Stefan Fuchs

property update
020 404 29926

04 280 7431

sfuchs@villarealty.co.nz
octobEr 2016

call

today

for

current

market

update

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 hasnt had a significant fall in house
prices in over 45 years and is unlikely to suddenly have one now.
Ashley Church, has repeated his call for the Reserve Bank to exempt first home buyers
from the Loan-to-value restrictions following news that more than one million kiwis
are now locked out of home ownership. New figures from Statistics New Zealand have
revealed that 78 per cent of those currently renting - or 458,000 households - have a
net worth of $120,000 or less which means they cannot afford the 20 per cent deposit
on the average New Zealand home required under the Reserve Banks rules. Mr Church
says that this constitutes a massive crisis and is the primary reason that many kiwis
now cant get into their first home.

Housing affordability not tHe problem

The main barrier to first home ownership isnt housing affordability or the cost of
servicing a mortgage its the LVR restrictions. That means that a generation of kiwis
can say goodbye to a first home because of an artificial barrier, created by the Reserve
Bank, to solve a problem which almost certainly doesnt exist.
Mr Church says that the LVR restrictions on first home buyers have been a devastating
failure and have, instead, ended up creating a perfect storm in which property
investors have been able to snap up homes that might traditionally have been bought
by kiwi families.

Methamphetamine contamination

Cautionary tale for landlords

A recent Tenancy Tribunal ruling held a landlord to account for unknowingly
renting a methamphetamine-contaminated property to a tenant.
The tenants rented the methamphetamine-contaminated property for just a
few months from the landlord. The tenants vacated the property and made a
complaint to the Tenancy Tribunal.
The tenants presented evidence of the health implications and contamination
to their belongings caused by living in a property that was contaminated with
methamphetamine.
The Tenancy Tribunal acknowledged that the landlord had no actual knowledge
of the contamination however still ruled that the landlord must pay to the
tenants $7,525.
This included a refund of the rental paid over the course of the tenancy, as well
as the costs of replacing the tenants ruined belongings. This decision highlights
the need for a landlord to consider obtaining a methamphetamine report before
entering into every new tenancy.
Other steps a landlord can take to protect their property in respect of
methamphetamine

time to end ill-conceived experiment

The situation is now beyond ridiculous and its time for this ill-conceived experiment
to end.

When preparing a new tenancy agreement, we recommend that a

Mr Church wants first home buyers exempted from the deposit rules and the power
returned to the Trading Banks to decide whether or not someone constitutes a good
credit risk and what deposit, if any, should be required. Thats the situation which
prevailed prior to the imposition of the LVR rules and it worked well, for the country,
for several decades and through several property downturns so the sky isnt going to
collapse if we do it again.

If a landlord has a property manager involved with their rental property,

landlord include a provision that allows the landlord to carry out regular
methamphetamine contamination testing during the course of the tenancy.
they should consider making arrangements with them for regular
methamphetamine testing and what will happen in the event that
contamination is found.
We also recommend that the tenancy agreement set out termination rights
for the landlord in the event that contamination is found.

www.property.org.nz

Using good tenant screening practises;

Fix or Float your home loan?

Being observant of suspicious activities by their tenants; and

In a recent article, BNZ Chief Economist, Tony Alexander gave his view on fixing or
floating a home loan; Personally I like certainty and my natural default position is
to fix three years. A year ago I locked into a combination of floating and two year
fixed. If I was borrowing now, I would go one-third floating, one-third two year fixed
and one-third three year fixed.
http://tonyalexander.co.nz/

Staying involved with the tenancy, for example by conducting regular

property inspections.
Lindsey Mills Rainey Collins Lawyers www.raineycollins.co.nz or follow us on Twitter
@RaineyCollins

wellington regional CoMPariSon

sales area

sales

AUG 15

median days to sell

AUG 16

AUG 15

AUG 16

median sale price

AUG 15

AUG 16

sales area

sales

AUG 15

median days to sell

AUG 16

AUG 15

AUG 16

median sale price

AUG 15

000s
Wairarapa
Wellington central
Wellington West
Wellington East
Wellington South
Wellington North

82
68
27
30
30
65

85
80
30
39
38
78

020 404 29926

63
41
25
24
22
30

32
20
21
24
23
18

$239
$481
$589
$510
$530
$550

04 280 7431

AUG 16

000s
$265
$523
$683
$750
$629
$600

Pukerua bay/tawa
Lower Hutt
Upper Hutt
otaki/Paekakariki
Levin

71
139
81
79
47

80
169
70
96
57

41
34
42
53
56

28
26
26
25
29

$432
$335
$377
$360
$192

$438
$425
$400
$420
$251

compiled from the real Estate Institute of NZ statistics https://www.reinz.co.nz

sfuchs@villarealty.co.nz
Homenet Enterprises Ph: (04) 234 8006, E-mail: graham@homenet.co.nz

Disclaimer: All the information published in Property Update is true and accurate to the best of the publishers knowledge. No liability is assumed by Leaders in Real Estate, nor the publisher, for any losses suffered by any person or organisation relying directly or indirectly on this newsletter.

recent tawa to Kapiti residential property sales

Street Name

Area

Beds

SOLD

RV

Street Name

Area

Beds

SOLD

Courtesy REINZ
www.reinz.co.nz

RV

John Burke Dr

Aotea

$800,000

$245,000

Mckillop St

Ranui Heights

$331,000

$210,000

Stipulate Pl

Ascot Park

$411,000

$320,000

Lorna Irene Dr

Raumati

$499,000

$390,000

Desert Gold St

Ascot Park

$434,000

$270,000

Grange Park Ave

Raumati

$440,000

$355,000

Desert Gold St

Ascot Park

$330,000

$250,000

Herbert Ave

Raumati

$385,000

$305,000

Saint Austell Cl

Camborne

$685,000

$570,000

Renown Rd

Raumati

$520,000

$360,000

Mo St

Camborne

$740,000

$600,000

Manawa Ave

Raumati

$335,000

$270,000

Penryn Dr

Camborne

$490,000

$360,000

Raumati Rd

Raumati

$775,000

$690,000

Levant St

Cannons Creek

$330,000

$295,000

Hillcrest Rd

Raumati

$650,000

$520,000

Cardiff Cres

Cannons Creek

$265,000

$225,000

Tainui St

Raumati

$850,000

$770,000

Worcester Pl

Cannons Creek

$195,000

$190,000

Kohutuhutu Rd

Raumati

$410,000

$420,000

Sievers Gr

Cannons Creek

$230,000

$235,000

Matatua Rd

Raumati

$476,000

$320,000

Wiltshire Pl

Cannons Creek

$246,000

$170,000

Hillcrest Rd

Raumati

$645,500

$490,000

Castor Cres

Cannons Creek

$290,000

$315,000

Allen Tce

Tawa

$522,500

$385,000

Northumberland St

Cannons Creek

$330,000

$240,000

Davidson Cres

Tawa

$280,000

$280,000

Driver Cres

Cannons Creek

$340,000

$240,000

Mexted Tce

Tawa

$449,000

$300,000

Waiho Tce

Elsdon

$310,000

$235,000

Nathan St

Tawa

$650,000

$470,000

Mahinawa St

Elsdon

$325,000

$285,000

Handyside St

Tawa

$618,000

$380,000

Rangituhi Cres

Elsdon

$290,000

$240,000

Kereru Bend

Tawa

$401,800

$290,000

Toroa Rd

Otaihanga

$340,000

$275,000

Olivia Cres

Tawa

$520,000

$455,000

Mill Rd

Otaki

$230,000

$170,000

Kiwi Pl

Tawa

$517,500

$340,000

Kirk St

Otaki

$250,350

$195,000

Anthony St

Tawa

$305,000

$235,000

Bell St

Otaki

$330,000

$295,000

Fyvie Ave

Tawa

$611,500

$450,000

Lupin Rd

Otaki

$265,000

$205,000

Te Waka Rd

Te Horo

$465,000

$440,000

Main Hway

Otaki

$260,000

$200,000

Owhiti St

Titahi Bay

$414,000

$345,000

Kirk St

Otaki

$290,000

$160,000

Whitehouse Rd

Titahi Bay

$350,000

$175,000

Jean Hing Pl

Otaki

$420,000

$365,000

Kapiti Cres

Titahi Bay

$367,650

$485,000

Lupin Rd

Otaki

$280,200

$200,000

Moki St

Titahi Bay

$380,000

$330,000

Aratika Cres

Otaki

$470,000

$315,000

Chaffey Cres

Titahi Bay

$450,000

$340,000

Freemans Rd

Otaki

$340,000

$245,000

Waiuta St

Titahi Bay

$260,000

$270,000

Caughley Pl

Otaki

$448,000

$325,000

Clipper St

Titahi Bay

$652,500

$315,000

Tasman Rd

Otaki

$330,000

$330,000

Tireti Rd

Titahi Bay

$635,000

$425,000

Manuka St

Otaki

$421,000

$320,000

Whanga Cres

Titahi Bay

$310,000

$245,000

Ames St

Paekakariki

$576,000

$425,000

Bay Dr

Titahi Bay

$480,000

$385,000

Tilley Rd

Paekakariki

$410,000

$335,000

Mapplebeck St

Titahi Bay

$470,000

$415,000

Tilley Rd

Paekakariki

$441,500

$360,000

Main Rd

Titahi Bay

$363,000

$315,000

Tilley Rd

Paekakariki

$505,000

$410,000

Mako View

Titahi Bay

$330,000

$270,000

State Highway 1

Paekakariki

$400,000

$290,000

Kapiti Cres

Titahi Bay

$333,000

$150,000

Brora Cres

Papakowhai

$680,000

$485,000

Tui Cres

Waikanae

$595,000

$465,000

Thurso Gr

Papakowhai

$720,000

$520,000

Parata St

Waikanae

$417,500

$270,000

Ettrick Gr

Papakowhai

$620,000

$480,000

Andrew St

Waikanae

$395,000

$345,000

Maui Pomare Rd

Paraparaumu

$935,000

$850,000

Te Moana Rd

Waikanae

$727,500

$490,000

Arawhata Rd

Paraparaumu

$440,000

$305,000

Amokura St

Waikanae

$300,000

$225,000

Pukeko St

Paraparaumu

$260,000

$200,000

Richmond Ave

Waikanae

$750,000

$570,000

Datum Way

Paraparaumu

$734,000

$610,000

Winara Ave

Waikanae

$455,000

$345,000

Brookfield Pl

Paraparaumu

$623,600

$540,000

Waimea Rd

Waikanae

$490,000

$385,000

Awatea Ave

Paraparaumu

$760,000

$550,000

Campion Rd

Waikanae

$670,000

$580,000

Mazengarb Rd

Paraparaumu

$626,500

$500,000

Tutere St

Waikanae

$481,000

$350,000

Moana Rd

Paraparaumu

$400,000

$344,000

Reeves St

Waikanae

$320,000

$275,000

Holcombe Dr

Paraparaumu

$719,000

$500,000

James Cook Dr

Whitby

$560,000

$375,000

Tutanekai St

Paraparaumu

$502,000

$255,000

The Mainsail

Whitby

$505,000

$345,000

Golf Rd

Paraparaumu

$615,000

$480,000

Flotilla Pl

Whitby

$775,000

$530,000

Kotuku Dr

Paraparaumu

$705,000

$560,000

Staysail Pl

Whitby

$456,000

$315,000

Walton Rd

Paraparaumu

$465,000

$375,000

The Bollard

Whitby

$460,000

$290,000

Seaview Rd

Paraparaumu

$617,000

$540,000

Omapere St

Whitby

$443,000

$305,000

Cedar Dr

Paraparaumu

$472,000

$380,000

Ayton Dr

Whitby

$565,000

$400,000

Terry Ln

Paraparaumu

$612,700

$465,000

Discovery Dr

Whitby

$541,000

$375,000

Golf Rd

Paraparaumu

$710,250

$540,000

Botany Ln

Whitby

$657,150

$500,000

Seaview Rd

Paremata

$530,000

$890,000

Ayton Dr

Whitby

$556,000

$360,000

Seaview Rd

Paremata

$829,000

$700,000

Parkinson Cl

Whitby

$450,001

$360,000

Bayview Rd

Paremata

$580,250

$450,000

Sailmaker Cl

Whitby

$510,000

$475,000

Penguin Gr

Porirua

$356,000

$200,000

Port Ln

Whitby

$892,000

$630,000

Gray St

Pukerua Bay

$750,000

$700,000

Omapere St

Whitby

$381,000

$240,000