PROPERTY NEWS

196,500 new homes projected in the next six years

Residential, commercial and infrastructure
building activity is forecast to continue to
boom for the next three years to a record $42
billion in 2020, according to the independent
National Construction Pipeline Report for
2017 released recently by Building and
Construction Minister Dr Nick Smith. “The
principle answer to New Zealand’s housing
challenges is to build more and this report
shows we are on track with record numbers
of new homes in the pipeline.

Getting ‘market value’ for your property

The art of selling anything for its maximum value is always determined
by supply and demand. Whether we are in an ‘up’ or a ‘down’ property
market this rule doesn’t change; buyers will always put their own ‘value’
on a property depending on how well that property matches their needs.
The variation in ‘value’ from one property to another will usually come
down to the number of attributes that a property offers, and the number
of buyers whose needs match those attributes.

Following the publication of the new Standards for Methamphetamine
contaminated properties, Bindi Norwell, CEO, Real Estate Institute of New
Zealand (REINZ) commented:
“REINZ welcomes the announcement of a New Zealand Standard for
The Testing and Decontamination of Methamphetamine-Contaminated
Properties (P8150) as it will begin to provide clarity for real estate agents,
property managers, vendors and members of the public around testing and
decontamination processes.

The latest QVcostbuilder data shows the average cost of building a new
home in New Zealand’s four largest cities has risen on average by 3.5% in
the year to May 2017 and a total of 25.5% since the previous peak of 2007.
QVcostbuilder is an arm of state-owned enterprise, Quotable Value
(QV) and provides the latest construction cost data to the property and
construction industries through an online subscription.

Home Values Continue to Grow Throughout the Region

The QV House Price Index for the wider Wellington region continues to rise with home values up 21.2% year on year and 3.7% over the past three months and values are now 30.7% higher than in the previous peak of 2007. The average value across the wider region there is now $595,501.

March 31, 2017

Who’s managing your property and affairs when you can’t?

Enduring Powers of Attorney (EPOAs) allow you to appoint someone to manage and make decisions about your affairs if you are unable to do so yourself. There are two types of EPOAs; one in relation to property and the other in relation to personal care and welfare. It is generally recommended that you put both in place, so that your affairs are well taken care of. EPOAs are an important thing to consider making, or updating, at the time you purchase and/or sell a property. The law relating to Enduring Powers of Attorney (EPOAs) has recently been updated, and new plain language EPOA forms came into effect from 16 March 2017, replacing all previous versions.

February 28, 2017

Tenant Liability for Damage upheld on appeal

In a recent case a tenant’s dogs had caused damage by urinating throughout
a rental property. The tenancy agreement stated that dogs were not allowed
on the property.
The Tenancy Tribunal had said that the tenant was not liable to rectify
the damage because the landlord was insured, and because the damage
was unintentional.
Recently the District Court overturned the decision by the Tenancy Tribunal.

January 31, 2017

Time running out to have your say on changes to the Unit Titles Act

Time is running out to have your say on the proposed changes to the current Unit Titles Act. The Ministry of Business, Innovation and Employment (MBIE) are inviting written submissions on proposed changes to the Act by 5pm on Friday 3 March 2017. A comprehensive discussion document outlining the new proposals is available as a guide for submissions (See link at the end of this item). The document includes proposals and questions but MBIE welcome other relevant information and comment.

December 31, 2016

Apartment & townhouse law to be strengthened

The Government is proposing reforms to better protect people buying and owning property under the Unit Titles Act, Building and Construction Minister Dr Nick Smith says. “We need better property laws to support the change in our cities, where more people are living and investing in townhouses and apartments. The number of households in unit titles is already 145,000.

November 30, 2016

Adding Value to your property

Two houses in the same location, of similar size and with the same reserve price,
can sell for a big difference in value. It begs the question, how do you add the most
value to a home, and what value do high specifications add in today’s property market? It may be worth spending more on “high spec” features for homes at the high end of the market, but for more modest priced homes you have to be careful not to over-capitalise, or overspend on improvements that won’t increase the value of your home. Whether or not “high specification” adds value differs between suburbs and value ranges because of the demographics of an area.

October 31, 2016

New pool fencing law passed

Parliament has now passed improved laws to better protect children from drowning in swimming pools while also making the requirements more practical and enforceable, Building and Housing Minister Dr Nick Smith says. “The law change in 1987 requiring swimming pools to be fenced reduced the accidental drowning of children from more than 100 per decade to about 20 per decade. The measures in the Building (Pools) Amendment Bill take effect on 1 January 2017 and are expected to save an additional six young children’s lives per decade.

September 30, 2016

Push for LVR exemption for first home buyers

Property Institute of New Zealand Chief Executive Ashley Church says that the LVR restrictions on first home buyers were originally introduced as a precaution against the possibility of a housing market crash – but almost two years on prices have, instead, kept increasing. “This was entirely predictable – and we said so when the LVR rules first came in. Talk of an imminent crash was always nonsense. Even figures out of Treasury show that the New Zealand market hasn’t had a significant fall in house
prices in over 45 years and is unlikely to suddenly have one now”.

August 31, 2016

Lack of supply continues to impact sale volumes and frustrate buyers

The Government is proposing changes to 32 Building Code compliance documents
to ensure standards keep pace with industry developments, best practice and new
research, Building and Housing Minister Dr Nick Smith says. “The construction sector is growing at a phenomenal rate and building activity is at record levels. We need to ensure we maintain the standards of building work through this boom. These new and updated standards are part of our plan for addressing New Zealand’s housing challenges.”The proposals involve adding two new Acceptable Solutions around waterproofing, and amending 32 existing Acceptable Solutions and Verification Methods. These include changes to the requirements for glass.

July 31, 2016

Updates to Building Code proposed

The Government is proposing changes to 32 Building Code compliance documents
to ensure standards keep pace with industry developments, best practice and new
research, Building and Housing Minister Dr Nick Smith says. “The construction sector is growing at a phenomenal rate and building activity is at record levels. We need to ensure we maintain the standards of building work through this boom. These new and updated standards are part of our plan for addressing New Zealand’s housing challenges.”The proposals involve adding two new Acceptable Solutions around waterproofing, and amending 32 existing Acceptable Solutions and Verification Methods. These include changes to the requirements for glass.

June 30, 2016

Managing a Trust’s affairs when a trustee has lost capacity

An elderly man started to develop dementia and was unable to manage his own
welfare or financial affairs. He had a family trust that owned the home he lived in.
He and his daughter were the Trustees. He had set up Enduring Powers of Attorney
for Property, and Personal Care and Welfare, while he had capacity, but had not
considered his trusteeship of the family trust at that time. When he lost capacity completely, his daughter decided that the Trust should sell the home as her father needed to go into a rest home.

May 31, 2016

Wellington region housing growth continues

The latest monthly QV House Price Index shows that nationwide residential property
values for April have increased 12.0% over the past year. Values rose by 2.1% over the
past three months. QV National Spokesperson Andrea Rush said, “All the main centres around New Zealand and many regional centres have seen home values increase during April, with the promise
of continued low record interest rates providing confidence in the housing sector.” The QV House Price Index for the entire Wellington region shows home values rose 2.9% over the past three months and 8.4% year on year and values are now 9.0% higher than in the previous peak of 2007. The average value across the wider region is now $496,812. QV homevalue Wellington Registered Valuer, David Cornford said, “Home values in Wellington have continued to strengthen across the board, with properties in the bracket of $700,000 and under, increasing at the fastest rate.”

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