Hi Kiwis,

I moved to your lovely country a few years ago and am very happy here.

One thing though that I'm amazed at and follow very closely is your property boom. Its amazing to watch a country fly down the path towards a crash seemingly with some kind of tunnel vision that nothing like this has happened overseas. Not only Ireland but the US and Japan have had very painful bubbles burst recently. All I read on here and other forums and in the media is that things are fantastic, prices are rising and everyone except the first home buyers are doing great and making a mint.

Prices in Auckland rising at 12% per year and nationally having jumped so much in the last five years it seems very similar to what happened in Dublin and Ireland from the late 90s to the peak in 2007. The banks are giving out loans to anyone with a few cents to their name, property investors are leveraging up to their eyeballs in some cases to build huge portfolios and the demand is far outstripping the stock of housing that has been built over the last few years.

You might argue that Ireland was a very different market and in some ways this is true, lax planning laws, low tax rates and the fact the market was overstocked with tons more houses then required. Plus an incredibly poorly regulated banking and mortgage broker industry compounded many issues. But the same underlying theme that prices are WAY overvalued in NZ is present.

So my questions are these...

Why doesnt anything see the burst coming over the horizon? Is it the white elephant in the room that nodoy wants to speak about until they've cashed in their investment property and made a killing?

Why do banks and brokers keep pushing more and more mortages to people with less and less deposit?

If prices continue at 12% per year in Auckland, does nobody think this is somewhat unsustainable and must come back down to a fair value?

What will people do when all the baby boomers and people retiring want to sell up and cash up for their retirement and suddenly the market is flooded with properties?

I just see no real assessment of the danger that is ahead, I see nothing but seminars on how to make money and people all convinced they can make a killing in property.

Or am I totally wrong to be worried and should just go down to the ANZ and grab $500K for a rental somewhere, shut up and get on with it.

Sean

Can a moderator please take a look and PM me? I get the locked out/not authorised message.

More and more apartments in Auckland city seem to be selling at auctions. I am uneasy about putting an unconditional offer on something that has a body corp. I am wondering what is the procedure that most people follow. Is it enough to check with the bank
whether they are willing to lend on a particular property? Is solicitor's approval also needed before the auction? Getting a pre-approval from banks doesn't cost anything but solicitor's work does and that is felt especially if bidding is not successful. Some banks could also require a builder's report although I don't think it makes much sense in case of apartments because the builder can never check the whole building.

Hi all

We are looking for recommendations for a property manger in West Auckland. Ideally we are looking for someone who manages properties throughout Auckland as we have other properties in another part of Auckland we will be looking to have managed over the next while.

if you have a property manager you would recommend we would appreciate hearing from you.

Thanks in advance
Vanessa

I am looking at a property that has 3 bedroom ex state house 100m2 on a 800m2 property. It is currently rented at $430 with a rent appraisal of $420-$440.

I am trying to estimate how much extra rent could be achieved by adding a 10m2 sleep out. Please let me know what you guys think.

China house prices creating headaches

Date June 18, 2013 - 3:46PM


China's house prices rose at the fastest pace this year in May from a year earlier, though the pace of monthly gains slowed, highlighting the dilemma facing the central bank as it balances the need to support the economy against holding down housing inflation.
Average new home prices in 70 major Chinese cities in May rose 6 per cent from a year earlier, after a two-year high of 4.9 per cent in April, according to calculations from data released by the National Bureau of Statistics (NBS) on Tuesday.
The rise was the sharpest since January 2011 when Reuters started to calculate the nationwide data.
Liu Jianwei, a senior statistician at the NBS, said however that easing month-on-month gains showed fresh signs of home price rises losing momentum in May, as existing government steps to cool the property market bite.


"There are still many cities seeing home prices rising and the property tightening campaign should continue to focus on implementation," Liu said in a statement.
Liu attributed the sharp year-on-year home price rises partly to the low base last year.
Evidence has mounted in recent weeks that China's economic growth is fast losing momentum with data showing weakness in May exports and struggling domestic activity.
But China's home prices have been on an upswing since around the middle of last year, and the rise has reignited concerns about property inflation. The government launched a fresh round of measures in March to try to cool prices.
On a monthly basis, prices rose 0.9 per cent in May, easing from April's month-on-month gain of 1 per cent, Reuters calculation showed. That could indicate the measures are having some effect, though their implementation has been spotty across the country so far.
The National Bureau of Statistics said new home prices in Beijing in May rose 11.8 per cent from a year earlier, compared with April's year-on-year increase of 10.3 per cent. Shanghai prices in May were up 10.2 per cent from a year ago, versus 8.5 per cent annual growth in April.
Gains in May in both cities were the fastest since January 2011.
China does not have an official index for nationwide home prices. Reuters started its weighted China home price index in January 2011 when the NBS stopped providing nationwide data, and instead only gave home price changes in 70 major cities.


Read more: http://www.smh.com.au/business/world...#ixzz2WXroomzm

Hi guys and gals, I have a commercial tenant who has just left my premises and essentially said he's got no money, no assets bar the clothes he's wearing and so he can't pay any more rent...

The full story: This is an accountant tenant at my Papakura, Auckland property. I fitted out the premises for him, putting in partitions etc. to his design. He signed a 6 year lease with a personal guarantee, limited to $20,000. So he's got 4 years to go on the lease.

He has spent all his money on crap. We were friends on FaceBook and in the 2 years since he started at my property, he and his wife have posted that they have:


So he gets behind in his taxes with the IRD... (how ironic is this for an accountant), they strip him of his tax agency status and so then he can't do tax stuff for his clients, the clients leave, his business folds...

So he tells me that he is exiting the premises, can't pay any more rent and is moving back home to where he'll do some accounts on contract basis for a firm.

Him and his wife have 3 young kids and a house in Pukekohe which is in a trust and apparently maxed out borrowings wise, along with the credit cards etc. He tells me he's taken the cars back, sold everything he can etc. and there's just no more money.

So now he's 3 months behind which is a bit of $9k's worth. It's approx $3k per month for the office space including outgoings and GST.

I've decided that I'm going to pursue him for this money, and bankrupt him if he can't pay. I have told him I am going to do this and he is just saying "Go ahead, but you won't get anything."

So, now my questions:

1) How do I actually go about bankrupting him?
2) Any ideas on cost of doing this?
3) If I say lodge some kind of claim for $9k, what happens when each month rolls by and the amount he owes goes up by $3k?

Any help appreciated.

Hi guys,

I'm currently with ASB, with a mortgage on 1 IP. In the past I've been turned down (through my mortgage broker) by Westpac without even looking at my mortgage application because I wasn't an existing customer and they didn't have any history with me. I know things will have changed with the current market, but is there any benefit to opening up a savings account with Westpac and chucking in $5k, and perhaps an auto-deposit of $100 p/w ?

A) Would this small amount of business have any benefit to me at all if in future I was to apply for a mortgage, and...

B) Is there any point in starting a relationship with another bank?

I've been told that you shouldn't look to 'divide and conquer' the banks until the 4th house or so (I think?)... not sure how solid that comment is.

Keen for any thoughts, suggestions and war stories!

-Cheers

As a private LL can I claim my time for tax purposes? I've never bothered with the normal day to day stuff like inspections and perspective tenant interviews and the like but on the weekend I spent three hours removing a broken door lock, sourcing and fitting a replacement. The 10 year old lock had snapped inside and I had to jimmy the door open with a couple screwdrivers to get the lock assembly out of the door. Then, of course, the model had changed and didn't fit exactly. So I had to drill out a new bolt hole in the aluminium frame and file out the housing till it was nice and snug.

Now if I'd hired a PM, who hired a locksmith who might have had it done in half the time but the call out fee + labour + PM fee + PM's 10% commission would have probably tripled the $130 I paid for the lock assembly (I reused the original handles and key barrel).

Am I allowed to claim $20 or so an hour for my time or does the IRD see my DIY nature as worthless?

I am selling a property, a 1990's hardiplank weatherboard house, one of the three bedroom 80sqm ones.
A prospective buyer banks with BNZ who told the buyer my house is listed as a leaky home.

I asked for clarification and the bank has come back with this:


I certainly haven’t had any problems in the 7 years I have had the place but it sounds like have a fairly loose criteria for loading houses into the database, such as being built in a certain era or someone in the neighborhood has had a leaky house.

My house isn't monolithic clad but I'm not sure if they are suggesting that or offering more information on leaky homes in general.

Has anyone encountered this before?

Do I have any rights or is my house guilty until proven innocent at the expense of a building inspector?

does anyone know if you can put more than one house on dunedin Area 3 - Lifestyle rules and if yes what are the rules ? or where do you find them

thanks

http://www.trademe.co.nz/property/re...-579231792.htm

Really, this is the best picture they could find to sell their rental to their ideal tenants?

Hi,

Has anyone used any painters in the Auckland area they would recommend (for interior) and just curious about an average cost. My house is 3 bedroom, 1 bathroom and 135sqm.

Cheers

Hi all.

I am wanting to make an offer on a house, but it's a multi offer situation and they want me to get a written offer in by a certain time and date. It's not a tender. I've registered my interest, and they know I will be offering, but getting everything signed and done up with my lawyer in time is going to be painfully difficult. Can they enforce this and reject my offer if it's not in time?

So anyone got plans on a 30m "dwelling".
Can you squeeze in 2 bedroom :)

It's difficult to turn on the television these days without seeing a slew of commercials for reverse mortgages. They feature past-their-prime celebrities such as Henry Winkler and Fred Thompson, extolling the benefits of "guaranteed tax-free income" for those 62 and over. What they don't tell you is that reverse mortgages can be dangerous and can put your biggest asset - your home - at risk.
A reverse mortgage really a misnomer. It is really nothing more than a regular mortgage, except that the loan proceeds are paid out to you in installments, rather than all at once. These plans mortgage the existing equity in your home, bleeding it down while it accrues interest on the growing debt. This mortgage does not have to be repaid until you either sell the home or die. Then the loan balance, interest and accrued fees are extracted from the sale proceeds. This type of loan can be beneficial in a very limited set of circumstances, such as allowing a senior to remain in his or her home, rather than having to sell it to pay for medical or other unexpected expenses.
In many circumstances, however, a reverse mortgage can be a risk to your financial security. Here are six dangers you should consider before signing on the bottom line.
1-Complexity
2-Pressure
3-Future Health
4-Eligibility for Government Programs
5-High Fees
6-Spousal Eviction
Reverse mortgages can be an important source of emergency funds for some seniors who would otherwise have to sell their homes to access their equity. There are several dangers to these plans, however, that can put your home at risk and sap your asset base.

For those that missed it last night.

Can you afford to buy a house? And, how much debt are you prepared to be saddled with? Sunday examines the housing boom.


http://tvnz.co.nz/sunday-news/strugg...-video-5466293

Just watched this (Sunday doco on Akl house prices) http://tvnz.co.nz/sunday-news/strugg...-video-5466293 and it got me thinking.

We are property investors with properties in the Manawatu and Wellington a PPOR in WEllington. We have considered retiring to Papamoa in the next few years (3-5).

Tony Alexander in that clip suggests that if Akl keeps growing at 12% for the next 3 or so years - then then halo effect will kick in and places like Papamoa will start to go up as well.

I also noticed the last time we were up there that there is a lot of new roading going into Papamoa and new sub-divisions going in.

I've always been confident that we could sell your Wgtn PPOR and GV$450 and buy and at or less to get a decent place within walking distance to the beach. We certainly could today. But I'm wondering if I'm running a risk that we may not be able to in a few years tim - Wgtn prices are going sideways at the moment.

I know it's crystal ball stuff - but I'm considering whether we should be be looking at buying something in the Papamoa area to be in the market - even if it's not the house we ultimately retire to. We'd benefit from the CG. I'd like to be at least covering costs with the rental though.

We have ample LVR - the bank would love us to spend more money My main concern I guess would be the stability of the rental market in the area and finding a competent property manager.

Something that has baffled me for years is what constitutes a townhouse in Christchurch ?

Remember Braziers advertising a block consisting of concrete block on the bottom, wood up top, peaked roofs built
in the mid 70's and advertising it as townhouses (may have been titled older townhouses). Maybe sale hype maybe not
but would have thought would have been called block of flats/units.

Wiki definition

A townhouse, or town house, is a type of medium-density housing in cities, usually but not necessarily terraced (row housing) or semi-detached. A modern town house is often one with a small footprint on multiple floors. The term originally referred to the city residence of a member of the nobility, as opposed to their country seat.


Cheers

iwik

Hi, I am looking at a place that has an easement from the 70's on the title. The easement is for a ROW that is in place (neighbours driveway to his house). What are the ramifications of having this easement in place. would I be liable for driveway maintenance etc? Thanks in advance. Regards GenY

Hi,

Tenants have been complaining of ceiling leaks after recent heavy rains in my 1979-built, iron-roof townhouse.
Plumber has gone into have a look and resiliconed around what was once a chimney which is what he thought might be the problem, it is still leaking.


I plan to move into the house after the tenancy is over and I hate leaking ceilings - lived in such a house once.


What would be the best way to investigate the leaky ceiling? Roofer? Any recommendations?

I've read that you are not (usually?) allowed legal representation at a TT hearing, but if you have a PM willing to go on your behalf, is that ok? The PM would be the same PM who has looked after the property for years.

my sons girlfriend is in a student flat, they get zapped by the light switch in the bathroom i have told her to contact the landlord but the all girl flat is a bit scared of him as he is a grumpy old coot and hasnt responded well to other problems they have had, who else would you recommend to contact? wet hands and dodgy switches dont mix

Quite a lot of vendors now seem to opt for Private Sales - probably in the hope to sell without agents fees. I came across one such property that I really liked but the vendor is somewhat unrealistic - he wants $380k, a good price would be $320k but I may consider up to $350k. It's been on trademe for at least a month now, apprently noone is willing to pay the asking price. If it was listed with an agent by now the agent would have conditioned the vendor to "meet the market". But with a private seller who doesn't want to hear anything below $380k what do I do? Even in this Auckland market where any doghouse sells at premium his price is way overshot. Yet he doesn't want to negotiate.Have you got any tips for persuading a private vendor to accept an offer?

My property manager has renewed a lease on a property before expiry for a fixed term without discussing any of my wishes as to preferred lease term , rental etc.
As well as poor management it looks like I am stuck with this arrangement, as tenant does not want to move? I think the notice period to an owner moving back to his home only applies to periodic tenancies?

Please can someone tell me why sections within a new development are so much expensive than similar sections in the area just outside the development. Also how will these new sections within a development compare to those outside once a council valuation is done?

Meant to be this huge housing shortage we hear about most nights on the news but for one can still
pick up two bedroom flats for under $200,000 - not sure of the average price - $250,000 ?

Supply and demand working at play ? (Lot of people moved out of Ch-Ch)

Any predictions when we will see the average price for a 2 bedroom flat in Christchurch reach $300,000 ?

And what factors will increase demand ? (greater influx of workers etc)


Cheers

iwik

I am thinking of purchasing a property. This comes with a 2 bedroom granny flat downstairs. I had a look at the unitary plan and it says this house comes under the following

ZONE - Residential - Mixed Housing

Does this mean it would be easier to get permission to convert the granny flat into a seperate legal unit? The council usually asks for contribution fee under the current regime, would that still apply in the unitary plan

Thanks

Source: http://www.stuff.co.nz/business/8797...-in-Queensland

More at
http://www.stuff.co.nz/business/mone...se-prices-fall

If you go to the bottom of the article then you can find out the latest property data for your area.