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The peak of property prices has now been replaced by a mix of a buyer’s and a seller’s market according to staff from Whangamata BNZ.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