Pressure building in the housing market means ...

2011 has come and gone — and for many it’s good riddance. It was a particularly tough year for some. The recession, both local and overseas, seemed to have no end.

Hopefully 2012 will be better for those of us who are investors, or who intend to be investors.

We are still battling the ding-a-lings lenders who don’t seem to have a clue about what they are doing most of the time. Even worse, we are obliged to endure the stolid hierarchy of bureaucrats at Council level, some of whom should be whipped across the soles of their bare feet until common sense penetrates.

I am proud to say that my team and I have advised and mentored many investors — guiding them along more profitable paths, ironing out problems, re-organising their financial affairs, (whether property related or in general) and sadly, sometimes acting as grief counsellors in difficult situations. …

Read the rest of Olly’s column at www.OllyNewland.com

Read Olly Newland's latest column — www.OllyNewland.co.nz (click)

Olly Newland makes the case for another property boom — and issues some warnings for those thinking of ‘jumpin’ on in’.
Read his column here at www.OllyNewland.co.nz

I say ‘controversial’ because by golly, Olly has come under fire from some of the anti-property, alarmist ‘Oh-My-God-the-world-will-never-be-the-same’ brigade.

As you’ll see from the title of the column While Mortgage Rates Are Low – Borrow More!, Olly is offering an alternative view to the current ‘crowd wisdom’ of reduce debt reduce debt reduce debt. If you read the column (link below) you’ll see that he’s NOT saying gear up for consumption or to buy flash new toys. Nor is he suggesting anything radical or revolutionary. As an Authorised Financial Advisor, property mentor and consultant he’s offering strategies and tactics for today’s investment conditions.

If there’s one thing Olly has proven, it’s that he’s willing to be a counter cyclical investor. That way lies success.

It hasn’t always been a bed of roses for Olly (Read Lost Property), but Olly is an investor who typifies what Warren Buffett refers to when he talked about ‘being fearful when others are greedy and greedy when others are fearful’.

He’s also demonstrated by his own example the value of leaving the party before the clock strikes midnight. His book ‘The Day the Bubble Bursts’ which warned of the (then) impending property slump, was greeted with similar howls of protest. Until later, when several of his most vocal critics quietly admitted they wished they’d followed his advice … to shed lower quality properties in below average areas, do your best to lock in tenants and, paradoxically, to reduce debt … when many ‘gurus’ were saying the opposite.

But that was then and this is NOW. The market has changed and the strategies to succeed in it at this point are different — the strategies, but not the principles.

Read Olly’s October column with his calls to invest (carefully, prudently) NOW … then, if you’re interested, here’s a follow up five minute audio interview recorded with Olly about some of the points he raised, and (briefly) responding to people he says are ‘hyping up’ fears.

or download an MP3 file here (5 minutes 2.5MB):
Olly Newland – Why borrowing sensibly for improvements is better than paying off your mortgage

© 2011 Empower Leaders Publishing Ltd. All rights reserved.

This may seem a little contrary to popular thinking at present but by being counter cyclical you will have a greater chance of profit and wealth creation than when interest rates are high.

A few weeks ago I spoke to a group about investment. I spoke mostly about seizing opportunities when they arise and, with my usual arm-waving, talked about how the volatility in the market is a great chance for all investors and home owners. I probably got a little carried away (as I sometimes do) because I find the volatility in the market very exciting at times.

At the end of the talk someone in the audience asked me if there were any opportunities when you had a mortgage (or mortgages) to deal with.

The common practice used by most is to apply cash to reducing debt — and not save it for investing. There are exceptions, of course, such as KiwiSaver and the like, but the general rule stands that debt should be paid off first before investment begins.

So the person in the audience, feeling a little awkward no doubt, asked me how he should deal with his debt.

Yes I agreed that money is cheap these days — so why not borrow it and then borrow some more at every chance while low interest rates last?

Some stick-in-the-mud advisers (with respect) say differently. They suggest taking the opportunity of low rates to accelerate repayments of principal and interest. After all, they say, when interest rates fall and you keep up the same monthly repayments, it will have the effect of paying off the mortgage more quickly.

When money is cheap it is easy to get carried away and lower repayments as well … so you have more money in your pocket to spend on other things.

The problem is that principal payments make up such a tiny portion of any loan that it’s hardly worth the effort. Even though it’s true that a component of each payment you make is applied to reducing the mortgage it takes years to make any sort of dent in the amount still owing through your regular payments.

Interest rates are down and ‘down for the count’ … and let me go out on a limb here and say I believe that low interest rates are here to stay for the foreseeable future- as has always been the case in most Western economies for decades and especially these days.

One day interest rates will rise … but that day is far-off — UNLESS, of course, we get hyper inflation. If that happened it would not occur overnight and there would be plenty of time to change course (and, indeed, profit mightily as hyper inflation carries all assets up in value as money devalues).

Home buyers and property investors see low interest rates as a great opportunity to trade up to a bigger and better house or investment and — despite what some say — that is how it should be.

Worrying about future interest rate rises is a hiding to nowhere. Should interest rates RISE it means that the economy is improving or inflation is on its way which means higher wages and greater profits which should easily make up any difference.

The opportunity to get cheap money now carries little threat to buying on tick and loading up some debt — if done carefully — and it can bring great rewards.

My advice

My advice is to borrow more and use the money to carefully upgrade your home or investment property. A dollar well spent in upgrading can return up to ten dollars in profits — and it’s a darn easier way to make money than trying to pay down a hopeless debt.

Put another way, increasing the value of your property is the same as decreasing the mortgage. e.g. if you have a $500,000 house with a $250,000 mortgage then your gearing is 50%. Not bad, but it could be better.

If you spend a prudent $50,000 on upgrading the kitchen, bathroom, or whatever and the property ends up being worth (say) $750,000 (this is pretty easy to do. Ask any property investor) then the mortgage — still at $250,000 against a $750,000 house is now only 33% geared.

Extra borrowings, even at the current historically low interest rates are being covered by rising rents (something I predicted over 12 months ago). Look at the latest figures for the Auckland region. Some rents have risen by as much as 40% … and this is just the beginning as the housing shortage deepens:

Crockers September research (click to enlarge)

Crockers latest research

Also: remember paying off a mortgage has to be done with tax paid dollars. Increasing the value of a property is tax free in most cases. Which one, then, is the obvious choice?

Before embarking on any such plan get your friendly Registered Valuer to give you an estimate on what your property is worth as it stands today and what it would be worth when you do the upgrade you are planning.

Be prepared to compromise to get the biggest bang for the bucks as possible. (This is a big subject.  Contact me if you want to learn how.)

Now is the time to increase your mortgage, NOT to buy ‘toys’, but to reinvest into the home or investment through improvements and ultimate tax free capital gain.

This is not the time to fall asleep and forget the opportunities out there. In fact it’s time to wake up and increase the value of your investment as much as possible … and reduce your debt the far easier way.

I have had countless number of clients who have followed my advice and seen their homes or investments climb quickly in value — outpacing the market easily — even in these quieter times.

A few years ago everyone was throwing money at real estate and just wanting values to go up without any effort  on their part. (No wonder so many came to a sticky end.)

Now a relatively few well spent dollars (borrowed or not) can bring the same rewards with minimal effort. The aim for most renovations is to complete them quickly —ideally inside 4 to 6 weeks. With that it is quite possible to get that gain more quickly and more certainly then by blind speculation or naïve hope.

Time is of the essence. Avoid major rebuilds and stick to once-over-lightly makeovers — then you will see your equity increase in leaps and bounds … as your debt ratio reduces.

And one more bit of advice before you rush out to you see your bank manger: Increasing equity (viz. decreasing debt) requires a fair amount of hard work and dedication on your part. There is much to learn if you are not experienced. With the right coaching and right advice virtually anyone can achieve great results. It takes lateral thinking and the will to succeed

From the files – A real life story

Let me give you a real example from my recent files on just how increasing value creates equity and cash profits.
Sue and Brian, with a small loan from their elderly patents  found a very nice looking 3 bedroom plus wash house brick and tile 1970’s home in the suburb of Glenfield on a reasonably level full site of 620M2 more or less.
Brick and tile are always popular as there is no concern over leaks or shoddy workmanship and so is a full site.  These types of houses are in great demand as they tend to be easier to renovate being made of relatively modern materials.

It was for sale in a very shabby run down state  after being rented out for years.  The suggested asking price was $395,000 and with my advice Sue and Brian put in an offer of $340,000 which was rejected but came back with a counter offer of $370,000.

With my advice a registered valuer was employed who valued the property at $380,000 as is, but with the note that similar fully renovated houses in the area were selling in the high $400’s-to mid $500’s. Brian and Sue put in a counter-counter offer of $359,000 and a deal was finally sealed  at $361,500.  A mortgage of $300,000 was arranged and then Brian and Sue moved into the house and got stuck in. Within 6 weeks ( a little longer than anticipated) a new kitchen ( pre made variety) and bathroom were installed, the place repainted inside and out, floors polished or carpeted a double carport erected (always a good move and cheap), plus new lighting, gardening and minor repairs and major scrub up.
They also turned the wash-house into a study — good move.

Total costs $35,000 plus their own labour.  A new valuation was obtained suggesting $525,000 so it looked like around $100,000 equity or profit was created. Brian and Sue listed it for rent on Trademe and were staggered to get 40 replies within 3 days. This sort of response told them that they had created something a little special so they decided to sell it, which they did within 2 weeks achieving  a sale price of $500,000 clear. Not bad for their first effort and I am sure they will do even better next time  – and the time after.
Indeed as I write Brian and Sue are now onto their second property also on the North shore and if they keep this up they will earn enough to effectively double their annual income.

While it is true that doing up a house while you a still living in it  is not easy, the rewards more than make up for it.

Olly Newland
October 2011
www.ollynewland.co.nz
© 2011 Olly Newland. All rights reserved. See Olly’s books and audio products.

The property market is changing and changing fast. As never before, obtaining sound independent advice is needed to prosper in this changing environment. Get the benefit of Olly’s experience: Click here for details of his Property Mentoring Programme and consulting services.

Olly Newland Mentoring Programme

Olly Newland provides a consulting and mentoring service for people committed to make serious progress with property investments … whether it be buying, selling, holding or troubleshooting.

With more than 45 years in the property game, there are few investors who wouldn’t benefit from his insight and experience.
Olly’s services are impartial and independent of any real estate agent or sales organisation, bank or other lender. Unlike some who purport to offer similar services, he does NOT broker real estate ‘bargains’ (houses, apartments, sections or developments off the plans) nor other related services such as financial planning.
Olly’s style is up front and he offers sound, road-tested advice, robust counsel to help people move ahead with property investment. He is not adverse to using somewhat unorthodox methods to achieve his clients’ goals. (Experience PAYS!) Olly offers a limited number of people one-on-one, totally private consulting and mentoring by phone, email, Skype video and face-to-face meetings seven days a week.

If you’re interested in knowing more, visit Olly’s webpage on Mentoring www.ollynewland.co.nz or email him.

FEEDBACK: Do you agree or disagree with Olly?
Send your comments, criticisms, counter-arguments or any feedback to him by clicking here.

AUGUST 2011: World financial markets react with turmoil due to the US credit rating downgrade and sovereign debt crisis — shedding value and displaying a nerve-wracking volatility that makes many question their investment strategies. What is the way forward? How will these world events affect our local property market? How should investors react — and how should YOU react?

Olly Newland has lived through many such troubled times. While Olly would never say he ‘knows it all’, in this 13 minute audio interview he outlines his view of the current financial crisis, he discusses the ‘change in the times’ brought on by this increased market volatility, what it heralds, and suggests what steps you could take to protect yourself.

Listen here:

or download an MP3 file here (13 minutes 6.7MB):
Olly Newland – How to respond to the global crisis

© 2011 Empower Leaders Publishing Ltd. All rights reserved.

Related: Olly’s book Lost Property relates his experience in previous financial market convulsions and important lessons he drew from those times.

Regards, Peter Aranyi   Empower Education

If you’re lucky in life you can learn from people more experienced that you. This book draws together strategies for success in negotiating real estate and other deals as an investor, seller, buyer, landlord or tenant. Negotiating Real Estate Deals – How to unlock a GREAT deal is an approachable, digestible guide to what works (and doesn’t) in this vital area.  Available as an eBook or hard copy.

Get the inside story on how you can greatly increase your ability to achieve the results you want in a negotiation. Learn about the costly mistakes some investors make when faced with a negotiation – and how you can avoid them. Discover the three crucial variables of ANY real estate negotiation – and how you can use them ethically, responsibly, to your advantage. Find out how to make the best of almost any negotiation by using proven, time-tested, specific and relevant techniques that apply directly to local conditions.

Negotiating Real Estate Deals – How to unlock a GREAT deal will give you practical and useful tools, tactics and procedures, and – more importantly – it will help you develop your own successful approaches to different real estate negotiation situations. You won’t win every time, but you’ll do much, much better if you apply what you learn from this book. You’ll discover how to build your negotiation skills and awareness. You’ll gain knowledge that you will be able to use over and over again, in deal after deal, year after year.

Topics include:

• How to prepare for a negotiation – vital rules to follow every time
• Does it have to be win/lose? How to avoid sour compromise, and play the game ethically
• Why almost any negotiation should be about much more than just price
• Working with real estate agents – how to get them to help the process
• Common tricks some negotiators – and some agents – employ. How to recognise them and deal with them
• Some ‘never break’ rules for negotiation – when buying or selling
• Using the three crucial variables of any negotiation
• Some common mis-perceptions about what works
• Developing your own negotiation style (or styles)
• ‘Haggling’ and ‘bargaining’ versus ‘educating’
• How to avoid being worn down or ground down
• How to keep it from becoming personal (unless that’s exactly what you want)
• Should you lay your cards on the table or keep them close to your chest? Sometimes it pays to be candid.
• When to negotiate yourself – and when you would be better to use an intermediary
• Ploys and ruses, strategies and tactics – using them, recognising them and countering them
• How your tactics and approach will probably vary with the property cycle
• How to identify vendors who are more likely to be flexible or ‘motivated’ – looking for clues without looking like a shark
• How to generate options and alternatives, what to do when it looks ‘stuck’ (sometimes, the most flexible wins)
• Calculating your ‘walk away’ – your real bottom line – and finding theirs
• Understanding how power (or perceptions of power) can shift during negotiation and how to preserve yours
• Negotiating with your existing tenants maintaining the relationship while getting what you want
• New leases – seeing the long term implications of incentives, inducements and exclusivities. Traps for young players
• Negotiating with larger tenants – how to work with them without giving in
• How do you deal with an uncompromising opponent and remain reasonable
• Whose paperwork or lease form? What are the implications of using theirs?
• How you can sometimes make your terms palatable by understanding their need for something you can easily offer them
• The dangers of ‘looking good’, the importance of building rapport
• How you can identify – early – the relative bargaining strengths of each party
• When to reach for a mediator or arbitrator … and how
• Making the most of the offer/counter-offer process
• When ‘flying a kite’ in a negotiation can blow up in your face
• How to say what you mean without backing yourself into a corner
• When to break off talks – really
• Dealing with contractors, professionals or tradespeople under pressure

Order your eBook here (includes printable PDF & ePub versions) Order hard copy here.

LAST WORDS
The best advice I can give you is this:
Find a way to benefit from the experience of others you can trust.
Get them (or their information) into your circle of influence.
If we can help, great. That’s what we aim to do.
Best wishes,

Peter Aranyi
editor, Negotiating Real Estate Deals – How to unlock a GREAT deal

Available as Audio CD set or Digital download:  MP3 files and PDF of manual.

Read a review of the MARKET UPDATE evening.

Having just been to Australia and with the benefit of my own investments there, I have always looked at the Aussie property market to pick trends at home. House prices in Aussie are sky high and $1million buys you little. Now rentals are moving as their market cools.

The natural disasters that have swept Australia have knocked The Lucky Country around. I predict before long the exodus of Kiwis will slow, stall and then reverse.

See The Age: Softening property market, new home sales slow

New Zealand With regard to the local market, it remains (as I predicted two years ago) more or less flat with very little new building coupled by little demand. Why is this? Why are new houses, especially modest new houses, so hard to build?

The answers are simple.

(1) New houses carry a GST component of 15% on every door knob, piece of timber and blade of grass — this makes them immediately uncompetitive with second hand houses — which may only be across the road.

If the Government wants to revive the building industry then this is an area that should be looked at carefully. Some of the actions that could be taken to help first home buyers include a serious effort to provide grants towards the purchase of first homes up to a certain price limit (which would vary from area to area).

There is a ‘Welcome Home’ grant supposedly available from Housing Corporation but it appears not to be actively promoted. I haven’t ever come across one single person who has received one of these grants. It seems likely it was created as a mere political stunt to anaesthetise the masses rather than a genuine attempt to help. (Call me cynical.)

• A cash grant of up to 5% of the purchase up to a certain price limit (which would vary from area to area)
• A subsidised interest rate for the first 5 years.
• The ability to capitalise all or part of the Working For Families benefit to create a deposit. (http://www.workingforfamilies.govt.nz/)
• Making interest payments for first home buyers tax deductible
• Waiving  or substantially reducing the GST content on new home

In many other countries (Australia in particular) not only is stamp duty waived on homes but first home owner cash grants are also available which keep the building industry simulated and thereby helps the economy and the unemployed.

(2) Local council regulations, fees and bureaucracy often stifle development and sub-divisional work. These costs add yet another large layer to an already over-priced product and cld be another area where grants could be given for first home buyers. It is no wonder then that people choose to either buy second hand houses — or rent, which can be the cheapest option of all.

But renting as the preferred option is steadily losing ground. Rents are steadily rising and will, in my opinion, double in the main centres  over the next two to three years. This will have the effect of  pushing people back into the buying mode again, or forcing them further out into country areas where rents tend to stay lower.

Click image to read Crockers report (PDF 289kb)

As evidence of the ‘rental creep’ see the latest market report from Crockers, one of the largest rental agents in Auckland which confirms what I predicted many months ago. It makes interesting reading indeed.

In my view, the times have never been better to consider investing in the rental market. Positive factors include the combination of steady prices, shortages of good stock, rising rents and low interest rates. This combination only happens once or twice in a lifetime, and those of you who hesitate will look back in a year or two, and regret having missed the the boat — yet again.

Recent news tells us that over a quarter of all real estate agents have left the business because of the slow market. That’s part of the property cycle.

NZ Herald: Quarter of estate agents walk out.

This will come as no surprise as listings are down, sales are glacial, and the market is flat. There may be some who think that it serves the agents right as they make a packet out of the market in the good years. That’s a very short sighted view indeed.

If agents are leaving, so will be carpenters, electricians, brick layers, plumbers and a host of other trades who relied on a good property market to make a living. The Christchurch earthquake may have one benefit in the long run, and that is to provide jobs and a livelihood to those in the trades (they’ll earn every dollar) – but that time is some way off yet.

Look at this graph from Harcourts and observe what a treacle-slow market looks like.

Commercial Property

Commercial property is having a somewhat better run than was expected when the GFC first exploded. While it is is true that there are large number of vacant commercial properties around, it is also true that there is a strong investor demand for well-leased commercial properties in the main centres.

Retail properties (shops etc) are in great demand and investors are standing on each other’s shoulders to get in on the act. As evidence of that, yields have steadily fallen typically by 2%-3%. Put another way, good commercial property has grown by 10%-20% in value especially those with strong or diverse tenants.

A small building in Matamata (of all places!) recently sold for a return of only 5.83% (i.e. the price paid was $1.25 million on a rental return of $73,500 p.a). True, the building sold with a bank tenant in place, but from experience let me tell you, banks are not easy as tenants … as no doubt the new owner will find out in due course.

Small industrial properties (e.g. factories, showrooms, mixed retail industrial) are doing very well thank you, but larger industrial premises are still languishing. This is not a good time for investing in these unless they’re leased to rock solid tenants on long leases.

Office space is still suffering (despite experiencing extremely high rent rates) and will continue to do so for some time yet. Many old style offices are effectively redundant. When I started out in this business, offices were great investments. Any one who needed an office immediately needed space for a desk, a typist, as well as a landline telephone, filing systems, photocopiers plus a host of other gadgets. Now many businesses can be run from an office at home, or a much smaller space.

Unless an office investment is cheap, (or luxurious and expensive) and well-leased, be wary of them as investments.

The Property Council of NZ says this about the commercial market:

MEDIA RELEASE 1/6/2011 [6pm]

Property index shows slow, steady market conditions ahead

The commercial property market is still recovering, but the pace of recovery is slowing, according to the latest Property Council/IPD New Zealand Property Index.
For the year ending March 2011, the index recorded a total return of 5.9 per cent, which is a substantially lower return against the long-run return of 10 per cent. The total return comprises 8.3 per cent income return and negative 2.2 per cent capital growth.
Property Council chief executive Connal Townsend said the results indicated a levelling out in a continuing recovery cycle. “The index results will give investors some degree of confidence of a slow, steady recovery.”
Managing director of IPD in Australia and New Zealand Anthony De Francesco said the results suggested the overall commercial property market was moderating, with the speed of the upswing slowing. “This is supported by various macroeconomic indicators (such as employment growth and retail sales growth), which are pointing towards a soft economic outlook over the short-term.”
However, Mr De Francesco said the speed of the recovery would continue to vary across sectors, with the industrial sector continuing to outperform retail and office due to relatively favourable market conditions.
The office, retail and industrial sectors recorded annual total returns of 4.9 per cent, 4.9 per cent and 9.2 per cent respectively. The office sector reported a larger income return and retail showed lower capital growth declines.
Mr De Francesco said the average cap rate for the commercial property market was 8.4 per cent, which had remained relatively steady at that value for the past two years. “Over the short-term, average cap rates for the overall commercial property market are likely to remain steady.
“This will be underpinned by on-going unfavourable capital market conditions and a softening in the economic climate. However, cap rate dynamics are likely to vary across sectors.”
Mr De Francisco released the results at a Property Council market outlook event in Auckland today, which included presentations from consultant Ed Schuck, principal of Fidato Advisory on the role of Real Estate in institutional portfolios and interest in unlisted assets, and Bayleys Realty Group manager of research Gerard Rundle about current market conditions.
Mr Rundle said the commercial property market was in the midst of a slow, steady recovery that he expected to continue until 2012.
“We’re coming out of a difficult time, so it’s quite surprising that four years after the Global Financial Crisis (GFC) we’re talking about recovery.”

See also, National Business Review: Commercial property market on the up, but pace of recovery slowing

I have to say that my observations don’t quite match those of the Property Council, but as the commercial market is so large and diverse it is little wonder that there are divergent views on such a complex subject. It also depends very much on which end of the market you invest in. The Property Council tends look at super-large investments in the tens of millions range (if not more) and that rarefied market differs considerably from the average investor’s price range of $500,000 to $3 million.

Apartment Market

A sure sign that the property market is on the road to recovery is the sales record of shoebox apartments. These are steadily becoming the new the “darlings” of the market. I have said on many occasions that the cheap apartment market was once hopelessly overpriced — and is now hopelessly underpriced. For those who have a strong stomach and want income and a punt on capital gain, then these types of investments maybe for you.

Sales results published 2 June 2011 City Sales sold 7 apartments under the hammer and one shortly after the auction yesterday.

They included a large (70m²) one-bedroom unit in the Princes St apartments attached to the Pullman Hotel (ex-Hyatt Regency), one sub-penthouse unit in the Spencer on Byron Hotel in Takapuna which has consent for both hotel & residential use, and 3 Princeton units taken out of the hotel pool. Auction results:

Learning Quarter Princeton, 30 Symonds St, 3 units each of 27m², all taken out of the hotel pool, all 2 bedrooms, rates & body corp levy $4572/year for units 4F & 4B, $4520/year for unit 2F, rental assessment $300-330/week, unit 4F sold for $103,500, unit 4B sold for $105,500 and unit 2F sold for $102,500 (Wendy Feng & Andrew Bond)

The Pullman Hotel, 6 Princes St, unit 15F, 70m², one bedroom, deck, parking space, rates & body corp levy $11,000/year, vacant possession, rental assessment $650-750/week, sold for $433,000 (Wendy Feng) The Quadrant, 10 Waterloo Quadrant, unit 1007, 42m², 2 bedrooms, deck, rates & body corp levy $5228/year, under hotel management, current rent $400/week, sold for $217,000 (May Ma & Mark Li)

Quay Park The Docks, 8 Dockside Lane, unit 238, leasehold, 60m², 2 bedrooms, parking space, rates & body corp levy $10,814/year (including $2400/year ground rent), current rent $500/week, sold for $165,000 (Hilary Seagrave)

Victoria Quarter Victoria, 135 Victoria St West, unit 13M, 33m², 2 bedrooms, deck, rates & body corp levy $3036/year, current rent $315/week, sold for $163,000 (Mark Jones)

North-east Takapuna, Spencer on Byron, 9-17 Byron Avenue, unit 1901, 48m² sub-penthouse one bedroom, deck, parking space, the unit has consent for dual hotel or residential use, vendor to remain a plaintiff in remedial works litigation, rates & body corp levy $4707/year, vacant possession, sold post-auction for $240,000 (Gabrielle Hoffmann)

Attribution: Auction story written by Bob Dey for the Bob Dey Property Report.

Auckland Housing Trends for May Meanwhile house prices remain flat despite a tightening supply according to Auckland’s largest real estate agency Barfoot and Thompson. The trend was down for May by a 2.5% which is well within the margin of error, but any graph in any period shows the same “wobbles”. The trend while still flat is under increasing pressure from factors such as the building industry being on its knees, leaky homes starving the market and immigration from both overseas and locally steadily hiking up rents.

Barfoot and Thompson

See NZ Herald: Building consents trend hits another record low

Banks are still touchy

All the baloney and hot air about banks being freer with their mortgages doesn’t add up when you consider the following story.

One of my clients owns an inner city commercial building with three retail tenants, right in the heart of Auckland sitting on freehold land. The tenants had been there for an average of 10 years and none of the tenants had missed a beat in all that time. Over the years his bank had an excellent overview of the reliability of the property by simply looking at the account through which the rents and outgoings ran and analysing the figures. (They really do this.)

My client was invited, indeed encouraged (note!) by his bank to apply for mortgage funding of up to two-thirds of his building’s valuation, which after careful consideration he did. After 20 years as a customer of the bank with never any bother and being in the black most of the time, and having been invited to apply, my client naturally assumed the finance was a foregone conclusion. His property was valued at $1.7 million and the mortgage application submitted for $1.3 million –  a whisper under two-thirds.

You would think at this point my client would just pick up the cheque and get on with it, but oh no!  At this point the bank showed its true colours. After contemplating the application for three weeks the banks “generous” terms became clearer. There were a number of very nasty  fish hooks included such as:

(1) The bank deducted 10% off the valuation - “just to be conservative” – they said. So, for their purposes they valued his $1.7 million property at $1,530,000 and calculated the mortgage at $995k (or 58.5% approx) despite the valuation being from a long established and experienced valuer who was approved by the bank.

(2) Then the bank deducted 20% off the  rents – ”just to be conservative”- reducing the net rents actually being received from $119,000 p.a. to $95,000 … despite the fact that there was never a day in the last decade when rent hadn’t been paid.

(3) Then the bank re-cast their calculations and with total illogicality said they would lend against their “valuation”.

But wait- they wanted more;

• A charge (known as a GSA or General Security Agreement over the investor’s large term deposit despite it being in a family trust. (A GSA is the newer version of a debenture, and a very powerful tool.) Someone holding a GSA can instantly appoint a Receiver to the debtor if the debtor fails to pay the debt. They can seize and sell the assets of the company to pay the debt and act as the debtor’s agent to, for instance, complete a building project rather than sell a partially-completed development. A receiver has a duty primarily to the creditor — to take all the assets of the company, sell them, and in this case, pay the bank. All in all a measure way over the top for bank to demand in these circumstances.
• A similar charge over ALL the other investment properties my client had
• A personal guarantee from my client
• Another valuation report from a different valuer
• A mortgage over my client’s family home
• And a priority on the mortgage of a further $1M to hamper and further charges being registered on any property where the bank had its mortgages

There were four more pages of onerous conditions which it would be tedious to list here, but you get the message. The end result was that my client went elsewhere and got his mortgage with no problems from private lenders who see matters more simply. and, as you can imagine, the bank has lost a valuable client.

Incompetence is not limited to this particular bank. Various property managers are no better.

Let me explain: The Property Manager’s Story

I sometimes relate stories of strange, shocking or weird stories that come across my desk. And now a good friend of mine (ahem) has experienced a truly bizarre and frustrating series of events with his property managers. These are events that defy explanation and are breathtaking in their revelation of incompetence and bias where one might expect professional neutrality. One of my companies manages tens of millions dollars worth of property, and we know only too well how difficult some landlords or tenants can be … but this story beats the lot:

As my friend described it, the trouble began when he took his property manager to the Disputes Tribunal over a relatively minor matter. At that meeting the manager brought some of his staff along as witnesses.

To the astonishment  of my friend, when one of the so-called witnesses spoke up at the Tribunal it was with a tirade of accusations — all couched in convoluted legal techno-babble. The nature of this outburst puzzled my friend because he knows, as we all should, that lawyers are not permitted at Disputes Tribunal hearings.

During a gap in the hearing my friend quickly opened his lap top and searched the name of the ‘witness’ only to find that she was a top barrister in an Auckland legal firm! When the hearing recommenced, my friend mentioned this inconvenient fact and sat back to watch what would happen next. What followed was, I am told, was an explosion from the adjudicator which rivalled that of Mount Tawawera directed towards the barrister-cum-witness. She was expelled on the spot and (as was learnt later) reported to the Law Society for a serious and deliberate breach of the rules.

In my experience the calibre of some bank managers and some property managers is appalling. Time and again my clients complain about unprofessionalism from these people. Just as some Financial Advisors need to be registered and authorised, there is a desperate need for higher qualifications and a better grasp of business (not to mention common sense) by bank managers and property managers so these types of blunders are kept to a minimum.

Olly Newland
June 2011
www.ollynewland.co.nz
© 2011 Olly Newland. All rights reserved. See Olly’s books and audio products.

Olly Newland Mentoring Programme

Olly Newland provides a consulting and mentoring service for people committed to make serious progress with property investments … whether it be buying, selling, holding or troubleshooting.

With more than 45 years in the property game, there are few investors who wouldn’t benefit from his insight and experience.
Olly’s services are impartial and independent of any real estate agent or sales organisation, bank or other lender. Unlike some who purport to offer similar services, he does NOT broker real estate ‘bargains’ (houses, apartments, sections or developments off the plans) nor other related services such as financial planning.
Olly’s style is up front and he offers sound, road-tested advice, robust counsel to help people move ahead with property investment. He is not adverse to using somewhat unorthodox methods to achieve his clients’ goals. (Experience PAYS!) Olly offers a limited number of people one-on-one, totally private consulting and mentoring by phone, email, Skype video and face-to-face meetings seven days a week.

If you’re interested in knowing more, visit Olly’s website www.ollynewland.co.nz or email him.

The property market is changing and changing fast. As never before, obtaining sound independent advice is needed to prosper in this changing environment. Get the benefit of Olly’s experience:
Visit Olly’s website www.ollynewland.co.nz for details of his Property Mentoring Programme and consulting services.

FEEDBACK: Do you agree or disagree with Olly?
Send your comments, criticisms, counter-arguments or any feedback to him by clicking here.

Read more of Olly’s columns here.

THE EVENTS OF THE PAST THREE YEARS (and especially the events of the past three weeks) have changed the economic environment to a new place for a long time to come.

The changes have meant severe financial stress for many, and it is now increasingly difficult to predict with ANY certainty the direction of the property market (or any market) so as to make rational decisions on the future.

The main ‘Game Changers’, in my view, are listed below. As more changes arise it will require a continuing nimbleness of mind and decision-making to keep ahead of the game.

In this article I will attempt to pull together a view of ‘Where To From Here?’ for the property and investment market and see if some order and sense of direction can be deduced from the realities that we now face.

Each ‘Game Changer’ as I see it is either positive or negative (sometimes neutral) for property investors when the medium and long term view is taken i.e. over the next one to three years. I have rated each one accordingly.

With some notable exceptions, most of the consequences have arisen from unfortunate events and tragic circumstances. No professional investor with an ounce of humanity should derive pleasure from that — but we are where we are. To pretend otherwise is to fudge the facts.

Game Changer Number one – Christchurch Earthquake

Tuesday 22 February 2011 will go down in New Zealand’s history as an event that was THE ‘Game Changer’ for NZ.

This natural disaster, and its aftermath which is still playing out, will not only change the lives of the citizens of Christchurch, but everyone else in this country for years, perhaps decades to come.

It is a personal and economical tragedy for tens of thousands of people. Up and down the country there is universal sympathy for the victims and their families (as is right and proper).

But there is another side to this event that has to be addressed. The question has to be asked: How will the property and investment market going to react to this event?

The good citizens of Christchurch certainly need to know as a matter of urgency. Their homes and businesses have been destroyed or damaged. The Prime Minister has already said that at least 10,000 homes have to be demolished and as many as a hundred thousand severely damaged along with much of the city centre. These figure are a preliminary indication, naturally, but they underscore the impact of the disaster.

You cannot have destruction on such a scale, coming on top of all the other high-impact events that have occurred in recent times, without severe and wide-ranging consequences to follow.

The Consequences (-)
In my view this will be a large negative in the near future as the most unfortunate events play out. But in the next few years it will turn positive (+) in the investment sense, as large scale rebuilding and tens of billions of dollars pour into the economy.

Simply put, you cannot have such amounts of fresh new money enter the market without a large part having the effect of driving up prices, costs, and wages. Much of this is directly aimed at the property market which will ultimately benefit as a result.

Game Changer Number two – the Wider Aftermath

As with Game Changer Number one above, the Christchurch earthquake will likely keep the economy in recession longer than might have been. The dole queues will lengthen, and businesses in the region will suffer.

Already it has been suggested that 75,000 people have fled Christchurch and no doubt just as many more would if they could.

Over time, many will return but these will be in turn followed by other leavers – those who will have taken a little longer to take the plunge and leave the region. The inevitable aftershocks will confirm decisions in many minds — and I believe that many will leave Christchurch never to return.

They have to go somewhere. It seems logical to me that some will go to Australia, or more likely, to other New Zealand towns and cities. The big magnet will be Auckland (where there is momentum created by its size) and perhaps Hamilton, Tauranga (and all the towns between) will see an inflow.

After all, if you are looking for a job, or a place to set up a business, you would be unlikely to go to a small hamlet. You would head for where the action is.

This migration will put pressure on rents and affordable properties … with the inevitable result that both rents and house and prices will rise in the medium and long term.

Indeed, in the long run, the earthquake may prove to be the ‘recession buster’ — billions of dollars will be spent on re building, construction, and repairs, whether in Christchurch or elsewhere for that matter.

The Consequences (+)
Very soon (if not already) large numbers of shell shocked Cantabrians will be looking for alternative accommodation for themselves and their businesses. In the short term this is negative (-) because of the stresses and strains that will arise but in the long term it will turn to a positive (+) as new and existing homes are snapped up with moneys paid out by insurance and the the EQC. The end result will be increasing prices, wages and related costs.

Further note: The terrible earthquake and Tsunami in Japan will also have far reaching economic effects. The demand on our resources (timber, steel, labour etc) are going to greatly increase because of the rebuilding of Christchurch. In the very near future there will be even a greater demand for these same resources from Japan. We will face a serious crisis of demand for resources in the making.

Game Changer Number three – Changes in Depreciation Rules

In May last year the Minister of Finance changed the tax rules for residential investment properties because the Government perceived that the market was running red hot. (Too bad that he was two years too late.)

By wiping depreciation on property investments, in one fell swoop Bill English has put up investors’ costs with the inevitable result. As the tax benefits are wiped, landlords will naturally look around for some means to recoup their losses. This will be done by deferring maintenance (= lost jobs) and by increasing rents.

I thought the battle had been won in the 1970s when the then Labour Government heavily taxed ‘speculators’ resulting in property prices and rents rising a further 40% on top of the 50% they had already risen. But it seems politicians never learn.

The Consequences (+)
I have no doubt that rents will rise sooner rather than later — especially in the suburbs that are close to transport, schools and shops. Starting in Auckland the demand will spread out, like ripples in a pond, and it would not surprise me at all if rents doubled in the next few years: A bonanza for investors, and a severe burden for renters.

The short-sighted politicians have unnecessarily created a potent cocktail leading eventually to shortages and cost increases. From an investor’s point of view this will turn out to be a great positive.

Game Changer Number four – Leaky homes

Although it has been out of the headlines for a month or two, the ‘rotten house syndrome’ is still with us in the form of leaky homes needing major repair. This problem is an elephant in the room … causing large distortions in the market.

Almost a decade of new-built houses have been effectively taken off the market, or sold at fire sale prices because of this debacle. Thousands of people, who have lived blameless lives, have been financially disadvantaged by this nightmare and face horrendous costs trying to recover from it. The number of houses so affected is in dispute, but runs into many thousands, with many more issues hidden by owners trying to avoid the problem.

However, if any good can be made out of it, it has dramatically improved the quality of even the cheapest houses and has tightened up the market even further creating a housing shortage mainly in the main centres.

The PM John Key, when asked about a housing shortage said that there was ‘no housing shortage’ and, as I have stated before he is right in one sense. Statistics New Zealand say that there are 1.4 million dwellings in the country. If you take the population at 4.3 million we have only 3.2 people approximately per dwelling — hardly over crowding. This may be an over simplification but that’s what the figures suggest.

The trouble, is that a large number of the houses are in places that people don’t want to live in. There are plenty of houses if you want to live in Taihape, Hari Hari or Tokoroa.

As we do not live in a totalitarian society people live where they want to — not where they are told to live to balance up demand. Hence it is in the main centres where the shortages are the most acute and it is the main centres where the pressure on housing will most certainly arise.

The Consequences (+)
Add these woes to the others and there can be only one answer: Yet more pressure on prices, rents and demand with the inevitable results.

Game Changer Number five – interest rates

Lower interest rates — not seen in this country in a generation — are a game changer of extreme importance.

For much of the time through my investment career interest rates have been stubbornly high: Close to 10% for standard first mortgages, and much more for mortgages in excess of the usual two-thirds.

Many of us investors with grey hair can remember how mortgage rates reached 18% to 22% during the inflation of the 1980s … and how some of us managed by constantly revaluing our properties in order to draw down more money with which to pay the interest!

Current interest rates have fallen to an extremely low level, historically speaking. These have made property investment a paying proposition – almost. The longer they stay down, the more difficult it will be to raise them.

Just imagine what would happen of mortgage rates went up their previous levels.
Do the numbers for yourself: Run an interest rate of, say, 11% or 12% across your current mortgages and work out how long you could hold out. Not very long I suspect.

Low interest rates make investment in commercial property particularly attractive as yields drop and prices rise. Three years ago a typical block of shops may have sold with a 9% yield. Now you would be lucky to get 6%. (Put the other way: those same shops have increased in value by one-third – and that’s before you count any rent increases! The value of commercial property is based on its return unlike residential property which has the same value whether vacant or rented.)

Last week the Reserve Bank of NZ cut the OCR by 0.5% bringing down interest rates even further. I personally believe this was more of a political move than a necessity, as banks were cutting rates already — further downward movement seems unlikely.

Indeed, this cut may hasten the day when inflation returns, bringing a bonus for some and difficult times for others

The Consequences (-)
Enjoy the low interest rates while they last. Now may be the time to consider fixing rates for as long as possible because of the threat of inflation and the consequential higher interest rates which are a distinct possibility.

Game Changer Number six – The Global Financial Crisis

The Global Financial Crisis was the game changer of all game changers. As you may know I wrote a book ‘The Day the Bubble Bursts’ in 2004, revised and re-issued in 2006. From previous experience I realised that the crazy boom starting around 2002 could not last.

Exactly how or where the break would come I could not tell exactly, and certainly the words ‘sub-prime mortgage’ meant nothing significant to me. (How innocent we were.) I doubt if many of us had ever thought about the subject at all. That’s all different now.
One thing I knew for sure was: The party HAD to end.

Then it happened, and we remained transfixed for days and weeks, hardly believing our eyes and ears. Share markets collapsed, long established worldwide businesses vanished, and a whole bunch of crooked money cheats were exposed for what they were.

The mind-numbing timeline of events went like this:

(a) Between 2004 and 2006 interest rates in the US rose from 1 percent to 5.35 percent. Homeowners began defaulting on their mortgages, particularly ‘sub-prime’ loans (high-risk loans to people with poor credit records).

(b) By September 2008, 4.6 percent of US mortgages were 90 days in arrears. More than seven million Americans are expected to default on their mortgage payments by the end of 2010. Four million will lose their homes.

(c) Banks all over the world, which had bought US mortgage debt as an asset, suddenly owned a lot of bad debt. Billions of dollars were wiped from their balance sheets.

(d) Banks started running out of cash and had to borrow money from each other. Soon there was no-one left to borrow from. Beginning with Lehman Brothers in the US, banks all over the world came under strain and collapsed.

(e) The US Government bailed out its financial industry at a cost of $1.18 trillion. Trillion!

(f) The cost of the EU rescue package was $2.18 trillion, to buy faltering banks and guarantee loans. The UK’s government rescue package amounts to $1 trillion.

(g) In October 2008 Iceland declared national bankruptcy, and became the first Western country since 1976 to accept an International Monetary Fund bailout.

(h) The Bank of England says the world’s financial firms have lost $4.82 trillion. More than 100,000 banking jobs have been lost worldwide.

(i) Globally, taxpayers have now spent around $13.39 trillion (that’s $13,392,103,900,000) to shore up the world’s banks. That amount is predicted to increase.

Today the Governments and banks around the Western World (with the exception of Australia whose turn is yet to come) are still printing more and more money — and we all know what happens if you supply too much of any commodity: the price goes down.

All going well, we will recover and get back to steady growth.

That could be very good for those with hard assets such as property because inflation is the investor’s friend. The risk is that it all goes put of control and we have a a tsunami of inflation.

The Consequences (+) and (-)
These events are yet to fully play out, but the crisis was game changer the likes of no other. More and more money must eventually lead to inflation — and for owners of real property this could be a very good thing. But inflation brings with it the seeds of its own destruction. Inflation robs savings, distorts trade, and devalues money. Out-of-control inflation (‘hyper inflation’) has very serious consequences that will not benefit anyone INCLUDING property investors

Game Changer Number seven – Building industry at a standstill

Building consents hit eight year low

Home and commercial building consents slumped to an eight-year low in January, down 19 per cent by value on the same month last year.

Home building consents alone have collapsed by almost a quarter in the past year.

The figures were for the month before the latest big earthquake in Christchurch.

 

There was a small lift in non-residential consents, up 2.3 per cent in January, (Statistics New Zealand).

But overall, the value of consents for homes and other commercial building fell 11 per cent to $537 million.

January it typically a low month for consents, but this year was the lowest value since February 2002.
In January, consents were issued for 90 new apartment units and 777 other homes. The total of 867 new homes was the second low.

Only last week a well respected building firm Sovereign Homes went into liquidation, another victim of the glacial building industry.

Sovereign Homes collapses

Will the Christchurch quake help the building industry?

In the long run yes. However I believe it will be years before the industry can make a real start in that city, and certainly not while the shaking continues.

In the meantime, the building industry will have to limp along … surviving on such scraps as repairs and renovations, re-cladding leaky homes, building extensions, decks and garages and some commercial work.

The Consequences (+)
This will certainly end up as another pressure point in the market, and for those with patience could be a windfall as shortages in the affordable housing area increases dramatically. Simply put, there are NOT enough new dwellings being created where they are needed.

Couple this with the glacial response from local governments to rezone land for residential use, and the even more glacial process for permits and the creation of infrastructure, and we have the perfect recipe for more and higher costs.

Game Changer Number eight – Immigration and Population Growth

The latest statistics show that net emigration and immigration are see-sawing between positive and negative. These latest events will not help as tourists and potential immigrants hold off, and the displaced decide that greener pastures lie across the ditch in Australia

However the population of NZ is still growing with live births exceeding deaths plus overall positive immigration. The number of births again outstripped the number of deaths in New Zealand in the year ended September 30, statistics show.

Births continue to outstrip deaths

Statistics New Zealand said there were 34,940 more births than deaths, with 63,730 births and 28,790 deaths.
It said the excess of births over deaths had been relatively stable in the last four years, averaging about 34,800 a year. It was known as natural increase and had risen from a low of 25,900 in the September 2002 year.

If we have 30,000 plus more people each year we need at least 10,000 more houses as the queue shuffles forward.

We are not covering this figure by far especially when you take in account the net migration figures, demolition and now the earthquake

Game Changer Number nine – Sales dramatically slower

House sales prices fall

The latest Real Estate Institute of New Zealand (REINZ) figures show more doom and gloom for the property market.

The total value of house sales dropped over $350 million from November to December with the number of listings, sales and house values all down.

Some 4,397 houses were sold in December, down from 5,138 in November and 560 less than the 4,957 properties sold in December 2009.

The total value of sales for the month was $1.9 billion, down from $2.26b in November.

Slower sales have a powerful effect on not only the real estate industry but all the ancillary industries as well. Every time a house sells, a large number of jobs are engaged from the movers and packers, through the decorators, insurers, painters, furniture and homeward companies, appliance suppliers, and trades in general.

So now we have a market that is stagnating, but not ‘collapsing’ as some forecasters predicted. Two or three years ago the gloomsters were announcing ‘End of the World’ scenarios with predicted falls of 30%, ‘Falling Knives’, and wholesale devastation. They have proved to be spectacularly wrong — in some cases hysterically wrong — with the general housing market wobbling within a plus or minus 5% range.

Yes, of course, there have been some very ugly losses, especially in the property development sector, lifestyle blocks and cheap shoe-box apartments, but for solid, friendly homes in leafy suburbs it’s not been too bad at all.

The Consequences (+)
This very slow turnover and the consequences to the general economy will have the politicians worried. This is election year remember, and the rhetoric and finger pointing is is yet to begin in earnest. But it will. Housing, I predict will be a very serious election issue as rents rise, and accommodation dries up.

Game Changer Number ten – Rents Sure to Rise

One of the most overlooked issues in this whole property business is the fact that neither residential or commercial rents have risen to any degree over the last ten years, despite property prices doubling in value during the same period. In other words, tenants are now renting or leasing properties for half the amount they were paying 10 years ago, and we as investors are effectively subsidising tenants out of our own pockets. Residential landlording is the worst performer with yields being around net 3% to 4% on a good day on current values.

Commercial is not much better, and investors are only staying quiet because yields are dropping i.e, values are rising coupled with the fact there are still some good tax advantages with commercial that residential no longer has something – a fact that is not so widely known.

This situation has to change. I feel confident in saying that over the next few years rents, especially residential will rise dramatically. This in turn will put pressure back on the housing market as tenants, who are currently enjoying subsidised lifestyles, will see that owning is a better alternative to renting.

Like the shampoo ad says: This will not happen overnight but it will happen within the next 2-3 years at the most.

Rents rising in Auckland

Auckland rentals are rising, while house sales in the city in January continued the pattern from the last quarter of 2010, firm Barfoot & Thompson says.

It noted that while house sales turnover was low key, the rental market was active.

Barfoot & Thompson managing director Peter Thompson said the 810 properties the firm let in January were 3.3 percent more than a year earlier but supply was still short.

The $416 average weekly rental last month was $5 more than in December and $15 higher than a year earlier.

“The lift in rents started in July last year, and January’s average has set a new benchmark,” Mr Thompson said.

“A shortage of properties to let combined with landlords looking to improve their operational returns on their investments is behind the rent increases.”

The Consequences (+)
Rising rents, which have stagnated for so long, will have renters throwing away their rent books and looking to further freeze any more rent increases by becoming house buyers instead. Too bad it will be too late for many who remain destined to be renters for life.

Changer Number Number Eleven – Oil

The Middle East and the oil-producing nations are at each other’s throats and in turmoil. It is too early to predict where this will lead except one thing is for sure: Oil will continue to remain expensive and probably even more so in the years ahead.

The Consequences (-) (+)
Increasing transport costs will force people back closer to the main centres, closer to transport, and to shops and schools. Living on the main road will be popular once again, and for investors, buying on the main road is the shortest path to greater profits.

Summary

Through the smoke and haze of confusion it seems to me that in the long run the signs are very positive for property. It is unfortunate that some of this positivity comes from the misfortune of others but this has always been so, with investors having had their fair share of misfortune as well. The flat market and stagnant rents, combined with the new and existing pressure points all seem to point in the same direction: Higher prices, higher rents and higher profits for those prepared to be both vigilant and patient.

There are going to be some very interesting times in the months and years ahead.

Olly Newland
March 2011
www.ollynewland.co.nz

© 2011 Olly Newland. All rights reserved.

Olly Newland Mentoring Programme

Olly Newland provides a consulting and mentoring service for people committed to make serious progress with property investments … whether it be buying, selling, holding or troubleshooting.

With more than 45 years in the property game, there are few investors who wouldn’t benefit from his insight and experience.
Olly’s services are impartial and independent of any real estate agent or sales organisation, bank or other lender. Unlike some who purport to offer similar services, he does NOT broker real estate ‘bargains’ (houses, apartments, sections or developments off the plans) nor other related services such as financial planning.
Olly’s style is up front and he offers sound, road-tested advice, robust counsel to help people move ahead with property investment. He is not adverse to using somewhat unorthodox methods to achieve his clients’ goals. (Experience PAYS!) Olly offers a limited number of people one-on-one, totally private consulting and mentoring by phone, email, Skype video and face-to-face meetings seven days a week.

If you’re interested in knowing more, visit Olly’s website www.ollynewland.co.nz or email him.

The property market is changing and changing fast. As never before, obtaining sound independent advice is needed to prosper in this changing environment. Get the benefit of Olly’s experience:
Visit Olly’s website www.ollynewland.co.nz for details of his Personal Mentoring Programme and consulting services.

FEEDBACK: Do you agree or disagree with Olly?
Send your comments, criticisms, counter-arguments or any feedback to him by clicking here.