Linda Your property Guardian

The right method for selling your property is an important question and is one that an agent needs to consider carefully when guiding a property owner. If an agent sticks to one method of sale, it may mean that they haven’t thought through the selling method for your particular house and your particular situation.   Typically, in a hot market when buyer demand outstrips housing supply, you will see the method of selling via Auction spike. Critically you need to understand that Auctions aren’t necessarily suited to all properties and owners, and or all buyers. In the case of the buyer, this is because buyers are required to be in a cashed-up position to purchase a property and need to have done their due diligence on a property e.g. building inspection, prior to bidding at the Auction. Whilst the cost of an Auction can add up for a buyer, it places the owner in a prime position. When the hammer drops the sale is inevitably a cash offer. An Auction also means that the owner CAN’T put...

Typically, when market demand for housing is high and there are few properties available to choose from, the property market favors sellers, and results in sellers ‘achieving outstanding prices. So right now, this is the best market to sell in! Not great for buyers, but perfect for sellers. However, there is a hint of change on the horizon. The economy is doing better than expected, and it is forecasted that there is no need for further stimulation of the market. This hints that interest rates may be increasing in 2020 as opposed to the forecasted increase in 2021. Just this week, the loan to value ratios increased for investors and first home buyers. These changes also see banks insisting on a valuation of many properties before they will approve a loan. So, what does all this mean if you want to sell your property? When there are restrictions in the market like banks requiring a valuation, if the valuation is lower than what a buyer has offered on a property, then the bank ...

The short answer is….” it’s up to you”. There are benefits and disadvantages to selling your house before purchasing a property, or alternatively there are benefits and disadvantages to waiting until you find a property before putting your house on the market. It is advisable that whenever you are faced with such a conundrum, your first call is to discuss your situation with your solicitor. Armed with information, you can then meet with your Real Estate Agent and form a plan to achieve the best outcome for you. Typically, when home owners place their house on the market, and they have not purchased, they include a clause in the Sale and Purchase Agreement stating: …. this offer [on the property] is subject to the owner finding another house within a stated period of time. Should you not find a house in the stated timeframe, then the Sale and Purchase Agreement on your property is at an end. I have found this decision to be an absolute conundrum for many homeowners, and what I do know, ...

It’s a big decision to move into a retirement village when you are fit and healthy. However, according to Economist Tony Alexander’s most recent survey (January 2021), some homeowners are bringing their retirement plans forward, selling their property, and investing in a ‘right to occupy’ villa in a retirement village. It would appear that there is demand for the Lifestyle Retirement Villages, often situated close to a beach or proximate to a golf course, and are attracting retirees from 55 years plus. Now, I’m no expert on retirement villages, or a lawyer, but I’m experiencing many of my clients selling up at high market value (34% growth in the Hawkes Bay market between December 2019 and December 2020) and moving into a 2.5-3 bedroom property in a retirement village that for some are priced below current market inflation. How long these retirement villages will hold their prices below market inflation is anyone’s guess! According to Tony Alexander’s recent survey, the inability to so...

 You may have read that economists are predicting another year of rising house prices. I can hear you all saying, “How can that be”. As long as mortgage interest rates are low and bank fixed term interest rates are also low, why would you put money in the bank when property investment looks to be a much better option. In March, the Loan to Value ratio is changing in the hope that this will slow the market. However, despite this, many economists are still forecasting double digit growth in the housing market with a handful forecasting 5-6% growth, all this on the back of forecasted negative interest rates. So, what does this all mean for you? Many home-owners whom I work with are looking at downsizing and taking advantage of the high house prices. Downsizing of course has the expectation that you will be left with some surplus cash and so the question then begs what to do with the cash. Many of these home-owners logically consider buying an investment property, however, it’s not unt...