Trelise Cooper marooned in St Heliers; Cheshire's Kohi beachhouse
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Trelise Cooper marooned in St Heliers; Cheshire's Kohi beachhouse
NBR takes a look at what's hot and what's not in this introductory edition of Luxury Property.
The $30 million 'Beachhouse' at Kohimarama, by Cheshire Architects.
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RNZ News
6 days ago
- RNZ News
More people making losses when selling their homes
The number of people losing money on home sales is at the level since 2014. Photo: RNZ / REECE BAKER The number of people making losses when they sell their homes is at the highest level since 2014, property data firm Cotality says, and Auckland sellers are being hit particularly hard. In three months, there was $128,362,612 lost by sellers. Cotality has released its latest Pain and Gain report, which shows the proportion of sellers making a loss or a gain on sales across the country. In the second quarter of this year, 89.4 percent of sellers made a gross profit - 10.6 percent made a loss. This does not include the cost of the sale, such as real estate commission. But in Auckland, the number losing money increased to 15.9 percent. In Tauranga, it was 13.2 percent and Wellington 11.9 percent. Christchurch had the smallest proportion of loss-making sales, at 4.9 percent. Cotality chief property economist Kelvin Davidson said it reflected how much prices had fallen in Auckland, and the higher number of apartments, which were more likely to lose money. The median profit among those who sold for a gain was $279,000. That is well down on the $440,000 median gain recorded during the 2021 peak, but higher than anything recorded before the end of 2020. The median loss was $52,500. Combined, the total gain made by sellers in the quarter was $4.9 billion. Cotality chief property economist Kelvin Davidson. Photo: SUPPLIED Davidson said the length of time that someone had owned a property played a big part in whether they made a gain or a loss. "Almost 50 percent of the loss-making resales in the three months to June had been held for less than three-and-a-half years." Those who made a gain had held their properties for 9.4 years. Davidson said that was the longest hold period for a gain since the mid-1990s. He said the weakness in property values could be encouraging some owners to hold for longer to allow gains to accumulate. "In other cases it may just reflect the fact that in a quiet market a lot of sellers simply have to wait longer for a deal to be achieved. "Indeed, some property owners may also just be choosing to hold for a bit longer if they're uncertain about their job prospects or don't want to pay transactions costs such as an estate agent's commission or conveyancing fees as regularly. In addition, lending restraints such as the loan to value ratio rules may have kept more people where they are for longer." He said investors could sometimes choose when to make a move but owner-occupiers were often driven by life events. It was not always a bad thing to move in a soft market, he said. "You might get less than what you might like for your own house but you may well get a bargain on the next one. "You might come out better off." He said there were hints that some sellers were choosing to take their properties off the market rather than accept a disappointing price. Wellington real estate salesperson Mike Robbers said he was seeing that. He said separating couples would sometimes put a house on the market, and then when offers came in lower than they wanted, one person would buy the other out instead . Standalone houses were less likely to sell for a loss. Almost 34 percent of apartments sold for less than they were bought for. Investors' experience was very similar to that of owner-occupiers, at 10.7 percent of sales making a loss compared to 10.1 percent for owner-occupiers. Investors had slightly larger gains when they made a profit and slightly bigger losses. In Auckland, 17 percent of investors were making a loss. Gareth Kiernan, chief forecaster at Infometrics, said the current downturn was so far shorter than one recorded from 1998 to 2001 and from 2008 to 2012. But he said there were signs that people who bought in the peak might have to hold on longer than in previous downturns to get back to neutral. "It's worth noting that house prices are currently still sitting about 13 percent below their 2021 peak. At the same stage of the cycle, 13 quarters after the December 1997 and December 2007 peaks, house prices were only 2.0 percent and 5.5 percent below those respective peaks. In other words, although the 1998-2001 and 2008-2012 loss-making periods were getting close to ending by this stage of the cycle, this time around we're still a long time away from everyone not facing a loss when selling property. Our current house price forecasts could see people in 2030 who bought at the peak of the market in 2021 still be making a loss if trying to sell. In the context of the NZ housing market experience of the last 75 years, that would be an incredibly long time to still be making a loss." Davidson agreed the downturn was "fairly prolonged". "The current cycle is deeper - in the GFC prices only fell about 10 percent peak to trough. This time they were down closer to 17 or 18 percent, we're three-and-a-half years into the cycle and nowhere near the peak. This has been a deeper and more drawn out episode. In some ways we're only halfway through or even less. "It's taking longer to accumulate gains and I guess it's also taking longer to avoid losses." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
7 days ago
- RNZ News
Buyer beware: extra clauses found added to home purchase
Real estate agents have been caught adding additional clauses into standard sale-and-purchase agreements, which lawyers say could have dire consequences for homeowners. The Real Estate Institute says it has been made aware of some real estate agencies inserting clauses into the Agreement for Sale and Purchase of Real Estate, forcing buyers to waive their title requisition rights and authorise early release of their deposits. Title requisition rights allow a purchaser to request the vendor to rectify defects or issues on the property title before settlement, and if a sale falls through after an early release, the buyer may have no way to recover the funds. This risk is heightened for buyers using KiwiSaver, as the terms for using KiwiSaver funds require the deposit to remain in trust until settlement. The Law Association's Property Law Committee alerted the Real Estate Institute to the clauses that were being covertly added. The REINZ declined to comment. The president of the Law Association is Tony Herring. Photo: 123RF
RNZ News
10-08-2025
- RNZ News
How many home loan applications are turned down - and why?
In June there was $4.6 billion in new lending for property purchases across 7700 borrowers. Photo: RNZ Only a small number of people applying for home loans are being turned away - and usually there is a way to get them across the line in future, brokers and banks say. Loan Market adviser Karen Tatterson said she would normally talk to clients before she set up a meeting to understand their financial situation and whether they were in a position to go ahead with a home loan application. She said in 80-90 percent of cases, people were able to apply. "If they are not then I would normally undertake some planning with them and set out a pathway to get them in that position." That might include setting savings goals and a timeline to get to the point where they would qualify for a home loan. "I would then agree to a check in in a nominated timeframe - say three months or six months depending on their circumstances and agree to touch base with them again for a review. I often do a periodic check in to see how they are going with their plan. "Ironically most people I see or speak to are actually ready to buy. They are more often than not seeking an understanding of and support through the approval process." There was $4.6 billion in new lending for property purchases in June across 7700 borrowers. At Squirrel, chief executive David Cunningham said fewer than 5 percent of applications for a home loan were declined. "An adviser has multiple options so that would likely be materially lower than for a bank. Also, low quality deals would be less likely to be submitted by a broker." He said people were sometimes told to reduce or eliminate their personal debt and buy now pay later, and build their savings. Westpac said when an application did not meet its criteria, the bank tried to work with the customer on ways to improve their chances of success in future. "Therefore, while we can't give an exact number of customers who aren't approved for lending, the vast majority are ultimately approved. The most common reasons home loan applications may initially not be approved are that the customer does not have enough deposit, or doesn't meet our serviceability criteria to repay the loan." BNZ general manager of home lending product James Leydon said the number of applications turned down was low. "We understand how stressful buying a home can be and we want to make sure the experience is as smooth as possible. This includes letting customers know what their likelihood of being able to secure a home loan is, prior to any paperwork or formal application process kicks off. "Having an in-depth conversation upfront prior ensures our home loan partners not only understand the customers' situation at the time of enquiry but also enables them to make suggestions on how a customer can improve their financial situation and secure a pathway to home ownership." Glen Mcleod, head of Link Advisory, said most people he met were eligible to apply, even if they first believed they were not. "When we assess their situation, we explore a wide range of low-deposit purchase options, including support through Kāinga Ora's First Home Partner and the First Home Loan scheme. These initiatives are designed to help first-home buyers with smaller deposits enter the market. "It's also possible to secure a loan of up to 90 percent of the property's value through several banks, especially when clients have a live deal in place and meet affordability criteria. Some lenders may consider 95 percent lending under specific conditions, though this is less common and subject to stricter assessment. "For those just beginning their home ownership journey and who haven't yet saved a deposit, we work closely with them to build a plan. This includes strategies to grow their deposit, improve financial habits, and assess affordability. In these cases, it's rarely a 'no'-more often, it's a 'not yet'." He said sometimes people could be approved with help from family. "Ultimately, fewer than 5 percent of the people I speak with are unable to move forward. That means for the vast majority, there is a way-and we're here to help them find it." Income The income you need to be able to buy a house depends on your circumstances - banks look at things like whether you have kids, how many cars you're running and what other financial commitments you have. As a general indicator, a couple with a joint income of $150,000, two children and two cars might be able to borrow about $900,000. You'd need income of about $102,000 in that scenario to borrow $500,000. Deposit You generally can get a loan with a deposit of 10 percent, although it helps if you have a deal already signed with a seller (with a finance condition). If you're a couple earning less than $150,000 a year, a First Home Loan could be an option - this can mean you only need a 5 percent deposit. Debt Cunningham said it was common to see people with $20,000, $30,000 or $40,000 of debt. But he said it was a problem when the required repayments reduced the amount of income people had available to service the loan. People were often advised to focus hard on paying off debt before they submitted their application. "It might be that you have a flasher can than you need so you might think about trading down." He said a $5000 credit card debt might not be an issue but when there were three or four loans, it could become a problem. "The big thing is what is the repayment That's a deduction from their income." Buy now pay later could be a headache, too, he said. "For people looking to buy a house, it's not a good idea to use." Decent credit Cunningham said banks would also want to see a good credit history. If the applicant had defaulted on a debt or was frequently behind on their bills, it mighrt make it harder to get approval. It helped if there was a good explanation for why it had happened, he said. As part of the process, the lender or borrower would run a credit check that was "very comprehensive", he said. "Make sure you're taking care of all your bills and if there's something missed, make it up as soon as possible." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
