Aaron Burke & Philip Reeve’s

WELLINGTON REGION

All the best moves happen with great teamwork.

Together we’ll make your next move your best move. AUGUST 2008

Cautious optimism on interest rates

Six months of interest rate cuts predicted

In its final weekly report of July, Westpac Bank predicted that the Reserve Bank
will continue to cut interest rates at every review from now until January. At that Avoiding DIY disasters
point, assuming 25 basis point (0.25%) reductions at each review, the official The Department of Building and Housing have some helpful advice for DIYers.
cash rate will be 7%. “At some point in the future, activity will start to show Here is an excerpt from their website consumerbuild.org where they highlight
some important aspects of DIY.
some improvement, and the RBNZ will have to turn its attention back to the
increasingly ugly outlook for inflation. But it’s hard to predict exactly when the There are a number of informed decisions that need to be made before
starting a project. For example, if you decide to paint the bathroom, think
penny will drop. Our best guess is that the last cut will come in January, leaving
about these issues:
the OCR at 7.00%. While this seems like a high ‘trough’ compared to history, the
Do you have the patience and equipment to peel off the old wallpaper,
prospect of higher average inflation in coming years suggests that a 7% cash plaster and sand the wallboard to a smooth enough finish for painting and
rate will be close to neutral”. apply a professional-looking coat of paint?
Do you fix or float? Do you know enough about the products, such as how to seal the walls
Westpac further commented that “last week’s OCR cut has already fed through before painting, and how to choose paint that is water-resistant?
to lower fixed rates in the 2-year term, and floating and 6-month fixed home When you take off the wallpaper, will you be able to replace any wallboard
loan rates may also eventually fall. However, we caution that further falls in fixed that is rotten or damaged and, more importantly, can you find the source
of any dampness and deal with it?
rates are not guaranteed. The global credit crunch continues to raise the cost of
If you only have weekends to work, are you prepared to have a half-
borrowing offshore for New Zealand banks, which could limit passing on OCR
finished bathroom for a number of weeks? (Drying times can stretch the
reductions. In this environment, waiting to fix may be a risky option.” BNZ Chief process out.)
Economist, Tony Alexander, in a recent release said “If I were borrowing at the
moment I would fix for a one-year period anticipating a much lower cost in a
years time and 12 months from now I would judge whether to go floating and ride Win Dinner for 2 at
further declines or perhaps fix for another six months or one-year period.” Logan Brown Restaurant
Set in the beautifully restored 1920s banking chamber and renovated with
Wellington Regional Update comfort, style and ambient lighting, Logan Brown Restaurant and Bar sets the
According to the latest REINZ statistics, nationally the lower end of the scene for an enjoyable dining experience. Featuring classical and contemporary
property market was relatively liquid. This contributed to the national food cooked perfectly.
median price falling slightly from $345,000 in May to $340,000 in June. Cnr Cuba and Vivian Streets Tel: 801 5114
Sales of properties under $400,000 were up slightly from 2,680 in May
Courtesy of Logan Brown Restaurant you are offered the
opportunity to win dinner for two to the value of $250.00
to 2,708 in June, but sales of properties valued at between $400,000 and
To go into the draw fill in your name address and telephone number and mail
$599,999 were down from 1,041 in May to 1,039 and properties between your Newsletter by the end of the month to: “RE/MAX Leaders Logan Brown
$600,000 and $999,999 were down from 508 to 427. Sales of properties contest” PO Box 11 509 Wellington
worth $1 million and over were down from 143 to 131. Newsletter sent to me by of RE/MAX Leaders
Name
Wellington’s median price for June was $366,500 compared with
Address
$389,500 in May (June 2007: $375,000). In total, 458 houses sold Telephone Email
throughout the region in June compared with 534 sold in May (June I am happy to receive information from Logan Brown Restaurant yes/no
2007: 788). Last month’s winner was: David McKenzie of Wellington

WELLINGTON REGIONAL COMPARISON

SALES MEDIAN DAYS TO SELL MEDIAN SALE PRICE Wellington Region Median Sales Price
AREA JUN 07 JUN 08 JUN 07 JUN 08 JUN 07 JUN 08
$000s $000s
MEDIAN SELL PRICE

Wellington Central 95 40 24 50 $390 $387

Wellington West 44 37 22 46 $543 $440
Wellington East 42 29 26 50 $490 $427
Wellington South 40 22 21 44 $532 $426
Wellington North 89 54 24 49 $420 $420
Pukerua Bay/Tawa 56 43 31 67 $385 $367
Hutt Valley 140 91 31 44 $340 $305
Otaki/Paekakariki 103 60 35 58 $360 $332
Comparative sales figures compiled from the Real Estate Institute of NZ statistics

Aaron Burke & Philip Reeve - Service to the Power of 2

Call us anytime on 0800 REMAX1 (0800 736 291) or email ajburke@leaders.co.nz or preeve@remax.net
Disclaimer: All the information published in Property Update is true and accurate to the best of the publisher’s knowledge.
No liability is assumed by RE/MAX Leaders, nor the publisher, for any losses suffered by any person or organisation relying directly or indirectly on this newsletter.

Leaders Real Estate Group represented by: Leaders Real Estate (1987) Ltd, Northside Realty Ltd, Villa Real Estate Ltd. MREINZ © YORK MANAGEMENT Ph: (04) 478 5777, E-mail: graham@homenet.co.nz