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Duke & Cooke Property News |
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Published on: 8th November 2008 FIXED MORTGAGE BREAKERS FACE $10,000 FEES FIXED MORTGAGE BREAKERS FACE $10,000 FEESSome Nelson people are facing charges of over $10,000 for breaking fixed-term mortgages and others are being forced to shop around more as banks tighten lending criteria. Mortgage Express broker Steve Holbrook said people were able to borrow up to 100 percent at the start of the year but now banks generally preferred them to stump up with a 20 percent deposit, as required back in 2000. “The only observation I’d make about that is that a house was worth $150,000 then and now it’s $300,000.” Hence, people had to save more than ever before to get into the property market, he said. Nelson Marlborough Mortgagee Services manager Mark Papps said a lot of people had fixed mortgage rates of between 8.95 and 9.5 percent for a three- to four-year period. One of his clients faced a charge of “over $12,500 and closer to $20,000” for breaking a fixed-term mortgage. New Zealand Home Loans Nelson co-owner Gitte Helle-Nielsen said the company was still lending clients up to 95 percent through the franchise’s partnership with Kiwibank. Real Estate Institute Nelson Marlborough branch president Jenny Dickie said it was still too early to tell how the tougher lending criteria were affecting the market. (The Nelson Mail, Monday 3 November 2008) BIG JUMP IN UNPAID RATES FIGURESTougher economic times have been blamed for a large jump in unpaid rates in Nelson city since 2005. Tasman district is experiencing the same upward trend, with a 68 per cent jump in unpaid rates in the past four years. In 2005, the Tasman council recorded $252,804 in outstanding rates payments. By June this year, it was $425,055, according to figures supplied by corporate services manager Murray Staite. In Nelson city, the amount of overdue rates has increased more than 300 per cent, from $78,319 in June 2005 to $340,391 in June this year, the council’s governance committee heard last week. The council was hopeful it would recover the debt, chief financial officer Chris Fitchett said. Mr Staite said that while the trend was moving up, it did not alarm the Tasman council. (The Nelson Mail, Monday 3 November 2008) CONSENT COSTS AS MUCH AS WORKThe paperwork involved in applying for resource consent to cut a pair of two-metre-wide gaps in a wall is likely to cost the Nelson City Council about $20,000 – about the same cost as doing the work if it gets the green light. A two-day commissioner hearing stated in Nelson today, as the council’s parks and facilities department seeks permission to establish public access on council land between Packham Cres and the Railway Reserve in Stoke, and also between Echodale Place and the reserve. It would mean cutting 2m gaps in an existing acoustic wall. Council parks and facilities manager Paul McArthur said the application process was likely to cost around $20,000. It included the funding for the development of the application, including specialist acoustic engineer advice, the actual costs of the hearing, and processing costs. Mr McArthur said the cost of the physical works was likely to be similar. (The Nelson Mail, Monday 3 November 2008) NELSON’S AIR QUALITY ‘ON TRACK’Pollution halves in 8 years Nelsonians can breathe easier with the knowledge that the city’s air quality is improving and is on track to meet national standards, Nelson City Council senior policy planner David Jackson says. Pollution levels around the city tended to be less than half what they were eight years ago, and the number of days on which the government standard was breached had also fallen significantly, he said. He said the improvement was due to the ban on open fires, and to older burners being replaced with more modern burners or with heat pumps, gas or other clean heating sources. More than 80 percent of Nelson’s urban air pollution had come from domestic burning, and efforts by people to convert to clean burning systems was “the biggest factor in our improving air quality”, Dr Jackson said. Dr Jackson said about 800 Nelsonians had so far taken advantage of the council’s Pay As You Heat scheme, which allows homeowners to upgrade to clean heating systems such as approved wood burners, heat pumps and gas heaters and spread the repayment cost over 10 years, interest-free. He said it was likely that hundreds more had “done their own” thing in converting to clean heat systems, but the council would not have definite figures on types of home heating sources until it carried out an inventory in 2011. (The Nelson Mail, Tuesday 4 November 2008) COUNCIL FACES $27M SPEND-UP ON WATERNelson will need to spend about $27 million on proposed new water supply infrastructure and improving the existing assets to meet demand from the community over the next 15 years. The amount included the $12.3 million needed over the next three years to build the duplicate Maitai pipeline, which Opus International Consultants had just secured the contract to build, Nelson City Council technical services manager Alec Louverdis said. The plan also included an almost $2 million reservoir and associated works in Stoke, a similar $4.7 million development in Atawhai, close to $5 million to install backflow preventers to protect the quality of the city’s drinking water, and $3 million on the Maitai pipeline to Westbrook Tce. He said the cost of the duplicate pipeline would likely push up Nelson water charges, which increased 2.9 percent in 2008-09. Nelsonians pay $1.719 a cubic metre for their water, which has a high-grade source and distribution “Ab” rating. Tasman district, which is facing a similar cost burden to improve its resource and quality of supply, has the lowest water charge of the 12 councils. Property owners pay $0.901 per cu m, but the water and how it is supplied does not have an official grading from the Ministry of Health. The Lee Valley has been chosen as the preferred site for a $17 million dam that is expected to provide for up to 100 years’ growth in the Tasman district. The city council is a stakeholder in the Waimea Water Augmentation Committee, which is steering the project, and has so far contributed $50,000 in seed funding. (The Nelson Mail, Wednesday 5 November 2008) GRANT FUNDS FOUR AFFORDABLE HOMESThe Golden Bay Housing Trust is soon to start building four homes near Takaka for families in need, thanks to a grant of $1.2 million from the Canterbury Community Trust. However, the underlying problem of families being forced to leave the bay because of a lack of affordable housing was still a big issue, according to a Golden Bay sustainable housing developer who has 47 families on a waiting list. Golden Bay Housing Trust director Belinda Barnes said that the four three-bedroom houses would be built in a Rototai subdivision, which was a “great location”, within walking distance to schools and the Takaka township. “We’re really excited about getting the grant. Our whole policy is to try to keep the people in the bay”, she said. The homes will be rented out at 80 per cent of the market rate, which is currently around $250 a week, to families is need. Jennian Homes will build the houses according to New Zealand Housing Trust guidelines. “They’ll be modern, tidy homes with solar-powered hot water and double glazing,” Ms Barnes said. The brick veneer homes with iron pitched roofs would be well-insulated and could be completed by end of February. (The Nelson Mail, Wednesday 5 November 2008) GO-AHEAD FOR CHURCH’S BIG EXPANSIONThe Richmond Baptist Church has been granted consent to expand its Salisbury Rd buildings and build an 800-seat worship centre. The consent is for a 20-year time period, reflecting the long-term nature of the church’s plans. The church wants to extend its main building by 680sq m to provide more administration and meeting rooms. It also wants to build three new buildings along its southern boundary to expand its pre-school, before and after-school care and holiday programmes. The church also intends to build a 12m tower at its Salisbury Rd entrance. This structure would be lit but not have a bell. (The Nelson Mail, Wednesday 5 November 2008) JOBS LOST IN BUILDING INDUSTRY SLOWDOWNRedundancies have occurred at two Nelson firms associated with the building trade, and some are predicting further retrenchment as a national slowdown hammers home. Placemakers confirmed it had made four staff redundant – less than 5 per cent of its regional workforce. The Orange Building Group have also made staff redundant, but refused to reveal how many. Tasman District Council figures show its consent applications have dropped by a third over the past two years, while the Nelson City Council’s have remained fairly steady during that period. Industry in Decline Building consent applications in the past two years: Tasman District Council: New house, unit or bach 292 New house, unit or bach 306
New house, unit or bach 283 Year to Oct 3, 2007 (The Nelson Mail, 8 November 2008) REAL ESTATE AGENCY CLOSESBranch head blames downturn Real Estate Institute Nelson Marlborough branch president Jenny Dickie has closed the doors of her own agency. Mrs Dickie refused to answer questions about the closure of Ray White Nelson this week. Instead she issued a statement, written a month ago, saying the move resulted from a number of factors including the “economic downturn” in real estate. Mrs Dickie said administration staff had been relocated, and the sales team were pursuing other options. Although its doors are shut, the Hardy St office continues to display property advertisements in its windows. Mrs Dickie plans to continue as the institute’s branch president and stated she would consider offers made available to her in the Nelson real estate sector following an auction that her company conducted in Christchurch last week. (The Nelson Mail, 8 November 2008) MINING PERMIT FOR COBB SITE APPROVEDA Ngatimoti man has been granted an exclusive permit by Crown Minerals to mine a 49ha area in the lower Cobb Valley for magnesium and talc. Gion Deplazes’ company Steatite Ltd has been given a 40-year permit to extract the minerals from a disused quarry on Department of Conservation land near the Cobb Dam. He said he hoped to start operations in about two years, but would first need to gain approval from DOC and resource consent from the Tasman District Council. Mr Deplazes said he hoped to extract about 5000 tonnes of soapstone, the common name for magnesium, from the quarry each year. He hoped to employ six people in quarrying, transport and manufacturing jobs. (The Nelson Mail, 8 November 2008) PROPERTY WATCHBramley sections popular Developers of the Bramley Estate subdivision on the corner of Hart and Wensley Rds, Richmond are pleased with the interest and sales the project has generated. Directory Peter Hill said 10 of the 26 sections in stage one and another three in further stages had sold during the past three months through word of mouth and signs erected at the site a few weeks ago. Interest was mostly from local people, he said. “I’m amazed at how many people want to live in that area. No one else is selling (sections) like we are, and we’re not even advertising them much.” The sections fetched about $235,000 each, with an average size of 7000sq m. The first stage was originally due to be completed by Christmas but bad weather has set it back until March. Toyworld changing hands Nelson’s Toyworld store has been sold, while the Richmond Toyworld this week opened in a bigger site opposite the Fresh Choice supermarket in Richmond Mall, making way for Hallensteins to open in its previous space. Lindsay Hicks, a former Picton man who used to own the mail boat run in the Marlborough Sounds, purchased the Nelson Toyworld store from Steve and Glenys Collier for an undisclosed price this month. Mrs Collier said the sale enabled them to concentrate on their Richmond store. Bayleys Nelson agent Reece Forbes said Toyworld had been “quietly on the market” for about a year and was an attractive business. Subdivision work starts Work has started on two new subdivisions in Marsden Valley, including Solitaire Investments’ 12-lot Flat Creek development on the Stoke side of Marsden Cemetery. Project manager Kathryn Randle said the sections ranged in size from 670sq m to 3830sq m and were priced from $175,000 to $200,000. “We’ll put them to the market now and see what interest there is.” The development’s progress would hinge on that, she said. The sections are being sold privately, with house and land packages also available. Industrial properties sold Two properties at 18 and 22 Tokomaru Pl in the Wakatu Industrial Estate have sold through Bayleys agent Doug McKee for $793,000. The GV was $649,000. Mr McKee said the properties had been on the market for about three months and one was sold tenanted while the other, a 200sq m premise, was available for lease. |
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This publication is compiled by Duke & Cooke Ltd, valuation and property specialists. The information contained within this newssheet has been obtained from various local sources and no responsibility is held for any parties relying on the accuracy of this information without obtaining independent verification. To contact us regarding circulation of this service: Phone +64 (03) 5489104, Fax +64 (03) 5468668, or email: admin@valuersnelson.co.nz |