000 Izard Rd Khandallah 3 $680,000 $670,000 Duncan Tce Kilbirnie 4 $415,000 $450,000 The Ridgeway Kingston 3 $425,000 $420,000 Maple Gr Kingston 5 $670,000 $731,000 Tiketike Way Kowhai Park 3 $520,000 $528,000 Colorado Gr Kowhai Park 3 $400,000 $447,500 Hinau St Linden 3 $280,000 $280,000 Rembrandt Ave Linden 3 $390,000 $396,000 Rua St Lyall Bay 3 $475,000 $470,000 Apu Cres Lyall Bay 3 $445,000 $545,000 Rodrigo Rd Melrose 2 $520,000 $565,000 Athens St Miramar 3 $530,000 $660,000 Tauhinu Rd Miramar 2 $455,000 $475,000 Broadway Miramar 2 $460,000 $395,000 Hobart St Miramar 3 $410,000 $399,000 Nevay Rd Miramar 4 $900,000 $850,000 Broadway Miramar 3 $435,000 $525,000 Totara Rd Miramar 5 $570,000 $650,000 Tauhinu Rd Miramar 4 $580,000 $726,000 Wexford Rd Miramar 3 $485,000 $421,000 Lyndfield Lane Newlands 2 $330,000 $346,500 Omega St Newlands 2 $205,000 $210,000 Newlands Rd Newlands 3 $380,000 $395,000 Archbold St Newlands 3 $345,000 $390,050 Bellringer Cres Newlands 3 $320,000 $323,000 Wakely Rd Newlands 5 $430,000 $430,100 Kentwood Dr Newlands 3 $390,000 $400,000 Kenmore St Newlands 3 $315,000 $355,000 Hiropi St Newtown 4 $495,000 $577,000 Mansfield St Newtown 3 $385,000 $468,000 Vasanta Ave Ngaio 4 $560,000 $550,000 Cockayne Rd Ngaio 4 $400,000 $508,000 Heke St Ngaio 3 $380,000 $480,000 Ngarimu Gr Ngaio 4 $430,000 $475,000 Orangi Kaupapa Rd Northland 4 $470,000 $3,725,000 Catherine Cres Paparangi 3 $400,000 $399,000 Rangoon St Rangoon Heights 3 $510,000 $520,500 Main Rd Redwood 2 $365,000 $450,000 Redwood Ave Redwood 5 $395,000 $415,000 St Johns Tce Redwood 4 $400,000 $352,000 Duval Gr Redwood 3 $495,000 $508,000 Robieson St Roseneath 4 $1,830,000 $1,680,000 Inglis St Seatoun 3 $740,000 $675,000 Ludlam St Seatoun 4 $1,475,000 $1,510,000 The Drive Tawa 5 $370,000 $376,000 Mahoe St Tawa 4 $440,000 $390,000 Collins Ave Tawa 3 $360,000 $350,000 Bell St Tawa 3 $245,000 $288,000 Franklyn Rd Tawa 2 $315,000 $315,000 Woodman Dr Tawa 5 $829,000 $835,000 Parliament St Thorndon 3 $600,000 $723,000 Grant Rd Thorndon 5 $1,130,000 $1,310,000 Portland Cres Thorndon 4 $500,000 $1,280,000 Cecil Rd Wadestown 4 $760,000 $895,000 Weld St Wadestown 3 $950,000 $907,000 Upper Watt St Wadestown 4 $375,000 $1,300,000 Upper Watt St Wadestown 3 $820,000 $900,000 Clifton Tce Wtn Central 4 $1,175,000 $1,040,000 The Terrace Wtn Central 14 $960,000 $1,400,000 Salisbury Garden Ct Wilton 2 $420,000 $327,000

Recent Wellington Residential Property SalesStreet Name Suburb Beds RV SOLD Street Name Suburb Beds RV SOLD

Need a hand protecting your investment property nest egg?For many owners, tenant and maintenance issues are, at best, an unwanted distraction... at worst, a nightmare!

Leaders Property Management delivers a service to nurture and enhance, including meticulous tenant selection, daily rent monitoring, quarterly inspections, prompt attention to maintenance, effective dispute resolution, and monthly statements from audited trust accounts for your complete peace of mind.

For maximum return on investment with minimum hassle, talk to us today. The rest of your life deserves it!

Contact: Marie Baker (04) 494 1174 or (0274) 838 815 Email: [email protected] www.leaderspropertymanagement.co.nz

PROPERTY MANAGEMENTL i c E N s E d u N d E R R E A A c T 2 0 0 8

0508 562 674 www.homeloanshop.co.nz

FREE MORTGAGE ADVICEto save ` moneyto reduce the ` hassle and stressto have ` choice of lenders and loan options

to save ` time to get the best ` adviceto deal with someone you can ` trust