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NEW ZEALAND REAL ESTATE 2014. NEW ZEALAND – GENERAL FACTS Approximately 1000 miles long - total area 103,483 sq. miles, with 4,300 miles of coastline.

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Presentation on theme: "NEW ZEALAND REAL ESTATE 2014. NEW ZEALAND – GENERAL FACTS Approximately 1000 miles long - total area 103,483 sq. miles, with 4,300 miles of coastline."— Presentation transcript:

1 NEW ZEALAND REAL ESTATE 2014

2 NEW ZEALAND – GENERAL FACTS Approximately 1000 miles long - total area 103,483 sq. miles, with 4,300 miles of coastline - similar size to Great Britain or Japan Population of just over 4.5 million Consists of two main islands, North and South and a number of smaller islands Famous for the spectacular natural beauty, the indigenous Maori people and their culture, of course their national rugby team the ‘All Blacks’, their national sailing team ‘Team New Zealand’ and not to forget the large sheep population (roughly 13:1)Also many movies made there with film Director Peter Jackson – Lord of the Rings, King Kong Exports are from farming, horticulture, forestry and tourism Visitor arrivals 193,300 to June 2014 which was up 2,300 from last year. Biggest change USA was up 1,200 Migrants up 4,700 GDP up 0.7% in 2 nd quarter Real Estate market is good right now and realtors are busy

3 REAL ESTATE STATISTICS Total value of residential sales (including sections) was $3.220 billion in September up from $2.939 billion in August For the 12 months ended September 2014 total value of residential sales was $ billion Median price over the whole country was $420,000 Days to sell on average in the country was 35 days for September 2014 Rental investment return approximately 7.5 – 12.5% and varies a lot between cities and suburbs with higher return in city

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5 NEW ZEALAND REAL ESTATE REAA Real Estate Agents Authority Licensing and disciplining body for the real estate industry Independent govt. agency that sits under Ministry of Justice To promote high standard of service and professionalism in the industry and protect buyers and sellers of property Provides guidance to agents and deals with complaints about agents All agents must be licensed with REAA to work in the industry REINZ The Real Estate Institute of New Zealand Mark of quality serving real estate industry for 100 years REINZ members aspire to best practice standards and are bound by the REINZ Codes of Agency Practice and Individual Membership MREINZ – denotes an agency is a current member and may advertise after the company name

6 BUYER BEWARE Buyer’s are better protected working with agent as selling one’s own property privately is not classified as being “in trade” and hence not covered under Fair Trading Act If seller misrepresents property or fails to disclose important facts then only remedy to buyer is civil action If property offered “in trade” via a real estate agent then option exists for complaints to be presented to Commerce Commission under Fair Trading Act.

7 LISTINGS Listing agreements – Exclusive or Sole Agency are most popular – 90 days maximum Commission is $500 set up fee + $3.95% up to $400, % thereafter + GST (15%) – all paid by seller Each company has their own intranet site accessible to their agents only giving showing instructions etc like our MLS. To find another company’s listings have to look on the public website and call the listing agent for showing. Realestate.co.nz – official online real estate market place NZ’s #1 property app

8 LISTINGS CONT. Properties can be listed as Active for sale, Auction, Tender or Negotiation or PBN (Price by Negotiation) Negotiation or PBN listings is simply ‘no price marketing’. This method is used for short periods to determine the market value (and avoid over-pricing or under-selling) or until the property is sold Auction is very popular in larger cities where there is a good market and many buyers eg Auckland city area Tenders are less popular but found in some cities eg Wellington

9 MULTIPLE OFFERS Seller’s can look at multiple offers but can only accept one and a back-up All buyers must sign a multi offer acknowledgement form Seller cannot play off one buyer against another If all offers are from other agents and not the listing agent then listing agent can present to seller If listing agent has presented one offer then the manager of the company must present all offers to the seller and advise

10 CONTRACT ESCROW CLOSING Real estate salesperson can work with seller and buyer as long as not multi-offer situation Contract is given to both solicitors once agreement reached and signed Escrow is paid immediately when the contract is unconditional – if contract has conditions these must be satisfied first Escrow deposit is usually 10% so as to cover the real estate commission - held in the listing agents company’s trust account for 10 working days and then commission is deducted from it and the balance paid to the seller’s solicitor. The agent gets paid at this point NOT at settlement. At Settlement the balance is paid by buyer in full before possession takes place/if buyer does not settle in full on agreed date, escrow is not refundable

11 INTERNATIONAL MARKET Overseas Investors and non-residents can purchase real estate. Purchase of property does not give buyer any right to live permanently in NZ. There are some restrictions applying to Sensitive land, business assets worth more than $10 million and fishing quotas and they may need to apply for consent. More information at The fees for conveyance are typically around NZD1,600 Reasonably active international market with buyers coming through online marketing mostly New Zealand is popular destination for UK, American, South African, Australian and European migrants

12 MT. MAUNGANUI Omanu Beach – beach houses

13 MT. MAUNGANUI Omanu Beach homes

14 THE MOUNT Mt. Maunganui beach and the Mount

15 MOUNT TRAIL

16 FUR SEAL On the Mount trail

17 PILOT BAY On inland side of the Mount

18 VIEW FROM MOUNT TRAIL

19 View of Matakana Island


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