We’ve been saying it for a while, but there is already evidence that the banks want to get their money into the market. There are offers and incentives along with dropping rates….and that even before Bollard left the OCR flat last week.
I was talking with my own personal banker last week and she commented that she had 27 pre-approved loans sitting going nowhere, as they had for up to six months, but noted that in the past week she had heard from 13 of them ‘just checking that the offer is still current…” indicating a plan for action soon.
I strongly suspect that NZ will be recipient of increasing offers and incentives from the banks as the OZ market tightens even further…they need the money to be used somewhere and really, ANZ is the only one with strong Asian presence as an alternative option. My guess? Incentives galore and a bit of a war in NZ for the next few months, esp as Christchur
ch is going to be slow off the mark in view of ongoing rumbling there.
Weathertightness is the term used to describe the resistance of a building to the weather.
Since the mid 1990’s, a considerable number of houses have been built using methods that won’t withstand the weather conditions in New Zealand and therefore will not comply with the New Zealand Building Code. When it rains, some houses are leaking because of problems involving design and installation of materials. In some cases the materials themselves have been used inappropriately.
Once the water or moisture gets behind certain cladding types, and if there is no drainage and ventilation between the cladding and the framework, the water becomes trapped and the potential for fungal growth and rotting rapidly increases.
What you might also want to check out though, is a new player in the ‘Leaky House Syndrome” market…a company that researches the issues in a building, repairs under the tenets of the Dept of Building and Housing’s ‘Weathertighness Division’s prescriptions and the….warranties the property, not just for the current owner but for all future owners.
Check them out at: www.Watertightwarranty.co.nz
It’s not often you get the chance to learn while sitting in a silver tube in the sky but that’s what happened recently! I grazed through the channels and found series of three documentaries that purported to explain how the Global Financial Crisis occurred.
Now, you have to set aside the occasional references to 1940-50s economic philosopher Ayn Rand…but hell, this doco shows up the idiocy of the world economic order. Just watch the first one….and make a good coffee, put your feet up and don’t let anyone interrupt you till it’s finished.
We don’t think so – check out building costs and see if you think there is any profit in a new build? 57% increase in building costs these last 10 years, section costs increased 110%, house prices only 105%.
We are expecting discerning home buyers to find their new home in the existing house market – and those stock levels are low.
January brings a buoyant rental market so many vendors not achieving their desired market return will opt to lock in a healthy rental return for the next 12 months.
BNZ Economist Tony Alexander points out our employment rate is not high, the worst recession since 1930’s has only managed a price reduction of 11%, household debt has declined from 14.3% 2008 to 9.4% 2011, our fiscal measures do not encourage mortgages sales since the debtor still “owes”. Debt is down, deposits are up and the Christchurch rebuild will likely increase new build costs. Don’t expect “buying” 10 minutes from the Capital City to bring “bargains” any time soon.
Our advice; look carefully at the stock coming on and more importantly at the longer listed properties – make a positive decision soon because stock numbers will drop as Easter approaches.
While we often comment on the national market one thing that has been increasingly making itself evident these past few months is that any general, national commentary is almost always fatally incorrect in any local market! So, what I’m saying is that economics “soothsayer’s” comment and or prediction, while to be taken notice of, will not reflect what’s going on in our region, our locality and certainly not in your street.
While nationally, listings are as scarce, as ever, well presented and priced homes continue to be contested. There are two lessons there:
For vendors the need to present a fresh, tidy, uncluttered home is imperative if we are to attract the very canny buyers in the market at present.
For buyers, we note the intense competition for those few well-presented and priced homes on the market and often see disappointed purchasers who’ve perhaps left their offer a little too late and are repeatedly on the outer in multi offer situations. A case of “he who hesitates seems to regularly lose” to coin and amend that phrase.