Something to Consider

Consider This

Before you buy a new home


You may look at dozens of houses before you buy or only a few. Either way, you can find the right home with thorough research. We look at the important matters to investigate.
Buyer beware!

Before you buy a new home, whether it is not yet built, newly built, or an older home, it is important to research it thoroughly. For most people, buying a house or an apartment is the biggest investment they will make, so it is wise to go into it knowing as much as possible, including any defects or potential problems.

When you purchase an older house you are likely to be buying into some problems. Homes that have been neglected can have problems with the structure, roof, plumbing, electrics and gas, which can pose a risk to the overall integrity of the building, as well as your safety and wellbeing after you move in. Even if the house has been well maintained, you can expect a few matters will need to be dealt with, even if it is simply a need for redecoration.

For newer and newly built homes, the problem of weathertightness failure, or at the extreme end, a leaky building, has been a concern for some home owners. Some homes built in the period from early to mid 1990s until around 2003 have shown failures in construction, design, supervision and material installation. You need to take particular care if you are in the market to buy a home identified as being prone to leaking.

The type of houses most at risk of weathertightness failure are often described as 'Mediterranean style'. Some common characteristics of these houses include:
"Mediterranean style" house

> Flat or low pitched roofs.
> Textured or monolithic claddings (plaster-look).
> Plaster finish carrying down to the ground or deck.
> Deck areas over other rooms.
> Enclosed handrails.
> Decorative fixtures passing through the cladding
> The wall extending past the roof line to form a parapet.
> Internal gutters
> Curved window heads.
> Walls finishing into other walls.
> "Complicated" house
> Use of untreated framing (many houses built from 1997 to 2003 used kiln-dried untreated framing).

Other styles of house with complicated roof lines, complex wall and roof junctions, or also having one or more of the features above are also at risk of weathertightness failure. If the house you are buying contains even one of these features, refer to the weathertightness section which gives guidance on what specifically should be looked for.

When you find a home you are interested in buying, make sure your money will be well spent:

Do your own research into the area and the state of the home.

Before you sign a sale and purchase agreement, make it conditional on getting a satisfactory:

> Title Search.
> Land Information Memorandum.
> Valuation.
> Property inpection.
> Finance.

Property inspection checklist

Before engaging a building surveyor (who is qualified in the building industry and can give you expert advice), carry out your own investigations. It might help you to rule out properties before getting too far through the purchase process.

It is important to be confident that the home you are looking at is structurally sound. Organise a time with the real estate agent or owner and allow a couple of hours to go through this checklist:

> On the outside examine the general condition of the cladding, drainpipes and roof. Look for damaged paintwork, rotten wood, rust, holes, cracks and crumbling mortar, and broken roof tiles.
> Be careful of cladding susceptible to leaking. You will need a ladder to look at the roof.
> Check around the house to make sure the cladding is at least 225mm above the ground (grasses or garden) or 150mm from the floor level to paved surfaces. Check whether the garden may have been banked up against the house over the years.
> Under the house, check the piles. You can check wooden piles by poking a screwdriver into the wood, just below ground level, to see if there are any soft areas. Does it smell or seem damp under the house? Look to see if there have been makeshift repairs on the piles.
> From a ladder, look into the ceiling space. Does the header tank look secure? Does the bathroom fan vent directly into the ceiling space with no outlet for steam?
> Inside, test the floors by jumping up and down to see if the floorboards feel springy or squeak. Does the floor feel like it is sloping? Check for cracks in the walls and windows, or doors that don't close properly. It may be an indication of problems with the piles or settling.
> Does the house smell damp or are there indications of dampness such as stained ceilings and walls, mould, bubbling or stained paint, bulges in the walls and rotting skirting boards?
> Check all the power points are working by using a power-point tester, which you can buy from a hardware store. Take note of problems with the electrical system like scorch marks on power points.
> In the kitchen and bathrooms, check for broken tiles, damp around sinks and showers, mould and missing sealant.
> Check that built-in appliances, for example, the dishwasher and stove, are working.
> Turn on every tap in the house and check the water pressure and any strange noises in the plumbing. Check the age of the hot water cylinder.
> Check for insulation where possible, for example, underfloor or in the ceiling.
> Around the section, check the condition of fences, paving and driveways. Large trees can be a problem sending roots under the house and into drains.
> Look over the boundary fences for any potential issues with neighbours, such as overhanging trees, car wrecking, or noisy dogs.
> If the house was built after 1 July 1992 find out from the council if it has a Code of Compliance Certificate.
> Get a Land Information Memorandum from your local council. From May 2007 councils will be obliged to identify, in LIM reports, properties which are or have been subject to WHRS claims from that date. Properties that have been subject to weathertightness claims through the courts or private actions do not have to be identified.
> Contact the Weathertight Homes Resolution Service to see if a claim has ever been lodged on the house.
> Obtain copies of the original specifications and drawings from your local authority.

If you are reasonably satisfied with your own inspection, and decide to take it to the next stage, it is recommended that you still have a professional inspection.
More help.





Source: consumer.org.nz





Looking out for your Interest

963935 mortgage and money 2



Floating rates to rise next week
All eyes are on next week's Official Cash Rate announcement and what it will mean for interest rates. Our survey of 16 economists show all but two are expecting the central bank to increase its cash rate 25 basis points. This means floating rates will increase pretty much immediately.
However, as this story shows, there economists are starting to express some divergent views on how high interest rates will go this cycle. READ MORE HERE


Click here for all rate changes




GoodReturns 21/07/14





This Months Wellington Property Update

July 2014

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Halina Kuchciak

Experience - Knowledge - Results


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Last months winner was: P Eady of Paraparaumu




Wellington Property Trends


Wgtn Trends

Property values still rising in Auckland while nationwide picture is mixed

The latest monthly QV Residential Price Movement Index shows that nationwide residential property values for June have increased 8.0% over the past year, and 2.1% over the past three months. This means they are now 15.0% above the previous market peak of late 2007. When adjusted for inflation the nationwide annual increase drops slightly to 6.3% and values remain below the 2007 peak by 1.3%.

The Auckland market has increased 12.3% year on year and values are up 31.4% since 2007. When adjusted for inflation values are up 10.6% over the past year and are 12.8% above the 2007 peak.


Andrea Rush QV National Spokesperson said, "The nationwide index is still increasing but the picture around the country is mixed."

"Residential property values in Auckland and Christchurch are still increasing at a similar rate to what they were in June last year."

"While values in Wellington and Dunedin are showing a downward trend this month, as are a number of other provincial centres around the country."

"Sales volumes and home loan approvals (new and existing) are also down considerably at between 15-20% less than at this time last year."


Values in the wider Wellington Region have decreased 0.4% over the past three months. However they have increased 1.8% year on year. Wellington City is down 0.6% over the past three months but is up 2.0% since June last year. Wellington West is down 2.5% over the past three months and 0.1% year on year.

Lower Hutt values have decreased 1.3% in the past three months but are up 1.4% year on year. While values in Upper Hutt increased 0.2% over the past three months and are up 0.5% year on year. Values in the Kapiti Coast District have also increased 1.9% over the past three months and 3.3% year on year.

"QV Wellington Registered Valuer Kerry Buckeridge said, "The region has been fairly quiet, but there has been modest growth in some areas while values in the Hutt seem to be tapering off a bit."

"There is a slight drop in the listings in Wellington which is normal for the winter season and is helping real estate agents to sell some houses which have been on the market for a while so that's positive."

"There is no pressure in the market to drive values along. People are being very careful and cautious with their property decisions. It is noted that average days to sell have now reportedly increased to in excess of 40 which is very high for Wellington."

"In the city however, there are not many good properties under $400,000 which is beyond the means for many first home buyers – especially with the higher deposit requirements imposed by the LVR caps. We are seeing some first home buyers finding ways around the caps, for instance by getting parental guarantees."






07/07/14 QV








If I Were a Borrower What Would I Do?

Fix or Float

Some fixed borrowing costs have increased in the past fortnight so I would not be tardy about locking a
portion of my mortgage up at a three or four year fixed rate.


Thanks to Tony Alexander of the BNZ for his Weekly Comment 26/06/14




Something to Consider

Consider This

The Beehive — Executive Wing

 Beehive Image

The ‘Beehive’ is the popular name for the Executive Wing of the parliamentary complex because of the building’s shape. This is where the Prime Minister and Cabinet Ministers have offices, and where the Cabinet meets.
Beehive design
Sir Basil Spence, a British architect, designed a concept for the Beehive during a visit to Wellington in 1964. In his concept, rooms and offices radiated from a central core. This concept was developed by the Government Architect of the Ministry of Works.
The Beehive was built in stages between 1969 and 1979, when the first parliamentary offices moved in.
The Beehive is 72 metres tall. It has 10 floors above ground and four floors below. It is connected to Bowen House, where many members of Parliament and Ministers have offices, by an underground walkway that runs underneath Bowen Street.
Entrance foyer
This is where Parliament’s Visitor Centre is based. The airy double-storey space features wall panels of New Zealand grown macrocarpa , Takaka marble clad columns, a backlit translucent onyx wall at one end, and opaque glazed walls at the opposite end. The core of the building is decorated with marble floors, stainless steel mesh wall panels, and a translucent glass ceiling.
Banquet Hall
The Banquet Hall, on the first floor of the Beehive, is the largest function room in the parliamentary complex. Guests reach the Banquet Hall entrance from an open marble staircase with bronze balustrades that leads from the ground floor foyer.
The Banquet Hall is a semi-circular space, designed to be big enough to host state banquets with up to 300 guests. On the inner wall there is a large three-dimensional mural by John Boys Drawbridge (1930–2005). The mural portrays the atmosphere and sky of New Zealand using enamel gloss paint on aluminium angles. It is one of the artist’s most significant works.
The décor of the Banquet Hall is dominated by Takaka marble on the lower walls and columns. The tongue and groove floor is made from tawa, a New Zealand native timber, laid in segments radiating from the core of the building.
National Crisis Management Centre
The National Crisis Management Centre, in the Beehive basement, is the Government’s command centre in the event of a major emergency or security threat. The Centre includes kitchens, bunkrooms, and other facilities so that people can support themselves to live and work here for extended periods of time.
Beehive facilities
There are special facilities in the Beehive for members of Parliament and for Ministers. These include several function rooms, a theatrette, swimming pool, and television studio.
Bellamy's, the parliamentary catering service, is based here. Bellamy’s caters for functions for members of Parliament and staff at a number of dining rooms and function venues in the Beehive and elsewhere in the parliamentary complex.




Source: www.parliament.nz





Looking out for your Interest

963935 mortgage and money 2



Hard on its rate change Friday night ASB has rolled out significant incentives to mortgage brokers. It is offering 1% off floating rates for two years and a 50 basis point cut to its fixed rates as well as extending a added commission campaign.

Click here for all rate changes




GoodReturns 26/06/14





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