Harcourts, winner of the Reader’s Digest Most Trusted Real Estate Brand 2020. Thank you, New Zealand!

At Harcourts, we are committed to providing you with a full range of property and real estate services, no matter where you may be in your property journey.

 

Harcourts full range of property and real estate services includes selling, buying, leasing, renting and investing across residential, commercial and rural properties.

 

We are honoured that New Zealanders have voted Harcourts the Reader’s Digest Most Trusted Real Estate Brand for the eighth year in a row.

 

For 132 years, New Zealanders have entrusted Harcourts with their homes. We’ve worked alongside our clients through good times and we’ve been there to support them through the most challenging of times.

 

We will continue to earn the trust of New Zealanders in the months and years ahead, and we remain committed to maintaining the highest level of service to our clients, landlords and tenants.

 

If you need help with the place you call home, get in touch. We’re here to assist.

 

 

 

Whilst it is still too early to understand the full impact of COVID-19 on the property market, those willing to enter the property market now and purchase their first home will benefit from a number of changes.

 

Interest rates

Currently we are seeing record low interest rates with major banks going to war over mortgage rates. ANZ was the first to slash their interest rate down to 2.79%, however it is Kiwibank that now has the lowest rate at 2.65% per annum and ASB is sitting at 2.69%. As the competition is heating up amongst the banks, so is the demand for houses under $1 million as more buyers enter the market.

But what do low interest rates mean? An interest rate is the percentage you are charged on the amount you borrow, it’s what you pay to use the banks money. A low interest rate means you are paying less to borrow money and have more spending money in your pocket.

 

Loan-to-Value-Ratio

The Reserve Bank recently decided to abolish the loan-to-value-ratio (LVR) restrictions on new mortgage lending, you can read the full story here. It was axed during the New Zealand nation wide lockdown due to the COVID-19 pandemic so local banks could continue to support their customers through the impact the virus had. This means you no longer have to save a 20% deposit to purchase your first home. However you will still need to pass the banks credit and income requirements which will include having a job where you feel secure in your employment. If you are applying for the First Home Loan you will need to have as little as a 5% deposit.

 

Motivated sellers are ready to be realistic

Sellers who already had their property on the market pre-lockdown had high expectations and are now ready to take trusted advice from us on what is realistic. Ina slower market you will have more opportunity to negotiate with the vendor and the agent will help to reach an outcome suitable for both parties. If you see a home you love, don’t be afraid to put in an offer, you never know what the outcome may be.

 

Investment returns

If you are almost in a position to purchase your first home, speak with your parents about helping you with your deposit. At the moment they would get a 3.5-4% return on their money which is a great investment return whilst also helping you get into your first home.

Purchasing a property with your parents means they will have a share of the property and will be registered on the title of the property. They will be able to protect their investment in your first home and also have a share in the capital gain on the property when you decide it’s time to upgrade and sell.

 

Read more information on financial help and tips for first home buyers here.

Global Financial Crisis

The answer to the overarching question “What will the property market will look like in a few months?” is unknown to all, but we can compare the current crisis to the last bubble that burst.

The GFC lasted for 18 months but the true state of the secondary finance industry took longer to come through with South Canterbury collapsing in 2010.

Some quick facts from the GFC;

• The property market was already slowing with mortgage rates increasing in 2006/7 from 8% to 11%.
• Property was purchased with 95% mortgages and funds were readily available to developers who created a surplus of sections and apartments
• Unemployment rose from 4 to 7%.

 

Median Sale price over 20 years

 

The GFC correction resulted in a 10% reduction in median house price in Queenstown Lakes with lesser falls in Central Otago and slighter reduction in Dunedin.

The Central  market had slowed before GFC and it entered the downturn with an oversupply of  Managed Apartments and Sections for sale. Over the course of 2 years these reduced in value by 50% which brought down the median value. Good suburban houses held their value although those with deferred maintenance or poor design softened in value.

 

Sales volume over 20 years

 

Between 2007 and 2009 sales volume reduced 40% in Lakes and Central Otago region which is about 25% lower than 2019 volume. Dunedin reduced to a level 10% below today’s volume. The segment with the biggest reduction in volume were apartments and section sales. Family homes were less affected.

 

Current Situation

The country is in a stronger financial position than it was in 2007 with low debt and also a good trading surplus up to now. The Banking industry has been lending responsibly and maintained good reserves plus  the Farming and Horticulture sector are still performing well with China back buying our exports.

The government’s fiscal response has been fast with five times more funds already handed out than during the GFC and I believe there will be more financial relief to come.

Unlike 2007/10 all markets currently had a shortage of property for sale. Sales volumes had not reached unrealistic levels with less speculative building.

Most property owners have at least 25% equity in their property and the mortgage relieve will help those with short term cash flow problems.

 

What we don’t know

What is unknown is how a global lockdown down will affect global financial stability, especially in Europe and what the repercussions will be.

Will there be a domestic  winter ski season for Otago? How long will this lock-down be in place for?

 

What might happen (based on a 4-6 week lockdown)

During periods of uncertainty the fall back position for most is to do nothing which creates opportunity for the brave.

Some newly established businesses or businesses previously trading under financial pressure unfortunately will fold, especially in the hospitality industry. This will lift unemployment or may result in selling property to support the business venture.

The second home market will be weaker until the countries economy recovers.

Managed Apartment demand will be weaker until occupancy recovers. There is volatility with operators in this sector, especially those that provided a guaranteed return.

Prices for family homes in new subdivisions will reflect closer to replacement cost.

The majority of owner- occupiers have at least 25% equity in their property and will be in a position to ride out any downturn.

After the lock-down comes to an end people may decide their current house is no longer suitable after being confined in it for a long period of time, or decide they can no longer live with those people they were isolated with.

Investors will  look at property as a safe investment as it isn’t subject to the volatility  of the share market. A reduction in rents will be offset by the benefit of lower interest rates for a longer period of time.

The impact will be quicker  than the GFC with no fewer continued surprises. This is due to better regulations and disclosure around the financial industry and public companies. The proviso to this is that the World Bank helps some European countries obtain financial stability and that the virus is under control in most of our trading countries within six months.

 

 

Are you thinking of selling your home in 2020? Remember you only get one shot at making a good first impression. Take advantage of this time to do some of the touch ups needed, you won’t regret the investment.

 

Those with time to plan the sale of their property can complete home maintenance and even plan or undertake some small renovations, and decorate in preparation for the sale.

There are a number of quick and easy ideas you can employ to get your home looking its best to make that all important first impression a powerful statement, so your property stands out.

 

Street appeal

Take a walk down your street and make notes on how your property compares to others, and what it would take to make it really stand out. Ask a trusted friend to help point out any minor changes you could make to add up to a great first impression.

It could be as easy as oiling or painting a front gate. Ensure your front gardens and lawns are tidy so visitors form a favourable impression to get them feeling positive by the time they get to your front door.

 

Small repairs

Make a list of repairs required and fix them up. Replace all light bulbs that aren’t working. Small renovations won’t break the bank but they could have a big impact on offers. Ask the professional opinion of your local Harcourts sales consultant to ensure you are committing time and money on the most profitable parts of your home.

 

Declutter

Declutter your home and keep it simple. Stimulus overload can quickly turn potential buyers off. Remember, when there is too much to see, we don’t see anything.

Crowded rooms seem smaller than they are. Buyers don’t tend to bring a measuring tape and instead will assess each room mentally. If your furniture dwarfs your space, they will find it hard to picture themselves having enough space to live there. So make a plan to either sell or store excess furniture.

 

Freshen up

Post lock down look at having carpets and drapes professionally cleaned to remove any odours from pets or smokers. Get fresh air circulating around the home at every opportunity.

Buy or borrow modern accessories to liven up various parts of your home. A new stylish shower curtain and matching towels can do wonders to lift a bathroom. The latest throws, pillows and vases in a bedroom or lounge can add a new lease of life to cover outdated pieces.

 

Selling a property which is tenanted requires open communication and an understanding of everyone’s rights and responsibilities. You must advise the tenants in writing, you and your real estate agent need permission from the tenant to access the house for photography, open homes or viewings. Permission is also needed from the tenants before including any of their possessions in marketing photos.

Before putting your property on the market, discuss your ideas with your Harcourts sales consultant. With their experience and local knowledge they can assist with even smarter ideas, knowing what appeals to buyers as part of that first impression. They can help you get the ball rolling.

 

 

If you’ve decided to sell your home, you’ve now got another huge decision on your hands: which method of sale to choose. Auctions have become the preferred method of selling property in most areas across the country.

 

Auction is a very popular method of sale in New Zealand because it helps you achieve the highest price for your home in a short timeframe.

 

Seller advantages

1. You’re in control throughout the process.

YOU set the terms and conditions which mitigates the chances of any surprises at settlement. And YOU decide on a confidential reserve price — the minimum amount you’ll be happy to accept for your property. This control means the seller is very likely to leave the auction process with a result they’re happy with.

 

2. Heightened interest without a fixed price.

The property is marketed with no fixed price (the reserve is kept between the seller and the auctioneer). This broadens the pool of cash-in-hand buyers who will look at the property, making it more likely they’ll find interested parties.

 

3. The short marketing period returns maximum results.

The fixed and relatively short marketing period allows the seller’s consultant to gauge the level of interest in the property and assess what prospective buyers might be prepared to pay. This gives the seller the potential to achieve a high price.

 

4. Buyers feel a sense of urgency due to the fixed time frame.

The auction itself generates a sense of urgency and competition which brings buyers to a decision within a restricted time frame — usually within a 3-4 week period.

The auction programme is a very organised and structured process over a defined timeframe. Sellers know when their open homes and marketing are going to take place and they have the date set for the property to be sold on.

 

5. Reduced risk with cash-unconditional bids.

A final major benefit for sellers is that bids must be cash-unconditional. This eliminates any buyers that depend upon conditional factors like building reports or the need to receive finance which might make the sale less likely.

 

Get in touch for more information about selling at auction; and for our comprehensive guide to selling at auction, we go through all the benefits and drawbacks, how to prepare for the big day, the benefits of open homes and tailored marketing strategies — and much more.

 

 

 

In between the skiing, thrill seeking and hot tub experiences, Queenstown offers some of the best restaurants, bars and cafes in New Zealand. If you’ve just moved to Queenstown or are thinking about making the move, here are some dining places the locals like to eat and say you can’t miss whilst in Queenstown. Prepare your taste buds for an incredible experience.

 

1. A taste of culture

For a wide menu choice to suit all dietary requirements White + Wongs should on your list whilst in Queenstown. Complete with stunning interior and wide spaces to suit large and small groups, the food and beverages from White + Wongs never fail to make your taste buds dance.

Another favourite among the locals is Madam Woo which offers an authentic experience with dishes to die for. You will want to book in advance for this restaurant as everybody wants to have a slice!

If you’re looking for a light snack or light lunch and have dietary requirements don’t miss Taco Medic whom offer authentic Mexican food. Affordable and tasty, tucked away in a quiet lane.

 

2. Fine Dining

For an absolute treat divert your attention to Rata, an award winning restaurant focused on a second-to-none dining experience and well balanced New Zealand cuisine. You can guarantee the restaurant to always be busy- make sure you book before you go!

The Grille and Botswana are also amongst the favourites, offering stunning views and outdoor areas to enjoy a delicious meal or a celebratory drink.

 

3. A bit of brunch

Yonder and Vudu Café are certainly the local “go to” cafes for your morning coffee, breakfast or a classic brunch with friends and family. Both cafes cater to a wide range of dietary requirements by menu and have food cabinets to make your mouth water. Both known for their wholesome approach, you are sure to find something to satisfy anyone including gluten free, diary-free, vegetarian and vegan diets.

 

4. Wine time

Creating award winning wines paired with delicious food Gibbston Valley provides a unique experience with their winery, restaurant and cheesery. Choose between a full lunch or dinner in the restaurant and optional wine tasting, or enjoy the sun at the cheesery with a platter for two.

To match the highest quality clothing Rodd and Gunn offers it’s attachement, The Lodge Bar, mirrors high quality. Offering the finest New Zealand wines and warm setting to enjoy a light snack or after work drinks.