Traders vs Investors

Property Traders vs Investors.

I think there is a big difference between someone who trades in property and someone who invests in it.creating-wealth

The biggest difference is probably time. A trader will be involved with a property for a short period of time, while the investor’s involvement will be for much longer. For the property trader it will be a business and involve the tax payments, business costs, property improvements and marketing costs associated. For the investor, the tax costs are not likely to be there, no marketing costs because they hang onto the property, but could have the improvements costs before they rent it out.

Each have their own effect on the market, and the business of trading will have a more immediate effect than the investor. The trader could be involved in several properties over a short period of time, but an investor is more likely to be interested in the long term value of the property, and as an asset to be used later.

The ones that sign…

Signatories

The people who sign the documents, listing forms(Agency Agreements), contracts( Sale and Purchase of Real Estate) and other forms:

  • Trusts – all trustees must sign.
  • Partnership – all partners must sign unless specified otherwise in writing.
  • Company – all directors must sign unless specified otherwise in writing.
  • Authorised persons – verification will be asked for from their solicitor.
  • People must be capable to sign – “entirely” capable so as not to be taken advantage of.
  • Power of Attorney – a copy of the authority provided and verified with their solicitor.
  • If under anaesthetic – signature cannot be taken until 5 days after the anaesthetic.

The times – they are a changing!

Latest REINZ Sales Stats for August.

The Eastern Beaches area, from Bucklands Beach to Flat Bush, had another small drop from July of 0.47%! So the last four months have been May to June – no change, June to July – 2.27% drop, and July to August – 0.47% drop.

Compare this with the whole of Auckland and you have May to June – rise of 1.99%, June to July – rise of 0.49%, and July to August – 2.12% rise!

So what does this tell you about the market?

It shows that people are still buying Auckland-wide, but in specific areas changes are happening, and buyers are not following that trend and have decided to ease off.

If you are considering selling, the house prices have reached a point where you are still likely to get a much better price for your home than last year – but it will not be as good as a month ago. People like to think of the market as changing to a “buyers market”, but buyers are in every market, so the change is really just in affordability. Put it at the right price and it will attract good, genuine buyers! Put it at too high a price and it becomes a museum – lots of people go there, but no one buys anything.

The kind of people you do more for!

A great start to a day.

Breakfast finished, so it was into the office and start the day. First daily task – check the emails and do the three D’s – delete/deal with/distribute.

Check the diary for appointments – looks like a quiet day today. Phone goes! Landline, so no number to identify the caller! Wonder who it is?

“Good morning!”

“Good morning. Am I speaking with Ian North?”

“Yes you are. How are you?”

“I’m good thanks. I see you have some properties to rent and we were wondering if you’d like another for your books!”

It turned out to be a property investor with a two bedroom townhouse they wanted a tenant for, had seen my advertising and decided they’d like me to help them.

Then there is also the lifestyle block owner who saw I had an ex-hotel and section in the area where his property was! “Could you give me a price on my block, please Ian?”

And there is also the past client of many years, who said, ” You do rentals too, don’t you Ian?” He not only had a rental he wanted help with, but a commercial retail space as well!

The one of most note is the longest servicing, loyal client who is a Northies Homeowners Club member of 13 months, and with their lifestyle home and land of 9,146 m2 booked to sell!

Man, those are wonderful calls to get! When someone rings you to give you business! Wonderful! These kind of people are the ones you do more for!

Property appraisals are a must have!

An appraisal is not only a must..!

The reason, the method, and the need for an appraisal of your property has changed.

No longer is it just to get an idea of what it will sell for.

No longer is it given on the spot with a scratch of the head!

And no longer is it just to satisfy your curiosity!

Today, licensee’s in real estate must provide their client with a written appraisal, realistically reflecting the current market conditions, and supported by comparable information on sales of similar properties.

To do this, a licensee must exercise skill, care, competence, and diligence in carrying out that work.

And the advertised price must then, clearly reflect your pricing expectations.

Being provided with an appraisal also means you have got a much better idea whether the price you are being offered, is a good one or not. There have been recent reports of properties selling several times during a month. If the first owner of the property had used a real estate licensee, they would have had to have been given an appraisal on their property, and would have then had a much better idea of the current market price.

Titles, lease-hold land and tenants-in-common.

Interesting or Boring – Titles, Leases, Tenants in Common and Form 18.

Titles.
1. Your regulatory body, your Council, is not responsible for titles of properties. Their responsibility is with issues relating to the building code for buildings and structures on the land.
The NZ Land Information Office deals with titles. As well as registering land transactions on property titles and regulating the survey system, LINZ’s wide-ranging role extends to mapping, property valuation, place naming and Crown land.
2. Cross-lease titles will include a site plan showing the location of buildings and structures, but are not usually part of a fee simple title.
3. If the footprint of buildings on the land of a cross-lease title have been altered it would be necessary for the land to be resurveyed, and the diagram altered accordingly. This means each property on the cross-lease needs to have this done so that the complete title is a good one.
4. Lawyers obtain the Certificate of Title to a property before settlement to ensure that the new owner receives an absolute good title for the property. A good title meaning that nothing has changed, everything is accurate and in order.
5. Memorandum with reference to the Treaty of Waitangi properties can mean that the property in question may have the value of it used in the value of compensation of that land or another piece given in compensation.

Lease-hold land.
1. The reviews of leases on lease-hold land is related to the value of the land, so if the reviews have not been held for some time, you can expect there to be a marked increase.

Tenants in common properties (but not very common!).
1. Tenants in common is one form of co-ownership of land.
2. Each person has a distinct share in the ownership rights, but the land itself is not physically divided.
3. Tenants in common can not sell their share separately.
4. Both must agree to sell or one can buy the others share.

Form 18 – Pre-Contract Disclosure form for Unit Title properties (Now a required document to accompany others when selling a property with a Unit Title).
1. These are quite important as they disclose to prospective buyers what the intended plans, expenses and maintenance of the body corporate are likely to be.
2. This disclosure is to provide buyers with information that makes the issues related to the purchase of the property more transparent.

If you are involved with, or in, any of these matters, you should seek suitable legal advice to ensure your purchase or sale is completed correctly.

Eastern Beaches Sky Rocket Continues!

The latest median sale prices from REINZ (Real Estate Institute of NZ) came out on Wednesday 15th June. It includes sales up to the end of May this year.
From December it shows that the Eastern Beaches median prices have sky rocketed…from $903,500 in December to $1,100,00 in May!
And that was calculated on 18 less sales than the previous month’s sales in April!
So all I can say is – if you are thinking of selling, then now could be a good time to be doing that!
And selling with Northies Real Estate from the months of June to August would even benefit you more!
Why? Because Northies Real Estate has an Anniversary Offer for all listings accepted by Ian North and Brian Liebrecht during the months of June, July and August to be at 1/2 price commission!
Contact Ian – 021 486 045 email ian.north@northies.co.nz
Contact Brian – 021 952 102 email cncpro@xtra.co.nz

The market – Up again in Eastern Beaches.

 

LOOKING BACK AT SALES TRENDS FOR EASTERN BEACHES.

 

  The latest REINZ sales statistics for Eastern Beaches shows the rise has continued from December to April. There was a slow down in March but then a hefty rise of 6.06% in April. That has put the median price for the Eastern Beaches area at $1,050,000! Properties have sold one day faster in April (34) than they did in March (35).

In comparison, the whole of Auckland had a 0.98% fall from March to April with the median dropping to $812,000 from $820,000, and took one day longer to sell (31 – 32 days).

(If you want more details for the area you live in – just email me a request at ian.north@northies.co.nz)