Harcourts New Zealand Blog

Go beyond the farm gate to move up the value chain

Chanel Pillay — Thu, 05 Dec 2019 20:00:00 GMT

Farmers receive a relatively small percentage of the consumer dollar paid for their products and are always on the lookout for ways to increase their margins.

An obvious way to achieve this is by increasing the size of the operation. Economies of scale are present in most types of farming, but higher total production does not always lead to greater margins. And for smaller producers who are producing a premium product, this may not be an option or even desirable.

The alternative to scaling up the operation is to move up the value chain. Most of the consumer dollar is earned beyond the farm gate, so it makes sense to add more value before selling the product into the rest of the chain or directly to the consumer.

In the US, it was found that farmers who marketed food directly to consumers were more likely to stay in business than similarly sized businesses that marketed through traditional channels. In New Zealand and abroad, consumers now have more opportunities than ever before to buy directly from producers.

Many lodges, hotels and boutique accommodation providers throughout New Zealand offer gourmet meals made from ingredients that are locally and sustainably produced for patrons who are increasingly discerning about where their food comes from.

More and more Kiwi chefs value the paddock to plate experience because of its focus on sustainability and responsibility.
They believe in serving meat from happy, healthy animals and sourcing fresh vegetables, fruit and herbs from local producers.

For farmers, these niche markets offer a more direct, less price sensitive pathway to the consumer and one that is willing to pay a premium for high quality products.

Virtually unknown 15 years ago, farmers’ markets are now an established part of the retail scene. They offer consumers the ability to source fresh, locally produced products while providing smaller producers with an affordable shop front where they can sell
their products direct to the consumer at a higher margin.

Niche markets can be highly lucrative, and some farmers are successfully targeting niches within the domestic market such as restaurants and farmers markets. The challenge lies in achieving volumes sufficient to support profitable small-scale production,
but opportunities to increase volumes to a viable level are presented by online selling and the growing potential for export to niche markets overseas.

The rise in online research and shopping means busy consumers can now be more discerning than ever before about where their vegetables and meat come from, while enjoying the added convenience of having it delivered to their home.

Normally as a producer of the product, farmers are price takers not price makers. Ensuring the unique attributes of their products are recognised in the marketplace, will help farmers increase the value of their production.

Paying attention to what markets are willing to pay for and ensuring that this value is captured and communicated down the value chain is vital. Ultimately the product’s point of difference needs to stand out, whether it is on the supermarket shelves, a restaurant menu or in the online world, if producers want to attract a premium.

Reasonably clean – is it clean enough?

Chanel Pillay — Mon, 02 Dec 2019 20:00:00 GMT

The word ‘reasonable’ is found throughout the Residential Tenancies Act 1986 but this can be difficult to navigate because one person’s interpretation of ‘reasonable’ is not the same as another’s. One area that has proven troublesome for landlords and tenants is to establish what is ‘reasonably clean and tidy’ when it comes to vacating a property.

As per section 40 of the Residential Tenancies Act 1986, “the tenant must ensure that the premises are left reasonably clean and tidy and remove all rubbish”. A recent Tenancy Tribunal case clarified what ‘reasonably clean and tidy’ means:
The Tribunal stated that "the words ‘reasonably clean and reasonably tidy condition’ do not impose an absolute standard. This standard will vary according to the age and condition of the premises. There is no requirement that each and every individual item in
the premises be left ‘reasonably clean and tidy’, only an overall obligation in relation to the tenancy premises. Also, a tenant generally should not be expected to keep the premises any cleaner and tidier than they were at the commencement of the tenancy."

Harcourts property managers conduct thorough vacating inspections, comparing the ingoing and outgoing reports to establish the condition of the property when the tenant took possession and when the tenant vacated, using photographic evidence where possible. If some items in a property are not clean when a tenant vacates, a property manager will request that these items are cleaned and if necessary, apply to the tribunal for cleaning costs. We are finding, however, that we may not be awarded the cleaning costs, as the tribunal has stated that there is no requirement for each and every item to be clean.

Landlords should be aware that some Adjudicators are stating that landlords should expect to professionally clean a property between tenancies. We consider this acknowledgement that ‘reasonably clean’ is not actually considered clean enough for the
commencement of a tenancy and we tend to agree. To hand over a ‘very clean’ property at the commencement of a tenancy is the best possible start to a trouble-free tenancy. The opposite can also hold true for the beginning of a troublesome tenancy, something good landlords and property managers avoid. Fortunately, many tenants do leave the property in a very clean and tidy state and professional cleaning to take the property from ‘reasonably clean’ to very clean is not always required.

You can view the tribunal case here.

James' and Charlotte's Journey to Business Ownership with Harcourts

Chanel Pillay — Thu, 28 Nov 2019 01:07:50 GMT

In 2009, Charlotte and James Marshall were high performing sales consultants working 7 days a week for another real estate company and looking for the next step in their real estate careers. “We were ready to make the move into business ownership, but we didn’t really know where to begin,” said James, “so we shopped around and looked at all our options.”

Harcourts offered the Marshalls the technology, processes and people to bridge the gap between sales consultant and business owner.

“Harcourts had the complete package – everything we needed to go from top sales consultants to successful business owners,” said James. “It was like being given the playbook and Harcourts’ people were always there to help. They made the transition easy.”

Charlotte and James love a challenge, so they started their business at the tail end of the Global Financial Crisis. “I can still remember it,” said Charlotte. “We leased our office in Epsom and there were just three people in it, the two of us and our PA.”

It was a big step and there were challenges, but the Marshalls have never looked back. “We’ve built a hugely successful business that now employs 40 people and we haven’t worked weekends in years. But it’s not just about our success – it’s also been incredibly rewarding to create an environment where other people can succeed.”

2019 marks 10 years since the Marshalls opened the doors to Harcourts Charlton Realty in Auckland – with busy offices in both Epsom and Mt Eden. “It’s quite a milestone,” said James, “and an opportunity to look back with real satisfaction at what we’ve achieved. Harcourts has been a big part of that success. They’ve been with us the all the way.”

The Harcourts Charlton Realty team

What does your real estate future hold?

As a new business owner, Harcourts provides you with the depth of experience and resources to build a profitable business, one that can ultimately grow into a highly valued and saleable asset.

Opportunities are now available in Ponsonby, Remuera, Mission Bay and 10 other Auckland locations.

If you’re ready to take the next step in your real estate career and secure your future click here to find out more, or contact Mark Morrison, Auckland Franchise Development Manager directly on 021 0272 0270 or m.morrison@harcourts.net.

Top ways to add value to your garden

Chanel Pillay — Tue, 19 Nov 2019 20:00:00 GMT

Spring and summer are a popular time to sell your home, but where do you begin? Most people will spruce up their property by decluttering and cleaning their house, but many people don’t realise how much impact their garden can have. Here are some easy ways to help ensure your garden adds value to your property before you put it on the market.

1. Get the basics right
The outside of your home is just as important as the inside when it comes to selling your home. An attractive garden can add value to your home while a poorly kept garden will detract from it. Tidying and doing some basic maintenance on your garden is a great way to start. A well maintained lawn will enhance the appearance of your home and complement the rest of your garden. Check if fences and trellises need repairing, trim shrubs and trees, cut back dead growth and clear away any debris remaining from the winter months.

2. Brighten it up with colour
Once your garden is shipshape, you’re ready to start turning it into something potential buyers will love. Potted flowering plants are a simple way to add colour to any size garden. Spring and summer are a great time to show your garden off to its full potential to help maximise your selling price.

3. Focus on first impressions
If time or budget are an issue, focus on the areas that buyers will notice first. Don’t underestimate the value of street appeal.
First impressions really do count, so always start with your front garden and entrance area.

4. Add a point of difference
Why not add something that sets your property apart from the rest. A well organised garden shed, delightful play area for the children or lovely seating area in the garden can all go down a treat. Remember some features won’t appeal to all buyers, but if they are well presented and cared for, they will add value for the right buyer.

5. Freshen it up with paint & stain
If you’re on a tight budget, nothing freshens your property up like a good coat of paint or stain on fences, decks, sheds and other wood in the garden. Adding value to your home through the garden doesn’t have to break the bank.

6. Take living outdoors
If you are going to invest, spend your money on good quality patio, paving or decking. It will enhance the overall appearance of your outdoor space and encourage buyers to visualise themselves entertaining or dining alfresco. Good outdoor lighting also adds ambience and makes the space usable during the warmer evenings.

7. Style your garden with furniture
You wouldn’t show a room to a potential buyer without any furniture in it, so why show a garden without a table and chairs? The right furniture will help buyers imagine themselves sitting outside enjoying those sunny summer days ahead.

8. Make it feel secure
If the people viewing the house have pets or small children, they will want a garden that is fully secured. Investing in secure fencing, walls or gates, can make your property appeal to a wider range of potential buyers.

9. Keep it private
If your home is overlooked by other homes or gardens, you may want to add hedges or trees in key locations to provide privacy. Sails or retractable covers will also provide some privacy and have the added benefit of offering protection from the sun. Make sure they are clean and in good working order.

Property Focus November 2019

Chanel Pillay — Mon, 18 Nov 2019 00:33:28 GMT

This issue of Property Focus features:

Top ways to add value to your garden
Helping grow the next generation

Help us protect tenants, landlords & property managers

Chanel Pillay — Mon, 28 Oct 2019 19:31:49 GMT

New Zealand is one of the few countries in the OECD that does not regulate its property managers. Property managers are the gatekeepers of housing for some of New Zealand’s most vulnerable residents.

With home ownership at its lowest level in 60 years and the demand for rentals increasing, the Real Estate Institute of New Zealand (REINZ) is calling on the Government to formally review the need to regulate the property management industry, including public consultation, and announce its recommendations for reform before the 2020 election. Harcourts fully supports this initiative
by REINZ.

Harcourts and REINZ believe that regulation is necessary to protect tenants, landlords and the reputations of those property managers who are acting professionally.

Why should property management be regulated?
The impact of poor property management practices is often reported in the media and is supported by research carried out by other groups who have called for regulation. Despite these reports, the changes in home ownership levels and demand for rentals in recent years, comprehensive public consultation on the need to regulate property managers has not been undertaken by the government since 2009.

No regulation means:

Anyone can set up business as a property manager, without any experience or qualifications.
Property managers don’t have to hold funds in a trust account.
Property managers don’t have to hold insurance.
Money collected by property managers can be paid into the property managers personal account.
There is no compulsory code of conduct for property managers to keep them accountable.
There is no clear mechanism to remove poor performers from the industry.

Some examples of the damage caused by a lack of regulation:

According to liquidators, a property manager allegedly went out of business owing around $358,000 to 67 landlords.
A property manager allegedly admitted to a Parliamentary Select Committee that she was asking tenancy applicants to provide their bank statements to see where they were spending their money.
A property manager allegedly charged a tenant $4,140 as bond money and two weeks rent in advance, but failed to refund the amount when the tenancy application was rejected. View the Tenancy Tribunal Order here.
A property management company allegedly failed to lodge tenancy bonds and provide tenants with compliant insulation statements. View the Tenancy Tribunal Order here.

What could regulation look like?

Regulation could require property managers to have:

A minimum level of education to operate, such as the NZ Certificate in Residential Property Management.
Ongoing education obligations to ensure that they stay up to date with law changes.
Police or background checks before operating.
Tenant and landlord funds held in a trust account.
A mandatory Code of Conduct or set of standards to keep them accountable.
Fines or sanctions applied if they don’t follow the Code of Conduct or standards.

Together with REINZ, Harcourts is committed to protecting tenants, landlords and the property managers who do act ethically and transparently, by advocating for the regulation of the residential property management industry.

In response to the property management industry becoming deregulated over a decade ago, Harcourts offices maintained professional standards and our offices continue to hold rental funds in audited trust accounts and hold business insurance that protects our people and clients. Harcourts has its own accreditation programme that ensures our property managers maintain a high level of service and attend Harcourts and industry training annually. Harcourts also supports our property managers who are working towards the NZ Certificate in Residential Property Management (level 4).

If you want to support this call for change, you can vote and share your story at acallforchange.co.nz

Cut the cost of your mortgage

Chanel Pillay — Tue, 17 Sep 2019 21:00:00 GMT

Here are some tips for trimming the cost of your mortgage from our partners at Mortgage Express.

As a property owner, paying off your mortgage before you retire is important. Once you hit retirement age, the last thing you want is to still be saddled with debt. Here are some ways to help reduce your total mortgage and essentially help you pay less for your property.

Shorten your term
Reducing your mortgage term to 25, 20 or even 15 years shaves thousands of dollars in interest off the total. Even reducing it by one year can save you money.

For example, if you borrow $500,000 at 4.00% interest over 30 years, your interest on a principal and interest loan amounts to $359,348*. Shorten your mortgage term to 25 years and you reduce your total interest to $291,755*. Of course, this means your regular repayments will increase, so make sure your budget can accommodate this or you’ll need to alter your spending habits.

Make additional payments
If you can’t afford to shorten your mortgage term, keeping a portion of your mortgage on a variable rate or having a revolving credit mortgage, which works much like an overdraft, may be the answer.

Look out for refinancing deals
Look for refinancing offers with more flexibility or a better interest rate. Be sure to factor in any costs for refinancing when considering this option.

It’s worthwhile reviewing your mortgage on an annual basis to ensure you’re getting the best deal. Your mortgage specialist can do a financial health check and help you find savings.

If interest rates drop, keep repayments at your current level, rather than be tempted to spend the savings. By doing this, you’ll shave off a substantial portion of your loan principal.

Each product provider has different policies and costs around paying extra amounts off your loan, so get in touch with your local mortgage Express adviser to find out more. You’ll find additional tips and tools at mortgage-express.co.nz/mortgages or call 0800 226 226

While all care has been taken in the preparation of this publication, no warranty is given as to the accuracy of the information and no responsibility is taken by Mortgage Express Limited for any errors or omissions. This publication does not constitute personalised financial advice. It may not be relevant to individual circumstances. Nothing in this publication is, or should be taken as, an offer, invitation, or recommendation to buy, sell, or retain any investment in or make any deposit with any person. You should seek professional advice before taking any action in relation to the matters dealt within this publication.

*This is an indicative amount only based on the loan amount and interest rate selected. The calculations assume a constant interest rate for the life of the loan, however rates will change over this time and as such the calculations are a guide only. A Disclosure Statement is available on request and free of charge.

Should you sell first or buy first?

Chanel Pillay — Mon, 16 Sep 2019 21:00:00 GMT

When you’re looking for a new home, one of the first things you need to consider is the order of events – do you sell your existing property before you buy, or after? Here are some factors to consider before taking the plunge.

Buyer’s market or seller’s market?
When buyers are plentiful, but properties aren’t, homes generally sell quickly. In a seller's market, there is less risk associated with buying first and then selling your existing home. However, sellers in this kind of market may be less likely to accept an offer that is conditional upon you selling your home, so you could end up owning two properties for a period of time.

The average time it takes to sell a property varies from region to region and from month to month, so it’s important to talk to your sales consultant to get advice about current market conditions, recent comparable sales in your area and the possible demand for your property before making a decision to buy first.

Keep in mind also that in a seller’s market there will be more competition, so you can expect to pay top dollar your new home.
The good news is that you’ll have the peace of mind that comes from finding the right house to buy before selling yours.

Do you know how much you can spend on your next property?
Until you sell your property, you may not know exactly how much you’ll have to spend on your next one. In a buoyant market, you could easily have unrealistic expectations when it comes to the value of your own property. Your sales consultant can help you get a realistic picture of your property value by preparing a comparative market analysis of what similar properties have sold for in your area in recent times.

Are you a cash buyer?
If you choose to sell first, you will instantly become a cash buyer and be in a much stronger position to buy as soon as you find what you want. Do your homework on the market and area that you are looking to buy in so you’re ready to buy when the right property comes up.

Have you found your dream home?
Buying a new home is an emotional decision. If you want to follow your heart and buy that dream home before selling your current home, make sure you’re well informed. A good sales consultant will provide quality advice for your unique situation. If you are looking for a very specific type of property and it becomes available, it could be a good move to snap it up even if you haven’t sold your home, but there’s
no downside in getting expert advice before you do.

Are property prices are going up?
If you’re in a rising market, it could make sense to buy your new home first and negotiate a longer settlement. Your current property could potentially rise in value during the settlement period, allowing you to earn more when you sell it.

Are property prices falling?
Falling property prices can work in your favour as well if you can attract an interested buyer before prices drop further, leaving you free to purchase your new property at the lower end of the market cycle. However, falling property prices are also an indication of a slower market so it could take you longer to sell your existing property.

At the end of the day, your best course of action is to work with a real estate professional who can provide you with the local knowledge and insights you need to make an informed decision for your specific circumstances.

Property Focus September 2019

Chanel Pillay — Sun, 15 Sep 2019 21:04:30 GMT

This issue of Property Focus features:

Should you sell first or buy first?
Cut the cost of your mortgage

Rural lending tightening despite record low interest rates

Chanel Pillay — Wed, 28 Aug 2019 21:00:00 GMT

Interest rates are at an all-time low but access to funding for rural property is becoming more difficult. The Reserve Bank’s proposal to increase capital requirements will reduce the banks’ ability to lend, at least until their reserves are built up, and could increase the cost of capital as the banks move to protect their margins.

A restriction on lending ability means banks are scrutinising which sectors they lend to, looking for those that offer better returns and less risk. Agriculture is seen as risky, particularly dairy farmers who are already carrying high levels of debt. Many will not be in a position to absorb an increase in their cost of capital.

Over 14% of the total private debt in New Zealand is in agriculture, and over 65% of this is being held by the dairy industry. Farms with high level of debt struggle to make a profit even when dairy prices are good. It is estimated that a third of dairy farms are operating near break even.

While banks have been moving away from dairy lending, loans for horticulture have been on the rise. This reduced tolerance for risk on the part of the banks has also been reflected in a move away from interest-only loans and an increasing expectation of principal and interest repayments.

The Federated Farmers May 2019 banking survey showed that farmers are feeling more pressure from their banks than they have at any time since August 2015. This is largely due to the perceptions of farmers in the dairy industry. 16% of all farmers surveyed said they felt under increased pressure which was up 5% from last November while 20% of dairy farmers said they were under extra pressure.

A shortfall of capital could also impact on the ability of the rural sector to address emerging opportunities and threats. With the effects of global warming already being felt, the need to invest in technology to optimise returns and minimise the use of resources has never been greater.

Sources:
Farmer’s Weekly, ANZ’s rural manager questions capital call, 14 June 2019
Rural credit squeeze putting pressure on farmers, Findex press release, 4 June 2019
Federated Farmers survey, May 2019
Interest.co.nz, Rural News, 6 June 2019

Residential Tenancies Amendment Bill (No 2)

Chanel Pillay — Thu, 22 Aug 2019 20:38:15 GMT

New tenancy legislation was passed on 30 July 2019 which will affect landlords and tenants. These changes take effect on 27 August 2019. The bill amends the Residential Tenancies Act 1986 (RTA) and addresses tenant liability for damage, unlawful residential premises and contamination of rental properties.

Tenant liability for damage (and insurance)
There has been confusion in the property management industry since 2016 when a Tenancy Tribunal decision found that a tenant who damaged a rental property ‘carelessly’ could not be expected to pay the cost to repair. Prior to this, the expectation was that if a tenant caused the damage, they paid for the repair.

This amendment addresses a tenant’s liability for a careless act that causes the destruction of, or damage to, a property but limits their liability to a maximum of four weeks rent or the landlord’s insurance excess, whichever is lower.

Tenants get the benefit of a landlord’s insurance claim if they carelessly damage a property.

From 27 August 2019, a landlord must include information about the insurance for the premises in every new Tenancy Agreement. If they do not, this is deemed to be an unlawful act and they can face a penalty of up to $500.

The information must stipulate whether or not the property is insured and if so, what the excess amount is. This statement must also advise a tenant that a copy of the insurance policy is available for them to review upon request.

For existing tenancies, insurance information and/or a policy document must be provided within a reasonable time frame if requested.

Harcourts recommends:

An insurance excess for landlords of no more than four weeks rent. If an insurance excess is higher, then the landlord is effectively ‘self-insuring’ for the difference, as a tenant’s liability will only extend to four weeks rent.
Landlords provide their property manager with a copy of their insurance policy. Note that landlords must advise tenants (or property manager) within a reasonable time frame if there are any changes to their insurance policy, particularly any change to the amount of the excess and/or whether or not the property is insured.
Redact any personal information from an insurance policy before sending to a tenant or property manager.
Landlords should consider insuring against malicious or intentional damage. A policy such as this may also cover loss of rent. Speak to your property manager or insurance broker.

What a landlord can expect from a Harcourts Property Manager:

A request for a copy of the insurance policy.
Insurance information to be recorded on all new Tenancy Agreements from 27 August 2019.
A Variation of Tenancy is prepared for future rent increases so that the four weeks rent is calculated on new rent and not limited to the lesser amount.
Educate tenants that the landlord’s insurance may cover damage they cause, but they should inform the landlord as soon as an incident occurs, rather than wait until the end of the tenancy. This awareness for tenants may help prevent insurance companies from claiming multiple excesses for multiple events at an end of a tenancy, when the Act limits a tenant’s liability to four weeks rent or insurance excess, whichever is lower.

Note that this change does not cover any intentional or malicious damage that a tenant may cause. Insurance companies are unable to pursue tenants for the cost of damage unless it was intentional or resulted from an act or omission that constitutes an imprisonable offence.

Unlawful residential premises
Prior to 27 August 2019, tenants living in unlawful premises such as sleep-outs or garages were not always protected by the Residential Tenancies Act. Under the new Act, the definition of ‘residential premises’ has been revised. Now, regardless of whether the premises can be legally resided in, they will be under the jurisdiction of the RTA, giving the Tenancy Tribunal full jurisdiction over cases concerning unlawful premises.

It is important to note that under the RTA, landlords must comply with all legal requirements that relate to buildings and health and safety before the start of a tenancy.

At Harcourts, we do not manage properties that do not meet the relevant laws and bylaws, however, if landlords are in doubt about any obligations under an Act, or as to whether a property is lawful, they should take immediate action to investigate and remedy any breach.

Contamination of rental properties
The Government will develop new regulations to prescribe the acceptable level for methamphetamine contamination over the next 12-18 months.

Since the Gluckman report was released in May 2018, Harcourts Property Managers have been operating under a great deal of uncertainty with regards to testing residential rental properties for methamphetamine. Prior to the Gluckman report, methamphetamine levels that exceeded the NZS 8510:2017 standard of 1.5 µg/100 cm2 (micrograms per 100cm squared) were considered a health risk. However, the Gluckman report stated that exposure to methamphetamine levels below 15 µg/100 cm2 would be unlikely to give rise to any adverse effects.

New regulations will also prescribe the process for testing for contaminants, including when to test and the decontamination process. Once these regulations are in place, it will be an unlawful act to knowingly rent contaminated premises above the prescribed level.

Until then, it is business as usual and Harcourts recommends that, in many cases, testing for methamphetamine should continue between tenancies or as otherwise recommended by a property manager.

The insider's guide to buying or selling at auction

Chanel Pillay — Thu, 18 Jul 2019 20:44:32 GMT

Whether you love the thrill of an auction or your knees tremble at the thought, auctions have become the preferred method of selling property in most of the major centres across the country.

For those who are new to the process, buying or selling at auction can appear daunting. Don’t be put off! There are many advantages, and a few tips and tricks, that you should know about before entering the auction room.

The advantages of auctions for the seller
As a seller, an auction offers you the opportunity to achieve the best price in the marketplace in the shortest possible time. Here are some of the many reasons why selling at auction has become so popular:

Marketing without a fixed price increases the number of cash-in-hand buyers who will look at your property.
Buyers come to an auction with their maximum price in mind as opposed to focusing on how low they can negotiate the price down to.
Auctions allow buyers to determine the value of the property rather than relying on a sales consultant or a valuer, which can potentially result in a price that is too low and leaves money on the table, or too high and the property remains on the market for an extended period of time.
Auctions attract the best buyers in the market, the ones that are cashed up and ready to purchase on the day without imposing any conditions on the seller. A third of all conditional contracts fail to result in a sale which can be discouraging.
Conditional buyers are not excluded from auction. If the seller doesn’t get a suitable figure at auction, there is still the opportunity to have a conversation with conditional buyers afterwards.

What to expect when you sell at auction
Your sales consultant will guide you through the pre-auction and auction process which should include:

Informing you about what is happening in the market, specifically around your area and in regard to properties that are similar to yours.
Taking you through every element of the marketing plan, from the images and text for the advertising through to
the scheduling of open homes.
Keeping you informed with daily updates and weekly face-to-face meetings.
Providing you with a written report on the marketing campaign and interest from prospective buyers.
Helping you set a realistic reserve price.

Remember, you’re in control as the seller. You set the reserve. If bidding does not meet the reserve, you can decide if you want to enter negotiations.

Getting prepared to buy at auction
A common perception is that auctions are good for sellers, not buyers, but this is not the case. As a buyer, you know exactly who your competition is and the negotiations are out in the open for everyone to see. If your bid is successful, the contract is signed then and there, and property is yours with no further negotiations.

To make the auction process work for you, it’s important to arrive with your homework done. Here are some suggestions on how to prepare to buy at auction:

Have your finances organised prior to the auction date so you know exactly what you can afford to bid. If you’re successful on the day, you’ll be asked to sign the sales agreement and pay a deposit, which is typically 10% of the purchase price.
Organise a building inspection of the property you’re bidding on and have your solicitor review the property title and all legal matters related to the prospective purchase.
Review the auction documents beforehand.
Research the local market so you can accurately assess the market value of the property. You may also wish to obtain an independent property valuation.
If you’re new to the auction process, attend a few auctions to see what goes on before attending the one for the property you’re interested in.

A buyer can submit a pre-auction offer to the property owner for their consideration. If they are willing to accept the offer, the auction date may be brought forward.

It’s important to let the sales consultant know you are interested in the property so if another purchaser submits a pre-auction offer and the auction is moved forward, you’ll be contacted. The reserve is set at the offer figure and the auction starts with that as the opening bid.

If no higher bids are received, the property is sold at the offered price, but if other buyers bid, the property will be sold to the highest bidder.

Regardless of whether you’re a buyer or seller, the more research and preparation you do prior to auction, the more likely you are to put your best foot forward on auction day.

Property Focus July 2019

Chanel Pillay — Tue, 16 Jul 2019 23:58:07 GMT

This issue of Property Focus features:

The insider's guide to buying and selling at auction
Bidding at auction: Tips and tricks from a champion auctioneer

Building wealth through property investment

Chanel Pillay — Tue, 25 Jun 2019 20:28:11 GMT

Owning property is an excellent way to build wealth. Historically, property has been a less volatile investment with real estate values invariably tracking upwards over time. What’s more, you have the added benefit of being able to “leverage” your existing real estate investment to buy an investment property using borrowed money and grow your property portfolio even further.

Using equity to grow your investment portfolio
How much equity do you have in your home or investment property? Enough to fund your next property purchase and grow your investment portfolio?

If you’ve owned your property for some time and provided you have the means to service a mortgage, you may be able to access the equity in your property to fund the purchase of your next property. Equity is the difference between your property’s value and the amount you still owe on your mortgage. It’s essentially the bit you “own” of the property and it can be used as a deposit to buy another property.

If you’re buying a residential investment property or you’re using a residential investment property you already own as security for a new loan, you’ll generally need at least a 30 per cent deposit. Instead of having to save up the cash for the deposit though, you could use the equity in your existing property to purchase another property.

Calculating the equity in your property
To calculate how much equity you have, you’ll need to know the market value of your property. You can use the valuation on QV or get a registered valuation of the property to determine its market value. You’ll also need to know how much you still owe on any lending secured by the property, which you can obtain from your lender.

Lenders will determine how much you are able to borrow by looking at a combination of your equity and income. Different lenders will have different lending policies and the combination of equity and income may vary from lender to lender.

Your potential rental income from the investment property you’re planning to buy will be included in the lender’s servicing calculations when determining your borrowing capacity. Contact a Harcourts’ Property Manager to arrange a rental appraisal to help you determine the likely rental income from the property.

You’re required to have at least 20 per cent of equity in your existing property after new lending is taken out if you’re using the equity in your family home, or 30 per cent equity if using your existing investment property. That means you could borrow up to 80 per cent of the value of your family home and 70 per cent on any investment properties you own, based on current loan to value restrictions.

If you’d like to find out more about accessing the equity in your property and unlocking your opportunities to grow wealth through property investment, contact Mortgage Express and one of our advisers will get back to you within 24 hours. A Disclosure Statement is available on request and is free of charge.

How to add value in the kitchen without breaking the bank

Chanel Pillay — Fri, 31 May 2019 03:21:03 GMT

If you’re planning on selling your home, the kitchen is a great place to start to add value. The kitchen is one of those spaces that can make or break the sale for many buyers, but before you make the decision to totally gut your kitchen and start again, here are some tips on how to get the best out of your existing kitchen without breaking the bank.

1. Ease and flow
First ask yourself if your kitchen functions well or are there some things about it that have always driven you crazy. Is the pantry too small, is the dishwasher too far from the sink or the rubbish bin, is there never enough storage or are the cupboards too high? Consider whether moving an appliance or rejigging those cupboards could significantly improve the flow of your kitchen. Also, think carefully about what you are going to include as chattels in the kitchen. Anything difficult to replace that is a key part of the kitchen should be included in the sale if possible.

2. A good clean and a lick of paint
One of the simplest ways to freshen up your kitchen is with a coat of paint. Keep it light, airy and neutral – be sure to pick a shade that works with your existing counters and cabinets. Ask for advice at your local paint shop or when in doubt, white is usually a safe bet. A professional clean is a worthwhile investment and should include ceilings and walls. Fly spots and food splatters are big detractors to an otherwise sparkling kitchen.

3. Update your hardware
Updating your cupboards with new handles can give your kitchen a more contemporary feel, but make sure they are still in keeping with the overall style of the room. A country style kitchen with traditional wooden cupboards for example won’t suit the same hardware as a sleek minimalist kitchen.

4. Declutter storage spaces
Make sure your cupboards and open shelves are clean, orderly and decluttered. Potential buyers will be looking inside your cupboards, and if they are overflowing it gives the impression that the storage space in your kitchen is inadequate. The same goes for the pantry. Pare back the contents until you have some open space on each shelf. Organise what’s left into a set of matching food storage containers rather than lots of open packets. To make space you may need to remove items from your pantry and store them in a box out of sight during open homes.

5. Let the light in
Consider the lighting in your kitchen – you’re looking for that bright, airy feel. Good lighting will make your kitchen seem bigger, brighter and will make it more functional too. No one wants to cook or entertain in a dark, poorly lit kitchen.

6. Help buyers imagine it as their own
Your kitchen may be very personal to you and your tastes, but now is the time to make it clean, simple and neutral. Buyers may not share your love of bright colours or ornate accessories. They’ll want to stamp their own personality on their new kitchen, so give them a clean canvas to work with if you want to appeal to a wide range of buyers.

Does your kitchen tick all the boxes?

☐ Looks and smells clean and fresh

☐ Appears spacious, light and airy

☐ Provides a neutral canvas and avoids out-of-date features

☐ Makes it easy to imagine working and entertaining in

☐ Is tidy and uncluttered yet still feels welcoming

Landlords and Property Managers: We are in this together – Exemplary Damages

Chanel Pillay — Thu, 30 May 2019 21:30:00 GMT

In recent Tenancy Tribunal cases, adjudicators have awarded exemplary damages against both landlords and property managers when there has been a failure to provide and maintain premises in a reasonable state of repair. This will be extended to include failure to meet the new insulation standards from 1st July 2019.

This means that landlords and property managers can be held joint and severally liable for fines awarded by the tribunal when they feel that both parties have failed in their duties. That is, property managers cannot hide behind the excuse that a landlord won’t perform repairs on a rental property.

The Chief Executive, Ministry of Business, Innovation and Employment (MBIE) can make a claim to the Tribunal on behalf of a tenant. MBIE have an investigation team that monitor and enforce compliance with the Residential Tenancies Act, Healthy Homes Guarantee Act and associated regulations. They are also the team that will be ensuring that all rental properties meet the insulation standard by 1st July 2019.

That being said, there is nothing for good landlords and property managers to be concerned about providing that:

both property managers and landlords are acting within a reasonable time frame to conduct repairs
inspections are performed on a regular basis and maintenance requirements are addressed
the property meets all new regulations such as insulation.

With all the new legislation that has been introduced over previous years, the intention is to improve our rental housing stock which is good for New Zealanders. Having a Government department to enforce this is necessary as unfortunately there are landlords and property managers who do not abide by rules and regulations, leaving our most vulnerable at risk. Property management companies must ensure that they are reporting back to their landlords with an honest and accurate account of the property and ensure that landlords fully understand what their obligations are under the Act.

Harcourts property managers are professionals in their field. They conduct regular inspections of all our rental properties, reporting any maintenance required. In the rare case that a landlord does not share Harcourts’ values and refuses to meet their obligations under the Act, the management contract may have to be terminated. This will be the case for landlords who fail to meet their obligation to insulate their property by 1st July 2019.

Harcourts property managers are your eyes and ears and will advise you of what is needed to keep your property well maintained. With the new standards for rental homes, Harcourts looks forward to managing warmer, drier, healthier homes and being part
of this reform for the benefit of New Zealanders. With MBIE’s team enforcing compliance, a higher standard across the property management industry is welcomed.

If you have any questions about compliance for a rental property, contact your Harcourts Property Manager.

Property Focus May 2019

Chanel Pillay — Thu, 30 May 2019 01:29:30 GMT

The latest issue of Property Focus is out now!

Featuring articles on:

How to add value in the kitchen without breaking the bank
New Zealanders award Harcourts Most Trusted real estate brand for the seventh consecutive year

Read more HERE

Small footprint department stores could be the next big thing

Chanel Pillay — Thu, 09 May 2019 23:43:10 GMT

The retail sector in New Zealand is going through a period of rapid and unprecedented change, and retailers need to adapt fast to stay afloat.

There are underlying pressures, the online phenomenon, logistics and cost infrastructure to name but a few. Looking to America we can take some pointers as to the trends that may impact us here in New Zealand – now and in the future. When it comes to retail, is small the new black? If trends among some of the biggest retailers in the USA are any indication, the answer seems to be yes. Before you dismiss the idea, hear us out.

Today’s retailers are opting to think small, foregoing the “go big or go home” mindset entirely. In fact, many of America’s favourite retailers are shrinking, including Target, Macy’s, Nordstrom and more. Even big-box giant retailer Walmart is experimenting with smaller concept stores. But why?

The retail industry is seeing a definite shift in big retailers’ brick and mortar stores, as they continue to experiment with different store formats and models. Smaller footprint stores are also popping up among smaller brands that have, until now, played only in the online world. So, when it comes to physical space, why the shift from big to small, or from non-existent to small? The answers vary and often aren’t straightforward.

Typically, the downsizing of larger, more traditional formats is done in an effort to optimise and improve productivity. As more and more business is done online, these types of stores feel that less physical square meterage is necessary in order to take care of their customers. Conversely, other brands make the shift in an attempt to actually get closer to their customer base. Smaller versions of traditional store models allow brands like Target to open more stores with convenient locations.

To better understand this trend, let’s take a closer look at some of the retailers who are choosing to make this leap:

Nordstrom

This brand is no stranger to staying on top of digital and technology shifts, so it comes as no surprise that Nordstrom was among the first retailers to announce plans to try out smaller stores and more experiential spaces for its customers. The brand unveiled its smaller concept store, Nordstrom Local, which focuses on customer service rather than stocking inventory (and they ship to New Zealand). The footprint of these stores is approximately 2% of the typical Nordstrom store.

Kohl's

Sadly, this retailer is known for being among those that have struggled to navigate and stay afloat in the retail waters, however the brand is trying to shake things up and stay relevant. Today the brand is in the middle of shrinking hundreds of its stores which feature a standard footprint of around 8,300 square metres. In some cases, the retail brand plans to sub-lease the physical space that it is no longer using to other retail partners, such as niche budget grocer Aldi.

Macy's

No stranger to the smaller store concept, Macy’s first dipped its toes into the smaller concept store waters in 2015 when it revealed plans for an off-price offshoot, Macy’s Backstage, with stores averaging 2,700 square metres. With its success, Macy’s CEO Jeff Gennette has revealed plans to take the concept one step further, adding more stores with an even smaller footprint (930 square metres on average). Macy’s opened 30 Backstage locations in 2017 alone, and now boasts more than 50 stores.

Local retailers going small

The downsizing trend can be seen here too, particularly in the supermarket sector, where “metro” outlets are popping up in the CBD.
Both New World and Countdown have opened metro outlets in major centres like Auckland and Wellington to service the growing trend towards inner city living and to take advantage of commuter foot traffic in the CBDs.In recent years, Farmers has also embraced the small footprint trend with its Farmers for You and Farmers Home offerings in the upmarket retail precinct of Newmarket in Auckland. These dramatically scaled back stores offer niche product lines, but also act as convenient pick up locations for customers who want to Click & Collect or do returns on their online shopping orders. It’s just another incarnation of the hybrid model that encompasses both a bricks and mortar stores and an online approach.As consumer demands continue to shift and evolve, retailers need to continue to evolve alongside them. Retailers that are strategic and flexible in their approach to size, location and channel type are more likely to come out on top, because nobody knows what the stores of the future will look like.

Compiled by Tony Kidd, NAI Harcourts New Zealand. Thank you for the contribution from NAI Global.

Healthy Homes Standards - What you need to know

Chanel Pillay — Mon, 06 May 2019 20:38:27 GMT

There is some trepidation amongst private sector landlords at the prospect of meeting the new healthy homes standards for rental homes that have been set by our Government. However, we must not lose sight of why these minimum standards have been created and what they will ultimately achieve.

Currently there are almost 600,000 households in rental accommodation in New Zealand and they tend to be older and of poorer quality than homes that are occupied by the owner. Source: www.hud.govt.nz

These measures will improve the standard of housing in New Zealand and will improve the health and wellbeing
of New Zealanders.There are five healthy homes standards that all rental properties will need to comply with by 1st July 2024, and sooner if you have a change to a tenancy after 1st July 2021.

Let’s look at each standard:

Heating Standard

A fixed heating device must be installed that can achieve a temperature of at least 18 degrees Celsius on the coldest of days. This temperature is a standard recommended by the World Health Organisaton for the minimum indoor temperature. It is important to note that this requirement is only for the living room of the property. It is anticipated that in most cases the fixed heater will be
a heat-pump or wood burner for the larger living rooms, however a fixed electric heater may be enough for smaller rooms. If you have existing heating at your property, it may not meet the new standards if it’s inefficient, unaffordable or unhealthy to run. Examples of these are un-flued gas heaters, open fires and electric heaters (excluding heat pumps) – depending upon home size and the number of heaters provided.

An online tool will be available later this year to assess the requirements for heating the living room at your property.
Your Harcourts property manager can perform this assessment on your behalf and advise you of a recommended course of action, if any. Harcourts and Noel Leeming are working together to bring our clients a special deal* with regards to purchasing heating devices.

Insulation Standard

Properties managed by Harcourts are set to meet the 2016 insulation requirements by the 1st July 2019 deadline. However, under the new insulation standard, there is a new group of rental homes affected. The minimum level of ceiling and underfloor insulation must now either meet the 2008 Building Code, or for existing ceiling insulation, have a minimum thickness of 120mm. These affected rental homes will already have approximately 70-120mm of ceiling insulation, so the requirement is to increase this to a minimum of 120mm where required.Adequate insulation provides health benefits through minimising heat loss and is key to maintaining a warm, dry and healthy home.

Ventilation Standard

Ventilation is an important factor in preventing mould which can result in respiratory illnesses and worsening asthma. If that isn’t bad enough, mould can damage properties and belongings. Under the new standards, all kitchens and bathrooms must have mechanical extract ventilation. In addition, all living rooms, dining, kitchen and bedrooms must have windows that can be opened.
The Real Estate Institute of New Zealand (REINZ) is calling for the Government to make an exemption for shower-steam domes, arguing that these are cheaper and quicker to install than an extractor fan and don’t have an ongoing cost to run. Harcourts works closely with REINZ and will ensure that we are abreast of any changes to this standard.

Your Harcourts property manager is connected with a team of tradespeople including electricians and will be able to arrange the installation of any mechanical ventilation required. In addition, through our partnership with Noel Leeming, we will be able to provide discounts on kitchen rangehoods for our clients*.

Moisture Ingress and Drainage Standard

Properties must have adequate drainage and guttering, downpipes and drains. If there is an enclosed subfloor, it must have a ground moisture barrier (if possible to install) that will protect the home from rising moisture.

Draught Stopping Standard

We can insulate and heat our houses; however, this is ineffective if we do nothing to prevent draughts. Guidelines will be made available as to how we can best prevent draughts, however the standard states that landlords must stop any unnecessary gaps or holes in the walls, fan and don’t have an ongoing cost to run. Harcourts works closely with REINZ and will ensure that we are abreast of any changes to this standard.

Once we have further clarification on the new healthy homes standards, and when the online tool to assess heating requirements is available, your Harcourts property manager will perform an assessment of your property, with professional assistance
if required.

We can then advise you what work if any, is required to meet these standards. As we typically inspect our rental properties every three months, we are taking note of what standards your Your Harcourts property manager will then work with you to formulate a plan to action the required work to an agreed timeline. Be aware that the final date for complying with the new healthy homes standards is 1st July 2024, however if you have a new tenant or a varied tenancy after the 1st July 2021, you will only have 90 days
to comply.

We anticipate that now the healthy homes standards have been set, savvy tenants will be asking to have these requirements met when looking for new rental accommodation. If the property they are renting does not comply on the 1st July 2021, you may find them looking for properties that are compliant with the new standards rather than having to remain in a damp cold home for another three years. If your tenants leave and new tenants move in, you will only have 90 days to complete any work.

Smart property investors will want their property to be attractive to prospective tenants and/or retain their existing tenants and will therefore be planning to meet these standards before July 2021.

*Terms and conditions apply.

What Expenses Can You Claim as a Rental Property Owner

Chanel Pillay — Mon, 06 May 2019 02:39:11 GMT

With the 2018/2019 financial year now over, it‘s necessary to ensure that you are claiming the correct returns before the tax window closes on 7th July. Any expenses that you claim must only relate to the costs that you incur when generating the rental income and not include any private expenses.

Any fees or commission that you pay to your Harcourts property manager can be claimed. This includes your management fees and any letting fees.When it comes to tax and what you can and can’t claim, it’s recommended that you seek the appropriate expert advice. For general information on what you can claim, please follow the guide below.

Costs that you can claim:

Insurance and Rates Interest
Ensure that you are only claiming
the interest charged on money you have borrowed to purchase your rental property. This must not include interest from any other borrowing unrelated to your rental property.

Accountant Fees
Fees can include charges for managing your accounts, filing of tax returns and most costs relating to advice.

Repairs & Maintenance
Landlords can claim costs for any repairs or maintenance however they cannot claim for their own time if they do the work themselves. In this case, only the materials can be claimed.

You will need to establish what’s a repair and what’s an improvement as you can’t claim an improvement as an expense.
It is advisable to seek advice from a tax agent for anything that you are unsure of.

Note that if you have insulated your home to meet the new legislation and there was no existing insulation, you cannot claim this as an expense as it will be deemed as a property improvement. If you had to replace old insulation due to deterioration, this may be an expense, however upgrading insulation is still seen as an improvement, so it may be necessary to get professional advice from a tax agent if you are doing both a replacement and an upgrade at the same time.

Motor Vehicle Expenses
You can claim for costs travelling to inspect your property and there are two options for this. Speak to your accountant on whether you should claim by the kilometre or claim a percentage of the total running costs of your vehicle and depreciation.

Legal Fees
You can claim a deduction for the legal expenses when buying a rental property if any legal fees are $10,000 or less in one year. You may also be able to claim legal fees incurred when selling a rental property.

Depreciation
Depreciation can be claimed to cover costs of wear and tear and general aging of furniture and fittings but cannot be claimed on the rental property’s land or buildings. We recommend speaking to a tax agent as this can be complex.

If you have your property managed by a Harcourts Property Manager, you will have already received an annual summary detailing all income and expenses for the 2018/2019 financial year. This will assist your accountant with the filing of any tax returns and claiming of costs.

Source: www.ird.govt.nz

Moving house? We've got some handy hints!

Joan Penny — Thu, 04 Apr 2019 23:22:00 GMT

Remember to cancel:

☐ Newspaper and/or milk delivery.

☐ Telephone, internet and cable TV.

☐ Gas, water and electricity (arrange a final meter reading).

Organise for moving day:

☐ Obtain supply of boxes (the supermarket can be one supplier).

☐ Get packaging tape and heavy marker pens.

☐ Arrange for furniture removal (get quote, confirm time).

☐ Arrange care of your children on moving day.

☐ Make suitable arrangements for any pets.

☐ Arrange transit insurance and contents and fire insurance

for your new home.

☐ Organise shifting times with the purchaser of your old

property and the previous owner of your new one.

Notify your change of address to:

☐ Bank, credit card and charge card companies.

☐ Post office for redirection of mail.

☐ Elections Registrar.

☐ Registrar of motor vehicles and drivers license.

☐ Tax department.

☐ Insurance companies.

☐ Hire purchase or finance companies.

☐ Investment companies.

☐ Local council.

☐ Clubs and organisations.

☐ Police (if you own and store firearms).

☐ Friends and relatives.

☐ Magazine subscriptions.

☐ Doctor, dentist, accountant, lawyer.

Don’t forget:

☐ Clean the stove and defrost the fridge/freezer.

☐ Tidy the yard.

☐ Ensure that the chattels that have been sold with the

property are not accidentally packed.

☐ Disconnect all appliances.

☐ Disconnect the TV aerial.

☐ Return any borrowed items.

☐ Throw out items that you don’t intend taking with you.

☐ List valuable items for special care when moving.

☐ Advise removal company of dangerous goods being moved

(i.e. ammunition, petrol, spirits, chemicals).

☐ Securely pack all jewellery, money, special documents

and papers (i.e. legal, tax, insurance etc).

☐ Set aside items you will need on the day of the move so you

can take them with you (i.e. food, drinks, cleaning products).

☐ Pack each room leaving the boxes stacked and labelled with the

room they are to be moved to. It is a good idea to write on each box

a list of its general content.

☐ Clearly label boxes containing breakables as ‘Fragile’ and identify

these items to the removal people.

☐ Pot and pack away plants and cuttings you are taking with you.

☐ Explain your packing procedure to the removal people and be at

your new home when they arrive.

Do not:

☐ Put breakables or liquid filled containers in drawers.

☐ Overload drawers and make furniture too heavy to shift

(too much weight can damage furniture).

☐ Move netting, barbed wire, timber, wood, coal etc without

special arrangements being made.

☐ Store perishable goods where they might be overlooked.

Make arrangements to:

☐ See your solicitor to sign transfer documents/mortgage

discharge documents.

☐ Enrol children in new school.

☐ Coordinate the forwarding of any files from the children’s

previous school to their new one.

Organise for your new home:

☐ Newspaper delivery.

☐ Telephone.

☐ Internet and cable TV connection.

☐ Gas, electricity and water.

The week before moving:

☐ Remind and confirm dates/times/locations for furniture

removal company.

☐ Confirm moving in/moving out details and key exchange

with your Harcourts consultant.

☐ Say goodbye to neighbours.

One last check:

☐ Nothing left behind?

☐ No clothes at the dry cleaners?

☐ No gear stored away from your property?

☐ Electricity, gas and telephone disconnected?

☐ Water turned off and no taps left running?

☐ Windows and doors latched?

☐ Keys with solicitor (if appropriate)?

After it’s all over:

☐ Have spare keys cut.

☐ Make an insurance claim if any damage has occurred

during the move.

☐ Teach children how to get to their new school.

Enjoy your new home and keep in touch. We’d love to hear how you’re going.

Choose a place to live that ticks your checklist

Joan Penny — Thu, 04 Apr 2019 23:04:08 GMT

Moving to a new town or city can be overwhelming, particularly if you're trying to choose a neighbourhood to buy a home in. While it’s true that what a great neighbourhood looks like can differ person to person, all great neighbourhoods do share some common factors that are universally appealing. Here we explore 10 signs the neighbourhood you live in (or would like to live in) is a good one.

Great schools

Even if you don’t have children now, buying a property within an area renowned for great schools has a very positive affect on property prices. In most places, you generally need to live within a public school’s catchment area in order to send your child to that particular school, and some parents are willing to pay top dollar to ensure they live in the catchment area of a great public school.

Low crime rates

This is a pretty universal sign of a good neighbourhood. We all want to live in an area where we feel safe and secure and savvy property buyers will do their research and look at crime rates when it comes to moving to a new area, with this information readily available online.

Lifestyle options

A well-rounded neighbourhood is one that offers different things to different people. This could mean they’re plenty of nearby cafes and bars for foodies, walking and hiking trails for active locals, or even local clubs and leagues for engaged community members.

Outdoor activities

Living in an area where residents don’t have to travel too far to get out and about and enjoy the great outdoors makes an area more appealing. Think of parks, playgrounds, golf courses, tennis courts, public pools and even nearby lakes and rivers.

Well-presented homes

Not only does a neighbourhood look amazing when each house is well presented, but it also shows that your neighbours take a lot of pride in their home, a good sign for any prospective property buyer or seller. This doesn’t have to mean you live in a street of luxury properties either, great presentation starts with a mowed lawn, neat and tidy yard, freshly painted façade and clean, well-maintained footpaths.

Leafy and well established

Even in inner-city areas, a leafy main road, with well-established older buildings and homes can look really inviting. It shows the area has a bit of heritage given the age of the trees that line most streets and the age of the buildings which have been maintained over time.

Family friendly

Aside from great schools lots of factors play a part in making an area appeal to families. Funnily enough, most are listed above. In addition to these an area which has larger homes on potentially larger blocks is probably going to appeal more to families than say the heart of the city, where units run significantly smaller, with little to no outdoor spaces available.

Public transport and walkability

In larger areas being close to public transport is a must with a huge number of commuters relying on buses, rail and ferries to get them to work every day. Walkability is also a big factor though, being able to leave the car at home to get to nearby attractions like markets, shops and cafes makes an area really desirable.

Entertainment

Not everyone loves the idea of travelling into an inner city to have dinner, see a movie or catch-up for drinks, so residential areas that also boast great local cafes, bars or theatres are always popular. As are those with great famiy entertainment options such as playgrounds, sports grounds, libraries and cinemas.

Shopping

Being close to the shops is not just convenient it can be a drawcard that gets people to visit a neighbourhood. Weekend markets are popular neighbourhood attractions, as are large-scale shopping centres, supermarkets, and unique local boutiques.

This weekend, why not look around your local neighbourhood and see what makes your area special. It’s great to be aware of the major selling points in your location, and if you’re interested in buying in a particular area, why not see how it stacks up in the desirability stakes?

If you're looking to buy in an area completely new to you your Harcourts sales consultant will have a good knowlege of the local area and will be able to answer questions about a neighbourhood.

Property Focus March 2019

Joan Penny — Tue, 26 Mar 2019 02:30:14 GMT

The latest issue of Property Focus is out now!

Featuring articles on:

How to declutter your home and your life
What's happening in the property market?

Read more HERE

Living your best life!

Joan Penny — Thu, 21 Feb 2019 03:23:36 GMT

Clear on the rules and got the money sorted? Is it time to start the hunt for your holiday home?

If you are one of the many kiwis who are planning to invest in another property which you will use as an escape from your usual routine, then keep reading, as Harcourts has some advice on the first steps you should take to turn your dream into a reality.

Jo-Anne Clifford Chief Operations Officer Harcourts International, says that the number one consideration should be location – she asks, “is it close enough to your home to get away to on weekends and is it a place you'd be happy returning to year after year?”

There are many things to consider when searching for your ideal holiday home. It might include total seclusion from the world and come in the form of a cottage hidden away in the bush, or it might be a beach front property where you welcome hordes of other holiday makers to use the cut-through on your property to get to the beach.

What the decision will come down to, is a personal choice, so you need to be really clear on what it is that will really make your new property somewhere you want to spend every hour of every day that’s available to you in your downtime. Our top tips for find the perfect property to meet your needs are:

Decide what you want to get out of your holiday home
Look at the land price trends for the area
Buy in a year-round destination

Harcourts insights have tracked that spring and summer are busy times for residential property, and the same is true when it comes to purchasing a holiday home.

The Harcourts offices which service hot spots like Paihia, Mount Maunganui and the Marlbrough Sounds experience a huge upswing in interest, particularly over the Christmas and New Year period.

But while there are some obvious choices about desirable locations for holiday makers, you still need to do your homework.

Clifford continues, "Look at the land price trends for the area you're looking to buy. If the land value hasn't increased in several years, and that doesn't look like it’s changing, then you're probably not going to make a capital gain on your purchase.

However, if the location is good - close to amenities and attractions - you can make a return by renting out your holiday home while you're not using it to help pay for ongoing and maintenance costs. Buying in a year-round destination will help to deliver more consistent returns.

As ever evolving kiwis, our expectations of holiday homes are changing, and when we rent a house to have a holiday in, more of us are looking to high-quality properties, rather than the rustic Kiwi bach or crib.”

Whichever way you choose, talking to local Harcourts agents and property managers can help you on your way to living the kiwi dream!

Property Focus February 2019

Chanel Pillay — Wed, 13 Feb 2019 03:26:20 GMT

The latest issue of Property Focus is out now, featuring articles on:

Is time to start the hunt for your holiday home?
Harcourts New Zealand appoint New Managing Director
Harcourts win gold for Quality Service in real estate sales

Read more HERE

Anti-Money Laundering Implications

Joan Penny — Mon, 17 Dec 2018 01:35:51 GMT

New Zealand is a target for money launderers. It is estimated that well over $1 billion a year from drug dealing and fraud is laundered through New Zealand businesses. New Zealand introduced its Anti-Money Laundering and Countering Financing Terrorism (AML/CFT) legislation in 2009. Banks, financial institutions and many other sectors have been operating under the legislation since June 2013 and Real Estate agents have been captured under the legislation from 1 January 2019.

Since 1 January 2019 Real Estate agents are, among other things, required to verify the identity of their clients (vendors) in accordance with AML/CFT legislation. This is called Customer Due Diligence (CDD).

This means they are required to identify who their clients are (i.e. who they are acting for). This could be individuals, companies, trusts, or other client types like societies and government departments etc. They will need to ask for information to verify a client’s full name, date of birth, and residential address. This can be done in several ways, like the banks, they will ask to see identity documents like a Passport, Driver’s Licence or utility bill etc. In some cases, they have obligations to establish source of funds and wealth.

If your real estate agent cannot verify your identity in line with the legislation, they may not be able to act for you. More information about CDD is outlined below.

This change primarily impacts vendors. If you are purchasing property you are not deemed a client of the real estate company (unless you have engaged a real estate sales consultant as a buyer’s agent) however, your lawyer also has AML/CFT obligations and may need to complete CDD. We encourage all purchasers to engage early with lawyers in any sale or purchase process. See ‘Documentation that may be requested’ below for an outline of the things that may be requested.

Who do real estate agents need to complete CDD on?

They must identify and verify:

the client;
each beneficial owner of the client; and
each person acting on behalf of the client including the authority to act on behalf of the client e.g. a lawyer or representative giving instructions on someone’s behalf.

What is a beneficial owner?

A beneficial owner is any individual (natural person) who satisfies one or more of following:

the individual has effective control of the client; or
the individual is a person on whose behalf a transaction is conducted;
the individual owns more than 25% of the client or person on whose behalf a transaction is conducted (e.g. direct/indirect shareholders).

What is effective control?

Effective control is the ability to exercise control or influence over a company or entity. Typically, this will be the directors of a company or entity or those who hold senior positions. It could also be those who are funding the company, so this is something else that real estate agents will need to consider, and where relevant, enquire about.

What information will real estate sales consultants need to get?

As a starting point, the following identity information must be obtained:

the person’s full name;
the person’s date of birth;
if the person is not the client, the person’s relationship to the client;
any additional information prescribed by regulations.

The nature and purpose of the business relationship

Your real estate agent is also required to get information on the nature and purpose of the proposed business relationship with all beneficial owners. This includes understanding what the client is trying to achieve, how much business is expected, and how regular the interactions will be.

Source of funds/wealth

In some cases, the real estate agent will need to establish the source of the funds for the transaction (i.e. where the funds have actually come from) and source of wealth (i.e. how those funds got there in the first place and how was that money obtained).

Documentation that may be requested

The information that a real estate agent requests will vary depending on whether business is being carried out for an individual or as part of a partnership, company, public body, estate or trust.

The following gives an indication of some of the documents a real estate agent may request in person or as certified documents as part of the due diligence process:

Individuals:

Passport, NZ Firearms Licence or NZ Driver's Licence with another document such as a bank statement or statement issued by a Government agency. Clients may also need to provide a document with a residential address (for example, a utility bill).

Trusts:

The Trust Deed and, for trustees, and settlors, the information required for individuals as noted above, together with information regarding the Trust’s source of funds or wealth. Additional information may also be required for beneficiaries. Information regarding source of funds or wealth may also be required.

Companies:

Details of the company, together with the information for individuals noted above for every individual with more than a 25% shareholding, all individuals with effective control of the company and all individuals acting on behalf of the company. Information regarding source of funds or wealth may also be required.

The above list is not exhaustive and is indicative only. Real estate agents will assist clients with specific requirements in relation to individual situations.

Real estate sales consultants are doing this to help protect everyone and because they are required to under the law.

Ministry of Justice have also provided some information, please see the below link – www.keepourmoneyclean.govt.nz/

Copy supplied by AML Solutions.

Property Focus November 2018

Joan Penny — Wed, 21 Nov 2018 04:22:47 GMT

The latest issue of Property Focus is out now, featuring articles on:

The very best of Harcourts auctioneering
Where should you hold your auction?
What's happening in the property market?

Read more HERE

Client Advisory - Anti-Money Laundering

Joan Penny — Tue, 06 Nov 2018 04:40:03 GMT

The Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (the Act) has applied to financial institutions and casinos in New Zealand since 2013.The Act is designed to prevent money obtained through illegal means from entering the New Zealand financial system to be “laundered”. Although New Zealand is considered to be a relatively clean market it currently falls prey to an estimated $1.35b in money laundering activities each year.

Since 2013, other non-financial businesses and professions have been captured by the act. Lawyers and Conveyancers and some businesses forming trusts have had to comply since 1 July 2018 and Accountants from 1 October 2018.

From 1 January 2019 entities carrying out Real Estate activities will be required to:

have appointed a compliance officer;
have assessed and documented the money laundering and terrorist financing risks the business faces;
have established a programme to detect and manage any risks identified; and undertake a number of other specific tasks, including but not limited to performing customer due diligence when they enter a relationship with their customers (or vendors as described by the Real Estate Agents Act 2008).

At its core, Real Estate Agents need to identify who their customers (vendors) are and this is required before the agency work commences. When the property is in the name of an individual, proof of identity is relatively simple to collect and is straight forward.

For properties that are held in companies, trusts or a combination of both, a more enhanced suite of requirements for due diligence is required. Where the Real Estate Agent cannot perform the prescribed level of due diligence, then the customer must not be on-boarded and the listing cannot be accepted.

Following the inclusion of Lawyers and Conveyancers from 1 July, property transactions have already been captured under Anti-Money Laundering/Countering Finance of Tourism legislation. From this date members of the legal profession are required to perform to the same compliance regime and perform the same levels of due diligence as mentioned above to the buyers of property.

Fast forward to 1 January 2019, due diligence will be required to be performed on the buyers and sellers of property. This will result in property transactions becoming more onerous to navigate and more time consuming.

In the meantime, it is important real estate agents have systems in place by 1 January 2019 to ensure compliance with the obligations imposed on them. Additionally, buyers and sellers of property, especially commercial property need to fully appreciate the new requirements of this Act and the impact it will have on their businesses.

Read more about Anti-Money Laundering here https://www.keepourmoneyclean.govt.nz/

What you need to know about the Overseas Investment Act changes?

Joan Penny — Tue, 06 Nov 2018 04:33:42 GMT

How do the changes to the Overseas Investment Act affect me?

The implications of the Overseas Investment Amendment Act 2018 (“Act”) have been widely discussed and, in particular, its effect on ‘overseas persons’ acquiring residential property in New Zealand. As of 22 October 2018, new laws prevent certain overseas persons from acquiring residential property in New Zealand.

The Act will not apply to transactions entered into before 22 October 2018.

Residential Land

The new laws apply to land that is categorised as ‘residential’ or ‘lifestyle’ under the District Valuation Roll.

Overseas Persons

An ‘overseas person’ means a person who is neither a New Zealand citizen nor ‘ordinarily resident in New Zealand’. A person is ‘ordinarily resident in New Zealand’ if they:

hold a residence class visa; and
have lived in New Zealand for the last 12 months; and
have been present in New Zealand for at least 183 days in the last 12 months; and
are a New Zealand tax resident.

The restrictions do not apply to citizens or permanent residents of Australia or Singapore who live in New Zealand.

Overseas Investment Office Consent

The new laws are not a complete ban on overseas persons acquiring residential property in New Zealand, but (subject to certain exemptions) such acquisitions will now require the consent of the Overseas Investment Office (“OIO”).

There are some exemptions from the requirement to obtain OIO consent, such as if an overseas person acquires an apartment ‘off the plan’ within a multi-storey development of 20 or more apartments. Developers of these properties can apply to the OIO for an exemption to sell a certain percentage of such properties to overseas purchasers.

Eligibility Statement

Another change under the new laws is that every person acquiring residential land will be required to complete a Residential Land Statement form which can be provided by a conveyancer (usually a lawyer). It is an offence to make a false or misleading statement and the penalties are significant.

Copy supplied by Bruce Costain, Partner - Brookfields Lawyers

Thinking big but starting small pays off for new Harcourts business owners

Joan Penny — Wed, 12 Sep 2018 03:35:03 GMT

Have you ever wanted to be a business owner but let the idea of how difficult it all seems, stand in your way? Well, with Harcourts you don’t have to do it alone.

As a franchised organisation, Harcourts offers a unique opportunity for successful sales consultants or branch managers who want to super-charge their earning power and take their career to the next level, by owning their own real estate business.

We recently spoke to two new business owners in Auckland, who were very happy to share some tips that they learned from setting up their new businesses; that could potentially save you a lot of time, money and even confusion.

1. Leverage Harcourts support

With Harcourts structured processes and tailored approach, taking the first steps to fulfilling your business dreams can be easier than you think. Harcourts’ Business Development team, currently led by Mark Morrison who has opened 8 new offices in Auckland in the last 18 months, will be a continual source of guidance and support throughout the early stages of ownership. He will work with you in a personalised way and his overarching support will help you work through the process of setting up your new business including securing a premise, signage, fit out and design. New Business Owner Anita Barry of Team Uptown in Auckland City and Mushtaq Sheikh, New Business Owner Harcourts Otahuhu both credit Mark as an ‘awesome’ support throughout each of their journeys. Not only does he keep in touch with us, he is the ‘perfect support person’. Anita Barry said the thing she most enjoyed about opening her Harcourts office was the ‘easy process and the support she got’. She added ‘I saw a big difference coming from an independent brand into the Harcourts group, the leads come to us now’, she is very positive that her business will be a success.

2. Stay local

Mushtaq Sheikh said he is ‘confident he will do well’ in his business in Otahuhu. Having set up in mid-2018, Mushtaq has been building his team and working on establishing his brand in the Otahuhu area. He knew the Otahuhu patch very well, working in the area for 5 years before buying his own business. Of course, it’s also possible to be successful in an area new to you but it will be a harder road as getting to know your community is critical to establishing a new business.

3. Start small

Often people take the first step into business ownership by entering into a joint venture with an existing Harcourts business owner. This allows them to take on the responsibilities and some of the rewards of ownership in an already successful business, and over time they can look to ‘buy out’ the remaining shareholding of that franchise.

For franchise owners who are starting a new business from the ground up, it is advised to start small and keep your expenses at a minimum to avoid taking on debt, and work within financial limitations.

The Harcourts team will use their combined experience working with other businesses to assist with making a plan that is aligned with your objectives including budgeting, business planning and recruitment.

Anita Barry added, she is ‘very proud’ to be part of the Harcourts family and Mushtaq Sheikh said, ‘the whole team are awesome and from the Chief Executive Officer downwards, he feels supported, always’.

For further information click here or call Mark Morrison on 021 0272 0270

Mark Morrison and Chris Kennedy with Mr and Mrs Mushtaq Sheikh at the opening of their new Harcourts Otahuhu business. They are joined by Shane Prasad Northern Region Business Manager and Ifran Sheikh Sales Consultant at Harcourts Otahuhu.

What should you look for in a sales consultant?

kerri.jackson@harcourts.net (Kerri Jackson) — Thu, 19 Apr 2018 04:42:46 GMT

Selling a property is one of the most significant financial moves you will ever make, and it is vital you get the best possible price, whether it’s your home, a rental property or even a business or commercial property.

The way to do this is to understand the property market and current trends in your area, who your potential buyers are likely to be and how best to market to them.

The simplest, most effective way to tap into this information is by selecting a quality real estate consultant who will work hard on your behalf to get the best possible result.

Ensure you shop around. Talk to friends, ask for recommendations, ask several sales consultants to appraise your property. It might seem like a hassle when you just want to get on with selling, but it is a crucial part of getting the best sales result.

And when you’re talking to sales consultants be sure to ask about more than money. Your sales consultants’ fees are obviously an important part of any sale, but take into account that, as with any specialised service, getting the cheapest doesn’t always mean the same thing as getting the best value.

Make sure you know exactly what your sales consultant will be doing for you and make sure they are clear on your expectations as the vendor. If you think their rate is too high, say so. They may well be open to negotiation.

Do they have a well-thought-out marketing plan that’s specific to your property? Selling a property is more than banging up a sign out the front and running a print ad for an open home. Digital is now hugely important – ask specifics about their marketing reach and how this will be monitored and refined along the way.

Ensure they are a good communicator and will keep you updated at every stage of the sales and marketing process.

Do they know your local area and what properties are selling for? Do they have a good idea of who the market is for your property? Are you comfortable with their plan? Are they listening to your feedback? Are they part of a strong real estate network that will help them connect your home with potential buyers? Do they and the company they work for have a strong track record of success?

All these things will add up to a better sales result for you.

Global Asbestos Awareness Week: Home Safety When Buying and Renovating

kerri.jackson@harcourts.net (Kerri Jackson) — Fri, 06 Apr 2018 01:12:44 GMT

Did you know ... The first week of April isGlobal Asbestos Awareness Week, a time dedicated to raising awareness about the deadly toxin and preventing future asbestos-related illnesses from occurring.

Do-it-yourself (DIY) renovators are now the most at-risk for asbestos-related cancer, even more so than construction workers and those who regularly encounter asbestos on the job. A lack of knowledge, preventative awareness, and protection within the DIY community is to blame for the rise in asbestos-related illnesses. Before buying an older home or starting a renovation, know the dangers before putting yourself at risk.

Dangers of asbestos

Asbestos is a once-popular building material and known carcinogen. Used heavily in construction between the late 1800s and 1990, asbestos was a low cost, heat resistant substance used in a variety of products, including insulation, ceiling tiles, flooring, and roofing. Unless items are labeled as containing asbestos, it may be impossible to know exactly where it’s lurking.

Though relatively harmless is left completely intact, asbestos becomes extremely dangerous once broken up, allowing the small fibers to become airborne. Once inhaled or ingested, the asbestos fibres may embed themselves within the lining of the lungs, eventually causing mesothelioma cancer. Mesothelioma is a deadly disease with an extremely poor prognosis. Those exposed to asbestos without proper protection will not know if they have been affected for decades, as mesothelioma has an unusually long latency period of anywhere from 15 to 50 years.

New Zealand began prohibiting the importation of asbestos products and materials almost two years ago, but asbestos-related deaths will still continue for years to come as old structures slowly deteriorate and are torn down or renovated.

Asbestos in the home

Mesothelioma is almost completely avoidable if proper precautions are taken during a renovation. Unfortunately, there is no telling how many locations within a home may contain asbestos. It could be found almost anywhere, especially in older homes, because of the large number of products that were once built using the toxic mineral.

To start, know where the danger zones are in each area of a house. In the kitchen, beware of old kitchen stoves, walls, and vinyl flooring. Use extra caution when handling furnaces, water heaters, and hot water piping commonly found in basements. Older homes are also notorious for using asbestos in cement siding, roof shingles, undersheeting, and around windows. Within the walls, pay close attention to insulation and patching compounds, both products known to have been manufactured with asbestos.

Even though it is possible to remove asbestos from a house without the help of a professional, it is not recommended and the risk of doing so isn’t worth the cost. Before demolition, inspect the house diligently and consider bringing in a professional to test for asbestos. When looking into buying an older home try to test for asbestos early on to save yourself a headache, especially when there are plans to renovate down the road.

Whether you’re renovating your own house, or looking to buy an older home to flip, proceed with extreme caution. The rewards of a newly renovated house do not outweigh the risks of coming into contact with asbestos. Prevention is possible by taking appropriate precautions and contacting a professional prior to the demolition or purchase of an older home!

For more information on the dangers of asbestos click HERE

Where can a real estate career take you?

kerri.jackson@harcourts.net (Kerri Jackson) — Thu, 01 Mar 2018 23:31:51 GMT

When most people think about what a career in real estate looks like, they think about the nuts and bolts of helping people buy and sell properties. It's certainly a great career choice, offering plenty of flexibility and earning potential, but what many people may not realise is that real estate skills, knowledge and experience can set you up for a range of career options.

We’d always recommend you start by studying to obtain your real estate sales certificate, and work for a number of years in sales to give yourself a sound knowledge of how the sector works and what the job entails.

From there you can branch out into a huge range of different roles. Such as:

Business ownership – As a franchised organisation Harcourts offers a unique opportunity to successful sales consultants or branch managers who want to super-charge their earning power and take their career to the next level by owning their own real estate business.

Sometimes, even our most successful sales consultants can find that at a certain point in their career their earnings plateau. Or they become frustrated that, while real estate offers them flexibility in their working hours, when they don’t work, they don’t earn.

That’s when they start to think about owning their own Harcourts franchise, so they can maintain some flexibility, maximise their earnings, without working out in the field quite as much.

Recruitment of salespeople and people management become big focuses for those moving into business ownership.

Often our people take the first step into business ownership by entering into a joint venture with an existing Harcourts business owner. This allows them to take on the responsibilities and some of the rewards of ownership in an already successful business, and over time may look to “buy out” the remaining shareholding of that franchise.

Branch managers – Senior management positions in Harcourts franchises are another great career move for those looking to move away from the coal face. These roles often draw regular salaries rather than purely commission-based income and often more regular working hours. But crucially, they also allow you to work closely with sales consultants to mentor them and help them grow their own success, as well as helping the franchise as a whole to develop with sales strategies and recruitment.

Auctioneer – Auctioneering is a hugely popular career choice within Harcourts. It’s an action-packed, fast-paced job which offers a huge amount of variety and the chance to work closely with vendors and sellers during the most crucial part of any sale. At Harcourts we are big believers in auctions as a method of sale and as such we put a lot of effort into making sure our auctioneers around the country are the best, with regular training and competitions. Our auctioneers always feature among the top-ranked competitors at the annual REINZ Auction Championship.

Corporate roles – At Harcourts most of our corporate team have come from a real estate sales background and have taken that knowledge into new career directions such as business development, business operations, Academy training, growth and recruitment, financial management – or even the CEO!

Sales diversity – And remember, real estate sales does not mean you can only sell homes. Selling commercial property or selling businesses with our NAI Harcourts team are other options to consider.

Property management – The other career choice available in the real estate sector is property management. This is often a great way to enter the real estate sector, or earn a regular income while you study for your sales certificate. Or you can continue on in property management as it is a varied and fast-paced business in its own right. Property managers do not need to have a sales certificate but as a Harcourts property manager you will often be working in the same office as the sales team so it can be a great opportunity to learn the business and learn more about the Harcourts brand.

Read more HERE on why real estate may be the career for you.
If you’re in Auckland and considering a real estate career, come along to our next free careers evening, click HERE to find out more.

Light up the night

kerri.jackson@harcourts.net (Kerri Jackson) — Wed, 28 Feb 2018 02:04:27 GMT

It’s often Christmas time when thoughts turn to lighting up your home exterior – and then it’s all about creating a bold festive focus. But, if, say a visit to the Auckland Lantern Festival, has you inspired to light up your landscape in a more permanent way that’s really going to show your property off while maybe making it safer, here are a few things to think about:

Safety: Walk the main thoroughfares of your property in the dark, with just a torch. It will quickly help you identify the areas that need lighting. Where are you likely to trip? Is the pathway clear? Does it change direction? Are there steps? Are there places you’re like to walk into things like overhanging trees, or jutting out bay windows? Are there areas you need to access a lot in the dark, such as wheelie bins or the wood pile? Use all these things to plan your safety lighting. You may need one or two bright lights, or a trail of smaller lights that brighten up walkways.

Security: Good lighting can be a huge help in making your property more secure. If you’re often coming home in the dark, good sensor lights where you have to get in and out of the car and walk to the door are a great idea. And think about lighting up dark corners of the garden where intruders may be able to hide. Sensor lights are good option for security lighting as the turn on in response to movement and mean you can avoid having your section constantly lit up like the flight-deck of the USS Enterprise.
Style: So that’s the strictly sensible stuff done, but the right lighting in the right spots can really add some welcoming warmth and style to your property. Think about the areas you use most in your section and how you use them. An ideal lighting plan should allow you flexibility in how you light up for different uses. Brighter spots where you are cooking on the BBQ or around a pool, for example, and more subtle, dimmer lights with prettier fittings in areas you may be sitting and socialising. Do you have a showpiece tree that might look great dotted with fairy lights? Can you wrap strings of lights underneath a pergola? Or perhaps a freestanding showpiece light you can sit around. If you have great indoor/outdoor flow also think about how your outdoor lights may work with nearby indoor lights.

Sense: It’s also vital to consider how your lights will be powered and make sure you have them fitted by a qualified electrician where necessary. But also keep an eye out for solar power lights which are a simple, safe option. Make sure you select light fittings that are designed for outdoors and, when it comes to selling your property, make sure everything is well-maintained before open homes. A well-lit, inviting, outdoor entertainment area can be a big selling point for a home, so if you know it looks great at night, make sure you talk to your sales consultant about photographing it that way.

Harcourts is a major partner to the Auckland Lantern Festival, in the Auckland Domain, March 1-4. Come celebrate with us!

More information HERE and HERE

Enjoy the darker side

kerri.jackson@harcourts.net (Kerri Jackson) — Mon, 19 Feb 2018 02:14:44 GMT

It's all too easy to associate dark colours with negative connotations and a general sense of doom, but don't be too hasty, say the team at Resene.

Shades like black, navy and deep grey are also reminiscient of night skies and crisp winter nights.

Bedrooms are an ideal space for dark walls. Most of the time spent in the bedroom is at night – making it the perfect place to go dark and dramatic. Dark greys and inky blues are especially popular at present. Think colours like Resene Foundry, Resene Fuscous Grey and Resene Dark Side. To get a velvety rich effect, use Resene SpaceCote Flat instead of low sheen. It absorbs the light more, making the room look richer.

Using darker shades brings texture and mood, especially to a featureless space. Dark walls with a different shade on the floor or trims, for example, will create lines of difference and interest in the room that wasn't there before. It can also help a cavernous room feel cosier.

Take a test

Before committing to an aesthetic overhaul, test the colours out on a large sheet of cardboard, leaving an unpainted border around the outside. You want to use a piece of card large enough to see how the colour will go with your existing furniture and home's design features.

Once you've compared shades, you'll be able to settle on the exact dark hue you're happy with. Remember, there are plenty of shades to play with - deep shades can have blue, green and brown tones, which can all affect how they look on your wall. Be sure to consider the placement of windows - the shade will look a lot different in a space that receives lots of sunlight, compared to one that doesn't.

Mix it up

Don't be afraid to mix things up between rooms - just be sure that whatever colour you pick within a single room is consistent. If you want to use a dark hue in a shared space, but you've got an expansive open-plan kitchen, dining and living area, pick a single dark shade for a feature wall and paint the remaining walls in a complementary neutral with cool or warm tones depending on whether your feature colour has cool or warm tones.

Create drama

Dark colours are excellent because you can create contrast. Why not make a splash with Resene Tuna? This measured grey looks striking when paired with crisp, white accents and a touch of bright colour - think bright yellow or red cushions or artwork.

Focus closely on key features, such as the ceiling and flooring. Cool grey pairs well with off-white, while a dark yet warm brown looks stunning with thick-pile cream carpet.

You can create a dramatic living space or bedroom by ensuring you offset dark shades with light touches. Follow this tip and you're on the road home!

Focus on features

Be sure to play up your home’s best design features. Window frames, crown moulding, built-in storage and archways are examples of features that can be played up with the right paint selection.

You can make these features stand out with dark paint - just ensure that the surrounding area embraces a light shade in order to achieve a wonderful contrast.

Remember the contrasts

Whether you go charcoal, dark green, or deep oxen red, having a contrast on the floors, trims and ceiling helps to delineate the area, preventing it from becoming claustrophobic – instead, it helps to enlarge the space visually.

As a whole-room solution, team dark neutrals with cream or crisp white trims. This works especially well with older homes where the skirtings, architraves and cornices are likely to be more ornate and will be beautifully highlighted by the contrast with smoky dark walls.

Think beyond your walls, to floors, ceilings and furniture. These can easily be painted a dark colour too. If you’re living in a villa with a high stud, a dark ceiling can help make the ceiling feel lower and the room feel cosier.

If you’re changing from a light colour scheme to a dark one, make sure you review your lighting at the same time. You may find you need a little extra lighting or a stronger light bulb to balance the darker walls.

For more visit www.resene.co.nz

Have you considered a career in real estate?

kerri.jackson@harcourts.net (Kerri Jackson) — Fri, 09 Feb 2018 01:40:53 GMT

If you’re thinking about a career change and are looking with something that offers a huge amount of flexibility and the ability to manage your own workflow, with the potential for huge rewards, you may want to consider a career in real estate.

Here’s what you should know:

What qualifications do you need?

To get started in real estate you don’t have to have any previous qualifications or experience. What you do need is a Level 4 National Salespersons Certificate, which you can obtain through Harcourts’ own registered training academy.

Once you achieve that qualification you need to apply to the Real Estate Agents Authority (REAA) for your licence, as all real estate agents selling in NZ must hold a current registered license.

Once you have that, you’re good to go. This means real estate often appeals to those looking for a mid-career change of direction, as it does not involve years of re-training.

For more information on getting your licence click HERE

Why should you consider a real estate?

As a real estate sales consultant, you will be running your own business, based around your own work, in a thriving sector of the economy that impacts almost every person at some point in their lives. You work the hours that work best for you and what you want your income level to be. The harder you work, the more you can reap the rewards.

Who should consider a career in real estate?

We see people enter the profession from all different walks of life, and at all different stages of their working life. Some come into it as their first career choice, often after they’ve finished university degrees in everything from engineering and arts, to marketing and property. We also see a lot of people enter the profession as a mid-career change, from a huge range of different industries and professions. These people often see the freedom and flexibility of real estate to be a real career advantage.

Is there a preferred personality type?

The short answer is no. People who are self-motivated, tenacious and passionate about property, and who thrive on healthy competition in a sales environment, tend to be the people we see do well. But it’s also important to realise that these are skills that anybody can learn in a company with a supportive team environment backed by world class training.

Is it all about sales? Are there other career paths?

While most people enter the industry selling residential, lifestyle/rural or commercial property, there are other careers available. Once you have a great platform in selling and a knowledge of how the business works, you can diversify. Other career options include: auctioneering or managerial roles. Under the Harcourts model, because we are a 100% franchise model, there are also opportunities available to move into business ownership, either in a joint venture, or opening a new office. There are also national and international corporate roles to consider.

What happens once you’re qualified?

Once you are qualified and licensed as a real estate agent you then need to consider how to operate as a business person. The initial qualifications and license teach you the legalities and technical aspects of being a real estate agent, but they don’t teach you how to be a business person.

Harcourts has a registered training academy which will teach you how to operate a business, which, as a real estate sales consultant is what you are doing. Our training teaches our sales consultants how to be a market specialist, a negotiator, a prospector, so you can go out and gain your own listings and build your own business with clients who will keep coming back to you.

If you want more information about switching to a career in real estate, Harcourts regularly hosts a free Careers Evening in Auckland, click HERE to find out more.

If you can’t make that contact our Auckland Franchise Development Manager Mark Morrison HERE

What does the national average house price buy you around the country?

kerri.jackson@harcourts.net (Kerri Jackson) — Wed, 17 Jan 2018 01:30:31 GMT

Our latest market figures show the average house price at $618,459. Let’s have a look at what that – or less – will buy you around the country.

Far North - $195,000

A 1014sq m section on beautiful Karikari Peninsula with views over Perehipe Bay. Read more HERE

Auckland - $395,000

An 827sq m section on Waiheke Island, a short stroll from Orapiu Bay. Read more HERE

Taupo district - $608,000

Five bedrooms, two bathrooms down a secluded driveway, 30 minutes from Taupo, across from Motuoapa Marina. Read more HERE

Wellington - $575,000

Two-bedroom Brooklyn apartment with modern renovated kitchen and private deck. Read more HERE

Blenheim - $600,000

A fully-renovated 223sq m home in the heart of Blenheim. Read more HERE

Christchurch - $498,000

Three-bedroom character home in Upper Riccarton. Read more HERE

Oamaru - $386,000

A spacious three-bedroom house with double garage on 3057ssqm section at Waitaki Bridge. Read more HERE

For the most recent National Market Watch report, click HERE

The five essential marketing tools for your property

Andrea.Svendsen@harcourts.co.nz (Andrea Svendsen) — Sun, 05 Nov 2017 21:56:12 GMT

The decision to sell is made, but how do you ensure potential buyers know your house could be their dream home? Here are five top marketing tools to help you get the best possible result for your sale.

Online presence

More than 80 per cent of Kiwis look online to find properties for sale[*], so it’s essential your property has a presence on the worldwide web. Consider how to get the most exposure, and include plenty of details so potential buyers can put serious thought in. Your real estate agent can run through the sites that will give the best bang for your buck and advise on how best to describe your property.

Great images

Make sure your home looks pretty as a picture to attract the maximum number of buyers to come and view it in person. The first encounter many will have with your property is by viewing photographs online, in real estate magazines or agency windows, or in the property section of the local paper, so it is crucial they make a good first impression. It is worth paying for a professional photographer who can ensure images are taken from the right angle, get the lighting right and show your home at its very best, as those pictures (and video, if you want to go a step further) may just prompt a future buyer to fall in love.

Street signage

A ‘For Sale’ sign outside your home may feel a little old-fashioned in our virtual world, but it’s important to catch the attention of those who may not actively be looking for a new property, or those who always have an eye on your street or neighbourhood for the dream home. People hunting for property use up to four extra resources on top of online research, including sale signage, magazines and brochures, and agency window displays, so the more places you shout ‘For Sale’, the better.

Open homes

The actual look and feel of a property is something that can’t be construed through photos alone, so holding open homes and private viewings is key to marketing your property. Giving prospective buyers the chance to walk through your home, imagine themselves in it, and get a feel for the surrounding neighbourhood will ensure you have some serious buyers in the mix when it comes time to sell.

A great agent

Word of mouth and personal recommendations count for a lot when it comes to making a major purchase such as a new home. A committed and enthusiastic real estate agent will be able to tell people about your property, put the word out to other agents who might have interested buyers, and follow up with potential buyers about their intentions. An approach like this will make sure you have reached as many people as possible, and make you feel secure that, in turn, you get the best price possible.

Ensure you're properly insured when you buy, sell or renovate

Andrea.Svendsen@harcourts.co.nz (Andrea Svendsen) — Tue, 31 Oct 2017 01:52:18 GMT

Buying, selling, moving and renovating are all major life events, and it’s important you are covered by insurance every step of the way. Here’s how you can best manage insurance requirements so you aren’t caught short.

When purchasing a house

It’s best to contact insurance companies to arrange house insurance ahead of time as they may need extra information such as building reports, and if it’s an older home, details of re-piling, re-wiring and new plumbing.

If you can’t secure insurance before putting in an offer, then consider inserting a ‘subject to insurance’ clause into the sale and purchase agreement so you have time to confirm before it goes unconditional.

Take the time to understand the different types of insurance available to you – in New Zealand you can get total replacement, sum specified, and present day value policies. See the Insurance Council of New Zealand website for more information – www.icnz.org.nz.

When selling a house

If you are after a quick settlement, provide as much accurate information about your home’s build and history to your real estate agent as possible to allow purchasers to organise insurance ahead of signing on the dotted line.

You will need to advise your insurance company of the sale, and provide details to them of the settlement date. You’ll also need to continue covering the property with your insurance until settlement, even if you have vacated the house – if something were to happen on the day before the keys are handed over, the costs would fall to you.

When moving house

Many contents insurance policies do not cover your household items when they are in transit, so check with your insurance company if your policy does and, if not, whether they can offer extra insurance for the move.

If you are using a professional moving company, most offer an insurance from the time they pack up your contents to delivery at your new home – something well worth considering in case of the unexpected happening en-route.

When renovating

If you are considering any major structural changes to your house, then taking out contract works insurance is recommended to cover any potential damage caused during the renovation. Renovations such as replacing the roof, re-piling or redoing the kitchen can all be covered by such a policy.

However, be aware there are some exclusions within the policy, including faulty workmanship, so you need to ensure you have reputable professionals carrying out any work it covers.

Going, going, gone! Why we recommend auctions

Andrea.Svendsen@harcourts.co.nz (Andrea Svendsen) — Fri, 13 Oct 2017 02:43:10 GMT

When it comes to selling your house, we know getting the very best price with the least stress is your top priority. Auctions are often the best way to achieve this, as well as offering several other benefits for sellers too. Read on to find out why going under the hammer will likely work for you.

Short and sweet

Auctions get maximum exposure for your property in a short period of time with a structured, intensive marketing campaign over a few key weeks. This approach not only creates a sense of urgency for buyers, but has the added advantage of meaning you won’t have to keep your house clean for months of open homes or agent visits, and you have a defined timeline to plan around.

The market decides the price

Rather than guessing at the value of your home, and potentially placing a ceiling on what people will pay for it, auctions allow buyers to decide for themselves what a property is worth. This means you get a true market value for your home if it sells at auction.

Competition is maximised

A property is worth what any one party is prepared to pay for it, so creating fair competition for your home can push buyers to truly consider their top price come auction day, and may result in you getting more than expected when the hammer finally comes down.

Signed, sealed, delivered

An auction sale is an unconditional sale, which means that once your home passes the reserve (set by you) and the auctioneer declares it sold, you can sign the paperwork and know the deal is done. This eliminates drawn-out contract negotiations, and is often the best option for anyone needing quick settlement terms for another purchase.

Passed in, but not passed on

If your home is ‘passed in’, meaning it doesn’t sell at auction, the intense interest and buyer activity generated in the lead-up to the auction means you usually have an increased chance of selling the home at a negotiated price to interested parties. Your real estate agent will already know who is genuinely interested in the property and can deal direct with them to see if an agreement can be reached.

To downsize or not to downsize: Pros and cons

Andrea.Svendsen@harcourts.co.nz (Andrea Svendsen) — Tue, 26 Sep 2017 22:50:49 GMT

Whether you are retiring, looking to free up some capital, or simply wanting to de-clutter, downsizing can offer some real advantages – but it also comes with some downsides. We weigh up the pros and cons of making this lifestyle change.

PRO: A smaller home means smaller bills

If you are looking to save on daily living costs, downsizing into an apartment or smaller home usually means you will save on basics such as heating costs, electricity, and house insurance.

CON: A downsized home may mean downsized furniture

Moving into a smaller space could cost you some extra money if your furnishings are too big for your new home, and you have to spend on new items such as lounge suites, dining tables and bedroom furniture.

PRO: De-cluttering is the only option

If you (or others in your household) struggle to get rid of clutter, downsizing provides the perfect reason to get tough and minimise. Especially if you are moving into an apartment or unit, storage space will be at a premium, so only the most important possessions should go with you.

CON: Outdoor space and hobbies may be affected

For those who love gardening or lounging around the backyard during the summer months, downsizing can be challenging. However, many people cultivate impressive gardens on apartment balconies, and if this is something that is important to you, look for a home that fits the bill in terms of sunlight and space.

PRO: Less household maintenance

Alternatively, if you can’t wait to retire the lawnmower and hedge clippers, downsizing is a great option. Indoor chores such as vacuuming, dusting and cleaning will also be quicker and easier in a smaller home, freeing up your time for other activities.

CON: Lifestyle changes may be hard to adjust to

Moving from a self-contained family home to a unit or apartment, or even just a smaller home in a different neighbourhood, can present some major changes. You may not be able to have family or friends to stay over, hosting large events may be difficult, and new neighbours in closer proximity could prove challenging.

PRO: Release your capital

Many of us have the majority of our savings tied up in our primary property. Downsizing can offer the opportunity to free up money that can then be used to diversify investments, take a dream holiday, or simply provide more cash flow for daily living.

Building plans and consents: Will they add value when you sell?

Andrea.Svendsen@harcourts.co.nz (Andrea Svendsen) — Mon, 18 Sep 2017 23:48:27 GMT

Many of us have an idea for a potential add-on or major renovation for our home, but we don’t always get around to doing it. So, when it comes time to sell, is it worth getting the plans and/or consent ready to show potential buyers?

Prepping the plans

If you never got around to that extra bedroom, en-suite, double garage or sleep-out, and now it’s time to sell, there could still be benefits to doing some paperwork to help make your property more attractive to buyers.

However, before you do anything, it’s important to think carefully about what these might add to your listing and whether it’s worth the effort. If the project needs building or resource consent, then it will take time and money (time frames and costs vary between councils), and the same goes for any architect plans you might get drawn up.

When weighing up the options, it is essential to consider whether the renovation will appeal to a likely buyer. If it’s an extra bedroom or bathroom, and your home will be popular with young families, the answer might be a resounding yes, and the paperwork already being done could be a real bonus for buyers. However, if the plans are for your dream triple garage that will take up most of the yard, it may not appeal to those same buyers looking for outdoor space.

Plans and consent could equally add value if they address a negative feature of the house – for example, the lack of an outdoor deck – by showing buyers that the addition can be done and allowing them to cross that particular ‘black mark’ off their list.

Having these things in place will only appeal to some buyers though, and the time, cost and energy of securing consents and plans may not add anything for the majority of people who don’t wish to do the work, want to come up with their own ideas, or are happy with the property as is.

Doing the work

If the renovation or add-on is really going to add value by making the property more attractive, remedying a very negative feature, or adding a potential income stream, then it could be a better idea to simply forge ahead with the work before you put the house on the market, and potentially reap the rewards in your sale price.

However, it’s important to discuss such plans beforehand with a reputable real estate agent who can advise on whether it will pay off in the long run, and crucial that you keep the build costs within set limits to ensure you make the best possible profit.

The pros and cons of moving to a new subdivision

Andrea.Svendsen@harcourts.co.nz (Andrea Svendsen) — Wed, 30 Aug 2017 22:50:42 GMT

New subdivision developments are springing up around the country, and attracting buyers from all walks of life. Here’s a look at the good and the bad of these new neighbourhoods.

PRO: Amenities on your doorstep

Unlike older suburbs that have gradually evolved over time and often outgrown the capacity of their local schools, shops and parks, new subdivisions carefully plan these facilities into the area. The benefit of having amenities such as a shopping centre, school, day care facility, and park right on your doorstep can’t be overestimated.

CON: Your commute could get longer

One of the downsides of new subdivisions is that they are often at a distance from main centres, which means some residents face a longer commute to work and schools. They can also be off the beaten track when it comes to public transport, so check with the local council to see if there is future development planned to minimise your time spent in traffic or on the bus.

PRO: You can make substantial capital gains

If you buy early in a new subdivision that boasts a good location and has a reputable building company behind it, you could stand to make considerable gains when you come to sell it. Many subdivisions gain steadily in popularity as they grow, so you may be rewarded when it is time to move on.

CON: A lack of established trees and green spaces

While all new subdivisions incorporate green space into their plans, it’s sometimes a little disheartening to see the tiny trees, shrubs and freshly laid grass lining the streets. It takes time for new developments to establish greenery, so if you’re moving into one, you’ll need to be patient.

PRO: New homes built with the best technology

Looking for the latest in warm, dry and sustainable homes? New subdivisions have the benefit of utilising the latest in home building technology, boast clever storage solutions, and offer easy-living layouts. New homes also cut down on the amount of maintenance required, which means you have more time to enjoy your weekends.

CONS: Your ability to personalise or individualise your property can be restricted

Many new subdivisions place covenants on what you can do in order to maintain the aesthetic of the neighbourhood. Restrictions can include limits on additional structures, the location of washing lines and satellite dishes, the parking of caravans or mobile homes on properties, and guest parking on the street. Make sure you check these out before you buy.

Wash and wear: How to add value to your laundry

Andrea.Svendsen@harcourts.co.nz (Andrea Svendsen) — Fri, 18 Aug 2017 03:25:07 GMT

The laundry often isn’t somewhere we spend much time on when it comes to renovations or updates, but it is a room where many of us spend a lot of time each day. The importance of the laundry in daily living means it could be a deal-maker for potential buyers, so consider these tips to help you ‘clean up’ at sale time.

Bench is best

If you have space in your laundry, adding some clear bench space for folding, sorting or just piling washing is a winning move. The bigger the bench, the better, especially in a busy family home.

Create space

No one likes being crammed into a small, tight space while trying to tousle with bed sheets, so if you can’t increase the actual size of your laundry, think about space-saving ideas. Mounting a washing machine or dryer on the wall easily clears floor room, and you can also add some sturdy hooks on the wall to hang washing baskets.

Storage solutions rule

Storage is usually desperately needed in the laundry for items such as detergents, scrubbers, irons, and household cleaning products. If you can add cabinets and cupboards that fit snugly around appliances and the tub to accommodate these items, it will add considerable value to this room - the more, the better!

Hide and seek

Big, bulky household staples such as dirty laundry baskets and ironing boards can create a lot of clutter, so think about adding clever hideaway storage for these. A large pull-out draw in a cabinet for dirty washing will keep smelly socks hidden away, and wall-mounted ironing boards or drying racks are relatively simple ideas that will keep things looking tidy.

Light it up

Often a small space tucked away at the back or in a corner, laundry rooms are notoriously dark, which doesn’t make the task of sorting and folding washing any more appealing. Add extra lighting where possible so the area is bright, looks cleaner and feels more spacious.

Tidy up wear and tear

As a functional, everyday work space, laundries are sometimes neglected when it comes to regular maintenance. Before you list your home, take the time to give the laundry a thorough clean, touch up paintwork or repaint the walls if needed, and replace broken fixtures such as dripping taps so it doesn’t detract from the rest of your home.

Tips to consider before buying an empty section

Andrea.Svendsen@harcourts.co.nz (Andrea Svendsen) — Thu, 27 Jul 2017 21:22:32 GMT

Buying a piece of bare land is an exciting prospect, but hidden costs and issues could turn your slice of paradise into a headache. Check out our tips on what to look for when shopping for a section.

Take an expert

If a builder or architect is drawing up plans for you, take them along to view the section you are thinking about buying. While you might be considering day-to-day things such as the views, local amenities and neighbours, they can advise on the orientation of the site and whether it’s suitable for the type of building you are planning.

Consider the costs

A beautiful elevated property with stellar views may have captured your heart, but the cost of earthworks such as excavation and retaining walls on sections that are not mostly flat could be considerably more than you expect. There may also be extra costs for any section to connect with the local sewage lines, or hook up to the power, telephone and internet lines, so get a clear idea of what these might be before you buy.

Check the reports

Just like buying a house, it’s crucial to check a section’s certificate of title and LIM report for anything that might impact on the property, such as restrictive covenants on the type of house you can build and where, the materials you can use, erosion or flood risk, and the history of the section. A lawyer can help you make sure everything is in order before you sign on the dotted line.

Understand the plans

Whether you are considering a bare section in an existing development or out in the middle of nowhere, you need to know about future plans that might impact on your property. Contact your local council to find out about roads, reserves, subdivision plans or other development that might occur nearby, and make sure you understand how they might affect your property’s value and liveability.

Spend some time

It may seem like a peaceful spot in the middle of the day when you first visit, but make sure you check out the site at various times of day and in different weather to familiarise yourself with it. Is the traffic louder at peak hours of the day? Is it exposed to wind from a certain direction? Are there damp or swampy patches after heavy rain that might signal drainage issues? It’s important to find out as much as you can before buying to avoid hidden surprises interrupting your plans later on.

Lighten up your home this winter

Andrea.Svendsen@harcourts.co.nz (Andrea Svendsen) — Tue, 18 Jul 2017 02:36:40 GMT

It may be dark and dreary outside, but don’t let the same be said for inside your home. Good lighting makes houses look bigger, feel warmer and helps keep the winter blues away. Here are our top tips for brightening up your property.

Maximise natural light

Make the most of any sunlight we do get by ensuring that trees aren’t blocking too much light from entering your windows, curtains and blinds are fully open, and – if you are renovating or building – that windows are large and carefully placed to catch the most light possible.

Look to the sky

Another way to make use of natural light is to consider adding skylights or solar tubes into the ceiling to allow more light in. Solar tubes, which funnel natural light down a tube from the roof, are a cheaper alternative to skylights and can work particularly well in rooms that don’t usually get much sunlight.

Two (or three) are better than one

Many large rooms in older-style homes were designed with just one central pendant light which may light up the spot over the dining room table well, but leave the corners of the room dim and shadowy. Adding a standing lamp or table lamps in the gloomier spots will give an instant lighting boost, helping the room look and feel more spacious at the same time.

LED is king

If you are updating your lighting, renovating or planning a new build, LED lighting is the way to go, according to the experts. Energy-efficient and emitting a cool, white bright light, LED lights will ensure the shadows are banished in every room, and can be used for strip lighting to brighten large spaces or spot lighting for task-oriented areas such as the kitchen.

Lights in small places

Consider adding lighting to small, dark spaces in your home such as pantries, large closets and short hallways that may not traditionally feature lights, but which otherwise may detract as dark, gloomy spots in a bright house.

Do be dim(mable)

Dimmable lights are a fabulous feature of many modern homes, allowing you to create mood lighting and adjust the brightness depending on season, time of day and activity. Invest in some dimmable lights for key areas of your home such as the lounge and dining room so you can add a little bit of light during dark days, and then crank them up once the curtains are closed to keep your home blazing bright.

Beginner's guide to commercial property investing

kerri.jackson@harcourts.net (Kerri Jackson) — Wed, 12 Jul 2017 07:00:00 GMT

Investment property – commercial v residential

Intro: Familiarity mean residential tends to win the competition for investors’ money. But there are real advantages in investing in commercial property.

When it comes to property investment the residential market gets the lion’s share of attention, whether it’s constant media coverage or advice on where and what to buy for maximum returns.

That is just one contributing factor to why the majority off investors gravitate towards residential property.

Buying a house as a rental seems to be an easy entry into property investment, and in many ways it is. We all live in houses or apartments and so feel that we know and understand them, whereas a commercial property can seem far outside our comfort zone, simply because they are different to our experience of homes and property.

The lack of familiarity raises many unfounded concerns. What if the tenant moves out? What if they don’t pay the rent? What if we lose money?

These are all valid questions, but the key is understanding the fundamentals of the commercial property market.

Tenants only move with a good reason. Not only is there the physical cost of moving, there is the disruption to business and customers, and clients often don’t like change, even a change of location.

Business failure may result in a vacancy, but as with any property investment, location is key. Good locations attract tenants, so taking advice and choosing wisely when purchasing reduces the risk of longer term vacancies.

In the same way that you will always pay more for premium locations with higher rentals, secondary properties, while achieving lower rents, will sell for lower prices, and are likely to still make for very attractive investments.

What really separates commercial from residential investment is the yield on investment.

Residential tenants pay a gross rental meaning the landlord covers the rates and insurance, while in most cases the commercial tenant will let on a nett basis whereby they pay the rent, plus the occupancy costs of rates, insurance and body corporate. The overall result is generally a much higher yield than residential, usually between 5% and 9%, or even higher depending on the location, type of property and lease terms.

In a time of falling interest rates where bank rates for term deposits are also very low, commercial property is an extremely viable option for securing an ongoing income.

For an overview on what's available in the commercial property market, ask your NAI Harcourts sales consultant for the latest copy of our Key Assets portfolio, or view HERE.

Warm up your home with interior design

Andrea.Svendsen@harcourts.co.nz (Andrea Svendsen) — Tue, 04 Jul 2017 01:19:50 GMT

The team at Resene recommend these interior design tips to make your home look warm and welcoming this winter.

Selling a house or attracting new tenants in winter can be challenging.

Potential buyers and tenants may be harder to tempt to come out of their car to have a look around your home.

So how can you make your property look as appealing as possible?

First you need to attract them in. Make sure your letterbox, front door and driveway are well maintained so that it’s easy for potential buyers to find your home and your front door.

Once inside, you can use interior design to make a home seem more warm and comfortable - exactly what people are looking for when they walk in off the freezing street!

Trick of the light

You can start small, with additional lamps and light fittings dotted around the place.

Extra light will brighten up any room in contrast to the grey skies outside, making it far more inviting

If you can match lamp shades to the colour scheme in the room for a warmer effect, all the better, as autumnal colours like orange or red on a shade will significantly increase the 'warmth' of a room.

Rich texture

Have you ever been in a store with fluffy blankets, and just not been able to resist touching them?

Textured curtains, cushions, couch and bed throws work in the same way. They invite you in and make you feel cosy.

Warm colours

If you're thinking of repainting a room or the whole house before a sale, consider making the space more inviting by using warm coloured paints. This doesn’t necessarily mean shrieking bright colours. Warmed up neutrals such as Resene Rice Cake and Resene Bianca can add a subtle sense of warmth to a space while still being versatile to work with a wide range of furnishings.

Remember to also treat your front door to a fresh coat of paint in a bold warm colour for a really warm welcome. Bright reds, such as Resene Pohutukawa or Resene Jalapeno, are always popular. Or opt for a bold orange, such as Resene Adrenalin or Resene Daredevil for a cheery warm hello.

Burnt oranges, ruby reds and rich browns all make a space feel like it radiates warmth, and will not go out of fashion when summer rolls around.

www.resene.co.nz

Things to consider before building a granny flat

Andrea.Svendsen@harcourts.co.nz (Andrea Svendsen) — Sun, 02 Jul 2017 21:00:00 GMT

If you have an empty space in the backyard just right for a granny flat or self-contained dwelling, it might be the perfect way to add some extra rental income or provide for a growing family. Here is a list of things to consider before you start building.

Will it pay off?

Depending on the size and set-up of your proposed structure, a small flat could cost $100,000 or more to build, so it’s important to do your homework on how much you can expect to charge for rent and whether that will cover your costs.

If the sums add up, granny flats can be great long-term investments, and may add considerable value to your property when it comes time to sell as both owner-occupiers and investors will see the potential for extra revenue.

Do you need consent?

If your planned granny flat will have a kitchenette and bathroom, you will most likely need both building and resource consent from your local council, so make sure you check out the rules and get your applications in before picking out the paint colours.

Will it stand the test of time?

It is important to make sure any building is properly consented, and also that you use quality materials and reputable tradespeople so you don’t end up with unexpected costs or problems in the future. This is also essential if you plan to sell the property as buyers will want to be sure the extra dwelling is safe, secure and well built.

Who will live there?

If you are planning to rent the second dwelling out on the open market, make sure you have thought through the logistics of having your tenants living (almost literally) on your doorstep. It will likely make it very important to choose the right people, and may mean you want longer leases to prevent high turnover. You will also need to consider things such as privacy, parking, visitors coming and going, and responsibility for maintenance of any shared spaces.

The same considerations might need to be made if family members will live in the flat, but being able to offer teenagers or elderly parents their own independent space so close to home can be a practical and positive option for many Kiwi families.

A handy checklist for last-minute open home preparation

Andrea.Svendsen@harcourts.co.nz (Andrea Svendsen) — Thu, 29 Jun 2017 23:00:00 GMT

We all know the importance of first impressions, so how your home looks, feels and even smells is crucial when it comes to open homes. Here are some simple and quick tasks you can do around the house before potential buyers arrive that can help your home shine.

De-clutter by putting away kids’ toys, bathroom toiletries, garden tools and anything else that can easily be removed so buyers can assess the house rather than your personal effects.

Open blinds and curtains to let in natural light and warmth, and turn on lights in rooms if they don’t have the benefit of sunlight, as this makes spaces feel larger.

Take out the rubbish so guests aren’t faced with a full bin (or the smell of one!) as they check out the kitchen or laundry.

Turn on heaters or light a fire if it’s a cold day so people experience your home as a warm and cosy space, and can also easily assess the heating options.

Neutralise odours of family pets, last night’s dinner or damp shoes by burning a scented candle, vacuuming thoroughly, or spraying an air freshener so potential buyers aren’t put off by unpleasant smells.

Clean kitchen and bathroom surfaces to show these key areas of your home at their best.

Carry out a quick check for small repairs needed such as blown lightbulbs, a dripping tap or a squeaky door, and fix them if you can. All of these things can distract from your home’s appeal on a first viewing.

Mow lawns so people aren’t distracted by an untidy looking backyard, and so it’s easy to inspect outdoor areas and boundaries.

Trim and weed gardens to ensure they are tidy and will make a good first impression on buyers.

Open gates and unlock doors so people can move easily around your property.