NEW ZEALAND REAL ESTATE
2014
NEW ZEALAND – GENERAL FACTS
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Approximately 1000 miles long - total area 103,483 sq. miles, with 4,300 miles of coastline - similar size
to Great Britain or Japan
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Population of just over 4.5 million
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Consists of two main islands, North and South and a number of smaller islands
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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
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Exports are from farming, horticulture, forestry and tourism
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Visitor arrivals 193,300 to June 2014 which was up 2,300 from last year. Biggest change USA was up
1,200
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Migrants up 4,700
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GDP up 0.7% in 2nd quarter
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Real Estate market is good right now and realtors are busy
REAL ESTATE STATISTICS
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Total value of residential sales (including sections) was $3.220
billion in September up from $2.939 billion in August
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For the 12 months ended September 2014 total value of
residential sales was $38.775 billion
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Median price over the whole country was $420,000
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Days to sell on average in the country was 35 days for
September 2014
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Rental investment return approximately 7.5 – 12.5% and varies
a lot between cities and suburbs with higher return in city
NEW ZEALAND REAL ESTATE
REAA
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Real Estate Agents Authority
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Licensing and disciplining body for the
real estate industry
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Independent govt. agency that sits
under Ministry of Justice
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To promote high standard of service
and professionalism in the industry and
protect buyers and sellers of property
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Provides guidance to agents and deals
with complaints about agents
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All agents must be licensed with REAA to
work in the industry
REINZ
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The Real Estate Institute of New
Zealand
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Mark of quality serving real estate
industry for 100 years
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REINZ members aspire to best
practice standards and are bound
by the REINZ Codes of Agency
Practice and Individual Membership
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MREINZ – denotes an agency is a
current member and may advertise
after the company name
BUYER BEWARE
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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 1986.
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If seller misrepresents property or fails to disclose important
facts then only remedy to buyer is civil action
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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.
LISTINGS
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Listing agreements – Exclusive or Sole Agency are most
popular – 90 days maximum
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Commission is $500 set up fee + $3.95% up to $400,000 + 2%
thereafter + GST (15%) – all paid by seller
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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.
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Realestate.co.nz – official online real estate market place
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NZ’s #1 property app
LISTINGS CONT.
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Properties can be listed as Active for sale, Auction, Tender or
Negotiation or PBN (Price by Negotiation)
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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
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Auction is very popular in larger cities where there is a good
market and many buyers eg Auckland city area
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Tenders are less popular but found in some cities eg Wellington
MULTIPLE OFFERS
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Seller’s can look at multiple offers but can only accept one
and a back-up
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All buyers must sign a multi offer acknowledgement form
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Seller cannot play off one buyer against another
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If all offers are from other agents and not the listing agent then
listing agent can present to seller
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If listing agent has presented one offer then the manager of
the company must present all offers to the seller and advise
CONTRACT ESCROW CLOSING
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Real estate salesperson can work with seller and buyer as long as
not multi-offer situation
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Contract is given to both solicitors once agreement reached and
signed
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Escrow is paid immediately when the contract is unconditional – if
contract has conditions these must be satisfied first
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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.
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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
INTERNATIONAL MARKET
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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 www.linz.govt.nz
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The fees for conveyance are typically around NZD1,600
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Reasonably active international market with buyers coming
through online marketing mostly
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New Zealand is popular destination for UK, American, South
African, Australian and European migrants
MT.
MAUNGANUI
Omanu Beach – beach houses
MT.
MAUNGANUI
Omanu Beach homes
THE MOUNT
Mt. Maunganui beach and the
Mount
MOUNT TRAIL
FUR SEAL
On the Mount trail
PILOT BAY
On inland side of the Mount
VIEW FROM
MOUNT TRAIL
VIEW FROM
MOUNT TRAIL
View of Matakana Island