Housing spending is increasing as a proportion of our incomes:

Housing affordability has declined over the past two years despite mortgage rates falling to their lowest levels since the 1960s.

Statistics New Zealand’s household economic survey found that total housing costs as a proportion of household income increased from 15.1 to 16 per cent over the two years since June 2009.

(…)

Local body rates outstripped income growth even more, rising 9.3 per cent.

But mortgage payments, for the 31 per cent of households which have mortgages, fell slightly (1.8 per cent) from $376 a week to $369.

And people are still reluctant to take on more debt as the median LVR is 12% below what it was 10 years ago:

…the median loan-to-value ratio (LVR) had increased from 38 per cent in 2007 to 42 per cent, though the bank noted that that was still below the 54 per cent median LVR 10 years ago.

Households with high LVRs tended also to have relatively high incomes and strong cash flows, it said.

The second highest income quintile, with household incomes ranging from $63,000 to $88,000, had the highest median LVR at 47 per cent, but spent 22 per cent of disposable income servicing the loan, the lowest proportion for any quintile except the highest.

Only 1 per cent of households had an LVR above 80 per cent and a debt-serving ratio over 50 per cent, the bank said.

{source – Housing affordability down despite falling mortgage rates }

While the local rates and insurance cost are rising, there is a bit of a good news on the interest rate front:

National Bank chief economist Cameron Bagrie said it had changed its prediction of when the official cash rate (OCR) will rise from June next year to the December quarter.

(…)

The global economy was not expected to be stable and recovering by the first quarter of next year.

“We have pushed our expectations for the OCR moving up in late 2012; but I’m not buying the idea the cash rate is going to be cut, but it is going to be lower for longer,” Bagrie said.

Financial markets are pricing-in a cut of 25 basis points in rates by March, given the picture in Europe.

(…)

On Friday, Commonwealth Bank chief executive Ralph Norris warned that the European debt crisis was entering a dangerous phase, as global money markets in effect froze when Germany failed to sell all 6 billion (NZ$10.8b) worth of bonds.

Bagrie said New Zealand banks were well funded and so did not have to borrow overseas for another six months, with little demand for more loans. Internationally, there is a preference to deal with Australian, New Zealand, Canadian and Scandinavian banks.

“But right here and now, there is not a lot [of lending] getting done,” Bagrie said.

The Reserve Bank’s next monetary policy statement is due out on December 8.

{source – Business confidence up despite dangers }

And ASB Economist Christina Leung:

“We have pushed out our view of when we expect the RBNZ to lift the OCR to December 2012, from June 2012. The first half of next year no longer looks soon enough for the RBNZ to have confidence that the risks to the global economy have been sufficiently defused, even assuming Europe contains the crisis very soon,” Leung said.

“An ever-increasing proportion of mortgages on floating terms will also give the RBNZ a lot of traction when rates eventually go up.

That, combined with still-muted credit growth, suggests the RBNZ will have the time to wait until it is very confident the global and NZ recoveries are firmly on track,” she said.

{source – No cash rate hike until December: economists}

Unfortunately that comes on the back of slow world and NZ growth, that translates to slow incomes growth.

NZ growth to be slower than expected – OECD

From today’s press: Spending on housing, interest rates and global growth is a post from: PlanVisuals

There sertainly is a change in the consumer attitude towards credit:

For home loans, Gen Y showed the biggest increase in demand, with mortgage inquires jumping 36 per cent in the year to date and gaining 23 per cent in October from a year earlier, Veda said.

(…)

“We are continuing to witness a sharp change in consumer attitude towards credit compared with pre-global financial crisis appetites,” said John Roberts, Veda’s managing director.

{source: Baby boomers renew fondness for credit }

“In contrast to investor activity, first-home buyer activity continues to rise very strongly and is perhaps the most notable feature of our survey in recent months,” Alexander said.

He also noted people selling and buying again were much more likely to be downsizing rather than trading up.

{source: First-timers drive housing market}

Credit and property trends is a post from: PlanVisuals

Here is a list of the things buyers want to know about the property. Why real estate agents are so slow to adapt their internet marketing to always provide this information is still a wonder to me.

We are now so used to the idea that we can find anything on the internet that we are most likely to look elsewhere to find what we are looking for than to start filling the gaps ourselves. It makes much more sense to be thorough from the start when you first publish your listing than to wait for people to start calling to ask questions.

1. Location and neighborhood
2. Price or price range
3. Picture of the house
4. Layout of the house
5. Total number of rooms
6. Number of bedrooms and bathrooms
7. Size of lot and square footage of house
8. Details about the community
9. Amenities and features
10. Phone number for more information

{Source}

Top 10 Things Buyers Want to Know About Real Estate is a post from: PlanVisuals

“For the second quarter in a row, Canterbury showed the strongest growth, with a 1.8 per cent lift in activity in the September quarter.”

(…)

“Annual economic activity was 0.2 per cent weaker in the South Island, reflecting the impact of the Canterbury quakes. ”

See the whole article here – Canty economy outpaces other regions: survey

Business growth – september quarter 2011 is a post from: PlanVisuals

House prices are edging up according to the latest data from QV.

“Quotable Value (QV) has released its October report showing house values rising across most of New Zealand as strength in prices in central Auckland and quake-hit Christchurch starts to spread across the country.”

(…)

“Christchurch values continue to increase due to demand for undamaged houses, particularly in the Northern and Western suburbs. Values are now 3.4% above last year and only 2.0% below the market peak. The areas surrounding Canterbury have also been increasing in value since the start of 2011, with Waimakariri up 5.4% and Selwyn District up  4.9% since January,” said Ingerson.

See the full article – Quotable Value says in October report values now rising across most of NZ, spreading from central Auckland, ChCh

At the same time HSBC lowers fixed rates – HSBC cuts fixed mortgage rates (from Stuff.co.nz)

House prices edging up (november 2011) is a post from: PlanVisuals

In today’s paper: KiwiSaver boost for first-time home buyers

You or your potential buyers can use some help from KiwiSaver to buy their first home.

It comes in two ways -

1. to apply for a first home subsidy of $1000 for every year they have been contributing, up to a maximum of $5000, and

2. KiwiSaver allows first-home buyers who have been in the scheme three years to apply to their scheme providers to withdraw their contributions, and their employer’s contributions.

But some “are missing out because they or their agents do not fully understand the process. ”

Read more here – KiwiSaver boost for first-time home buyers

Buying first home with the help of KiwiSaver is a post from: PlanVisuals

With 3D house plans you can take your marketing to the next step.

3D plans are a good way to give a better sense of the space of the property. They create more of a feel of the property and helps buyers or renters to imagine their lives in the property and therefore are more engaging, which is what a good marketing campaign is aiming at.

3D plans also provide the best possible way to present your property. People can see the house or the office in its full dimension (including height) in an easy to read way. Clients can clearly see the placement and the size of elements like windows and doors, and get a better grasp of the flow of the property.

3D plans are great reference for planning renovations. Having a good indication about fixed features, height of the rooms and the option to add standard pieces of furniture for reference, you are giving potential clients  easily way to translate their lifestyle/business needs in the offered space.

3D plans are really powerful way to showcase a property as they remove much of the guesswork out of shortlisting properties, evaluating  them against your own criteria and comparing them with other available options.

3D house plans are add-on to our 2D layouts and at the cost of additional 20%.

3D house plans is a post from: PlanVisuals

Even the simplest house layout image is a very powerful sales tool to promote any property. It presents the interested party with more substantial information and helps them make better decisions faster.

Clear, simple, unambiguous – floor plans are an ideal tool for conveying a property and are very popular amongst buyers. Moreover, we can design the plans with a different level of detail alowing you to present your property in the best way according to the specific features of the property.

2D property layouts are great reference tool for renters and buyers as they offer clear and easy to understand way to present the most important facts about the property.

Using effective visuals will ensure that your property will stand out and be remembered…

What we offer?

Quick and affordable service:)

Prompt appointment for on-site survey in the Christchurch region

Digital floor plan generation

Within 24 hours after the survey you’ll be emailed a pack that includes:

• . jpg files with 2D floor plan of the property with added details of your choice;
• images are ready to print, upload, email;
• .pdf brochure with all the relevant information and hyperlinks to the main internet listing ready to be emailed or added for download

Priced from NZD 125

Still not sure?

10 ways house plans can work for you

10 more reasons why home layouts are good idea

2D house layout is a post from: PlanVisuals

When we were looking around to find a home to buy in late 2007 the market was quite heated and was still relatively easy to sell. There were a lot of  “sale by the owner” listings.  And we’ve been to few of those ourselves.

What I’ve notice then was that after an open home with the owner present I’ve always felt much more engaged with the property and the area and you have a better grasp as to how you could live there – you know exactly how close are the local schools, where is the daycare and the busiest playground, best cafes nearby, most convenient supermarket and so on… People that live there share their knowledge about the area and this is priceless, especially if you are considering a different neighbourhood or part of town.

And sharing that information can be a very powerful way to convince people to consider your property, but your real estate agent or property manager might not be so familiar with the neighbourhood. Even the best ones, are not always familiar with all those details as they work across town.

Of course people could always look your area in Google Maps and try to get the basics. But most of the small businesses are not listed and there is no information about so many services.

And when you think about it – it is one of the most important aspects of the desicion – how convinient would my life be in this area. And if you’ve been to an open home sold by the owner, you’ll know by your own experience that knowing the little details about the neighbourhood feels really reassuaring! Helps a lot to imagine your life in the area, removes a lot of uncertainties and questions from the picture.

And it is in your interest as a seller to make that process easier for the buyers. Otherwise you risk that they would not make the effort themselves and as a result – not to consider your property seriously, just because it is a bit out of their square…

So we are offering you a way to share your local knowledge about the area and the community with the potential buyers for your property, even if you do not want to go with the “sale by owner” method.

Once you have specified your target market you can make a list of all the relevant amenities  and we can put them on the map for you. And you can upload, print or email the “lifestyle” map with your other marketing materials.

The answer to this would be to have your own map of the area, where all the things that may be useful to your potential buyers are noted. You could add this to your marketing materials, to your internet listing and have it as a .pdf file (where we can even add hyperlinks to relevant websites) to attach to emails.

How can you make this happen?

Identify your target market

Make a list of all services in your area

• cafes, take aways, restaurants
• supermarkets, dairies, farmers markets
• playgrounds, kindergartens, plunket, play groups, schools
• medical centers, health centers, physio, pharmacies, midwives, ect.
• bus stops, gas stations
• shopping areas and malls
• sports facilities, fitness gyms, sports programs, social sports
• garden centers, DIY suppliers
• community halls
• entertainment, video&game clubs
• banks, ATMs

Choose the most relevant for your target market

Circle your area and pick a map style

Contact us to place your order

Receive your map within 24 hours of us receiving the payment

Use the local knowledge…do the map is a post from: PlanVisuals

1. It saves time. It saves time for the buyers – they could actually see if the house can meet their needs without a visit and just concentrate on the properties that have potential to accommodate their needs. And, it gives more time to the seller or their agent to promote the property to the interested parties as they would be less distracted by people who found themselves in  the wrong open home

2. It is cost-effective and convenient. It doesn’t cost the Earth if you do it with us and we provide all standard file formats so all layouts are ready to add to your existing promotional materials and you quickly can upload, print or email them

3. It’s engaging and much more informative. Layouts and maps are a great way to give more information about the property to the prospective buyers without reveiling everything.

4. Be part of the growing trend and a chance to stand out

5. Get better conversion rates – this is internet talk that means that more people will want to seriosly consider your house after reading your listing and promotional materials.

6. Uncover hidden selling points, like smart storage and convinient roomflow.

7. Great reference tool for buyers – to space plan before they even see the property or to discuss remodeling option for this home

8. Give a real sense of the place with illustration of the flow of the property, roome sezes and fixed features

9. Great for any type of real estate – residential for sale or rent, holliay homes, retail or office spaces

10. Property lay outs are regarded best/very highly by the buyers and consequently they will spend more time on your listing researching your property

10 ways house plans can work for you is a post from: PlanVisuals