Posts tagged Papatoetoe
Property market update report for October
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The property market in Auckland remains balanced and stable with homes turning over at a relatively slower rate in recent months as listings remain relatively high.

We are finding homes are taking a while longer to sell given the current stock levels, however, there is still a good percentage of homes selling each month and values are reasonably consistent. Sellers are finding that in a balanced market, prices need to be competitive from the get-go and aligned with current market conditions and buyer activity if they are to sell. The silver lining to that, of course, is that prices are relative; so, if you're buying and selling in Auckland in the same market, it balances out.

It's also worth noting that in Auckland over the past 20 years, property prices have nearly doubled every 10 years, as the median 10 year rise is 96% which you can see in the chart below (this data is using REINZ House Price Index). When you compare this to all of NZ, Auckland has sustained a relatively consistent higher 10 year growth in prices that are well ahead of the NZ total at 88%.

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Regardless of the rates of values and turn over, the balance between demand and supply always needs to be considered in assessing market activity and property values.

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How accurate is the CV when valuing my home?

Figures presented by CoreLogic showed that the more expensive the property, the more likely it was to sell at a lower price compared to its CV.

In the past three months, homes with CVs higher than $1 million have typically been selling for prices 1–4% below their CV. Mid-priced homes with CVs between $800,000–$1M have typically been selling for prices close to their council value.

Homes with CVs below $650,000 are still selling for prices as high as 9% above their CV.So how is a CV calculated exactly?Property Institute of New Zealand Chief Executive, Ashley Church, says that the valuations are a ‘guesstimate’ rather than an accurate indicator of what a home is actually worth. “CVs are conducted once every 3 years and they’re a ‘snapshot’ of the approximate value of any given property at that moment in time.

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They shouldn’t be regarded as an exact measure of the value of a home — and they’re certainly not intended to provide an ongoing price guide.”The methodology for a Council Valuation is very different to a formal valuation. A CV is a blunt instrument. It’s a computer based assessment of the value of your home based on what other homes in your area have sold for; whereas a formal Registered Valuation is conducted onsite and takes account of the condition of your home, any renovations you might have made, whether you have a pool, the number of bedrooms you might have, the condition of your home — all of the things that make it unique.

Mr Church says that the question of the value of your home has also been further confused by the recent proliferation of ‘free’ online home valuation services. “There are a couple of paid services that are getting much better at remote assessment – but the free ones are generally about as effective as reading tealeaves or chicken entrails and their advice should be treated with a grain of salt.”

What is a defective cross lease title?
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The flats plan should correctly reflect the location and size of the existing dwellings and improvements on the land. But what happens when it doesn’t and what can you do about it?

If the following applies, remedy can be made by way of written consent by all flat owners in the cross lease development. This consent must include the names of all owners, the title and lease numbers and an explanation of what is being consented to then signed and dated by all owners within the cross lease.

  • If the improvement is not attached to the dwelling and is on the exclusive use area for that dwelling (for example a garage or granny flat)

  • If the improvement is attached to the dwelling and is on the exclusive use area for that dwelling but is not enclosed (for example a carport)

The examples below are when a title needs updating. This can be expensive as the area of the entire cross lease will need to be re surveyed which can cost tens of thousands of dollars and can take several months to complete.

  • If the improvement is attached to the dwelling and is enclosed

  • If the improvement is located on the common area but is designed for the exclusive use of one flat owner (for example a garage that is situated on a shared driveway)

  • If a structure has been removed from the flats plan but is referred to as part of the legal description of the title (for example a garage) NB It could be more cost effective to reinstate the garage than to update the title.

Why update the title if it has a defect?

Lenders and banks are taking a cautions approach to such title sand therefore can limit the buyer pool of the home. In some instances, a purchaser has taken early possession of the home prior to settlement while the vendor updates the title.

It is important that I recommend you seek your own legal, independent advice regarding any matter relating to titles or property conveyancing.