Group buy­ing pays div­i­dends

Coastal News - - Front Page - By MAX CHRISTOF­FERSEN

It’s a chang­ing and dy­namic mar­ket in Whangamata for build­ing and devel­op­ment.

The peak of prop­erty prices has now been re­placed by a mix of a buyer’s and a seller’s mar­ket ac­cord­ing to staff from Whangamata BNZ.

Bank­ing ad­viser Louis Namana said the lo­cal prop­erty cli­mate had changed from 2016.

“Two years ago sales were some­times tak­ing five days, but changes in­tro­duced by the Re­serve Bank have shifted the prop­erty mar­ket in Whangamata. The re­quire­ment for a 40 per cent de­posit had im­pacted on the fast turn­around of beach home sales.”

Mr Namana said while it is still easy to get into a home, it was pru­dent to be­come fi­nan­cially lit­er­ate and un­dergo a fi­nan­cial health check.

“There is good debt and bad debt. But new home own­ers can get into a new home in Whangamata with a $50k de­posit and split­ting the debt load by join­ing in the land pur­chase with oth­ers is a sound way of en­ter­ing the prop­erty mar­ket.”

Us­ing the “Brady Bunch” method of prop­erty pur­chase with de­posit and mort­gage costs be­ing split among friends or fam­ily is pay­ing div­i­dends around the Bay of Plenty and Coro­man­del with prop­erty prices steadily ris­ing.

Build­ing con­sents is­sued for Whangamata from June 1, 2016 to May 31, 2017 to­talled 203 and re­main largely static with June 1, 2017 to May 31, 2018 con­sents ris­ing to 210.

An­other chang­ing dy­namic is the abil­ity for many to work in a digital en­vi­ron­ment. This means re­mote work is now a real pos­si­bil­ity for ab­sen­tee own­ers. The BNZ was see­ing a new trend, with out-of-town “lo­cals” work­ing re­motely while at their Whangamata beach bach.

“Some may be em­ployed in Auck­land but the digital en­vi­ron­ment now means they can do that work re­motely from Whangamata and we are see­ing some mov­ing here to work lo­cally while be­ing em­ployed out of town.”

BNZ store man­ager Jen­nie Boland said there were still high value prop­er­ties sell­ing, with one lo­cal prop­erty sell­ing re­cently for around $7 mil­lion.

“We are also see­ing older res­i­dents sell­ing up and mov­ing to Katikati and Waihi Beach to gain eas­ier ac­cess to health care and other ameni­ties.”

With new homes be­ing built through­out the Coro­man­del and Bay of Plenty, qual­ity con­trol and on-site coun­cil in­spec­tions are in­creas­ingly com­ing un­der scru­tiny by buy­ers.

Leaky homes are also an on­go­ing is­sue with new builds around New Zealand, with Thames-coro­man­del District Coun­cil (TCDC) con­firm­ing small numbers of leaky homes in their re­gion.

“In 2010, we had 19 weath­er­tight claims, four of which were in the Whangamata ward. We cur­rently have nine claims, three of which are in the Whangamata ward.”

The re­cent mul­ti­mil­lion-dol­lar Bella Vista sub­di­vi­sion fail­ure in Tau­ranga had coun­cils on high alert en­sur­ing their qual­ity con­trol and on-site check­ing sys­tems were ro­bust.

TCDC build­ing unit man­ager Corinne Ham­lin said Bella Vista had a spe­cial set of cir­cum­stances spe­cific to that site.

“TCDC BCA is part of the Waikato Build­ing Con­sent Group which has ex­ten­sive poli­cies and pro­ce­dures in place as part of our qual­ity as­sur­ance man­ual. A re­cent au­dit in March by IANZ con­firmed TCDC is work­ing strictly in ac­cor­dance within our qual­ity as­sur­ance sys­tem. Con­sid­er­a­tion of whether our cur­rent pro­cesses re­quire mod­i­fi­ca­tion will be ev­i­dent once the for­mal re­port find­ings are of­fi­cially re­leased,” Ms Ham­lin said.

The liq­uida­tors of Bella Vista Homes con­firmed last month they have just $28 with which to pay more than $4m to cred­i­tors af­ter 21 homes were de­clared by coun­cil to be un­fit for oc­cu­pa­tion in March.

“With re­gard to sub­di­vi­sion re­source con­sents, tech­ni­cal mon­i­tor­ing is car­ried out by Coun­cil Devel­op­ment En­gi­neers in ac­cor­dance with the TCDC En­gi­neer­ing Code of Prac­tice. With land use re­source con­sents, TCDC mon­i­tor the con­di­tions of these con­sents to en­sure com­pli­ance with those con­di­tions is met. As mon­i­tor­ing of­fi­cers mon­i­tor the con­di­tions of ev­ery land use con­sent granted by TCDC al­ready, no changes to cur­rent pro­ce­dures have been made in light of Bella Vista col­lapse.”

‘Two years ago sales were some­times tak­ing five days, but changes in­tro­duced by the Re­serve Bank have shifted the prop­erty mar­ket in Whangamata. LOUIS NAMANA Bank­ing ad­viser


Build­ing con­sents in Whangamata are on the in­crease.

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