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Are Movers Responsible for Damage?

Posted on November 12, 2020 | by New Zealand Movers

It’s essential to consider what might happen in the event that your belongings are damaged during the course for your move. Are movers responsible for damage? The short answer is sometimes. The next most important question is how to protect yourself from incurring financial loss through damage to your belongings. Professional movers take pride in their work so you can be comfortable knowing that they will not engage in risky practice or intentionally damage your belongings. Accidents do happen though and it’s best to prepare for the ‘what ifs’.

What is the Law in New Zealand?

The consumer protection laws in New Zealand are helpful. The Contract and Commercial Law Act ensures that movers are liable for the loss and damage of your belongings while they are in their care. The Consumer Guarantees Act covers your losses if the mover doesn’t provide their service with reasonable care and skill.

You still need to understand the finer details in the contract between you and your moving company. A signed contract between you and your mover is legally binding, so your contract will be the final say in the event of damage or loss.

Goods carried at ‘owner’s risk’, means that your moving company is not liable for any unintentional loss or damage.

Goods carried at ‘declared value risk’, means that the carrier is liable for loss or damage up to an agreed upon amount as specified in the contract.

Goods carried ‘on declared terms’, means that the mover and the customer can negotiate all the terms of the contract.

Goods are carried at ‘limited carriers risk’ if there is no contract in place. In this instance, the mover is liable for unintentional loss or damage of up to $2 000 for each separate item.

In addition, in the case of intentional damage by the moving company, they will be held liable for the full cost of your damages regardless of the contract in place.

Get Insurance for Extra Protection

Some moving companies offer insurance but others will require you to get insurance directly through an insurer. Many movers stipulate that your goods will be moved ‘at owner’s risk’, in which instance insurance is essential. Even if your moving company offers some protection, you may still need third party cover in the event of fire or theft. Read your policy thoroughly so that you know exactly what your cover entails.

Damage Through Negligence

Your moving company won’t take the fall in instances of negligence. If you pack and unpack your own belongings, they are unlikely to take responsibility for any damage. The same goes if you insist on helping with the move on the day, these conditions are in place because professional movers have the expertise and experience to mitigate risk to your belongings. Another area of negligence is that of packing items which are flammable, valuable, illegal or perishable.

Reporting Damage

In the unlikely event that your moving company has incurred damage to your belongings, you have to double-check your contract and your insurance before reporting it immediately. Your contract is likely to stipulate a time period in which your claim must fall. If you have trouble settling the claim, you can lodge a claim with the dispute’s tribunal.

New Zealand Movers have thorough and carefully constructed terms and conditions to avoid any confusion. For additional advice, contact us and we can advise you accordingly.

Are Movers Essential Workers?

Posted on November 12, 2020 | by New Zealand Movers

The word ‘essential’ is one of those words that 2020 has got hold of and simply won’t let go. It’s basically the modern equivalent of 2010’s ‘awesomesauce’. Thankfully, that’s over, right? It’s been the year of essential work, essential travel and essential activity and, essentially, we’re probably all a bit tired of the term.

If you’re moving houses during COVID-19, however, we’ve got some good news: movers and packers are essential workers. I repeat, they are. And there are a few different reasons for this:

They’re there for you in a crisis.

Say something happens to your house, like a fire or flood affects its liveability. Or you experience a domestic crisis which renders your home unsafe. You can’t live there safely anymore, so your moving company comes in to save the day. But instead of wearing flashy capes, they wear hi-vis shirts. Also, they can’t fly.

Not everybody can move on their own.
In fact, most of us can’t. If you’ve seen some of the junk I’ve hoarded in my garage, you’ll see why. On a serious note, if you live remotely, or alone, or live with a physical or mental disability, then it’s safe to say that you require some extra assistance in moving houses. Guess who’s here to help? You’re most-trusted moving company.

Not all moves are flexible.

We’ve all heard the saying “you gotta do what you gotta do.” Sometimes moving houses is one of those things you just gotta do. You may be moving to take care of a loved one or to start a new job in a new place as an essential worker (there’s that word again). But regardless of whether your move is based on a life-changing circumstance like that, or you’re just getting tired of your salmon pink wallpaper (yuck), your moving company can help you out during COVID-19.

Navigating what you can and can’t do within COVID-safe guidelines has been a tricky task. One minute you have to wear a mask, the next minute you don’t: one minute you can stand up in the pub, the next minute you can’t! But no matter how confusing the rules are, you can count on the fact that if you need to move houses, your moving company will be able to help you. But call them first to check. And don’t say the word ‘essential’.

Movers Who Pack for You

Posted on November 9, 2020 | by New Zealand Movers

There are heaps of professional movers who can pack your belongings for you. Some are unable to take on the responsibility, but those who are, are adept at the art of packing in such a way as to mitigate the risk of damage or loss. They know that by taking on a task which may appear immense for you, they are able to ensure a smoother and more efficient move. In short, movers who pack for you are probably the only movers you want to deal with.

Some Movers Can Insure Your Belongings

One big reason movers are willing to take on the responsibility of packing is that it also mitigates risk on their side. A professional moving company will use high-quality packing material, they know the best packing methods and because of this, it is easier to insure your belongings during the course of the move. Many moving companies will offer you moving insurance and those who don’t can point you in the direction of a good third-party insurer. If you choose to use a third-party insurer, and if your moving company doesn’t pack for you, your insurance coverage may be limited.

Packing For International Moves

The importance of using a moving company who will pack for you is ten-fold when you are moving internationally. Your belongings are at greater risk because of not only the distance and form of transport but also the fact that your belongings may be subject to more handling. Your furniture and boxes will go from the truck to the container and then into your new house. Movers who pack for you will take even more precautions in order to keep your belongings safe.

High-Quality Packing Materials

When you’re looking for a mover who will pack for you, you want to make sure that they are using high-quality packing material. Most do, but you need to know what you’re paying for.

Good moving companies will use:

Reinforced boxes
Custom sized boxes for items such as TVs and electronics, clothing, artwork and more.
Polystyrene inserts
Heavy-duty foam wrap and bubble wrap
Heavy-duty plastic wrap or bags to cover your furniture
Thick furniture blankets
Custom made crates

Packing Techniques

Moving companies take all manner of things into account. Because of their experience, they are able to foresee any potential problems and mitigate risks. They will ensure boxes aren’t too heavy and where there are heavy boxes, they will be packed strategically in order to not squash and damage other boxes and fragile items. Movers also have the superhuman ability to pack their trucks in such a way that there are no gaps and thus less potential for items to shift around.

Movers who pack your belongings are worth the additional cost because without them there may be a higher risk of damage or loss to your belongings. The bonus is that insurance is easier to procure. New Zealand movers are pros at packing and wrapping your belongings and we offer moving insurance. For more information, get in touch today.

How Movers Wrap Furniture

Posted on November 2, 2020 | by New Zealand Movers

When we think about moving our furniture, the logistics immediately pop into our heads. Getting that couch down the stairs, that dining room table out the front door… and then comes the thought of scratches, dents, or scuffs. Before you gasp and vow to never move house, take a moment to think about getting a professional moving company to not only move your furniture but also wrap it.

Carefully wrapping furniture is the best–and in fact the only way–to move your furniture safely, which is why you want to know how movers wrap furniture using advanced packing techniques.

Movers Use Professional Packing Materials

Many of us get swept up in the excitement of moving to a new house and start gathering empty boxes from friends and discarded boxes from shops in a rush to get started, but these boxes are likely to be damaged, not strong enough and purpose-built. The same goes for the materials with which you might consider packing and wrapping your furniture.

Many people underestimate the potential for damage, but movers know how to wrap your furniture to the highest standard with the best materials for maximum efficiency and protection. Items such as thick furniture blankets, heavy-duty plastic wrap or bags, protective bubble wrap, corrugated cardboard, crates, and mattress protectors are purpose-made and substituting these items with whatever you can find is unlikely to do the trick. Not to mention the trusted, professional methods movers use to wrap your furniture.

How to Wrap Your Furniture

Movers will wrap your mattresses and couches in heavy gauge plastic bags to prevent scuffing and soiling of the fabric.
For items which are more delicate in nature–such as highly polished timber–movers will cover your items in thick foam wrap and sometimes add an extra layer of corrugated cardboard if necessary.
More unusually shaped items and for international moves, items will be wrapped in a heavy-duty bubble wrap, sometimes referred to as tuff wrap or put in custom-built crates.
For even more protection, when loaded into the moving truck or shipping crate, all good movers will use thick moving blankets to further prevent damage.

How Movers Pack Other Unusually Shaped Items

Professional movers will also assist in the packing and wrapping of items such as instruments, bicycles, motorbikes, artworks, golf clubs and more. In these instances, they will use custom-made, reinforced boxes for lighter items or crates for heavier, more fragile items. Crates are used especially in international moves, and for when your items are put into storage; for extra protection above the foam or bubble wrap.

Furniture isn’t only expensive to replace, but it can be sentimental if it is an antique or an heirloom. Professional movers know how to wrap your furniture to mitigate as much risk as possible and get your furniture to your new home in the same condition they wrapped it in. For additional advice, to get a quote or to book your move, get in touch with us today.

Are Movers Worth It?

Posted on October 26, 2020 | by New Zealand Movers

It’s not unusual for people to shy away from moving for the simple reason that it’s one of the most stressful things you can do. The thing is, movers simplify and speed up the process greatly. So, when people ask are movers worth it, we say yes, every time. Even if you’re only moving a few items of furniture, movers know what they are doing, and they ensure your move is stress free. How? By doing pretty much everything for you and keeping your items safe.

Movers Pack and Unpack

It has been said, perhaps more than a few times, preparation, preparation, and more preparation. With moving, packing is easily the most daunting aspect, and it’s where professional movers can help the most. Movers will help you pack all your belongings swiftly and safely. They know all the best methods to keep your belongings safe and greatly mitigate the risk of damage. Movers do this by wrapping things carefully, putting them into the right size box or specialised crate, labelling them and making sure the boxes with fragile items are taken extra special care of. To make things even easier, you can ask them to unpack for you too.

Movers Create Inventories

Inventories can be a big job, but they are essential if you’re planning to run a tight ship—rather than a loose mess. Movers will help you by creating an inventory as they are packing your belongings. This time-consuming task ensures you know exactly what has been packed and where it goes so you don’t lose track of anything.

Movers Load the Truck for You

As with packing, there are methods that movers use to load the truck. They ensure that they place each box in such a way that it does not damage them, they don’t shift around and are unpacked in the right order. Keeping bigger items such as furniture safe can also be risky if you aren’t sure how to prevent them from shifting around, how to pack them, wrap them or load them.

Movers Safely Transport Your Belongings

Even if you are prepared to take on the risk of packing, loading and hiring a truck, are you able to drive a truck? Depending on the size of the vehicle, you may require a specialised licence to drive that truck.

Movers Offer Moving Insurance

If you go it alone, you might be able to cover your belongings with household insurance, but it is likely the coverage will be limited. Movers mitigate a lot of risk through careful loading, packing and transportation of your belongings but without that, your insurance company may not be willing to risk covering your move. Movers offer insurance specifically for this purpose.

Movers Offer Storage

Another delightful aspect of movers is that they can put your belongings straight into storage if there’s a delay between moving out of your old home and moving into your new one.

In conclusion, for the sake of your mental health, movers are worth it. The stress is overwhelming when you are worried about many other details such as switching your service providers and getting your children into new schools. For more information and advice, just give us a call today.

Are movers cheaper on weekdays?

Posted on October 18, 2020 | by New Zealand Movers

When it comes to moving houses, there’s always one question which never seems to be answered, once and for all: should you move on a weekday or a weekend? Well, you’ve come to the right place – because that’s what we’re going to answer today.

Both options have their benefits. In short, it’s a trade-off.
So here’s the ultimate pros and cons list of when to move house.

Read the full article below.

Weekdays

PROS

The price – There’s no shame in trying to save a buck where you can. Many moving companies offer discount rates for weekday moves, so it’s definitely something to consider when moving to a new place.
The flexibility – Most movers and packers are quieter during the week. This will save you a headache in trying to squeeze in a time that suits both parties, and going back and forth with dates and times. It also means you should (in theory) be able to move into your place quicker.
Connecting utilities – If you move in and find you’ve got an issue with your electricity, water, gas or (god forbid) internet connections, a weekday move will ensure you can sort those problems out without listening to that awful hold music for hours on end.

CONS

Time off work – If you work full time, there’s a fair chance you’ll have to eat into your personal leave to move houses during a weekday. And if you’re a casual worker, it’s even more important to consider whether taking time off work is worth moving on a weekday. You may still find that it is, but that’s for you to consider.
School pick up – Parents try their best not to let kids get in the way of things. But this one’s unavoidable. Working around school pick up could take up a large chunk of your moving time.
Working around peak hours – there’s little point in paying for your moving truck to be stuck in peak hour traffic. Try to book after 9am and before 5pm.

Weekends

PROS

Convenience – If you work during the week, then a weekend move means you don’t have to chew up your precious personal leave or chuck a cheeky sickie. C’mon, we’ve all been there.
An extra set of hands – You might be the kind of person who enlists your friends as cheap labour during the move. There’s (mostly) nothing wrong with this, and moving on a weekend increases your odds of getting them on board.

CONS

The price – Yep, most movers will charge you extra for the convenience of moving on a weekend. As mentioned previously, it’s up to you to decide whether taking a day off work during the week works out better than being charged extra on a weekend.
Finding a slot – Moving companies’ weekend slots are known to be booked up well in advance. You don’t want to get the keys to a place, only to be moving in 5 weeks later. Or maybe you do. I don’t know.
Kids – This could either work as a pro or a con. If your kids are too young to help with the move, then they’ll most likely be getting in the way during a weekend move. But if they’re a bit more mature, then sweet! You’ve got some more cheap labour under your belt.

So, now that you’ve read our ultimate pros and cons list of choosing when to move, it’s up to you to weigh it all up!

Where is the best place in New Zealand to retire?

Posted on October 12, 2020 | by New Zealand Movers

People have been moving out of Auckland to retire for decades. Wanting to get more for their money house wise, better lifestyle and quality of life.

Whatever your plans are for 2018, let us remove the stress from your next move.

Read full articles below:

Where is the best place in New Zealand to retire?

According to a 2017 global Deutsche Bank survey, Wellington offers ‘the best quality of life in the world’.

The Kiwi capital had the least pollution of the 47 cities ranked, was second best in the world for commute times, and also scored highly for property price to income ratio.

It made us wonder, for whom exactly does Wellington offer the best quality of life? How does it meet the needs of retirees for example? And how do you go about measuring ‘quality of life’?

So we decided we’d have a go at finding the place that offers the best quality of life for retirees in New Zealand.

We settled on 4 criteria – Climate, Safety, Health Care, and Affordability. We then set about exploring a variety of sources.

Here are some, not all, of the ‘facts’ we found:

According to Niwa’s climate database Richmond (near Nelson) topped the sunshine standings in 2016 with 2840 hours of sunshine recorded, 258 hours ahead of Blenheim, with Takaka and New Plymouth close behind.

Tasman is also the district with the lowest crime rate in New Zealand. In the 12 months to April this year, there were 8,932 crimes compared to 28,141 in Wellington and 35,902 in Auckland city.

In terms of health care, the Kapiti Coast offers a plethora of picturesque retirement homes but the West Coast is currently the place to be for the shortest stay in hospital emergency departments. The fastest cancer treatment can be found in Waitemata.

The cost of living is certainly cheaper in Wellington than Auckland or Christchurch. But if you’re looking to downsize, the latest QV figures put Whanganui, Palmerston North, and Masterton as three reasonably affordable places to buy real estate. If you’ve got your heart set on Nelson, you’ll need more than half a million dollars and over a million for Queenstown.

Feeling just a little befuddled and not even close to finding ‘the one’ we decided to turn to three people we thought might have the answer.

Former Retirement Commissioner of New Zealand, Diana Crossan has lived in Wellington since 1980 and agrees with Deutsche Bank’s conclusion that it offers a great lifestyle.

“No argument from me. When I first moved to Wellington, I was warned it was grey and one-dimensional with ‘only the Green Parrot open after dark’. I’ve watched it change into a vibrant, diverse and very liveable city.

“In my last 4 jobs my daily commute was between 4 and 6 minutes door to door. My colleagues who commute from a bit further out are impressed with Wellington’s improved public transport systems, especially via the trains.”

But she says unless retirees have a mortgage free house, Wellington could be a difficult option.

She says there are two key questions you need to ask yourself when deciding where to retire. Firstly, ‘what are my social needs?’

This includes proximity to family and friends as well as cultural and sporting interests. Health and medical services need to be considered but also access to part-time work, housing and of course climate, to which she’s quick to quip “Wellington’s winds invigorate, don’t they?”

The second but undoubtedly most important consideration is income.

“Income and savings need to dictate where we live in our retirement. If income is limited, people have to prioritise which of the social factors are most important.”

When Financial Commentator and Adviser, Martin Hawes moved from Christchurch to Queenstown 20 years ago, the lead social factor for him was the wonderful mountaineering. He says if you enjoy the outdoors and can afford it, Queenstown is a great place to retire.

”We love living here but in winter my heating bill is through the roof.”

And he adds that anyone looking to downsize should look elsewhere. “Fairlie or Greymouth maybe but not Queenstown. Think about how much house you want and how much income you have and work it out from there.”

He then declares this best-place-to-retire lark completely futile. And we realise he’s right.

The needs of retirees, now more than ever, are infinitely wide and varied. City or small town? Outdoors or arts? Family or friends? Work or play or both or all of the above.

In short, you can look at facts and figures all you like but no one can tell you the best place to retire because the decision can only be yours.

Former Finance Minister and Deputy Prime Minister, Sir Michael Cullen chose to semi-retire to the Bay of Plenty town of Ohope.

“There are no traffic lights. You feel quite upset if you have to park more than 50 metres away from where you’re going.”

He’s always loved the place for it’s beautiful climate and its friendly people and happily two out of three of his children live nearby.

And he’s got a simple but equally important third question to add to Diana’s two that he thinks all retirees need to ask themselves. And it’s this:

“Am I going to be happy living here?”

If it’s a yes, then there’s your quality of life, right there.

Article: https://www.lifetimeincome.co.nz/about-us/news/2017/july/where-is-the-best-place-in-new-zealand-to-retire-lifetime-investigates/

Grey flight: how likely are baby boomers to retire overseas?

Senior Couple Taking Dog For Walk In Countryside

Summer is waning, living costs in New Zealand are on the rise, and, despite an increase in NZ Superannuation, many over-65s still find their pension falls far short of providing a comfortable lifestyle. Could the answer to an idyllic retirement be somewhere overseas, where the weather is warmer and your funds go further?

New Zealanders living in Auckland, Wellington or Christchurch need savings of at least $101,774 at age 65 in order to be able to fund the most basic of lifestyles, a Massey University study found last year.

Dr Claire Matthews, who undertook the research, told Stuff that escalating house prices and mounting household utility bills meant NZ Super payments failed to cover the costs of living for many retirees.

So having $100K of savings still means a ‘no frills’ retirement: just getting by, eating a limited diet and no holidays.

Given this it’s not surprising why the idea of sun and sea, and a lower cost of living are powerful incentives when considering where you might retire.

When it comes to retirees moving overseas, dubbed ‘grey flight’ by some, exact numbers are hard to come by. Statistics New Zealand does not collect data on New Zealanders living or retiring overseas while the Ministry of Social Development could not provide figures on how many Kiwis abroad it pays superannuation to. It’s also worth noting that not everyone receives their pensions internationally.

Anecdotally however it seems more and more baby boomers are retiring abroad, or at least considering it.

Glenn Thompson, the CEO of Century 21 Pro Real Estate in Hua Hin in the Gulf of Thailand, said he has noticed a “large rise” in the number of New Zealanders and Australians coming to buy properties in Thailand due to the high cost of living in cities back home.

Hua Hin, described by Lonely Planet as a “refreshing mix of city and sea with an almost cosmopolitan ambience”, is a haven for golfers, with at least 10 top-class courses in easy reach of the city. It is also a good budget destination where seafood is cheap and plentiful, and there is convenient public transport.

Australasian buyers tend to buy off-plan and are usually attracted to an average price point of 8M baht, or NZ$348,000, said Thompson, who has worked in real estate in Hua Hin for 14 years. For that you get a three-bedroom residence, with two or three bathrooms and a private pool.

“It’s within a compound with security although Hua Hin is a very safe place,” he said. “Buyers are satisfied to be in the countryside but still within 10 minutes drive of the town centre and the beaches.”

Meanwhile International Living, an Ireland-based publishing company that writes about retiring overseas, recently set up an Australian operation. Its focus is on limited budgets and affordable living in exotic locales.

In its first-ever survey, International Living Australia named Malaysia as its 2018 number one retirement destination.

The English-speaking country ranked high for its weather, “world class” healthcare system, pristine beaches and its lenient visa rules.

Ranking just behind it were Thailand, Mexico, Cambodia and Bali. European destinations such as Spain, Portugal, Italy and France also made it into the top 15.

All these destinations offer different options for retirement – whether it’s balmy beaches and cheaper living or stunning landscapes and vibrant cultures. You’ll find other like-minded retirees living in these places too, often providing a close-knit community.

However it’s worth considering several things before opting for a late-in-life OE, as someone Overseas and Experienced.

Money is crucial, and in some cases you can receive some or all of your NZ Super if you live in another country. There is information on Work and Income’s website on this here.

Cheaper living costs are a major motivation for many, but that shouldn’t be your only reason for retiring abroad or you are simply an economic refugee. Like all good travellers you’ll need a strong desire for adventure and new experiences, a sense of humour and a hefty dose of patience.

Think about whether you see this as a permanent move. Many overseas jurisdictions have quite stringent rules around who gets medical care. Meanwhile the very elderly or infirm may prefer to be closer to family and friends. If you are able to, it is worth keeping property in Aotearoa so you have somewhere to return to later if you wish.

If you are feeling the pinch in New Zealand, it is worth remembering that releasing equity in the family home and moving to a retirement village provides an immediate boost to savings and income.

Studies undertaken by social research firm CRESA found that 20 per cent of incoming residents released more than $200,000 and around 60 per cent released more than $50,000 when they sold up and moved to the village, said Retirement Villages Association executive director John Collyns.

“We also know that the majority of residents move to a village that’s a short distance from where they’ve always lived so they remain connected to their community. Other benefits include companionship, a no-hassle lifestyle, and a pathway to care if needed and are the reasons why villages are so popular. All of these are more difficult to achieve if the retiree moves to Thailand or wherever.”

By: Rachel Helyer Donaldson, INsite Magazine
Article: http://insitemagazine.co.nz/2018/02/13/grey-flight-how-likely-are-baby-boomers-to-retire-overseas/

Home lending restrictions could ease again by year end

Home lending restrictions could be eased again by the end of this year, an economist is predicting.

The Reserve Bank left property loan restrictions on hold today after easing them slightly in January.

Loan-to-value ratio restrictions have been in place since October 2013, requiring most home buyers to have a 20 per cent deposit.

In January they were eased to allow banks to lend up to 15 per cent of their new lending to owner-occupiers with a deposit of less than 20 per cent – up from 10 per cent.

At the same time the cap for lending to investors eased to allow the banks to lend up to 5 per cent to investors with equity of less than 35 per cent – down from 40 per cent equity…

By: Tamsyn Parker, Money Editor, NZ Herald.
Read full article here: https://www.nzherald.co.nz/personal-finance/news/article.cfm?c_id=12&objectid=12061289

The downsizer’s bible

There comes a time in life when many Kiwis want to downsize to a smaller home. The reality of doing so leaves many frozen like a possum in the headlights. Often the fear is tied up with a lifetime of possessions, says Janice Emery, real estate agent at RE/MAX.

Janice and her business partner Di Connolly realised there was a market in helping such people with an end-to-end move.

The pair have written a booklet giving advice on the process covering issues such as the need to get legal advice and how to source practical help in decluttering, upgrading the property for sale, and even waste collection.

Many clients find themselves alone in a large house and can find it depressing and/or a burden, says Janice.

After decades in the same property they may also feel a fear of the unknown…

By: Diana Clement, OneRoof.
Read full article here: https://www.oneroof.co.nz/news/the-guide-book-to-downsizing-35222

What’s Happening in NZ’s Property Market?

Posted on October 9, 2020 | by New Zealand Movers

Thinking about moving out of Auckland? Want to buy your own home? What’s going to happen in the rental market? Thinking about buying a property and business?

What ever your doing let us help you remove the stress from your move.

Read full articles below:

Quiet January for Auckland’s biggest realtor, as Barfoot data shows 5.7pc drop in house sales.

A quiet and blissfully warm January in Auckland saw sales by the city’s biggest realtors decline but the agency’s boss indicated that was not unexpected.

Barfoot & Thompson sold 745 residential properties in December but that fell last month to 593 sales, a point acknowledged by managing director Peter Thompson who heads the business which says it sells one in every three Auckland residential homes.

“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,” Thompson said.

Turnover in some price categories fell more than others.

“Sales of homes 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 per cent of all sales in January 2017 to 8 per cent of sales in January 2018,” Thompson said.

The average January sale price for Barfoots was $934,753, 1.5 percent up on the previous three months. The median price was $830,000, 1.6 per cent below the average for the previous three months.

Thompson is optimistic.

“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 a limited income, sales numbers can be expected to grow as we head into the traditionally strong February to August sales period,” he said.

“The same situation exists for rural and lifestyle property sales.

“With buyers being selective and taking their time, sales activity in this sector was quiet in January. There was a strong level of buyer interest and a solid level of quality new listings including a number of dairy farms.

“Interest in small to medium-sized commercial property was strong in January, and our sales for the month at $78 million were the highest on record for the month of January,” he said.

Quotable Value will release national house value data on Friday.

By: Anne Gibson, Property editor, NZ Herald
Article: http://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=11988314

Home loan rates tipped to rise in 2018 – but not by much, say experts.

Home loan rates will likely rise a bit in 2018 but are not expected to take a big jump up, experts believe.

Reserve Bank data shows average fixed-rate mortgages rose by between 11 and 17 basis points between December 2016 and October 2017.

On a $350,000 mortgage fixed for two years over a 25-year term the increase was equivalent to an extra $22 a month.

But it was lower than had been expected.

Jose George, the general manager at Canstar New Zealand, said rates had moved up a bit in the past year but there hadn’t been any big changes.

“We have seen the historical lows go. But rates have increased much lower than expected.”

George said low inflation meant central banks had held rates low in a bid to stimulate spending and economic growth.

In New Zealand retail banks had also become much more selective about home loan lending over the past year in response to fears of a property market melt-down.

“There has been a lot of pressure on credit quality. Banks have become far more selective in terms of their risk appetite.”

George said based on what had happened in the past 12 months it was hard to forecast where interest rates would go in 2018.

Economists are predicting the Reserve Bank won’t make any moves to increase the official cash rate until late this year or even next year.

There is some suggestion the next rate change may also be down if inflation remains persistently low.

“It speaks to the uncertainty,” he said.

But David Tripe, Massey University’s banking expert, said looking at the yield curve suggested interest rates would be higher by the end of 2018.

“If we start to see bubbles of inflation from the new Government that might encourage a rate rise.”

Increasing the minimum wage to $20 an hour by 2020 would push up wages at the lower end which was likely to increase inflation, Tripe said.

That could mean short-term rates start to rise as banks price in an increase in the official cash rate which affects floating and short term rates more than longer-term fixed rates.

“It is much more likely rates are going to rise over the next two years than fall.”

But he doesn’t think they will rise by much because household debt is so high.

That means any increases to rates will bite into people’s spending capacity, limiting how much they can buy.

“People will be much more sensitive to interest rate rises than in the past.”

Mark Collins, chief executive of Mike Pero Mortgages, said some people coming off very low rates from 2016 would see an increase.

But for others the change may be marginal.

“I think it will be lower for longer.”

He urged people to shop around given there was around an 0.8 percentage point difference between the lowest and highest rates in the market.

On a $350,000 loan that could equate to about $200 extra a month. A lower rate could also allow a person to borrow more, he said.

Good advice was key.

“It’s not just the rate but how it is structured.”

Splitting a mortgage into several different parts could also help spread the risk of being faced with a big jump up all at once.

For those due to re-fix their home loan Collins said people needed to think about whether their circumstances had changed.

He urged people not to take the first offer made by their bank as it might not be the best in the market.

Collins said people should think about where they wanted to be financially in three to five years.

“The faster you pay it off the less interest you will pay.”

Rising home loans
Home loan rates Dec 2016 – Oct 2017:
• floating 5.61% – 5.84% up 13 basis points
• one-year fixed 4.94% – 5.05% up 11 basis points
• two-year fixed 5.14% – 5.25% up 11 basis points
• three-year 5.4% 5.57% up 17 basis points
Source: Reserve Bank

Deposit rates
Savers who are looking for a better rate at the bank are likely to be disappointed.

Canstar’s Jose George said there was unlikely to be any good news for savers, with term deposit rates expected to remain low.

“There isn’t really much good news. In a low inflation environment what can you expect?”

He urged savers to be on the look out for specials which banks sometimes offered to help manage their books when a large amount of deposits matured at once.

The weighted average six-month term deposit rate rose just 2 basis points between December 2016 and November 2017 to 3.32 per cent, Reserve Bank figures show.

By: Tamsyn Parker, Money Editor, NZ Herald
Article: http://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=11952611

Top Bay of Plenty properties with businesses

Two high profile and freehold properties, along with the two established and successful Tyre Works Ltd businesses occupying them, in Rotorua and Mt Maunganui, have been put on the market.

“Both sites have road frontages to main arterial traffic routes with high traffic exposure and are zoned Industrial 1E,” says Sharene Temple of Sothebys International Realty.

Temple is marketing 13 Fairy Springs Rd, Rotorua and 67 Hewletts Rd, Mt Maunganui, for sale by tender closing at 2pm on March 1 in Sotheby’s office at 295 Parnell Rd, Auckland.

“The vendor owns the two Tyre Works businesses, which lease the properties he owns; and the Mt Maunganui property also has a second independent tenant,” she says.

Temple says the two properties have been recently refurbished adding capacity for growth.

“The one in Rotorua is a concrete and steel new building with a floor area of about 1390sq m on a 2157sq m land site. In addition to the workshop area, there are two offices upstairs and a server room.

Tyre Works pays $147,056 per annum plus GST on a four-year lease commencing March 26, 2016, with two 4-year renewals. The first rent review is due on December 1, 2019, and two yearly thereafter.

“Three combined lots make for a rectangular shaped site, with a frontage of around 53.6 metres to main arterial Fairy Springs Rd, and also to a KFC restaurant through to the left of the property, giving great exposure to passing traffic.”

The Mt Maunganui property has a total floor area of around 2159.4 sq m encompassing two buildings on a 4360sq m flat site with Tyre Works leasing space in both buildings. The front part of the roadside building is tenanted by Evolution Cycles.

Space within the front building at 67A Hewletts Rd is leased by Tyre Works for $67,110 per annum plus GST commencing December 1, 2014, on a four-year term with two 4-yearly rights of renewal and now two-yearly rent reviews.

The space leased by Tyre Works in the back building at 1/67 Hewletts Rd has a four-year lease to Tyre Works commencing December 1, 2014, with two 4-year renewals taking a final expiry through to December 1, 2022. Rent reviews are now two yearly and the annual rent is $35,000 plus GST.

Evolution Cycles, the other tenant occupying Units 1 and 2 at 67 Hewletts Rd, is on a four-year net lease commencing July 1, 2015, and pays $86,841.67 per annum plus GST. Rent reviews are also two yearly.

The front of the roadside building comprises showroom space, open plan office, workshop, two toilets, and a mezzanine room; along with a deck leased to Evolution Cycles.

At the back of this building is a workshop with a 4-6m height, toilet and a mezzanine landing with an office area.

The rear building encompasses a warehouse with a 6-8m height to ceiling; reception, staff room, client room and mezzanine space.

Temple says the property, with a 37.61m frontage to Hewlett Rd, is highly visible to traffic travelling between Mt Maunganui and the Tauranga Harbour Bridge.

“The Maunganui area is the closest industrial area to the Port of Tauranga and Hewletts Rd is a major arterial route with heavy traffic usage.”

She says the property has an excellent central location within the Mount Maunganui industrial area and good access to air, sea and rail services.

“This sale presents a rare opportunity to purchase two Bay of Plenty commercial properties on major roads with established businesses as tenants.

“The vendor is retiring and would prefer to sell the portfolio of land, buildings and the two Tyre Works businesses to just one buyer.”

By: Sharene Temple, Sothebys International Realty.
Article: http://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=11989249

Tenants face perfect storm in rental market

A perfect storm has hit renters, with the number of rental properties on the market halving since last year while prices have hit a record high, Trade Me says.

The number of available rentals in November was down 49 percent on last year, while the national median rent rose 3.4 percent to a record-breaking $460 per week.

All but one of New Zealand’s 15 regions saw rent increases year-on-year, with six regions experiencing double-digit growth.

Wellington was hardest-hit with 71 percent fewer rentals, while the median weekly rent rose 8.7 percent to $470.

“Supply simply cannot keep up with the demand we are seeing and it’s rare for rental properties to be coming on and off the market so quickly,” Trade Me’s head of property Nigel Jeffries said.

“The coming months are not looking good for flat-hunting Kiwis.

“Fierce demand means landlords can have their houses listed and then tenanted in record time.”

In Auckland, median rents jumped 1.9 percent to $530 per week while supply dropped 35 percent. And it could get worse.

“As we head into the New Year and university students prepare to flood the Auckland rental market, some large rental increases could be in store for the Super City,” Mr Jeffries said.

The biggest jump in rental prices came in Marlborough, which was up 23.5 percent from $340 per week last year to $420 per week in November.

However Christchurch managed to buck the national trend as the supply grew during the earthquake rebuild, with rents falling slightly to $390 per week.

By: NZN / Newshub.
Article: http://www.newshub.co.nz/home/money/2017/12/tenants-face-perfect-storm-in-rental-market.html

Property crisis: 1 in 3 have looked at leaving Auckland

Posted on October 2, 2020 | by New Zealand Movers

A third of Aucklanders have considered moving out of the city as it becomes increasingly unaffordable, a new survey reveals.

Experts say the trend could leave the city short of workers such as teachers, nurses and police who can earn similar salaries in more affordable cities.

A poll conducted for website The Spinoff by research company SSI found one in three people (32.2 per cent) surveyed had considered moving away from Auckland in the last two years because of house prices.

A further 36 per cent hadn’t considered the option but thought it was a good idea. Auckland housing prices have risen by 85 per cent in the last four years, taking the average price to around nine times the average household’s income.

Auckland’s median house price for June was $825,000, according to Real Estate Institute data.

Salvation Army social policy analyst Alan Johnson was unsurprised by the results.

“There’s people leaving Auckland in bigger numbers than ever because of the house prices. It will undermine the city’s competitiveness. People doing lower paid jobs, particularly in the service and construction sectors, need to be able to afford to live in the city,” Johnson said.

Between the 2008 and 2013 Censuses, 32,184 people left Auckland for the Waikato, Wellington and Canterbury regions, while 29,301 moved to Auckland from those areas.

Economist Shamubeel Eaqub said there were two types of Aucklanders leaving for the provinces – retirees heading for cheaper areas like Tauranga and Northland, and families looking for a better lifestyle.

Since the 2013 Census, Auckland had become even less affordable, but the decision to leave the city was a challenge for some.

“The challenge for a lot of people is they’re not able to get the same kinds of jobs or job security in other parts of New Zealand.

“That’s [probably why] it’s only a third of people saying they’ve actually considered it.”

This month, Coalition for More Homes, a group including members of Generation Zero, The Salvation Army, The Morgan Foundation and Property Council, published an open letter to the Auckland Council ahead of its decision on the Unitary Plan.

It warned that Aucklanders were forced to spend too much on housing, threatening the city’s culture and quality of life.

Auckland housing poll

Have you in the last two years considered moving away from Auckland because of house prices?

• Yes – 32.2 per cent
• No, but it’s a good idea – 36.3 per cent
• No — 31.5 per cent

Do you believe there is a housing crisis in Auckland?

• Yes — 84 per cent
• No — 10.3 per cent
• Don’t know — 5.7 per cent

Source: The Spinoff/SSI

• Survey Sampling International (SSI) conducted the online survey this month among a sample of 760 Auckland residents aged 18 and over with quota applied to gender, age and region within Auckland. The margin of error is +/- 3.6 per cent.

– NZ Herald