Christchurch developers sell out of inner city homes

The Christchurch City Council has a target of 20,000 central city residents by 2028. An estimated 7000 to 8000 people live in the area now.

The Crown-led east frame housing development, an anchor rebuild project, has so far delivered just a fifth of its intended homes.

Housing affordability at worst point in ‘at least 17 years’

The latest CoreLogic Housing Affordability report puts the average house price-to-average household income ratio in the last quarter of 2020 at 6.8 nationally. That’s the highest level since late 2016 and in 2004, when it was also 6.8.

It climbed from 6.5 in the third quarter of 2020, reflecting a dramatic upturn in the housing market in the last part of last year.

Investors buy record share of homes as first-home buyers squeezed

National median house prices jumped to $730,300 last month, up from $612,000 last January, the Real Estate Institute revealed yesterday.

Auckland prices jumped 15 per cent to $1 million, up from $870,000 in January 2020.

ASB senior economist Mike Jones described the numbers as “jaw-dropping”.

“That is a high not seen since 2004, a boom year for the New Zealand economy [when] GDP growth exceeded 6 per cent,” he said.

Wairarapa home RVs rise again

Homes throughout Carterton, Masterton, and South Wairarapa districts have seen another giant leap in rateable values, after jumps in 2017 and 2014.

The ratings were expected late last year but delayed due to changes in the auditing process.

The average value of a home in Masterton rose by 47.3 per cent, to $498,291.

Rents soar after Covid-19 freeze ends

A rent increase of $50 per week reported by some would mean almost the entire estimated average cost of complying with the legislation ($3000) was being passed on.

Infometrics economist Brad Olsen said the ability of landlords to pass the cost of these upgrades on to renters was evidence of how much market power they had because of a major imbalance between supply and demand.

IS A RENTAL PROPERTY STILL A GOOD INVESTMENT OPTION

While there are countless ways to invest your money, real estate has proven to be one of the best long-term investment options. If you’re looking to get your first investment property, the best way to invest in real estate is to buy a rental property and lease it long term. While this process involves a considerable amount of effort, most investors realise that commercial property investment provides the best results. You can gain consistent cash flow and a long term-term investment return. Providing rental management services is one of the best ways to grow in real estate.

Here are a few reasons why purchasing a rental property is a good investment.

HIGH RETURN ON INVESTMENT

Both High leverage and high ROI have relatable interests. When you use mortgage loans for an investment, you’ll be using only a small part of your own money to invest in property management, which means you gain a high return on your investment in the long run. In addition, on leasing the property to a tenant, the rent is structured to not only cover marginal expenses but to also cover the interest payable on your mortgage loan. As a result, you have a higher interest than other investment types. Your ROI increases as your profits exceed the interest you owe. This explains why real estate is considered to have a high return in the long run and is perceived as a high performing asset with commercial units for sale. An additional benefit is that any increase in value on your property makes your ROI increase further. With the high leverage in the context, your monthly cash flow increases which leads to an increase in your ROI.

TOTAL CONTROL

Buying a rental property means that you’re in total control of the tenant you’ll lease to, how much you’ll charge for rent and you’ll plan for house property management and maintenance while leasing the property to tenants. There are other ways to derive cash flow, you can decide to use services like Airbnb to provide a short term vacation stay or contact reputable property management companies and strata body corporate to assist you to locate and service long-term tenants.

According to the type of tax deduction, the cost of repairs on the building will be deducted in the year in which they are carried out.

Similar to investing in a stock, you’re in control of the stock you wish to invest in, you have the opportunity to hire someone to manage and control your income.

ABILITY TO ENSURE YOUR PROPERTY

While many investors opt to purchase rental properties, they don’t consider that they can ensure the property investment. With the right insurance coverage, you can protect the property so matter the incident that occurs you’re fully covered. If you’re concerned about the cost of insurance, you can make a plan and incorporate it into the rent that your tenants pay.

In addition, you can deduct insurance premiums from any insurance policy related to your rental property. Some of them include the cost of employee insurance, theft, fire outbreak, or natural disasters.

DIVERSIFY YOUR ASSETS

The power of diversification is fully harnessed in real estate investment. If you want to achieve reasonable benefits without high risk, it is advisable to invest in many other markets. The real estate market has its domain and your property is included. Real estate is a valuable asset to own because it appreciates over time. Even as there have been past market crashes, it has still proven to be a safe and steady market, especially in the long run.

Another good thing about real estate is the ability to research the market based on your preferred choice of location. You can keep up with the newest trends that will guide you through your decision-making process about the real estate market, which is a much favourable environment compared to the stock market.

MORTGAGE ASSISTANCE

If your home mortgage falls under the 30-year fixed-rate mortgage, it means your interest rate will not change for the entire 30-year term of the loan. As the loan is initiated, additional money is paid to interest than to principal, but as soon as the term is halved, it reaches an equal split.

 

This means that the longer you hold your property, your tenants’ fee covers more of the loan principal, which also means you’ll be creating more wealth for yourself.

As long as you own the rental property, you’ll be using the tenant’s fee to pay off your debt. While you reduce the loan fee, you will be acquiring wealth and consistent cash flow as you will always have unlimited access to the money either by flipping and selling or refinancing your loan.

WARD OFF INFLATION

Real estate handles rising inflation better than other domains. This is because as prices go up, the value of your asset increases. You can easily ward off inflation when you make use of leverage to invest in rental properties with a low-interest rate. Many investments are at risk during inflation because there’s a high chance it can reduce the value of assets.

On the other hand, the benefit of real estate investment offers a great way to protect your wealth. The increase in rent makes it possible for you to accumulate more money which will always come in handy as prices of goods are likely to increase during inflation.

DECIDE TO SELL AT ANY TIME

A rental property is a good investment option because you can decide to sell whenever and however you prefer. While it is advisable to hold on to your investment over the long term, no fixed rule exists. You are in charge of every selling process. There are many different exit strategies you can take leverage to maximise profits. The choice is up to you. With the right real estate accounting, you’re likely to sell your property at a higher price than the initial cost.

Before you transfer rights of your property, ensure you find a conveyancer and get the necessary conveyancing quotes.

Alternative Housing Ideas To Travel And Save Money

If you’re feeling the pinch but still don’t want to have to sacrifice travelling, then perhaps you should consider looking at some alternative housing ideas. By doing this you will be able to save money whilst at the same time still be able to travel. Below we will provide you with some ideas to think about when it comes to alternative housing so you get thinking about storage solutions and selecting the right moving company as soon as possible. 

House sitting

If you don’t want to purchase an alternative house then you could consider living in someone else’s home. For instance, you could use options such as Airbnb. There is also the option to stay in a hotel long term and this can be quite cost-effective in many countries. The best option, however, would be to be able to housesit where you can stay in someone else’s home free.

Work

If  teaching is something that you’ve always fancied then you could consider getting yourself qualified to teach abroad and this will give you the option to live for free. Quite often, many schools will provide you with an apartment and these usually have additional facilities such as a gym. This option means you can live for free and any money that you save you can then invest in property.

An RV

If the thought of an RV conjures up an image of a battered old bus-like vehicle from the 1970s then you’ll be very mistaken. These days RV’s are actually quite luxurious and quite often they include huge slides. These are rooms which come out of the main section of the home and mean that you will have ample living space when you are parked up. Many RV’s include state-of-the-art kitchens, fully equipped bathrooms, king-sized beds as well as a spa pool.  Ultimately, you can make living in an RV as luxurious and comfortable as you like, it all depends on your budget and how much you’d like to save. You don’t necessarily have to live in an RV all of the time as you could just use it for when you decide to travel. Alternatively, if you prefer to save money then you could consider living in an RV full time and take advantage of a more nomadic style of life.

Container homes

It is easy to have a container home shipped to you and you will probably be surprised at how homely they can actually feel. If you don’t like the metal look of the home, then cover it up.  The beauty of container homes is that you can purchase more than one so that you can make an alternative home to suit your preferred size as well as shape.

A tiny house

If you’ve not heard of a tiny house then it’s simply a small house that can attach to the back of your truck or your car. The advantage of having a tiny house over an RV is that you don’t have to get rid of your truck or your car, as long as it’s able to pull a tiny house. This means that it’s a much cheaper option than buying an RV.  The other advantage of a tiny house over an RV is that you won’t require water or power from an RV Park. A lot of these tiny homes have their own filtration and rainwater systems as well as solar roofs. This then means you can park up anywhere and settle there for as long as you desire, that is as long as it’s legal to do so.

Prefabricated cabins

If you are lucky enough to have some land, then you could consider a prefabricated cabin.  Another option would be to buy a cabin kit and then design and build this yourself.  Prefabricated cabins have the ability to host solar panels which you can use as a source of electricity. They also have water tanks for fresh running water and can also accommodate a heating system. It may be worth considering contacting a local after builders cleaning once you’re done to help you out so that you can get on with making your new house into a home.

A houseboat

Nowhere does it state that you have to live on dry land. You could consider purchasing a houseboat. Many houseboats have more than one bedroom, come with running water, heating facilities, full electricity as well as other mod-cons such as televisions etc. If you decide to sell your home and purchase a houseboat you will have the freedom to be able to sail all over, whilst at the same time reducing your living expenses. 

House hacking

With this idea, all you need to do is to purchase a home and then think of ways of how someone else will pay the mortgage on it. The easy thing to do is to buy a small multi-family home and then rent it out. This is one of the more difficult options if you’ve never rented out of purchased a home before. If it’s hard to find a multi-family property in your area, you could consider buying a home where you can rent out the bedrooms individually i.e. to students or look for a commercial property for sale which you could rent. Another option would be to let out a room in your own home to a student for example. 

Across the world, property is the most expensive purchase that we all make. If it’s possible to save money and reduce financial costs, you will see the benefits of the money that you have managed to save. The additional beauty of choosing an alternative house means that not only will you save money, you will also be able to travel and visit destinations that you otherwise may never have had the opportunity to see. 

5 Signs That A Suburb Is The Rise On The Property Market

The property market across the world has seen a bumpy road in the last couple of decades. Although this is the case, property has always been a good investment as in most cases if you buy at the right time, your money will be safe. If you’re looking for a property to buy, you will usually be looking for your main residence so it has to suit what time of life you are in. 

So if you have children, you will require a family house or if you’re a young professional, you may want to be close to work so that you don’t have a large commute on your hand in the early years of your career. That said, there are a number of other factors to consider when you make your final decision. One of these factors has to be which area you would make the most amount of money in. In the past, the property market would suggest that inner-city areas in popular vibrant capitals would often yield the most money and cost the most to buy, however, the suburbs are now on the increase and are seeing a massive rise in the property market.

Property Advice

Let’s now take a look at some of the signs that the suburbs are seeing a rise in the property market. Before you embark on buying a property in the suburbs, you will need a trust lawyer,  conveyancing quotes,  maybe a new house loan and it advisable to make use of an investment property calculator. The above aspects are always a good place to start when looking at the property market. If you are looking for a more investment type of property, i.e. you may be looking for farmland for sale, you will require business insurance. Again, the market for this type of property is also on the rise as many would-be investors look to maximise the amount of money they can make from their investments.

Let’s now consider some of the signs that suburbs have seen a rise in the property market.

  1. Demand

When we advertise a property, we always assume that it’s going to take months or even years to sell the property. A good way to determine how much demand there is for a property is to see how local sales have gone in the area. If your property has been on the market for a very short time, you will notice that that means the market is improving in your particular location. Suburbs have seen a massive rise with this and we are seeing that properties in suburban areas are being snapped up very quickly, which is often leaving a short supply that does not meet the demand.

  1. Auctions

Auctions are another sign that the property market is showing a rise in popularity. Suburban areas are now seeing a rise in the number of options that are taking place. This increase is to make sure that the number of people viewing a property for auction meets the demand of the area. Auctioneers are making sure that these properties are full of potential buyers to make sure that the vendor has the maximum opportunity to complete in the sale.

  1. Discounts

Discounts are a major thing if a property that you have been viewing has been set for a certain price for some time and the vendor is willing to offer a significant discount, then you can tell that this property has been hard to sell and the demand is low. However, in suburban areas, we are now seeing less of a discount for properties and they’re selling for their asking price. This is a surefire indication that the market for suburban areas has increased and shown an increased potential rise due to the lack of discount offered by vendors and auctioneers.

4 Infrastructure growth 

It has to be said that governments around the world have always put large amounts of money into their capital city areas or large cities within a country. Transport links, internet connections and other technological advancements have been put into inner-city areas for a number of decades. As these areas are overpopulated, people will begin to look into suburban areas which means the development and infrastructure improvements has helped bolster prices of suburban property. Transport links and infrastructure has also improved dramatically over the years in these areas with the advent of smart technology. There is also a growing need not to go into work so you are able to work from your home. This means you are able to live further away from your place of work and this has given the suburban areas rise in popularity.

  1. Vacancies

The number of vacancies that are available in suburban areas has decreased dramatically in times gone by. Before you would have been able to have a large choice of property in suburban areas. Whether you are renting or buying, these properties were not often snapped up and many were left on the market, giving the buyer lots of choices. This is an indication that suburban areas have now seen a change as the number of vacancies for properties for rental and buying has decreased, showing that the growth and rise in the property market in suburban areas has improved.

As you can see from the above points, the rise in the property market in suburban areas is clear to see. This type of growth will continue as long as urban developments stay saturated and the demand for infrastructure changes remains high.