House sales plummet 12.9 per cent

Capital gain tax talk, banks, Government blamed
12 Apr, 2019 9:05am
NZ Herald online
Banks, the Government and the prospect of a capital gains tax are responsible for causing "uncertainty" in the housing market due to law changes and tighter lending, as sales volumes drop 12.9 per cent in the last month.Real Estate Institute data out this morning cited "uncertainty around legislation and difficulty accessing finance" which it said continued to hit sales volumes throughout the country.Bindi Norwell, REINZ chief executive, said: "At a time when sales volumes are normally very strong and total sales figures for the country are typically well over the 7000 mark, with 6938 sales this was the lowest number of properties sold for the month of March since March 2011."
Mortgage interest rates had never been cheaper but "the legislative changes on the horizon and the difficulty accessing finance are now really starting to impact the housing market in terms of sales volumes," Norwell said.The law changes she referred to were not just the possibility of a capital gains tax but also Residential Tenancies Act reforms demanding landlords to improve properties, the foreign buyer ban, abolishing letting fees and anti-money laundering moves.


No Letting Fee!

 
 
 
From the 12th of December 2018, we are not allowed, by law, to charge a letting fee to tenants.  Letting fees have traditionally been collected from the incoming tenant to help cover the costs of advertising, marketing, the time and travel costs involved in conducting viewings, credit and tenancy tribunal checks, reviewing multiple applications, background checks, bond receipting and lodging, marketing the property, and photos.  
So what has CHARTA done to manage this legislative change?
How do we cover these costs now?  
We've been watching the market and believe we've come up with a solution that will work for everyone. As a valued client of Charta, you may be aware that unlike other Property Management companies we DON'T charge for quarterly inspections, we DON'T charge an annual marketing fee and we also DON'T charge for attending the Tenancy Tribunal disputes or mediation's.  These additional costs were offset by the letting fee which we now are prohibited from charging to tenants.So to maintain high levels of service we will be adding a small percentage to our annual administration fee, please refer to your owners newsletter for details or contact us directly.


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APac Insider have recognised our massive efforts to improve our customer service, deliver an excellent website and rejig the company culture.These and a heap of changes to our processes and procedures have seen us go from negative reviews to tonnes of positive ones in less than 12 months.Thank you APac Insider and thank you to all of our customers and clients for your feedback which has helped us achieve this.Keep watching, because we’ve still got a lot to do. .


REINZ data suggests "buyers' market" in Auckland

Auckland property is becoming increasingly attractive to buyers, according to ASB, after latest REINZ data revealed flattening prices continued into July.The latest Real Estate Institute of New Zealand data reveals New Zealand house prices rose by 6.2 percent in the July year — but Auckland suffered a 0.1 percent fall.ASB said Auckland "continues to look more like a buyers’ market every month", The lender said: "We see a risk that annual house price growth in Auckland slips into negative territory as uncertainty and affordability constraints continue to crimp activity." The bank said it expected the overall market to remain "subdued".Auckland prices slumped by 0.1% in the July year, due to the impact of LVR restrictions and curbs on property investors.The median price fell by $1000 however, compared to the previous year, holding steady at $835,000.REINZ chief executive Bindi Norwell said: “The stability of Auckland’s median price will be welcome news for first-time buyers struggling with Auckland’s house prices, but time will tell whether the low to mid $800,000 mark is a longer-term trend.”The regions continue to drive house price increases.


800 new south Auckland residences planned in Classic and Universal projects

A consortium led by one of New Zealand's biggest residential construction companies, Classic Builders, is planning up to 800 new residences in South Auckland's Ramarama and Drury area, where more than half will be in the affordable price range.Peter Cooney who owns Classic said his Classic Developments and fellow house builder Universal Homes would build the places of which 60 percent would be in the affordable $550,000 to $650,000 range.Plans for some of the new homes by Classic."The 50ha site is zoned residential.Earthworks have started and we're just about to lodge for resource consent application," he said of the land beside the offramp from the Southern Motorway or State Highway 1 at the Ramarama turnoff.Classic bought the site from the Stevenson family, Cooney said.The lot had been farmland."The land almost runs adjacent to the motorway," Cooney said of the site, 37km from Auckland's CBD.