Selling by auction is a common in the Christchurch real estate market so it pays to be familiar with the process.

Buyers Meetings
It is possible for buyers to meet with a member of the Holmwood management team. This is an opportunity for our manager or auctioneer to answer in an informal environment any questions you might have about the auction procedure, bidding, what the various terms mean, etc. There is absolutely no obligation, just come, relax, see the layout of the auction room and learn how buying at auction works for you.

Register Your Interest
If you are interested in the property, be sure to let the salesperson who showed you the home know. This ensures that if another buyer makes an offer before the auction (that the owner will accept) then we are able to contact all registered parties (those who have registered their interest).

Property Information
When you purchase at auction the sale is unconditional and legally binding. Therefore before the auction you will need to be satisfied with any property information, e.g. title, LIM and the particulars and conditions of sale. If specialised reports are required these can be obtained and reviewed prior to the auction date. It is advisable to have your solicitor approve these.

Finance
Before the auction date you will need to have your finance approved. On the day of the auction you will be required to pay a 10% deposit immediately (so remember to bring your cheque book or arrange with your bank to pay online come auction day).

Terms and Conditions
If the terms and conditions don’t suit you, it is often possible to change some of these e.g. the possession date and chattels. This needs to be done before the auction by your salesperson who will obtain the owners agreement in writing (an Aside Agreement).

Pre-auction
As a buyer it is a good idea to have a pre-auction meeting with the salesperson who introduced you to the property to discuss the auction, method of bidding, strategies in bidding and any variations that you may require. If you are unfamiliar with bidding or would prefer not to bid yourself, do discuss this with your salesperson for other options.

At Holmwood Auctions we are here to help.

To check our live Auctions please visit: livepropertyauctions.co.nz

Location:
Holmwood Auction Room, 397-399 Ilam Road, Ilam, Christchurch

The Holmwood Auction Room is located approximately ten minutes from the city centre. There is on site and off-street parking available.

Christchurch Property Market Comment by Jim Davis, Harcourts South Island BDM

The just released REINZ sales statistics for the month of June for Christchurch Property Market have finally produced the result we have been expecting and predicting for a while now. The figures show that sales in the city have slowed in the last month compared to earlier this year or against the same period last year. This result is not surprising and was as we said expected “eventually”.

It is not surprising, quite simply because we are right in the middle of a cold wet dreary winter with June having had particularly bad weather. Additionally, the drop was expected ‘eventually” because of what we have been reporting for the last few months now, namely that there has also been a marked drop off of newly available property to sell in the prior months. If there is a lack of stock on the market you simply can’t sell it and so sales figures were always destined to slow.

Let me also predict now, this last month’s lower than usual sales will be replicated over the next month– but come spring and warmer weather I have no doubt normal sales figures will resume. Why am I so confident, because from what I see and hear from the coalface there is already considerable interest being shown by clients getting ready to sell in the spring. Consultants right across the city have already advised that in the last week or so there is plenty of interest from people getting ready to sell in the spring.

The median sale price is also down this past month but once again that is a reflection of lower sale numbers coupled with the increased interest from the first home buyer’s market. So the actual market realty has just finally caught up with our city’s sales.

As a vendor thinking of selling this is a great time to hit the Christchurch property market even if it is a bit cold at present, a great analogy given to me last week was as simple as this.  Do you want to sell now and be a like a big fish in a small pond, or wait till spring and just be one of the fish in a much bigger pond. I am sure you get the idea.

Regardless of your preferred time to look at selling ensure you are talking to your local Harcourts offer, no other company can provide the resources or results that Harcourts can in our fair city.

As a buyer in the current market you will already know there is a lack of fresh stock and as I have said I expect this to continue for at least another month or so.

Additionally if you are purchasing log onto our new upgraded digital Bluebook at canterbury.harcourts.co.nz/bluebook   

This new look Bluebook is fully digital and a great asset or assistance to any buyer.

In the mean time hang in there our Winter market is what it is but as I mentioned earlier there are rational reasons for it.

Buying your first home takes careful planning and, for most people, serious budgeting! Here are a few tips for first home buyers which will help you plan for the total cost of buying a home, including your mortgage, insurance, legal fees and other costs.

Saving for a Deposit
The first step in saving for your deposit is to set yourself a savings goal. Lenders ideally require a deposit of at least 20% of the amount you are borrowing. So if you’re buying a house worth $400,000 you’ll need a deposit of at least $80,000. Keep in mind that the bigger your deposit, the less you’ll pay in interest over the long term. Speak with your Mortgage Adviser about other possible optons (i.e. the Welcome Home Loan).

Get your Family’s Help
You may be able to borrow a deposit from your parents of use the equity in their home to secure a loan. Depending on interest rates, it’s possible that you could offer them a rate higher than they would get with a term deposit, but lower than your mortgage rate. In some cases, you could look at borrowing the deposit from another financial institution – as long as you have sufficient funds to repay the debt.

Getting a Mortgage
Your first mortgage, or home loan, will probably be the biggest financial commitment you’ll ever make. You’ll probably look at dozens of places before you find the home you want to buy. It’s a good idea to be just as careful when choosing your mortgage.
There are many types of mortgages, each with its own interest rate, fees and degree of flexibility. All these things affect how much the loan costs you and when it will be paid off. Again, speak with your Mortgage Adviser to get the broadest range of options.

Get a Flatmate
This is an option worth considering as it will generate extra cash to put towards your mortgage. For example if you had a flatmate paying $120 a week, this gives you an additional $6,240 per year.

Government Help
With a 10% deposit, you may be able to borrow enough to buy a house under the government’s Welcome Home Loan Scheme. If you have been a KiwiSaver member
for three years you can withdraw your savings and if you have been contributing to the scheme for at least three years, you may also be eligible for a HomeStart grant. This means that the government could give you up to $5,000 towards an older, existing home, or up to $10,000 towards a newly built home or land to build a new home on. If you’re borrowing with someone else, you can combine your grants, which means you could have up to $20,000 if you were both contributing to KiwiSaver for five years. There are other eligibility criteria to meet, as well as regional house price caps.

Take a Long-Term View of your Purchase
The property market is like a merry-go-round; prices go up and down, but they mainly go up, up, up. If you take the long term view you would be making a very good investment.
It doesn’t matter where the cycle is when you enter the market – if you’re in it for the long haul you will reap the rewards..

Moving-In Costs
You will need to keep money aside for things like:
– Moving services – or truck hire if you’re doing it yourself.
– Connection fees for phone, power and internet.
– Any renovations or decorating you need to do straight away.
– Advertising for flatmates or tenants.
– Legal expenses and builder’s reports

It’s school holidays and we have a $50 HOYTS New Zealand movie voucher to giveaway!!

Competition rules as follows:

1. LIKE OUR PAGE
2. TAG A FRIEND in the POST (as many as you like!)

Only likes and tags on our Harcourts Holmwood Real Estate page will be included