Tommy's First Word - Fornightly Market Commentary

Tommy's First Word - Issue 179 current to 21st May 2013

Apartment living continues to be a viable option for many Wellingtonians. Not only is it a popular lifestyle decision for those who choose to give away the traditional quarter-acre section, but the existence of this growing inner-city population certainly adds to the vibrancy of Wellington. The mere presence of these inner-city residents creates activity in the city at nights and weekends and must certainly be a welcome source of clientele for restaurants and entertainment venues.  Imagine how quiet inner-city Wellington would be if an additional 15-20,000 of our working population emptied out to the suburbs and beyond, at 5pm daily? Spare a thought also for the added pressure on our transport systems and carriage ways to and from the city!

Tommy's First Word - Issue 178 current to 7th May 2013

Every time I write about the market or tell people just how well sales have been going I always know that there will be home owners out there asking ‘if the market is that good how come I can’t sell my house?’ A good question and one that we are often confronted with in the industry. Whilst our success rate at Tommy’s is among the best, there will always be properties that don’t sell as quickly as others and there are often some obvious reasons why this is so. For home owners in this category, and for the benefit of those who may be considering selling, I will list a few of the reasons some properties take longer than others to sell. I hope that this information may be helpful.

Tommy's First Word - Issue 177 current to 23rd April 2013

Over the years I have regularly promoted the virtues of residential property as an investment vehicle that is within the reach of many average every day Mums and Dads and of course their families too! In particular, home owners who have either repaid all their mortgage debt or have gained a sizeable equity in their family home that they can borrow against, are people I have encouraged to invest in another property. I can think of numerous people who have done exactly this and have established for themselves a retirement nest egg while also enjoying many of the good things in life on the way through because of the returns from their residential property investments.

Tommy's First Word - Issue 176, current to 9th April 2013

The lifeblood of any real estate agency, and in fact of any sales person within the industry, is having  sufficient property to sell or, as we call it in the industry, having enough ‘stock’ to satisfy buyer demand. Although we work in a service industry, in reality, we are little different to a retailer in many respects! If a retail outlet lets its stock levels fall, they are immediately at a disadvantage and unable to offer a selection of products thereby encouraging buyers to look elsewhere to satisfy their buying needs. Our main point of difference of course, is that in real estate we don’t have to buy our stock – but we are very dependent upon offering a service and producing positive results that then makes us a realistic option for the home selling public to engage with.

Tommy's First Word - Issue 175, current to 26th March 2013

Ownership of property should be a rewarding experience; after all, you probably worked hard and made sacrifices while saving for a deposit. A logical goal for every homeowner therefore should be to get the best they can from their investment. I call it an investment, and that’s the best way to consider any property purchase irrespective of whether it has been acquired to produce a rental return or for the housing of your family and dependents. Achieving the rewards you deserve cancome in various ways of course; by producing a profit on eventual resale, as a means of saving, or simply by providing a home-base that enhances the lifestyle of you and your family, or perhaps even a combination of these factors. So what steps do homeowners need to take to maximize the profit potential of their investment?

Tommy's First Word - Issue 174, current to 12th March 2013

The Real Estate Agents Authority (REAA) has issued members of the real estate industry with a new set of "Professional Conduct and Client Care Rules" that come into effect from 8th April 2013. One of the new provisions specifies that both buyers and sellers of property be given adequate opportunity to engage legal advice before executing any documentation relating to the sale or purchase of a property. Personally, I doubt that anyone who has wanted to seek legal advice in the past has been denied that opportunity, but the new rules place a stronger onus on real estate licensees to make this right known to all parties to a property transaction.

Tommy's First Word - Issue 173, current to 26th February 2013

At this time each year we often receive requests for property appraisals from home owners who have enjoyed holiday time throughout New Zealand or beyond and return home restless, eyeing up what they deem to be greener pastures elsewhere. Their motivation for a change of scenery can be coloured by the enjoyment of their holiday location, it could be inflenced by the genuine need for a lifestyle change or it could simply be something that has been on their minds for a while. Family time together in a relaxed atmosphere, free from work pressures is often a good time to make these important life changing decisions.

Tommy's First Word - Issue 172, current to 12th February 2013

In the few short years that the Real Estate Agents Authority has been responsible for administration of our industry we have been subjected to many changes and more rules and regulations than were ever in place before. Considerable emphasis has been placed on professional conduct and client care and while all this has undoubtedly shaken some of the bad fruit from the real estate tree one must question just how successful this process has been. There is no doubt that costs have increased dramatically for real estate practitioners, but also, the industry’s administration costs must surely have gone through the roof!

Tommy's First Word - Issue 171, current to 29th January 2013

Refreshed from the Christmas holiday break, many will be wondering what the real estate market has in store for us all this year. If the end of 2012 is a reliable indicator and a forerunner of what lies ahead, I think we can expect to see a market that produces positive results for vendors and some good opportunities for home buyers. Although my opinions are not those of an economist or regular market commentator, they are based on the solid facts of the marketplace and for that reason alone, I believe them to be credible.

Tommy's First Word - Issue 170, current to 15th January 2013

WE WISH YOU A MERRY CHRISTMAS,

WE WISH YOU A MERRY CHRISTMAS,

WE WISH YOU A MERRY CHRISTMAS

AND A HAPPY NEW YEAR

Tommy's First Word - Issue 169, current to 18th December 2012

There have been some strong indications of a resurgence in real estate market activity in

recent months and this has culminated in November being one of the better selling months

that we have witnessed for some time. The best barometer that I have available to me when

analyzing the real estate market is the number of sales being transacted by our own network

of Tommy’s offi ces and in particular our Wellington city offi ce where I have a daily “hands on”

role. I can state with some confi dence that home buyers have moved through the phase of

economic uncertainty and are getting on with life. This applies to both properties for home

occupancy and those for property investment.

Tommy's First Word - Issue 168, current to 4th December 2012

Over the years, I have always attempted to comment on matters of real estate importance as I

see them. Sometimes being controversial, sometimes being critical of biased media reports, and

sometimes in a manner that has been interpreted as being the one-eyed views of a real estate

agent. I have been applauded and criticized but I guess that goes with the territory, and, as I am

sure John Key would agree; you can’t please all the people all the time! My thoughts in this issue

of the Tommy’s Lifestyle Magazine are sure to bring the common response that they are made

by a person with a biased point of view, and I guess they are. However, even though I am on a

“hiding to nothing” I am going to make them anyway, as I think they are important enough for any

prospective home seller to ponder.

Tommy's First Word - Issue 167, current to 20th November 2012

ABOUT TO SELL YOUR HOME? BE WARNED!

One of our competitors is currently making outlandish claims in the media about how they are achieving higher prices by tender and that they are delivering the "best" results as compared to all other companies.

We believe this real estate company is misleading the public into believing their sales results are better than they really are!

We also believe they are manipulating the industry statistics to deceive the selling public!

Food for thought: If a real estate company advertises that they are achieving sales by tender that are higher in price than those that all their competitors are achieving, you as a home owner could fairly believe this statement to be true, and you could well list your property for sale with that company as a consequence.

Tommy's First Word - Issue 166, current to 6th November 2012

Wikipedia defines spring as one of the four temperate seasons, the transition time between winter and summer. Spring and springtime refer to the season and also to ideas of rebirth, renewal and regrowth. To me, this definition relates perfectly with the real estate market as we are at present seeing the rebirth, the regrowth and the renewal of activity as homeowners come out of winter hibernation. We are witnessing the usual flurry of home decorations and alterations, an increase in gardening and landscaping activity, and above all a definite increase in property coming onto the market for sale.

Along with most real estate agencies nationwide we have bemoaned the fact that over the winter months there has been a shortage of good property for sale to satisfy the buyer interest created by the availability of finance at unprecedented low interest rates. It appears though that we may have turned the corner and if the listing activity of October is sustained, there will be a greater choice of property for home buyers in the lead in to Christmas. Historically November through until February are popular months for real estate activity, so it will be great if we are able to offer a larger range of property for sale in this time.

Tommy's First Word - Issue 165, current to 23rd October 2012

Inner-city living continues to have appeal for growing numbers of people it seems, with strong interest and resultant sales still being made to buyers from a wide cross-section of the community. Our best estimates are that there is probably a population of around 15,000 people living in apartments within the city confines. So who are these people and what draws them to inner-city living?

A Wellington City Council survey conducted in 2008/9 revealed the following details about this group of City residents:-
• About 12% of apartments housed families with children. This was higher than most would have expected.
• Not all apartment dwellers were students or young people. 49% who responded to the council survey were over the age of 45 years.
• In general, apartment dwellers were earning above-average household incomes.
• Almost half of the survey respondents lived in a two-person household.
• The main reasons cited for living in an apartment were lifestyle and city living and for closer proximity to work.
• 31% of respondents didn’t own a motor car.

Tommy's First Word - Issue 164, current to 9th October 2012

From time to time in this column I have been critical of some of the media reports on topics related to housing and to the state of the housing market generally. Housing is such an integral part of our lives and wellbeing that it is understandable that articles concerning the housing market and the affordability of housing gain such prominence and I am sure, are usually well read. It is important therefore that they are credible and meaningful which in my humble opinion is not always the case.

A recent article which I read with much interest though, was published in the Sunday Star Times, 9 September, under the name Catherine Harris; a person whom I don’t know, but I thought the article was interesting, logical and provided a point of view which made a lot of sense. Ms Harris suggested that housing today was less affordable largely because consumers’ expectations were too high. Let’s be honest; generally, we all want more than what our parents and their parents were happy to accept, particularly in the case of a first home.

Tommy's First Word - Issue 163, current to 25th September 2012

There is no disputing that real estate sales numbers fluctuate seasonally and this is without taking into account economic factors which influence the market irrespective of the seasons. Winter is historically slow although a number of astute home sellers right now are taking advantage of the fact that there is a reduced selection of homes for sale and consequently, less competition for home sellers. A number of home owners this year have taken heed of our suggestion that the winter market should be embraced, not avoided and have capitalized on the selling opportunities that have been presented to them.

Tommy's First Word - Issue 162, current to 11th September 2012

Success and failure in sport have many parallels in the business world; parallels that I have often drawn on when training sales staff at Tommy’s Real Estate Ltd. In our early days, I often talked about the work ethic, the desire to win, the individual skills and above all, the teamwork of the great Australian Cricket team of a decade ago that stood supreme in the world rankings, though perhaps their current team would not be such a shining example of unified success. However, there are plenty of comparisons between the star qualities of successful sports personalities and those that business stars possess that are relevant.

Tommy's First Word - Issue 161, current to 28th August 2012

I was interested to read in the Sunday Star Times of 29th July an article suggesting that activity in the property market was driven by the “four D’s”; Death, Divorce, Debt and Desire. The article was based around a BNZ-Real Estate Institute survey over the preceding 18 months and will come as no surprise to most of us in the industry, as there is nothing new in the findings of this survey. Perhaps I would add another to the list, and that would be “diversification” for reasons which I will explain later.

Tommy's First Word - Issue 160, current to 14th August 2012

There is no disputing that real estate sales numbers fluctuate seasonally and this is without taking into account economic factors which influence the market irrespective of the seasons. Winter is historically slow although a number of astute home sellers right now are taking advantage of the fact that there is a reduced selection of homes for sale and consequently, less competition for home sellers. A number of home owners this year have taken heed of our suggestion that the winter market should be embraced, not avoided and have capitalized on the selling opportunities that have been presented to them.

Tommy's First Word - Issue 153, current to 22 May 2012

Our initial business objective was to run a small boutique agency that cared about people; never in our wildest dreams did we anticipate assembling a sales team the size we have today. This came about largely because of public demand. There was a gap in the market that was not being fully serviced by existing real estate agencies and we were able to recruit good people, mainly from outside the industry, who we were satisfi ed shared our beliefs for how a good real estate salesperson and a successful company should operate.

Tommy's First Word - Issue 152, current to 24 April 2012

There is an old saying though that tells us that “it takes two to tango” and that is true of a property transaction. Without a willing buyer as well as a willing seller, there would be no sales taking place, and agents also have certain moral and legal obligations and a duty of care to protect the interests of buyers. In my view, this is equally as important as discharging our fi duciary responsibilities professionally. Recognizing just how important home buyers are to our livelihood as residential real estate agents, I thought it was appropriate to devote my column in this edition of Tommy’s Lifestyle Magazine to buyers; what they look for, and what they should expect from our industry.

Tommy's First Word - Issue 151, current to 10 April 2012

The birth of the Real Estate Agents Authority (REAA) has bought with it a complete change of mindset, it has undoubtedly lifted standards of practice, which is commendable,and has put all agents on notice that they have a significantly higher level of responsibility and accountability than what they needed to observe under the old 1976 Real EstateAgents Act. The industry as a whole welcomed the introduction of a new Act recognizing that the 1976 Act was obsolete in many areas, but few of us believed that the changes would be as dramatic as they have been – and this seems to be anongoing story.

Tommy's First Word - Issue 150, current to 27 March 2012

I was asked recently “are we over the worst of the financial crisis and the depressed property market that has been part of that cycle?” Ask the same question to different people in the real estate industry nationwide and you are likely to receive varying answers. Ask economists that question and you are also likely to get a variance of opinions. The truth of the matter is that the degree of energy and positive activity in the market does vary from one location to another and I can only speak with confi dence of the area that I know best, which is Wellington City and its environs.

I have said many times before that the property market is cyclical and it is my opinion that we are at a stage in the property cycle that is past the low point and somewhere between there and the high point of 2 – 3 years ago. The bottom of the cycle has been cruel to many, with some home owners struggling to meet their price expectations. A large number of speculative buyers often with highly-geared borrowing arrangements have also come unstuck in this period. Mortgagee driven sales have become a regular occurrence and the recession has also taken its toll on many who sell real estate with industry numbers having decreased significantly.

Tommy's First Word - Issue 149, current to 13 March 2012

I was reflecting recently on how much we rely on the media! By the media I am referring to this oasis of information in its many and varied forms. We clamber for the newspaper every morning; we listen to the radio and of course, hasn’t the electronic media come into its own in recent years, now playing such a big part in the lives of most of us? We rely on the media in one form or another to keep us up to date on public affairs, local and international news, sports events and a myriad of other happenings worldwide. It also provides us with entertainment, leisure reading and is generally the font of information that most of us rely upon.

You will be wondering where I am heading with this topic and of course with my avid interest and involvement in real estate, my media focus is strong. Tommy’s relies heavily on the print media mainly for the promotion of our
business and the properties of the home owners that we represent. We are significant advertisers in the Dominion Post each Saturday and of course, the Tommy’s Lifestyle Magazine that contains this article is also an important part of our
promotional strategy. Readers will also agree, I am sure, that real estate news makes popular reading and features regularly in media
headlines.

Tommy's First Word - Issue 148, current to 28-February-2012

Buying or selling a property is a major undertaking in the lives of most people. For the uninitiated, a housing transaction requires the guidance of at the very least, a competent real estate agent; and in some situations seeking reliable legal counsel is also advisable. This is a course of action that we often recommend particularly with some of the more complex transactions that we encounter from time to time.

Being a city-based company, Tommy’s handle the marketing and sale of a large number of apartments and properties involving a Body Corporate structure and Unit Title ownership. This is of course a widely accepted form of property ownership but does have special considerations that don’t come into play with the standard Fee Simple title structure of most “stand alone” residential homes. The situation has become even more complex with the introduction in June 2011, of the Unit Titles Act 2010.

Tommy's First Word - Issue 147, current to 14-February-2012

In this column I have often commented on the state of the market and what effect the economy was having on the sale of residential properties. Other commentators have given the subject an equal amount of airing and as real estate agents we are regularly asked “what is happening in the market and where is it heading?” Oh for a crystal ball so we could answer these questions with a degree of certainty! The last couple of years have been something of a rollercoaster ride with the market seemingly, at times, in free-fall followed by a period of recovery and even an enhancement in average prices in certain areas. Personally I have been encouraged by the sales figures of the Tommy’s group over November and December 2011 and I believe that this augurs well for a more stable marketplace through 2012.

One aspect of our industry that has changed markedly yet, to my knowledge, has had little publicity is a significant fall off in the number of salespersons over the last 4 years or so. My understanding is that the number of active licensed salespersons has reduced by something in the order of 4000 people and this is due to a number of factors.

Tommy's First Word - Issue 146, current to 31 January 2012

New Year is well known as being the time for making new resolutions and setting personal and family goals. Many people do this and no doubt it often helps in focusing on making life better for those who have the fortitude to stick to their planning aspirations. From a business perspective there is merit in doing so and along with most other New Zealanders; I have had holiday time in which to relax and to think with a clear head and without the day to day demands of running a successful business. My thoughts of course are mainly about real estate from not only the Tommy’s perspective, but with a wider view and to consider what I expect for or would like to see happen in our industry in the year 2012.

There has been a clear message that the Reserve Bank has a mandate to get the economy moving and whilst every step will be taken to ensure the lid is not lifted totally on property sales, all the indications are that the authorities would like to see a little more vibrancy in the real estate market than has been the case in 2011.

Tommy's First Word - Issue 145, current to 17 January 2012

Forward planning is exactly that. Looking ahead to see where your business is going and planning for future initiatives and improvements. In this article though, I am going to look back; to look at the year in retrospect; a year that has been particularly challenging, but nevertheless one in which the Tommy’s brand has remained prominent and the brand of first choice for many Wellington house buyers and sellers. A year that has been made for the grafters in the industry rather than the “flash Harrys” who ride the crest of a good market and then disappear when the going gets tough!

It is a statistically proven fact that 2011 has recorded one of the lowest levels of house sales in the Wellington area in the last decade. Throughout this fragile market Tommy’s has maintained, and in some areas increased its market share.

Tommy's First Word - Issue 144, current to 20 December 2011

One of the key factors in running a successful real estate business in changing times is to constantly look ahead and endeavour to focus on what the market is likely to be doing in two or three months’ time. It is important to forward plan as the old, but true saying goes; “failing to plan is planning to fail”. I am the first to admit that the management at Tommy’s is not as structured as perhaps it could be in terms of target and goal setting, but our success has been built on “hands on management”, understanding the market and it’s vagaries, development of people and people skills and astute marketing. When selling a house, you don’t have to tell the whole world, but it is important to attract the attention of the right buyers for any particular property.

Now let’s analyse some of the bold statements that I have just made above.

Tommy's First Word - Issue 143, current to 6 December 2011

Judging by the sales levels at Tommy’s, the usual spring increase in activity is with us now, although I must  concede that early spring (September into October) was lethargic this year to say the least. Generally we put this  down to all the public energy and enthusiasm being focused on the World Rugby Cup, but this is probably a bit too simplistic and I guess that the lethargy of the national and international financial and commercial economies was the real reason. However, this has changed and there is a marked increase in activity in November. Where  this will lead to only time will tell!

Movements in market activity are commonplace in New Zealand. We have come to accept that the winter months  are usually slow, while spring inevitably brings an increase in activity; more houses for sale and an influx of  buyers who have been hibernating during the winter and waiting for the increased selection of property for sale. Is  this marked difference in market activity fact or perception, though?

Tommy's First Word - Issue 142, current to 22 November 2011

Consumer legislation mainly in the form of the Fair Trading Act and the Real Estate Agents Act 2008 has materially changed the face of what were simple real estate transactions in previous times. I can recall when a  sale and purchase agreement was a simple, single page document; often completed on the spot in either the vendor’s or purchaser’s house or even in the agent’s motor vehicle. How times have changed! Sale and Purchase documentation is far more complex these days and the implications of any indiscretions or misinformation are far-reaching.

There was a time when there were no disclosures or warranties given or expected from the vendor of a house property and the principal of caveat emptor or ‘let the buyer be aware’, was very much in vogue.

Tommy's First Word - Issue 141, current to 8 November 2011

By the time that this article goes to print, the World Rugby Cup will be all over! The visiting teams and most of their  supporters will have returned home to plan how they can do better next time. Although the outcome of the  tournament is not known at the time I am preparing this article, from a New Zealand perspective, the tournament  can only be described as a success. Kiwis have generally grasped the opportunity to welcome and support the  tournament and ensure that the thousands of visitors to our country have had a good time.

The success of the tournament cannot be measured solely in monetary terms; if it were that simple then there  would be many who believe that the costs far outweighed the benefits.

Tommy's First Word - Issue 140, current to 25 October 2011

Everyone who owns a property or has an interest in purchasing or selling property has a vested interest in the current market place; what is happening out there, what does the future hold and is now a good time to buy or sell? Interestingly enough, it is possible to interpret market statistics to tell whatever story is required and, like the general public, I read the stories of good times and bad times. Many market commentators seem to thrive on bad  news whereas I tend to look for the positives and can quite candidly state that I believe real estate still remains the best vehicle available for rank and file Kiwis to accumulate wealth.

Being in the business, we have access to all the latest market data but my opinions are more often based on how  the market is affecting Tommy’s business. To me, this is “grass roots” data which I can substantiate by actual  sales in the area in which we operate.

Tommy's First Word - Issue 139, current to 11 October 2011

What a month it has been in New Zealand! Even if you are not a rugby fanatic it would be difficult not to enjoy the buzz that the Rugby World Cup has created throughout the country. How wonderful is it to see not only the main centres enjoying tourists in their thousands, but that provincial centres have also rolled out the red carpet for their  special guests? Wanganui has welcomed the American team and its supporters, Gisborne is hosting Namibia and Queenstown extended a warm welcome to the Irish contingent; just as an example of the hands of friendship that have been extended to all participating in this huge event.

On a sadder note, it is timely to spare a thought for our Cantabrian neighbours who have been stripped of any direct participation on the rugby field by their series of devastating earthquakes but who are no doubt, still receiving and welcoming thousands of visitors to their  city. Christchurch, with such a proud history in the sport will still mark the occasion in an appropriate manner and have of course, a strong contingent of their players representing the All Blacks.

Tommy's First Word - Issue 138, current to 27 September 2011

Buying or selling a property is a major undertaking in the lives of most people. For the uninitiated, a housing transaction requires the guidance of at the very least, a competent real estate agent; and in some situations seeking reliable legal counsel is also advisable. This is a course of action that we often recommend particularly with some of the more complex transactions that we encounter from time to time.

Being a city-based company, Tommy’s handle the marketing and sale of a large number of apartments and properties involving a Body Corporate structure and Unit Title ownership.

Tommy's First Word - Issue 137, current to 13 September 2011

By the time this article is published, the commencement of the World Rugby Cup tournament will be imminent. In fact, it will be less than two weeks until the 85,000+ expected visitors descend on New Zealand, for what is probably the world's third greatest sporting extravaganza behind the World Football Cup and the Olympic Games.  It is incredible, when we pause to consider, that a country as small as ours and so remote from the rest of the  world's population has been entrusted with such an event. So what will all this mean to New Zealand? What are  the main factors motivating vendors to sell?

Government backing for the event is substantial with the hosting costs reported to be as high as $39M; a huge  amount of money and at a time when everyone, here and abroad, is talking, reading and hearing about economic  recessions and financial hardship. 

Tommy's First Word - Issue 136, current to 30 August 2011

The reasons why people buy and sell houses are many and varied. Each month the Real Estate Institute of NZ and the Bank of New Zealand, through their chief economist Tony Alexander, produce a Residential Market Survey gauging public interest in housing matters and identifying the reasons that motivate people to buy and sell residential real estate. This report makes interesting reading and I enclose extracts from the July survey for your information.

What are the main factors motivating vendors to sell?

Tommy's First Word - Issue 134, current to 2 August 2011

There wouldn't be too many topics that receive as much media attention as items relating to
real estate and the past few weeks have been no exception. All forms of media and the print media and television in particular, feast on real estate news and of course in more recent times we all look to the electronic media for “hot off the press” news relating to all things that are newsworthy. We get bombarded with statistics telling us that the market is good or bad and of course that depends on whose glasses we are looking through; the home buyers or the home sellers.

A topic that has created a good deal of media attention is the policy decision being promulgated by the Labour  Party to introduce a capital gains tax. Although the details of such a policy are far from clear at the time I am producing this article, it would be fair to say that it is a policy that I think has very little merit!

Tommy's First Word - Issue 134, current to 2 August 2011

Selling a house is deemed to be one of the most traumatic experiences that people face in their day to day lives. Tommy’s of course don’t see it that way but being conscious of general perceptions, we do go out of our way to make the sale process as seamless as possible for our clients. Sales people at Tommy’s are trained and encouraged through regular contact and consideration for our vendor clients’ private lives to avoid disruptions as much as possible in pursuing our main goal of obtaining the best possible sale price for property entrusted to us.

There are a lot of things to consider when moving house other than finding the right buyer for your home.    Recognising this, Tommy’s has produced a booklet entitled “The Big Move”. This booklet is available on request,  from any one of our offices, to anyone who may be interested.

Tommy's First Word - Issue 133, current to 19 July 2011

At Tommy’s, we love selling houses! After all, that’s what we set up business for and what we have been doing  successfully for the last 12 years or so. A house sale is a much more pleasurable experience for all if both vendor  and purchaser are happy with the outcome and that is the situation that we strive to achieve. Whilst we have a  fiduciary obligation to protect the interests of the vendor, equally we have a moral and a legal obligation to the  purchaser. It is important that purchasers receive sound advice with full disclosure of all facts of which we are  aware in regard to the property changing hands.

The media tells us that right now we are operating in a buyers’ market and that it has never been easier to purchase a home. There is some substance to this statement with the market being a little slow, some reduction  in prices in many areas, and with mortgage finance being both readily available and at competitive rates.

Tommy's First Word - Issue 132, current to 5 July 2011

Recent figures released by the Real Estate Agents Authority revealed that at re-licensing time; 31st March 2011,  only 75% of those previously approved as sales persons, branch managers or licensees renewed their licences  for the current year to March 2012. This leaves 13,902 active licences to serve the public of New Zealand. Some  3199 licences were suspended meaning that they can re-enter the selling force at any time, and some certainly  will as the figure includes a large number of Canterbury agents who will no doubt return to the industry as life  regains some normality for them.

The significant “drop off” in licensed sales people was entirely predictable when one considers the economic climate, the increased costs of remaining licensed and the fact that  the industry has been over populated.

Tommy's First Word - Issue 131, current to 21 June 2011

There is an old saying that when the going gets tough, the tough get going. Sure it’s a hackneyed phrase, but I believe it is still true! We all know of tough situations when someone with a little courage and a lot of foresight has taken advantage of the circumstances by an initiative that pays dividends at a later date. I wonder if perhaps such a situation exists right now in the residential property market. For those who are prepared to chance their arm a little, defy the sceptics and start or expand their portfolio of residential property investments, the medium to long term results could be rewarding.

I say medium to long term for the simple reason that I have always seen property investment in this light and not necessarily a way of accumulating wealth overnight. It is no secret that experienced property investors prefer a   market when most people are a little on the back foot and competition is minimized.

Tommy's First Word - Issue 130, current to 7 June 2011

Perhaps I am over-sensitive but this is the second time in a few weeks that I have taken umbrage at a newspaper article. It sickens me that reporters have freedom of the press to say what they like about the real estate industry without anyone taking the time or the trouble to question their statements or their motives. I would have thought that it was a role that our national body, the Real Estate Institute of New Zealand could be more proactive in - but then again, perhaps that would not be politically correct? Being PC has never been a concern of mine however, I prefer to say it as I see it and to stand behind my convictions.

The article I refer to was written by the Money Editor of the Sunday Star Times, Rob Stock and appeared in their newspaper on Sunday 15th May 2011. To quote Mr Stock’s opening paragraph:- “House-hunting is a process in which one seeks to sift lies from truth, followed by a price negotiation in which hope, fear, misinformation and psychology play equal parts.”

Tommy's First Word - Issue 129, current to 24 May 2011

I have often thought how difficult it must be for members of the public to know exactly what is happening in the real estate market at any given time. We read so many conflicting reports from so called experts that even those of us close to the action wonder at times if we are operating in a different marketplace than the one that we are reading about. We all know that economists can make statistics work to suit their point of view but so too can newspaper reporters as evidenced by recent articles in the local Dominion Post newspaper.

The Dominion Post of 28th April reported in bold headlines; “House prices tipped to lift”. The article was based  around a report from the Westpac Bank’s chief economist and predicted that house prices were set to rise by 4%  this year. This I believe is a reasonable and modest assumption bearing in mind the availability of relatively cheap borrowing rates and evidence of greater positivity in the general economic situation ahead.

Tommy's First Word - Issue 128, current to 10 May 2011

With the market indicators telling us that we are, perhaps, through the worst of what has been a global recession, I would like to pay tribute in this issue to our staff who have weathered the storm with us and who I am sure will prosper now under more favourable market conditions. Media reports from Auckland attributable to major players Barfoot & Thompson Ltd have been particularly positive in the last few days. Similarly, we have also experienced considerably more positive activity at our own offices in the last couple of months than what has been the case for some time now.

The Real Estate Industry has not only been through difficult market conditions as has everyone else, but we have also experienced major changes with the introduction of our new governing body; the Real Estate Agents Authority.

Tommy's First Word - Issue 127, current to 28 April 2011

Without wishing to dwell on the tragedies of recent months, who could have foreseen or believed possible the events that have unfolded before us both locally and worldwide? Scattered pockets of civilization have been ravaged by floods, typhoons, earthquakes and a tsunami of horrific proportions. Among all this, we must not forget and empathise with those who lost family and friends in the Pike River Disaster even though it was perhaps not of the same magnitude as the earthquakes of Japan and Christchurch. However, numbers are not the criteria we should measure the extent of any disaster by; as each and every person lost means the loss of skills, expertise and above all, the loss of someone who was dear to their immediate family and friends.

Tommy's First Word - Issue 126, current to 12 April 2011

For each fortnightly issue of the Tommy’s Lifestyle Magazine it is a challenge for me to ensure that this column contains a theme that is topical, of interest to the public generally and above all, has some relevance to real estate and what is happening in the real estate marketplace.

To meet this objective for the current issue of our magazine, I have chosen to talk a little bit about the market in our area and elsewhere, and touch on some thoughts for the remainder of 2011.

Tommy's First Word - Issue 125, current to 29 March 2011

Competition is an important ingredient in any business environment. Real estate is no exception and over the years there has been no shortage of strong and capable operators for us to compete with for our business.

Some have entered the field in a blaze of glory and have done well while others; usually the discount operators, have come and gone quite quickly. Competition drives us all to provide a better service than our competitors; it keeps us on our toes and ensures that we don't take things for granted in our day by day business activities. It is with interest therefore that I have read and observed the media frenzy surrounding the possible launching of yet another cut price real estate operation by Mike Pero, the founder of Mike Pero Mortgages in 1990.

Tommy's First Word - Issue 125, current to 29 March 2011

Competition is an important ingredient in any business environment. Real estate is no exception and over the years there has been no shortage of strong and capable operators for us to compete with for our business.

Some have entered the field in a blaze of glory and have done well while others; usually the discount operators, have come and gone quite quickly. Competition drives us all to provide a better service than our competitors; it keeps us on our toes and ensures that we don't take things for granted in our day by day business activities. It is with interest therefore that I have read and observed the media frenzy surrounding the possible launching of yet another cut price real estate operation by Mike Pero, the founder of Mike Pero Mortgages in 1990.

Tommy's First Word - Issue 123, current to 1 March 2011

The subject of real estate and in particular, residential real estate is never far from the forefront in the media and in our day to day discussions and deliberations.

 At any social gathering, mentioning the fact that you are involved in the real estate industry creates an instant and popular conversation topic and everyone that owns a house or residential investment is interested to know what the market is doing. It is a popular belief that Kiwis have a love affair with real estate and as I have said so often, we deal daily with significant numbers of ordinary people who have gained themselves a comfortable and secure lifestyle through real estate investment. Information is always welcome by them!

Tommy's First Word - Issue 122, current to 15 February 2011

As New Zealanders fold their tents after the summer vacation period and return to the work place, many will be wondering what 2011 has in store for them.

January has come and gone and as it always is, it has been a month where there is a gradual procession of people coming back to the real world, some extending their vacation periods until after Anniversary weekend. As always, it seems to take the country a month to wind back into full production mode!

Tommy's First Word - Issue 121, current to 1 February 2011

Refreshed from the Christmas holiday break, many will be wondering what the real estate market has in store for us all this year. Whilst I do not profess to have the skills or the special knowledge of an economist, for obvious reasons I am a consummate watchdog of all things pertaining to real estate and the economy generally. Based on this direct interest, my observations, and my own experience in the work place, my opinion is that 2011 will perhaps return to a more normal pattern after the economic downturn of the last couple of years.

Why do I think this will be the scenario? Firstly, I believe that there are a lot of people who have deferred home buying and selling decisions for the last couple of years. They have waited for a market that was more reliable, they have waited for a time when they may expect better prices or perhaps they have weathered a period of job uncertainty.

Tommy's First Word - Issue 120, current to 18 January 2011

As another year draws to an end, it is always a good time to reflect on achievements; to look ahead to the coming year, to plan where we want our businesses and our personal lives to be this time next year and to look back and see what we could have done better.

Regular reviews of what we do and the way we do it has always been a feature of Tommy’s planning. We endeavour to look at our business through the eyes of our clients or from the customer’s perspective as after all, we are in a service industry and top level service is what we have to offer to keep ahead of our industry competitors.

Tommy's First Word - Issue 118, current to 7 December 2010

I recently read with interest the findings of a survey of 1000 established property investors. The survey was conducted by the ANZ Bank with the help and support of the New Zealand Property Investors Federation and sought opinions on the current state of the property investment market and the expectations of investors for the next 12 months.

The results are interesting and largely in line with what we are finding at the coal face of real estate; an investment sector that is cautious and to some degree, in a holding mode at the present time.

Tommy's First Word - Issue 119, current to 21 December 2010

For the last couple of years we have read, heard and spoken so much about the depressed economy both locally and globally that our minds have become fixated with visions of doom, gloom and depressive thinking often to the ongoing detriment of our businesses and our family life.

Sure, there are instances of hardship but most of us have still enjoyed three meals a day, a roof over our heads and a warm bed to sleep in. What a true reality check we have had though in recent weeks firstly with the Christchurch earthquakes and very recently with the Pike River mining tragedy. Disasters of such magnitude make us all stop and think and to realize that there is always someone a whole lot worse off than we are!

Tommy's First Word - Issue 117, current to 23 November 2010

Spare a thought for the role of a real estate agent in the sale of a residential property. On one hand we have the legal and moral responsibility to serve the best interests of the home seller; after all they’re the ones who pay the fee at the end of the transaction.

On the other hand, we have an equal responsibility to the home purchaser to give full disclosure of all facts relevant to the transaction and to treat them with fairness and total honesty. In other words to create an even playing field.

Tommy's First Word - Issue 116, current to 9 November 2010

It is almost 12 months since the Real Estate Agents Act 2008 took full effect giving politicians, the administrators of the Act and the Real Estate Industry time to bed down the changes, learn to work with a new regime of governance and to assess its practicability.

The Act was the brainchild of the then Associate Minister of Justice Clayton Cosgrove and the Labour Government, and was introduced with a fanfare of grandstanding by Mr. Cosgrove and his Labour party cohorts.

Tommy's First Word - Issue 114, current to 14 October 2010

In recent issues of Tommy's Lifestyle Magazine, I covered some of the key points that home buyers, and in particular first home buyers, should take into account before making a buying decision.

The list of considerations is never-ending but to conclude this series of articles, I will add a few more of what I believe to be critical considerations for prospective home buyers to consider.

Tommy's First Word - Issue 95, current to 19 January 2010

Since its inception a decade ago, Tommy´s Real Estate has always endeavoured to be market leaders rather than followers.

Our business has been successful and we believe that this is a byproduct of delivering to the public a service that was fair and ethical and transparent in all respects. One key aspect of our transparency has been in our ongoing belief that the public looks for and appreciates  our advertising containing a price guide; a practice that not all agencies observe. Followers of the industry will have noticed that even more real estate companies have stopped advertising price guides since the new Real Estate Agents Act came into effect on 17th November.

Tommy's First Word - Issue 96, current to 2 February 2010

Will 2010 be the year that real progress is made in assisting the home owners who have been victims of what is probably the greatest disaster of the building industry in living memory?

I refer of course to the problem of leaky homes which has caused so much anguish for many home owners, builders, local authorities and the government of the time. Perhaps, from what we hear as this article is being prepared, there will soon be some joy for those who have been so badly affected through owning a leaky home? Provided the assistance offered goes far enough, this would surely be the best New Year present leaky-home owners could wish for.

Tommy's First Word - Issue 97, current to 16 February 2010

There is no doubt that the media in particular and the public generally keep a close watch on what is happening in the real estate market and associated industries. Matters allied to real estate take a prominent position in the news media and this is hardly surprising considering the passion shown by the average Kiwi towards home ownership and property investment.

Real Estate takes a large share of the blame for the country´s rate of inflation, for creating tax dodges for smart investors and for enticing people to invest beyond their means. However, our industry can also take great credit for enabling average people to accumulate wealth and for providing rental accommodation for thousands of others; important matters that are perhaps sometimes overlooked by our policy makers.

Tommy's First Word - Issue 98, current to 2 March 2010

Considerable interest has been taken in the recent pronouncement of Prime Minister John Key regarding the economy and likely future taxation changes.

The plans of government were eagerly awaited but to me, the stated intentions of Government were little more than a summary of recommendations from his advisors. It is a case of John Key putting his toe in the water to test the reaction of the public at large. If too hot, he can still back off, but if the public reaction is receptive, then the changes are likely to be introduced in the May budget.

Tommy's First Word - Issue 99, current to 16 March 2010

Forward planning is essential in the business world. We've been running our business for a decade now, so we know the importance of looking ahead.

Equally important, we reflect on things that have worked; trying to improve areas that may not have been quite so good, and trying to keep on top of our game plan. During this evaluation process, one constant is the importance of loyalty and its impact on our business.

Tommy's First Word - Issue 100, current to 30 March 2010

Residential real estate gets more media attention than any other sector.

Some believe all publicity is good, but it’s very confusing for house buyers and sellers because the current mixed messages make it difficult – especially for novices.

Tommy's First Word - Issue 101, current to 13 April 2010

In our last issue we commented that it was our 100th issue of the Tommy's Lifestyle magazine. One hundred issues of promoting Wellington, Johnsonville, Hutt Valley and Kapiti Coast properties.

And more recently of course, we have added our latest office at Mana to the group servicing from Tawa to Pukerua Bay and the suburbs in between. Now in our 12th year of operation, Tommy's has enjoyed fantastic public support and from our point of view, it has been a very successful journey.

Tommy's First Word - Issue 102, current to 27 April 2010

The Real Estate Agents Act 2008 came into effect on 17th November 2009 introducing a wide range of rules and regulations governing those involved in the real estate industry.

Primarily designed to improve the integrity of the industry, the Act has been the catalyst for the formation of a new governing body; the Real Estate Agents Authority. Compliance with the new Act by licensed real estate operators demands a new level of fairness, ethical behaviour and transparency in dealing with complaints that has not always been offered to the public in the past.

Tommy's First Word - Issue 103, current to 11 May 2010

In Tommy’s Lifestyle magazine number 96 published in February, I spoke about the seriousness of the leaky homes problem, the effects it was having on the lives of many average Kiwi home owners and the lack of a suitable government led plan to remedy the problems of owning a leaky home.

At that time there was a suggestion that moves were close at hand that would provide some government and local authority financial assistance for those that had a genuine leaky home problem. But alas, it appears that the wait continues.

Tommy's First Word - Issue 104, current to 25 May 2010

The last 12 months have seen some significant changes in the real estate industry as we prepared for and in November last, started   working with, the Real Estate Agents Act 2008 which replaced the old and in many ways outdated 1976 Act.

The new Act has made sweeping changes to our controlling administration and greater accountability is demanded from those working in the industry. Gone is the previous Real Estate Agents Licensing Board, and membership of the Real Estate Institute of NZ is no longer mandatory but a matter of choice.

Tommy's First Word - Issue 105, current to 8 June 2010

There is no doubt that real estate activity has slowed somewhat in recent weeks; this is borne out by our own observations and from the latest sales figures available to us.

In our view, the fact that there has been a small drop in prices and in sales numbers is not a cause for serious concern but an indication that market influences and in particular, media speculation, have created a degree of caution among both home buyers and home sellers. Those of us with a direct business interest in real estate from North Cape to Bluff will be hoping that with the budget now behind us the market will return to some sort of normality.

Tommy's First Word - Issue 106, current to 22 June 2010

Rarely does a week go by without some news pertaining to the world of real estate taking prominence in our leading newspapers and on our radio and TV news. Hardly surprising I guess, considering that housing is a common denominator for us all irrespective of ownership, status or style of our living situations; we all have a vested interest in this subject.

Many of us are employed in the business and countless numbers of the population have invested in real estate during their life time. The last few weeks has been no exception so it is an appropriate time for me to give some comments and opinions on a selection of some of these latest issues.

Tommy's First Word - Issue 108, current to 20 July 2010

When we started the Tommy's business in 1999, we had no real perception of the demand for another real estate agency in the Wellington area, and in our wildest dreams we never expected to grow as we did in the subsequent years.

We had no plans to open more than one office, and imagined our business being a small boutique agency looking after the real estate needs of a relatively small sector of the market. Not alone has our Wellington City business grown, but we now have franchised offices in Upper and Lower Hutt, Johnsonville, Paremata and on the Kapiti Coast.

Tommy's First Word - Issue 109, current to 3 August 2010

An important part of the Tommy’s strategy when commencing business in the greater Wellington area was to be selective about which locations we would expand to.

There had been sufficient evidence to satisfy us that a proliferation of offices had not worked for others, so why would it work for us? More offices means more managers or owners, more administration, more costs and above all greater difficulty in maintaining standards and in supervising and monitoring the activities of our representatives in the field.

Tommy's First Word - Issue 110, current to 17 August 2010

From time to time when I suggest that it may be opportune to invest in residential real estate, it is suggested to me that I have a slanted view because of my long standing interest in the industry. 

While I acknowledge that it's difficult to deny my well-known passion for real estate, it has been good to me personally through both mediums of real estate sales and also as an investment vehicle. It has also been a successful investment base for many of our clients at Tommy's, and I believe that we are currently in an environment that promises to bring good returns in the future for forward-thinking property investors.

Tommy's First Word - Issue 111, current to 31 August 2010

Buying a house for the first time can be a daunting experience. However, if you plan your buying strategies and educate yourself well in advance of making a buying decision, it doesn’t need to be.

Buying a home these days is an exercise that many people tend to put off until they are in the 30+ age group. But is it necessary to wait that long? Is it more difficult to get your foot on the real estate ladder than it was in your parent’s era? Probably not!

Tommy's First Word - Issue 112, current to 14 September 2010

In our last edition of Tommy’s Lifestyle Magazine we talked about the purchase of a first home and how there were often ways and means of achieving this, perhaps with the assistance of friends or family.

I also suggested that purchasing for investment rather than for owner-occupation was a practice that had a lot of positives. In this edition I would like to develop this theme a little further and perhaps encourage younger people to take a further step towards home ownership.

Tommy's First Word - Issue 113, current to 28 September 2010

For the last year or two our lives have been consumed by the state of the economy locally and globally. So much has been written and  spoken on the subject with everyone (including myself) having an opinion as to where it was all heading.

The recent failure of the South Canterbury Finance Company fuelled the fires and there has been much speculation and debate over the reasons for their demise and the subsequent government payout to investors.

Tommy's First Word - Issue 115, current to 21 October 2010

As if the last year or two hasn’t been difficult enough for most people to maintain their standard of living and to plan for the future, the media continues to promulgate dire news about the state of the economy and in particular, to suggest to home sellers that they are yet to see the bottom of the real estate cycle.

It is fair comment to suggest that the usual spring market has not produced the confidence boost that we usually see at this time of the year but wouldn’t some positivity be nice in our daily papers?

Tommy's First Word - Issue 107, current to 6th July 2010

We are all aware of the need to take care and to seek legal advice when buying a property, but there is one topic that sometimes slips under the radar of buyers both old and new, and it comes under the heading “encroachments”.

Although not exclusive to the Wellington residential market, we do have a number of properties in and around the city that are subject to road encroachments; about 6000 properties in fact, so there is a real need for home buyers to know exactly what they are buying.