Back to the future Part II Whenever I am asked “what do you think the market is going to do?” it makes me think of Marty McFly when he attempted to bring a sports almanac home to the past so he could profit at the bookies. His was an excellent plan, but unlike Marty McFly we don’t have a time machine, so instead, we try to understand factors which have the potential to affect the market. Here are...
As the spring market heats up, many of you will have started researching agents to sell your home. When you are selecting your agent, it is easy to buy into one angle or another, but beware. Real estate is not scientific management. Your agent combined with their recommended sales and advertising strategies can have a significant impact over your eventual sale price. Here are a few criteria which will help...
Normally when our property market is experiencing rapid growth, the Reserve Bank seek to steam the rise by increasing interest rates. Why is it then that our rates are at the lowest levels in NZ history? Currently the powers that be are trying to limit the damage that an overheated market can have on the country versus the damage a high dollar (and zero inflation) can have on exports and the economy....
Whenever there is hype in a particular sector of the economy, the media approach unqualified experts for their take on what is happening. Real estate is no different. In fact as far as ‘unqualified experts’ go we are probably among the worst offenders. In real estate, companies and agents jump at the chance to offer their two cents. For example, adding fuel to the fire of an overheated real estate...
There has been a lot of talk recently about New Zealand’s ‘property crisis’. This ‘crisis’ refers to both the cost and supply of housing. Talks of capital gains taxes have been renewed, only this time commentators and some economists have suggested including the family home. The problem when you attempt to disrupt a natural market cycle with policy is that, in some instances, you will create...
It has been said that climbers who choose to scale the mighty Mt Everest actually face the most danger on their descent. In the minds of many, successfully scaling the summit is the goal. But, the relief of reaching this milestone can cause a lack of focus on the return to base camp. The same holds true for the NZ property market. With many areas of the country, including Wellington, showing strong growth,...
I picked up a copy of the Dom Post property section recently and was surprised at how dated this form of advertising has become in just a few short years. Some of the images were so small that details were indistinguishable, appeared faded and often pixelated. This in comparison with the now crisp, clear images I am used to browsing from the convenience of my phone or PC. In the age of technology with...
A pinch of rateable salt. For those who don’t live in Wellington, or read the Dominion Post, you may have missed a recent article heralding the success, or otherwise, of a real estate company who had achieved a sale price of $700K above the RV for a home in Wadestown. The company in question waxed lyrical about the result but omitted key facts notably that the property had undertaken extensive...
The answer to a question I am often asked ‘What makes a good property investment?’ is somewhat driven by personal motives. So, before setting out on your quest to become 'The Donald', it is best to consider ‘what do you want out of your investment?’ Properties generally fall into two camps: 1. Properties that are likely to make good capital gains; either through buying and holding or...
Real estate agents are very good sharing their ‘lotto stories’. They are the ones where the property sold far in excess of what the agent or owners anticipated. You may have seen the lucky vendors performing cartwheels in front of their proudly placed sold stickers. Like winning lotto, it doesn’t happen for everyone, but you need to buy a ticket to stand a chance. So how do you win the property...