wellington regional CoMPariSon

SaleS Median dayS to Sell Median Sale pricearea apr 12 apr 13 apr 12 apr 13 apr 12 apr 13 $000s $000sWairarapa 55 53 79 53 $235 $246 Wellington Central 41 45 59 35 $547 $441 Wellington West 31 52 37 23 $493 $564 Wellington East 27 45 30 23 $502 $550 Wellington South 40 49 36 23 $481 $532 Wellington North 68 85 28 29 $420 $482 Pukerua Bay/Tawa 60 73 45 40 $375 $390 Lower Hutt 113 169 38 36 $360 $365 Upper Hutt 64 75 43 38 $322 $318 Otaki/Paekakariki 73 95 52 50 $362 $346 Levin 34 29 47 64 $165 $200

Comparative sales figures compiled from the Real Estate Institute of NZ statistics

Cost of building on the riseExtract from Tony Alexander, Chief economist BNZ, weekly update

There are a great number of reasons why house prices are high in New Zealand, why they have risen so much recently, and why they will keep rising for perhaps another three years. One of those reasons is that building costs are high courtesy of such things as inefficiencies in the building materials sector, lack of bulk construction of similar houses, costs of importing materials from overseas, high and rising construction standards and so on.

The worrying thing is that the 3.1% rise in costs has occurred during a period when house construction has only risen to a still well below average level of around 17,000 in the year to March. As consent issuance rises toward 30,000 house construction cost inflation will head toward 10%. Building a house is only going to get more expensive.

More at: http://tonyalexander.co.nz/regular-publications/bnz-weekly-overview/housing-market/construction-costs-rising/#sthash.DLNQ4ufv.dpuf

Transferring properties to your trust

Is the setup of your trust still appropriate?

Sally and Jim had a family trust that they set up many years ago. They had set up the trust so that their children were the discretionary beneficiaries and the final beneficiaries. At the time they set it up, they had only just had their first child, and the trust simply held their family home.

Earlier this year they bought a rental property in the name of the trust, but only thought to ask their original lawyer to look at the trust documents to check that everything still met their needs when they had been renting the property for some months. They were very surprised when their lawyer pointed out that because Sally and Jim were not discretionary beneficiaries, they couldn’t personally be paid any money from the trust (which included income from the rental property), which was problematic for them. It is important to be aware of the different types of beneficiaries that may be mentioned in your trust deed:

Discretionary beneficiaries are beneficiaries who the trustees are entitled to distribute the trust fund to during the lifetime of the trust (this may be in relation to capital and/or income). It is up to the trustees’ discretion as to who receives what share of the trust assets.

Final beneficiaries are the people who will receive the trust fund when the trust is wound up (shut down). This is generally in set shares nominated in the trust documentation.

In Sally and Jim’s situation, because of the way the trust was set up their only option was to transfer the rental property to a new trust, which was a costly and time-consuming process. If you already have a trust check with an experienced Trusts lawyer if it meets your needs in regard to new assets you want to put in the trust.

Claire Coe. Rainey Collins Lawyers www.raineycollins.co.nz and follow us on Twitter @RaineyCollins

Leaders Real Estate 1987 Limited MREINZpropertyUPDATE

© Homenet Enterprises Ph: (04) 234 8006, E-mail: graham@homenet.co.nz

JUNE 2013

Leaders Real Estate Group represented by: Leaders Real Estate (1987) Ltd, Northside Realty Ltd, Villa Real Estate Ltd. Licensed under the Real Estate Agents Act 2008

Disclaimer: All the information published in Property Update is true and accurate to the best of the publisher’s knowledge. No liability is assumed by RE/MAX Leaders, nor the publisher, for any losses suffered by any person or organisation relying directly or indirectly on this newsletter.

Leaders Real Estate 1987 Limited MREINZ

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There has been plenty of media attention lately about The Reserve Bank potentially requiring the trading banks to hold more cash reserves for loans above 80% of property values. The cost if passed on to the customer is less than $10 per week for a loan of $250,000. If you were a prospective home buyer with a 5% deposit what would you do? Save for a further 2-3 years to get your 20% deposit and risk home ownership getting further out of reach – unlikely. Potential regulatory changes that could restrict lending have prompted some home buyers to buy now or trade up rather than wait and see. The Wellington mortgage market in May has been the busiest for some time and we put this down to a number of factors including; accessing Kiwisaver for first home deposits, investors back in the market, lowest interest rates in many years, banks having a good appetite to write business (including 5% deposits on apartments), along with buyers and sellers generally being realistic about property market values.

We do not see the low deposit lending being removed from the market at this stage, perhaps a little more expensive in terms of fees, but still being a real option for the first home buyers in particular to take advantage of. A good option is to have pre-approved finance as this will lock in the current lending criteria for the next 6 months, so if the market does change you are a step ahead.

Courtesy The Loan Shop www.homeloanshop.co.nz

www.reinz.co.nz/reinz/public/reinz-statistics/reinz-statistics_home.cfm

Andrea Skews

M: 0220 SELL IT (735548) P: 04 4 SELL IT (735548) E: AndrEA.SkEwS@gMAIL.coM

M: 0220 SELL IT (735548) P: 04 4 SELL IT (735548) E: AndrEA.SkEwS@gMAIL.coM

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recent Wellington residential property SalesStreet Name Suburb Beds SOLD RV Street Name Suburb Beds SOLD RV

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