‘Your Next Home’ second Seminar

Press, 12 July 1988, Page 34

‘Your Next Home’ second Seminar

"Your Next Home” is the title of the second “The Press’Vßeal Estate Institute of New Zealand seminar on July 20. The seminar is for home buyers who are trading up or down for all kinds of reasons: the need for more space for a growing family, increased or decreased finances, the need for less space once families have grown up and left home.

It will bring people up to date with what is happening in the real estate market and outline marketing services for real estate, financiers and lawyers, said Mr' Kent Prier, a national councillor for the Real Estate Institute.

The average turnaround time for homes in Christchurch is six and a half years, but many people move far less often. Moving can be an awesome experience for people who have lived in the same house for many years, but it need not be, and the seminar will be invaluable for this group, providing information to help set their minds at rest.

A significant point is that many home transactions need little or no mortgage adjustment and some mortgages can be transferred from one property to another, said Mr Prier.

The drop in interest rates from 22 per cent last year to 17 per cent this year means that a mortgage can now be increased without increasing the repayments. The repayments on a $40,000 loan last year are no more than those on a $50,000 loan this year. Many other real estate topics will be discussed at the seminar, such as the many misconceptions

about the best and worst locations. Some modest homes in what are traditionally less desirable areas may have good investment potential. Ownership flats, town houses, and apartments often command prices as high as houses. People in that market are usually cash buyers, having sold family homes to trade down. Others cannot afford to buy a home. A flat may be their only option, so competition is strong. Some people think that it is the real estate agents who set the values of houses or that they are set by the vendors. This is a false idea; real estate agents interpret market values, said Mr Prier. Ultimately a house sells for the price the purchaser is prepared to pay. Any move should be planned carefully. Someone who has always wanted to live on the hills may move there to retire and then find that he or she cannot maintain the section or that their friends do not travel the distance to see them. Others may find that a move to a small property may leave them frustrated because they have nothing to do.

The real estate agents will explain their services —who bears what costs, the range of services provided, drawing up contracts, the time taken to confirm a sale, the decisions that need to be made and the differences between multiple listing a property or having a sole agent.

Those having difficulty keeping up with mortgage payments because of redundancy or other reasons will be able to come along and hear about what to do.