Formerly trading under a Ray White franchise in Parnell, the team has today commenced introducing the Harcourts and NAI Harcourts brands along with Harcourts’ world-class systems and products in addition to sharing the news with their clients.

Directors James Lee and Rosh Daji say Harcourts is a New Zealand success story they wanted their company to be part of.

Harcourts Parnell senior management, from left, James Law, Rosh Daji and James Lee

“Harcourts is achieving excellent growth domestically and globally, they recently added an exciting new international network via their joint venture with one of the world’s largest commercial property groups to form NAI Harcourts, and from our observations they have industry-leading technology, training and support amongst other things,” the pair says.

“With big plans across both the commercial and residential parts of our business we recognised these advantages would be of huge benefit to our team and to our clients and are confident joining Harcourts/NAI Harcourts will be a great affiliation to bring us to another level.”

As Mr Lee explains, the new Harcourts Parnell office, located at 2 Heather St, boasts a multi-cultural team of 35, including top commercial sales and leasing specialists and business brokers along with high-performing residential sales consultants and property managers.

“With award-winning residential sales consultant Rosh Daji now becoming a Director we have a stronger focus on growing our share of the residential property market and having recently promoted one of the country’s top commercial sales consultants, James Law, to be an Executive Director and lead our top-performing commercial leasing team we have ambitious plans in that sector too.

“In addition we are determined to maximise my strong Asian network and the global networks of Harcourts and NAI Harcourts, with the ultimate aim being to have an internationally-operating office that is one of the top in town.”

Harcourts New Zealand CEO Hayden Duncan says with Harcourts’ key focuses including growth in Auckland and in the commercial property sector he is delighted to welcome NZ International Realty Ltd and their team to the group.

“Having had interest from a number of real estate companies operating in the Parnell area we felt James, Rosh and their team were the best fit with the Harcourts culture and would also add significantly to our group.

“The location of their office in the high-profile suburb of Parnell and the breadth and depth of their team is a great complement to our existing network and we’re particularly pleased they have a strong commercial team to help continue the strong growth of the NAI Harcourts brand.

“In turn, clearly they have identified Harcourts as being the best option to take their business forward with, which is great endorsement of what our group has to offer and where we are going.”

However, says Harcourts Africa CEO Martin Schultheiss, proper planning can bring it closer, and one of the most important elements of that planning should be to pay off debts – including home loans – as early as possible.

“The Association for Savings and Investment (Asisa) calculated earlier this year that the average monthly pension in SA is less than R3000, and advised that people should keep working for as long as possible to preserve their capital instead of using it to fund their retirement.

“It also said consumers should use any spare cash while they were still earning to pay off debts and then invest more for retirement, even if this meant deferring their material aspirations for several years.

“And we would like to add that following this course will also enable homeowners to derive the most benefit from downsizing to a smaller property, which has become something of a staple in retirement planning.”

Schultheiss notes that the housing crash of 2008 and 2009 was particularly tough on the upper end of the market to which many 50 and 60-somethings had already graduated. “This narrowed the gap between the upper and middle markets and in many areas still means that smaller homes are now not all that much cheaper to buy.

“In addition, many homeowners borrowed heavily against the equity in their large properties during the last boom and increased their mortgage burdens, making it even more difficult for them to make a profit on trading down now.”

Nevertheless, he says, it still makes sense to downsize. “In fact we suggest that people make the move as soon as they become empty-nesters. Middle-aged homeowners spend between 20 and 50% of their incomes on housing costs and most can achieve considerable savings by moving to a smaller property that is cheaper to run and easier to maintain, even if their bond repayment is not that much lower than before.

“These savings can then be put towards paying off the property and other debt so that they are ‘free and clear’ when they do retire, and can enjoy a better quality of life in their later years.”

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So says Harcourts Africa CEO Martin Schultheiss, who suggests that the authorities also look at ways to directly subsidise the mortgage repayments on homes in the lower price ranges.

“One possibility,” he says, “ would be to divert some of the taxes specific to property ownership back into a subsidy scheme for first-time buyers below a certain threshold. These taxes include the transfer duty payable on the purchase of properties costing more than R500,000, the capital gains tax payable on some property sales and even the municipal property rates payable by all homeowners.”

Estimates of the national average house price, he notes, currently range from around R550,000 to almost R800,000, “and to buy even at the bottom end of this bracket, prospective homeowners would be contemplating a monthly bond repayment of R4800, assuming they could raise a 10% deposit to start with.

“Now the mortgage guarantee scheme makes it easier for people who can afford that amount to get home loans, but it does not address the twin problems of lack of affordability and lack of stock in the lower price ranges.”

However both problems could be alleviated, says Schultheiss, by introducing a mortgage subsidy scheme that would bring more people into the affordability net, and stipulating that it only applies to newly-built homes.

“This would stimulate the private sector development in the affordable housing bracket that the government is trying to encourage, and have the added benefit of boosting employment because construction as labour-intensive.”

As an added safeguard against misuse, he says, buyers on the subsidy scheme could be restricted from selling their properties for five years, after which they would be free to upgrade – “and most probably start ‘giving back’ to the subsidy scheme by themselves paying transfer tax on a more expensive property.”

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The successful North Shore-based company’s international marketing initiative is focused on presenting a collection of more than 50 residential, lifestyle, rural and commercial property and development projects from around New Zealand to Chinese millionaires and billionaires interested in investing and/or immigrating here.

Harcourts Cooper & Co Managing Director Martin Cooper says the feedback on both the portfolio and New Zealand as a place to invest or live has been very positive and he is confident sales will follow.

Harcourts Cooper & Co Managing Director Martin Cooper in Shanghai showing some premier New Zealand properties to potential buyers, using touch screen technology.

“Prior to our arrival in Shanghai there was already good interest, with local investment groups wanting to get involved and stories in local newspapers and television too.

“The feedback we’ve since had from the hundreds of high net-worth Chinese we’ve presented to so far has been encouraging to say the least,” he says. “They have been impressed with our proactive approach, the specific Harcourts listings we’re marketing and what they’ve heard about New Zealand more generally.

“Encouragingly a number of offers have already been made and there is serious interest in many more of the properties and projects we’ve showcased, with a lot of the potential buyers indicating they would like to take the next step and travel to New Zealand to inspect in person what they’re interested in.

“In addition to connecting with potential buyers we’ve also been building relationships with both existing and potential business partners with a view to working together in the future, so that is another positive outcome from this trip.”

As Mr Cooper explains, in total 57 properties and projects listed by Harcourts from Whangarei to Queenstown and with a total value of around $825 million are being showcased in the multiple sessions being held each day at the New Zealand Trade and Enterprise Shanghai business centre, New Zealand Central. This week Harcourts Cooper & Co has also secured the opportunity to host invited guests at the New Zealand Pavilion at the World Expo in Shanghai so they can learn more about New Zealand and get a taste of our lifestyle.

The properties included in the Exposure Shanghai initiative include Auckland waterfront homes priced at up to $14 million and premium multi-million dollar lifestyle properties in the Rodney District along with a selection of high-value rural and commercial properties and exciting development projects from around the country too.

As he explains, the guest list of more than 1200 VIPs has been built up from various sources including successful Harcourts Albany Sales Consultant Matty Ma (who is originally from China), immigration consultancy Austar and Shanghai real estate development company Sunteam.

“The database we have includes people who already have connections with New Zealand through business or for example through children studying here and also people who knew nothing beforehand about investing or living in New Zealand. All are looking for sound investment opportunities, with some also considering immigration.”

Harcourts New Zealand CEO Hayden Duncan says with a limited pool of local buyers for high-end property and development projects in New Zealand targeting overseas buyers, with clients’ support, is a logical part of the marketing mix.

“Harcourts want to achieve successful outcomes for our clients and that means being proactive and taking the appropriate approach to reach the maximum amount of potential buyers,” he says,” so I commend Cooper & Co for the effort they are making on their clients behalf to do that.

“They have recognised that China is a key source of investment and new immigrants and have put an immense amount of work into this project, being the only real estate company to date to secure an opportunity to use the New Zealand Pavilion at Expo and NZTE’s New Zealand Central, building and connecting with an exceptional database of potential buyers in China and establishing relationships for future marketing initiatives too.”

Cooper & Co’s partners in this special initiative include Luxury Portfolio, Umoview, Open2view, ANZ, Austar Immigration Group, Sunteam and Graphic Detail.

An 18-strong Harcourts team have made the trip to Shanghai to present the properties to prospective buyers, with those who do not speak Mandarin being supported by translators.

For more information visit www.shanghai2010.co.nz

Dwellings across all capital cities experienced a marked reduction in growth rates in the April to June quarter from the 3 per cent per quarter pace witnessed since the beginning of 2009. Adelaide was the only exception with dwelling prices rising by a respectable 1.1 per cent.*

Despite this negativity, CEO of Harcourts Queensland, Aaron Brooks believes that some positivity can come out of this market, especially for first home buyers and those looking to acquire a long-term investment property.

“Properties in most states are now more affordable than they have been recently which will attract new and different buyers to the market, even despite the end of the first home buyers grant,” said Mr Brooks.

“For those thinking of getting on the property ladder now is the most perfect time to buy. We haven’t seen prices like this for months and months and it probably won’t be too long before the market starts to rise again,” said Mr Brooks.

“This market will attract a lot of new entrants which will cause a new level of activity – this should eventually lift the market up again and before too long we should see a return to the growth we’ve become so used to, making now a great time to invest.”

Given the current conditions, Mr Brooks says that properties are tending to stay on the market for longer periods of time – however this isn’t necessarily a bad thing as a different set of buyers may be attracted to these properties and it may make sellers more aware of how the current market is reacting and trending.

*Figures sourced from http://www.rpdata.com/

Business Owner Kaine Wilson says establishing the new office, which is located at 308 Hastings Street, will benefit buyers and sellers, property investors and tenants active in the greater Napier property market.

New Harcourts Napier office

“Having an office in Napier in such an excellent location provides us with a great opportunity to expose the properties and businesses we’re marketing, which obviously benefits the clients we’re representing along with the buyers and tenants looking for property in the area.  Setting up an office in Napier also ensures customers or potential customers have somewhere suitable to meet with our team to discuss their property needs.

“Meanwhile having a physical presence in Napier is obviously good for our profile and provides us with a space in which to build a growing team of sales consultants and property managers to specialise in the Napier area, complementing the teams we already have based in our offices in Taradale, Hastings and Havelock North.”

Mr Wilson says he is excited about the potential of the new office, which is being managed by experienced realtor Greg Currie.

“We’ve recruited an excellent foundation team who are focused on residential sales, leasing and property management and we also have an NAI Harcourts commercial specialist based in the office.  With Greg at the helm and the backing of the powerful Harcourts brand, our systems and support I’m confident Harcourts Napier will be able to deliver top quality service and in doing so gain a strong share of the market, particularly as the team grows and expands into the rural and lifestyle property segments  too.”

Harcourts New Zealand CEO Hayden Duncan has welcomed the establishment of a new Harcourts office in Hawke’s Bay.

“Napier is a key provincial New Zealand centre and I’m delighted to see a new Harcourts office has been established there to better support the existing population and to cater to those interested in investing or moving into the area,” he says.

“I wish the Harcourts Napier team and all of their clients every success.”

Commenting in the latest Harcourts MarketWatch newsletter Mr Duncan says a 10% increase in new exclusive listings in July, when compared to the same month last year, suggests a “more balanced” Spring market might be ahead, with supply and demand being more equitable.

“In terms of the residential and lifestyle markets at least, low interest rates, positive net migration and tax cuts should all provide some stimulus and traditionally Spring is always a more active period for both sellers and buyers.

“Certainly our team is reporting that there’s a strong lift in the amount of people preparing to put their properties on the market in the months ahead, with many already booking advertising campaigns,” he says. “This will be welcome news to buyers, many of whom have been unsatisfied due to the limited supply of quality listings in recent times.”

Mr Duncan says Harcourts’ figures show that across the country the market is performing considerably differently within the various locations and sectors but overall the total volume of written sales in New Zealand was down in July on the same month last year while the average price was up.

The latter he attributes to competition for what has been a relatively limited supply of quality properties and also to the fact that properties in the mid-upper end of the market, in which owner-occupiers are the majority, have continued to be in good demand but there have been fewer sales in the lower-end of the market, within which investors typically operate.

That’s the word from RentalsDOTcom, the rental property management division of Harcourts Africa, which notes that the average electricity is price in most areas has now risen from around 33c/kWh to 41,5c/kWh.

“But on the other hand,” says CEO Martin Schultheiss, “the tariff hikes are going to make it more difficult for many people to qualify for home loans because the banks take household expenditure into account when evaluating affordability. This means they will have to stay in rental accommodation, which is positive for landlords from the demand perspective.”

The national energy regulator (Nersa) gave Eskom the go-ahead in February to raise its tariffs by 25% from 1 April and in most municipalities this is now being passed on to electricity consumers, adding considerably to their household bills.

“However, to ease the burden, many householders are already looking seriously at alternative energy sources and we would like to suggest that landlords should consider doing the same for their rental properties in order to protect their investments.

“Where possible, they should look at installing solar geysers, gas stoves and other energy and cost-saving equipment to help tenants keep their electricity bills down.

“Although this will involve some capital outlay, we believe this will be easily recovered over the next couple of years because tenant demand for rental units with ‘green’ energy facilities is going to rise steeply.”

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Commenting on FNB predictions that house price growth is likely to slow to single digits later this year, Martin Schultheiss, CEO of the Harcourts Africa property group, says it is clear that lack of affordability is currently a major obstacle to sustained demand in the housing sector.

“And without growing demand, price growth will decline,” he says. “Ours is a market where the greatest need is in the essential buying category, that is, people need an affordable roof over their heads, as opposed to leisure or speculative buying.

“And it is not only essential that greater volumes of affordable units are brought to market for prospective owner-buyers, but also for the affordable rental market, where better stock levels will spur greater investment.”

He says the household sector remains under pressure, with the latest figures showing the ratio of debt to disposable income still at nearly 80%. And while this paints a rather bleak picture for prospective homeowners, especially at the lowest end of the market, it also means that they will be looking for affordable rental homes if they cannot muster the finances to buy their own.

“Developers would do well to take note of this need and adapt development plans to cater for this sector. Although affordability is a common denominator, property investors are also looking for additional features – and developers who want to tap into this market should take heed.

“For instance, investors want compact properties with easy access and hard-wearing surfaces for easy maintenance. Tenants typically occupy units for an average of two years and landlords are keen to keep refurbishment costs to a minimum at the end of a lease period. Therefore, tiled floors are preferred to carpets, for example.

“Investors may also show a preference for built-in appliances and other facilities, such as pre-paid meters for electricity. And of course affordable units with low maintenance requirements would find favour among owner-buyers too.”

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The options need careful consideration, says Martin Schultheiss, CEO of the Harcourts Africa property group. “The benefit of selling is that you make a clean break, while renting out your property means that you will have a home to come back to when the contract period is up – and that hopefully that home will have appreciated in value in the interim.”

For homeowners with a large bond outstanding on the property, however, selling is arguably a better option, he says. “The costs associated with a rental property can swallow a large portion of the rental income, leaving the owner to make up the difference between real rental income and the costs of servicing the bond. And that can be onerous if he still has to pay his own rent – or service a bond on another property – in his new location.

“Costs that landlords have to pay include municipal rates, advertising costs to find a suitable tenant, regular maintenance costs, comprehensive insurance and management fees of about 10% of the monthly rental if an agency is appointed to manage the property on their behalf. It is also prudent to take into account unplanned vacancy contingencies and to set aside enough money to cover all costs while finding a new tenant.”

However, in instances where the outstanding bond on the property is small, the picture looks very different. “In such cases, owners can confidently expect that rental income will cover the costs and contribute to their own living costs. And they may benefit from capital growth during their absence,” Schultheiss adds.

But owners who do decide to rent out their properties are advised to choose managing agents with care. Agents should have a solid track record in property management, says Schultheiss, and should be able to ensure the home is properly maintained in order to protect its value. “They should also be able to advise on realistic rental levels and be able to vet prospective tenants properly  for creditworthiness and reliability.”

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