Highlighting first-home buyer support

Govt needs to better promote its first-home buyer support

The Government estimates recent changes to First Home Grants and First Home Loans will help thousands more first-home buyers every year.

However, Century 21 New Zealand owner, Tim Kearins says most Kiwis don’t even know these opportunities exist and there must be more promotion. His comments follow the government’s Budget 2022 announcement in May, aimed at assisting more first-home buyers. The Government increased the house price caps for the First Home Grant and entirely removed house price caps from the First Home Loan. “Coming up with a sufficient deposit is often the big problem so that’s what these two schemes help to address. They’re not the silver bullet to home ownership but they’ll certainly help many young Kiwis get over the line,” Tim says. First Home Grants give eligible first-home buyers up to $20,000 for a deposit with property price caps having been now raised to better reflect market prices. First Home Loans allow eligible buyers to purchase a home with a five percent deposit with no price caps. Tim says since late last year there have been fewer opportunities for buyers with less than a 20 percent deposit to get finance due to the Reserve Bank’s Loan-To-Value Ratio restrictions (LVRs). Further, banks have been conducting ultraconservative assessments on borrowers, largely because of Credit Contract & Consumer Finance Act (CCCFA) requirements. “Raising the price caps for the loan scheme opens the door to first-home buyers with a five percent deposit who can now purchase at any price if they can afford to service the lending. “The old price caps, like $400,000 for Taupo, saw virtually no properties qualify. It’s great 66 | www.canterburytoday.co.nz

Century 21 New Zealand owner, Tim Kearins.

that many more people and properties now qualify,” he says. The government has estimated that these changes mean funding is now available for approximately 7,000 extra First Home Grants and 2,500 extra First Home Loans every year. Since 1st of June, house price caps on First Home Grants increased in most major cities, including Auckland (from $700,000 to $875,000), Hamilton ($600,00 to $725,000), Tauranga ($600,000 to $875,000), Wellington ($650,000 to $925,000), Christchurch ($550,000 to $750,000) and Queenstown ($650,000 to $925,000). “Yes, interest rates are increasing, but so too are opportunities for first-home buyers this winter. Thousands more now have access to two key government schemes designed to get them on the property ladder. “That’s a positive, but they should be better promoted otherwise that extra support in Budget 2022 will simply be not taken up. “Hopefully securing a mortgage will soon not be as difficult with imminent changes to the CCCFA. House prices are also softening which will gives entry-level buyers more chances and choices,” he says. The Century 21 leader says in recent years first-home buyers have increasingly been locked out of the property market. While it remains difficult, he says, it’s arguably more achievable this winter and that’s one silver lining in the current real estate market. “Rents are at a record high but opportunities for first-home buyers are more plentiful. If a tenant can become a homeowner that will help their lives considerably over the longer term,” Tim says. CT

Many options for frustrated vendors to secure a sale

With New Zealand’s real estate market witnessing more houses being passed in at auction and the number of days it takes to sell lengthening out, Century 21 New Zealand is encouraging vendors not to give up. Rather, property sellers should change tact to make it happen.

“While sale activity has declined, it’s not a buyers’ market yet. It’s a more balanced market, where sellers now face more competition while buyers have more properties to choose from. “It’s requiring patience, but properties in demand continue to make good money,” says Tim Kearins says. Tim says it’s important for vendors to remember that demand remains, with new buyers entering the market every month. “Kiwis still want to buy houses, particularly when they keep reading that interest rates are likely to keep rising as the year goes on. Many buyers see this autumn as a bit of a sweet spot, helped by vendors increasingly motivated to sell before winter sets in,” he says. The Century 21 leader says auctions in a quieter market are less likely to be successful, however that does not mark the end of the road. “Auctions identify cash buyers with preapproved finance, ready to buy today. Even if they don’t buy at your auction, they’re preferrable buyers to work with as vendors know they can at least push play with them relatively quickly,” he says. Price by negotiation in quieter times potentially loses people. Some buyers are reluctant to be the first to name a price, or wrongly presume a property is worth more than it is. “There are plenty of buyers who drive past a house and say that will be $1 million and keep driving. However, the vendor may now be happy to take $900,000. Hence, putting a price tag on it will only help draw more buyers in,” he says. Importantly, for properties to sell, vendors need to hitch their sale price expectations to this year, not last year. Likewise, buyers need make sure their offer reflects the present day, and not undervalue a property on the basis that it could go down further when it may not. “A slower market really tests agents, and you need to make sure you’ve engaged someone who’s proactive and hungry as the internet alone won’t sell it. People, not advertising, sell properties in this type of market. Look for agents who have an active network of potential buyers and listings in a similar price band so they can refer people onto your place,” he says. Tim says it’s worth freshening up the marketing material. This includes reordering the photographs and written spiel to reflect what potential buyers have said they like about the property. “Some vendors think they’ve got an amazing kitchen and so want to lead with that. However, if buyer feedback is all about the outside deck and views, then that’s what you need to accentuate in your refreshed marketing.” He says one of the best things frustrated vendors can do is local research. “See what similar properties in the neighbourhood are making. If they’re still fetching good prices, your real estate agent will remind buyers of that. “If local prices have slowed, however, the cold, hard reality is motivated vendors will need to adjust their sights. Ultimately, you can’t beat the buyer.” CT

We need your help to protect, conserve & enhance Pūtaringamotu Riccarton Bush

Riccarton Bush Pūtaringamotu is a 7.8-hectare remnant Kahikatea Forest situated just 3km from the city centre of Christchurch.

Gates are open during daylight hours and public access during these times is free.

There are nearly 900 metres of tracks to enjoy with it all being flat and accessible to most. As you wind your way through this ancient forest be sure to keep an eye and an ear out for the numerous native birds that call this place home, such as: Kereru/Wood Pigeon, Korimako/Bellbird, Piwakawaka/Fantail, and Riroriro/Grey Warbler. These birds, as well as native insects and geckos are here largely because Riccarton Bush is surrounded by a predator-proof fence.

Pūtaringamotu is hugely significant, ecologically and culturally. It is the largest remnant of alluvial podocarp forest on the lower Canterbury Plains and Banks Peninsula, a forest type that today only covers a tiny fraction of its former extent. It is a key mahinga kai site for Ngai Tūāhuriri, and the place of first permanent European settlement in Otautahi.

The Bush was gifted to the people of Christchurch by the Deans family, with the official hand-over date being 2 November 1914 (when the Riccarton Bush Act was gazetted). The Act seeks to preserve the bush for the benefit and enjoyment of the people of Christchurch. This is achieved through vigilant stewardship by the Riccarton Bush Trust and the operational staff.

The Riccarton Bush Trust is charged with protecting and enhancing Pūtaringamotu/Riccarton Bush as well as promoting its natural and cultural heritage. Putaringamotu/ Riccarton Bush is a very special place and gets over 75,000 visitors each year. Areas of the boardwalk are starting to fail, and the concrete paths have become displaced and uneven and are creating a tripping hazard. Our interpretation and signage are dated and there is very little to inform and educate our visitors on the cultural significance of this very special place. The Trust has partnered with the Christchurch Foundation to raise funds for one of the biggest projects since the predator-proof fence was installed.

The scope of the project is to: • Integrate Ngāi Tūāhuriri narratives, values and associations with

Pūtaringamotu/Riccarton Bush through design, art, entrance experience and interpretation • Upgrade of the track system and infrastructure • Develop areas such as the Grove to support larger groups visiting

Pūtaringamotu/Riccarton Bush • Provide interpretation to educate, engage and encourage participation

This special place, this link to our past, with its unique sights, sounds, smells, culture and history must be protected and conserved for the people, not only of Waitaha Canterbury but all of Aotearoa. Pūtaringamotu/Riccarton Bush is a place of living history a gift to future generations and it must be protected.

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