TelferYoung (Taranaki) Limited
Current | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005
Taranaki Newsletter - December 2005
1 December 2005
Issue 16
In spite of the six year trend shown above there are now signs that the New Plymouth residential market is easing. The market slowed prior to the October elections and, despite November and December traditionally being buoyant house sale months, activity has remained below that of 2004 and the first three quarters of 2005. The low to mid price range remains active, but over $450,000 there is considerable choice available for buyers, who are very cautious. Rising interest rates and falling national business confidence are affecting this section of the market. Our pick is that values will hold more or less at present levels, although well located and presented homes will continue to sell well.
Bell Block is now the growth centre of the city, with a large number of new residential sections available for building, and indications of businesses (both industrial and bulk retail) moving to the eastern side of the city. This will bring improved amenities to the area, with good value growth in the medium term. Inglewood and Waitara markets have also quietened, but values are still rising.
Coastal properties throughout Taranaki continue to rise in value. In 2005 seven New Plymouth coastal properties sold for over $1 million and the demand continues to increase.
Hi, my name is Adam Boon and I've just returned home to work with TelferYoung (Taranaki) in the South Taranaki residential market. My previous experience was in the wider West Auckland lifestyle and residential market.
South Taranaki is of course predominantly rural in nature, and currently the residential market is still buoyant, suggesting a 'lag' in comparison with other areas. Patea is particularly strong, with premiums being paid for properties with sea or river views and for those handy to the boat ramp.
A kind word too for the folk in South Taranaki who approach life a little differently to those further north. Feed back from clients indicates that they value our input over and above the actual number crunching, which makes the job worth while. As I drive south on a glorious spring day, Mt Taranaki postcard perfect in front of me, to the east the mighty Ruapehu and Tongariro, I wind down the window, sniff the air and say 'man its good to be back home'
Insurance: Indemnity Versus Reinstatement/Replacement
Do you know what sort of insurance you have on your house, or more particularly on your rental property? The two options for cover are indemnity insurance or replacement insurance (sometimes termed reinstatement). The two are very different. Replacement is taken as the dollar-per square-metre amount it would cost to rebuild a similar home, and is the basis for insurance on most modern homes.
Indemnity insurance is where the property owner is compensated to the financial position they were in at the time of the loss. The indemnity amount is the market value of the improvements, as assessed by a Registered Valuer, and is taken as the capital value of the property less the land value, described as the Value of Improvements, on a valuation report. The main factor to be considered is the adequate indemnification of the insured, without the figure being over or under-estimated. The owner cannot receive more than the insured value at the time of the loss.
We would therefore advise our clients, particularly those with a rental property portfolio, to check the basis of the house insurance they have, and also to check the dollar amount on the policy. There is a danger of being under-insured if your most recent valuation was some time ago and/or you have made alterations to your property. You must also understand that in the case of indemnity insurance you are unlikely to be able to rebuild the house for the amount insured.
Auckland Or Taranaki - It's No Contest!
A Property Consultant's Perspective by Stephen Hodge, Registered Valuer
There has been much recent discussion in Taranaki, and New Plymouth in particular, of the "South-West Drift"; that is, the move from Auckland to Taranaki. TelferYoung, being property consultants, are able to offer expert opinion on this move - two of our valuers, Adam Boon and I, are recent arrivals from Auckland. I moved here two years ago, while Adam is a returning native.
New Plymouth immediately appealed as being the ideal place to raise a family - the perfect New Zealand town. Just the right size of population, excellent amenities, north-facing surf beaches, golf courses, high quality schooling - everything we loved about New Zealand but evaporating in Auckland as it becomes an international sized city. Property affordability was the driver behind looking outside Auckland. There was no chance of finding a house (as opposed to an apartment) close to the city centre and in reasonable order for under $500,000. Apartment living is increasingly an option for those New Zealanders who have either become used to the concept while living overseas, or who find high quality product now available appealing. But once we found our beautiful house in New Plymouth, for the same price we had just unsuccessfully tendered for a two bedroom attached Mt Eden unit, there was no other option - we were moving.
Now, I'm not one to complain about traffic (you have to make this a subconscious law in Auckland or else it ruins your day, every day) but it is nice to be able to drive across town in the time it previously took to drive down Ponsonby Road. It means you are able to fill your day with several different activities, with travel relegated to transportation between events as opposed to an event in itself.
The move did mean I had to learn a new dialect of New Zealand English: "carshed" and "on appro" were two terms that had me stumped, but now I say "good as gold" along with everyone else. Importantly, when I'm asked if I like it here, or if I miss Auckland I always say the same thing: 'I wouldn't live anywhere else.'
Back issues of the newsletter can be obtained from TelferYoung (Taranaki) Ltd
143 Powderham Street,
P O Box 713,
New Plymouth,
New Zealand.
email: taranaki@telferyoung.com
| Telephone: | 06 757 5753 |
| 0800 VALUER | |
| Facsimile: | 06 758 9602 |
| www.telferyoung.com | |
+ Mike Myers + Ian Baker + Adam Boon + Fintan McGlinchey + Monique Burr + John Larmer
Opinions expressed in this newsletter are of a general nature and should be used as a guide only. TelferYoung should be consulted before acting on this information.