Quay Law embracing new technology to assist you

Buying or Selling a property can be a stressful exercise, but a revolutionary online resource is set to facilitate a smooth transition throughout the legal process. The KeyTrack software allows real estate agents, mortgage brokers, vendors or purchasers of property to follow their property deal online. 24 hours a day, 7 days a week.

Quay Law will keep you up to date by:

• Sending you instant text messages and / or email alerts throughout the property transaction.
• Sending you notification as your agreement becomes unconditional.
• Informing you when your property deal settles and when keys can be released or collected.
• Ensure effortless communication with your lawyer at Quay Law.

How will we do this?

• We will provide you with instant access 24 hours a day 7 days a week to a secure transaction status reports.
• You are able to receive updates and view your reports from anywhere in the world.
• Provide you with the facility to view multiple transactions online with a single login.
• Enjoy free electronic storage so you can view reports in the future.

Call our Property Law team at Quay Law today for more information.

Ph: 09 523-2408

Rents up, mortgage payments down

Rents up, mortgage payments down Thursday, 26 November 2009, 11:29 am

Press Release: Statistics New Zealand Embargoed until 10:45am – 26 November 2009

Rents up, mortgage payments down Results from the Household Economic Survey (Income) (HES (Income)) for the year ended June 2009 show no overall change in average weekly expenditure on housing costs from the previous year, Statistics New Zealand said today. This result was made up of an increase across all households in average weekly property and ground rent payments (up 8.1 percent), offset by decreases in average mortgage principal repayments (down 7.1 percent) and average mortgage interest payments (down 2.8 percent).

For those making rent payments, median (half pay more, half pay less) weekly rent payments increased from $220 in 2007/08 to $241 in 2008/09 (up 9.5 percent). Meanwhile, median weekly mortgage payments, for those making these payments, decreased from $328 in 2007/08 to $312 in 2008/09 (down 4.8 percent), partly reflecting a decrease in mortgage interest rates charged over the survey period.

For those paying rent, median weekly rent payments in the five regions surveyed were as follows: Auckland ($300), Wellington ($250), Canterbury ($245), Rest of North Island ($200), and Rest of South Island ($178). Meanwhile, median weekly mortgage payments, for those making these payments, were as follows: Auckland ($414), Wellington ($340), Canterbury ($318), Rest of North Island ($262), and Rest of South Island ($219).

Other survey results showed that average (mean) annual household income was $78,876 in 2008/09, up 5.6 percent from 2007/08. The increase was driven primarily by an increase in aggregate wage and salary income.

HES (Income) is a shortened version of the three-yearly full Household Economic Survey. It ran for the first time in the year ended 30 June 2008, and is run in each of the two years between the full HES to collect data on household and personal income, living standards, and housing costs.

Source: Scoop Independent News

Search Register of Licensees | Real Estate Agents Authority

Source: www.reaa.govt.nz

The Real Estate Agents Authority  (REAA) was launched on Tuesday 17 November 2009.  We provide independent oversight of the real estate industry, increase consumer protection and raise industry standards.

We are here to assist both consumers – people buying or selling a property – and those who work in the real estate industry.  Our focus is to ensure a high standard of service and professionalism within the industry, and provide increased consumer protection.

The Authority is a Crown entity, established under the Real Estate Agents Act 2008.

Please find below a link to the Search Register of Licensees (REAA)

Please click on the link provided  for more information about the public register of licensees   http://www.reaa.govt.nz/registry

New real estate regulatory body in effect today

UE, 17 NOV 2009 6:34A.M. : As supplied by tv3.co.nz

A new body to keep an eye on Real Estate Agents comes into force today.

The newly established Real Estate Agents Authority replaces the former in-house system to deal with complaints.

Among the many changes, the REAA will allow property buyers and sellers to look up industry licensees on a public register.

The register will outline when the agent was first licensed and whether they have had any disciplinary action against them in the last three years.

The REAA take over from the Real Estate Institute of New Zealand (REINZ) as the regulatory body of the industry.

REINZ will now become a membership service and it welcomes the new Act, the national president, Peter McDonald, told the NZPA.

“It’s an opportunity for the real estate industry to lift its public perception.”

Chief executive of Ray White Carey Smith is welcoming the new legislation.

The new Real Estate Agents Act creates an independent Disciplinary Tribunal to deal with serious cases, which will have the ability to order the cancellation of licences and award up to $100,000 in compensation.

Real estate agents will have new responsibilities such as providing more information to consumers and they are no longer required to be members of REINZ.

3 News/RadioLIVE

Why do I need a trust?

Quay Law : Level 1, 427 Remuera Road, Remuera (09)5232408

Outlined below are a number of reasons why implementing a trust structure could possibly be of benefit to you and your family:

1. Protection of core family assets for present and future generations (this has been the traditional use of family trusts and should be the prime consideration when any trust is established).

2. Protection from business creditors (separation of core family assets such as the family home from business risks).

3. Protection of particular beneficiaries (example, children with special needs, educational trusts).

4. Protection from matrimonial property claims and de facto claims.

5. Protection against possible income tax consequences and future taxes.

6. Protection against the likely consequences of inflation.

7. Incidental benefits in relation to means testing and rest home subsidies.

Trusts are an invaluable asset protection tool and mechanism for preserving  one’s weath.

 Please contact Ian Mellett at Quay Law for more information, or if you have any further questions on Trusts and Asset Planning.

 Ian Mellett BComm LLB H Dip Tax is a Barrister and Solicitor at Quay Law in Remuera, Auckland. Quay Law provides services in Wills and Estate administration, Estate Planning, Trusts and Asset Protection, Relationship Property, as well as Conveyancing, Commercial,  Immigration and other areas of law. Phone number (09) 523-2408.

Green shoots may not pay off until mid-2010: analyst

NZPA | Friday November 13 2009 – 07:51am

Extract from the NB

Beef, sheepmeat and mussel farmers will have to wait until the middle of next year before export demand picks up, says a leading bank.

“Consumer sentiment in New Zealand’s key export markets is expected to remain subdued until at least the middle of next year,” said Wendy Voss, a senior analyst for agribusiness bank Rabobank.

Farmers could not expect an immediate surge in demand, even though the worst of the financial crisis appeared to now be over.

There was a chance things may improve before the middle of 2010, “but, realistically, demand won’t pick up until economic growth improves and unemployment rates begin to ease in key markets, such as the United States and Japan”.

Globally, livestock had not been an easy or attractive investment in recent years and this had led to the widespread liquidation of herds and flocks. Meat prices finally began to rise after this sell-off, but were then hit by the global financial crisis.

“Just when signs of economic recovery were beginning to emerge, the strong NZ dollar created the double whammy of another dampener on returns,” she said.

But the fundamental factors for the beef, sheepmeat and aquaculture industries had not really changed for the medium term.

Major global population and income growth was expected to boost demand for NZ meat and seafood exports.

Ms Voss predicted recovery in consumer confidence will support increased demand for meat and seafood, and tightening supplies in key beef-producing countries – the United States, Argentina, Uruguay and China – will create opportunities for NZ producers.

And tighter sheepmeat supplies in markets such as the US and European Union will create opportunities, but development of those markets on a reduced budget will be a challenge.

Indian consumers offered great potential for NZ lamb and mutton, and China’s aspiring middle-class offered a potentially lucrative market for premium aquaculture products.

Property Report – Remuera & Parnell – September 2009

Dear Valued Rob Report Subscriber,

Please find attached a copy of The Rob Report for Remuera & Parnell (September 2009).

0909The Rob Report Remuera & Parnell September 2009

If I can be of future assistance, please do not hesitate to contact me.

Coming soon….. FOR SALE – 5 Awarua Crescent, Orakei.

If you are looking for an 809 m2 site which enjoys ever changing city and harbor views (refer: Front cover of The Rob Report) to build your dream home – please do not hesitate to contact me.

Note: If you no longer want to receive copies of The Rob Report via email, please advise.

Regards

Robert Ashton AREINZ BE (Structural)

Residential Sales Specialist

D +64 9 520 8890 | M +64 21 633 398  | F +64 9 520 8880 | E robert.ashton@bayleys.co.nz

House price growth will slow: Bollard

WARNING: Reserve Bank Governor Alan Bollard warned of the need to avoid a return to a "debt-fuelled housing cycle", as the bank published its Financial Stability Report.

11/11/2009 – BUSINESS DAY

Reserve Bank Governor Alan Bollard warned of the need to avoid a return to a “debt-fuelled housing cycle”, as the bank published its six-monthly Financial Stability Report today.

The report said there had been signs of an easing in lending standards for residential borrowers in recent months, with some banks prepared to offer housing loans at relatively high loan-to-value ratios.

“The housing market is currently strengthening, but we believe house price growth will slow after the current recovery phase,” the report said.

“We would encourage the banks to avoid any return to riskier mortgage lending practices.”

House prices still looked relatively high compared to history, and were still higher as a share of income than at any time before 2005, the report said.

Despite the pick up in housing market activity, household credit growth had continued at low and steady rates.

Slow credit growth may reflect some highly indebted sellers repaying mortgages, as well as households accelerating principal repayments now interest rates were low.

“Overall, the housing market recovery is likely to be limited, and subject to downside risks as interest rates start to rise from very low levels,” the report said.

“Continued weakness in the labour market, along with falling agricultural incomes, could also weigh on the housing market.”

Current low levels of interest rates made mortgages look relatively affordable compared to recent history, particularly if the loan was financed using a floating mortgage, the report said.

But floating mortgage rates would eventually rise as the economy started to recover, possibly placing stress on some first-time home owners who had entered the market at very low interest rates.

Longer term fixed mortgage rates, which were significantly higher, were likely to be a better guide to medium term mortgage affordability.

Dr Bollard said the New Zealand economy and financial system had improved in the past six months as international conditions stabilised, but some risks and challenges remained.

Global recovery had been fuelled by stimulatory fiscal and monetary policy settings which could not be kept in place for ever, he said.

The global banking system also remained vulnerable to further shocks.

“The New Zealand economy needs to live more within its means to reduce its vulnerability to adverse developments in offshore markets,” Dr Bollard said.

While some progress had been made to recover savings and reduce the current account deficit, considerable adjustment was still needed to reduce this country’s vulnerability to external shocks.

Deputy Governor Grant Spencer said further loan losses for banks were likely as unemployment continued to rise through into 2010.

Banks’ recent provisioning and profit results reflected the deterioration in their asset quality during the recession, he said.

The banks remained “very cautious” in credit and funding decisions, and while the Reserve Bank generally supported that approach, it continued to emphasise that banks should not overly restrict lending to the business sector.

In the non-bank sector, further rationalisation and closures were expected as the sector faced the challenge in the coming year of meeting the requirements of the Reserve Bank’s new non-bank prudential regime.

NZPA

Insight into parties involved in a Trust

Asset Protection and Trust Services: Quay Law

In this ”legal hint” I intend to cover Family Trusts and some of the parties involved in a Trust.

Please find below a high level explanation  providing an insight into the three main groups of parties involved in a Trust:

 The Settlors: These are the persons who set up and transfer assets to the trust.

 The Trustees: These are the people who hold the legal ownership of the trust assets on behalf of the beneficiaries. 

 The Beneficiaries: They hold the beneficial ownership in the trust assets and include, amongst others, yourselves, your children and grandchildren. 

 For more information or if you have any further questions on Trusts and Asset Planning, do not hesitate to contact me.

 Ian Mellett BComm LLB H Dip Tax is a Barrister and Solicitor at Quay Law in Remuera, Auckland. Quay Law provides services in Wills and Estate administration, Estate Planning, Trusts and Asset Protection, Relationship Property, as well as Conveyancing, Commercial,  Immigration and other areas of law.

 www.quaylaw.co.nz

What a change of mood can do for the property market?

Extract from the Crockers Market Research Issue 52, November 2009

Last month we reported on the relative high point in net permanent and long term migration levels – with New Zealand’s net gain in population rising, we showed, primarily as result of fewer departures rather than more arrivals. Even with most new arrivals settling in Auckland, current migration patterns are not enough to account for the buoyancy of the local property market. So what is driving it? In our view, it’s latent demand. That is, people who have been putting off buying because of the recession, and who – collectively – have suddenly decided that, recession or no recession, it’s time to get on with life. It’s not that we’ve suddenly all become optimistic. In fact, we’re still worried about the prospect of losing our jobs (market research company Synovate reported in their May ’09 research study that for 33% of New Zealanders their biggest worry was them or the main household income earner losing their job – up from 29% six months earlier). In fact, New Zealand has one of the highest levels of concern in the Western world around job loss, way ahead of closest neighbour Australia. Despite this gloomy mood, the same research shows that people are now getting on with their lives. In November 2008, 23% of those surveys said they were delaying a major life decision. By May this year, this figure had tumbled to just 16%. Of those 16%, most said the two biggest decisions they were delaying were a change of job and buying into the property market. Further research since then, including data from the Westpac McDermott Miller survey, shows consumer confidence has risen despite GDP still failing to reach positive figures. While this confidence may be fragile, there is little doubt that people are bored with the recession, and are trying to turn themselves around attitudinally, as well as financially. The buoyant Auckland property market is perhaps the clearest sign so far that people have stopped delaying the big decisions in life, and are looking positively to the future.