LEVIN, KAPITI to Wellington PROPERTY REPORT

June--- July 2010

The Property market in the Horowhenua is down still and in no way compared to Raumati or Kapiti where properties are also slowing as owners are worried about the financial markets overseas. Levin properties and building starting to slow down with average home prices around $200,000. Growth has slowed but this is due to the uncertiainty of the mortgage market as interest rates rise. In its hayday there were over 300 propeties sold each quarter but now its changed. The Horowhenua ia a retirement town. Lifestyle blocks are also not being sold and the increased building costs will put off people who want to buy vacant lands intending to build? In Wellington Apartments vacant are increasing which will cause rentals to drop in price as at July 2010

Apartments in Wellington July 2010

While other main centres have a condo and apartment shortage Wellington is the opposite. Some realty agents are offering two weeks' free rent and even a car park to entice tenants to rent and it will keep on going as the rental market costs have escalated out of proportion.. There were over 400 vacant apartments on Trade Me , with many more being developed as those with properties turn them into apartments to get more for their properties. They are not selling as a single unit even houses where some owners sell as unit titles so their can be 4-8 titles in one house.

Trademe on the 8th July had 1182 rentals in Wellinton & in Kapiti 132. The 326-unit Soho apartment block in Wellington Central, 10/74 Taranaki Street, Soho Apartments units are one- bedroom 40sqm apartments, which were sold off the plans for prices start at $224,000 range and a 46 sq m sellinmg at $299,000 with 2 bedrooms and one bathroom. A 3 bedroom 59sqm is being sold for $575,000 but no car park which is what many buyers want now. With a sq m of $7000/m2 is expensive & remaining apartments are advertised as offering Body corporate fees and rates paid by the developer for the first two years! Or if you want to rent the apartment out, the developer will guarantee a net rent of 7% for two years! They do have a gym & leisure centre complete with 18 metre heated lap pool, exercise area and changing rooms to entice buyers.

For small businesses wanting to borrow its not a good time. If property values are down then banks will not lend on loans for businesses and this is the sign of worse to come for small business owners relying on being able to boost there business. What amplifies this is the Reserve Bank's decision on June 10 to put up the OCR ( Official Cash Rate).New Zealand businesses will see business costs increases while many will expect their prices to increase.

With many losing jobs in the city and of course the slow going in the winter spell all adds up to slow rentals & sales so the market is not good in Wellington. 2 & 3 bedroom apartments are selling for anywhere up to $300-540,000 in downtown Wellington and those looking for a bed sitter of 20 sq m =$120,000 is the norm for such a small apt.

The problem with apartments as against apartments overseas in say Thailand they are missing balconies and are normally reconstructed office complexes sold to turn into apartments. With this in mind one does not have a garage to house their car and those who do have vehicles have the headache and expense to find overnight parking for their vehicle. With many overseas owners of even kiwi who travel frequently they have this problem. The other factor is that apartments are far too expensive for what one gets and the costs must fall. As with everything going up their becomes a time when they drop and we are nearing that now. Corporate fees up to $75 a week with rates and management fees can bring one back into paying a % rent after owning the apartment.

The property market fell this year after the government tightened the loopholes around property investment tax. The House market also has slowed but this is normal for winter time but also because buyers are sceptical moreso now at what the interest rates will be and if they can service their loans in the future. With household costs increasing although gasoline has dropped we seem to be living in hope at the moment.

MORTGAGEE SALES RISING JULY 2010

• Household and external debt are still high. 8 properties per day under mortgagee sales in NZ as at July 2010 and this will continue. 121 registered mortgagee sales in February, 246 registered mortgagee sales in April 2010 & in July 343 mortgage sales that really is around 24% of total sales of real estate being mortgagee sales. Manawatu has approx 22 sales per month?? This is not the end but the start as costs increase and homeowners find it harder to make ends meet. Electricity and vehicle costs just increased and rents will rise due to the governments inability to stop hikes. Buying a mortgagee property sale is another matter

WHAT NZ NEVER LEARNT WHEN IT OPENED ITS DOORS:

If the Crafer farms all 16 of them are sold to CHINA then this will be the start to the end. Why does our government allow this to happen--make them lease the land and let it stay in Kiwi hands-- try buying this amount of land 5000 hectares in China or Thailand or Asian countries??? [ Crafer Farm deal ]

Before NZ allowed overseas migrants to arrive it should have put in place measures to protect the Kiwis & NZ at the time. Again I refer to Thailand and how this country was not affected by the subprime crises and who got thru OK to still be a powerful manufacturing base for world companies. Heres what we should have done then. Migrants wishing to come to NZ and open companies must have 51% Kiwi ownership in their companies. They cannot buy land under there name hence preventing rampant speculation which resulted in subdivisions by many overseas migrants and houses at inflated prices as it is today. Instead we should have put into place where migrants can only own 1 acre of land but must invest $1m in their housing etc on this land-- they then own this land outright. We see today Hollywood buyers are buying South Island stations at any price?? again inflating valuable land in NZ. Again Thailand only allows 1 rai or 1/2 acres and has succeeded in safeguarding their people. It now meant foreigners can not speculate on land unless they have a Kiwi partner and director and then keep the money for themselves. It also kept the properties at a reasonable price and stopped the escalation of goods and services like plumbers etc asking exhorbitant hourly rates. Look at any Chinese family or market gardener in NZ-- they only employ their own?? There would also be no need to have so much red tape, and the departments that have been created that brings nothing into the economy. The status quo is maintained and the government would not be in deficit as it is now. BASICALLY WE HAVE PRICED OURSELVES OFF THE MARKET AND THERES NO STOPPING UNLESS WE HAVE A DEPRESSION.

NZ on the other hand opened their doors using such excuses as we need the expertise etc and to stimluate growth. Thus tradesmen went to Australia and things started to spiral. We opened our doors and allowed not just rampant speculation and allowed amny into our country even refugees that others wouldn't take who also give back nothing. Their is no return until a depression comes about to start things off again and this must happen. Now what many Kiwis are unaware of is that those from USA and UK etc also brought with them expensive vehicles, antiques and collections from art to coins to jewelry and could now use these convertible assets to gain more funds theyt wouldn't have got in their own countries. Now think of a UK family bringing in 2 cars: one a Jag and the other a Ferrari. Sell the Ferrari and you have enough money to buy a house or near off another house. The govt never even saw this until once again everyone got on the bandwagon and cars, trucks etc were purchased overseas and we were flooded until the doors closed in 2008. In the meantime these immigrants start companies and keep their money and only employ as when necessary but its does nothing for the average New Zealander.

BORROWING FORMULA:[ HERES AN EASY WAY ] [ Crafer Dairy Farm Story ]

NZ companies are moving from NZ as it is too costly now to setup here!!!!!

[ Borrowing Guide $$$ from your Bank ] [ Property Report May 2010 ] [ Banks & Subprime Mortgage ] [ Failed Finance Companies July 2010 ] [ Finance Report 2010 ] [ Property Report May 2010 ] [ Buying Mortgagee Property Tips ] [ Kiwisaver good or bad Providers ] [ Bank Lending Report 2010 ]

WHY ARE MANUFACTURERS & BUSINESSES LEAVING NZ: [ Read the story ] The issues are economics nothing else and many a time the owner is blamed for moving when in fact he has no say in the matter otherwise he will go bust. However read the reasons why NZ has lost the plot ---[ Compare to Thailand ] & why more factories are heading abroad now. It makes sense.[ Check WHY THAILAND ] is better for Manufacturers & any Kiwi Company. Why NZ is lost [ NZ Deficit increases ] Yes we owe money????? [ Government $250m a week borrowing ] [ Kiwisaver ] [ Kiwisaver good or bad Providers ] [ Transmission Gully Impact costs ] [ NZders lose out ] [ Electric Power Increase ] [ Benefit cuts good or meaningless ] [ Family budget ] [ Quit smoking-heres how ] [ Truck panel & Paint ] [ World population exploding ] [ Retirees new visa over 65 ]

"Horowhenua District Council needs a reshuffle to survive as Levin is dead "

LIST OF PROPERTY CONTRACTORS IN WELLINGTON / HOROWHENUA [ House & Property Contractors ]

NZ 2010 ARE WE HEADING FOR RECESSION AGAIN [ NZ- lost ] [ Kiwisaver good or bad ] [ NZ- deficit ]

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