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  1. #1
    Join Date
    Jun 2005
    Location
    Nelson NZ
    Posts
    3,863

    Default Nelson PIA September 05 newsletter

    NELSON PROPERTY INVESTORS ASSOCIATION

    SEPTEMBER 2005 NEWSLETTER

    PO Box 198 Nelson [email protected]


    Our next meeting is being held at the Ocean Lodge Muritai St Thursday 22 September. The meeting starts at 7.30pm with the usual optional meal at 6pm. This month we have our very own Seddon Marshall speaking on “What sort of future does Nelson have.” Seddon is a legend in his own lifetime having been totally immersed in Nelson property for over 50 years. If you want to know where we are headed, you have to look at the long wake people like Seddon has left behind him, to see it is deep straight and true. Follow the furrow and you will be on the right path to making a go of this business.





    THE MARKET

    I sometimes wonder if my view of the market is a bit like that of an airline pilot flying a massive plane into the side of a totally white mountain. The aircraft radars have a voice warning system that shouts Pull Up Pull Up. When the rescuers dig the cockpit voice recorders in the black box out of the wreckage these final words are recorded for all to hear.

    So are we headed for a big white snow covered mountain or will we be able to pull up. For sure no one seems to know were we are headed due to the lack of clear detail on the horizon. I get the feeling that the market is in fact pulling up and that we are not going to crash. Properties in hot demand (yes I am starting to get multiple calls about some properties) seem to be firstly the cheap ones. Even cheap one-bedroom flats in Victory (even I know how undesirable they are) seem to be getting plenty of interest, and are letting really fast. This is clearly a sign of an improving market compared with say two months ago when the phone would not ring. However the upper end of the market is still struggling. Recent vacancies in the $300 range in Richmond have had a small surge of enquiries. In a few cases the enquirers were being driven by sales of their own properties. I even recently had my first call, for what seems like years, from the UK seeking a house. Another driver in the market is some evidence of migration. Owners leaving for overseas are creating a significant percentage of new rentals. However I do not know of one tenant that has left to go overseas. I think this is creating the slight oversupply at the top of the market. Whilst we have not cleared the top of the mountain it sure looks like winter is being left behind and clear skies are about to spring on us again. Another sign I am seeing is a slight firming of prices at the bottom of the market for one and two bedroom properties. Perhaps the Government’s working for families package is starting to have an impact on market spending.



    WATER AGAIN

    Tenancy Services have moved the fence again and are now handing out several information sheets on water charges. One is displayed on their brochure stand with an official letterhead entitled T67 08/05. The number indicates that it was published August 2005. This brochure is at variance with T51 06/04 displayed on the DB&H web site that states that tenants are liable for the line charges if the special conditions as specified in the RTA are met. There is however another form T67 05/04 not on official letter head and only handed out on request. This handout states that if you want a decision on your circumstances you should apply to the Tribunal for decision.

    Now T67 08/05 states that in the republic of Nelson Tasman and perhaps Marlborough the daily line charge cannot be on charged to the tenant.

    T51 06/04 indicates that all other parts of New Zealand however can do this and makes no separate exclusion for the new republic of Seddon Shields. They make the claim that the fixed charge covers the cost of bringing the water to the land and the maintenance of the pipes dams. As we all know most lawyers are technologically challenged and can come up with some really strange reasoning. All of us who come from an engineering background know that in fact the water costs the council nothing; I have not observed meters on the intake to the water system. All of the money collected by water suppliers is in fact used to bring the water to the land. It is just that metering and usage is a clever way to apportion the use between the various users and as a water conservation measure. So my contention is that the reason for not charging for the fixed charges is based on an entirely false assumption. So where does this leave landlords. I suggest in conflict with their tenants.

    No clear instructions are given when this new interpretation comes into force and how to deal with existing tenancy agreements entered into detailing the tenant is liable for all water charges.


    I have personally been in tribunal this year and asked for a ruling. The Adjudicator refused to make a ruling for me despite the supply of T51 06/04 as evidence.



    FREE WEB ADVERTSING

    A new free service is available to all landlords. This is findA.co.nz. I have been using it for a couple of months now and have found it easy to use. You are able to upload digital pictures of your property onto the site (for FREE) along with written details about The property. The prospective tenants can search the site defining suburb, size and so on. Landlords can either publish their phone number on the site or they can get enquiries by easy to use email messages. I have been advertising the site address along with my classified newspaper adverts.

    The prospects are starting to search and make informed enquiries based on the pictures of the properties they can view on site. They can also set up a notify facility to let them know when those special properties at specified rents are available. They get an email telling them Tom, Dick or Harry has a four-bedroom house that permits dogs. I am now able to fob off the endless requests to ring people when their dream house comes in by referring them to the site.

    Next time you have a vacancy why not give it a try out. The more landlords listing on sites like this the easier it will get for us all.

    When in Australia recently several of the large property management companies indicated that they are using newspapers less and less to let properties.

    I do not think it will replace The Nelson Mail for a while but it might help to keep advertising prices down.



    RON HOY FONG

    In recent newsletters I have not recorded much about our previous speakers. But then Ron is an exception.

    One person said he was one of the most memorable speakers we have ever had at NPIA. I like to take notes but struggled to take it all in and was too scared to write it down in case I missed something. Just remember what Ron has done can be done by anyone. You just have to be passionate about property and believe in yourself. You also need to get yourself clued up on your particular market niche. I was impressed with his wisdom re investing in your own area. There is no future dreaming all the time about other cities where the streets are paved with gold. For those of you who want to hear more of Ron’s wisdom and take it in at a more respectable rate go and have a look at his Blogg. You can find Ron at https://www.propertytalk.com/content/blogcategory/51/139/

    Ron has figured that tenants like their houses to look nice. Real rocket science stuff eh. There is nothing like a good paint job, new nets and curtains, perhaps tart up the kitchen and bathroom and you are on your way to improving the value of the property. All tenants in the private market sector, vote with their feet. We all know that many good tenants will pay more for a nice tidy home. Here is a small cut from his blogg to wet your appetite.



    Cost of makeovers were budgeted around $100 per square meter, so the average 2 bdrm unit of 60 sqm would cost $6000. The price included the inside paint, curtains, door knob, light fitting, carpets, lino, tiling, and extra for plumbing when needed. painting the exterior was extra. After the do-ups the rental returns turn out better than 10% gross in many cases. If you saw the inside any of my places you would understand. Remember I was buying dog houses and paying only dog houses prices, then renting back out at the higher end of average prices.

    When I do places up I do it up totally with my colour scheme and a simple but pleasant interior design, yes see my DVD, which tells you where I purchased, how much I paid and after values plus the rentals, Many of the places came with a video trip of all the places visited by those who attended my seminar and witnessed the event. Most of those who attended on the day have since gone away making similar profit on each property. Perhaps not at the same pace though.


    Murphy's real estate laws

    Tenants have at least one relative get sick or die per month, so ... they will just have to pay you later.



    Tenants only lock themselves out in the middle of the night... or on Christmas.



    Every lost pet will find its way to your rental.



    A tenant's ability to see dirt and damage is much greater when they move in than when they move out.



    Everything in your rentals will break 100 times faster than in your own home.




    Disclaimer. Anyone stupid enough to act on advice or comments in this newsletter without thinking for themselves deserves to suffer the consequences.










 

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