Header Ad Module

Collapse

Announcement

Collapse
No announcement yet.

Valuits latest newsletter.

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Valuits latest newsletter.

    Hi Guys

    Valuits latest newsletter.

    Welcome.
    to Valu in Review for October 2004. This is a summary of news articles in the press over the last month. We hope you

    Read, learn, enjoy ..

    .. and happy investing!


    Special Christmas offer
    Been holding off on getting your depreciation apportionment done????

    Get a report completed between 10 November and 10 December and go in the draw to win a FREE Air NZ Mystery weekend for two valued at over $1100.

    Judges decision is final and no correspondence shall be entered into. To qualify the invoice must be paid by 20th December 2004. The draw will be made on 21st December and notification will be made in the Valu in Review following the draw date.


    Debt becoming a serious problem.
    A report released this month by the Ministry of Social Development shows NZ’ers owe $106 b. Of this approx 80% is mortgage lending.

    There are three primary concerns.
    - 16% of people owe more than what they own.
    - a trend to take out short-term loans to cover basic day-to-day living costs.
    - NZ households spend 10% more than they earn on average.


    Changes to “Skilled migrant” category of immigration.
    The Government had allowed for 20,000 new workers and their families to be allowed into NZ for the year ended June 2005. To date just 3,055 people have been accepted.

    While the interest in immigrating was high the entry barriers had been set too high to fill the shortage of skilled labour so the system was being enhanced with effect from 1 December.


    Interest Rates.
    Dr Bollard increased the Official Cash Rate for the 6th time this year by the expected .25% on 28 October to 6.5%. In his statement it appears that many commentators believe that there may not be another increase in the rate as expected in December. Economists are picking a reduction in the OCR of .25% by September next year.

    The lending banks are currently in a price war with the 2 year fixed interest rate falling from 7.75% (ANZ) to as low as 7.15% (BNZ) over the month. 90% of mortgages are now fixed and with the housing market slowing the banks are looking to attract and lock in as many customers as they can. It is believed that fixed rates could fall further early next year as the banks compete for market share.


    Inflation.
    The consumer price index rose .6% in the September quarter taking the annual inflation rate to 2.5%. The last time it was at this level was 18 months ago.


    Home ownership.
    The results of the AMP Home affordability research for the quarter ended September shows it is continuing to be more difficult to enter the housing market (8th consecutive increase in affordability), despite an easing in housing prices the effect on increased interest rates is not affecting the index. Notwithstanding the recent increases in the index houses are still more affordable than the boom in the 1990s.

    The Government is looking for a package to be included in the next budget to assist low and middle income families into their own homes. One suggestion which has been floated is a lump-sum payment of state assistance (e.g. family support, accommodation supplement). This has not necessarily been met by agreement from all those within the Government with other options being touted (no-deposit mortgages, state houses built for the public to buy, longer term loans). A previous Government incentive to help first time home buyers, the mortgagee insurance scheme launched about this time last year, has had limited success with loans running at approximately 50% of budgeted.


    Tenants damage to State houses.
    Just over 50% of the 63,500 rental properties of Housing New Zealand are damaged each year. The actual cost of repairs in 2003/04 was $18m. The cost has risen 68% in the last three years ($43m was spent on repairs over the 3 years). This includes properties being re-furbished so that they can be re-let. Only $5m of this was recovered from the tenants.

    A tenant in Hamilton city had to remove the newly employed “lawn mower” after a visit from the SPCA. The horse had been engaged to eat through bamboo stalks which his petrol mower could not handle!


    Boarding Houses.
    The IRD is looking at changing the way tax is calculated for people who take in boarders. The change is from calculating the tax based on the number of boarders taken in, to the amount of income received. The IRD is requesting feedback on the proposed changes.


    National Median House Price.
    Sept 03 Aug 04 Sept 04
    Sales 10,687 8,191 7,854
    Median Sale Price $215,000 $247,000 $250,000
    Median Days to Sell 31 31

    Auckland Region.
    During September the average house price fell $500 per day with the biggest drop being at the higher value end of the market according to Barfoot and Thompson sales statistics. Their average sale price in September was $414,164. According to the REINZ statistics the median house price in Auckland in September was $337,000.

    Waitakere City.
    The three yearly review of values by Quotable Value has seen land increase in value by 65% with an average overall increase in value of 48% in capital value. Leading the increases were Piha (70%), Herald Island (65%) and New Lynn (60%).


    New Plymouth waterfront.
    Recently a penthouse apartment was sold off the plans for $1.275m. This month a house build in the 1970’s and renovated in the 1990’s sold for $1.2m.


    South Taranaki.
    The region is experiencing a “critical” shortage of rental accommodation with long waiting lists according to rental managers.

    With the new Kupe oil field due to begin in the middle of next year 850 short term workers and up to 300 being employed full time will add to the shortage. The area is already seeing investors buying up housing stock. Rents have increased by approximately 15% in the last year for good quality 3 or 4 bedroom houses.


    Manawatu.
    Quotable Value has recently released the three-year review of valuations for the 14,128 properties in the region.

    Land values have increased on average by 66% while the average property has increased in value by 48%.

    For residential dwellings the average price is up 44% to $152,000. The average value for a residential section is up 54% to $40,000.


    Buller District.
    Buller has also had its review by Quotable Value with some properties increasing in value by more than 500% over the last three years. Westport and Reefton have experienced average residential capital value increases of 78%. Overall the district increased in value by 80%.


    Southland.
    The median house price in the district for the year ended September 2004 increased 38.9% (national average for the year was 16.3%) from $95,000 to $132,000.
    Regards
    "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx
Working...
X