Wayne Johansson Real Estate

Overseas Investment Act Update

Wayne — Tue, 02 Oct 2018 02:18:52 +0000

Update from the Law Society

Overseas investment regime not yet in force

26 September 2018

The Overseas Investment Office says transitional provisions in the Overseas Investment Amendment Act 2018 mean that transactions entered into before 22 October 2018 are not subject to the changes which have been made, regardless of when settlement date is.

OIO Manager Policy Jenna Reid says the law is clear.

“Until 22 October, anyone is able to buy residential land in New Zealand, unless it is sensitive for a reason other than being categorised as ‘residential’,” she says.

“That means the eligibility statement that every purchaser will have to complete post 22 October, is not required for any transactions entered into before 22 October. The OIO is working with ADLS Inc, the Real Estate Institute, the Real Estate Authority and the New Zealand Law Society to make that statement and accompanying guidance as clear as possible.”

Ms Reid says the OIO is planning to have the eligibility statement and guidance ready in early October.

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Dispelling the “meth myth” for home buyers

Wayne — Fri, 27 Jul 2018 00:31:22 +0000

Dispelling the ‘‘meth myth’ for home buyers

Dispelling the ‘meth myth’ for home buyers

There has been a lot of debate over the recent report on safe levels of methamphetamine contamination.

The May 2018 report from the office of the prime minister’s chief science advisor, Professor Sir Peter Gluckman, found there was no evidence of adverse health effects from third-hand exposure to methamphetamine smoke residue on household surfaces.

The advice which followed, is that Real estate agents must tell prospective house buyers if a property has methamphetamine contamination of 15 micrograms per 100cm2 or above, says the Real Estate Authority (REA).

REA chief executive Kevin Lampen-Smith says methamphetamine contamination of 15 micrograms per 100cm2 or above will now be considered a property defect that must be disclosed to potential buyers.

Lampen-Smith says people looking to buy property should visit settled.govt.nz to learn more, and always ask the real estate agent if they are concerned about methamphetamine contamination.

“We strongly encourage people to ask lots of questions when buying a property. If you are worried about potential methamphetamine contamination because you suspect the property was used as a meth lab, ask your lawyer to include a satisfactory meth test as a condition of your offer.”

Real estate agents are not obligated to disclose confirmed results below 15 micrograms per 100cm2 unless they are asked.

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Auckland Average Sale Price Up 1.4% April 2018

Wayne — Wed, 02 May 2018 22:47:38 +0000

Signs Auckland’s Housing Hibernation Is Coming To an End

In April the Auckland residential property market signaled that sales activity may have bottomed and is ready to emerge from its 12- month price and sales hibernation.

“The sales figures contain a number of modest indications that confidence has returned,” said Peter Thompson, Managing Director of Barfoot & Thompson.

“At $930,223, the average sales price was 1.4 percent higher than it was at the same time last year, with the average selling price having shown little movement over the past 12 months.

“At the same time the number of properties sold at 731 was 10.1 percent higher than in April 2017, and sales numbers in the first four months of the year are 3.2 percent higher than for the comparative period last year.

“While there is no suggestion that prices are poised to start their upward climb, with prices no longer declining in comparison to 2017, the point has been reached where a further price decline is the least likely future outcome.

“In meeting the market price, buyers can have confidence that the chance of them being disadvantage by future price volatility is low.

“The median sales price continues to lag behind previous levels and, at $830,000 for April, was down 0.8 percent down on the average for the previous three months and down 2.4 percent on April 2017’s price.

“In part this can be attributed to sales of property in the $1 million and $2 million price category being down significantly in April compared to those for March (down close to 60 percent) while sales of homes for under $500,000 represented 9.8 percent of all sales.

“Most trading activity during the month occurred in the $500,000 to $1 million price category, with sales numbers accounting for 57 percent of all sales.

“New listings at 1358 for the month were strong, ensuring that buyer choice at month end of 4678 properties was the second highest they have been for 6 years.

“After an active March, the rural, lifestyle and commercial markets experienced slower activity in April.

“While buyers continued to show interest, they were selective.

“Demand remained strong for orchards, particularly for kiwi fruit, in the north and far north.

April	Last Month	Previous 3 Months*	April 2017
Average Price
$930,223	$ 931,292 =	$928,500 =	$917,079 +1.4%
Median Price
$830,000	$860,000 -3.5%	$837,000 -0.8%	$850,000 -2.4%
Sales
731	1064 -31.2%	774 -5.6%	664 +10.1%
New Listings
1358	1689 -19.6%	1545 -12.1%	1292 +5.1%
Month-End Available Stock
4678	4814 -2.8%	4594 +1.8%	4214 +11%
*Average for 3 months

The post Auckland Average Sale Price Up 1.4% April 2018 first appeared on Wayne Johansson Real Estate.

Auckland House Prices & Sales Rebound In March

Wayne — Wed, 04 Apr 2018 22:07:55 +0000

Auckland Prices & Sales Rebound In March

The Auckland residential property market rebounded in March, with sales numbers in the month being their highest for 12 months, and with the average and median prices edging higher.

“March sales figures are always strong compared to the holiday affected trading figures of January and February,” said Peter Thompson, Managing Director of Barfoot & Thompson.

“It is no surprise therefore that March sales numbers and prices are significantly higher than in the first two months of the year.

“What the sales figures underline, however, is that prices remain rock steady and that buyers have re-entered the market.

“The average sales price for March was $931,292, up 1.3 percent on February’s average, but still down 3.8 percent on that for March last year.

“The median sales price at $860,000 was up 4.9 percent on that for February, but also down (by 4.4 percent) on that for March last year.

“The most significant figure was the number of sales, which at 1064, was the highest number of sales in a month since March last year, and also the first time for 12 months that monthly sales have been above 1000.

“While positive, March figures can not be read as the start of a new cycle of price increases. However, they do demonstrate that buyers are prepared to meet current prices.

“Property sales in the month were spread evenly across all price categories, with 11 percent of sales being for properties that sold for under $500,000.

“396 properties sold for more than $1 million (37.2 percent of all sales) with 78 of them, or 7.3 percent of all sales, being for in excess of $2 million.

“New listings during the month at 1689 were solid, although lower than in February and March last year.

“Available listings at month end at 4814 were at their highest in four months.

“Except for in November of last year, currently available choice in terms of houses for sale in Auckland is at its highest for five years.

“Sales of rural and lifestyle properties also lifted significantly in March, with 62 sales for a total sales value of more than $80 million.

“Rural subdivisable land remains in demand and sales of bare land in the Mangawhai area remains steady.

“A good level of new listings recently is giving potential buyers in the rural and lifestyle market greater choice.

“The prices at which sales are being made is contributing to the gap between vendor expectations and what buyers want to pay narrowing.”

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February Auckland Real Estate Market

Wayne — Thu, 15 Mar 2018 21:18:56 +0000

This year’s Auckland property market started to find its direction in February, with increased sales numbers and strong growth in new listings. Prices remained stable and there is now growing acceptance that the current prices being achieved will continue for the remainder of the summer sales season, moving into autumn.

Sales volumes were up 12 percent on January and increased by almost 20 percent from last February. This demonstrates strong demand from buyers and purchasers who are ready and able to buy property.

If you’re looking to buy, there is a great selection of homes on offer, and if you are thinking about placing your home on the market, take advantage of a strong pool of motivated buyers, with continued strong attendance at open homes and at our auctions.

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Listings outweigh sales by 3 times February 2018

Wayne — Sun, 04 Mar 2018 22:25:06 +0000

Listings outweigh sales by three times for February 2018

Growing Acceptance That Current House Prices Are Benchmark

Greater sales activity returned to the Auckland property market in February while prices eased back on those being achieved for the previous three months.

“Caution as to which direction the market is likely to take eased in February,” said Peter Thompson, Managing Director, Barfoot & Thompson.

“There is a growing acceptance that where prices are at presently is likely to be the benchmark for the remainder of the summer/autumn sales season.

“Sales numbers were up, there was strong growth in new listings while prices, although softening a little on the previous three months, were stable.

“Combined with the relatively high number of properties on the market, the current stable conditions make it a good time to be looking to buy.

“Sales numbers for the month at 665 were up 12.1 percent on those for January, and were up 19.6 percent on those for the previous February.

“The average sales price at $919,454 was down 1.6 percent on that for January, and down 1.1 percent on the average price for the previous three months.

“A feature of February’s trading was the relatively high number of sales of properties valued at under $500,000,

“At 127 sales they accounted for 19.1 percent of all sales, a significant increase on the 8 percent of sales in January.

“This also influenced the median price, which at $820,000 for the month, was down 1.2 percent on January’s median price.

“Many of the under $500,000 sales took place in central south Auckland, and on the northern, western and southern fringes of the metropolitan area.

“Sales of properties for in excess of $2 million (at 22) and those for more than $1 million (a further 185) were in line with those for the same period last year.

“New listings for the month at 1747 were up 45.6 percent on those for January and up 40.7 percent on the average number for the previous three months.

“New listings being nearly three times greater than sales in the month resulted in a healthy level of available properties at month end.

“At 4648 this is the highest available listings have been since November, and 4.7 percent higher than the average level for the previous three months.

“The rural and lifestyle markets are experiencing similar trading conditions to those in the residential market.

“Buyers interest is strong throughout the region but there is caution as to whether prices have settled.

“Those sales that are being made are at prices consistent with those paid in the last quarter of 2017.”

February media release by Barfoot & Thompson

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Auckland Real Estate Market January 2018

Wayne — Wed, 07 Feb 2018 01:12:08 +0000

Steady Start To Residential House Sales In January Sets Tone For Positive 2018

The new year has not brought any great change to trading patterns in the Auckland residential housing market.

“It was a steady start to the year with sales numbers remaining low while sellers and buyers reached agreement at prices consistent with those for the last quarter of 2017,” said Peter Thompson, Managing Director of Barfoot & Thompson.

“This stable trading trend first emerged in April last year, and has rolled over to the start of the new year.

“In January the average price for sales was $934,753, 1.5 percent higher than the average for the previous three months, while the median price at $830,000 was 1.6 percent lower than the average for the previous three months.

“Variations of 1.6 percent or less across a four-month period represent very little change.

“Sales numbers at 593 were light for the month, down 13.8 percent on the average of the previous three months and down 5.7 percent on those for January last year.

“However, given January’s short and holiday interrupted trading period, caution needs to be attached to drawing strong conclusions from the month’s sales.

“Sales of home in the high end categories of $2 million and $1 million at 27 and 170 respectively were consistent with the number of sales in these price categories in January last year.

“Sales of properties for under $500,000 fell from 13 percent of all sales in January 2017 to 8 percent of sales in January 2018.

“New listings in January at 1200 were strong, and were 5.1 percent higher than in January last year.

“At the end of the month were had 4320 properties on our books, the highest number of listings at the end of January for six years.

“Auctions continued to be the main sales method, with clearance under the hammer averaging 50 percent.

“The outlook for residential housing for the first half of 2018 is positive.

“With prices having plateaued, stable mortgage interest rates and the potential that greater access to mortgage finance will be made available to first time buyers and those on limited income, sales numbers can be expected to grow as we head into the traditionally strong February to August sales period.

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REINZ Monthly Property Report- Prices Up

Wayne — Sun, 21 Jan 2018 22:36:59 +0000

Part of December Monthly Property report from REINZ

18 January 2018
Strong end to 2017, with house prices up 5.8% in December says REINZ
Median house prices across New Zealand rose by 5.8% year-on-year to $550,000 – up from $520,000
in December 2016 and median prices for New Zealand excluding Auckland increased by 6.6% to
$450,000 (up from $422,000 in December 16) according to the latest data from the Real Estate
Institute of New Zealand (REINZ), source of the most complete and accurate real estate data in New
Zealand.
Auckland’s median house price increased 1.8% in December to $870,000 up from $855,000
compared to December 2016.
This price growth is consistent with what we have observed with the REINZ HPI.
13 out of 16 regions saw prices increase in December, with three of those regions experiencing
record prices:
• Waikato – up 11.7% year-on-year to $525,000 (a $35,000 increase since November 17 and a
$55,000 increase since December 16)
• Bay of Plenty – up 20.4% year-on-year to $598,000 (a $23,000 increase since November 17
and a $101,500 increase since December 16)
• Wellington – up 4.7% to $560,000 (a $10,000 increase since November 17 and a $25,000
increase since December 16).
Three regions saw a price decrease year-on-year – Marlborough (down 2.1% to $372,000), West
Coast (down 1.6% to $185,000) and Canterbury (down 0.7% to $439,000).
Bindi Norwell, Chief Executive at REINZ says: “Median house prices across New Zealand have
increased 5.8% in December, representing an increase of $30,000 since the same time last year. This
increase defies the predictions of many commentators who 12 or 13 months ago were adamant that
house prices would fall in 2017.
“While the increase will be welcome news to those looking to sell their property, for those first
home buyers this will not have been the Christmas present they were hoping for. Although there is
some hope as the rate of price increases has decreased significantly compared to previous years
meaning that if the trend continues, there is more of a chance that those saving for a house deposit
can keep up with increasing property prices,” continues Norwell.
“When looking at the Auckland picture, this is the first time that all seven districts have had a
median price of in excess of $700,000 highlighting how expensive the city is becoming. Additionally,
North Shore City has reached a record median price of $1,113,000 – the nearest the price has been
to this point previously was $1,105,000 in November 2016,” points out Norwell.

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Holiday and short-term rentals: What you need to know

Wayne — Sun, 10 Dec 2017 22:31:13 +0000

Holiday and short-term rentals: What you need to
know
If you’re thinking about making your home, rental property or holiday house available
for short-term rentals, make sure you know the rules on holiday rental agreements,
claiming expenses, whether to declare it at tax time, and more.
Key things to consider for holiday rentals
With the rise of online holiday accommodation websites like Airbnb and Bookabach,
listing a property for short-term let is easy. But there’s more to it than just putting your
property out there. Key things to consider include:
creating and enforcing a holiday rental agreement
tax obligations, if any
insurance cover
health and safety and consumer laws
claimable expenses and record-keeping.
Check out your local council rules on short-term accommodation — some councils
require you to register properties which are rented out, eg Queenstown Lakes District
Council.
Make sure you fully understand the terms and conditions of any
hosting website you use.
Rental agreements
When a house you own is used as a holiday rental, you’re not covered by the
Residential Tenancies Act. This means standard rental agreements don’t apply.
Some hosting sites, like Airbnb, include booking terms and conditions in your page
listing. If terms and conditions aren’t included when you list your rental, you’ll need to
create and enforce a written agreement outlining your terms and conditions.
The agreement should cover rules and expectations about:
payments, including deposits and refunds
maximum number of guests
pets
camping, eg extra guests can/can’t pitch a tent on the lawn
1/5
smoking/non-smoking
liability, eg if someone has an accident on your property.
If you use a template provided by your preferred hosting website, make sure it suits
your situation and covers everything you need it to.
Check your preferred hosting site for rental agreement templates
and tips on attracting and vetting guests.
If you’re a landlord
You can’t ask tenants to move out temporarily so you can make more money over the
summer by using the property for Airbnb or similar.
If your tenants decide to sublet the property while they’re away, they need your
permission and must abide by their tenancy agreement. They can’t sublet the property
without your permission.
Subletting (external link) (https://www.tenancy.govt.nz/ending-a-tenancy/subletting/)
— Tenancy Services
Insurance, tax, customer vetting and the Consumer Guarantees
Act are all things to consider when letting to holiday-makers.
Understanding consumer laws (/risks-and-operations/dealing-with-customercomplaints/
understanding-consumer-laws/)
Tax obligations
Income you receive for providing accommodation, including through websites like
Airbnb or Bookabach, is taxable. This includes any payment for one-off or irregular
rentals. Exceptions apply, see renting out your holiday home below.
This means you:
must include the income on an Individual tax return (IR3). This can be filed
online — for most people it’s due 7 July
can claim expenses for the time you rented out the space, eg rates, insurance,
cleaning and advertising
must keep clear records to confirm all income and expenses.
GST rules might apply if you offer guests meals, cleaners or other services in addition
to accommodation. If you’re not sure, check with Inland Revenue — or your
accountant, if you have one.
2/5
Your tax obligations when renting out a residential home (external link)
(http://www.ird.govt.nz/property/property-rental/tax-obligations/your-taxobligations.
html#02) — Inland Revenue
Claiming expenses
You can only claim expenses if you declare your rental income in your tax return.
Remember: expenses you can claim include rates, insurance, cleaning and
advertising.
You can only claim expenses for the time you rented out the space.
If you’re renting out a room, you can only claim a proportion of your household
expenses.
Remember to keep clear records to confirm all income and expenses.
Claiming expenses (external link) (http://www.ird.govt.nz/property/propertyrental/
claim-expenses/claiming-expenses.html) — Inland Revenue
Holiday homes you rent out and use yourself
There are different tax rules if you have a mixed-use holiday home where:
you stay in the holiday home yourself sometimes
you rent it out to others sometimes
it’s not used for a total of 62 days or more during the tax year — or the same
proportion if you buy or sell it partway through a tax year, eg a total of 31 days if
you sell six months into a tax year.
If you have a mixed-use holiday home and you earn less than $4,000 a year from
renting it out, you don’t need to include this income in your annual tax return. If you
choose not to declare this rental income, you won’t be able to claim expenses for the
holiday home either.
Tax rules for mixed-use assets (external link) (http://www.ird.govt.nz/business-incometax/
expenses/holiday-homes/) — Inland Revenue
GST for mixed-use assets (external link) (http://www.ird.govt.nz/gst/additionalcalcs/
change-adjust/mixed-use/) — Inland Revenue
Keeping tax records (/tax-and-accounting/tax-time-tips/keeping-tax-records/)
Insurance
Your usual house and contents insurance might not cover you if something happens
while your property is rented out. Speak to your insurer — you may need to pay a
higher premium or arrange extra cover, but this is better than finding out too late that
damage isn’t covered.
3/5
Talk to your insurer about cover for:
theft or damage by short-term holiday tenants
cover during times the property is empty
loss of income — if something major happens and you are unable to rent the
property out.
As well as cover for the property and contents, consider public liability insurance. This
is cover to protect you if a guest gets hurt while staying at your property.
Some hosting websites offer free cover for these types of things, but it’s worth a chat
with your insurance company either way.
Insurance (/risks-and-operations/planning-for-the-unexpected-bcp/insurance/)
Health and safety
Check whether there are any regulations you need to comply with — your local
council is a good place to start.
Examples include:
Fit smoke detectors throughout the property and check these are in working
order every three months.
Any deck more than 1m high has a fence of at least 1m high right around it.
Any pool deeper than 400mm is fenced.
Hazardous items like chemicals and poisons are properly stored and kept out of
sight.
Any kayaks or boats provided for use are seaworthy and life jackets are
provided.
A holiday home-owner’s guide to health and safety (external link)
(https://resources.bookabach.co.nz/resources/view/a-holiday-home-owners-guide-tohealth-
and-safety) — Bookabach

Directly from an article published by Business.govt.nz

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How To Win A Multiple Offer

Wayne — Mon, 04 Dec 2017 00:08:55 +0000

The post How To Win A Multiple Offer first appeared on Wayne Johansson Real Estate.