“Potential” can mean many things in houses for sale. That can mean “potential” to create the perfect home, or “potential” to add value and climb the property ladder. It could mean “potential” as a suburb gentrifies or the local school goes up in desirability.
It could also mean “potential” to earn an income from a “home and income” property that comes with a legal flat, a self-contained guest suite or room in the home that can be let to flatmates, boarders, international students or Airbnb guests. Sometimes the potential isn’t always obvious. You may even need a good surveyor or architect to really identify the potential. Write down what you’re looking for to create a shopping list. Then set up a saved search that isn’t too specific. Doing the numbers The dream and reality of potential are two different things. Do-ups can be money pits so you need to do the numbers. What will it cost to buy, how much will the work cost and how much you can realistically sell for afterwards if it’s a quick flick. It’s a good idea to become a spreadsheet ninja and/or get professional input from architects, surveyors, quantity surveyors and others. The more time you do planning the less trouble and cost you’ll encounter. Do-ups Do-ups are as Kiwi as paua and pav. Many young couples jump a couple of rungs on the property ladder thanks to putting in blood, sweat, tears and money to turn around a rough diamond into home magazine tucker. Property investors and traders have taken the do-up to the next level. They know that a clever renovation will a: allow them to have the property revalued and release capital for their next purchase, b: command more rent increasing their yield on a rental property, and c: ultimately result in capital gain. Traders are looking for quick flips and/or cheap improvements that pay handsome dividends. They look for: • Sections that can be subdivided • Walls that can be moved added to increase the number of bedrooms. • Easily added en-suites. One bathroom just doesn’t cut it these days for many buyers. • Kitchens and laundries that can be converted to bedrooms. . • Basement conversions. Worst house in the best street and school zones If it’s an owner occupied property you’re looking for, the potential may be in buying the worst house in the best street or school zone. If you can get your children into a good school then it could be well worthwhile spending time and money on doing a less than desirable home up. Watch the markets Do your homework and know your market so you can spot bargains. Whatever you do keep a beady eye on properties for sale as they’re listed. One buyer’s problem can be another buyer’s potential. So look long and hard at properties that don’t sell instantly. If you can solve the problem that turns others off buying, you might be able to buy cheaply. – One Roof Moving house doesn’t have to be stressful. We have compiled the ultimate moving guide for you featuring the best moving tips to successfully move house. To download the below checklist click here.
Remember to cancel: ☐ Newspaper and/or milk delivery. ☐ Telephone, internet and cable TV. ☐ Gas, water and electricity (arrange a final meter reading). Organise for moving day: ☐ Obtain supply of boxes (the supermarket can be one supplier). ☐ Get packaging tape and heavy marker pens. ☐ Arrange for furniture removal (get quote, confirm time). ☐ Arrange care of your children on moving day. ☐ Make suitable arrangements for any pets. ☐ Arrange transit insurance and contents and fire insurance for your new home. ☐ Organise shifting times with the purchaser of your old property and the previous owner of your new one. Notify your change of address to: ☐ Bank, credit card and charge card companies. ☐ Post office for redirection of mail. ☐ Elections Registrar. ☐ Registrar of motor vehicles and drivers license. ☐ Tax department. ☐ Insurance companies. ☐ Hire purchase or finance companies. ☐ Investment companies. ☐ Local council. ☐ Clubs and organisations. ☐ Police (if you own and store firearms). ☐ Friends and relatives. ☐ Magazine subscriptions. ☐ Doctor, dentist, accountant, lawyer. Don’t forget: ☐ Clean the stove and defrost the fridge/freezer. ☐ Tidy the yard. ☐ Ensure that the chattels that have been sold with the property are not accidentally packed. ☐ Disconnect all appliances. ☐ Disconnect the TV aerial. ☐ Return any borrowed items. ☐ Throw out items that you don’t intend taking with you. ☐ List valuable items for special care when moving. ☐ Advise removal company of dangerous goods being moved (i.e. ammunition, petrol, spirits, chemicals). ☐ Securely pack all jewellery, money, special documents and papers (i.e. legal, tax, insurance etc). ☐ Set aside items you will need on the day of the move so you can take them with you (i.e. food, drinks, cleaning products). ☐ Pack each room leaving the boxes stacked and labelled with the room they are to be moved to. It is a good idea to write on each box a list of its general content. ☐ Clearly label boxes containing breakables as ‘Fragile’ and identify these items to the removal people. ☐ Pot and pack away plants and cuttings you are taking with you. ☐ Explain your packing procedure to the removal people and be at your new home when they arrive. Do not: ☐ Put breakables or liquid filled containers in drawers. ☐ Overload drawers and make furniture too heavy to shift (too much weight can damage furniture). ☐ Move netting, barbed wire, timber, wood, coal etc without special arrangements being made. ☐ Store perishable goods where they might be overlooked. Make arrangements to: ☐ See your solicitor to sign transfer documents/mortgage discharge documents. ☐ Enrol children in new school. ☐ Coordinate the forwarding of any files from the children’s previous school to their new one. Organise for your new home: ☐ Newspaper delivery. ☐ Telephone. ☐ Internet and cable TV connection. ☐ Gas, electricity and water. The week before moving: ☐ Remind and confirm dates/times/locations for furniture removal company. ☐ Confirm moving in/moving out details and key exchange with your Harcourts consultant. ☐ Say goodbye to neighbours. One last check: ☐ Nothing left behind? ☐ No clothes at the dry cleaners? ☐ No gear stored away from your property? ☐ Electricity, gas and telephone disconnected? ☐ Water turned off and no taps left running? ☐ Windows and doors latched? ☐ Keys with solicitor (if appropriate)? After it’s all over: ☐ Have spare keys cut. ☐ Make an insurance claim if any damage has occurred during the move. ☐ Teach children how to get to their new school. Enjoy your new home and keep in touch. We’d love to hear how you’re going. There may not be the frenzy to buy or sell in winter as there is in spring or summer, but homes sell all-year-round. Here are some tips on how to make your home worthy to buy during the cold snap. 1. Make sure your home has plenty of natural light
If natural light isn’t flooding into your home on open days or when potential buyers view the house, ensure all of your lamps and lights are on. It’ll give your home a lift and make it feel bright, spacious and appealing. 2. Get the temperature right Before the open home and prior to visits from potential buyers, ensure your home is warm. There is nothing inviting about a cold home. Be certain the warm temperature applies to every room in the house, not just the living area. 3. Keep your home nice and dry Dampness and mould will be noticed straight away by potential buyers in winter. Sort out any issues before buyers start viewing. Ensure you have good ventilation and install an HRV system if you’re happy to invest in it before you sell, it’ll dry out your home and remove any condensation. 4. Make sure it’s clean on the outside Get out the water blaster and clean your home’s exterior, paths and driveway. These can develop green slime and dirt in winter. Be watchful, once removed it can return quickly. Inside, remove any marks on your walls and wipe off fly excrement from your ceiling and light shades. Wash any mouldy curtains and wipe down mould on walls. 5. Embrace the season Before people come to view your property, light your fire, set the table and celebrate all the wonderful things about being in the comfort of your own home. People will warm to your home if it feels welcoming. 6. Pick the right time You don’t want open homes and viewings to take place near the end of the day when the sun is disappearing. Ensure they take place when the sun is shining the strongest, bringing out the best in your property. 7. Make a good first impression with street appeal Avoid any trees or shrubs becoming overgrown. Cut them back to ensure good presentation of your home and garden. Have the hedges trimmed, pull out any weeds, fix the letterbox if it is broken, prune and deadhead plants, touch up any bits of paint on the outside of the house. Indoors, fill vases with fresh flowers for some colourful cheer. 8. Appeal to the senses Ask yourself how the home feels – warm? Cosy? How does it smell? Light a beautiful candle and let the subtle scent waft through the home. Ensure you have beautiful cushions on your couch and soft blankets on chairs to give the feeling of comfort. First impressions count. Lay down soft rugs on timber or tiled floors for added softness. 9. Create a welcoming entrance Stand out on your street and have a look at the entranceway to your property. Is it tidy and inviting? Buy some beautiful camellias to grace your entrance or pathway, ensure your berm is mowed properly and paint/fix your letterbox if it needs it. Article by HOMES TO LOVE As any real estate agent knows, even in a red-hot property market, common issues can have an impact on the sale or jeopardise the sale outright. Some problems or issues may need repairing while others might call for an upgrade, either DIY or professionally done.
If you’d like the help tp identify what areas to focus on, here are some key things to consider, according to experts. Getting into the buyers’ mindset When trying to showcase a property in the best possible light, it’s crucial to get into the buyers’ mindset and view the house through their eyes. What’s the property’s current condition, both inside and out? What can its future potential be – and will buyers be able to see it? Does it feel comfortable and clean, ready to be moved into? And, if not, what can be done to improve it? Unless they’re looking for a fixer-upper, most buyers want a home that’s ready to move into right away, and certain problems may put them off or provide leverage for negotiating the price downwards. First impression counts First impressions matter in everyday life, and even more so in real estate. How the property presents to potential buyers can mean the difference between them scrolling past it or placing an offer. From boosting the property’s curb appeal through to decluttering, cleaning up, getting rid of pet odours, and using professional home staging, there are many steps your vendors can take. This extends beyond what’s inside the home: effective real estate marketing also goes a long way in getting in front of the right people, the right way. Repairing and upgrading: How much is too much? It's not always simple to decide how far to go with a pre-sale makeover. In some cases, a new lick of paint and some minor repairs around the house are sufficient. In others, the kitchen or bathroom may be overdue for a remodel. Here’s a good rule of thumb: repairs keep the property’s value from falling, while upgrades can boost the value. In other words, it’s important to fix anything that’s broken – big or small. As for renovations, it often pays to give the property a spruce up before putting it up for sale. Oftentimes, the choice between simple fixes and a more comprehensive renovation comes down to budget constraints. Some key issues to focus on Here are some common issues that, if left unchecked, may make a property less desirable – or even unsellable.
This article was originally published in the 2021 Spring edition of Real Estate. Many properties in New Zealand are being fitted with heat pumps. These are not only great for heating your home in the winter months but can also serve to keep cool in the hot summer season but, like most appliances, they require regular cleaning.
If your heat pump is not pushing much air flow into your home, it could be because your heat pump filter is blocked. As a guide, you should clean the filter every 8 to 12 weeks depending on how often you use your heat pump. It is a very easy process and something you can do yourself. To clean your filters, you will need to open the front panel of the indoor unit and remove the filters. You will see where to place your fingers when opening both ends. The filters slide out and you can take them outside and give them a spray wash with the garden hose or you can give them a light vacuum. Once they have been washed, carefully shake dry and reinsert into the indoor unit and close the front panel. Your heat pump should now be working at full capacity. This article was featured in Renting with Harcourts, Issue 3 2021. Many first home buyers are left feeling mystified and confused by the amount of home loan jargon they’re expected to understand when buying a first home. The sheer amount of information can feel overwhelming, and many are left wondering what it all means. To help simplify things for first home buyers, we’ve unpacked some of the more common – and often most confusing – home loan terms and provided a basic explanation of each.
Conditional approval A home loan pre-approval or conditional approval is the lender’s way of confirming in writing that they will lend to you – and how much – provided certain conditions are met. When you’re house hunting for a first home, pre-approval lets you move quickly and make an offer when you find a home that fits your price range. Deposit Saving a deposit is often the biggest hurdle for first home buyers. Most lenders require the borrower have at least 20 per cent deposit of the value of the property when applying for a home loan (although some lenders will look at lending higher than 80 per cent). Your deposit can be made up of your own savings, KiwiSaver Withdrawal (subject to meeting certain requirements), as well as cash gifts from family or any Government first home grants you may be eligible for. Equity Home equity is the portion of your property’s value that you own. It’s calculated as the difference between what your home is valued at on the current market, and how much money you still owe on it. Loan to Value (LVR) LVR is the amount you want to borrow expressed as a percentage of the property’s market value. The Reserve Bank of New Zealand has set a limit on the amount of high LVR lending – over 80 per cent - that banks can do. Fixed rate vs. floating rate mortgage vs. split loan A fixed rate mortgage means your interest rate and mortgage repayments stay the same for a fixed term, even if interest rates go up or down. Floating rate mortgages shift up and down as interest rates fluctuate. A split home loan is a combination of both fixed and floating interest rates that help you get the best of both – flexibility with floating and certainty with fixed. Low equity fees vs. low equity margin Both low equity fees and low equity margins are charged by lenders to borrowers who don’t have a 20 per cent deposit. A low equity fee is a one-off charge that can be added to your mortgage so you don’t have to pay it up front, while a low equity margin is a higher interest rate charged on your mortgage that may be removed once you reach over 80 per cent equity. Lender’s Mortgage Insurance (LMI) LMI, or Lenders’ Mortgage Insurance, is a one-off insurance premium that you’ll be required to pay to your lender if you’re applying for a loan above 80% of the security value of the property you’re purchasing. It’s an insurance policy that protects your bank or lending institution against any financial loss in the event you’re unable to repay your home loan. Revolving credit or off-set mortgage With revolving credit, your home loan becomes your everyday account, and your loan balance adjusts as money comes in and goes out. To save on interest charges which are calculated daily, keep your revolving credit balance as low as possible. An off-set mortgage works similarly, but uses the money in your everyday and savings account to off-set against your home loan account and reduce the interest you’re charged. Information sourced from Mortgage Express It’s time to sell your home, and you’ve decided to stage the place yourself for potential buyers. That’s an excellent choice – not only does staging tend to facilitate sales, but it can increase the amount of money you get for your property. In fact, some professional stagers estimate that their services boost their clients’ bottom line by up to 10%.
You can try your hand at staging to reap the same financial benefits when selling your home. To make the process a bit easier, here are seven areas to focus on when sprucing up your space: 1. The Living Room People coming to view your home want to know that they can live comfortably in the living room. If the area is empty, it’s hard for them to visualise their own furniture fitting within the room’s parameters. On the other hand, a cluttered room will feel cramped and tiny, which is not what anyone wants while relaxing in the den. So, focus on emptying the excess – everything from overloaded bookshelves to coffee tables covered in magazines. You can leave a few knickknacks behind to make the living room look, well, lived-in. Just be sure that the final product looks like an intimate, comfortable conversation space. Use just enough to show the space’s potential without overdoing it. 2. Kitchen According to both buyers and sellers, the second most important space to stage is the kitchen. It might be an odd choice, because it doesn’t house nearly as much furniture as other rooms. But the kitchen is a huge selling point in your home, and it should be showcased as the best version of itself. So, once again, remove any clutter from your countertops. Instead, showcase up to three small appliances on your countertops. You can keep an accessory or two alongside these items, too — for example, if you have a coffee machine, a canister of coffee can sit next to it. Potential buyers will open cabinets to see how much space there is, so don’t stuff them with the countertop clutter. Instead, sort through it and toss what you don’t need, or pack it up and place it elsewhere during showings. 3. Master Bedroom For the next owner of your home, the master bedroom will become their retreat. Therefore, you don’t want the space to look too personalised to you. You probably painted the area or chose a duvet cover that you love. But if these items are brightly coloured or boldly printed, other buyers won’t be able to picture themselves living there. So, replace any bright colours with a look that’s more neutral. Re-paint the walls and replace the linens if necessary. Once again, be sure to clear any clutter away - this is especially true if you have extra-large furniture that makes your master feel smaller than it is — keep the basics only, and the bedroom will appear spacious. 4. Bathrooms Another huge selling point for your home — the bathrooms. Whether you have one or ten, each one should be staged with care to show them off as luxurious retreats, which is what buyers are looking for. Once again, you’ll start by removing clutter from countertops and organising your bathroom bottles so that storage seems sufficient. Then, you could make a few swaps to make the space appear swanky. New towels and updated cabinet hardware won’t break the bank, but they’ll make a huge difference in the eyes of potential buyers. 5. Dining Room An empty dining room will look dark and unwelcoming. On the other hand, a simply staged space will show it off as a comfortable place for friends and family to gather. Start by ensuring you have the right-sized dining table — something too big will make the space look extra-small. But you don’t want the room’s dimensions to dwarf your table either, so add a leaf or pop a new tabletop over your piece’s base to make it proportional. Finish the project by either setting the table or placing a centrepiece on it. No matter what you do, make sure the final look is inviting. Otherwise, potential buyers won’t be able to envision themselves enjoying meals within your dining room. 6. Additional Bedrooms The master bedroom should get the most attention, but the rest of your bedrooms will need attention pre-sale. Start in the closets to reorganise clothes and remove any clutter — every storage place should appear to have ample space. Then, you’ll want to neutralise the decor again. And, if you’re using extra bedrooms as catch-all rooms without an intended purpose, give them one while staging. For example, put a desk in one guest room, so it shows as an office, or rebuild your child’s crib to present a smaller space as a nursery. 7. Exterior Spaces Finally, don’t forget your home’s outdoor spaces — the first that potential buyers will see is the front of your property, after all. An easy way to figure out how to improve your kerb appeal is to park your car where realtors will. Get out of the vehicle and scrutinise the appearance of your place. From there, you’ll be able to pinpoint what needs to be done. For many buyers, a power wash is in order to make the home’s facade, the driveway or both appear to be sparkling. Weeding garden beds and adding some greens could further beautify your abode. There are so many ways to improve your property’s kerb appeal — choose a few and revolutionise the look of your home from the outside in. No matter how you choose to stage your place, the effort is always worth it. So, take the time to de-clutter and lightly decorate, and you’ll see just how many rewards — and how much of a profit — you can reap from the process. |
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