Lately there has been a huge amount of publicity about leaky buildings here in New Zealand. These buildings are ones that were built for the most part in the early 1970’s through the mid 1990’s. One classic example of a leaky building from this era would be monolithic clad buildings. However any building using untreated pine for external structure is particularly susceptible to what has come to be known as the Leaky Building Syndrome.
What is Leaky Building Syndrome?
Unfortunately many properties in Auckland are affected by this problem. This is when moisture is trapped or has access to untreated structural timbers without adequate ventilation to permit quick drying. The process begins once untreated pine is damp. Various black fungi begin to grow. At this point, even if the water egress is fixed, the black fungi that have set up in the wood will attract moisture from the atmosphere themselves and the rotting will continue. This ultimately will lead to an extreme negative impact on the structural integrity of the building. The adverse affects of this problem aren’t limited to the buildings alone as the black fungus spores can also lead to respiratory diseases to the inhabitants as well.
Individuals looking at property for sale in Auckland or any other part of New Zealand need to be aware of this problem. Purchasers should obtain a report from a reputable company familiar with leaky buildings before making a purchase. A standard builder doing a normal building check is likely to miss dampness behind a gib board. Thus, to be 100% positive, specific testing may need to be conducted using infrared monitors. In some cases core sampling of structural members may need to be taken. It sounds like a hassle, but it is well worth it to be sure your potential home or investment is not affected by this costly problem.
A monolithic building may not leak for many years, so a test showing no evidence of water ingress may not mean, in itself, that the building is immune to the problem occurring in the future.
What should a purchaser look for?
There are four major things to look for when purchasing a property for sale in New Zealand:
1) Any multi-storey building with plaster over some form of board requires an expansion/movement joint and flashing between stories. Without these expansion joints, hair cracking will occur at some point which will allow moisture access into the structure. This moisture can then travel through capillary action and cause large amounts of damage.
2) The base of a plastered board should never go to ground level. If gardens have been built against such buildings then moisture, through soil via capillary action, will gain access into the walls.
3) Many of the buildings built in the aforementioned era previously did not have sloping iron roofs with deep eaves. Flashings then had to be very extensive to ensure that moisture was not driven into walls by the wind.
4) Many of the buildings described have flat, “inverted” roofs with some form of rubberised membrane. Again, if the plastering is inadequate or the membrane itself is damaged then moisture will enter leading to further problems
Any reputable company specializing in surveying leaky buildings should be able to identify any current problems and will be able to predict possible(and probable) issues for the future.
The potential costs of a leaky building are immense. My advice to any purchaser looking to buy property in New Zealand that was built in the time frame mentioned with any of the above characteristics is to do a thorough check, whatever the cost. Better to spend a little now in order to avoid a leaky home and costly repairs in the future.
Keeping up with home maintenance is a full-time job. As home makers, there are many things that need to be done to a home in order to keep it running smoothly. The one aspect of your home that has to be well kept throughout the year is plumbing. People seldom think about it whether in their homes or businesses, until something goes wrong.
At some point everyone needs air conditioning, heating and plumbing services for their homes or offices. The leaking pipes, and radiators, jammed toilets, malfunctioning toilet flush mechanisms, clogged sinks and drains, a leaking tap, HVAC maintenance, rooter services, septic service, water heater repair and replacement, pipe locating, low pressure, water filters and disposals can be harrowing experience, especially if you are in a rush to get to work. And, of course then it is usually too late to call a Orakei Plumberand what could have been a small problem ends up being a costly one. Knowing and maintaining the health of your plumbing at home and in your business is extremely important.
The Process of plumbing is based on three things
Gravity
Pressure
Water levels
It is composed of two sub systems- first one brings fresh water into your building under pressure and other takes the wastewater out.
All those precautionary measures that we implement at our ends do help to some extent but does not necessarily prevent them from happening. Generally there are two types of plumber that we come across- one who handle basic repairs (often in emergency situations), and other who specialize in remodeling projects and additions. A botched job can end up costing you way more than if you had called an experienced plumber in the first place. It is always good to have a professional Parnell Plumber do the services for you. They are well qualified after rigorous training programs. They add a professional approach to the services offered. Orakei Plumbers follow a well structured method. Apart what all problems discussed in above paragraph, they offer total residential and commercial solutions, renovations for bathroom and kitchen, backflow preventions, sanitary/water pumps, spouting and guttering too. They give you advice on a planned maintenance program to keep the lifeblood of your property flowing well and unobstructed by any possible unforeseen circumstance.
Parnell Plumbers have established an enviable record of quality and efficiency. They use the best of technology and products, combining them with quality of workmanship resulting in very satisfied customers. If you take a look at the upcoming projects, they are proof positive of their work, efficiency and reputation.
Herne Bay, like other north facing regions of Auckland on the southern side of the Waitemata Harbour, was predominantly settled by the early merchant families, building large Victorian and Edwardian timber villas.
Unlike more modern constructions, it was difficult to say that these homes were designed to take advantage of the sun or expansive harbour views, as they were often simply a “pick and mix” with elements chosen from a catalogue and with a central corridor acting as component foundation and backbone of the dwelling.
The welcoming verandas give a human scale as well as a practical answer to keeping off both rain and sun.
Those searching for property for sale in Herne Bay are usually those who value the uniformity of design in the area along with the tranquillity afforded by the fact there are no non-residential or arterial transport developments disrupting the uniformity, contact with the harbour’s edge or safety of the streets.
What some do not realise when searching for property for sale in Herne Bay is that the suburb is not bounded by the harbour’s edge running to the transport route of Jervois Road on the ridge, but includes streets running to the south, often assumed to be part of the connected suburb of Ponsonby.
A couple of frustrations often faced by those searching for property for sale in Herne Bay are firstly, there are seldom a large number of properties available to choose from as people tend to settle for longer periods than the surrounding areas of Grey Lynn or Ponsonby.
Secondly, particularly in a “soft” or declining market, those living in the suburbs tend to be well healed and can often afford to hold off selling if they do not achieve the price they expect, waiting until the market moves to a level acceptable to the seller.
In summary, those searching for property for sale in Herne Bay are a very select group, but also, often need to be patient, to find the ideal property.
Home Staging business is growing in Auckland. More and more vendors realizing the value of home staging service. Real estate agents started implementing staging in their property selling service.
This testimonial is given by property owner, susie Kasza, after the sale of her Auckland property, about the service and result she received from Real Estate agent Ariel Levin.
Today’s housing environment has been affected by the erosion of confidence following international banking and finance house collapses. Conflicting ‘expert’ advice as to the best way forward or the wisdom of entering or exiting the housing market has tended to erode confidence further.
For many, the Auckland rental property market has, for the first time, become of interest as an alternative to buying.
There have always been identifiable groups occupying rental properties, whether it’s the younger ‘student’ population grouping to reduce costs as they establish themselves; young families unable to meet deposit or mortgage requirements; older residents never having accumulated sufficient capital to become part of the owner/occupier class or those in transit, not feeling they wish to own for their brief period of residence.
There are now two growing groups entering the accommodation market.
Firstly, the unfortunate group who, for whatever reason, are the sad human face of the world wide recession, having lost all or a large portion of their capital assets, finding themselves shut out of home ownership.
The second group are those who agree with those advocating that the recession has not yet affected property to the full extent and that values will decline substantially yet, and remain flat for up to a decade.
This group are selling the family home and entering the Auckland rental property market, investing their capital and waiting to benefit from the predicted decline in prices. I worry greatly for this group as they are, in effect, gambling with the family home.
Lets look at two scenarios:
Scenario 1 Firstly lets assume they are right and that the value of homes will decline over a period. To benefit from this decline, this group must accurately predict the bottom of the market and must purchase before the usual rapid swing upwards which historically occurs.
This is almost impossible to predict accurately and this group may very quickly find values rise to the point where they no longer have the ability to own and they must remain in the Auckland rental property market, or must move, beyond the city confines to less expensive real estate.
Scenario 2 The second possibility, and in my view the most likely scenario, is that we are already seeing an upswing in both prices and confidence and that the dire consequences of the recession, predicted by many, simply haven’t occurred. If this is correct, this group may have already placed their families in a situation where they will need to re enter at a level of ownership, substantially lesser than that at which they chose to leave, or may even find themselves locked into the Auckland residential property market for the long term.
An island nation always has a special charm in the hearts of people who don’t have the luxury of living at such a paradisiacal place. New Zealand is one such country that oozes resplendence at every step. With nearest neighbour Australia, New Zealand is not a part of Australian continent. In fact, the country belongs to the largely submerged continent of Zealandia, which stretches from the north of New Caledonia to the south of New Zealand’s Sub-Antarctic islands. New Zealand is comprised of three main islands besides several other small islands that enrich the topography of the country with some breathtaking views and inspiring scenery.
New Zealand Highlights
New Zealand is blessed with some of the choicest nature’s bounties, with pristine golden beaches, snow-capped alpine mountains, crystal-clear river waters, glacier-fed lakes, and abundant adventure activities you can indulge in. This means the country is agog with tourists all the year round offering numerous opportunities to earn handsome rental income from apartments and other vacation properties alongside some of the most-visited spots in New Zealand.
The inviting kiwi weather is an added incentive to visit the country. The outdoors of the country is ideal to indulge in plenty of activities, like bungee jumping, scuba diving, zorbing, mountaineering, kayaking, surfing etc.
The natural attractions of the country are enough to lure holidaymakers, retirees, and expatriates who look for real estate investment opportunities in the country. In fact, in addition to the vacation property, second-homes are also extremely popular for the property investors due to New Zealand’s favourable living conditions, cost of living, and the rosy projections of the nation’s economy.
If you think that New Zealand is just about adventure sports, think again. For the country has a rich history and tradition of the native Maori people, as depicted through several museums and art galleries. New Zealand also has a rich treasure of flora and fauna wildly found in the National Parks and the Ocean.
The country is extremely well connected with the rest of the world through airways and seaways. The internal transport of the country depends on efficient air, road, rail, and sea routes for a variety of commuters.
New Zealand is every bit a modern country having plenty of education opportunities for lower and higher level of students. All the modern amenities, like nightclubs, discos, pubs, restaurants, cafes, theatres, cinemas etc. can be easily accessed through major kiwi cities.
The nation’s economy is also booming with Agriculture playing a major role in its upswing.
Overall, New Zealand offers one of the best places to invest in real estate. Moreover, the British investors would love the place inhabited by majority English-speaking friendly people.
Property Market in New Zealand
In recent times, New Zealand property prices have hit the roof with surging demand from the European investors, particularly the British real estate investors. This has resulted in a slowdown in the New Zealand property market. And this also means that property is now much more affordable for the budget investors. The growth is definitely on the wane and the prices are dropping, yet no one is discounting New Zealand’s property potential.
Though low, the prices are still on a higher plank. For instance, luxury apartments in the capital city, Wellington, are highly priced at £400K+, and over in Auckland, it’s even more. However, small accommodation is reasonably priced in major kiwi cities. For instance, you can make off-plan investment in apartments in Auckland for £60K+.
The Studio Apartments in cities, like Auckland, are a safe investment. They guarantee regular rental income through people who often flock the cities for better job prospects. And with the high expectations from the nation’s economy in the coming years, major pressure has to be borne by the housing industry to feed the demand for more accommodation.
The current period is favourable for any kind of property investment in New Zealand. An astute investor will exploit the prevailing lower prices of New Zealand property, and make a killing in times to come.
The kiwi legal system is identical with the British Common Law system. Resultantly, trading in property is largely hassle-free in New Zealand. Moreover, there is no stamp duty to pay on property purchased in New Zealand.
It seems that owning a property in New Zealand is cakewalk for those who possess the required finance. However, for those who have limited budget, there are lots of financial institutions in New Zealand that offer lower interest rates on mortgages in New Zealand.
The hottest locations for property investment on the North Island include Wellington, Tauranga, and Auckland. The South Island has Nelson, Queenstown, and Christchurch as jewels in the real estate crown.
The potential real estate investors in New Zealand would do well if they hire a specialist to deal with all the legalities and other formalities required for ownership of property in the country. After all, you don’t expect to be ripped off your hard-earned money just because of some negligence on your part.
GRAND VIEWS – An imposing detached residence | 6 large bedrooms | 5 well proportioned reception rooms | 3 family bathrooms | 3 en-suites | Large kitchen/dining room | Separate utility kitchen | Elevated yet sheltered position | Extraordinary views stretching for miles over Weardale. Offers in the region of £545000 For more information please contact our Wolsingham office on 01388 527966 or e-mail wolsingham@georgefwhite.co.uk
Partnership simply is the joining together of two or more individuals or entities in a common undertaking or enterprise.
From an accounting, taxation and legal point of view, you can trade your partnership through various trading vehicles including companies and LAQC’s (loss attributing qualifying companies), joint ventures, special partnerships, general partnership, limited partnerships, or Trusts.
Each trading vehicle should have an agreement created between the partners to the investment outlining their obligations and their rights.
In a company for example, this is done in the shareholders agreement. In a partnership, the partnership agreement.
In a joint venture, the joint venture agreement etc. Which Trading Vehicle? Selecting the correct structure is a mix of analysing many factors and choosing the vehicle that produces the most benefits for your situation.
A brief summary of things to consider would include the following (regarding partnerships from a property investor’s context):
1. The Implications of Asset Protection (including limited liability versus unlimited liability for actions of the partnership, and liability for the banking obligations of the partnership by the partners)
LAQC’s require shareholders that are electing into the LAQC regime to personally guarantee the IRD for income tax.
This can be managed easily for small shareholders, but asset protection consideration that must be looked at.
Also to be reviewed is the question of if your proposed structure is creating wealth outside of a trust, and if so is it possible to both have your losses accessible and contain capital gains inside your Trust for asset protection and avoiding future gifting problems?
2. Flexibility of ownership Can you change partners without triggering depreciation recovered? The answer is ‘Yes’ for an LAQC, ‘No’ for most partnership circumstances.
3. Flow through of tax losses: will the trading vehicle let you access the losses?
4. Flow through of capital gains: will the trading vehicle allow easy access to capital gains at the end of the investment, or do you have to liquidate (for example a company will require liquidation unless it is a qualifying company to access capital gains tax exempt in NZ).
5. Cross border tax considerations: for those investing off shore or cross-border, comlex tax issues could arrise? Like capital gains tax, non resident withholding tax, the implication of the New Zealand Accrual rules and foreign exchange movements, and double tax on dividend income.
In general as specialist property investment accountants, we recommend the use of an expert chartered accountant to help you with these issues.
When looking to purchase a home to live in, one for investment, or any other type of real estate purchase you are likely to run across a bunch of terms and phrases you may not understand. Terms such as yield, leveraging, and others are used quite frequently in the world of New Zealand real estate but are not in the average individuals’ vocabulary. In this article we will take a look at the most common of these terms and how they are used.
Yield – the amount of money earned on a piece of real estate stated as a percentage of the investment. Yield- Interest earned/Amount invested * 100.
Freehold – when the individual has full ownership of the land and all buildings built on that land. The cleanest form of title available in NZ.
Leasehold – when the individual has bought the right to occupy a specific piece of land, with ownership retained by another party, for a given length of time. Some Auckland Property is majority leasehold such as One Tree Hill, Kohimaramara, and much of the Viaduct.
Cash Flow – a term all investors hope is preceded by the word ‘positive’. Used to describe the net amount of money coming in or going out of an investors wallet.
Mortgage – a loan made by a bank or another agency to finance the purchase of real estate.
Conditional Offer – an offer presented to a vendor in which the offer is subject to one or many conditions that need to be fulfilled for the offer to become conclusive. These offers usually weaken the purchaser’s negotiating position requiring them to increase the money offered, in order to gain agreement from the vendor.
Equity – The difference between the current value of your real estate and the amount of your mortgage. Ex: If you purchase a property in Herne Bay for $400,000, and lets assume that that New Zealand property has a valuation of $400,000, with a $300,000 dollar mortgage, your equity in that home is $100,000.
Passive Income- the rent that a investor receives from the individuals occupying their property.
Foreclosure – The next step after a borrower goes into default. This is when the bank of lending agency will take control of your mortgaged land and sell it to make back some or all of the mortgage.
Valuation – the current market value of your home according to a certified valuerNegative Gearing- used to describe an investors position when the rent they earn from their investment does not cover the full amount of the mortgage interest payment plus other outgoings. For example: Assume an investors Auckland rental property gives a rent of $300 and their mortgage interest payments are $350 per week, then they are negatively geared.
Default – a word no borrower ever wants to hear, used to describe a situation when the borrower fails to make payments of their loan Interest Only Loan – This is a loan in which only the interest is paid down and the borrower pays back the full amount at the end of the loan, or refinances on a principle and interest basis.
Fixed Rate Mortgage – a mortgage where the interest rate is fixed for a period, avoiding market fluctuations during the agreed period.
Floating Rate Mortgage – a mortgage whereby the interest rate fluctuates according to the vagaries of the market.
These terms are some of the most common ones that you are likely to encounter while shopping around for New Zealand real estate. The terms used by salespeople are often much less confusing than they sound so don’t be afraid to ask your agent the meaning of a specific word or phrase if you do not understand what it means. Cheers, and good luck in your quest for New Zealand property.
