The following tips will help you get a good indication of how much or how little you’ll need to spend on your new property should you sign on the dotted line.

The roof over your head needs to be a good one

It can be costly to replace or even patch a roof, so be sure to check its condition. Look for signs of leaks in the attic/roof space and ask when the roof was last replaced.
Keep an eye out for rotten wood as this may be an indication that renovations will be required and these costs will need to be built into your budget.
If you can spot any cracks in the guttering the property may not have good drainage. If you can, pop back on a rainy day so you can see how the guttering and roof perform, and that the property drains quickly.
During the 1990s, a number of homes were built that could not withstand New Zealand weather conditions, so check that the property you are viewing is not one of them. There are a range of claddings associated with leaky homes so visit www.consumerbuild.org.nz for all the information.

Room by room

In each room there will be specific things to check and some rooms will score higher than others. The kitchen might be celebrity chef worthy, while the bathroom is bordering on a health hazard. There will always be the need to compromise, but make sure you’re not compromising on key features that could end up costing you in the long term. Have a clear idea of what upgrades are urgent and necessary versus nice-to-have.
Check the wiring and ask how recently it’s been replaced. Look out for tell tale signs of mold. Kitchens can be particularly expensive to renovate so keep an eye out for anything that might be faulty. Check whether your own appliances will fit if you’re bringing them with you.
In bathrooms, turn on the taps, turn on the shower, and flush the toilet. Lack of water pressure can indicate an issue with the property’s water heater. If you notice odd noises or strange smells, they could be a sign of plumbing problems. Check for bubbling paint or cracks which could mean water damage or dampness.

A warm home is a healthy home

A warm dry home is not just a nice-to-have, it’s essential for good health. Look at the insulation and note what kind of heating the house has. Is it positioned well in relation to the sun? Are windows double glazed? EECA have a good checklist of things to keep to an eye out for.

Your checklist is your friend

It’s hard to keep track of all the things you need to check, especially when you’re seeing one property after another, so keep a list. This handy checklist is useful to take with you on the open home trail so you can rate the rooms and make notes.

An inquisitive mind will pay dividends

Ask questions: This is a good place to get ideas of questions to ask, as well as other checks to carry out when you’re at open homes. It’s also a good idea to have houses checked over by a professional builder - there is a small cost involved, but it could end up saving you more down the track.

Happy house hunting!

We want to hear from you

GoodHome should be an enjoyable and worthwhile place to visit filled with information that helps you to be the smartest homeowner you can be. We want to hear about anything you found useful or anything you didn’t, and anything you want to see more of that would help make this the perfect site for you - email us at goodhome@bnz.co.nz

This information is for general information purposes only. To the extent that it contains financial advice, it does not take into account your particular financial situation or goals. BNZ recommends that you seek advice specific to your circumstances from your financial adviser.

The open home trail: How not to make a decision that costs you.

DIY Concrete Stools
Keep reading

In the lead up to summer last year I wrote this article on getting ready for outdoor living. In addition to choosing the right furniture, I talked about creating a comfortable and stylish outdoor room by incorporating a sofa into your space. In this issue I’m going to give you some different options, including a fantastic DIY alternative that Cocksy has built.

Design Warehouse in Auckland have an extensive selection of outdoor sofas. These include modular options which work well in that they allow you to reconfigure seating to suit the occasion. They also have several collections which are made from both reclaimed and distressed Teak. The beautiful designs are contemporary with a rustic edge, making them well suited to both new and older, weathered decks and outdoor areas.

Amalfi Teak Collection

Platform Collection

For those who love colour, Auckland-based outdoor furniture company Jardin offer a range of products to brighten up your exterior space. Their primary brand is Fermob, the French outdoor furniture manufacturer that creates innovative, clever, practical and fun outdoor furniture. Check out their collection of lounge and casual pieces here.

Sixties Range

In addition to boutique stores, it’s also worth checking out some of the bigger chain stores, such as Harvey Norman, where I found this stylish option.

4-piece Outdoor Lounge Setting

For those whose budgets don’t stretch far enough for a new outdoor sofa, why not consider a DIY alternative? In this issue GoodHome contributor Cocksy shows you how to build your own beautiful, rustic style sofa. Perfect for creating a cosy and welcoming outdoor retreat, you’ll find step-by-step instructions here. Teaming up with the beautiful Auckland interiors store Indie Home Collective, I show you some styling ideas to complete the look.

These products can be purchased from Indie Home Collective, either in store at 51 Nuffield Street, Newmarket or online:

Edison Cushions (Diamond, Stripe & Kilim – 2 x sizes)

Milford Moss Stitch Cotton Throw - Natural Stone

Concrete Cube Stool/Table (2 placed side by side)

Retro Armchair – Black

Moroccan Bag with Leather Handle

The Beach People Round Towel – Paloma

Black Planter & Cactus – Purchase in store only

This article is intended as a general discussion only. BNZ recommends the recipient get independent advice. The views expressed are the writer’s own and do not necessarily represent those of BNZ or its related entities.

Creating an Outdoor Retreat

The term ‘home equity’ has become a bit of a buzz phrase.

Property values have increased around the country, and many New Zealand homeowners will be wondering what this all means for them. Let’s break it down simply.

What is home equity?

Home equity is essentially the total value of your home, minus what is owed to a lender. Most people purchase property by saving up a deposit (a share of the total cost of the property) and borrowing money (a home loan) from a bank or other lender to cover the rest, which is then paid off over an agreed period of time. Equity is what you’d walk away with if you sold up and paid off the lender.

The equity you have in your property could increase over time as you pay back what you’ve borrowed, or as the value of your property increases. Equity is an asset – think of it as the share of your property that you truly own.

It’s worth noting that the council capital value and the market value of a property are often different – the council valuation will remain the same for the duration of the 3-yearly revaluation cycle but the property market fluctuates regularly, and ultimately it’s the market that determines the true value of your home.

What is a CV and how does it affect my mortgage?

Capital value (CV) is the value assigned to a property by the council to calculate what share of the region’s rates the property owner must pay. CVs are based on the value of the land the property sits on, plus any ‘improvements’ made to that land – for example, a house. Usually, the higher the CV, the higher the rates.

CVs are typically ‘desktop reviews’ (not involving a valuer actually visiting your property), and look at surrounding properties and recent sales data to inform a change in value.

The council valuation of your home is important because it’s one of the factors a lender could take into account when determining the value they will lend against and ultimately how much you can borrow.

Why does equity matter?

In a nutshell, the more equity you hold, the better your position when it comes to negotiating with lenders, at the time of new borrowing

In October 2013, the Reserve Bank of New Zealand (RBNZ) put restrictions (LVR restrictions) on lending to potential homeowners who have a deposit of less than 20% of the value of the home they wanted to buy. For banks, these restrictions mean that only 10% of the bank’s lending for new home loans can be given to customers with a 20% deposit or less.

It’s a measure designed to support the stability of the financial system, but it can make it more difficult for borrowers to get a loan. Find out more here.

Could you get a better deal?

This is where it gets interesting. If the recent revaluations suggest you have a stronger equity position, you could renegotiate with your lender for a better rate at the time you apply for new or additional home lending.

The main thing to keep in mind is that banks are required to record the value of the property at the time the loan was originally taken out to work out how much capital they need to hold for the loan. Capital is money banks (and other businesses) set aside to ensure they can continue to function – in this case, it’s money that’s set aside in case a borrower cannot repay a loan. For every dollar the bank lends out, a certain amount of money needs to be set aside because there is a risk that the loan may not be repaid. The higher the risk, the more capital has to be set aside.

This affects the cost of lending (how much resource needs to go in to a loan) for banks and so they may be reluctant to alter the interest rate unless there has been some new lending or refinancing that allows them to use the “new” valuation.

If you’re thinking about taking advantage of your increased equity, it’s important to make sure that you have the ability to service (pay back) any extended or new lending you agree to. In this same vein, using your equity to reinvest in your asset (e.g. improving the value of your property via renovations) may be better than using It to making discretionary purchases like that flashy new car or boat that you’ve always wanted.

If you are interested to know more, get in touch with us. It doesn’t hurt to look into what your options are.

We want to hear from you

GoodHome should be an enjoyable and worthwhile place to visit filled with information that helps you to be the smartest homeowner you can be. We want to hear about anything you found useful or anything you didn’t, and anything you want to see more of that would help make this the perfect site for you - email us at goodhome@bnz.co.nz

This information is for general information purposes only. To the extent that it contains financial advice, it does not take into account your particular financial situation or goals. BNZ recommends that you seek advice specific to your circumstances from your financial adviser.

Home equity: What is it? And why should you care?

How do you find out which suburbs would be best for you to live in?

Home buyers are familiar with searching for homes on the Internet using real estate listing sites like Trade Me Property, Realestate.co.nz or any number of real estate agency websites.

Just enter the area, number of bedrooms, bathrooms, price, etc and click “Go.”

But how do you really know which suburbs you should be searching in? Which neighbourhoods should you be drawn towards and which should you avoid?

Hometopia has developed a new interactive property search engine - Suburb Sleuth - that does things differently. Buyers can now find which suburbs suit them best according to their lifestyle preferences:

Region (N,S,E,W)
Environment (rural, coastal, urban, etc)
People (Families, singles, seniors, etc)
Style of homes (character, modern, heritage, apartment)
Quality of schools
Access to shopping facilities
Commute time
Price range
Hip factor

You just tick the boxes or adjust the sliders depending upon what factors are most important to you.

Suburb Sleuth’s custom algorithm then whirrs away quietly and, moments later, computes the top 10 suburbs that most closely suit your lifestyle criteria selections. You can then click on each of the suburbs and

Check out homes currently for sale on Realestate.co.nz
Find out local values and sales stats
Download all you need to know about local schools, amenities and real estate trends

All for free.

Suburb Sleuth currently only covers the Auckland area but we have plans to extend the service to all of New Zealand’s cities in the coming months.

Try it out for yourself by clicking here: Suburb Sleuth, you might be surprised at the results.

We want to hear from you

GoodHome should be an enjoyable and worthwhile place to visit filled with information that helps you to be the smartest homeowner you can be. We want to hear about anything you found useful or anything you didn’t, and anything you want to see more of that would help make this the perfect site for you - email us at goodhome@bnz.co.nz

This article is intended as a general discussion only. BNZ recommends the recipient get independent advice. The views expressed are the writer’s own and do not necessarily represent those of BNZ or its related entities.

Suburb Sleuth – the new lifestyle search engine for home buyers

The traditional thought is that summer is the best time to sell your home and that winter is the worst, but is that right?

Sales actually fluctuate less from season to season than most people think. Of course you have to forget the months of December and January when there is very little activity by buyers or sellers because of Christmas and summer holidays.

According to analysis by the Real Estate Institute of New Zealand, June to September (winter) show the lowest number of actual sales, but even then they are only down a maximum of 5% below the average. February to April (summer) is the most active period, with sales up to 17% higher than the average.

With supply and demand being the key considerations, what happens during the year in terms of homes coming on to the market and buyer viewing activity?

The numbers of would-be buyers viewing properties online varies very little from month to month. But new listings vary dramatically.

During summer, number of listings increase to 25% higher than average whilst buyer viewers increase only about 7%. So the competition for buyers is intense and they have a great choice of homes for sale. That can make it tough for sellers.

On the other hand, new listings typically drop about 15% below average during the winter months, but buyer numbers fall only very slightly. This can offer a comparative advantage for sellers and shouldn’t be overlooked.

It’s not just about selling your home of course, it’s about selling it at the very best price. Homes offered for sale during the sunnier months look their very best and often don’t betray their many shortcomings. Arguably more buyers might fall in love with them and offer higher prices during the summer because of that.

The decision about when is the best time to sell is a tricky one. Certainly you shouldn’t rule out winter, especially if you have a home that presents well all the year round. But if you have a home, gardens and pool area that transform themselves beautifully during the summer it will likely reward you to sell then.

We want to hear from you

GoodHome should be an enjoyable and worthwhile place to visit filled with information that helps you to be the smartest homeowner you can be. We want to hear about anything you found useful or anything you didn’t, and anything you want to see more of that would help make this the perfect site for you - email us at goodhome@bnz.co.nz

This article is intended as a general discussion only. BNZ recommends the recipient get independent advice. The views expressed are the writer’s own and do not necessarily represent those of BNZ or its related entities.

When is really the best time to sell your home?

A variety of reports are available to home buyers when they are house hunting. Here are four of the most helpful and some quick tips when reading them.

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Decoding property reports

I love hearing your feedback and while I’m unable to answer all of your questions, I’ve picked out some that are frequently asked.

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Michelle’s FAQ

One of the easiest ways to transform a room is with wallpaper, and with the growing number of styles on the market, the options are endless. Whatever design you choose; whether it be bold or subtle, covering one or all of your walls with wallpaper makes a statement. Because I draw so much of my inspiration from overseas (namely Scandinavia) I thought I’d start by showing you some of my favourites from that part of the world. I’ve then recommended some great local suppliers who are helping make these and other brands accessible down under.

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