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.

Russian billionaire investing in Kiwibuild to help housing crisis

Alexander Abramov, who built a $50 million luxury lodge complex on an estate at Helena Bay, north of Whangarei, is investing in New Zealand property development through a vehicle called Targa Capital.

The company partners with property developers and has Overseas Investment Office (OIO) consent to invest in seven residential property developments throughout New Zealand over three years.

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.

Common Moving Mishaps And Easy Ways To Avoid Them

Moving to a new home can be challenging since there’s so much that needs to be done and any mistake can create a difference between a successful relocation and a stressful one. Lots of time and money could be lost if you overlook such an important process. To avoid such stressful and financial mishaps, it’s important that you remain aware of the most common moving mistakes and learn how to avoid them. Here 7 moving mishaps you can learn from to enjoy a smooth moving process.

NOT IMPLEMENTING AN APPROPRIATE MOVING STRATEGY

When you decide to relocate, your first line of action is to decide if you’re going to hire professional moving companies or perform a self-move. If your choice is to make use of furniture movers, you need to book them in advance and decide on the moving date that suits your schedule. Try to avoid moving during spike season or at the end of the month otherwise, you stand the risk of being delayed as the available movers would be restricted and the cost of moving will increase.

Remember to put the moving date in your schedule and properly adjust your affairs until the day you relocate. Failure to do so might cause you to miss an important detail or prevent you from allocating enough time for your moving process.

USING THE WRONG PACKAGING METHOD

Many homeowners prefer to save money during moving by packing themselves. However, there are often missteps that leave these DIY packers with unnecessary problems on your moving day. One of the common mishaps is the use of heavy boxes. Presenting heavy boxes will make it hard for the movers to lift it. While there are professional movers, they also come with some limitations.

Ensure you pack heavy items such as shoes and books in medium-sized boxes. This allows for easy carriage and will also save you a lot of stress and time. When you pack heavy items in a weak or damaged box, you risk damaging your belongings. Remember to assemble fragile items such as lampshades and cooking wares into sturdy boxes.

NO INVENTORY

So you’ve assembled your items in all boxes while implementing care to wrap fragile items and maintain a reasonable box weight. You think you’re set to take off then it hits you that you have no idea as to the content of each box. This is a common problem faced by many homeowners-not taking inventory.

On the bright side, there are easy ways you can avoid this by making a list of every item you put inside each box. Apply a good numbering system and label the content as well as stating the exact room of your new house they should be stored. This process will enable you to have a good understanding of where your belongings are kept.

Creating a detailed inventory will also save you time when settling in while ensuring that the movers didn’t forget any item behind. Make use of online inventory apps when planning your move and keep a detailed list handy in case you need to file a case with your home insurance company.

MISUNDERSTANDING INSURANCE NEEDS

Majority of homeowners tend to believe they don’t need to buy insurance because various professional movers are inclined to cover the expenses for any damage incurred to their belongings during the moving process. This is true but depends on other factors. Other homeowners opt for ways to insure their valuables even though the expense is close to the cost of their affordable items.

If your inventories contain fragile items that are worth a significant amount of money it’s probably best to consider insurance as a good investment for the safety of your possession and your peace of mind.

NOT COMPARING ESTIMATES

Another common moving mistake is not comparing estimates and finding the one that fits your set budget. Though finding a reputable mover that uses a shipping container is part of the moving plan but you also have to ask for estimates before embarking on any deal. Deciding on the estimates involves certain factors such as the size of your home and the type of moving company. Some of these movers will either carry out an in-house estimate or offer you one online. If you jump on the first offer or even fail to ask for a quote, you could end up paying more than you should. The right approach to select a suitable moving price is to ask for up to 3 estimates and compare them. As soon as you’ve figured out the top best movers then you can use the estimates to choose the moving company that is affordable.

PROCRASTINATION ON TASKS

Depending on how large your items are, your moving process will require a long list of tasks. It can get overwhelming and even lead to the common mistake of procrastinating the start of the moving process until it gets to rush hour. By not starting the moving process on time you’ll be contributing to the overall stress of your relocation and might even forget other tasks.

To set your moving process on the right path, it will be beneficial to create a moving checklist. This process will enable you to plan time-sensitive tasks, avoid unnecessary problems and get your plans done on time.

NOT SENDING MAIL ON TIME

You’ve told your landlord and utility company about the day you plan to move out but you leave out the mail. The extra trouble is that most people find it hard to determine when to begin this process and how long it will take. With the right steps, you’ll be able to avoid this common mishap.

The best way is to ensure your mail gets to your new home without delay is to start the mail forwarding process just a few weeks prior to your move out. Choose the date you want them to begin forwarding your mail and indicate that you’re relocating permanently. This process doesn’t cost much and you can pay with a credit card.

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.