# Auckland Lawyers > Auckland law firm | Conveyancing ## Posts ### Why Insurance Matters in New Zealand Property Deals • Banks usually won’t lend until you can insure the property. • Insurance covers catastrophic events—fires, floods, earthquakes. • If you can’t insure, you can’t settle. You could lose your deposit. Imagine signing and going unconditional. Then paying a big deposit, only to discover you can't get insurance cover. Your lender freezes funds. You’ve already committed, but now there’s no mortgage, no insurance. Legally, you must settle. Commercially, you’re stuck. In New Zealand, this scenario is more than possible. Councils rezone land. A building once classified “residential” might shift to “lifestyle” or “coastal erosion risk.” Insurers take note. They may exclude insurance cover if they see or perceive a heightened risk. And often, they don’t tell you in writing until you’ve applied for the cover. This may be after you go unconditional. At this stage, you have committed to purchasing the property. The Pauanui Example: A Cautionary Tale Source: https://www.waikatotimes.co.nz/nz-news/360568305/coromandel-house-prices-drop-squeeze-goes-second-home-buyers In April 2025, a story was shared in the Waikato Times about a family in Pauanui who bought a coastal section on a clean title. They got their LIM (Land Information Memorandum) and building consent checks done. All seemed well. They went unconditional. They transferred the deposit. When they applied for insurance, the insurer declined. Why? The council had rezoned the land for a future coastal hazard zone. Flood risks increased. The insurer flagged it as “high risk.” No cover meant no mortgage. The bank pulled the loan. The buyers faced losing their 10% deposit and paying penalties. They had to scramble to find out if another alternative existed for insurance or walk away and forfeit all their money. This could happen to you. It happened because there was no clause protecting them if insurance fell through, and they did not do this check before going unconditional. What Is a Pre-Purchase Insurance Clause? A pre-purchase insurance clause is a condition in your sale and purchase agreement. It reads something like this (wording may vary): “This agreement is conditional upon the Buyer obtaining, to the Buyer’s satisfaction, a written offer of insurance from an insurer covering the property, on terms acceptable to the Buyer, by [insert date]. If such insurance is not obtained, the Buyer may cancel this agreement, and the deposit will be returned in full.” Key points: • It must be in writing in the Sale and Purchase agreement. • It sets a deadline for this condition to be met. This may often be the same as or just before the finance clause. • It gives you an “out” if insurers refuse cover or impose unacceptable exclusions or premiums. Without this clause, you rely on the general rule that you must proceed unconditionally once the financing condition lifts. That means you can’t walk away just because an insurer says “no.” Risks of Skipping this Insurance Clause 1. Deposit Forfeiture If you can’t insure, the bank won’t lend. You’re technically in breach. The seller can keep your entire deposit. 2. Financial Liability You might still owe penalties under the agreement. This could include daily penalties for late settlement, for example. 3. Limited Options By going unconditional without insurance, you can’t renegotiate the price or terms of the property you want to purchase. It is too late. 4. Unforeseen Risks Rezoning, natural hazards, or even structural issues can trigger an insurer’s red flag. You only find out after you apply and you cannot rely solely on a LIM. If you’re dealing with coastal or rural land, or an older building, the risk is higher. Insurers might refuse cover, or charge a premium so high it makes the purchase uneconomic. How to Draft an Effective Clause 1. Keep It Clear and Time-Bound • State that the agreement is conditional upon obtaining insurance. • Specify the date by which you need a written offer. If your finance condition expires on 31 May, set the insurance date to 28 May. • Define “insurance” clearly: cover for loss or damage by fire, flood, earthquake, storm, landslip and other standard perils. 2. Allow for “Terms Acceptable to Buyer” You want a way out if: • Insurer covers some perils but excludes others you deem critical. • Premium is double what you expected. • Excess is so high it’s impractical. By saying “terms acceptable to Buyer,” you retain flexibility. Always use plain English: insurers sometimes offer partial cover that simply doesn’t work for you. You need an escape. 3. Link to Other Conditions Often, this clause sits alongside finance, LIM, and building inspection conditions. Your agreement might read: “This Agreement is conditional upon the Buyer: (a) Obtaining finance; (b) Obtaining insurance cover; (c) Obtaining satisfactory LIM report; (d) Satisfactory building inspection report.” If any of those fail, you can cancel. The above are only suggestions, and you should consult your lawyer and legal representative to craft the best clause for you and your circumstances. This news item does not constitute legal advice. Practical Steps to Check Before You Sign 1. Talk to an Insurance Broker Early Before bidding at auction or agreeing to sale, call an insurance broker. Tell them: – Property address. – Intended use (residential, holiday home, rental). – Age of building, construction type, any known hazards. They can give you a “letter of intent” or “pre-approval” status. That helps you decide if adding the clause makes sense. 2. Review Council Records Check if the property has had any recent rezoning, coastal hazard zoning, flood overlay. Many councils publish hazard maps online. If you see red zones or flooding risk, insurers will spot that too. 3. Obtain LIM Early Your Land Information Memorandum flags building consents, resource consents, hazards. 4. Calculate Premium Estimates Even if an insurer will cover, the premium might be so high it kills your cash flow. Ask for a quote. If it’s 50% higher than similar homes in the area, you need an insurance clause to renegotiate or walk away. 5. Check Bank Requirements Some banks demand “full replacement cover” even for asbestos removal. Others accept “agreed value.” Clarify with your lender. The clause should mirror the bank’s minimum requirements. How to Deal When Insurers Refuse Cover If you already have the clause and the insurer says “no”: • Inform the vendor in writing, citing the clause. • Arrange to meet the insurance deadline—show the vendor you’re acting in good faith. • Ask your lawyer to cancel formally, so the deposit comes back to you. If you didn’t have the clause, you’re in trouble. You might have to: • Seek alternative lenders who accept “named perils” cover. That insurance limits cover specific risks. Sometimes banks accept that. • Pay higher premiums to get “wraparound” cover from a niche insurer. • Negotiate with the vendor for a price drop. This is unlikely if you’re already unconditional. Real-World Example: Coastal Sections vs Inland Suburbs Scenario A: Coastal Section Jane and Tom want to buy a sectional title near the beach. The council has rezoned part of the shoreline for future erosion control. They check with an insurer early: “We’ll cover you, but only if you raise the foundation by one metre. Premium doubles.” They add a pre-purchase insurance clause. Insurer refuses “standard cover,” but offers “named perils” only. Prime lender won’t accept. They walk away. They only lose time, not a hefty deposit. Scenario B: Inland Suburb Home Sarah buys in a safe zone. No coastal hazards. Council plan change shows no new overlays. Broker quotes a normal premium. She does not include an insurance clause as she feels confident. Settlement day arrives and she produces her insurance policy. Done. Everything is smooth. The difference? Jane and Tom didn’t know the hazard risk until late. Sarah did her homework. But if Jane and Tom had skipped the clause, they’d have lost tens of thousands. Tips for Sellers and Real Estate Agents If you’re selling, expect buyers to ask for this clause. Resist pushing buyers to go unconditional quickly. Instead: • Provide LIM, building reports, and any hazard assessments upfront. Transparency cuts delays. • Encourage buyers to talk to insurers early, so they know the risks. Conclusion: Protect Yourself with a Simple Clause You can’t predict every rezoning, every flood overlay, or insurer’s appetite. But you can control your risk. A pre-purchase insurance clause gives you: • Time to verify you can actually insure the property. • An “escape hatch” if insurers refuse or demand unaffordable premiums. • Peace of mind to focus on finance and inspections first, without losing your deposit. If you’re buying anywhere near a river, coastline, or a known hazard, treat insurance as seriously as finance. Insurers have their own risk appetite. They won’t bend just because you signed unconditionally. Talk to your lawyer or conveyancer. Insist on clear, time-bound wording. Ask them to explain every word. Don’t let anyone slip in ambiguous legalese. Protect your deposit. Protect your dreams. A simple insurance clause could be the difference between a smooth settlement and a financial disaster. Why chat to Quay Law Conveyancers when buying a property? This is what some of our clients have shared about our conveyancing and property law services. 1. Positive reviews highlighting Ian Mellett and the Quay Law team's professionalism, knowledge, and excellent communication throughout the property purchase process. 2. Consistent praise for Ian Mellett's friendly, supportive, and client-centred approach, as well as his ability to guide clients through complex legal matters. ### The Hidden Dangers of Unconsented Works When Buying or Selling a House in NZ Introduction: Picture this: You've found the perfect house, the one that ticks all the boxes - the dream home you've been searching for. But wait! Before you get carried away with visions of cozy nights by the fireplace, there's something you need to know. Unconsented works can turn your dream into a financial nightmare, potentially costing you hundreds of thousands of dollars. In this article, we'll explore the risks involved and offer you valuable advice on navigating this tricky situation. Unconsented Works and Their Impact: Unconsented works refer to any additions or alterations made to a property without the proper council approval. A seemingly innocent unconsented deck or ensuite can have far-reaching consequences, as potential buyers may struggle to secure mortgages due to these illegal modifications. This lack of financing options can severely limit the competition for your property, ultimately diminishing its value. Options for Homeowners: Fortunately, homeowners faced with unconsented works have several options. The first and most straightforward choice is to remove the unconsented works altogether. However, for works completed before 1992, obtaining a safe and sanitary report from a qualified inspector may be sufficient to address any concerns. For post-1992 works, applying for a certificate of acceptance (CoA) is advisable, or alternatively, rebuilding the offending works with proper consent. The Importance of Legal Advice: Navigating the complexities of unconsented works can be overwhelming. Many homeowners mistakenly believe that obtaining retrospective consent or letters of acceptance is a mere formality. Unfortunately, this misconception can lead to costly mistakes. Seeking legal advice is crucial to ensure you receive the right guidance and perform the necessary due diligence. A reputable property lawyer can help you understand the difference between a Code Compliance Certificate (CCC) and a certificate of acceptance, ensuring you make informed decisions throughout the process. The Challenges of Obtaining a CoA: Even if homeowners recognize the need for a CoA, there's no guarantee of approval. Applying for a CoA is not a mere formality; it involves a thorough evaluation by council inspectors. What's more, the application is often forwarded to town planning departments to determine if additional resource consent is required. This process takes time and can delay the buying or selling of a property. The Pitfalls of Ensuite Bathrooms: Ensuite bathrooms are commonly found to have unconsented works. Even if your ensuite is well-built and modern, obtaining a CoA can be an arduous task. Council inspectors are unable to see what lies beneath the surface, making it difficult to assess the quality of workmanship. To obtain a CoA, you may need to provide all the necessary paperwork from water-proofers, tilers, plumbers, and electricians. This meticulous documentation can add significant costs and stress to the process. The Importance of Early Advice: For property sellers, ignoring unconsented works can be a costly mistake. Seeking advice early on is crucial, whether you're selling or buying a property. By partnering with a trusted legal expert like Quay Law, you can navigate the complexities and protect your investment. Conclusion: When it comes to unconsented works in the NZ property market, ignorance is far from bliss. Failing to address these issues can have severe financial implications for both buyers and sellers. By understanding your options, seeking legal advice, and partnering with a reputable property lawyer, such as Quay Law, you can safeguard your investment and ensure a smooth transaction process. Don't let unconsented works turn your dream home into a financial nightmare. Take the necessary steps to protect your interests and make informed decisions. For your experienced conveyancing support  ### Tony Alexander: FOMO's back - why Auckland is primed to lead the next house price surge Original Source - ONEROOF.CO.NZ     -   19 July 2023 Article repurposed for our blog. ANALYSIS: Each month, I / Tony Alexander conduct five surveys among my 31,000 subscribers of ONEROOF to gain firsthand insights into the economy, particularly the housing market. This week, I ran a survey of mortgage brokers with the assistance of mortgages.co.nz, and the results are quite interesting. According to the survey, a net 62% of brokers have reported seeing an increase in first home buyers in the market. This is the highest result since June 2020 when a record net 79% of brokers reported more young buyers. Despite rising mortgage rates, it appears that young buyers are still the driving force behind the growth in the housing market. However, when it comes to investors, the survey reveals only a slight increase in their involvement. A net 23% of brokers stated that they are seeing more investors seeking advice, which is the same as last month and aligns with the figures from the start of the year. Interestingly, many brokers have noted that investors don’t seem particularly determined to make purchases at the moment. Upon further examination of the brokers’ responses, it becomes clear that investors are waiting for the election to be over and any potential changes in tax rules to be introduced. Some investors are finding that the numbers don’t add up for running a rental accommodation business, leading to cautiousness in making new investments. This situation reflects a similar trend in Australia, where high financing costs have prompted investors to sell, even though there is a high demand for rental properties due to record net migration. Contrasting the situation for investors, our own record net immigration in New Zealand is making it easier for landlords to find good tenants. This ease in finding tenants, coupled with the tightening rental market, may be one of the factors encouraging young people to consider homeownership earlier than they had previously thought. Another aspect I investigate in my surveys is the preferences of borrowers when it comes to fixing interest rates. The survey shows that only 10% of borrowers prefer a one-year fixed term. In contrast, 38% opt for an 18-month term, and a majority of 45% choose a two-year term. These figures suggest that borrowers are positioning themselves to take advantage of falling rates in the future. We are currently at or near the top of the rates cycle, and borrowers see the value in securing favorable rates when they eventually decrease. In addition to surveying mortgage brokers, I also survey real estate agents each month, and the results from my most recent survey indicate a net 63% of agents have observed an increase in first home buyers and 14% have seen more investors. The agents have also noticed a rise in attendance at open homes and auctions, and a net 38% agree that prices are rising in their respective areas of operation. This further reinforces the upward trend of the housing market, with demand growth surpassing supply growth, driven primarily by first home buyers. Looking ahead, next week, we may have a new government formed, and this will provide us with a clearer view of the policy environment for homebuyers and those looking to make a purchase. I don’t anticipate any significant changes in the uncertain interest rates outlook. However, if the rules are modified to reinstate interest expense deductibility for investors, it is likely that young buyers will experience FOMO (fear of missing out) and intensify their efforts to enter the market before investors enter in greater numbers. To conclude, based on the survey results from mortgage brokers and real estate agents, it is evident that young buyers continue to be the driving force behind the housing market’s upturn. Investors, on the other hand, are showing less determination to make purchases and are waiting for the election and potential tax rule changes to pass. The preference for fixed interest terms indicates borrowers’ eagerness to position themselves for future rate drops. As we move forward, the formation of a new government will shed light on the policy landscape for homebuyers, while any changes in interest expense deductibility for investors may stimulate even greater demand from first home buyers. Original Article – compiled by Tony Alexander For your experienced conveyancing support  ### Property Reports: The Lowdown Knowledge is essential when it comes to investing in real estate. Making an informed purchasing decision requires knowledge of the potential home's condition, history, and risks. Property reports come into play in this situation. A property report is a compilation of various documents that provides a thorough profile of a home. It aids in having a better understanding of the house from a non-sales perspective. In this article, we will dive into the world of property reports, their usefulness, and how they can benefit both buyers and sellers. What is a Property Report Property Reports serve as an essential resource for the real estate industry. They offer valuable insights into a property’s characteristics, history, and potential issues. It generally includes information such as: ● Property Description: Covering aspects of size, geographics and layout of the property ● Legal Information: Content on the current owner, title information and possible liens ● Sales History: Estimated value of the property based on past sales and current market info ● Market Value: Estimation based on current market perception and movements ● Permits and Zoning: Information on permits, restrictions and planned developments ● Structural Integrity: Details if the home is vulnerable to flooding or other weather events ● Neighbourhood Analysis: Overview on the suburb’s character and attributes These reports are an invaluable resource for both buyers and sellers, as they provide information critical to the property’s future valuation and transactions. Home Inspection Report (Buyer) The home inspection report is one of the most common types of property reports. It mainly serves to benefit the buyer, as it provides valuable information on the property’s physical characteristics rather than financial ones. A home inspection will entail a comprehensive report of a property’s physical condition, including the structure, electrical systems, plumbing, and other crucial components. It also includes the history of any problems as well as the associated risks with the property. This report can save buyers from future expenses associated with maintenance and unexpected surprises. Title Reports (Buyers and Sellers) The title report is a critical document that must be read by both buyers and sellers. A title report provides both parties with information about the property’s legal ownership, including any liens, encumbrances, or restrictions that may affect its transaction. The report ensures that the property has a clear and established title and that there are no legal complications. By reviewing this critical information, you can avoid future legal challenges and ensure a smooth transaction. Financial Reports (Sellers) These are reports that provide information related to the financial performance of the property. Such reports are often made by an independent property valuer who takes several factors into account. These reports provide sellers with a guide for their listing price as well as potential buyers looking to purchase an investment property. The report will include information related to the capital value, land value, market perception,and transaction history. Other Reports There are many resources available to compile a report specific to your needs. For example, you can consult an environmental auditor to conduct a review of the surrounding ecosystem and how that affects the future valuation of the property. You could also get a specialised report on pest inspections in order to determine if the property is a breeding ground for invasive species. This can save many future expenses associated with pest extermination and physical changes to the property. Benefits of Property Reports Property reports give both buyers and sellers a wealth of knowledge. The information they provide is critical to future transactions and the use of land, which will improve the key decisions of both buyers and sellers. By providing a snapshot of the financial and physical aspects of the property, both parties can make a more informed decision. CONTACT US TO KNOW MORE ### How to Help Your Kids Buy their First Home Being able to watch your children purchase their first home is an important milestone for any parent. As a parent, you play an important part in your child’s home ownership journey. From providing them with financial literacy and education in the early years to setting up credit cards and bank accounts in the later years, your involvement can make a real difference. In this article, we will delve into some practical tips and strategies to assist you in helping your child purchase their first home. Start Early with Financial Literacy It’s important for a child to build strong financial literacy from an early age. Teaching children about money management, budgeting, saving, and the importance of good credit is an important task for any parent. By encouraging your child to develop a savings plan, they can better understand the value of money when it comes to purchasing something. It is recommended that you set your child up with a youth bank account (such as the ASB Headstart program). This allows them to track their savings and set goals in order to make future purchases. Expectations v Reality More often than not, we set goals that are unachievable. In terms of home ownership, it’s important that your children set realistic financial goals that can meet their expectations. Helping your child understand the various costs associated with purchasing a home can assist them in setting a savings goal. You can teach them about deposits, mortgages, property taxes, and maintenance costs. Financial Assistance We often find ourselves in a situation where we have to financially assist our children in purchasing their first home. As parents, we want our children to have the same opportunities that we did. However, with the current economic climate and interest rate pressures, it can be incredibly difficult to secure a deposit on a mortgage. Some ways of assisting our children include offering a monetary gift, a loan, or co-signing on a mortgage to help them secure more favorable terms. This must be done in alignment with your current financial situation, so it's important to evaluate that before making any financial decisions. Government Programs and Assistance In New Zealand, there are many government and assistance programs that can help your child purchase their first home. You should make sure that they understand the process of KiwiSaver withdrawal, which allows them to take money out of their KiwiSaver to use to purchase their first home. There is also the Home Start Loan, which is a government-set mortgage of 5% that is only available at certain banks and credit unions. Become a Financial Resource As a parent, you have a wealth of knowledge and experience in comparison to your children. It’s important that you recognize this as a resource. By offering guidance on neighbourhoods within your metropolitan area, your child can make a better-informed decision on the location of their home. You can also educate your child on the responsibilities of home ownership, such as various repairs and maintenance, payment of taxes and insurance, and complying with local council regulations. These are all crucial aspects that must be understood prior to purchasing a home. If your child is purchasing a home overseas, it is recommended that they seek the advice of a local expert in order to ensure a smooth transaction. Conclusion For many parents out there, it is a dream of theirs to see their child be able to purchase their first home. This important milestone requires careful input on your end. For more information on helping your child purchase their first home, contact Quay Law at 09 523 2408 CONTACT US TO KNOW MORE ### The Reserve Bank has moved to reintroduce house loan deposit rules With these changes to borrowing and lending on the way – refinancing, getting a mortgage, buying and selling property may come with new stresses. Our Quay Law lawyers have shared this article (originally sourced from stuff.co.nz ) with you as you may find it of interest. It would possibly be applicable if you are refinancing or buying/selling a property. Loan-to-value restrictions (LVRs) have been suggested as a solution to help cool the housing market down. Reintroduce house loan deposit rules At 9 am on Wednesday 17, the Reserve Bank has announced that it will be reintroducing LVRs for risky lenders as of 1st of March – two months earlier than its previous deadline of 1st of May. Since setting this deadline of 1st of May in response to the Covid-19 pandemic, the rate of lending to rental investors as well as owner-occupiers has soared – which has caused house prices to rise by almost 5%. The increase in house prices comes as a surprise to many as economists predicted that house prices would fall between 10% and 20% following the Covid-19 lockdown. Rush to buy expected. The decision to move up the deadline to March 1st puts pressure on rental property investors to move quicker, may prompt a spike in purchasing, and could see first-time home buyers outbid in a frantic rush to secure financing before the restrictions come in. Early comments November 25th was the expected date for the Reserve Bank’s Financial Stability Report, the comments on LVR controls seem to have been a pressing enough matter for the Reserve Bank to come out and comment early. Despite these early comments, the Reserve Bank did not clarify whether or not the LVR controls will be reintroduced for rental property investors only. This lack of clarification has triggered concerns that first time home buyers will be restricted again as well. Rising investor borrowing Rental property investors have nearly doubled their high LVR borrowing this year, in line with the housing market heating up, and will be particularly affected by the calls to reinstate the LVR controls. September saw house sales rise to a staggering $3.5 billion; nearly $2.5 billion of which was made up by fresh loans and approximately 1 billion from stored equity of owner-occupiers and rental investors. Placating the banks The Reserve Bank has put off the planned move to force banks to increase their capital levels – reducing profitability – until 2022. Perhaps this year-long reprieve will soothe the pain of cooling off their lending in the face of LVR restrictions. Dividend bans on the banks will, however, remain in place until March 2021. Bank capital is set to rise by up to $6 billion this year for the big four Australian-owned banks (ASB, BNZ, Westpac, ANZ) which isn’t popular with the share-holders but is helping the current account deficit. The Reserve Bank also made warnings to IAG and Suncorp against paying dividends to its shareholders. With warnings from the central bank like “only make dividend payments if it is prudent for that insurer to do so, having regard to their own stress testing and the elevated risks in the current environment” – it looks like it will be a rough return for the Australian-owned IAG. If you are in the process of refinancing or buying/selling a property, click here to get your conveyancing quote. CONTACT US TO KNOW MORE ### A Conveyancing Quote for Buying, Selling or Refinancing a NZ Property Need a conveyancing quote? We Kiwis love the idea of owning our own homes, which is probably one of the main reasons why our property market is such a hotly contested one, as people at all stages in life jostle for a place on the property ladder.  In most of our cases, our homes will likely be our single most expensive asset – in fact, the purchase or sale of a residential property is probably the biggest, most important financial transaction most of us will ever make. A Conveyancing Quote for your NZ Property Transaction Our conveyancing lawyers at Auckland law firm, Quay Law have put together a guide to support you on this journey to buying or selling property in New Zealand. Quay Law's e-book / guide to buying or selling property in New Zealand. To instantly get our free, no-obligation conveyancing quote. Our expert conveyancing solicitors can organise conveyancing for buying, selling and refinancing your property. Our lawyers are equipped to make the conveyancing process simple and guide you to a happy solution in an otherwise complicated field. If at any point of the quote process you experience difficulties or would like to speak with one of our conveyancers, please call us on 09 523 2408 or contact us online. No matter your call, we welcome your questions. DISCLAIMER: This article, e-book and video was written / created out of interest from a non-professional standpoint and does not represent legal or financial advice. Our Auckland lawyers  invite you to contact us for your conveyancing quote today. GET OUR FREE, NO-OBLIGATION CONVEYANCING QUOTE HERE ### Best Conveyancing Lawyer For Me In Today’s World: What Is Right For Me? Best Conveyancing Lawyer For Me? There are many factors to the selling, buying and refinancing of a property that cause far more trouble than you should have to face alone. A conveyance lawyer will protect you through the thick and thin of your property transaction. Which is the best conveyancing lawyer for me? "Conveyancing lawyer for me" - what does this really mean? We know that the Auckland housing market today is a touchy subject for most young homeowners-to-be. With ever-changing interest rates and many prime property purchase opportunities being snapped up faster than some of us can keep up with, home ownership can be a looming prospect for Aucklanders to face. As if this wasn’t a stressful enough situation to consider, there are many underlying factors to the selling, buying and refinancing of a property that are often overlooked, and eventually cause far more trouble than you should have to face alone. A severely underrated asset to your arsenal is the conveyance lawyer – a member of your team that is devoted to seeing that the needs and wants of all parties are met. Above all, a conveyancing lawyer ensures that the undertakings of all parties are upheld and met to the best of their ability. With all of these factors to consider, the question of “which is the best conveyancing lawyer for me” springs to mind. We want to assure you that no matter the interest rates you face, or how drastically the rate of property sales in Auckland fluctuate, we will be here to assist you for all your property buying, selling and refinancing obligations. As the oath keeper, you can rest assured that when working with our conveyance lawyers, all of your needs will be met with enthusiasm and remarkable results. Give our conveyancing lawyers a call today for all of your property selling, buying and refinancing needs. [button size='large' style='' text='Contact Your Conveyancing Lawyer in Auckland' icon='' icon_color='' link='https://lawyerinauckland.co.nz/contact-a-solicitor/' target='_self' color='#ffffff' hover_color='#ffffff' border_color='' hover_border_color='' background_color='#770000' hover_background_color='#770000' font_style='' font_weight='400' text_align='center' margin='20'] ### Shared Homeownership Scheme: What It Means For First Home Buyers You might have seen the recent announcement by BNZ about their new shared homeownership scheme. So, what exactly is it and what does it mean for people who are keen to take their first step onto the property ladder? As an Auckland lawfirm specialising in property law and conveyancing, here's our take: BNZ Shared Homeownership Scheme - The Details The BNZ shared home ownership scheme is not dissimilar to homebuying schemes which have been run in the UK and Ireland with success for a number of years. In summary, a first-time buyer teams up with an equity investor to co-purchase a house. The buyer invests what they can afford, with the co-investor (in this case YouOwn) investing the remainder to bring the total equity to 20%. The buyer then services the loan on their share of the property, as well as paying an "interest" charge to their co-investor, with the eventual aim to buy them out and own 100% of the house. Shared Homes Scheme - The Benefits It allows you to get a foothold on the property ladder - you put up a deposit that you can afford (minimum 5%). You can start to increase the % ownership you have in the property after 5 years, with no set timeframe to achieve full ownership of the house. Shared Ownership - Things to Consider This scheme is aimed at buyers with a household income of minimum $120,000 given the price of the eligible homes. It only applies to certain Auckland new-build homes at the present time. As well as your mortgage repayments you pay a separate charge on the equity investment by YouOwn. You're responsible for all ownership costs such as insurance, rates and maintenance of the house. You won't be able to sell your house without agreement from the equity co-investor, although you may be able to rent it out if your circumstances change. As Auckland lawyers, we consider the BNZ co-ownership scheme to be an interesting new way to get on the housing ladder for first-time buyers. However, it always pays to do your research and to consider all legal aspects to ensure that it's the right choice for you. Here at Quay Law, as property lawyers and conveyancers we'd be happy to help you discover if the shared homeownership scheme is right for your circumstances. If you're looking for a lawfirm in Auckland to help with selling, purchasing or financing a home, get in touch with Quay Law today. [button size='large' style='' text='Contact Your Conveyancing Lawyer in Auckland' icon='' icon_color='' link='https://lawyerinauckland.co.nz/contact-a-solicitor/' target='_self' color='#ffffff' hover_color='#ffffff' border_color='' hover_border_color='' background_color='#770000' hover_background_color='#770000' font_style='' font_weight='400' text_align='center' margin='20'] ### Foreign Buyer Ban NZ: What Does It Mean For You and the NZ Property Market? In October last year the foreign buyer ban NZ came into effect and some New Zealanders breathed a sigh of relief, but should they have? Will the foreign buyer ban NZ have any impact on property prices or overseas ownership? According to the Real Estate Sector in New Zealand, the change in property law will not help kiwis who are struggling to afford their first home. However the Associate Finance Minister David Parker says it will still help in the way of stopping Kiwis being outbid by foreign buyers. According the average amount of property transfers that happen each year in New Zealand, only 3% have foreign buyers. That equates to approximately 4200 houses. This number may seem small, but when you add up the total year to year, the number grows significantly, therefore these restrictions may start to have an effect on Kiwi first home buyers after all. Australian Property Restrictions and What They Show. Before these restrictions came into effect in NZ, Australia had already banned foreign ownership on existing (opposed to new) residential properties. However, they hadn’t created any restrictions for foreign trusts and corporations, which means that their laws are less strict than ours. So far, there is little evidence that shows that these restrictions have had any impact on slowing housing price inflation in Australia. How did foreigners react to the foreign buyer ban NZ? A large percentage of foreign property buyers are from China as they prefer to invest outside of China, in countries that have a more stable economy which can provide good returns on investment. Upon hearing the news of the new restrictions being put in place against foreign buyers, many Chinese jumped at their last chance to buy in NZ. There was a 59% increase in NZ property enquiries on just one of many real estate websites advertising NZ property to China. The foreign buyer ban NZ frees up property for Kiwis, now it’s time to find an Auckland law firm that knows real estate law.   With the extra 4200 homes opening up to Kiwis each year, it’s time to look into a conveyancing law firm in Auckland to help you understand real estate law with your property transactions. Quay law can help you with purchasing, selling, conveyancing, financing and all general legal advice you could need to know. If you have found or are selling the perfect home, call Quay Law to speak to a qualified and professional conveyancing and property lawyer. Excerpt: In October last year the foreign buyer ban NZ came into effect and some New Zealanders breathed a sigh of relief, but should they have? Will the foreign buyer ban NZ have any impact on property prices or overseas ownership? ### Quay Law - Immigration Consultants and Lawyers Immigration Consultants and Lawyers for Immigration in 2018 Whether you are already residing in New Zealand or are planning a move to New Zealand, you should be aware of the benefits and risks surrounding your application or current permits. Consider working with immigration consultants and lawyers? Losing your New Zealand job may result in you not being eligible to work in another organisation. This can have dire consequences, the worst being that you could have to face leaving New Zealand. A work permit does not carry with it a guarantee for renewal or a guarantee that permanent residency will be granted. It’s unfortunate, but some migrants do not completely understand this when making the move to New Zealand. Unemployment In New Zealand Is At 4.4% - The Lowest In Nearly A Decade. A Westpac Senior Economist, Michael Gordon, has found that "Firms are finding it increasingly difficult to find new workers, as the pool of available workers has narrowed over time." Companies are increasingly looking overseas to fill the shortages - making this a great time to immigrate. New Zealand welcomes new migrants – people who will contribute to the country by bringing valuable skills or qualifications, setting up a business, or making a financial investment. So what options are available to you? Immigrants in New Zealand fall broadly into three categories: Those that hold Citizenship Those that reside in New Zealand and hold permanent residency Those that reside in New Zealand and hold valid work permits If You Currently Reside In New Zealand And Hold A Valid Work Permit That Is About To Expire, Review Your Options Are you eligible for permanent residency? If so then this should become your priority. Holding a permanent residency permit places you in a stronger position, should you be required to find alternative employment. What would you do if downsizing or the organization sponsoring your work permit application closed? For this reason, it is important to have a contingency plan; and apply for the renewal of your work permit in a timely fashion. The Quay Law Team of New Zealand Immigration Consultants and an Expert Immigration Advisor Are Ready To Assist Employers who are unable to find suitable workers in New Zealand and have roles that do not meet the Skilled Migrant or Talent work permit criteria may be able to assist a potential employee in obtaining an Essential Skills work visa or permit. An employer would have to demonstrate that: There were no suitable employees in New Zealand. They made genuine attempts to attract and recruit New Zealand workers for the positions at the current market salary. They provided evidence of advertisements placed, responses received, industry statistics on vacancies, and training in place to address shortages. Work and Income would also be contacted. All of the above takes time, so you need to allow sufficient time when renewing your work permit. At Quay Law, our immigration consultants and lawyers are often asked to clarify the difference between a visa and a permit? A visa allows a person to travel to the NZ border and a permit allows them to remain in the country. Unless a person has a multiple-entry visa or another single-entry visa, a permit expires when a person leaves the country. Consult a Professional Immigration Consultant for the Best Chance of Success We recommend that you do your homework and consult a professional immigration consultant or advisor to ensure that all your requirements pertaining to New Zealand Immigration are adequately addressed. Sometimes this can be as simple as ensuring that your application is completed using the correct application form, a mistake that can cause an unnecessary time delay. Mistakes or shortcuts in this NZ immigration process can have financial and emotional consequences. To talk to an immigration consultant or lawyer about your immigration plans please contact a lawyer at Quay Law. Excerpt: Whether you are already residing in New Zealand or are planning a move to New Zealand, you should be aware of the benefits and risks surrounding your application or current permits. Consider working with immigration consultants and lawyers? ### Business and Investment Visas Looking into Business and Investment Visas for New Zealand? The objective of New Zealand’s business and investment visas, and overarching immigration policy is to help grow New Zealand’s economy by enabling experienced business people to establish or buy businesses in New Zealand, contributing to the country’s economic growth. The business migration category encompasses a number of immigration pathways – two visas for self-employed people or ‘entrepreneurs’, two for investors and one for employees of a relocating business. Navigate the Immigration Act 2009 with an Auckland Immigration Lawyer These visa categories aim to encourage self-employed entrepreneurs to come to New Zealand to operate or found a business that delivers significant benefits to New Zealand and its people. While doing so, they work toward meeting the criteria to be eligible to qualify for New Zealand residence. The person may either purchase an existing business or establish a new business in New Zealand. However, they will need to operate the business successfully for a specified period of time as well as meet a number of other very specific and detailed requirements during this time. For New Zealand’s business and investment visa categories, it’s important to get professional advice from an immigration lawyer experienced in these applications. The key to a successful application lies in having a proper business plan, including: Financial projections for a number of years. A proper assessment of the market in which the business will operate. Acceptable proof points as to why INZ should believe your business will succeed. Succeed when applying for business and immigration visas The investor visa categories enable people with significant funds to invest in a range of specific investment vehicles. The rules governing the sort of investment vehicles in which you may invest to meet the conditions of the investor visa category are detailed and complex. You will need to engage professional legal assistance to help you through this process. For more information about business and investment visas, or to start your immigration application, please contact Quay Law’s friendly immigration lawyers and consultants. Excerpt: The objective of New Zealand’s business and investment visas, and overarching immigration policy is to help grow New Zealand’s economy by enabling experienced business people to establish or buy businesses in New Zealand, contributing to the country’s economic growth. ### Why is it important to update your will The importance of updating your will If you should die, having a valid will, also known as a “last will and testament”, is the only way to ensure that your assets and possessions are distributed to the people that you want them to go to, and in the way that you want them to be distributed to those people. However, the key word here is having a valid will. That’s because a legal will or parts of a will can be deemed to be invalid. Did you know that? Not many people do. So if you have a will (and making a legal will is something that everyone over the age of 18 should do) then you should definitely review it with your wills and trusts lawyer to ensure it’s still a valid will. Legal requirements to update your will Before 1 November 2007, when the Wills Act 2007 came into effect, documents that were intended to be a legal will but that failed to meet certain formal requirements, were deemed to be invalid as a will, often resulting in much-added heartaches, such as an intended beneficiary being deprived of an inheritance. A valid will had to be in writing, properly signed and be properly witnessed by two witnesses. Some of the things that can make a last will and testament, or parts of it, invalid, are things such as the following: • If the will was made before the will-maker got married or entered into a civil union, or ended their marriage by court order. • If it can be shown that the maker of the will was in any way subject to undue pressure or influence to dispose of their property in a certain way. • If the will-maker was not of sound mind or was under-age when they made the will. • If the will-maker made handwritten changes to an existing valid but neglected to sign or initial the changes and have them properly witnessed. • If a will was drafted by a lawyer but the will-maker died before they could sign the will. The Wills Act of 2007 and its impact Prior to 1 November 2007, documents that were intended to be a legal will but which failed to meet the various formal requirements of a valid will were deemed to be invalid. However, the Wills Act 2007 has made some important changes by allowing a Court of Law, in certain cases, to validate documents that record the testamentary intentions of the deceased as a valid will. The focus of these changes was to ensure that a will-maker who set out to express their genuine last will and testament, should not have those wishes frustrated merely by various legal technicalities. Now the Courts can validate certain documents, otherwise deemed as invalid previously, as valid wills. However, this does involve an application to the High Court under Section 14 of the Wills Act 2007 and still needs certain requirements to be met. Rather than have to go through a legal rigmarole involving the Counts, we recommend instead that you review your last will and testament every few years with your wills and trusts lawyer, just to be sure your will is still a valid will. Validating a will with the help of a lawyer should also be done when your circumstances change, for example, you get married or enter into a civil union or de facto relationship, or when relationships break up. Helping you validate your will It’s important to make sure you constantly stay on top of your estate planning by ensuring that your will and power of attorney are updated regularly. For expert advice as to whether your current will is still a valid will, or if you need to update or amend your will, simply call 09 523 2408 to speak with your Auckland lawyer at Quay Law. We’ll also provide you with a quote of the cost for amending your will, as there’s no fixed price for updating a will because each person’s circumstances are unique. [button size='large' style='' text='Contact Your Conveyancing Lawyer in Auckland' icon='' icon_color='' link='https://lawyerinauckland.co.nz/contact-a-solicitor/' target='_self' color='#ffffff' hover_color='#ffffff' border_color='' hover_border_color='' background_color='#770000' hover_background_color='#770000' font_style='' font_weight='400' text_align='center' margin='20'] Excerpt: If you should die, having a valid will, also known as a “last will and testament”, is the only way to ensure that your assets and possessions are distributed to the people that you want them to go to, and in the way that you want them to be distributed to those people. ### New Zealand 2018 immigration changes The latest immigration news is that Immigration New Zealand has increased the remuneration thresholds for Skilled Migrant visa and Essential Skills visa applications, with effect from 15 January 2018. What’s behind the 2018 immigration changes? We’ve all seen how, year on year, annual surveys show that New Zealand is one of the best countries in the world in which to live. So we’re not surprised it’s also one of the most popular immigration destinations in the world too. However, while New Zealand needs and welcomes skilled migrants from all over the world to fill existing skills gaps in its workforce, it also has to make sure that its own citizens are not disadvantaged when it comes to finding employment in their own country. As a result, New Zealand immigration law, and its rules and regulations, change constantly to be able to get the right balance between ensuring high employment levels for New Zealanders while at the same time making it possible for skilled migrants to work in New Zealand and help promote the country’s continued economic growth. 2018 immigration changes to remuneration thresholds in visa categories In a previous article we explained how, in August 2017, Immigration New Zealand was tightening immigration rules and points categories by, among other things, introducing remuneration or salary thresholds in the Skilled Migrant and Essential Skills visa categories, to help better manage migration levels. From 15 January this year, Immigration New Zealand has increased those remuneration thresholds for the Skilled Migrant and Essential Skills visa categories. Why revise the visa salary thresholds? The remuneration thresholds introduced last year for the Skilled Migrant and Essential Skills visa categories are indexed against the New Zealand median income, which is updated annually. As mentioned earlier, New Zealand immigration law is also focused on making sure that New Zealanders seeking employment in their own country are not pushed to the back to the employment queue by lower-paid migrants. In a nutshell, the minimum income threshold for a resident visa application under the Skilled Migrant immigration visa category has increased from NZ$48,860 to NZ$50,523; while the minimum income threshold for the temporary Essential Skill work visa category has increased from NZ$41,537 to NZ$42,952. Here’s an overview of what’s changed in the remuneration thresholds for these visa categories SKILLED MIGRANT IMMIGRATION VISA remuneration threshold for employment in a job at: Before 15 January 2018 From 15 January 2018 ANZSCO (Australian and New Zealand Standard Classification of Occupations) skill levels 1 to 3 $23.49 per hour or more (or equivalent annual salary) $24.29 per hour or more (or equivalent annual salary) ANZSCO skill levels 4 and 5, or a level not included in ANZSCO $35.24 per hour or more (or equivalent annual salary) $36.44 per hour or more (or equivalent annual salary) To earn bonus points $46.98 per hour or more (or equivalent annual salary) $48.58 per hour or more (or equivalent annual salary) ESSENTIAL SKILLS WORK VISA remuneration threshold for employment in a job at: Before 15 January 2018 From 15 January 2018 ANZSCO (Australian and New Zealand Standard Classification of Occupations) skill levels 1 to 3 $19.97 per hour or more (or equivalent annual salary) $20.65 per hour or more (or equivalent annual salary) ANZSCO skill levels 4 and 5, or a higher level not included in ANZSCO $35.24 per hour or more (or equivalent annual salary) $36.44 per hour or more (or equivalent annual salary) How do these changes to visa salary thresholds affect current visas and visa applications? The 2018 visa remuneration threshold changes will not affect visas that have already been granted, nor will they affect work visa applications or immigration or residence visa applications received by Immigration New Zealand before 15 January 2018. However, any new work visa applications or renewal, or immigration or residence visa applications made on or after 15 January will be subject to the new remuneration thresholds. For more information about the recent immigration changes, simply contact the friendly Auckland immigration lawyers and consultants at Auckland law firm Quay Law. The key to successful New Zealand visa applications New Zealand immigration law is complicated, and, as mentioned above, the rules change constantly in response to the changing needs of the country’s labour market. The key to a successful New Zealand immigration or work visa application is to apply for the right visa category, and then present your visa application properly to Immigration New Zealand. This is where your Auckland immigration lawyer at Auckland law firm Quay Law can be a great help. Our immigration lawyers understand the finer details and rules of New Zealand immigration law and can give you the best possible immigration advice for your unique situation. So contact the immigration consultants at Quay Law today. [button size='large' style='' text='Contact Your Conveyancing Lawyer in Auckland' icon='' icon_color='' link='https://lawyerinauckland.co.nz/contact-a-solicitor/' target='_self' color='#ffffff' hover_color='#ffffff' border_color='' hover_border_color='' background_color='#770000' hover_background_color='#770000' font_style='' font_weight='400' text_align='center' margin='20'] Excerpt: The latest immigration news is that Immigration New Zealand has increased the remuneration thresholds for Skilled Migrant visa and Essential Skills visa applications, with effect from 15 January 2018. ### Buying a property? A property auction – how does it work? A property auction is a way to sell or buy a property through a process of negotiation open to the public. The intention behind the process of publicly negotiating the price is to ensure the property is bought or sold at its true market value at the time of the auction. Often, the reason for holding an auction is that the seller is not sure of the property’s market value. So, if there’s a chance there will be a fair bit of interest in the property, the seller may decide that holding an auction is a good way to get ‘the market’ to determine the value of the property. At the auction, the buyer is, in effect, ‘the market’. If there are two or more people interested in it and they compete with one another for it, then the seller may even be able to get a better-than-market-value price for it. Sometimes, however, even if the seller knows what their property is worth, they might simply want to get a quick, unconditional sale, and feel that an auction as the best way to make this happen. Before the auction A property for sale by auction is usually marketed, including open homes, for a number of weeks before the auction. The seller’s real estate agent will use this pre-auction period to get feedback from people who view the property about what they think it is worth. This information will be used to help the seller set a realistic reserve price for the property at the auction. The reserve price is the lowest price the seller is willing to accept for the property. Usually, only the seller and their estate agent and the auctioneer will know what the reserve price is. Sometimes, the seller may be willing to take offers before the auction. This will be made clear in the marketing information about the property. If you’re interested in the property, make sure you register your interest with the property’s real estate agent. That way, if they do get any pre-auction offers, they will also give you a chance to make an offer. Pre-auction offers If you do want to make an offer before an auction is held, it will have to be an unconditional offer and be accompanied by a deposit, usually 10% of the full offer price. The deposit must be paid into the trust account of the seller’s lawyer. If the offer is successful, the lawyer will hold it ‘in trust’ until the property is transferred to the buyer, at which point it will become part of the settlement amount. If the offer is not successful, the deposit will be refunded in full. If the seller is interested in your pre-auction offer, their real estate agent will contact all other potential buyers or people who have previously indicated they want to attend the auction to bid on the property, to tell them someone has made an offer on the property. If these people are also interested in making an offer, then the seller has two options: The seller could arrange for the auction to be brought forward. The highest pre-auction offer received will then become the reserve price for the auction. The person who then makes the highest bid will win the auction. The seller could decide they are willing to accept the highest pre-auction offer. Their agent will then begin a process of calling all the potential buyers who want to make an offer until they receive the highest unconditional cash offer. An unconditional purchase When you buy at a property auction you are buying unconditionally. If you are the highest bidder, and you’ve met the reserve price, then you have, in effect, made a cash offer. Once your bid is accepted and the auctioneer’s hammer has fallen, the sale is unconditional and is legally binding. You cannot attach conditions to an auction purchase, so you need to get all your ‘ducks in a row’ before the auction. Do your homework beforehand Buying a property at auction is an unconditional purchase which means that, when the auctioneer’s hammer falls, you have bought the property as it is. Therefore, you need to do all your research on the property before the auction. Here are 5 essential things you need to work through together with your local conveyancing lawyer to get sorted before the auction. Arrange your finance: To bid at a property auction you need to have sorted your finance. Merely being ‘pre-approved’ for a loan is not sufficient, as this only means you are eligible for a loan. Your bank will still need to approve lending you the money for that specific property, so will probably require a property valuation for the property. As soon as the hammer falls at the property auction, you will have to hand over the required deposit (usually by cheque) and pay the balance of the purchase price on the settlement date, when you take possession of the property. So, you have to have your finance completely sorted before the property auction starts. Check the property title: Before the property auction, get your lawyer to check the property title to ensure there are no problems with the title. Ask your lawyer to carefully explain all aspects of the title to you. Check the ‘Particulars and Conditions of Auction’: Usually a set of Particulars and Conditions of Auction for the particular property will be made available to you prior to the property auction by the seller’s estate agent. Make sure you go through these carefully with your lawyer before the auction to ensure you understand everything, especially any conditions that might apply to the property. Get a builders report: Always get a building inspector to thoroughly check the property and provide you with a written report on it before the property auction. If you’re the successful bidder at the property auction, you cannot decide after the auction that you don’t like something about the property. Get an LIM report: Make sure you get an LIM or Land Information Management report before the property auction as this contains the local council's records on the property. Bidding at the property auction Property auctions can be quite nerve-wracking and fast-moving events. Ask the estate agent who is marketing the property to explain the auction process to you. Even better, if you haven’t been to a property auction before, go to one to see how it works so you know what to expect. If you want to bid on a house at a property auction you will need to register with the auctioneer. However, you do not have to be at the property auction in person if you can’t or don’t want to be there or you feel nervous about the whole process. You can arrange to bid over the phone or get someone else to bid on your behalf. At the property auction, the auctioneer will usually explain the auction process and summarize the ‘Particulars and Conditions of Auction’. Then they will start the bidding by asking for an opening bid. To place your bid, you simply let the auctioneer know by raising your hand or catching their eye and nodding or calling out your bid. When the bidding reaches the reserve price, the auctioneer will announce that the property is “on the market”, which means that, from that point, the property will sell to the highest bidder. Once the highest bidder is found, that person becomes the buyer and must sign the purchase contract and pay the deposit, usually 10%. Vendor bids Sometimes, the auctioneer or someone else working on behalf of the seller may make a bid on behalf of the seller. This is called ‘vendor bidding’ and may be used by the auctioneer to kick-off the bidding or move the bidding closer to the reserve price. The Particulars and Conditions of Auction will state whether vendor bids will be used at the property auction. Vendor bidding is only allowed if the property being auctioned has a reserve price, the reserve price has not been met and the auctioneer clearly states that the bid being made is “a vendor bid”. Stick to your budget By the time you’re at the property auction and in the bidding process, you’ve probably already spent a fair bit of time and money on the property, paying for building and LIM reports, and all the other before-the-auction homework. Don’t let this financial, and associated emotional investment, or your competitive spirit, affect your bidding in the heat of the auction. Decide beforehand what the absolute maximum price is that you are willing or can afford to pay for the property, and stick to it. There is no point in taking on something that you cannot afford. Get sound legal advice Buying a property is one of the biggest, if not the biggest, financial transaction you’ll ever make. Never sign any property contract without first getting professional legal advice about what you are committing yourself to. Buying property is not something to be taken lightly, and this is especially true when you plan to buy at a property auction because there’s no going back once the hammer falls. Get in touch with your local Auckland law firm and work closely with your conveyancing & property lawyer at Quay Law to make sure you have all your ducks in a row before you head into the property auction. [button size='large' style='' text='Contact Your Conveyancing Lawyer in Auckland' icon='' icon_color='' link='https://lawyerinauckland.co.nz/contact-a-solicitor/' target='_self' color='#ffffff' hover_color='#ffffff' border_color='' hover_border_color='' background_color='#770000' hover_background_color='#770000' font_style='' font_weight='400' text_align='center' margin='20'] Excerpt: A property auction is a way to sell or buy a property through a process of negotiation open to the public. The intention behind the process of publicly negotiating the price is to ensure the property is bought or sold at its true market value at the time of the auction. ### Timeshare property transfer and conveyancing Are you thinking about buying timeshare property? Do you already have timeshare that you now want to sell? In either scenario, it’s important to consult your timeshare property transfer and conveyancing lawyer for help with the process. Timeshare – also known as shared holiday ownership – originated after the Second World War and has since become an international phenomenon, with Kiwis ranking high in timeshare ownership rates. Timeshare is often marketed as a way to put holiday home ‘ownership’ within the reach of people who cannot afford to buy a second home or may not want to invest so much money in a holiday property that lies unused for most of the year. The timeshare property model Timeshare is a property with a particular form of ownership or use rights, where you, and many other parties, buy the right to use a holiday unit for specific period of time (typically one week or more) at a holiday resort property. A resort management company looks after the management and upkeep of the unit for you, and, because you pool those expenses with all the other timeshare owners, the annual levy you pay for this is still cheaper than trying to look after your individual unit yourself. With some timeshares, you buy the right to use your unit at the same time each year, while others have ‘floating’ options, where you can change your booking period from year to year. Some timeshares give you the right to use the property for a specific number of years, while others give you the right to use it in perpetuity. Owners of certain timeshares can also, through your own timeshare company, become members of timeshare exchange companies like RCI (Resorts Condominium International) or Interval International, enabling you to swap your booking, subject to availability, for one in another resort, either locally or overseas. Timeshare is not a property investment Probably the most important thing to remember if you’re considering buying timeshare is that it is unwise to think of timeshare as a property investment. While it’s certainly an investment in vacation time and vacation options (if you’re part of an exchange facility), it’s definitely not a property investment. So make sure you’re going into it for the right reason. The timeshare market is pretty much always a buyer’s market, not a seller’s market, i.e. you’re not buying in the hope of making money from it further down the line. If you’re OK with that and you buy into the right resort property, then timeshare can provide you with many happy and relatively hassle-free holidays. Sound advice when buying timeshare Our advice when buying timeshare is to always do your research and do not allow yourself to be unduly pressured by the sophisticated and often high-pressure sales tactics used to sell timeshare – don’t ever let yourself be swayed by the ‘prizes’ on offer, such as free or heavily discounted stays at fancy resorts during the ‘sales-pitch weekend’. Before you buy, get as much information as possible about the property and the timeshare company itself, and the financial implications of the deal. Make sure the timeshare company is a member of the New Zealand Holiday Ownership Council, which requires its members to comply with certain codes of ethics and practice. Try to find others who already own timeshare at the same resort and talk to them about the place. Take time to think about everything before you make any decision – and never, ever sign anything before you’ve talked with your timeshare property transfer and conveyancing lawyer and got them to go over the sales contract with you. Selling timeshare So, you’ve bought timeshare at some or other stage, but in the interim your circumstances have changed or perhaps the timeshare holiday arrangement is simply no longer your cup of tea. What are your options? After all, you likely still have obligations to the timeshare in the form of the usual annual levy. Again, it’s important to remember that, as mentioned above, timeshare is not a property investment, and the second-hand timeshare market is always a buyer’s market, not a seller’s market. However, there are a number of options available to you for disposing of your timeshare, subject to the rules governing your specific timeshare property and contract conditions. It’s therefore important to discuss your particular situation with your timeshare property transfer and conveyancing lawyer. If you go with the option to sell your timeshare, then you’ll need to enter into an Agreement for Sale and Purchase of Property in order to complete the transfer of ownership. This process is similar to the usual conveyancing process related to property in New Zealand, so you’ll need the services of your conveyancing lawyer. For more information about the requirements to transfer timeshare property, or for any advice about buying or selling timeshare, please contact your conveyancing lawyer at your local Quay Law. [button size='large' style='' text='Get In Touch with your Auckland law firm' icon='' icon_color='' link='https://lawyerinauckland.co.nz/contact-a-solicitor/' target='_self' color='#ffffff' hover_color='#ffffff' border_color='' hover_border_color='' background_color='#770000' hover_background_color='#770000' font_style='' font_weight='400' text_align='center' margin='20'] Excerpt: Are you thinking about buying timeshare property? Do you already have timeshare that you now want to sell? In either scenario, it’s important to consult your timeshare property transfer and conveyancing lawyer for help with the process. ### What is a property encumbrance and how does it affect the sale and purchase of your property? What is a property encumbrance?  Like people, every property has its own history – and, depending on its history, there could be the proverbial skeleton or two lurking in the cupboard of the property’s title. Having the title to a property simply means you have certain rights to the property – and sometimes those rights come with a ‘baggage’ all of their own, hence the famous expression of “buyer beware” that applies to all property transactions. In a property market as hot as ours, especially in Auckland, many properties end up being sold at auction. In this situation, there’s always a risk that the buyer will end up buying a property with title problems that they may not be aware of up front. For example, you may suddenly find that the garage that has been converted into a bedroom and a second bathroom in the property that you’re bidding on doesn’t have the right permits. Once the hammer goes down and you’ve bought the property, you’ve also bought the issues that go with the property’s title. Of course, finding out ‘title defects’ is not only limited to properties that are bought and sold at auction. There can be defects lurking in any property’s title – the secret to the success of your property transaction is to be able to find out what these might be before you buy, so you can make an informed decision about your property purchase. The best person to help you do so is your Auckland conveyancing solicitor at Quay Law. Clear title versus one with encumbrances So, the important thing when you purchase a property is to make sure you know exactly what rights (or lack of rights) come with the title to that specific property. Of course, what you really want when you purchase a property is to have ‘clear title’ to that property – in other words a property title without any ‘encumbrances’. If it turns out that your new property has an encumbrance on its title, it could cost you a fair bit to get it sorted and, in some cases, you may be permanently stuck with the effect of the encumbrance. All of this is yet another good reason for getting your Auckland conveyancing lawyer to check the property title before you sign the sale and purchase agreement. What exactly is a 'property encumbrance'? An encumbrance is a restriction or limitation, such as an easement, mortgage, covenant, change or other liability, on the title of a property that impedes its use or transfer by giving someone else an interest or right in that property. Sometimes it may be possible to get a specific encumbrance removed, but sometimes this may not be possible, and this could have serious consequences for the future value of the property. Encumbrances on a property’s title can also make it difficult to get a mortgage, because a bank may be hesitant about lending you money to buy a property subject to an encumbrance that could affect its future value. For example, you may discover that the front 5m of your lovely new property is actually within the road reserve and you simply have an easement on that part of the land, giving you the ability to use it but without giving you any rights to actually own it. All good and well of course, until the local authority decides to widen its road, at which point it will take back ownership of its land, and your front garden will suddenly be 5m shorter. An easement is a common type of encumbrance and may cover things such as allowing gas, water or sewerage to flow through the property – these types of encumbrances are often granted to local authorities or utility companies. Other common easements include things like drainage (giving someone the right to drain water over someone else’s land) or 'rights of way'. Owing to the fact that an encumbrance can have binding effects on subsequent owners of land, local authorities often use encumbrances as a convenient way to ensure landowners comply with certain consent conditions, such as, for example, restricting any further sub-division of a piece of land. A covenant is another type of encumbrance that places some type of restriction on the use of the land, such as restrictions on the type or quality of buildings constructed or on the size of the floor plan. This sort of covenant is common in new developments, as a way to ensure that properties maintain a certain standard or level of uniformity. Other examples are height restrictions that may protect a view or limit the height of a tree. While land covenants can be restrictive, they may also mean that the property to which the covenant applies will be more valuable, particularly for future resale. So, while an encumbrance has the potential to lessen the value of a property, in some cases the specific encumbrance can have more positive long-term implications. However, irrespective of whether the effect of an encumbrance is positive or negative, it is critical when purchasing a property that you ensure you do your due diligence on the title of the property in question. Help with doing due diligence on your property purchase Obtaining a search of the title to investigate what encumbrances, if any, need to be attended to prior to settlement is something that your Quay Law conveyancing lawyer will include in their conveyancing service. Their search of the title will alert you to any encumbrances, such as easements, covenants, rights of way, and so on because, if such an interest has been registered over the property’s title it will, unless released before transfer of the title to you, continue to affect the property (and you) after the purchase. For more information on the conveyancing process or if you have any particular question and a property encumbrance, please contact your conveyancing solicitor at Quay Law without delay. [button size='large' style='' text='Get In Touch with your Auckland law firm' icon='' icon_color='' link='https://lawyerinauckland.co.nz/contact-a-solicitor/' target='_self' color='#ffffff' hover_color='#ffffff' border_color='' hover_border_color='' background_color='#770000' hover_background_color='#770000' font_style='' font_weight='400' text_align='center' margin='20'] Excerpt: What is a property encumbrance? Like people, every property has its own history – and, depending on its history, there could be the proverbial skeleton or two lurking in the cupboard of the property’s title. ### The April 2017 NZ immigration visa changes For a long time, record levels of immigration to New Zealand have been seen as an indication of the strength of our economy. However, the New Zealand Government is worried that continuing to allow too many migrants to enter the country could put undue pressure on public services and infrastructure. So, in April 2017, the Government announced changes to the rules for people applying for Skilled Migrant Category (SMC) immigration visas – a points-based system for people who want to work and live here. In October last year, the Government had already increased the automatic selection mark for applicants under the SMC from 140 points to 160. What’s the aim with the recent changes to immigration visas? The Government hopes that with the recent adjustments to the skilled migrant visa points system they will be better able to manage the influx and quality of migrants coming to New Zealand – and be able to do so in such a way so as to improve the contribution that temporary and permanent migrants make to the country’s labour market, without stifling immigration too much and hurting the economy in the long run. From when do the new immigration rules apply? The new changes to the rules for the skilled migrant visa will take effect as from Monday, 14 August 2017. If you do not comply with the new rules and you want to apply for a skilled migrant immigration visa you will need to lodge your applications before Monday, 14 August, otherwise, you will be subject to all of the new rules. Contact your Auckland immigration lawyer as soon as possible to help you with your application. The new immigration rules in a nutshell One of the main changes is the introduction of two new remuneration thresholds, as follows: If an applicant earns less than the median New Zealand income of $48,859, they won't get any points – even if their job was previously classified as ‘skilled’. In other words, under the new rules, applicants with jobs at Australian and New Zealand Standard Classification of Occupations (ANZSCO) skill levels 1, 2 or 3 will now only be awarded points for their employment if they can prove they are paid $48,859 or more per year. A migrant who earns more than $73,299 a year will now also get points, even if their work was not previously classified as ‘skilled’. In other words, people who are not currently considered to be in skilled employment because their job is not in an ANZSCO skill level 1, 2 or 3, may now be able to claim points for their job if they are earning $73,299 or more per year. Migrants will also be able to get extra points for their visa application if they earn more than $97,718 a year. There are also more points available for work experience, recognised post-graduate qualifications, and people aged between 30 and 39. However, migrants will no longer get points for qualifications in areas simply because there is a skills shortage, or for experience and qualifications enabling them to find work in identified future growth areas like ICT, or for having close family already in New Zealand. The qualifications of partners of skilled migrants will also only be awarded points if these are a recognised Bachelor's degree or higher, or a recognised post-graduate qualification. What about holders of temporary ‘essential skill’ visas? The same income thresholds for the skilled migrant visa will apply. In other words, someone eligible for a temporary ‘essential skills’ work visa who earns less than the median income can still work here, but only for a maximum of three years, before they have to submit a new application. It will also be harder for the families of temporary skilled migrants to enter New Zealand. At the moment, the partners and children of such visa holders can get open work visas and student visas, but under the new rules partners and children will only be able to enter the country as visitors and they will only be able to get a work visa if they meet the new requirements themselves. Also, the visas of seasonal workers will now be limited to the length of their work only – and no longer 12 months. Help with your immigration visa New Zealand immigration legislation is complicated – and the rules change constantly in response to the changing needs of the country’s labour market. The key with any application for immigration to New Zealand lies in applying for the right visa category for your unique situation and in presenting your application properly to Immigration New Zealand. This is where your Auckland immigration lawyer can be an immense help – our immigration lawyers understand the finer details and rules of New Zealand immigration law and can provide you with the best possible immigration help. For more information about the recent rule change and to start your immigration application before the new rules come into effect on 14 August 2017, please contact the friendly Auckland immigration lawyers and consultants at Auckland law firm Quay Law. [button size='large' style='' text='Get In Touch with your Auckland law firm' icon='' icon_color='' link='https://lawyerinauckland.co.nz/contact-a-solicitor/' target='_self' color='#ffffff' hover_color='#ffffff' border_color='' hover_border_color='' background_color='#770000' hover_background_color='#770000' font_style='' font_weight='400' text_align='center' margin='20'] Excerpt: For a long time, record levels of immigration to New Zealand have been seen as an indication of the strength of our economy. However, the New Zealand Government is worried that continuing to allow too many migrants to enter the country could put undue pressure on public services and infrastructure. ### Why use a local conveyancing lawyer for your property purchase So, you’ve been hunting high and low in the tough Auckland housing market and you’ve finally found a property you like. Now what? It’s more than likely that your home is your single most expensive asset – in fact, the purchase or sale of a residential property is often the biggest, most important financial transaction that the majority of people will ever make. The increasing complexity of property legislation and conveyancing law, and the fact there’s so much hard-earned money at stake means there’s really no such thing as a simple property transaction. Remember, an Agreement for Sale and Purchase of a property is a legal, binding document – which means that once you’ve signed it, you usually cannot change your mind, unless there are very special conditions for doing so. Therefore it’s very important you get the best legal advice right from the start of the conveyancing process. Actually, a good habit to cultivate is to never sign any document before you get legal advice! Right, back to that ideal property you’ve just found in the tough Auckland housing market. Finding a local conveyancing solicitor At this stage you need the services of an experienced local Auckland conveyancing lawyer to transfer the legal ownership of the property from the seller to yourself. This process, known as conveyancing, involves a lot of paperwork and it’s vital that all aspects of the process are completed correctly. When buying property there’s literally too much at risk to take shortcuts. It’s therefore very important to get sound legal advice as early in the process as possible. When it comes to conveyancing, if the right actions, and the accompanying paperwork, don’t happen at the right time, there can be considerable delays to the transaction – even to the extent of causing the whole transaction to fall through. It’s important to ensure you have a local Auckland law firm – one that specializes in property law – in your court. Your Auckland conveyancing lawyer will have the training and skills needed to deal with the legal intricacies, and the varying degrees of complexity, of buying and selling property. A good Auckland conveyancing solicitor will see to it that nothing unexpected arises during the entire conveyancing process, ensuring everything is completed efficiently and at an acceptable cost. Having certainty about what you’re buying Conveyancing is not simply just a form-filing process – there’s far more at stake. Your Auckland conveyancing solicitor will check for all sorts of potential problems by doing on-title and off-title searches. The on-title search involves checking all aspects of the actual property title itself to ensure there are no complications, for example, things like rights-of-way or covenants on the title that may affect how you can use the property. Your conveyancing lawyer’s off-title search will cover a variety of issues, depending on the property and its location, which is why having a local lawyer who is familiar with your local area is very handy. The off-title search will typically start with the information in the Land Information Memorandum or LIM report. The LIM report contains all the information the local council has on the specific property, including building consents for the structures on the land, the council rates, and public works in the area, for example road developments nearby and local zoning rules. Other off-title searches might include looking at documents, such as building and engineering reports, council and/or survey plans for the area, geo-technical reports on the land’s seismic conditions, and so on. Having your local property lawyer do these searches is the best way to be sure of exactly what you’re buying, rather than what you might think you’re buying! If you are worried about any aspect of the property that these searches reveal, you can get your Auckland conveyancing lawyer to insert clauses in the Agreement for Sale and Purchase to make your offer subject to these items being remedied. Of course, this can only happen if you have given your local conveyancing solicitor the chance to review and approve the agreement beforehand. Yet another very good reason for getting your local conveyancing lawyer onboard right from the start. Managing relationships Conveyancing law also involves a complex web of relationships that your Auckland conveyancing law firm will manage on your behalf – relationships that include your bank, the seller’s bank and solicitor, insurers, estate agents, local authorities, body corporates, mortgage brokers and more – all of whom have very specific requirements for their aspect of the property transaction. While much of this activity might be invisible to you or the seller, you can be sure that your local conveyancing lawyer is working behind the scenes to bring all of these relationships together in such a way to ensure the transaction can be successfully completed. The advantages of employing a local Auckland conveyancing lawyer Employing a good local property lawyer will not only give you the peace of mind of knowing that your rights are being protected under the law, but will also ensure that any issues affecting your property purchase can be resolved as effectively and efficiently as possible. Having a local conveyancing lawyer will also mean that all your appointments with your solicitor are easy and convenient to get to – saving you time and hassle. The team at Auckland law firm Quay Law specializes in all aspects of property law. We offer our clients a friendly, personal service to ensure your important property transaction goes as smoothly as possible. An added advantage of engaging one of our conveyancing lawyers at Quay Law is that we can also help you with many other aspects of law that might relate to your property transaction. For example, if you need help to structure a trust for your property purchase or clarify any tax implications of the transaction, draft a will or ensure other aspects of your estate planning are in place, then our highly qualified team is on hand to help you. So, if you’ve found your dream property and want to start the process to own it, give us a call straightaway. [button size='large' style='' text='Get In Touch with your Auckland law firm' icon='' icon_color='' link='https://lawyerinauckland.co.nz/contact-a-solicitor/' target='_self' color='#ffffff' hover_color='#ffffff' border_color='' hover_border_color='' background_color='#770000' hover_background_color='#770000' font_style='' font_weight='400' text_align='center' margin='20'] Excerpt: So, you’ve been hunting high and low in the tough Auckland housing market and you’ve finally found a property you like. Now what? ### World’s strongest society attracts immigration to New Zealand Did you know that New Zealand has ranked first in the Legatum Prosperity Index for six of the last 10 years, including in 2016? That’s quite an achievement when you realise that the Legatum Prosperity Index is an annual ranking based on more than 100 different variables used to measure 149 nations around the world. The Index provides insights into prosperity patterns across the world’s countries. New Zealand’s consistently high ranking in this and other indexes is also a significant factor in driving the current high levels of immigration to New Zealand. High quality of life makes immigration to New Zealand an attractive option Developed by the Legatum Institute, the Index ranks factors such as wealth, economic growth, education, health, personal well-being and quality of life. In announcing their 2016 Index, the Legatum Institute stated that “free markets, free people, and the world’s strongest society ensure that New Zealand takes the top spot in the Prosperity Index”. The inherent make-up of New Zealand, with its characteristically free and open markets, free and strong society, with high levels of personal freedom, is a significant force in driving the country’s ability to turn wealth into prosperity. This is why New Zealand is described as “the strongest society in the world, with 99% of New Zealanders saying they can rely on family and friends in times of need”. Such a robust social situation plays a significant role in driving high levels of both wellbeing and economic growth. Tops out of 149 countries In the Legatum Index’s 2016 rankings, of the 149 countries ranked, New Zealand was top of the list. That’s an amazing achievement and one that is not lost on people all around the world who are seeking a better life in a safer environment offering opportunities for themselves and their families. Speaking of opportunities, New Zealand is also a very attractive place for business-minded people. For example, according to the Legatum Index, the country has significantly improved its business environment over the past 10 years, rising nine places during this time to rank second only to the United States. Frequent studies and reports talk about how relatively easy it is to start a business in New Zealand, compared with other countries. All of the above are good reasons for attracting people to New Zealand. As a result, over the past few years, New Zealand has become a hotspot destination, with an increasing number of migrants looking to move and work here. Interested in immigrating to New Zealand? New Zealand has a range of immigration visa options depending on whether you want to work here, study, invest or simply enjoy a visit to this amazing country. If you have the capital and / or skills and experience that are in short supply in New Zealand, then moving here could be the life changer you’ve always dreamed of. However, New Zealand has developed its immigration policies to support the country’s economic growth – and it frequently changes the rules and regulations of its immigration policies in order to meet the country’s ever-shifting needs. For example, even as recently as October 2016, significant changes were announced to the New Zealand Residence Programme (NZRP) effective from 1 July 2016 to 30 June 2018. If you would like to know more about these changes, read our recent article about thes immigration policy changes or talk to one of the immigration lawyers at Auckland law firm Quay Law for more information. Use a reputable immigration consultant If you are looking to move to another country, always make sure you use a reputable immigration consultant, and double-check that you’re getting the correct information and advice. If you are looking to immigrate to New Zealand, then, under the New Zealand Immigration Advisers Licensing Act 2007, any person who gives you immigration advice about New Zealand must be licensed by New Zealand’s Immigration Advisers Authority, unless they have been given an exemption. At Auckland law firm Quay Law we are experienced in immigration law and understand it can be confusing. We also have first-hand experience of how stressful immigrating to a new country can be. So, we make it our key priority to provide you with the right advice for your specific circumstances. Are you ready for a move to New Zealand? OK, so you’re reached the point in your immigration process where you are ready to move to New Zealand, but now what? No matter how attractive the change of scenery or the promise of a better life might be in New Zealand, preparation is the key to a successful move. While moving to a new country is daunting enough, getting a job when you get there is probably one of the most important challenges you will face. The more forward planning and preparation you do, and the more work-ready you are, the more time, frustration and stress you will save yourself in the long run. Read our recent article about how to ensure you are job ready when you arrive in New Zealand. Not only are our immigration lawyers at Auckland law firm Quay Law skilled in helping prospective immigrants successfully navigate through the immigration process, but we also partner with a job search agency that can advise you about the New Zealand job market and help you tailor your job search appropriately. Please don’t hesitate to contact us to talk about all aspects of your New Zealand immigration prospects and options, or about ensuring you are as ready as possible to hit the ground running once you arrive in the country that is repeatedly ranked number one in the Legatum Prosperity Index. [button size='large' style='' text='Get In Touch with your Auckland law firm' icon='' icon_color='' link='https://lawyerinauckland.co.nz/contact-a-solicitor/' target='_self' color='#ffffff' hover_color='#ffffff' border_color='' hover_border_color='' background_color='#770000' hover_background_color='#770000' font_style='' font_weight='400' text_align='center' margin='20'] Excerpt: Did you know that New Zealand has ranked first in the Legatum Prosperity Index for six of the last 10 years, including in 2016? That’s quite an achievement when you realise that the Legatum Prosperity Index is an annual ranking based on more than 100 different variables used to measure 149 nations around the world. ### Key considerations when purchasing a unit title property off the plan One of the important decisions you will need to make when you buy a property is whether you should buy an established home or something ‘off the plan’. As the demand for property grows, there is an increasing number of residential unit title developments springing up around the country, with many more developments on the drawing board. Unit title property Residential unit title developments are typically apartment blocks, townhouses and suburban flats. A unit title is a form of multi-unit property ownership, with the unit title owner owning a defined part of a building or development, such as an apartment or unit, and may also have shared ownership of common areas. Collectively the unit title owners of a development make up the body corporate. This is a management structure designed to ensure decisions affecting the development can be made jointly by the owners. Currently, the main New Zealand legislation that governs this form of management structure is the Unit Titles Act 2010. The explicit purpose of the New Zealand Unit Titles Act 2010 is to provide a legal framework for the joint ownership and management of land, buildings and facilities on a socially and economically sustainable basis by communities of individual owners. If you’re purchasing a unit title property, it’s important to ensure you understand exactly to what you’re committing yourself, so get your Quay Law unit title lawyer to carefully work through the documentation relevant to your unit title property purchase with you. Off-the-plan sales Often in the case of these types of property developments, the developer must first secure a certain number of pre-sales before the banks will fund the development and approve mortgage lending for it. It’s for this reason that off-the-plan sales take place ahead of any actual construction starting. While the excitement of being the first person to live in the home and the flexibility to choose your floor plan and colour schemes may make buying off the plan an appealing option, there are some things to be aware of if you intend to do so. The key is to do your research thoroughly before you hand over your deposit and check everything carefully with your unit title lawyer at Auckland Law Firm, Quay Law. Some pros and cons of purchasing a unit title property off the plan Locked-in price. One of the advantages of purchasing a unit title property off the plan is that you’re paying the current market price for a property, even though it will be completed in the future. If the market experiences growth, then the property you purchase off the plan today may increase in value when you finally settle. Low initial capital outlay. Buying off the plan enables you to secure a high-value asset for a low initial capital outlay. While you’re required to secure the property with a deposit, usually 10%, the entire payment doesn’t need to be paid until the property has been built and signed off. This gives you time to organise your finances. Falling property market and/or rising interest rates. There is always a risk that the property market falls between the time you sign the contract and the building is completed, which may cause problems when you try to get financing for the full purchase amount. Also, interest rates could increase before you settle on the property, which could create a problem if you were banking on fixing the term of the loan at the current interest rate. Failed expectations. Purchasing a unit title property off the plan means you don’t get to see what you’ve actually bought until the project is built. So, there is always the risk that what you envision is not what you will receive. Developer goes bust. It’s always possible the developer could go into liquidation before they complete the project. You're backing them to complete the project, so do your research by inspecting other projects they’ve done and making sure they have a good reputation and are in good financial standing. Ultimately, any purchase of an off-the-plan property involves some level of risk which you need to weigh up against the potential return. However, you can mitigate the risk to some degree by ensuring you negotiate a detailed and thorough contract that protects your interests and minimises any unknowns. And don’t forget to have your Quay Law unit title lawyer carefully review your contract! Looking for a conveyancing lawyer in Auckland? So, before you sign on the dotted line… Ensure that your contract contains a clause dealing with the deposit, specifically who will hold your deposit and what will happen to the accrued interest. It’s important that the deposit be held by a third-party stakeholder (either the estate agent or the vendor’s solicitor) until settlement. This is particularly important to prevent the developer disbursing the funds early in the development. Many off-the-plan projects are delayed beyond the anticipated completion date. It’s therefore important to include a ‘sunset clause’ in your property contract, specifying a completion date and permitting you to rescind the contract if the off-the-plan development runs more than a set period over the expected completion time. Sometimes the dimensions and area of a finished unit-title property will vary slightly from the initial plans and specifications. While a developer does have the right to make some changes or variations to the plans, they can only do so as long as they don't materially prejudice the buyer. Usually, the contract will allow for a specific tolerance percentage, which you should try to keep as low as possible. Therefore, ensure your contract contains a clause that gives you the right to cancel the contract and get your deposit back if the variance is greater than say 5% or 10%. The clause should also set out a specific pro rata increase/decrease in the purchase price if the dimensions are slightly more/less than in the initial specifications. Include a specific settlement date in the contract, for example, 10 working days after the issue of the title or the code of compliance certificate or the certificate of practical completion, whichever is the later. Obviously, your contract should contain all the necessary construction clauses for the building of the apartment. Discuss your expectations for the property with your developer and have them written into the contract to avoid disagreement with the developer at the completion of the project. One way to avoid disappointment down the track is to make sure the contract includes a comprehensive and detailed list of inclusions, including how defects will be dealt with. You could also consider including a penalty type clause if the completion of the apartment is delayed (subject to the sunset clause mentioned above), although developers are usually reluctant to include such clauses. Make sure your contract includes a ‘solicitor's approval’ clause. Whatever you do when purchasing a unit title property off the plan, always make sure you do your due diligence. Ensure you thoroughly investigate the body corporate – read all the rules and check that the annual fees are realistic to ensure they can cover the expected maintenance. And double and triple check your contract, ensuring your get good, independent legal advice from your Quay Law unit title lawyer. Visit our website to get in touch with our Auckland solicitors today. [button size='large' style='' text='Contact Your Conveyancing Lawyer in Auckland' icon='' icon_color='' link='https://lawyerinauckland.co.nz/contact-a-solicitor/' target='_self' color='#ffffff' hover_color='#ffffff' border_color='' hover_border_color='' background_color='#770000' hover_background_color='#770000' font_style='' font_weight='400' text_align='center' margin='20'] Excerpt: One of the important decisions you will need to make when you buy a property is whether you should buy an established home or something ‘off the plan’. ### Timeshare conveyancing or Timeshare ownership transfer Are you looking to buy or sell your timeshare?  Do you require a conveyancing lawyer to assist you with the timeshare transfer process? A timeshare is a property with a particular form of ownership or use rights. These properties are typically resort units, in which multiple parties hold rights to use the property, and each sharer is allotted a period of time (typically one week and almost always the same time every year- unless a floating week is allocated) in which they may use the property. Owners of a timeshare are also able to become members of  trading facilities such as RCI or DAELIVE and use in their international and domestic time share exchange service to secure holidays away from their own resort. There are however times when an existing member or owner would like to relinquish  / or sell their ownership to another party.  Under these circumstances, an Agreement for Sale and Purchase of property must be entered into in order to complete the ownership transfer.  This process is similar to the conveyancing process related to property in New Zealand. For more information regarding the timeshare transfer requirements please contact our  Auckland lawyers. Contact Form | Timeshare conveyancing enquiry or call us on 09 5232408. First Name (required) Last Name (required) Telephone (required) Your Email (required) Subject Your Message Excerpt: Are you looking to buy or sell your timeshare?  Do you require a conveyancing lawyer to assist you with the timeshare transfer process? ### Are you across the recent Immigration policy changes affecting New Zealand residence visas? Earlier this month, Immigration Minister Michael Woodhouse announced immigration policy changes to the Government’s New Zealand Residence Programme (NZRP) for the next two years, effective from 1 July 2016 to 30 June 2018. New Zealand Immigration What is the New Zealand Residence Programme? The New Zealand Residence Programme (NZRP) manages the approval process for New Zealand residence visas. The programme comprises the following three visa categories, which reflect the overall goals of the New Zealand Government’s immigration policy: Skilled Migrant Category / Business Category: for skilled workers, investors and entrepreneurs (and members of their immediate family) Family Category: for family members of New Zealand citizens and residents, which includes both uncapped categories (for partners and dependent children) and capped categories (for parents, adult children and siblings) International / Humanitarian Category: for meeting New Zealand’s international and humanitarian commitments, such as the country’s refugee quota and its ‘Pacific Access Category’ The NZRP sets specific parameters for the maximum number of residency visas that can be granted in any one year. It manages this by means of a ‘planning range’ that gives the immigration authorities the flexibility to make fewer residency visa decisions at times of lower demand, for example when the economy slows and fewer migrants are required. The New Zealand Government regularly reviews the NZRP to ensure that the right number and skill mix of people receive New Zealand residency status, in order to deliver the maximum value for New Zealand. Recent immigration policy changes - So what’s changing? The recently announced changes are specifically aimed at better managing residency visa applications in the Skilled Migrant Category and the Family Category. The changes, in a nutshell, are as follows: Reducing residency visa approvals to between 85,000 – 95,000 for the next two years Raising the number of points required in the Skilled Migrant Category from 140 to 160 points. Reducing the number of places under the Family Category’s capped categories to 2,000 per year and temporarily closing the Parent Category to new applications The changes in more detail Reducing the number of residence approvals: The planning range for the NZRP is being lowered for the two years from 1 July 2016 to 30 June 2018, from the previous 90,000 to 100,000 to 85,000 to 95,000 for the next two years. Changes in the Skilled Migrant Category: To help moderate the recent growth trends in applications under the Skilled Migrant Category, and ensure the number of these visa approvals falls within the revised planning range for the next two years, the ‘automatic selection mark’ for migrants applying for residence under the Skilled Migrant Category is increasing from 140 to 160 points. Raising the points will also ensure higher-skilled applicants under the Skilled Migrant Category get priority. This will help the country to strike the right balance between attracting those higher-skilled workers who are more likely to benefit the growth of economy-driving businesses on the one hand and managing the current overall demand by skilled workers in general on the other hand. The changes to the Skilled Migrant Category also include changes to the way applicants give evidence that they meet this visa category’s English language requirements, which will result in more people having to take the formal English language test. Changes in the Family Category: There are two aspects to the changes being made to the Family Category. The number of places in the Capped Family Category (for parents, adult children and siblings) is reduced from the previous 5,500 to 2,000 per year. Also, the Parent Category is now closed temporarily for all new applications, while this Category undergoes a review. Therefore, as from 12 October 2016, the New Zealand Immigration Service will not be selecting any applications from the Parent Category Pool. Need advice about the recent changes from an Auckland immigration lawyer? If any of the recent changes to the NZRP’s residence visa policies concerns you, call your Auckland immigration lawyer at Quay Law as soon as possible. We are experienced in immigration law and understand it can be confusing, and immigrating to a new country can be difficult and stressful. We, therefore, make it our key priority when providing you with immigration advice to put your interests first and provide you with the right advice for your specific circumstances. Visit our website for more information about the full range of our immigration law services. Visit our website for more information about the full range of our immigration law services. [button size='large' style='' text='Contact Your Conveyancing Lawyer in Auckland' icon='' icon_color='' link='https://lawyerinauckland.co.nz/contact-a-solicitor/' target='_self' color='#ffffff' hover_color='#ffffff' border_color='' hover_border_color='' background_color='#770000' hover_background_color='#770000' font_style='' font_weight='400' text_align='center' margin='20'] Excerpt: Earlier this month, Immigration Minister Michael Woodhouse announced immigration policy changes to the Government’s New Zealand Residence Programme (NZRP) for the next two years, effective from 1 July 2016 to 30 June 2018. ### How to be job ready when wanting to immigrate to New Zealand New Zealand is not only one of the most beautiful countries in the world it’s also one of the most desirable in which to live. As a result, over the past few years, New Zealand has become a hotspot destination, with an increasing number of migrants looking to move and work here. Finding a better job or changing career paths is one of the most challenging activities a person can undertake. What with meticulously researching job opportunities and applying for them, compiling resumes, writing eye-catching cover letters and practicing your interview skills, there is a lot that you need to do to ensure you land that desired new job. However, if you’re looking for a career change on a global scale, then all these tasks are greatly amplified. Moving to a new country is daunting enough, and getting a job is just one of the many challenges you will have to deal with in the whole process. If you are wanting to immigrate to New Zealand, no matter how attractive the change of scenery or the promise of a new job or career may be, preparation and getting ready to work is everything. The more forward planning and preparation you do, and the more work-ready you are, the more time, frustration and stress you will save yourself in the long run. Research the New Zealand job market If you’re considering to immigrate to New Zealand, make sure you learn as much as you can about the New Zealand job market and the local work culture. You need to be aware of workplace rules and what your rights and responsibilities are, as these may all be very different from what you’re used to. For example, New Zealand has a comprehensive set of employment laws that help keep workplaces fair and require employers to pay a minimum wage and ensure their workplaces are safe for their employees. Do some research into which industries and work sectors are important in New Zealand, especially those where there is a shortage of skills. Try to build a picture of which companies are big employers in the region you’re thinking of moving to. Then look for basic background on the employers you’re thinking of applying to – the sort of work they do or what they specialise in, who their competitors are, and so on. Employers expect people who are applying to work for them to at least have some idea of what they do. Assess your qualifications for New Zealand hiring requirements Depending on the requirements for your immigration visa, you may need to show that the qualifications you’ve obtained in your home country are comparable to a New Zealand qualification. If you want to work in New Zealand it may be useful to have your qualifications assessed by the New Zealand Qualifications Authority (NZQA) – this will help any prospective employer understand the qualifications you’ve gained overseas. Getting your qualification assessed could take quite a few weeks, even a month or more, so allow plenty of time to get this done. If your industry has a professional body in New Zealand it may be able to advise you whether you’ll need your qualifications assessed or translated. Some professions in New Zealand require their practitioners to be officially registered. If you need to be registered in order to work, you should start the process as soon as possible. Contact the relevant registration authority to see if you meet their requirements and find out what you need to do. Getting together a proof of your qualifications and any other required documents can be a lot of work and take quite a bit of time – and there will probably even be costs involved. So make sure you budget both time and money for all of this when you’re planning your immigration to New Zealand. Start looking for jobs It’s perfectly legal to apply for a job before you get your work visa; you just won’t be able to start working and earning an income until your visa is approved. However, most employers understand the situation and may be quite willing to take your application to interview and job offer stage, on the understanding that their offer is dependent on you acquiring the appropriate residence and/or work visa. If and when you do get a job offer, this will further help you with your visa application. If you already work for a multinational company or a global brand then find out if there are any internal positions within your company that could take you to New Zealand. If this is not going to be possible, then jump on the Internet and do your own job search. Google the more respected jobs databases – don’t forget to check the TradeMe jobs and Seek websites. That said, there are many different ways to research job opportunities in New Zealand. You could research companies where you want to work. They will often post jobs on their websites. You can also contact employers directly to ask if they are hiring. You can also look at the classified section of newspapers to find out who is hiring and where. You could use the services of an employment agency that searches for jobs for you. Work on your resume and cover letter, and your interview skills The best way to ensure you get to the job interview stage is to tailor your resume or Curriculum Vitae (CV) to what local employers expect and look for. It’s also standard practice to submit your resume with a covering letter. The covering letter is a short explanation of why you want the specific job you are applying for and why you think you are a strong candidate for that job. Based on your résumé and cover letter, the employer will decide whether to invite you for a job interview. The job interview gives the employer a chance to meet you and ask questions to see if you are right for the job. The interview also helps you to learn more about the job and to decide whether you really want to work for that organization. After the process is complete, and if the employer wants to hire you, you will receive a formal job offer. New Zealand employers like to check your references, especially references from a number of your previous employers. They do this so they can get a better idea of your work history and skills, and find out more about what sort of person you are. So make sure you ask your current and previous employers for a reference and let them know they may be contacted by a hiring employer asking for a reference. Interviews in New Zealand can be different from the ones you're used to. New Zealanders are quite informal, and this may be reflected in the interview process. However, make sure you act professionally, dress smartly and are on time so you make the right impression. Understand the benefits of networking and volunteer work Immigrating to New Zealand and finding a job is easier if you have an established network of contacts. Networking can also help you search for jobs and get the message out that you are looking for work. You could also consider volunteer work. Working as a volunteer can help you get New Zealand work experience, practise your English, build your network of contacts, make friends, find someone who will be a reference for you, and show potential employers that you are willing to work hard. You may find volunteering opportunities listed on community boards at your local community centre, library or shopping centre. You can also approach charity organisations directly. Just remember, volunteering means performing a service willingly and without pay, so you cannot receive any benefit that can be valued in terms of money, such as accommodation, food or transport. Assistance with immigrating to New Zealand and job search If you’re planning to immigrate to New Zealand, it’s required that you get advice from a licensed immigration adviser or an immigration lawyer to ensure the best outcome for your visa application. Our lawyers in Auckland law firm - Quay Law, are skilled in helping prospective immigrants successfully navigate through the immigration process. We also partner with a job search agency that can advise you about the New Zealand job market and help you tailor you resume, covering letter and job search appropriately. Wanting to Immigrate to New Zealand? Get in touch with your immigration lawyer at Quay Law if you need urgent legal advice or need help with your immigration application. We will be happy to help you and guide you through your immigration process to New Zealand. [button size='large' style='' text='Contact Your Conveyancing Lawyer in Auckland' icon='' icon_color='' link='https://lawyerinauckland.co.nz/contact-a-solicitor/' target='_self' color='#ffffff' hover_color='#ffffff' border_color='' hover_border_color='' background_color='#770000' hover_background_color='#770000' font_style='' font_weight='400' text_align='center' margin='20'] Excerpt: New Zealand is not only one of the most beautiful countries in the world it’s also one of the most desirable in which to live. As a result, over the past few years, New Zealand has become a hotspot destination, with an increasing number of migrants looking to move and work here. ### The property transaction and conveyancing costs People buy and sell homes for a whole number of reasons. Maybe they’re younger and starting out of their own for the first time. Maybe they’re playing the property market by buying places, fixing them up and selling them on. Perhaps their family is growing in size and they need more room. Perhaps they’ve found a new job and need to relocate. Maybe they’re older and want to downsize. Other factors include things like health, retirement, changes in relationships, and so on. Everyone’s situation is unique. Likewise, no two property transactions are exactly alike either. When it comes to transferring the ownership of property (that’s the conveyance bit), establishing whether the title to a property is clear is a relatively straightforward process in New Zealand. That’s the process to find out whether the person who is selling the property to you is actually entitled to sell it, plus details about the type of property title, for example, is it freehold or leasehold and the implications of that. However, while establishing whether a property’s title is clear might be relatively simple, the end-to-end conveyancing process is seldom a simple sell/buy transaction. There are multiple parties involved. In addition to the buyer and seller themselves, there are the seller and buyer’s respective real estate agents, financial institutions, mortgage brokers, insurers and local authorities. Depending on the property itself and/or the nature of the transaction, there could be additional parties involved, such as body corporates and tenants. It’s, therefore, wise to get professional help to look after the legal side of the transaction. It’s then the task of your conveyancing lawyer to ensure that everyone involved in the transaction is dealt with at the right time and in the right way so that the deal can be completed successfully. This will leave you free to take care of the literally thousand-and-one other things that need to be done when buying a property. Conveyancing Costs Buying a new home is an expensive business – in fact, it’s probably the biggest single financial transaction most of us will ever undertake in our lives. While we probably all know this, there are additional activities and costs, including legal costs, associated with a property purchase that we sometimes still overlook. If you’re on a tight budget, it’s even more important that you get a handle on all the potential costs upfront so there are no unpleasant surprises. It’s reasonable that most people would want a good degree of certainty about what they are going to have to pay for any transaction. This is no different in the case of a legal bill, including the conveyancing cost. However, just as no two property transactions are the same, sometimes no two conveyancing costs are the same either. If often will depend on exactly what is required. Therefore, the cost of conveyancing done by a lawyer varies from lawyer to lawyer and practice to practice as there’s no fixed scale for conveyance charges. So, shop around or ask family and friends if they can recommend anyone. Just remember, cheap conveyancing is by no means the best. Your ideal is to find a lawyer who is there for you; you want someone who will return your calls, is not always out at meetings, and who is up to speed on all the intricacies of conveyancing law and the conveyancing process. Here are some questions you could ask your lawyer when discussing the conveyancing costs for your property transaction: What are the conveyancing fees for my specific property transaction? Is the fee fixed or will it increase or decrease according to the work involved? Can the firm act in connection with the mortgage lender? If so, does it charge extra for this? If the firm does not act as the mortgage lender, what will the mortgage lender's legal costs be? Are there any charges for ‘disbursements’ or any ‘extras’ and, if so, what might these be? Is there an extra charge for arranging to transfer the money on completion? • Are there any other charges whatsoever? Who will actually be doing the conveyancing? Will it be a lawyer, a member of the team qualified in conveyancing or an unqualified member of staff? An overview of conveyancing tasks Once you’ve instructed your lawyer to act on your behalf in a property purchase, there’s a range of actions they can manage for you to ensure a successful conclusion to your property purchase. Here’s an overview: Draft an Agreement for Sale & Purchase for you if you are buying the property privately. If you are using a real estate agent, your lawyer can check the contract for any issues and advise on any conditions you should include before you sign it. Do the necessary Title searches. Ensure any conditions in the Agreement for Sale & Purchase are satisfied within the time allowed by the Agreement. Order a Land Information Memorandum or ‘LIM report’ from the relevant Council. This is a very important document as it describes the title of the land, outlines the official boundaries and buildings, the changes allowed to buildings, and any flood risks. Arrange for a building inspection report on the property, if required, to ensure the property is structurally sound and highlight anything that needs fixing. Arrange for a registered valuation of the property – this is often required by the mortgage lender in order for them to approve finance on the property. Apportion council rates and body corporate levies where applicable. When you purchase a property these fees are apportioned, which means you have to pay the seller for any rates they have paid in advance. Prepare the settlement statement and organize settlement to take place on the agreed settlement date. Confirm insurance has been arranged for the property from settlement or possession date. Complete the electronic transfer of the property ownership to the new owner. Get a comprehensive quote of the cost for your property conveyance A contract to purchase a property is a legally binding document – so, you cannot simply change your mind once a contract is signed, unless there are special conditions. Therefore, before you sign any contract, make sure you get the right conveyancing advice from someone you can trust. Please contact us to discuss the full range of legal services available to you, including a comprehensive quote of the conveyancing costs for your specific property transaction. Your local Auckland law firm - Quay Law can help you  with all your conveyancing need. Get in touch with your conveyancing laywer if you need any legal advice, or want to discuss the full range of legal services available to you, including a comprehensive quote of the conveyancing costs for your specific property transaction. Call us now on +64 21 043 2373 or visit http://lawyerinauckland.co.nz/ to find out about our legal services. [button size='large' style='' text='Contact Your Conveyancing Lawyer in Auckland' icon='' icon_color='' link='https://lawyerinauckland.co.nz/contact-a-solicitor/' target='_self' color='#ffffff' hover_color='#ffffff' border_color='' hover_border_color='' background_color='#770000' hover_background_color='#770000' font_style='' font_weight='400' text_align='center' margin='20'] Excerpt: People buy and sell homes for a whole number of reasons. Maybe they’re younger and starting out of their own for the first time. ### NZ’s Reserve Bank cuts down rates to 2 percent The Reserve Bank has just dropped the Official Cash Rate (OCR) by 0.25 percent in the battle to lower the dollar. The rate is now a record low of 2 percent. It is believed that an interest rate cut is a foregone conclusion (source NZ Herald 11 August 2016) Currently sitting at 2 percent, this is the lowest the ORC has dropped since the rate was introduced in 1999. Economists expect Wheeler to ease by 50 basis points - but to spread out the easing, with a 25 basis point reduction today followed by a second cut in November. The central bank's last cut of 25 basis points was in March this year. Play the video to listen to the live stream of the Reserve Bank's Monetary Policy Statement and media conference from earlier today (video source Stuff.co.nz): https://aucklandlawfirm.co.nz/wp-content/uploads/2016/08/1470856924121-Stuff.mp4 In light of these changes, you may possibly consider refinancing any existing mortgages if there is a favourable interest rate movement by the Banks. Visit our website to get in touch with your Lawyer in Auckland at Quay Law today. [button size='large' style='' text='Find Out More' icon='' icon_color='' link='https://lawyerinauckland.co.nz/lawyers-in-auckland/mortgage-refinance/' target='_self' color='#ffffff' hover_color='#ffffff' border_color='' hover_border_color='' background_color='#770000' hover_background_color='#770000' font_style='' font_weight='400' text_align='center' margin='20'] Excerpt: The Reserve Bank has just dropped the Official Cash Rate (OCR) by 0.25 percent in the battle to lower the dollar. The rate is now a record low of 2 percent. ### Property Lawyers Auckland: How to Get the Right Lawyer for Your Property Transaction There’s really no such thing as a simple property transaction. The purchase or sale of a residential or business property is often the biggest, most important financial transaction most people will ever make! To compound matters even further, there’s the ‘little’ matter of Auckland’s super-heated property market. The increasing complexity of our property laws, and the fact there’s a lot of hard-earned money at stake in every transaction involving the sale and/or purchase of property. So, irrespective of whether you’re buying or selling your first home or your retirement home or any other type of property, the stress pretty much remains the same. Even the mere thought of packing up everything and getting the movers in, then arranging for switching off all the services at the old place and setting them up again at the new place is enough to put most people off. And then there’s all the legal paperwork and to-ing and fro-ing to get the actual property transaction sorted. This is where a good property lawyer Auckland is worth their weight in gold! Specialists in property law Perhaps you’ve already organized your financing with your broker or bank, and you and your real estate agent have found the perfect place and you want to sign an offer to purchase. OK, so now what? An Agreement for Sale and Purchase is a legal and binding document. Once you’ve signed it, you usually cannot change your mind, unless there are special conditions. So, it’s important to get the correct legal advice right from the start and to always get legal advice before you sign any document. Property lawyers Auckland are specialists in property law. They have the training and skills needed to deal with the legal intricacies, and the varying degrees of complexity, of buying and selling of all types of property. A good Auckland property lawyer will ensure that nothing unexpected arises during the entire conveyancing process. He will make sure that everything is completed efficiently and at an acceptable cost. What is 'conveyancing'? In law, conveyancing refers to the myriad of legal tasks required to complete the process of transferring legal title of property from one legal entity to another. Apart from being there to take the stress and confusion out of your Auckland property transaction, what exactly will your property lawyer do? Common conveyancing services your property lawyers Auckland will provide Here’s a brief overview of some of the legal actions that your Auckland property lawyer will look after for you during you property transaction. Prepare and/or review the Agreement for Sale and Purchase. A large number of residential Agreements for Sale and Purchase are prepared by real estate agents. Irrespective of whether you’re selling or buying a property, you must have any such agreement reviewed by your property lawyer Auckland before you sign the document. Alternatively, your property lawyer can prepare the agreement for you. Verify title documentation. As part of the property transaction, your Auckland property lawyer will review all the title documentation relating to your specific property. Help you sort your finance. Your property lawyer can help to arrange any mortgage you may require on the property with your bank, including coordinating the necessary documentation required by your bank for this. If you’re wishing to buy property as an investment, your Auckland property lawyer will ensure the ownership structure is correctly put in place. He can also advise you on how the purchase should be structured financially. Oversee due diligence investigations. Your property lawyer will ensure any conditions in the Agreement for Sale and Purchase have been met within the agreed timeframe. This may include working with building inspectors, valuers and the Council to get relevant reports, for example, a property inspection report and a Land Information Memorandum (LIM report). Manage the settlement and possession process. Your Auckland property lawyer will confirm insurance is arranged for the property from settlement or possession date. He will manage the exchange of money and keys, as agreed between the various parties involved in the property transaction, complete the electronic transfer of the property ownership to the new owner, and advise the Council of the change of ownership. Your property law specialists at Quay Law Our Auckland law firm - Quay law has a team of the best conveyancing lawyer who can offer you personalised service and significant resource when required. The advantage of engaging a conveyancing lawyer at Quay Law to help you with your property purchase, sale or transfer is that we can you with different aspects of law as these relate to your overall conveyancing transaction. We specialise in all aspects of property law, namely, the sale and purchase of homes and investment properties, refinancing, commercial property transactions, leasing, subdivisions, building contracts, retirement village transactions and Council-related property matters. Whether you need help with trust and company structuring for your property transaction or clarify any tax implications of the transaction, draft wills and ensure any other aspects of estate planning are in place, our highly qualified lawyers at Quay Law will be more than happy to assist you. Should you require urgent advice on your legal issues, we will be as helpful as possible. Call us now on +64 21 043 2373 or visit http://lawyerinauckland.co.nz/ to find out about our legal services. [button size='large' style='' text='Contact Your Conveyancing Lawyer in Auckland at Quay Law' icon='' icon_color='' link='https://lawyerinauckland.co.nz/contact-a-solicitor/' target='_self' color='#ffffff' hover_color='#ffffff' border_color='' hover_border_color='' background_color='#770000' hover_background_color='#770000' font_style='' font_weight='400' text_align='center' margin='20'] Excerpt: There’s really no such thing as a simple property transaction. The purchase or sale of a residential or business property is often the biggest, most important financial transaction most people will ever make! ### New Zealand Banks shut out foreign buyers - NZ Herald Reports Westpac and ANZ have made a decision to no longer lend to overseas-based buyers of New Zealand property. Other banks are also expected to follow the move to shut the door on foreign investors. The restrictions follow moves by Australian banks to stop lending to foreign buyers of property. Westpac New Zealand has announced that from today it will no longer lend to non-resident borrowers with overseas income. Borrowers on temporary resident visas will only be accepted if they have both a New Zealand address and a New Zealand-based income. ANZ has also announced restrictions that will effectively shut out most non-resident, overseas-based borrowers, including restricting lending to owner-occupied properties. Labour's Finance spokesperson Grant Robertson said the restrictions showed the banks acknowledged both that the housing market was "out of control", and that overseas buyers were playing a big role in that. "It's the goal of a bank to make money from mortgage lending. If they are pulling back from lending on New Zealand housing, then there really is a crisis in the market." The moves come as the Reserve Bank today left the official cash rate at 2.25 per cent, with Governor Graeme Wheeler flagging rising house prices as a risk to the country's financial stability. Wheeler said investors could soon be targeted by new Loan to Value lending rules. He could not give detail on how restrictive any new LVR rules could be. "We are still doing analysis. We would hope to be in a position by the end of the year to have made a decision on that. It could be earlier," Wheeler told a Parliamentary select committee today. Source - NZ Herald [button size='large' style='' text='Get In Touch with your Auckland law firm' icon='' icon_color='' link='https://lawyerinauckland.co.nz/contact-a-solicitor/' target='_self' color='#ffffff' hover_color='#ffffff' border_color='' hover_border_color='' background_color='#770000' hover_background_color='#770000' font_style='' font_weight='400' text_align='center' margin='20'] Excerpt: Westpac and ANZ have made a decision to no longer lend to overseas-based buyers of New Zealand property. Other banks are also expected to follow the move to shut the door on foreign investors. ### Auckland conveyancing - process of buying a home Conveyancing – The Process of Buying a Home – May 2016 Property Law – Published article by Auckland lawyer and conveyancer Ian Mellett Published property law NZ article by lawyer - Ian Mellett (Conveyancing) NZ Home Owners Magazine. Buying or selling a home is one of the biggest financial commitments you will ever make. There are several relatively complicated stages of negotiating and there are a number of things to look out for. In New Zealand, there are several ways to sell and buy a home. Property auction, tender, advertised/ fixed price or by negotiation. Regardless of the method used, perhaps our "Process to buying or selling a property in New Zealand" article would provide some assistance. If you have any conveyancing questions, please contact a conveyancing solicitor at Quay Law. [button size='large' style='' text='Contact Your Conveyancing Lawyer in Auckland' icon='' icon_color='' link='https://lawyerinauckland.co.nz/contact-a-solicitor/' target='_self' color='#ffffff' hover_color='#ffffff' border_color='' hover_border_color='' background_color='#770000' hover_background_color='#770000' font_style='' font_weight='400' text_align='center' margin='20'] Excerpt: Conveyancing – The Process of Buying a Home – May 2016 Property Law – Published article by Auckland lawyer and conveyancer Ian Mellett Published property law NZ article by lawyer – Ian Mellett (Conveyancing) NZ Home Owners Magazine Buying or selling a home is one of the biggest financial commitments you will ever make. ### 9 Things To Remember If You Are a First Home Buyer While the dream of home ownership may be taking a bit of a beating as a result of property price inflation, most Kiwis still say that buying a house is in their life plan. That’s because home ownership is a key part of many people’s long-term financial strategies and can provide the space needed to start a family. However, owning a home is a significant, long-term commitment that requires strong financial standing and the right timing. If you’re a first homebuyer (and you’re on a first home buyer’s budget) be realistic about what you can afford. Know that you probably won’t find your dream house at this stage in your life. If you find 75 percent of what you’re looking for, you’ll have done pretty well for yourself. The keyword when buying a home, especially if you’re a first home buyer, is ‘compromise’! Here are 9 tips for buying your first home: 1. Make sure you’re ready to buy, both emotionally and financially A home is one of the biggest assets you’ll ever have – and the biggest debt. Figuring out why you want a home is absolutely critical before you begin looking at options. Are you going to live in it? Are you going to rent it? Owning a home gives you stability and, once you’re on the property ladder, it opens up opportunities to upsize or upgrade later. However, owning a home also means you’re responsible for maintaining it and paying for everything that comes along with home ownership, e.g. rates and taxes. If you have a mortgage, your payments can increase if interest rates rise. If your circumstances change and you have to move, it takes some time to sell a home or find tenants for it. If you’re a first home buyer, before you do anything, look at your life, your career, your finances and your future expectations, and determine whether buying a house is the right move for you at this time. 2. Get your finances in order first Before you even think about what sort of home you’re after, you need to figure out what you can actually afford. The last thing you want is to get your sights set on a property only to discover that it’s way outside your price range. A good rule of thumb is you should spend no more than 30% of your gross monthly income on housing. That means taking an inventory of your income, expenses, assets, savings and debts. Debts are taken into account when you apply for a home loan, so pay off as many as you can beforehand. Consolidating debts like credit cards, hire purchases or loans into one personal loan can help you pay them off faster. Once you know where you stand, sit down with a financial advisor (your lawyer, accountant or banker) and get some help to determine what you can reasonably afford. Your first home buying budget is the amount you can borrow (which depends mainly on how much you can afford in home loan repayments), plus whatever savings you can contribute as a deposit. In most cases, you will need at least 20% of the house price as a deposit. If you’ve been contributing to KiwiSaver for at least three years, you could qualify for a KiwiSaver HomeStart grant. It’s also a good idea to have an extra $3000 to $5000 over and above your deposit to cover lawyers’ fees, movers’ fees, and the cost of things like builder’s reports and valuations. 3. Calculate each and every cost Just because a bank says you can borrow $600,000 doesn’t mean you should. You also need to wrap your head around all the other costs involved with owning a home. The deposit and mortgage payments aren’t the only numbers you need to consider, so avoid emptying your bank account for these costs. Property taxes, home insurance and maintenance, repairs and utilities can really add up – and they’re on-going! Plus, it costs money to move, change locks, put down utility deposits and buy things you never needed before, like a lawn mower. Do all your sums. 4. Find the right team You don’t have to go through the first home buying process alone. Friends and family who have bought homes can provide invaluable advice about what to do and not to do. Make sure you find a real estate agent who is right for you. Your relationship with your real estate agent is just like any other financial relationship. It’s important that you mesh well and that they’ll go to bat for you when you find the house you want. Get yourself a good lawyer (Read our 5 tips for finding the right lawyer.). There’s a range of legal procedures to be completed when you buy a home. Your lawyer will check contracts, make sure the property’s title is in order, transfer the property to your name (this is known as conveyancing), register your mortgage on the property title, and help you to make a Will and Power of Attorney. A mortgage broker works with banks and lenders to find you a mortgage. They’re paid a commission by the bank or lender that gives you your loan. Not all lenders offer loans through brokers. If you’re not using a mortgage broker, talk to your bank’s home loan manager. 5. Decide where you want to live No matter how much the property market has changed in recent years, one adage still matters a lot: location, location, location. While you may be happy living in several neighborhoods in your city, you won’t be happy if you choose the wrong location. And that’s where your research should start: deciding exactly where you want to live. Location plays a big part in determining a house’s price – and its resale potential. Different areas have different things to offer. A sought-after area holds its value because other people will want to live there too – but competition is tough and prices steeper. Check neighbourhood profiles. Consider things like facilities – shops, places to eat, libraries, churches, playgrounds, supermarkets, schools, doctors; safety – including crimes statistics; transport links; proximity to friends and family; and the overall ‘atmosphere’ of the area – are neighbours pleasant and tidy? Group houses by area – it’s a good idea to visit several open homes in the same area at the same time. Visit the locations you’re interested in at different times of the day – and during the week as well as on the weekend. Check out the traffic, noise levels, sun – decide how the area makes you feel. Your choice of real estate agent will also depend on where you want to live because a neighbourhood expert can help you find the best home for you at the best price. You want an agent who works in the areas you’re looking in. 6. When you look at homes, focus on the right things Put together a list of what you’re looking for in a property. Break it down into ‘must-have’, ‘nice-to-have’ and ‘must-not-have’. Don’t be distracted by the owner’s wacky décor, paint colors, dirty carpet or anything that is easy to change. Focus on the things that are not easy to change, e.g. you can’t easily add another bedroom, a better location or a more functional floor plan. After visiting each house, make a list of its pros and cons so you can compare it against others later. When you’ve found a house you like, go back again for a thorough inspection. Try to visit (or at least drive by) at different times of day and in different weather to get a feel for what it might be like to live there. Get a friend or a family member to visit the house with you for an objective view. Talk to the neighbors about the neighborhood and about the houses you’re considering. The neighbors will know if there are (or have been) problems – things such as barking dogs, petty crime, the size of utility bills or worse, such as drug usage. Methamphetamine contamination is a growing problem in New Zealand, with Kiwi homeowners spending millions each year fixing P-contaminated houses. A recent article in the NZ Herald said that “the surge in P-contaminated homes – badly damaged from their use as P labs or from previous inhabitants' personal use of methamphetamine – has been likened to potentially being as costly to homeowners as the leaky home crisis”. Yet another very good reason for would-be home buyers to talk to neighbours of the homes they’re thinking of buying and check on the background of the people who previously lived there. If the real estate agent has any information about downfalls of the house, they have to tell you – but only if you ask. 7. Know what’s important to you No house will be perfect – as we said at the start, the key word when buying a home, especially if you’re a first home buyer, is ‘compromise’! So ask yourself what you are willing to compromise on. If you want to be in a specific school area, are you willing to accept a smaller house? If you want to be near the water, could you be happy with an apartment? Are you willing to accept a longer commute to get a larger house? 8. Ways to buy a home There are three main ways to buy a home in New Zealand – by offer and negotiation, by tender and at auction. Buying by offer and negotiation: the property is advertised at a set price or price range. You make an offer in writing and then negotiate with the seller until you both agree on a price and any conditions of purchase or sale. The process is good for buyers as you can put conditions on your offer that will let you check the place out fully before you’re committed to buying it. You can make your offer conditional on your finance being arranged or on an acceptable builder’s inspection or LIM report. Sellers can also add conditions, such as an ‘escape clause’, giving them a way to back out of your offer if they get a better offer, or they can give you a deadline to make your offer unconditional. Buying by tender: in a tender, no price is set. If you’re interested in the property, you submit an offer in writing in a ‘closed bid’ and the seller picks the offer they like the most. Buying at auction: everyone interested in the property bids for it at the same time. The highest offer wins, as long as the seller’s reserve is met. Because people are bidding against one another, the competitive spirit of the bidders can drive up the price of a property. It’s important to never get swept up in a bidding war and end up paying more than you should or wanted for a property. Your bid at an auction is binding, so you have to have done all your pre-purchase work beforehand, including arranging your unconditional finance. There’s also a fourth, though a less common way to buy a home, namely by private sale. Private sales usually follow the same process as with the ‘offer and negotiation’ process, except all the negotiation is done directly with the seller instead of through a real estate agent. It’s very important that you consult your lawyer before signing or committing to anything in a private sale. 9. Making your offer Find out as much as you can about the property before you make an offer. Compare it, including its price, with similar properties in the area. Get a valuation. Figure out how much you would need to spend on it to make it truly your own. Decide what your first offer is and what your highest offer will be, and stick to it. You’ll also need to decide what conditions you want to put into your offer. If you’re buying by ‘offer and negotiation’, you can make any checks and reports as conditions of your offer, and do them while you’re negotiating. If you’re buying at auction or by tender, you’ll need to have most of this sorted beforehand. Once your offer is agreed and everyone’s signed the Sale and Purchase Agreement, any conditions in the Agreement need to be met. When they are, your offer goes ‘unconditional’, at which point you’re legally bound to buy the home. Do you need support with your conveyancing? Contact a conveyancing lawyer in Auckland at Quay Law. Our conveyancers will support you during your property purchase or sale process. [button size='large' style='' text='Get In Touch with your Auckland law firm' icon='' icon_color='' link='https://lawyerinauckland.co.nz/contact-a-solicitor/' target='_self' color='#ffffff' hover_color='#ffffff' border_color='' hover_border_color='' background_color='#770000' hover_background_color='#770000' font_style='' font_weight='400' text_align='center' margin='20'] Excerpt: Make sure you’re ready to buy, both emotionally and financially A home is one of the biggest assets you’ll ever have – and the biggest debt. Figuring out why you want a home is absolutely critical before you begin looking at options. ### Important Tips on How To Sell Your Company. While developing an idea to start a business takes time, selling that same business can be just as complicated. As an entrepreneur, it’s not easy to think about selling your business, but knowing when the time is right, and planning ahead of time, will improve your chances of getting the best price and outcome. Whether you profit will depend on the reason for the sale, the timing of the sale, the value of the business and how you go about the sales process. The business sale will also require much of your time and, once the business is sold, you'll need to determine what to do with the profit. So the question now is, should you sell your business? Here are 7 topics to help you build a solid plan and make the negotiations around the sale of your business a success. Know why you want to sell your business Potential buyers are going to have a lot of questions. They’ll want to know the extent of the business, the history of the business, the valuation of the business, and many other details. However, the first question that will always come up is: Why are you selling your business? The way in which you answer this question can make or break the deal. You have to know exactly why you’re selling your business and be able to explain this clearly. Prepare well in advance for the sale Selling a company should never be a spur-of-the-moment decision. It takes time and effort to prepare for the sale of a business – don’t think you can start putting things together the month before you sell. Selling a business requires an understanding of the value and worth of the business. Gather your financial statements and tax returns from as far back as possible and review them with an accountant. Having clear books and records helps a buyer with due diligence, so make sure you can produce a number of years’ of tax returns that are accurate and show maximum profitability, so you can get the best price for your business. Develop lists of equipment and stock that are being sold with the business, as well as of contacts related to sales transactions and supplies, and have all relevant paperwork, such as your property lease or title documents, ready. Use this material to put together an information pack for financially qualified potential buyers. Include an overview of the history of the business and how it is conducted. Finally, make sure your business is presentable for sale – before you go to market, fix or replace any areas of the business or equipment that are broken or dilapidated. Never go it alone It's important to figure out who you need on your team to help you through the sales process and ensure you get the best price for your business. Remember, the buyer is likely to have a good team to go over your business, so you should also have an equally good team on your side. You’ll likely need an accountant, an appraiser, an attorney, and a business broker. You’ll also need a personal accountant and attorney to help you with your personal financial planning once you receive the proceeds from the sale of your business. A broker is especially valuable in the latter stages of the sales process to help with negotiation, due diligence, and the final sale. Granted, selling the business yourself allows you to save money and avoid paying a broker's commission. And a self-sale is also the best route when the sale is to a trusted family member or current employee. However, in other circumstances, a broker can help free up time for you to keep the business up and running, keep the sale quiet and get the highest price (because the broker will want to maximize his or her commission). Your lawyer will be able to discuss with you the legal implications and advise you on these before you sign the sale agreement. Your lawyer will incorporate proper clauses into the agreement to safeguard your contractual rights and carry out due diligence to ensure that your risk is mitigated to the lowest level possible. Know the value of your business Even if you have a rough idea of what your business is worth, this is only a number to guide you in your consideration. You’ll still need to get an accurate valuation to make sure you don't price it too high or too low. Contact a business appraiser to get a valuation. The appraiser will draw up a detailed explanation of the business's worth. This document will bring credibility to the asking price and can serve as a gauge for your listing price. You may need multiple valuations depending on the nature of the business, the potential buyer(s) and the deal that is being proposed. Determine whether it’s the right time to sell your business What’s the ‘perfect time’? There’s no easy answer to this question because each business is different and timing depends a lot on the ebb and flow of the particular industry and the economy as a whole. Another reason why it’s important to get professional advice and help. Many people wait until their business is on the decline to sell. That's the exact opposite of what you should do. The time to sell is when your business is at the top of its game! Before selling, also, look at current market conditions for your industry. Changing technology and other business trends can sometimes prove too much for some businesses. Keep your eyes trained a few years ahead, and if you don’t believe you can keep up with changing technology and other trends, then sell before your failure to adapt catches up with you. Find a buyer The sale of a business may take many months – in some cases even years – as finding the right buyer can often be a challenge. However, once you have prospective buyers, keep the process moving along: • Get two to three potential buyers just in case the initial deal falters. • Stay in contact with the potential buyers. • Allow some room to negotiate, but stand firm on a price that is reasonable and aligned to the true worth of the business. • Put any agreements in writing. Potential buyers should sign a non-disclosure / confidentiality agreement to protect your information. • The buyer may also require you to sign a non-compete agreement, in which you agree to not start a new, competing business that would entice your former customers away from your old business. Decide what to do with the profits Selling a business is a big deal. It involves a lot of time and will radically change your life. Hopefully, you’ll also receive a good sum of money from the sale of your business. Large sums of money will force you to decide what you’re going to do with your life – and the money. So before you even think about selling, think about your goals for your future. And once you’ve sold your business, take some time (at least a few months) before spending the profits from the sale. Use this time to talk to your accountant and lawyer to create a plan of your financial goals, and learn about any tax consequences associated with your sudden wealth. Consider how you might invest the money and focus on long-term benefits, such as getting out of debt and saving for retirement. Your lawyer in Auckland at Quay Law is fully qualified to help you achieve the best outcomes when it comes to selling you business, and ensuring that your legal risk is kept to a minimum. If you’re considering the sale of your business, contact your local lawyer at Quay law today to discuss your options. [button size='large' style='' text='Get In Touch with your Auckland law firm' icon='' icon_color='' link='https://lawyerinauckland.co.nz/contact-a-solicitor/' target='_self' color='#ffffff' hover_color='#ffffff' border_color='' hover_border_color='' background_color='#770000' hover_background_color='#770000' font_style='' font_weight='400' text_align='center' margin='20'] Excerpt: While developing an idea to start a business takes time, selling that same business can be just as complicated. ### Find a lawyer - 5 tips to get it right the first time For some unfortunate people, the first time they realise their lawyer is not as competent as they need to be, is when they’ve lost out on money, relationship, time or rights, or even all of those. They may not even realise it until years later, if ever. This is because people often don’t have enough experience in working with lawyers to understand the difference. Find a lawyer who is a problem solver As with a patient and doctor relationship, you bring your legal problem to your lawyer, and they resolve it. A great lawyer will solve the problems you might not even yet be aware you have. Find a lawyer you like Ideally, you’ll be looking to build a long-term relationship with your lawyer. It is likely that he or she will become an integral part of your business operations. Finding someone whose personality is compatible with yours goes a long way in helping to build that long-term relationship. Find a lawyer who will be honest with you Avoid a ‘yes-man’ - often lawyers are approached by clients who already have a pre-conceived idea of what the solution should be. And sadly there are those lawyers who will go to great lengths to appease their clients, just to win their business. Instead they should be pointing out the folly in their client’s thinking. You are paying for the advice and opinion of your lawyer. Make sure they’re giving you an honest analysis, and not just feeding your ideas back to you to avoid telling you what you don’t want to hear. Find a lawyer online We believe every lawyer worth their salt should have an online presence. Read up on their skills and experience and find out which professional associations they are involved with. Find a law firm of the right size There are pros and cons to working with solo practitioners, small firms and big firms. If your business grows to be the next Amazon, you’ll probably need to engage the services of a large law firms - until of course you have your own in-house legal department! Sometimes (although this is by no means always the case) startups and small businesses can find they are a lower priority for larger law firms. Another potential issue of working with a larger firm, is that you never know who you’ll actually be working with (see first 3 points). We all need to start somewhere of course, but do you want your work assigned to a new lawyer fresh out of law school? Till Death Us Do Part Of course nothing lasts forever, and if you don’t feel you and your lawyer are on the right page, it’s probably best to pick up the phone and discuss your concerns (better to do this in a conversation than via an email). If that doesn’t work, and you feel you’d like to come to another arrangement, your lawyer is, in most circumstances, obligated to return your files to you or forward them to your new attorney. If you have funds remaining in the retainer account, these should be returned to you as well. If you’d like further information on how to find a lawyer that will suit your needs, or you’d like to discuss any legal or conveyancing issues, contact the legal team at Quay Law - we’re here to help. [button size='large' style='' text='Get In Touch' icon='' icon_color='' link='https://lawyerinauckland.co.nz/contact-a-solicitor/' target='_self' color='#ffffff' hover_color='#ffffff' border_color='' hover_border_color='' background_color='#770000' hover_background_color='#770000' font_style='' font_weight='400' text_align='center' margin='20'] Excerpt: For some unfortunate people, the first time they realise their lawyer is not as competent as they need to be, is when they’ve lost out on money, relationship, time or rights, or even all of those. ### 7 Fundamentals of Relationship Property You Need To Know Relationships are inevitably an adventure, and no one can ever say how they will turn out.  People change as they grow older, life circumstances change, dreams and desires alter.  And a relationship that might at first have seemed to be in for the long haul, may not turn out the way you expected. You might be married, or maybe you have elected to live with someone in a more ‘carefree’ relationship.  Perhaps you prefer to maintain separate residences. That does not automatically guarantee that “what’s yours is yours” if your relationship should fail ... The Property (Relationships) Act and You If you are married, in a de facto relationship, or in a civil union partnership, and your relationship ends by separation or one of you dies, you will be affected by the Property (Relationships) Act. In the case of de facto relationships, the Act applies to: de facto relationships of at least three years, de facto relationships of less than three years where the couple has a child, de facto relationships of less than three years were significant contributions to the relationship have been made by one partner . The latter would result in serious injustice, and so the relationship is also covered by the Act. Both parties are equal in the eyes of the law The Property (Relationships) Act is based on the following principles: The two people in a relationship are equal, Both financial and non-financial contributions to the relationship are treated equally, and Any economic advantages or disadvantages that one party may have had as a result of the relationship, be taken into account when dividing up the property. Read about Relationship Property And Your Relationship Property Agreement What is relationship property? Relationship Property is the property that gets divided when a relationship ends.  It includes things such as: The family home and chattels, such as the furniture and the family car Any property obtained by either party before the relationship but intended for common use Property owned jointly Property obtained by either party during the relationship.  This excludes gifts and inheritances unless the owner allowed these to become part of the relationship property.  An example would be  inheritance money used to buy the family car. Income earned during the relationship Joint debts, superannuation or life insurance acquired during the relationship Any increase in the value of relationship property or income from it or money obtained from its sale Knowing the nature, status and value of assets and liabilities is, therefore, fundamental to the division of relationship property. Is there a property that is separate from relationship property? Yes, a property that is kept separate from the relationship, and which is usually not shared at the breakup but remains with the person who owns it, is known as ‘separate property’.  However, if you want to protect any separate property, you need to make the appropriate legal arrangement to ensure it remains separate from any relationship property.  Often, over time, separate property can become intermingled with relationship property or be used for purposes in the relationship, in which case it could be deemed relationship property at the time of any breakup. Children affect the division of relationship property Under the Property (Relationships) Act, the court must by law consider the interests of any dependent children.  It may allocate relationship property to help the children.  For example, the court may allow the children’s main caregiver to keep the family home and/or delay the division of relationship property.  This would be to prevent unfair difficulty for the main caregiver and the children. ‘Contracting out’ of the Property (Relationships) Act A couple can make their own agreement about how to manage their property during their relationship and how to divide it if the relationship breaks up. This is known as ‘contracting out’ of the Act - also called a prenuptial agreement or ‘prenup’.  However, a court can still override this agreement if it felt it was unfair to one of the partners. When you draw up a contracting out agreement, you must ensure it is in writing and is signed by both parties.  Both parties must also have obtained independent legal advice before they sign.  Their signatures must be witnessed by their lawyers, who certify that they have explained the implications of the agreement to their clients.  If this is not done, the agreement may not be legally enforceable. Sound legal advice is crucial There is no substitute for getting sound legal advice from an experienced family lawyer.  Never rely on advice from well-meaning friends or the internet.  Talk to your experienced family law specialist at Quay Law to ensure you get the best solution for your relationship property matters. [button size='large' style='' text='Talk To Your Lawyer in Auckland Now' icon='' icon_color='' link='https://lawyerinauckland.co.nz/contact-a-solicitor/' target='_self' color='#ffffff' hover_color='#ffffff' border_color='' hover_border_color='' background_color='#770000' hover_background_color='#770000' font_style='' font_weight='400' text_align='center' margin='20'] Excerpt: Relationships are inevitably an adventure, and no one can ever say how they will turn out. People change as they grow older, life circumstances change, dreams and desires alter. ### Rugby World Cup super fan - Ian Mellett Auckland lawyer, Ian Mellett has plenty of reasons to be a proud South African rugby supporter, and says the loss to Japan on the weekend has not dented any of them. Ian Mellett The 53-year-old lawyer, originally from Port Elizabeth, moved to New Zealand in 1997 - two years after witnessing first-hand the nation inspiring 1995 Rugby World Cup in South Africa. "One of the South African rugby writers, Gavin Rich, he actually was quoted as saying he thought the 'Boks were arrogant' and I'd go along with that." Mellett said although South Africa contributed to their own demise, he could not ignore Japan's performance. "I won't deny the fact that the Japanese played fantastic rugby. It is a huge highlight of that nation's history and well done Eddie Jones because he masterminded it, no doubt.... Read the full New Zealand Herald article here:-  RWC Super Fan - Ian Mellett Ian Mellett, a passionate rugby supporter spoke on a live  Australian news broadcast in 2013 as he discussed his  Rugby World Cup in 1995 experience.     To contact Ian. Excerpt: Auckland lawyer, Ian Mellett has plenty of reasons to be a proud South African rugby supporter, and says the loss to Japan on the weekend has not dented any of them. ### New Zealand Immigration Adviser - Look out for immigration scams Look out for immigration scams All over the world, people are on the move, and more so than ever before. Nowadays, it’s relatively easy to get to know about other places and look at making a move to where the grass might be perceptively greener, to quote the old cliché. Ease of travel, a more globalised job market and easy accessibility to media of all types has shrunk the world from the ‘big place’ it once was. This has also turned the emigration process from what used to be a very daunting undertaking into one that is relatively less so. But therein too lie some of the risks. Increased interest in immigration has brought with it a corresponding increase in the number of immigration scams. The internet and social media sites are awash with immigration ‘advice’ and offers of ‘immigration support’. Tread carefully! If you are looking to move to another country, be sure to use a reputable immigration agent. Always double-check that you are getting the correct information and advice, otherwise you could be wasting your time and money. Ask yourself: Is my New Zealand immigration adviser legally authorised to give me advice When you choose an immigration company / agent to help you, make very sure they are legally authorised to give you immigration advice. Countries have very clear and definite rules and requirements governing immigration. The people that they legally authorise to provide immigration support and advice know these rules and requirements like the back of their hand. In most cases they will be able to tell you whether you meet the requirements or not right from the start. Some immigration companies may say they have an authorised agent working for them, but that does not necessarily mean that person will handle your case. Their ‘registered person’ might merely sign off your file before submitting it to the relevant government agency. In all likely hood they will never assess your application or even communicate with you. Then, months later, you may actually find out that you never even qualified for immigration to begin with. We’ll say it again – when anyone ‘assesses’ or ‘qualifies’ you for immigration, or you have to pay for their advice, you must make sure they are actually authorised to do so. Check they are not simply a sales person for the immigration company. New Zealand has rules about giving immigration advice Under the New Zealand Immigration Advisers Licensing Act 2007, it is an offence to provide immigration advice without being licensed or exempt. If your immigration adviser is not licensed when they should be, Immigration New Zealand will return your application. So, if you are looking to immigrate to New Zealand, then, by law, any person that gives you immigration advice about New Zealand must be licensed by the Immigration Advisers Authority, unless they have been given an exemption. This includes people giving New Zealand immigration advice from anywhere else in the world. You can find out if the person you have contacted is licensed at the Immigration Advisers Authority website.   You can also see if they have an exemption. Lawyers for New Zealand immigration advice Lawyers provide immigration advice and are exempt from licensing under the Immigration Advisers Licensing Act 2007. For more information and to view the register of immigration lawyers, go to the New Zealand Law Society website www.lawsociety.org.nz. All countries have similar registered bodies to which authorised immigration advisers must belong. Anyone who is officially authorised to provide immigration advice will be proud of the fact and will display the logo of their registered body on their website. If you do not see such a membership logo on your immigration agent’s website, it may be a clue they are not legally authorised by the relevant country to represent your immigration application. When getting immigration advice on the phone If you talk to someone on the phone who says you qualify for immigration, ask them if they are a sales person or if they are officially authorised to provide immigration advice. Tell the person you only want to speak with the authorised representative directly. If they say they are an authorised representative, do the following: Ask them for their registration number: Hang up the call Go to the official website of the organisation they say they are registered with, and verify their registration Then call them back Ask the ‘authorised representative’ for their direct phone number and e-mail address. If they are willing to communicate directly with you, there is a better chance they are legitimate. Some immigration companies might try scare tactics on you to get you to sign up on the phone immediately and to pay your ‘fees’ by credit card. Don’t be intimidated. The immigration process seldom moves as ‘urgently’ as some companies might like you to believe. Make sure you research the right immigration company When you do research on immigration companies, be sure you are looking at the right company’s website. Many scam companies copy other companies’ websites in the hope of scamming clients who think they are in contact with the legitimate company. The company name could vary by just one letter, and look and sound exactly the same. Be watchful. This is another reason why it’s important to always check a company’s website for the presence of an authorising body’s logo and to verify the agent’s name on the list of authorised representatives on the official government website. Don’t be fooled by fake job offers While daunting, emigrating can also be very exciting – even more so when you have a confirmed job and income to go to. Life is so much easier in a new country when you have a job sorted. Scammers know this too. As a result, the increased interest in emigration has also seen an increase in the number of fake recruiters and job offers on the internet. These advertisements usually offer what appears to be a legitimate job in another country. Once you apply you are contacted and either told you have to pay a fee “to get your contract”. No legitimate employment process will ever work like this! In addition to this, and depending on the country, an employer will first have to get permission from the government to be able to apply for your work permit. Even if an employer wants to give you the job, there is no guarantee the government will authorise them to hire you. Tell-tale signs a job offer is a scam The person who contacts you to offer you the job uses a non-business e-mail account, such as Gmail or Yahoo or Hotmail. It is highly unlikely a company’s HR department will use such an email address to contact people. If you do receive a job offer and are not sure if it’s real or fake, go to the company’s official website, get their contact details and contact them directly. They claim the job is ‘guaranteed’. No job offer, or any immigration document for that matter, can ever be guaranteed, as the entire process is at the discretion of the government of the respective country. You are required to pay the fees for your work permit or visas up front to the person / company offering you the job. No government will ever get you to pay money for these sorts of immigration documents to an individual or private company’s bank account. You are asked to pay money in connection with anything for a job. Remember, a job usually pays you! If it’s the other way around, it’s probably a scam. New Zealand has a range of immigration visa options depending on whether you want to work here, study, invest or simply enjoy a visit New Zealand has developed its immigration policies to support the country’s economic growth. If you’re looking to make New Zealand your permanent home and have capital and / or skills and experience that are in short supply locally, then moving here could be the life changer you’ve always dreamed of. Contact our lawyers in Auckland at Quay if you need urgent legal advice. We will be happy to help you and guide you through your friendly Auckland immigration lawyers and consultants. [button size='large' style='' text='Contact Your Immigration Lawyer in Auckland' icon='' icon_color='' link='https://lawyerinauckland.co.nz/contact-a-solicitor/' target='_self' color='#ffffff' hover_color='#ffffff' border_color='' hover_border_color='' background_color='#770000' hover_background_color='#770000' font_style='' font_weight='400' text_align='center' margin='20'] Excerpt: All over the world, people are on the move, and more so than ever before. Nowadays, it’s relatively easy to get to know about other places and look at making a move to where the grass might be perceptively greener, to quote the old cliché. ### The Impact of the New Investment Property Rules on your Holiday Home Recent Reserve Bank developments affect owners of bach and holiday homes. The Reserve Bank is aiming to crack down on the property investment sector. Bach and holiday home owners are likely to fall within the new investment property definition. The definition of an investment property has been a grey area for many years. The central bank has been in consultation to define the term since September 2013. In May this year a decision was announced. The new class of investment property is any property which is not owner-occupied. The central bank also intends to proceed with plans to force banks to insist on more capital against investor loans. The bank insists this will then push up interest rates. The new capital rulings will be in addition to the Auckland-specific restrictions which were also announced in May. The latter will force investors to have a deposit of at least 30 per cent. The majority of Reserve Bank submissions supported the new broader investor loan definition. It was felt by the banks that the proposed simplicity would make the rulings easier to implement. However they believed the costs of systems change and staff training could be in excess of $5 million. But what about baches or holiday home owners? Auckland lawyer Ian Mellett explains that if you have a bach or holiday home, you would of course be defined as an investor. The central bank responded to this by saying that some allowance could be made for second properties. With a proviso that only a small rental income is derived. The bank said an example of this would be a bach that might be rented out for a few weeks of the year. No further details were provided. Documents revealed that banks lobbied hard to try to change the Reserve Bank's decision. The majority of stakeholders did not support the idea of creating a separate asset class. They disagreed with the rationale that an investment loan is a greater risk than a normal mortgage. Larger banks voiced the greatest disapproval. They argue that the examples cited by the Reserve Bank are not local, and therefore not relevant. They also suggested that the banking industries in Australia and New Zealand are more conservative than the British and Irish models used. It's also suggested that further intervention will reduce the amount of rental properties available. In an already starved rental market this could pose substantial problems. The central bank believe, however, that the effect of the new classification would be limited on the rental market. The new classification rules come into force from October 1. This coincides with the 30 per cent deposit required by Auckland property investors. A period of 12 months has been granted to banks to reclassify their existing loans. The system will be reviewed after 1 year. Are you concerned about your classification status? Would like more information on the impact of these rulings? Contact Auckland Lawyer Ian Mellett at Quay Law for more information. Excerpt: The Reserve Bank is aiming to crack down on the property investment sector. Bach and holiday home owners are likely to fall within the new investment property definition. ### Conveyancing in Auckland - do you know what you need to? These days, we’re bombarded with news about the property market. [blockquote text="The housing market is almost too hot to trot" text_color="#000000" width="" line_height="undefined" background_color="" border_color="" show_quote_icon="yes" quote_icon_color="#770000"] and [blockquote text="If you snooze you lose" text_color="#000000" width="" line_height="undefined" background_color="" border_color="" show_quote_icon="yes" quote_icon_color="#770000"] Then there's [blockquote text="House prices in Auckland are rising by as much as $1000 per day" text_color="#000000" width="" line_height="undefined" background_color="" border_color="" show_quote_icon="yes" quote_icon_color="#770000"] and [blockquote text="The best time to buy property was yesterday" text_color="#000000" width="" line_height="undefined" background_color="" border_color="" show_quote_icon="yes" quote_icon_color="#770000"] And not forgetting [blockquote text="It’s a bubble about to burst" text_color="#000000" width="" line_height="undefined" background_color="" border_color="" show_quote_icon="yes" quote_icon_color="#770000"] It’s enough to make anyone’s head spin, and that’s just the beginning. For most of us, buying or selling a house is one of the largest transactions we will ever undertake. For many it may even be a ‘life-altering’ transaction.  Of course, while it’s an exciting experience, it's also known for being a stressful time. We face a myriad of questions: What’s the best neighbourhood for my kids? How much will the bank lend me? How repayments are realistic for me to afford? The stresses and frustrations of competing for a property in a hotly contested market take their toll.  Sleepless nights become the norm when managing the many practical and legal considerations that come with buying or selling a house. It’s crucial you have the services of someone you can trust who will prepare and execute all legal documents in the correct way.  A capable conveyancer will deal with the mountains of red tape that come with buying and selling of property.  They'll attend to the detail, and make process as smooth as possible. But first, what is conveyancing? But first, what is conveyancing? Conveyancing is the term used to describe all the legal legwork required to transfer ownership or legal title of real estate, from one person or entity to another.  Conveyancers and property lawyers are specialists in property law. They have the training and skills needed to deal with the legal intricacies of buying and selling a property. Conveyancing covers the sale of all types of property, such as retail space, office space, industrial units, retirement villages, residential homes and rural properties. There are also varying degrees of complexity involved in conveyancing. For example, buying an apartment is different to buying a cross-lease section, and buying a unit title dwelling is different to buying a residential home.  Your purchasing legal options can vary too, based on your unique circumstances. For example, do you need a trust or should you buy a property using a company as a legal vehicle or entity.  The options and possibilities are almost endless. An Agreement for Sale & Purchase is a legal binding document and (in general) you cannot change your mind after signing a contract unless there are special conditions.  It’s important to get the right conveyancing advice from the start and to always get legal advice before signing any documentation. Here’s a brief overview of some of the legal actions that your conveyancer will undertake on your behalf during the sale or purchase process. They will: Draft an Agreement for Sale & Purchase for you for a private property transaction. If you are using a real estate agent, a conveyancer will check the contract for any issues and advise you on what conditions to include before you sign it. Do the necessary Title searches. Ensure any conditions are met within the time allowed by the Agreement. Order Land Information Memorandum (LIM report) from the relevant Council and a building report, if required. Apportion rates, and rental/body corporate levies where applicable. Prepare the settlement statement and organise settlement to take place on the agreed settlement date. Confirm insurance is arranged for the property from settlement or possession date. Complete the electronic transfer of the property ownership to the new owner. For the full range of legal options and contract conditions available to you when buying or selling property, contact our Auckland lawyers. Our Quay Law conveyancing team is able to assist you with your next property transaction whether it be a commercial/residential property sale or purchase. Contact the Auckland law firm, Quay Law for more information on property transfer and conveyancing. Excerpt: These days, we’re bombarded with news about the property market. ### Conveyancing Auckland lawyers share stuff.co.nz article Source stuff.co.nz article of April 15 2015 and shared with you by the Conveyancing Auckland lawyers at Quay Law. 'The brakes are off': Auckland's average asking price hits $716k The average asking price for an Auckland home reached a record $716,050 in March according to Trade Me's Property Price index. While the national average asking price grew by around $40,000 over the last year, Auckland's had doubled that rate with a $85,300 rise. This price puts a 20 per cent deposit at $143,210. The rise was good news for current homeowners, but worrying for those still renting, Trade Me's head of Property Nigel Jeffries said. "This is huge tax free capital appreciation for home owners," he said. "For renters who have aspirations of owning, it represents a real difficulty," he said. Deposits were becoming harder and harder to reach, and the level of competition on many properties was very high. "It's very challenging to get a win." Coincidentally, the new average asking price matches the selling price of the winning Our First Home house almost perfectly. The Schreuder family sold their Titirangi property for $721,000 on Monday, taking home $190,400 in profit. Many young Auckland couples were choosing to buy outside of Auckland in order to get on the property ladder, but continue renting in the city, Jeffries said. "At some point in the future they'll move out to the house they own, or sell it for a deposit," he said. Every region other than the West Coast and Otago showed a rise in Trade Me's data over the last year, with the national average asking price reaching $514,350. Still, the growth was drastically uneven. Over the past five years the national average had grown 27 per cent while the Auckland average had grown 46 per cent. These rises were a result of a healthier economy and demand from domestic and international migrations, said Jeffries. "The brakes are well and truly off," he said.   SOUTH OF THE BOMBAY HILLS Six regions showed double-digit increases in the average asking price over the last year: Gisborne, Hawke's Bay, Manawatu/Whanganui, Southland and Auckland. Housing prices in Canterbury have begun to ease off. They reached a peak in December 2014 of $457,100, dropping to $450,600 in March. New records were set for asking prices in Manawatu/Whanganui, Wellington, and Auckland. Wellington's average asking price reached $466,700, rising 2.9 per cent since March last year. Only the West Coast and Otago showed a year-on-year drop. Otago's average asking price dropped 1.1 per cent to $394,250, while the West Coast's dropped 4.5 per cent to just $269,400. APARTMENTS ON THE RISE Apartments remained more expensive in Wellington than Auckland. The average asking price for an apartment across the country grew to $442,900 over the last year, up 16.8 per cent. Auckland kept apace with a 19.2 per cent rise to $441,100, but Wellington stayed ahead with a 19.4 per cent rise to $453,250. Christchurch's apartment prices grew the fastest at 21.4 per cent, reaching $414,000. Jeffries said Kiwis were changing their expectations about property ownership. "The quarter acre section close to town is now out of many people's means." Source: stuff.co.nz  For more property news and conveyancing updates from Quay Law. Excerpt: Source stuff.co.nz article of April 15 2015 and shared with you by the Conveyancing Auckland lawyers at Quay Law. ### Property Deposit... What does Deposit really mean? The term deposit is used by different parties within a conveyancing transaction and each party whether they are an   agents, bank or KiwiSaver representative, can have a differing meaning on the word property deposit. This legal hint, share by Quay Law,  focuses on clarifying any confusion that may exist whether you are a first home buyer or moving to your next family home Deposits payable to Real Estate Agents This property deposit is stipulated on the Agreement for Sale and Purchase of Real Estate and is a payment made by the purchaser of a property to the real estate agent's trust account or solicitor's trust account (in private sales). This deposit is in effect a payment of a portion of the purchase price of the property and is payable on the signing of the sale and purchase agreement or upon the Sale and Purchase agreement becoming unconditional.  Purchasers cannot use their KiwiSaver withdrawals towards this deposit payment. Deposits required by your bank as part of your mortgage approval. Your banks or mortgage broker also refer to a deposit needed by purchasers, but this deposit has nothing to do with the deposit payable to the real estate agents on signing the sale and purchase agreement. This deposit is the purchaser's contribution towards the property purchase which is the difference between the price of the property and the amount of the loan. KiwiSaver deposit subsidy and contribution withdrawals. KiwiSavers who meet certain criteria are able to utilise their individual and employer contributions to go towards the purchase of a property. This offer is commonly termed a deposit subsidy and is usually advanced to the conveyancing solicitor on the day of settlement.   For more information in relation to your KiwiSaver deposit subsidy, please contact one of our conveyancing lawyers. Contact our Auckland Lawyers at Quay Law to find out more about property deposits, conveyancing transactions and any  related queries. Excerpt: The term deposit is used by different parties within a conveyancing transaction and each party whether they are an agents, bank or KiwiSaver representative, can have a differing meaning on the word property deposit. ### Advantages of Appointing an Auckland Property Lawyer for Conveyancing Are you buying or selling a property? If yes, then you will need conveyancing services for the legal process of transferring the title of the property from the seller to the buyer and for the transfer of funds from the buyer to seller. In general terms, conveyancing is the term used to describe all the legal legwork required to transfer ownership or legal title of real estate, from one person or entity to another.  Conveyancers and property lawyers are specialists in property law. They have the training and skills needed to deal with the legal intricacies of buying and selling a property. Conveyancing covers the sale of all types of property, such as retail space, office space, industrial units, retirement villages, residential homes and rural properties. What are the advantages of appointing an Auckland property lawyer for your Conveyancing transaction? Conveyancers attend to matters of financing and refinance.  The preparation of the sales and purchase agreements between the two parties along with drafting any special clauses that you may want to add to the contract. Here are some of the many advantages of appointing an Auckland property lawyer for your conveyancing transaction. Property lawyers focus primarily on conveyancing matters and property law. As a client, you get a wealth of experience, industry knowledge and sound advice from your property lawyer. Our Quay Law conveyancing team is able to assist you with your next property transaction whether it be a commercial / residential property sale or purchase. Contact the Auckland law firm, Quay Law for more information on property transfer and conveyancing. Read More - Conveyancing - Do you know what you need to? Excerpt: Are you buying or selling a property? If yes, then you will need conveyancing services for the legal process of ### An Enduring Power of Attorney - How important is this legal document? What exactly is an Enduring Power of Attorney? Enduring Powers of Attorney are a simple way of ensuring that if for any reason you become incapacitated, the person you have appointed as your attorney can attend to these matters for you. They are powerful documents however in that they continue to have effect in the event of you becoming incapacitated mentally, so you should exercise care in your appointment. There are two types of attorney, namely Property (in which one or more people can act as your attorney) and Personal Care and Welfare (in which you can only have one attorney). The Personal Care and Welfare attorney only comes into effect when you become mentally incapacitated, whereas the Property attorney can have effect immediately if you wish. To discuss your Enduring Power of Attorney contact Auckland lawyer Ian Mellett.  Ian Mellett BComm LLB H Dip Tax is a Barrister and Solicitor at Auckland Law firm, Quay Law. 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. Ph (09) – 523 0478.  We are located in a convient suburban location with free street parking.Remuera Lawyers. Excerpt: Enduring Powers of Attorney are a simple way of ensuring that if for any reason you become incapacitated, the person you have appointed as your attorney can attend to these matters for you. ### Grammar Rugby Football Club Annual Dinner | Proudly supported by Auckland law firm Quay law Auckland law firm Quay Law, a proud supporter of the local rugby community. The Annual Grammar Rugby Football Club Annual Dinner is scheduled for Saturday, 9 August 2014 at 7:30 PM A little bit of history. The original site of the Grammar Rugby Football Club was at Ayr Street in Parnell. In 1996 negotiations were held with the Auckland City Council to move the club base to Shore Road. At this time, the club amalgamated with Carlton, and became Grammar Carlton Rugby Football Club at a senior level. The junior sections remained separate, and in 1996 Grammar Junior Rugby Football Club was formed as a standalone entity affiliated with the Grammar Carlton parent club. Grammar Junior Rugby Football Club organises rugby for New Zealand children from pre-school up to Under 13 grade. All rugby teams are weight restricted which means children play against others of a similar weight.  The Rugby Football club relies on a part-time Operations Manager and the work of volunteers to ensure the success of each rugby season.  We are pleased to report that with over 330 playing members the club is thriving and the future is bright. We warmly welcome all newcomers to the Grammar Rugby community to share in our wonderful club culture. To find out more about this event or to find out about playing rugby for Grammar, contact Paloma Barreiro  at Grammar Juniors Rugby Club Auckland law firm Quay Law is proud to be supported with the development of young children in our local Auckland community. [button size='large' style='' text='Contact an Auckland Lawyer' icon='' icon_color='' link='https://lawyerinauckland.co.nz/contact-a-solicitor//' target='_self' color='#ffffff' hover_color='#ffffff' border_color='' hover_border_color='' background_color='#770000' hover_background_color='#770000' font_style='' font_weight='400' text_align='center' margin='20'] Grammar Rugby Football Club Annual Dinner Excerpt: The Annual Grammar Rugby Football Club Annual Dinner is scheduled for Saturday, 9 August 2014 at 7:30 PM ### Contracts come in many forms... | Legal Article by Auckland Law Firm - Quay Law Contracts What is a contract? If we consult the dictionary, a contract (noun) is a written or spoken agreement, especially one concerning employment, sales, or tenancy that is intended to be enforceable by law. For example, "he has just signed a contract keeping him with the club". Some words that may be synonyms are agreement, commitment, arrangement, settlement, undertaking, understanding, compact, covenant, pact or bond. However in a law firm, the contract falls into many of the services offered by our Auckland law firm. In order to highlight a few examples of a contract pleased see below. Conveyancing At Quay Law we are aware that the buying and selling of a home is one of the most significant financial transactions a person could make. Our conveyancing lawyers are able to assist you with the reviewing of your Sale and Purchase agreement, advice on further terms and conditions to be included in the contract and are able to extend their legal support to you throughout the purchasing or selling process. This form of property conveyancing contract may incorporate negotiating easements, reviewing the district plan, working with leasehold parties or a LIM if required. Please contact a conveyancer if you require any assistance. Directors and Shareholders Over the years, our Auckland solicitors have acted and act for many directors and shareholders. The type of support extended has included shareholders agreements, negotiation and all matters in between. There are four main entities that are predominantly used to operate businesses in New Zealand, namely the sole proprietorship, partnership, limited liability company and trading trust. LINK for Published Legal Article Enduring Powers of Attorney An Enduring Power of Attorney is a simple way of ensuring that if for any reason you become incapacitated, or are unable to manage your affairs, the person you have appointed as your attorney can attend to these matters for you. They are powerful documents however in that they continue to have effect in the event of you becoming incapacitated mentally, so you should exercise care in your appointment. There are two types of attorney, Property (in which two people can act as an attorney) and Personal Care and Welfare (in which you can only have one attorney). The Welfare attorney only comes into effect when you become mentally incapacitated, whereas the Property attorney can have effect immediately if you wish. Relationship Property Agreements Our Auckland lawyers are able to assist with all Relationship Property matters and Contracting Out Agreements. We can brief out custody and access issues. Ian Mellett To contact our approachable Lawyers in Auckland | Quay Law. We offer litigation, property, estates, employment, Conveyancing, immigration and additional General Legal Service.  Please visit our Quay Law website for more information.. Excerpt: f we consult the dictionary, a contract (noun) is a written or spoken agreement, especially one concerning employment, sales, or tenancy that is intended to be enforceable by law. ### Enduring Powers of Attorney and Wills as shared by our Auckland law firm team Enduring Powers of Attorney and Wills How long does a Will last? Your Will survives last until you die unless you specifically revoke it (cancel it) by the making of a new Will. A Will continues even after a divorce. So unless you want your former spouse to inherit from your estate then you should make a new Will. What is an Enduring Powers of Attorney? An Enduring Powers of Attorney is a simple way of ensuring that if for any reason you become incapacitated, or are unable to manage your affairs, the person you have appointed as your attorney can attend to these matters for you. They are powerful documents however in that they continue to have effect in the event of you becoming incapacitated mentally, so you should exercise care in your appointment. Are there different types of Enduring Powers of Attorney? There are two types of attorney, Property (in which two people can act as an attorney) and Personal Care and Welfare (in which you can only have one attorney). The Welfare attorney only comes into effect when you become mentally incapacitated, whereas the Property attorney can have effect immediately if you wish. Who Needs To Make Enduring Powers of Attorney? Everyone should have an Enduring Powers of Attorney (EPAs). In particular, people diagnosed with the early onset of dementia, Alzheimer’s disease or other conditions which will cause mental competence to deteriorate.  In addiiton, those going into hospital for major surgery, travelling overseas or in any situation of risk should seriously consider completing EPAs. When Does An EPA Cease To Have Effect? On the donor's death; If revoked by a competent donor; When an attorney gives notice to the donor while the donor is still mentally competent or after loss of competence to the Family Court advising that the attorney is no longer willing to act; Where more than one Property Attorney is appointed to act jointly and one of them dies, ceases to act or becomes incapable of acting; When the attorney dies, becomes bankrupt or mentally incapable; When the Family Court intervenes and exercises its powers under the PPPR Act to revoke an attorney’s appointment or to appoint someone else as Court appointed Do I require Independent legal advice when signing an Enduring Powers of Attorney? Under the changes to the Act, there are new requirements in relation to certification, independent legal advice and a new prescribed form. The witnessing requirements for all new EPAs for both property and personal care and welfare are strengthened so that the donor's signature must be witnessed by a lawyer or authorised officer of a trustee corporation or legal executive engaged independently of the attorney.  The signature of an attorney must be witnessed by a person other than the donor or the donor's witness.  Our Auckland lawyers are able to guide you in respect to the requirement of the law.   To discuss your Enduring Power of Attorney contact Auckland lawyer Ian Mellett.  Ian Mellett BComm LLB H Dip Tax is a Barrister and Solicitor at Auckland Law firm, Quay Law. 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. Ph (09) - 523 0478.  We are located in a convient suburban location with free street parking. Remuera Lawyers. Excerpt: Your Will survives last until you die unless you specifically revoke it (cancel it) by the making of a new Will. A Will continues even after a divorce. So unless you want your former spouse to inherit from your estate then you should make a new Will. ### Notary Public Services available at Quay Law Notary Public Auckland Quay Law is able to provide Notary Public Services. A notary public (sometimes called a notary or a public notary) in New Zealand is a lawyer or legal practitioner authorised by the Archbishop of Canterbury in England to officially witness signatures on legal documents, collect sworn statements, administer oaths and certify the authenticity of legal documents e.g. powers of attorney, court documents, property conveyancing papers and commercial documents, usually for use overseas. A notary public uses an embossing tool (seal) to verify their at the time the documents were signed.  Jock Irvine is able to provide Notary Public Services in Auckland. Affidavits for use in foreign courts A Notary Public may also have authority according to the law of other countries, to swear affidavits for use in foreign courts. Generally, a document executed or sworn before a Notary Public will be recognised by a Commonwealth court, without further proof. Other countries may well require the authorisation of the notary to be authenticated by the Consulate of that Country, or by the authentications unit of the Department of Internal Affairs or even also the Ministry of Foreign Affairs. Please contact Notary Public, Jock Irvine on Mobile: 021 770 706 in order to arrange an appointment.  Jock Irvine is able to meet with you at our Auckland law firm, Quay Law. www.notarypublicauckland.co.nz Excerpt: A notary public uses an embossing tool (seal) to verify their at the time the documents were signed. Jock Irvine is able to provide Notary Public Services in Auckland. ### Property Ownership in New Zealand - Recent Statistics Census 2013: Property ownership keeps falling Source | NZ Herald -18 March 2014 Houses in Hobsonville Point, Auckland. Photo / S Ivey The number of homeowners in New Zealand continues to fall, with fewer than half of all Kiwis owning their own property, new Census figures show. In 2013, 49.8 per cent of people aged 15 years and over owned or partly owned the home they lived in, compared with 53.2 per cent in 2006, according to census results released by Statistics New Zealand today. "The decline in home ownership occurred across all age groups, from those in their 20s to those in their 70s, with the largest falls for those in their 30s and 40s," said Gareth Meech, Census 2013 general manager. "In 2013, 43.0 per cent of people aged 30-39 years owned or partly owned their home, down from 54.6 per cent in 2001." 2013 Census Quickstats about housing, which contains detailed information about New Zealand's housing stock, also reveals trends in the number, type, and size of the dwellings we are living in. "The housing information released today gives us valuable insight into how New Zealanders are living, and how that's changing over time," Mr Meech said. Joined dwellings, like flats and apartments, are becoming more common in our main centres, now accounting for 37.0 per cent of occupied private dwellings in Wellington city. And, while the standard Kiwi three-bedroom home remains most common, the last 12 years had seen steady growth in the number of four- and five-bedroom dwellings. It also found that more New Zealanders are using electricity to heat their homes and fewer are using gas, wood, or coal. In 2013, electricity was used for heating in 79.2 per cent of occupied private dwellings, up from 74.8 per cent in 2006, and 72.0 per cent in 2001." Other key Census 2013 points * Average annual growth between 2006 and 2013 for occupied dwellings was 0.9 per cent - lower than in any other period between censuses from 1981 onwards. * One in 10 dwellings were unoccupied on Census night, with the number of unoccupied dwellings increasing in every region since 2006, although there was little change in the Auckland region. * Use of gas, wood, and coal as heating fuels declined. Bottled gas decreased the most, used in 15.4 per cent of occupied private dwellings in 2013, compared with 27.7 per cent in 2006. Excerpt: The number of homeowners in New Zealand continues to fall, with fewer than half of all Kiwis owning their own property, new Census figures show. ### Mortgage refinance | To Fix or to Float? When considering mortgage re-finance the ultimate question is to fix or to float?  Please find an article below, sourced for your by the conveyancers and Auckland solicitors at Quay Law.  This article appeared in the NZ Herald on 12 March 2014. Mortgage refinance The cash rate is likely to rise, so experts say assess what you can afford and lock it in. Some people were weighing up the cost of getting a valuation done on their house to try to see if they could improve their equity position and get a better rate. Photo / Chris Gorman Mortgage brokers are urging borrowers to fix the interest rates on their loans and say it's not too late despite an expected increase in the official cash rate tomorrow. The Reserve Bank of New Zealand is widely expected to increase the rate from 2.5 per cent to 2.75 per cent after years of being on hold. Floating interest rates and short-term rates of less than 18 months are expected to rise with the cash rate, pushing the standard floating rate from around 5.75 per cent to 6 per cent. Mortgage broker Bruce Patten said he had seen a rush of people wanting to fix loans in the past three weeks. "Every man and his dog is scrambling to either fix rates or break their existing rates." Mr Patten said the biggest factor people should take into account when deciding whether to fix or float their mortgage was affordability. "People need to understand what rate they can afford. If they can afford to pay 6 per cent now lock it in for three years." Mr Patten said most people favoured fixing their mortgage for two years but his view was that it was better to go for three years to give a bit more "breathing room". The official cash rate is expected to increase by a full percentage point to 3.5 per cent by the end of the year which could send floating rates to around 7 per cent. Broker Karen Tatterson, a board member on the Professional Advisers Association, said it was not too late to fix now. "People still have a chance to fix on Thursday or Friday." Ms Tatterson said most banks would give a 24-hour timeframe for a customer to go with a rate when it was offered. She said the best rates to fix on were two and three-year rates. Banks were offering around 5.95 per cent for two years fixed and 6.2-6.35 per cent to fix for three years. Ms Tatterson said it was still possible to negotiate interest rates with banks but those with a deposit or equity of less than 20 per cent had little chance of getting a better rate. Some people were weighing up the cost of getting a valuation done on their house to try to see if they could improve their equity position and get a better rate. But she said fixing was not right for everyone. Those who were expecting to move house soon or expecting a lump sum payment could be better off floating or having a portion on floating. nzherald.co.nz  Contact Quay Law. [button size='large' style='' text='For Mortgage Refinance assistance' icon='' icon_color='' link='https://lawyerinauckland.co.nz/contact-a-solicitor/' target='_self' color='#ffffff' hover_color='#ffffff' border_color='' hover_border_color='' background_color='#770000' hover_background_color='#770000' font_style='' font_weight='400' text_align='center' margin='20'] Excerpt: When considering mortgage re-finance the ultimate question is to fix or to float? Please find an article below, sourced for your by the conveyancers and Auckland solicitors at Quay Law. ### Conveyancing | What is happening in the NZ property market? This article sourced from Stuff. Co.nz shares a viewpoint of current property market trends. Our Quay Law conveyancing team are able to assist you with your next property transaction whether it be a commercial / residential property sale or purchase. After years in which first home buyers have been forced to tremble through nerve-shredding auctions, estate agents are finally returning to the tried-and-true sale technique of posting asking prices on hoardings. In November last year, Barfoot and Thompson had 1,044 houses listed at auction with 471 selling under the hammer. In February, 656 went to auction and 372 sold under the hammer. Managing director Peter Thompson said he preferred auctions, but he had noticed a small drop-off in the number listed. There was certainly a levelling out in the market and it would continue as new builds from consents issued last year became available. "In previous years, we had only 3,000 to 5,000 consents. "Last year there were 11,000 building consents approved so more stock will be on the market this year. What was a sellers' market will slowly swing around to a neutral market." Auckland real estate agent Anne Duncan said many buyers preferred to see a list price to get an idea of the "goalposts". "I think last year buyers got tired of auctions, to be honest," she said. Loan-to-value (LVR) lending restrictions also had an effect. "Preferring a list price is especially true for first home buyers and the LVR. "They don't want to be told they can buy a property for $500,000 and see it sell for over $600,000." Last year, the success rate for auctions from Duncan's Mt Albert agency was 94 per cent. "The other night we had six auctions and we only sold three, so 50 per cent - but they were bloody good auctions." Duncan said character homes in the area were still selling well at auction because they were in high demand. Other houses which would previously go at auction hadn't - but they had success with a list price. Ponsonby sale — but not under the hammer. Josh Borthwick and Ush de la Croix's classic 1920s villa on Sackville St in popular Ponsonby was always going to sell - just not under the hammer. The couple were shocked to have no bids on their family home last month. "Our expectation going into it was it was going to go super well," Borthwick said. Agent Antonia Baker from The Property Market felt the January auction was too early in the year so she and the couple came up with a list price, based on what other similar properties had sold for and the property went unconditional on Friday night. To contact a property lawyer for conveyancing assistance in Auckland. Excerpt: This article sourced from Stuff. Co.nz shares a viewpoint of current property market trends. ### Setting up a family trust? Setting up a family trust? A family trust is a legal way to hold and protect your assets for the future. The trust can safeguard all, or a portion of, your assets because you no longer own them yourself – the trust does.  Ian Mellett, Auckland lawyer at Quay Law, is able to provide you with a detailed understanding of what is involved  with the setting up of a family trust and the advantages / disadvantages of utilising a family trust for your particular circumstances.  Please contact Ian Mellett to discuss further.  He will also discuss the importance of the trust deed and trust administration. The importance of specialist legal advice when setting up a trust? Trust law is a complex  and continually changing area of New Zealand law. If you are considering establishing a trust, it is important to seek advice from a specialist trust lawyer to ensure your asset structuring and any trust you set up dives you the best possible protection. Contact Quay Law Setting up a family trust blog news has been published on www.aucklandlawfirm.co.nz Excerpt: The trust can safeguard all, or a portion of, your assets because you no longer own them yourself – the trust does. ### Immigration, returning New Zealanders and house prices This article was shared with you by both our conveyancing and immigration lawyers at Auckland law firm, Quay Law. If you are searching for practical legal advice at affordable fees, please contact our lawyers. Returning Kiwis set to turn heat on house prices Source Fairfax 31/01/2014 Hordes of Australian-based New Zealanders returning home this year will put further demand on an already hot property market, economists are predicting. ASB economist Daniel Smith said yesterday's net migration figure of 22,000 for the 2013 year was fuelled by "a continued surge in the number of New Zealanders returning from Australia". That rolling annual figure was at levels not seen since December 1990, he said. Statistics NZ figures showed a seasonally adjusted net gain of 2800 migrants for the month of December 2013, a stable trend since September 2013, after an increase from zero in December 2012. Smith said Auckland appeared to be taking in the largest share of net migration. Last year Auckland gained a net 10,928 migrants, while Christchurch migration patterns appear to have stabilised over recent months, gaining about 400 people a month in the past year. Smith said the pattern of migrants concentrated in two major cities would put further pressure on house prices. Advertisement "House building in the region should accelerate over 2014, but demand for housing, combined with low levels of new listings, will maintain upwards pressure on house prices," he said. Auckland Council said annual consents in its area surpassed 6000 for the first time since 2008. Statistics NZ figures showed there were still more New Zealanders leaving for Australia than arriving from Australia with a net loss of 19,600 migrants across the Tasman last year. That is still well down from a 38,800 net loss to Australia in 2012. Net gains were recorded from most other countries, led by Britain and China, with inflows of 5800 and 5700 people, respectively. International visitor arrivals hit a monthly record for December of 381,000 to cap off a yearly record for 2013. Excerpt: This article was shared with you by both our conveyancing and immigration lawyers at Auckland law firm, Quay Law. If you are searching for practical legal advice at affordable fees, ### Auckland house prices outstrip Melbourne | Conveyancing News Our Auckland conveyancing team share the following news article. For any conveyancing enquiry please contact out conveyancers. Source Fairfax NZ : 30 January 2014 Auckland house prices have outstripped Melbourne's for the first time and reached the same level as Sydney's only six months ago. New figures from financial services provider UBS released by Labour show that at the end of the December quarter, average Auckland house prices were AUD$648,176, compared to Melbourne at AUD$634,890. The figures also showed Auckland house prices were only 11 per cent lower than those in Sydney and at the same level as Sydney house prices were six months ago. Labour's housing spokesman Phil Twyford claimed house prices were creating "a generation of renters". "Aucklanders know house prices are out of control. This proves it beyond doubt. Surely this will prompt Nick Smith to take some action on house prices," he said. "Owning a house is now out of reach for tens of thousands of Kiwis and loan to value ratios are making it even harder to save for a mortgage. With interest rates set to rise soon, it's going to be even more difficult." Housing Minister Nick Smith said the prices had been affected by the change in the exchange rate "but even if you include the exchange rate, overall average house prices in Australia are higher than they are in New Zealand". "The broader picture of what's going on and that is the New Zealand economy is going very well, the Australian economy is having its challenges, that's changing the exchange rate and that's having an influence on the exchange-rate-adjusted house prices on both sides of the Tasman." House prices were too high compared to income in New Zealand and the Government was working to address this through measures such as the housing accords to free up more land. "It is going to take time and hard yards to improve that." He pointed to new statistics released today which showed 26 per cent more houses were built last year, 21,300, compared with 2012. The Housing Accords were further speeding this up, he said. "Housing affordability remains a very high priority and there will be new steps and new initiatives taken this year to support them." It was too early to say what impact the LVR restrictions were having but officials were encouraged by the drop in the number of house sales in December and the time the houses took to sell, he said. These indicated the market was cooling but it was too early to say what impact this was having on price. Excerpt: Auckland house prices have outstripped Melbourne's for the first time and reached the same level as Sydney's only six months ago. ### A Benefit of a Family Trust | Protection of assets for future generations. Protection of inheritance - A benefit of a family trust. With the headlines in the local newspaper over the weekend (January 2014) reading as follows - "Desperate Investments -  Parents buy homes for pre-schoolers", it is prudent that these property investments are protected for the future generation.  Would you not want to ensure that your children and not their partners, keep their inheritances? Protection of core family assets for present and future generations has always been the traditional use of family trusts and should be the prime consideration when any trust is established. However when acquiring a proposed asset (such as a property) to be held by a trust, it is important that you make provision for the trust to purchase the property at the onset. You are able to do this by stipulating that the property is to be purchased by yourself “and / or nominee”. The benefit of a family trust is the invaluable asset protection tool and mechanism for preserving one’s weath.. To find our more about the benefits of a family trust, please contact an Auckland lawyer to arrange your detailed and personalised Quay Law trust presentation,  our trust lawyers shall cover any key questions (including pros and cons) you may have in relation to trusts and asset planning in more detail. Contact a trust lawyer   Ian Mellett BComm LLB H Dip Tax is a Barrister and Solicitor at  Quay Law in Remuera, Auckland. This Auckland law firm 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  New Zealand law. Excerpt: With the headlines in the local newspaper over the weekend (January 2014) reading as follows – “Desperate Investments – Parents buy homes for pre-schoolers“, it is prudent that these property investments are protected for the future generation. ### Conveyancing | Your property pre purchase inspection. Auckland Law Firm, Quay Law : Level 1, 427 Remuera Road, Remuera, Auckland You are about to purchase a property?  Conveyancing is the transfer of legal title of property from one person to another. Our conveyancing lawyers at Quay Law have shared the following article and information with you. A pre-purchase inspection of a New Zealand property before proceeding with a purchase is essential. This report should identify any items in the property that require attention.  It is however unlikely that a home will come though a property inspection with a clean report as maintenance on an existing home is always required.  However, a property report allows you to make an informed decision prior to proceeding with the purchase of the property. Quay Law recommends you use a certified inspector for your potential property purchase | conveyancing transaction. But beyond the standard aspects of a property inspection report, what else do you need to consider? Take a look at a recent article on stuff.co.nz  (13/01/2014). Houses used as P-labs could rival leaky homes as a problem, with a warrant of fitness system needed to reassure buyers, the Real Estate Institute says. Chief executive Helen O'Sullivan said meth labs that were being discovered were only "the tip of the iceberg". "With leaky homes you have a profile of the kind of house that can be affected, but meth labs can be anywhere. "Not surprisingly, meth cooks don't sign a register when they start up." She called for a "warrant of fitness" system for houses, which would include a test for meth at a cost of $100 to $500. Other issues, for example the state of wiring, could also be covered. The problem of meth-tainted homes had reached the point where a test for P was as important for buyers as a Lim report and a building code check. "To a degree this is the new ‘leaky homes' but in a way it's worse because it's harder to spot. "Perhaps one day we will see legislation that compels homeowners to declare whether their home is a meth home when they sell." Contaminated Site Solutions Limited director Victor Boyd said the issue of contaminated homes was becoming more prevalent. "More people are asking questions," he said. He had received calls from young couples who had bought their first home, not realising it was contaminated. Meth-contaminated homes could be "extremely dangerous" Mr Boyd said. "There are some nasty chemicals involved." P-lab exposure could cause shortness of breath, dizziness, irritation, or burns to the skin, eyes, nose and mouth. There was also a problem with property owners discovering, but failing to report clandestine labs, he said. "They'll say get out or I'll call the police. Then they'll try to clean it up themselves." In Foxton, tradesman Kris Harding has called on the community to help Derek and Ceridwen Hooper, who bought a retirement home only to find it was contaminated by meth. Housing Minister Nick Smith said the scale of the problem did not justify imposing an expensive test for meth contamination on property owners. "It is certainly an issue, but it would be misleading to suggest it's approaching the same level as the $20 billion leaky homes problem." Police estimated that about 50 homes each year were found to be contaminated by meth, Mr Smith said. He sympathised with the Hoopers. "They need to explore the legal avenues open to them." Mr Smith said had been contacted by landlords who faced clean-up bills of tens of thousands of dollars after tenants had set up P-labs. Many were left out of pocket, but in one case a landlord was able to claim $30,000 through the courts after a drug dealer's assets were seized under the Criminal Proceeds (Recovery) Act. Overall the best solution remained the targeting of P makers and dealers, Mr Smith said. - © Fairfax NZ News For further information on your residential or commercial conveyancing  transaction please talk to our lawyers first to obtain relevant legal advice. Contact your approachable Excerpt: You are about to purchase a property? Conveyancing is the transfer of legal title of property from one person to another. ### Financial or legal | Are you fit for 2014? As a new year dawns we are often in the process of redefining our goals for the new year. What are yours? Get your priorities straight whether financial or legal. That one coffee a day quickly adds up. Think about it, a coffee followed by a quick sandwich at lunch could easily add up to a $10 daily spend and yes a $3650 yearly amount of after tax income lost. Consider documenting your financial position, reviewing your bank statements and setting a budget for 2014. There are many advisors available who can assist you with this process. Have you reviewed your insurance in light of recent changes to homeowners insurance changes? In many cases the default sum insured is not enough to rebuild your home should disaster strike. But perhaps the start of 2014 is a perfect milestone to consider your current will. Is your will current? Or perhaps 2014 is a chance to reflect on whether a family trust would suit your circumstances? For more information regarding a will or a family trust feel free to contact Ian Mellett of Auckland law firm | Quay Law on 09 5232408. Excerpt: As a new year dawns we are often in the process of redefining our goals for the new year. What are yours? ### Merry Christmas from the lawyers at Quay Law Our  lawyers and support team would like to take this opportunity to thank you for all your goodwill and loyalty throughout the last year. May you all enjoy the Christmas holidays, take time to reflect on 2013 and refocus on the exciting year ahead.   We look forward catching up with you in 2014. As a parting thought for 2013 consider this:- “If you want to live a happy life, tie it to a goal, not to people or things.” – Albert Einstein. Happy Holidays from our Auckland law firm team.   CONVEYANCING  |  FAMILY TRUSTS  |  WILLS AND ESTATE ADMINISTRATIONS | LAWYERS Lawyers | Quay Law is a well established New Zealand Law firm with offices in Remuera, offering a range of specialized legal services and conveyancing. Excerpt: Our lawyers and support team would like to take this opportunity to thank you for all your goodwill and loyalty throughout the last year. ### Conveyancing - The Deposit Auckland Conveyancing - The property deposit and related questions that you may want your conveyancer to explain to you. When reviewing the Sale and Purchase agreement with potential property purchasers, the term “deposit” often creates some confusion. What does deposit really mean? Take a look at a previous blog post on our Auckland law firm blog where we examined this question in a little more detail Do you know what happens when your deposit is paid to the real estate agent? In the fine print of the Sales and Purchase Agreement the deposit is held by the real estate salesperson | agent for a  statutory 10 working days, once this period of time has lapsed the real estate agent is paid their commission from the deposit and the balance (deposit less commission) is then forward to the vendor’s  lawyer or conveyancing solicitor as it forms part of the property purchase funds. As the property purchaser  you should provide the authority to release these funds.  As part of this process your conveyancing lawyer should obtain an undertaking from the vendor’s conveyancer or lawyer that the vendors have sufficient funds to repay the existing discharge of mortgage together with rates. If you have any further questions regarding  conveyancing  and property law or your property deposit, please do not hesitate to contact one of our lawyers at Auckland law firm, Quay Law NZ to discuss you Auckland conveyancing transaction. Phone: (09) 523 2408 Email: quaylaw@quaylaw.co.nz Auckland Conveyancing law firm address: Level 1, 427 Remuera Road, Remuera, Auckland.   Excerpt: Auckland Conveyancing – The property deposit and related questions that you may want your conveyancer to explain to you. ### The RWC 1995 and Ian Mellett's reflections on the day as shared on ABC News 24. The 1995 Rugby World Cup was the third Rugby World Cup. It was hosted and won by South Africa, and was the first Rugby World Cup in which every match was held in one country.  Ian Mellett of the Springboks Supporters Club in New Zealand reflects on his memories of the RWC Final and Nelson Mandela.  When South Africa won the Rugby World Cup 1995 it was not only a victory for the Springboks but for the whole of the newly christened ‘Rainbow Nation’. On the day of the final President Nelson Mandela chose to wear the Springbok jersey, regarded by some as the ultimate symbol of the regime that imprisoned him. It was a gesture that inspired the whole nation to move on to a brighter future, inspired the South Africa team to victory over the All Blacks. Excerpt: The 1995 Rugby World Cup was the third Rugby World Cup. It was hosted and won by South Africa, and was the first Rugby World Cup in which every match was held in one country.   ### Rest in Peace Madiba - Nelson Mandela dies Source : TVNZ 6 December 2013.  Former South African President Nelson Mandela has died at the age of 95. The anti-apartheid hero was admitted to a Pretoria hospital on June 8 with a recurring lung infection. He was discharged on September 1 after nearly three months in hospital, but had been in intensive medical care at his Johannesburg home. Mr Mandela - or Madiba, as he was affectionately known - was revered among most of South Africa's 53 million people as the architect of the 1994 transition to multi-racial democracy after three centuries of white domination. However his fourth hospitalisation in six months had reinforced a realisation that the father of the post-apartheid "Rainbow Nation" would not be around for ever. On June 24 the government announced that Mr Mandela's health had deteriorated from "serious but stable" to "critical", causing a perceptible switch in the national mood, from prayers for his recovery to preparations for a fond farewell. In the last few days hundreds of people have offered notes, flowers and prayers for Nelson Mandela at a wall surrounding the Pretoria hospital. Well-wishers' messages, bouquets and stuffed animals piled up at the guarded boundary around the compound. A section of the beige brick wall was plastered with notes of appreciation for his lifetime of struggle and sacrifice - including 27 years spent in apartheid jails - that helped lead to the country's first all race election in 1994. School children, prayer groups, office workers together with comrades and supporters who followed Mandela in the anti-apartheid fight have trickled past the hospital day by day, passing a gauntlet of journalists and camera crews camped outside the main gate. Police shut off streets to vehicle traffic near the hospital in the centre of the capital. Earlier this week President Jacob Zuma cancelled a scheduled trip to neighbouring Mozambique after visiting Mr Mandela in hospital. And AFP reported that an elder in Mr Mandela's clan had confirmed he was on life support. President Zuma said doctors were doing their best to ensure the "recovery, well-being and comfort" of South Africa's first black president and he urged the people to keep Mr Mandela in their thoughts and prayers. The public's last glimpse of Mandela was a brief clip aired by state television in April during a visit to his home by Mr Zuma and other leaders from the ruling African National Congress. Excerpt: Former South African President Nelson Mandela has died at the age of 95. The anti-apartheid hero was admitted to a Pretoria hospital on June 8 with a recurring lung infection. ### Refinancing your home loan? Are you thinking of refinancing your existing home loan? Our experienced property lawyers at Auckland law firm Quay Law have the legal expertise to assist you during this process. Contact us at quaylaw@quaylaw.co.nz. Please find below a recent article as it appeared in stuff.co.nz on 26 November 2013. Signs pointing to January interest rate rise - ANZ The case is building for the Reserve Bank to lift official interest rates as soon as January, according to ANZ Bank economists. While that "might seem like blasphemy to some", the economy was going pretty well with signs of broadening of momentum across sectors and regions, ANZ said, with more strong economic figures due out this week. Overseas trade figures due out tomorrow are expected to show exports booming as farm production bounces back from last summer's drought, and high commodity prices. Building consent figures for October, due out on Friday, are expected to be stronger for the third month in a row. Most economists are expecting the first interest rate rise in March, but ANZ said the chance of an earlier rate move was rising, with the cash rate expected to move from 2.5 per cent now to 3.25 per cent by the end of 2014. New Zealand could lead the developed world as the first central bank to raise interest rates, but it would not want to get "too far out in front, for fear of sending the exchange rate to the moon", ANZ said. The New Zealand dollar remained "very high" at US82 cents yesterday. ANZ said it was getting close to calling a January move because of the strong economy, rising inflation and a governor who played with a "straight bat". "He [Graeme Wheeler] has not even blinked in response to the political maelstrom around the LVR [loan-to-value ratio] speed limits [on low deposit home loans]." Migration is booming, the labour market has turned and wages will follow up. Business and consumer confidence remains high, with recent ANZ surveys suggesting GDP growth could be as much as 5 per cent, although the bank's economists say that looked a stretch, given a still-wobbly global scene, high dollar and the sheer ability of the economy to grow so fast. ANZ said it was inevitable that the cash rate would need to move up if inflation was to be kept well-behaved.  - © Fairfax NZ News For mortgage or loan  refinancing please contact the experienced lawyers at Quay Law. Your home transfer specialists.   Excerpt: Are you thinking of refinancing your existing home loan? ### Why do you need to review your Will? [button size='large' style='' text='Contact Quay Law today' icon='' icon_color='' link='http://www.lawyerinauckland.co.nz/contacts.html' target='_self' color='#ffffff' hover_color='#ffffff' border_color='' hover_border_color='' background_color='#770000' hover_background_color='#770000' font_style='' font_weight='400' text_align='center' margin='20'] Does your current Will reflect your current situation?" Legal Tip: If you already have a Will, is it up-to-date? Does it reflect your current situation? Your financial or personal circumstances may have changed since you signed it. If you don't have a Will yet, or need to update a previous Will, you should get one drafted. A Will needs both an executor and a trustee. An executor obtains probate of your will from the court (when required) and the trustee carries out your wishes as set out in your Will when you die. Whilst it is good practice to review your Will on a regular basis it is important to definitely review your will whenever you have a big life change like the birth of a child or separation.  In this legal article, Ian Mellett of Auckland Law Firm, Quay Law discusses the importance of regularly reviewing and updating your Will, which is a very important document that formally sets out how your assets are to be dealt with upon your death.  Don’t delay – contact an experienced  Auckland lawyer at  Quay Law.  Whether you need us to update your will or draft your first will our experienced team of lawyers are able to guide you through this process.  This legal tip is shared by our Auckland law firm team. [button size='large' style='' text='Your Will is law - Legal article' icon='' icon_color='' link='https://aucklandlawfirm.co.nz/your-will-is-law-regularly-reviewing-your-will/' target='_self' color='#ffffff' hover_color='#ffffff' border_color='' hover_border_color='' background_color='#770000' hover_background_color='#770000' font_style='' font_weight='400' text_align='center' margin='20'] Excerpt: If you don't have a Will yet, or need to update a previous Will, you should get one drafted. A Will needs both an executor and a trustee. An executor obtains probate of your will from the court (when required) and the trustee carries out your wishes as set out in your Will when you die. ### News | Mortgage Finance and House Prices Mortgages and house prices ... Below pleased find extracts from two articles sourced from stuff.co.nz and shared by our conveyancing lawyers at Quay Law. Westpac has introduced a new round of market-leading fixed mortgage rates in an apparent attempt to win over other bank's customers. The lender's 'special' rates, which come with strings attached, are well ahead of any other advertised rate for the same fixed terms. This morning the bank introduced a one year fixed rate of 4.89 per cent, three years at 5.39 per cent and five years at 5.75 per cent. But the special conditions attached to the deals suggest that the rates are an attempt to win over fresh custom, rather than refinance existing loans. The requirement for at least 20 per cent equity rules out many first-home borrowers, and minimum new borrowing of $100,000 will rule out most of Westpac's existing customers. Rival lenders in the highly competitive space will likely feel the pressure to respond with price-cutting of their own, as interest rate cuts typically occur in clusters. However, the wholesale funding costs behind some of the banks' longer term lending do not appear to be significantly lower. One to five year swap rates have eased roughly 7 basis points in the last week, and are up roughly 20 basis points in the year to date. Westpac's general manager of retail Ian Blair suggested that anyone looking at fixing their rates "should make hay while the sun shines". "We are unsure how long we can sustain them for and will be reviewing them weekly." That window of opportunity may be as short as three weeks- the time it took for the bank to drop its recent special of 4.99 per cent for a two-year term. Whilst your mortgage funding is an important element of the property transfer transaction (conveyancing), please find below some interesting property statistics, sourced in a separate article on www.stuff.co.nz, released by QV New Zealand. QV research director Jonno Ingerson said the property market had a reasonably strong start to the year, with plenty of buyer enquiry and sales activity throughout January. And he said the increasing values were no longer solely being driven by Auckland and Canterbury. Increasing property values by region: Auckland Up 3 per cent over the past three months Up 10.2 per cent over the past year Up 12.4 per cent since the previous market peak in 2007 Wellington Up 0.6 per cent over the past three months Up 1.8 per cent over the past year Still below the market peak Christchurch Up 2.4 per cent over the past three months Up 7.1 per cent over the past year Up 6.3 per cent since the previous market peak in 2007 Hamilton Up 1 per cent over the past three months Up 3.7 per cent over the past year Still below the market peak Dunedin Up 1.1 per cent over the past three months Up 2.7 per cent over the past year Still below the market peak © Fairfax NZ News – November 2013 (www.stuff.co.nz) If you require any assistance with your conveyancing transaction, please contact our team of conveyancers at Auckland law firm, Quay Law. Excerpt: Westpac has introduced a new round of market-leading fixed mortgage rates in an apparent attempt to win over other bank's customers. ### Conveyancing or mortgage refinance what impact will the today's cash rate announcement have? This news article was Shared with you by our Auckland conveyancing lawyers at Quay Law. Our lawyers are specialists in property conveyancing and mortgage refinance. Newspaper article sourced and shared by the lawyers at Quay Law. Mortgage borrowers brace themselves Last updated 31/10/2013 Mortgage borrowers will have to brace themselves for the "brutal reality" of higher interest rates, but there's a silver lining in the recovery of the economy, economists say. This morning the Reserve Bank kept the official cash rate on hold at its historic low of 2.5 per cent, as was widely expected Governor Graeme Wheeler said the New Zealand economy was estimated to have grown by more than 3 per cent in the year to September. He said OCR rises would probably be required next year, although the extent and timing depended largely on whether the heated housing market and construction sector spilled over into broader inflation pressures. ANZ chief economist Cameron Bagrie expected the first hike to come either in March or June. "The brutal reality here is that you've got an underlying economy that's improving quite nicely," he said. "With that economic hum is going to be the inevitability that interest rates are going to move up a little bit over time." Modest changes in interest rates can make a big difference to loan repayments - for example a $400,000 mortgage at 8 per cent would cost $8000 more each year than a 6 per cent loan. Bagrie said one of the reasons interest rates were moving was that "more people are getting jobs and we're getting better pay increases". "You can have the flipside, where you have the unemployment rate moving up and no pay increases, and interest rates down at lows," he said. "Which would you want?" Bagrie said people had jumped into shorter-term fixed mortgages recently, with few opting for the longer terms up to five years. "You're losing a lot on the trade upfront if you lock into a five-year rate today, compared to what you'd get on say, a six-month rate," he said. "So people have tended to take the low rate in the interim." ASB senior economist Jane Turner said fixed rates had already priced in the latest announcement, while floating rates would not move until the OCR did. "The market has largely fully priced in our expectations for the tightening cycle," she said. "There is the potential that longer-term rates could lift higher still, depending on developments offshore." Turner said ASB was picking the OCR to reach 4 per cent in two year's time. Source: Fairfax news. 31 October 2013 Our lawyers are specialists in property conveyancing and mortgage refinance. For more information please contact our legal team on 09 5232408. Excerpt: Mortgage borrowers will have to brace themselves for the "brutal reality" of higher interest rates, but there's a silver lining in the recovery of the economy, economists say. ### Auckland Congratulations! Quay Law (Lawyer Firm) is proud to be part of this great city This article was sourced from Fairfax NZ and shared with you by our lawyers at Auckland lawyer firm Quay Law. Well done Auckland !!! Auckland Tourism Events and Economic Development is aiming to double the contribution from the visitor economy, growing it to $6 billion by 2021. Auckland named top 10 city to visit Last updated 02:00 29/10/2013 Despite it's embattled mayor, Auckland has been rated as one of the top 10 cities in the world to visit next year. The country's most populous city made the list of Lonely Planet's Best in Travel 2014, published today. Auckland sits alongside iconic hotspots including Paris, Zurich, Shanghai and Vancouver in the ninth annual guide, which highlights the trendiest destinations, journeys and experiences for the upcoming year. Auckland is recognised for its cuisine, culture and coastal scenery with Lonely Planet saying: "Food, arts and exploring the coastal hinterland are all excellent reasons to extend your stay in New Zealand's biggest and most cosmopolitan city." Mayor Len Brown said the accolade from the world's number one independent guidebook was well-deserved. "It shows Auckland is becoming known the world over as a destination in its own right, an exciting international city in a stunning natural setting, and an umissable South Pacific urban experience. The work we are doing to make Auckland a fabulous place to live and visit is paying off and putting Auckland on the map," he says. The guide makes particular mention of the waterfront area and Britomart as well as the more far-flung parts of the region such as the west-coast beaches and Waiheke Island. The recognition follows several others in the last year, including Lonely Planet's current New Zealand guide labelling Auckland's Hauraki Gulf and Islands and Auckland City the top two New Zealand experiences. The top-10 cities were independently nominated by more than 500 Lonely Planet authors and staff and selected based on topicality, excitement and "special X-factor". Auckland Tourism Events and Economic Development is aiming to double the contribution from the visitor economy, growing it to $6 billion by 2021. Quay Law | Lawyer Firm | New Zealand Excerpt: Auckland sits alongside iconic hotspots including Paris, Zurich, Shanghai and Vancouver in the ninth annual guide, which highlights the trendiest destinations, journeys and experiences for the upcoming year. ### 2013 economic survey and New Zealand Immigration New Zealands economic ranking for the year ahead as shared by our lawyers at Auckland law firm - Quay Law. Source: NZ Business Herald - 10 October 2013 New Zealand will rank among the strongest-growing of the advanced economies this year and next year, according to the International Monetary Fund's annual World Economic Outlook. It forecasts New Zealand's growth rate this year to be 2.5 per cent, bettered among the 35 advanced economies only by Israel, Singapore, Hong Kong and Korea. The average for advanced economies in 2013 is just 1.2 per cent. The IMF expected the growth rate to pick up to 2.9 per cent next year, exceeded only by the same four and Taiwan, and outperforming the advanced economy average of 2 per cent. New Zealand also looked relatively good on the fiscal front, with a general government deficit of 0.4 per cent of gross domestic product over 2014, compared with an average deficit of 3.5 per cent for the advanced economies as a whole. Next year's unemployment rate of 5.3 per cent was not as bad as the 12.2 per cent projected for the euro area, 7.4 per cent for the United States or even Australia's 6 per cent. But the failing grade on the report card was the current account balance: a bottom-of-the-class deficit of 4.2 per cent of GDP this year and next year, worsening to 6.1 per cent by 2018. The global economy has been stuck in low gear, the IMF said, expanding at an annual pace of around 2.5 per cent over the first half of 2013, about the same as the second half of last year. It expected a pick-up in the global growth rate, to 2.9 per cent for 2013 and 3.6 per cent for 2014, though for both years that was less than it forecast in July. Growth in world trade volumes was forecast to lift from 2.9 per cent this year to 4.9 per cent next year. Emerging market economies would continue to account for the bulk of world output growth even though their collective growth has slowed. The IMF forecasts China's growth to slow from 7.6 per cent this year to 7.3 per cent next year. "The forecasts assume that Chinese authorities do not enact major stimulus and accept somewhat slower growth, consistent with the transition to a more balanced and sustainable growth part," it said. It has US growth picking up to 2.6 per cent next year, helped by a recovering real estate sector, higher household wealth and easier bank lending conditions. In the euro areas, business confidence indicators suggested activity was close to stabilising in the periphery and already recovering in the core economies, the IMF said. But it was still only forecasting growth of 1 per cent next year, after a contraction of 0.5 per cent this year. New Zealand has a range of  immigration visa options depending on whether you want to work here, study, invest or simply enjoy a visit. Our NZ immigration policies have been developed to support New Zealand’s economic growth. If you’re looking to make New Zealand your permanent home and have skills, experience or capital that are in short supply locally, we’d love to hear from you. Moving here could be the life change you’ve always dreamed of.  To contact an immigration lawyer. Excerpt: New Zealand will rank among the strongest-growing of the advanced economies this year and next year, according to the International Monetary Fund’s annual World Economic Outlook. ### 2013 ARTS AWARDs held in Auckland. Congratulations Congratulations from our Auckland law firm team to the recipients of the Laureate, New Generation, Mallinson Rendel Illustrators, and Marti Friedlander photographic Awards and the Award for Patronage - announced at the 2013 Macquarie Private Wealth New Zealand Arts Awards on 15 Oct. Our lawyers and staff at Auckland law firm congratulate the worthy recipients of 2013 Macquarie Private Wealth New Zealand Arts Awards. The Macquarie Private Wealth New Zealand Arts Awards are established as an annual event.  The Awards evening is a black tie dinner featuring a performance by world-renowned opera singer Simon O'Neill. Don McGlashan also made a guest appearance at the Awards. New Zealand Artists are selected for these awards, without knowing they are under consideration, by independent experts appointed by the Arts Foundation.  As guests, our Quay Law team were first to find out who the recipients where and have the opportunity to congratulate the artists and share in the celebrations.    The artists featured were Artists featured: Laurence Aberhart, Gavin Bishop, Kushana Bush, Jane Campion, Kip Chapman, Sean James Donnelly (SJD), Dean Parker, Jono Rotman, Damien Wilkins, Megan Wraight, Mark Adams and Thomas Atkins. To view the link for all award winners CLICK HERE. Excerpt: Congratulations from our Auckland law firm team to the recipients of the Laureate, New Generation, Mallinson Rendel Illustrators, and Marti Friedlander photographic Awards and the Award for Patronage – announced at the 2013 Macquarie Private Wealth New Zealand Arts Awards on 15 Oct. ### To Forgive or NOT to Forgive the Trust Debt? To forgive or NOT to forgive? Consider the following situations and the impact on whether you should Forgive The Debt or NOT forgive The Debt:- 1.Relationship Property Implications; 2.Debts to a person who is not a trustee; or 3.Creditor avoidance. Our Auckland Trust lawyers have created numerous posts on our Auckland Law Firm blog relating Trusts and Trust Gifting.  But are there some situations where you could consider NOT forgiving The Trust Debt? Consider the following situations and the impact on whether you should Forgive The Debt or NOT forgive The Debt:- Relationship Property Implications Debts to a person who is not a trustee Creditor avoidance By way of example What if the individual is a settlor but not a beneficiary?  The only way to access assets in the trust is through repayments of the debt. Once the debt is forgiven the settlor may lose this control of the trust. What if one partner in a relationship has a sum of money which is separate property (example an inheritance) and wishes to preserve it as such but may wish the couple to have the benefit of the money through their trust purchasing a house?  The moneyed partner should advance the funds to the trust by way of loan and that should not be forgiven. What if parents have loaned a sum of money to their child’s trust, possibly to assist in the purchase of a first home?  Here forgiveness of the debt would not be advised. There is no “one answer” as to whether the Settlors* should make one final gift after 1 October 2011. Each situation is different and the above trust related examples only serve as that, examples.  It is as in most situations, important to seek appropriate legal support when making the decision as to whether you should forgive your debt or not. Please contact our lawyers at Quay Law if you have any questions in relation to your Trust gifting programme or Trust administration. Our trust lawyers are experienced in dealing with Trusts and want to ensure that our clients get the best legal and relevant advice possible. Our Auckland lawyers take a personal and practical approach to New Zealand law, enabling our clients to cut through the legal issues and get on with business. For more information please contact us. *Settlors: This is the person who sets up the trust, and is usually also the person who currently holds the assets that will be transferred to the trust. Excerpt: Our Auckland Trust lawyers have created numerous posts on our Auckland Law Firm blog relating Trusts and Trust Gifting. But are there some situations where you could consider NOT forgiving The Trust Debt? ### Signing an agreement for sale and purchase of property | conveyancing It is a good idea to have your conveyancing lawyer review any Sale and Purchase Agreement prior to the agreement being signed. This is to ensure all the necessary contract conditions are included within the signed property agreement. We understand that the buying or selling a new property  can be daunting but our experienced conveyancers will guide you through the home transfer process and understanding the agreement for sale and purchase of property in New Zealand. Our Auckland lawyers will discuss the various legal options and contract conditions available to you as these will differ depending on if you are buying a rental investment property or a home to live in and on your personal circumstances. Do you need help with your Agreement for Sale and Purchase of Property? To discuss your situation with an experienced property conveyancer please contact our Quay Law team on Phone (09) 523-2408. [button size='large' style='' text='Contact Quay Law' icon='' icon_color='' link='http://www.lawyerinauckland.co.nz/contacts.html' target='_self' color='#ffffff' hover_color='#ffffff' border_color='' hover_border_color='' background_color='#770000' hover_background_color='#770000' font_style='' font_weight='400' text_align='center' margin='20'] Auckland law firm Quay Law prides itself on its “open door” and friendly approach to business. An approachable lawyer is usually available at short notice to assist you with your particular transaction, dispute or problem.   To contact our Auckland law firm please call ph: (09) 523 2408. Excerpt: It is a good idea to have your conveyancing lawyer review any Sale and Purchase Agreement prior to the agreement being signed. This is to ensure all the necessary contract conditions are included within the signed property agreement. ### What does conveyancing mean? Shared by our Auckland conveyancing staff. What does Conveyancing actually mean? The literal meaning of conveyancing , as shared by our Auckland conveyancing specialists, is the action of preparing documents for the transfer of property. If you are thinking about buying a house in the Auckland area and would like a local lawyer who understands the area, can offer a well priced and reliable legal service do not hesitate to ring our Auckland Conveyancing lawyers at Quay Law Barristers and Solicitors in Remuera on 09 5232408 or contact us here. How we help you? Our Quay Law Auckland Conveyancing team can... either draft a sale and purchase agreement for you if you are involved in a private property transaction, or if you are using a real estate agent our legal team can advise you on what conditions to include in your property contract   prior to you signing it. Contact an Auckland Conveyancing Specialist. Excerpt: Conveyancing actually mean? The literal meaning of conveyancing , as shared by our Auckland conveyancing specialists, is the action of preparing documents for the transfer of property. ### Reviewing your trust affairs - what is involved? The New Zealand law on trusts is always changing so it is a good idea to review your trust matters regularly and ensure that you are getting the most out of your trust as well as meeting all current  NZ legal requirements. With the impact of recent gifting law changes, now is an appropriate time to review your trust affairs. These are some of the aspects to be considered during this trust review process. Gifting Review of your Trust Deed Wills Review of Beneficiaries Memorandum of Wishes Power of Appointment Deed of Distribution Powers of Attorney Auckland law firm Quay Law prides itself on its “open door” and friendly approach to business. Someone is usually available at short notice to assist you with your particular transaction, trust question or dispute. We try to provide an approachable, friendly, efficient and professional service and to keep our clients’ best interests in mind. For assistance with conducting a review of your family trust and trust affairs, please contact Auckland lawyer,  Ian Mellett by phone on 09 523 2408 or email ian.mellett@quaylaw.co.nz [button size='large' style='' text='Contact an Auckland lawyer' icon='' icon_color='' link='http://www.lawyerinauckland.co.nz/contacts.html' target='_self' color='#ffffff' hover_color='#ffffff' border_color='' hover_border_color='' background_color='#770000' hover_background_color='#770000' font_style='' font_weight='400' text_align='center' margin='20'] Excerpt: The New Zealand law on trusts is always changing so it is a good idea to review your trust matters regularly and ensure that you are getting the most out of your trust as well as meeting all current NZ legal requirements. ### Property in the spotlight shared by our Conveyancing Team This property article was shared with you by our conveyancing team at Auckland law firm Quay Law.  Source: NZ Herald (14 September 2013) Property valuer Quotable Value said this week house prices should keep rising for a further 15 months. Alanah Eriksen spoke to four experts about the present market, when it's likely to cool, and how it compares to the 2002-2007 boom. The Question | Why are house prices going up so rapidly? The Auckland supply crisis is the overwhelming reason. There are too many people and too few homes in the city and it's slowly filtering out to the regions. There were 89,300 immigrants to New Zealand in the year to July 2013, up 7 per cent on last year, and fewer people are leaving. Auckland Property Investors Association president David Whitburn said the city needed at least 10,000 dwellings per year to cater for excess demand but just 5300 building consents were issued in the past year. Price issues had halted construction - timber and plasterboard were much cheaper in bigger economies like Australia and the US - as had a lack of skilled tradespeople. Auckland University Real Estate Research Unit director James Young said looser lending and historically low interest rates were also contributing. Banks tightened up during the global financial crisis and house hunters would see a return of strict criteria when the Reserve Bank brought in new rules from October 1 that will see few people able to secure home loans of more than 80 per cent. An overseas study in June showed New Zealand had the fourth most overvalued property prices in the developed world. Haven't we been here before? A lot of the drivers of the present boom are reminiscent of the 2002-2007 boom - population growth, low interest rates, higher incomes and low housing consents. But back then there was more building, says Real Estate Institute (Reinz) chief executive Helen O'Sullivan. "Demand and supply were chasing each other up, whereas at the moment we just have demand chasing itself up." Reinz figures show the number of homes sold in March 2004 was 11,378, and 10,989 in March 2007. But this year, there were 8128 sales. The other big difference was the boom spread further than Auckland last time. If you took Auckland and earthquake-stricken Christchurch out of the equation, the median price was relatively stable this time. Attitudes to the two booms were also different - more people were buying and selling in 2007, but people now weren't taking as much risk, O'Sullivan said. "People are saying 'Well, I can't afford to sell or I'll never get back in'. Second-home buyers are not selling their first home, they're keeping it." One open home for a $665,000 house in Manukau saw 93 groups through. Only three had property they were looking to sell while the others were either first-home buyers, or people with other properties they didn't intend to sell. David Whitburn said: "Some people still remember the hurt in 2008 and the downturn really only ended in 2011. People are not so cavalier this time around." Tony Alexander, BNZ chief economist, said there was much more awareness of a shortage this time, research revealing just how many more houses were needed for our increasing population. A number of global factors were in play during the last boom - the American invasion of Iraq in March 2003, worries about the Sars epidemic and inflation in the US which caused the Federal Reserve to drop their cash rate to 1 per cent, which in turn dropped New Zealand's interest rates. The New Zealand dollar was also very low, which delivered strong growth in the regions. How much higher will property prices go? Our experts hesitated to guess. O'Sullivan said she didn't expect to see the present rate of property price increases (10 per cent in Auckland on last year and 6 per cent nationally) continue this time next year as supply increases and higher interest rates kicked in. And while Whitburn called it "crystal ball-gazing stuff", he predicted the Auckland region median price could go as high as $735,000 by July. It was likely to reach $695,000 by 2015 and $685,000 in July 2016. "The council and central government would likely slash the red tape and allow developers to build more medium-density housing projects," he said. As a result, he said, we will see the market grow, but the median house price will actually come down as a result of more affordable homes on much smaller land or apartments being built, in a serious attempt to reduce the housing crisis and have 39,000 homes built over three years. "In July 2016 the property cycle has a strong chance to have just started to turn into a recession." Nationally, house prices could reach $475,000 by next year, $505,000 in July 2015 and $520,000 in July 2016. Whitburn predicted areas like Waiheke Island, Rakino Island, Helensville and towns in the Franklin area might see a 30 per cent growth in prices. Some of the more central suburbs would have less movement with affordability constraints as they had already done so well since late 2007. Are we headed for a crash? It depends who you ask. Helen O'Sullivan and Tony Alexander say not. "What would give rise to a crash would be only a major drop in demand and I think there is so much pent-up demand that if prices did ease off, there's that many people that have dropped out in discouragement that would be encouraged to have another go," O'Sullivan said. "Barring a major catastrophe, I can't think what would bring about a major crash." James Young thinks the opposite. "Things don't go up forever ... you're about two years maximum away from a crash." He predicted new lending criteria would stifle borrowing, especially among first-home buyers. Whitburn says we are headed for a crash "as surely as day follows night". "There are three phases to a property cycle. A boom, followed by a bust, then a recovery." The central bank held the official cash rate at a record-low 2.5 per cent as expected this week but said it was likely to rise next year, indicating a possible rise of 25 basis points by June 2014. What will happen to my house? If you live in Auckland, your house price will probably keep surging for at least two years, but the same rate of increase isn't likely to happen in the regions, says Young. David Whitburn said now was a perfect time for Aucklanders to sell - but not to buy. Small towns like Kaitaia, Kaikohe, Murupara, Tokoroa, Taumarunui, Winton and Waipukurau were suffering population declines and house price dips of 25 per cent below their 2007 peak. Helen O'Sullivan said house hunters needed to be open to the type of home and neighbourhood. "Interest rates will rise. If you are struggling to sustain a mortgage at a price point now, or it's terrifying, then it's only going to get worse ... Some people are hanging 10 until a bit more supply comes to market. "But you've got to be realistic about the fact that we aren't going to magically create another Meadowbank or another Pt Chevalier. There just isn't any more land in the inner areas of the city, or it's going to be more compact housing than we're perhaps used to." And what about the age-old question - should homeowners fix or float their mortgage? Whitburn, who owns several properties around Auckland, does both, as do many seasoned investors. "It's important to not have all your pricing come up at once. What you should do is spread your borrowing across different loan terms." What about first-home buyers? All our experts say they should buy as soon as they have a deposit ready - don't wait for a crash. Whitburn praised the Government for raising the Welcome Home Loan house price cap from $400,000 to $485,000 in Auckland, effective from October 1. "Home-owners should buy now as prices are going up in the wake of continued under-supply that will take a decade to address and the demand is strong." Top of market buy still brings huge profit, despite warnings When Hailey and Dave Bloore paid $485,000 for their tiny two-bedroom home during the height of the previous property boom, friends said they were crazy. But they're the ones laughing now, having just sold the house for almost double that. No 10 Renton Rd in Mt Albert went for $805,000 under the hammer in the Barfoot & Thompson auction rooms - almost 50 per cent or $265,000 over the valuation of $540,000. The couple bought the 1940s weatherboard former state house in 2006, when property prices were skyrocketing as part of the 2002-07 boom. It was valued at $440,000 at the time so they paid 10 per cent more. The house is just 82sq m but sits on a 613sq m section. The Bloores, both 32, said they were "blown away" by how much the house sold for. They had been renting the property when their landlord put it on the market. "We just really liked living there and didn't want to move, Mrs Bloore said. "And there was so much frenzy around, people wanting to get into the market. We thought, 'Shall we just buy it?"' At the time, banks were giving out loans of 100 per cent. Now, buyers will have to come up with a 20 per cent deposit. "We didn't have any money saved so we just went into the bank and they said 'yes, you can borrow as much as you need'," Mrs Bloore said. "It seemed easy at the time." But money was tight with mortgage repayments almost triple the rent, she said. "At the time it was a big stretch but just the idea of owning our own house, making it the way we wanted it was quite a good feeling, so we went for it." Mrs Bloore, a business development manager, said she was glad they bought when they did. "When we bought it, we had a lot of friends telling us we were crazy, that the property market was going to come back. But we're really glad we bought at the time because some of those friends still don't have a house. "It was right in the middle of the boom, and then it crashed." The couple, who have separated, are each hoping to buy again in the area and expect that with the new restrictions, there may be fewer people house-hunting so there will be more choice. The house sold after a two-week marketing campaign which drew packed open homes, despite wet weather both weekends. The buyer was a single Auckland man. To contact an Auckland property | conveyancing lawyer at Quay Law. Excerpt: The Auckland supply crisis is the overwhelming reason. There are too many people and too few homes in the city and it’s slowly filtering out to the regions. ### Trusts rule makeover floated and the impact on Family Trusts This article on Trusts and Family trusts is shared by the Trust Specialists and lawyers at Auckland law firm Quay Law.  The article was sourced from stuff.co.nz on 11 September 2013. Up to one in four Kiwis could be affected by changes to the laws covering trusts, which are being recommended by the Law Commission.  The commission, an independent body funded by the Government to review and update laws, has called for a makeover of the trust rules.  In particular, it proposes a Trusts Act to replace the Trustee Act 1956 which it believes has become "outdated and convoluted".  Default settings, such as the default powers of trustees, no longer lined up with what happened in practice.  In other cases, some trust matters were being governed only by case law.  Catherine Atchison, a spokeswoman for the Auckland District Law Society, said Kiwis were big users of trusts, not just for protecting family assets, but also by businesses, Maori landowners and charities.  Her organisation conservatively estimated that any new laws surrounding trusts would impact about 1 million New Zealanders.  Atchison said an explosion of trusts occurred after stamp duty was removed in 1993.  "The consequence is you have a lot of laypeople acting as trustees, who don't have the knowledge of perhaps lawyers or people who work in the trust area the whole time."  The proposed new law would clearly set out the core characteristics of trusts and duties of their trustees.  It would also firmly underline that a trust could be found invalid if the trustees were not steering it towards its ultimate purpose, the benefit of its beneficiaries.   "It's basically codifying the traditional trust law and saying this is what a trust is."  The Law Commission has also set out to rectify what it sees as an unjust aspect of family trusts, when they are used to keep former partners from their share of assets made during the relationship.   It recommends courts be given the ability to transfer trust assets to compensate disadvantaged partners after a marriage or relationship breakdown.  Other recommendations include an expansion of the rights of beneficiaries, improved procedures to appoint or remove trustees, and a longer maximum time frame for the duration of a trust.   It is proposed that trusts be able to exist for up to 150 years, rather than the current 80 years.  Atchison said such a move would be "fantastic" for charitable trusts and more practical for creating generational wealth.   "Eighty years these days is only really covering one and a bit generations. A hundred and 50 years gives a settlor some certainty that at the time they establish the trust that it is for a specific reason and a specific term to achieve an outcome."   - © Fairfax NZ News This article was sourced for you by the Auckland lawyers and family trust specialists at Auckland law firm | Quay Law . To contact a trust lawyer. Excerpt: This article on Trusts and Family trusts is shared by the Trust Specialists and lawyers at Auckland law firm Quay Law. The article was sourced from stuff.co.nz on 11 September 2013. ### Enduring Power of Attorney - What is an EPA? An Enduring Power of Attorney is a simple way of ensuring that if for any reason you become incapacitated, or are unable to manage your affairs, the person you have appointed as your attorney can attend to these matters for you. They are powerful documents however in that they continue to have effect in the event of you becoming incapacitated mentally, so you should exercise care in your appointment. There are two types of attorney, Property (in which two people can act as an attorney) and Personal Care and Welfare (in which you can only have one attorney). The Welfare attorney only comes into effect when you become mentally incapacitated, whereas the Property attorney can have effect immediately if you wish. Can I change my mind about giving someone power of attorney? Yes. You can change, vary or revoke (cancel) your EPA at any time while you are mentally capable. Two kinds of Enduring Power of Attorneys There are two kinds of EPA: One that covers a person’s property and one that covers their personal care and welfare Appointing someone to act on your behalf Do you feel confident that others will know how to look after you and your property if you become unable to do so yourself, such as through accident, illness or incapacity? There may come a time when you become unable to make or communicate decisions yourself. It is crucial that someone you trust knows how you would want your life and property handled. One way to ensure this happens is to appoint someone to act on your behalf by giving them “enduring power of attorney”. Power of Attorney for Personal Care and Welfaire This EPA will only come into effect if you become incapable of making or communicating your decisions. An EPA for personal care and welfare can only be given to one individual and not to a trustee company. The EPA can authorise the attorney to act in relation to your personal care and welfare generally, or only in relation to stated specific areas. Power of Attorney for Property You can choose when you want a power of attorney for property to take effect – now, or when you can no longer manage your affairs. You can give the attorney full power over all your property, or limit power to, for example, looking after specific investments or property. An EPA for property can apply to as many or as few assets as you, the donor, wish. If it is to be limited, that must be specified. Who to choose as your adviser? You may choose to appoint your spouse or one or more of your children, or any other family member. You may also choose a friend or a professional adviser. How do I go about setting up an enduring power of attorney? To set up an EPA you will need legal advice. Your legal adviser will explain what information should be included and the decisions you must make.  To contact a legal adviser at Auckland law firm Quay Law . Auckland law firm 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. [button size='large' style='' text='Contact Us - (09) 523 2408' icon='' icon_color='' link='https://aucklandlawfirm.co.nz/contact-your-auckland-lawyers-and-law-firm/' target='_self' color='#ffffff' hover_color='#ffffff' border_color='' hover_border_color='' background_color='#770000' hover_background_color='#770000' font_style='' font_weight='400' text_align='center' margin='20'] Excerpt: An Enduring Power of Attorney is a simple way of ensuring that if for any reason you become incapacitated, or are unable to manage your affairs, the person you have appointed as your attorney can attend to these matters for you. ### Conveyancing and Types of Property Ownership What is Conveyancing? Conveyancing | property transfer  is all the legal legwork needed to buy or sell a property whether this be an investment property or home for your family. There are a number of important legal steps involved, which include title searches and contract preparation. When buying or selling a property it's important to get the right conveyancing advice from the start. If you are buying a property, our property lawyers | solicitors can help make sure the purchase is smooth and effortless, by providing advice at every stage until you complete the purchase or home transfer. If there is no real estate agent involved we can prepare an offer for you. Type of Property Ownership? One of the questions frequently raised by clients pertains to the type of property ownership involved, so our conveyancers thought that it would be useful to set out the most common forms of property ownership below: Fee simple: This represents a form of freehold ownership and in essence represents absolute ownership of the property.  When people say that they “own” or “own the freehold of” a certain parcel of land they almost invariably mean that they own an estate in fee simple in that land. Leasehold: This is a form of property tenure where one party buys the right to occupy land or a building for a given length of time.  A leasehold estate thus differs from a freehold where the ownership of a property is purchased outright and thereafter held for an indeterminate length of time, and also differs from a tenancy where a property is rented on a fixed term or periodic basis. Until the end of the lease period the leaseholder has the right to remain in occupation as an assured tenant paying an agreed rent to the owner. Cross lease: This is a hybrid form of multi-unit tenure in which each owner has an undivided share of the underlying freehold as tenants in common, and is granted a registered leasehold estate of the particular unit or flat occupied.  Effectively the property owners share ownership of the land and each owner leases their building from the other owners, which together form the cross lease title. Stratum estate: Under the Unit Titles Act 1972 the deposit of a unit plan has the effect of creating in each unit a new kind of statutory estate called a stratum estate in freehold, or a stratum estate in leasehold, depending on whether the land which was subdivided into units was freehold or leasehold. Source: Type of property ownership by Ian Mellett, Auckland lawyer Please contact an Auckland Conveyancing Lawyer and they will be able to answer any further questions. Our Main Website | Quay Law | Lawyer in Auckland Website   Excerpt: Conveyancing | property transfer is all the legal legwork needed to buy or sell a property whether this be an investment property or home for your family. There are a number of important legal steps involved, which include title searches and contract preparation. ### Leasehold Properties Leasehold Properties Owners walk out as prices plummet Source Stuff.co.nz ( August 2013) Homeowners in some of the country's most desirable streets are abandoning their homes in droves, walking away from properties worth millions of dollars because of skyrocketing lease rentals. Owners have abandoned at least eight properties in Auckland's Greenlane in the past two years, while others have sold for a fraction of the price they were bought for. In one case, a house bought for $500,000 in 2005 was sold for just $70,000 six years later. The fire sales and abandonments are the reverse of the overheated prices in the country's hottest property market, where average house prices recently hit an all-time high of $639,385. The reason for the meltdown in One Tree Hill is skyrocketing lease rentals. Swaths of land adjoining the prominent Auckland parkland are owned by the Cornwall Park Trust Board, which leases out around 110 residential sections to generate income for the park's upkeep. These perpetual leases are set at 5 per cent of the land's underlying value and set for 21-year terms. The most recent round of reviews - undertaken during the property boom - has pushed many residents to breaking point. It is understood average rents for the abandoned properties increased from $6000 to $43,000. Leaseholders own only the buildings on the land and must also commit to paying annual fees to landowners to occupy the property. Leasing is a cheap way to access desirable addresses, but a rise in rental fees discounts the value of sections, as potential buyers need to factor ongoing rental costs into their purchase. The recent rental hikes have made buyers wary and selling a painful proposition. Cornwall Park leaseholders banded together and raised $427,500 to challenge the rental hikes all the way to the Supreme Court - and lost. Residents spoken to by Fairfax Media have told of feeling trapped by impossible-to-pay rentals and impossible-to-sell houses. Cornwall Park director Michael Ayrton said he is in a difficult position and is required by lease and trust deeds to charge 5 per cent and ensure the parklands are maintained for future generations. "We don't like to see people under financial pressure or facing forfeitures, particularly when we've had a long-term relationship with them," he said. The leasing arrangements had operated for 80 years without abandonment. But Ayrton conceded changes may be necessary in light of residents walking away from family homes. "We are now giving consideration to what will continue to work well over the long term," he said. Local MP Sam Lotu-Iiga said he brokered an unsuccessful meeting between the residents and the trust board and will now raise the matter with Housing Minister Nick Smith. Auckland University business professor Lawrence Murphy said leasehold residential sections were a novelty in New Zealand and often misunderstood by property buyers who made assumptions based on their understanding of freehold property. "Leasehold properties are much better understood in countries like the United Kingdom," he said. Capital gains, a staple of Kiwi property investing, were a non-factor when leasing, Murphy said. "In reality this gain is attributable to the landowner. You should only be viewing this as an opportunity to consume a space," he said. - © Fairfax NZ News Excerpt: Homeowners in some of the country’s most desirable streets are abandoning their homes in droves, walking away from properties worth millions of dollars because of skyrocketing lease rentals. ### Auckland law firm considers the Property Sale and Purchase Agreement. Your Property Sale and Purchase Agreement | Conveyancing legal tip shared by Auckland law firm Quay Law. It is a good idea to have your lawyer review any Sale and Purchase Agreement prior to the agreement being signed. This is to ensure all the necessary conditions are included within the property agreement. For more information regarding the legal aspects pertaining to legal transaction contact an experience conveyancer at  Quay Law. We are conveniently situated in Remuera (Corner St Vincent Avenue and Remuera Road) with easy access to free parking on St Vincent Avenue.  See map for your convenience.   LINK - our Property Conveyancing Website Quay Law Website Contact Page. Property Law  |   Conveyancing  |  Auckland Law Firm Excerpt: Your Property Sale and Purchase Agreement | Conveyancing legal tip shared by Auckland law firm Quay Law. ### New Zealand Property Market - Sales | Values | Home Loans Auckland law firm Quay Law offering Property law and conveyancing services shares this media report with you. New Zealand Property values continue to increase, yet property sales volume appears to be falling and home loans | funding appear to be harder to access.   Property values continued their upward march in July, rising 8.1 per cent in the past year, according to valuation service QV. However, sales appeared to be falling off because home loans were getting harder to access. House values are now up 7.5 per cent above the 2007 market peak, and 3.1 per cent in the last three months. QV's operations manager Kerry Stewart said the market was still primarily driven by shortages in Auckland and Christchurch, while other main centres were growing more slowly. Many of the provincial towns had previously started to see some small gains but they had levelled off over the last month. Nationally, property sales had fallen since May at a greater level than was usually due to winter, partly because of a drop-off in home loan approvals. "Many main banks [are] already tightening their lending policy in anticipation of policy changes from the Reserve Bank," Stewart said. In Auckland overall prices were up nearly 13 per cent, with Waitakere growing the fastest at nearly 14 per cent. Stewart said there was patchy growth across the city and central Auckland was generally flat, as were areas more than 10km out of the city. "Once you move out of the central area, commute times for example become a deterrent. "However, we are still seeing good money being paid for normally average listings due to the lack of stock." Winter had slowed Hamilton's growth spurt but values were still 3.8 per cent over the past year. Local QV valuer Richard Allen said prices were rising in the north-east of the city and around Flagstaff, where a lot of construction was going on. But entry level homes below $300,000 were a struggle to find. The Wellington market showed small signs of growth, with prices up 2.8 per cent on the same month last year. July had been relatively quiet, partly due to school holidays and probably also because of the recent earthquakes, valuer Pieter Geill said. "The latter may mean buyers will start to focus more on the quality of buildings and their level of earthquake proofing. We are also seeing insurance becoming a standard condition of purchase." Christchurch property values have risen 10.8 per cent in the last year, with Banks Peninsula and central and northern parts of the city seeing the most rapid increases. QV Valuer Jonathon Dix said first home buyers were trying to get into the market in the $500,000 and under bracket before Reserve Bank lending changes came into play. A steady influx of rebuild workers also continued to put pressure on the market, pushing up demand for rentals. - Source Fairfax NZ News (9 August 2013) Excerpt: Auckland law firm Quay Law offering Property law and conveyancing services shares this media report with you. New Zealand Property values continue to increase, yet property sales volume appears to be falling and home loans ### Disputed Will or Disputed Deceased Estates Disputed Deceased Estates or a Disputed Will shared by Auckland law firm Quay Law. Some common causes of problems/disputes over wills are: •A family member or members believe the will is clearly unfair wrongly favouring some beneficiaries over others; (Family Protection Act 1955) •Persons who have been promised a benefit in an estate have been left out; ( Law Reform (Testamentary Promises) Act 1949.) •There is no will at all; (Administration Act 1969) •Some family members dispute that the will is valid at all maybe foe example that the deceased had no mental capacity at the time they signed the will; •A spouse may have a claim under the relationship property act because they believe they have not got half of the deceased’s property; Property (Relationships’) Act 1979 In order to discuss any particular problem or issue you have with an estate distribution or disputed will, please contact an approachable lawyer at Auckland law firm Quay Law. Wills | Estate Administration | Auckland Lawyers | Deceased Estates | Disputes | Disputed Wills Excerpt: Disputed Deceased Estates or a Disputed Will shared by Auckland law firm Quay Law. ### The Conveyancing Conditions in your Property Contract - Insurance Conveyancing Property Law Tip -  Shared with you by the lawyers at Quay Law | July 2013 Should you include insurance in you conveyancing conditions? Our conveyancers recommend that in light of the current New Zealand insurance environment it is now prudent to include the obtaining of insurance as an additional standalone condition in any agreement for sale and purchase of real estate. It is important to word such a conveyancing condition clause appropriately and you should feel free to contact any of our Auckland property lawyers should you need any assistance in this regard. Call Quay Law for legal advice on property law, conveyancing and any other legal services. Our Auckland lawyers can prepare wills and family trusts, conveyancing for house sale and purchase agreements, relationship property settlements, commercial leasing, company law,  property subdivisions and can assist you with you New Zealand Immigration. [button size='large' style='' text='Contact a Lawyer in Auckland' icon='' icon_color='' link='http://www.lawyerinauckland.co.nz/contacts.html' target='_self' color='#ffffff' hover_color='#ffffff' border_color='' hover_border_color='' background_color='#770000' hover_background_color='#770000' font_style='' font_weight='400' text_align='center' margin='20'] Excerpt: Our conveyancers recommend that in light of the current New Zealand insurance environment it is now prudent to include the obtaining of insurance as an additional standalone ### Insurance and Property Conveyancing | shared by the Auckland law firm legal team This article has been sourced by the conveyancing lawyers at Auckland law firm Quay Law. Conveyancing @ Quay Law Quake puts insurers, home buyers on alert 24/07/2013 The property market is expected to become a casualty of Sunday's earthquake as insurers and home buyers tread more cautiously. Buyers in the Wellington and Marlborough regions are being advised to consider delaying their purchases or to ensure the final sale agreements are subject to obtaining insurance. Massey University senior lecturer in insurance and finance Michael Naylor said prospective buyers should pause for a while. "If I was buying homes, I would delay things until they can buy insurance. You can't expect the insurance companies at this stage to take on new clients." Insurance Council of New Zealand operations manager Terry Jordan said some of its 27 members - including AA, State, NZI and AMI - were not taking on new business in the centre of the country as they assessed quake damage and risk. However, insurers have said they are open to compromise to ensure the property market does not "grind to a halt". Even if earthquake activity eased, the standoff could last for weeks, and could stretch to several months, Mr Jordan said. "There's no measure on this, unfortunately." AA Insurance has an exclusion zone on new policies in place for the Wellington and Marlborough regions. Home buyers would be given insurance only if the home was already insured by AA, consumer affairs head Suzanne Wolton said. That was provided the house was undamaged by the latest swarm of earthquakes, and met other insurance criteria. "We don't want the property market to grind to a halt, and we hope this will be a relief for some home buyers." Tommy's Real Estate sales director David Platt said it had implemented a policy by which all sales agreements contained a clause making them subject to the buyer being able to obtain satisfactory insurance. It was also speaking to all recent vendors and purchasers who had not yet settled. "Our advice is people who have bought properties need to establish that they are able to get insurance cover or where there might be a potential issue. "We would imagine this process will be short-lived and may cause a few disruptions to some property settlements for a couple of weeks." Harcourts New Zealand chief executive Hayden Duncan said demand did not appear to have been affected, but Sunday's quake was likely to lengthen the sales process. One method adopted in Christchurch, and largely accepted by insurers, involved buyers taking over the insurance policies of the vendors. While insurers were reluctant to take on new policies, they could generally replace them and maintain the same level of risk. "There's no logical reason for that not to occur," he said. Mr Jordan said he had spoken to the Real Estate Institute about ways to smooth out the sales process in affected areas, including the subject-to-insurance clauses and adopting existing policies. He expected the advice would be passed on to real estate agents to help ease any concerns among wary buyers. "It'll make people a bit nervous, but I think the real estate agents will work this out." Those up against a sale deadline should instruct their lawyers to work out an agreeable solution. Prime Minister John Key said yesterday that, for the most part, insurers had taken a "very responsible view" of the earthquakes and there was no suggestion they now saw New Zealand as too risky. "We haven't seen any indication that insurers don't remain committed to this market and, most importantly, the reinsurers who actually provide the backup insurance . . . seem to remain committed to New Zealand." Dr Naylor said he did not expect the latest shakes to have a major effect on premiums. - © Fairfax NZ News Excerpt: The property market is expected to become a casualty of Sunday’s earthquake as insurers and home buyers tread more cautiously. ### A new royal baby boy is born A royal baby boy has been born to the Duke and Duchess of Cambridge. He is a healthy 8 pounds, six ounces (3.8kg), born at 4.24pm on Monday (5.24am NZ time). The birthdate is significant to the Auckland lawyers at Quay Law as Ian Mellett also celebrates his birthday on the 22 July. Excerpt: A royal baby boy has been born to the Duke and Duchess of Cambridge. ### Home loans and pending changes shared by our property lawyers This article was sourced for you by the property lawyers and home transfer specialists at Auckland law firm Quay Law. To contact a property lawyer | conveyancing lawyer. Loan sharks circle home buyers 21/07/2013 Controversial plans to put the brakes on mortgage lending threaten to push home buyers into the arms of loan sharks to top up deposits. Experts say it could open up a market for cut-throat finance companies making a killing off desperate home buyers. The Reserve Bank is planning to limit the amount of loans that banks can give to borrowers with deposits of less than 20 per cent, in an attempt to take some steam out of the overheating property market. Banks have been told to prepare for the restrictions in loan-to-value (LVR) lending, and Beehive sources indicated an announcement was likely next month. The Reserve Bank is yet to do its final round of consultation with ministers on the move, and has said it will give two weeks' notice of the new regime starting. It is understood government attempts to protect first-time buyers from the changes have been unsuccessful, and it is likely they will be most affected, raising fears they will turn to second-tier lenders to make up the difference. The change means that should someone be looking to buy a house for $500,000, a 20 per cent deposit would be $100,000 - a huge jump from a 5 per cent deposit of $25,000. Financial Services Federation (FSF) executive director Lyn McMorran warned of a return to the days when cowboy finance companies and solicitor's loans were commonplace. "In the bad old days, you'd pay horrendous interest rates on second mortgages," she said. "That'll happen again." While at least one of the FSF's members offers mortgage top-ups, McMorran said few had made it through the collapse of the finance company industry. "What's likely to happen if people start sniffing that there's a market for it, is that the dodgy players will come back into the market again," she said. McMorran said the few remaining operators and banks were experienced and reputable, and the Reserve Bank's "fiddling" could prove counterproductive. "Just leave it alone - it's not broken, so don't fix it," she said. Non-bank lending specialist Kim Lyons, owner of NonBK Limited, expected a flood of new business if the rules were introduced as expected. "We might get a first mortgage through a mainstream lender such as a bank, but we'll be using other means to get the additional funds," he said. Lyons deals with several small finance companies as well as private lenders - whom he would not name - with a couple of million dollars on their loan books. He had given home loan top-ups ranging from $5000 through to $350,000, with interest rates typically running around the 14-16 per cent mark. That's roughly two to three times more expensive than typical bank mortgage rates, which are still at or below 5 per cent for some fixed terms and around 5.75 per cent on floating rates. Lyons, a registered financial adviser, said he encouraged first-home buyers to repay high-interest debt first, with the primary mortgage usually set up as interest-only. He also said he was always upfront about the higher costs of non-bank finance. "There's a lot of people who don't tell it all - we're definitely not in that space." The Reserve Bank is all too aware that people will find creative ways to get enough equity to avoid its strictures. Publicly released discussion documents reveal that it is hoping the higher cost of non-bank loans will turn people away from "opportunistic lending". In any case, the bank said, borrowing from unofficial sources "would present less risk to the resilience of the financial system, given that these lenders sit outside the ‘core' system". In a recent speech, Reserve Bank deputy governor Grant Spencer said the most obvious alternative was for people to hit up mum and dad or other relatives to top up the deposit. "That is a family's prerogative, and there is nothing the Reserve Bank could or should do about it," he said. Bankers' Association chief executive Kirk Hope said it was likely that people would turn to other sources, based on other countries' experiences. "In Canada and Sweden that's exactly what happened," he said. Loan-to-value restrictions applied in Sweden in 2010 have made it commonplace for Swedes to borrow a portion of house purchase costs through an unsecured top-up. In South Korea, the practice became so prevalent that authorities had to extend the regulation to cover non-bank lenders as well. That is something our central bank has said it would consider in "due course" if avoidance became a big enough problem. PURCHASERS IN DICE WITH PERCENTAGE CLOCK The new 20 per cent rule has created a race against the clock for Alastair Aitchison and partner Nicole Bladen. The couple, both in their early 20s, have saved $20,000 - 5 per cent of the $400,000 they have been pre-approved by the bank to borrow. The problem is finding a house in Auckland for $400,000. Aitchison said he had been to over 20 open homes in three months. The only houses in the late $380,000 range they had found had "issues" such as water-tightness or unconsented alterations that made the bank unwilling to lend them money on. If they could not find a house before the limit went up, their $20,000 deposit would have to become $80,000. Aitchison said this meant saving for about eight years. He rejected the idea of borrowing from a finance company for the increased deposit as it did not make economic sense. Renee and Matt Wilkinson, both 22, bought their first house - a 1920s bungalow in Otahuhu - in February for $338,000 with an 8 per cent deposit. Renee said under the 20 per cent rule they would have had to borrow money from their parents and would have probably bought their first house in their 30s rather than their 20s. She said she would not borrow from a finance company for a deposit but the thought had crossed her mind when they were looking. She could imagine her peers might do so. - © Fairfax NZ News Conveyancing Website Excerpt: This article was sourced for you by the property lawyers and home transfer specialists at Auckland law firm Quay Law. To contact a property lawyer | conveyancing lawyer. ### Property and Migrants | Immigration This article relation to the property market and immigration was sourced for you by Auckland law firm Quay Law Migrants fuel hot housing market Last updated 20/07/2013 New Zealand is experiencing its biggest gain in net migration for four years, which will put more pressure on already rapidly rising house prices in regions such as Auckland and Christchurch. Some economists warn that rising migration may add to the "hysteria" about house prices in Auckland, while others said people buying homes in Auckland should be aware prices could just as easily drop 10 per cent because they were so over-valued. The BNZ said rising net migration might fuel an "already excited" housing market in some parts of the country, like Auckland. "Is it [stronger migration] a reason for house prices to be that high and keep going up? Probably not but it just comes at a bad time," BNZ senior economist Craig Ebert said. The Reserve Bank had flagged the rising levels of migration in recent months and as the numbers pushed higher, they would come on to the Reserve Bank's radar, Ebert said. "This [migration] may prod the Reserve Bank on interest rates. "It could be the cause for them to move on interest rates, sooner rather than later," he said. Statistics New Zealand figures out yesterday showed that overall, 2300 more people arrived to stay here long-term, than left the country in June alone. That was the highest monthly net gain since mid-2009, before the big Canterbury quake sparked a rush of people leaving for Australia. Rising migration would boost overall spending but would put extra pressure on demand for housing, economists said. TD Securities head of research Annette Beacher said the Reserve Bank should lift official interest rates by the end of the year because of the mounting pressures on houses. If the pace of net migration of the past three months continues for a year, the total would top 23,000, well above the long-run average. Net migration is picking up, with the flood of people leaving for Australia slowing to a steady stream. There has also been a clear pick-up in New Zealanders returning from Australia in the past 18 months. That is because New Zealand's economy is looking better, because of the Christchurch rebuild and high and even rising dairy export prices. In contrast, Australia's economy is cooling down. And because recent Kiwi arrivals in Australia do not qualify for social welfare, they may be choosing to come home if they lose their jobs. The net gain in the past year was almost 8000. MOVING IN Monthly net migration gain in June 2013: 2300, the highest since May 2009 More people are arriving and fewer have left for Australia in the past six months. Seasonally adjusted net loss to Australia: 1600, the smallest level since mid-2010 Year to June Net migration gain of 7900, reversing a net loss of 3200 in the year to June 2012 Annual average for the past decade: 9400. Record annual net gain: 42,500 in 2003 Total arrivals in June year: 88,200 (up 5 per cent from previous year). Total departures: 80,300 (down 8 per cent). Net annual loss to Australia: 31,200 (39,800 a year earlier). In both directions across the Tasman, most migrants are New Zealanders Net annual gain: other countries: Britain: 6300 net gain China: 5200 India: 5100 The Philippines: 2000 Source: Statistics NZ - © Fairfax NZ News Excerpt: New Zealand is experiencing its biggest gain in net migration for four years, which will put more pressure on already rapidly rising house prices in regions such as Auckland and Christchurch. ### Mortgage , loans and the first home buyer Loans door shutting on first-home buyers 16/07/2013 Source : Fairfax NZ : stuff.co.nz and shared by Auckland lawyers and conveyancing staff at Quay Law. One in every two to three first-home buyers could be shut out of the housing market as the Reserve Bank forges ahead with controversial restrictions on home loans. Banking sources say the central bank will announce new rules within the week that will rein in riskier mortgage lending to 12 per cent of new loans. The changes will dramatically reduce the amount of high loan-to-value (LVR) loans that the banks are writing, making it much harder to get a mortgage with a deposit of less than 20 per cent. In theory, the new regime could strip close to $2 billion out of the loan market in a year, equal to more than 4000 homes at average prices. Prime Minister John Key's attempt to pressure the Reserve Bank to "carve out" an exemption for first-home buyers appears to have failed. The sources said tensions between the parties had run high as governor Graeme Wheeler refused to water down the policy tool. "My understanding is that all the efforts of Government to slow them down on the decision have not been successful," they said. Labour's housing spokesman Phil Twyford said Key's "crocodile tears" were not good enough. "The very people that they claimed to be wanting to protect are the victims of this policy." Mr Twyford said prices were spiralling out of the reach of first-home buyers. Lending limits would prevent poorer families becoming homeowners. "It advantages property investors and locks out first-home buyers," he said. Bankers' Association chief executive Kirk Hope said the rules would have "perverse consequences" and lock buyers out of the market. About 70 per cent of first-home buyers got their foot in the door with a deposit of less than 20 per cent, he said. The Reserve Bank, which is committed to financial stability, is worried that as much as 30 per cent of the banks' new mortgage lending is high risk. That is much higher than the historical average of roughly 20 per cent, and could leave home-owners in serious trouble if house prices fall suddenly. Limits on LVRs were announced in the Budget as part of a commitment to housing affordability. However, the policy may have backfired. The new rules will leave the Government scrambling to find other ways to avoid a further squeeze on first-home buyers. Those are expected to include boosting supply, through fast-tracked "greenfields" new developments, and allowing higher thresholds for access to Welcome Home Loans. Ministers are also considering allowing those in KiwiSaver to withdraw more of their savings to use as a deposit. Contact Quay Law Excerpt: One in every two to three first-home buyers could be shut out of the housing market as the Reserve Bank forges ahead with controversial restrictions on home loans. ### Auckland law firm shares leasehold vs freehold property pointers Considering buying a property? Now the question is Leasehold vs Freehold? You've seen a very affordable leasehold property. What are the pros and cons? Leasehold title • Lessee buys the house but not the land. • Lessee rents land from the lessor (ground owner). • Lessee pays regular ground rent. • Conditions sometimes apply for house upkeep. Freehold title • More common than leasehold. • Homeowner owns house and land. • No ongoing obligations to pay any other parties. • Freehold title may become leasehold to provide rental income following sale of the buildings. For further information on leasehold vs freehold property and property conveyancing please contact our lawyers in confidence.   Call your local law firm, Quay Law for legal advice on property law, conveyancing and any other legal services. Our Auckland lawyers can prepare wills and family trusts, property conveyancing for house sale and purchase agreements, relationship property settlements, commercial leasing, company law,  property subdivisions and can assist you with you New Zealand Immigration. [button size='large' style='' text='Contact a Lawyer in Auckland' icon='' icon_color='' link='http://www.lawyerinauckland.co.nz/contacts.html' target='_self' color='#ffffff' hover_color='#ffffff' border_color='' hover_border_color='' background_color='#770000' hover_background_color='#770000' font_style='' font_weight='400' text_align='center' margin='20'] Call Quay Law for legal advice on property law, conveyancing and any other legal services. Our Auckland lawyers can prepare wills and family trusts, conveyancing for house sale and purchase agreements, relationship property settlements, commercial leasing, company law,  property subdivisions and can assist you with you New Zealand Immigration. [button size='large' style='' text='Contact a Lawyer in Auckland' icon='' icon_color='' link='http://www.lawyerinauckland.co.nz/contacts.html' target='_self' color='#ffffff' hover_color='#ffffff' border_color='' hover_border_color='' background_color='#770000' hover_background_color='#770000' font_style='' font_weight='400' text_align='center' margin='20'] Excerpt: Call your local law firm, Quay Law for legal advice on property law, conveyancing and any other legal services. ### New Zealand House Prices | Conveyancing | potential rule changes impact in your deposit Sourced from Fairfax news | 16 July 2013 and brought to you by The conveyancers at Auckland law firm Quay Law. Here's how much you will need to spend for a house around the New Zealand regions and what impact could new lending rules make on your deposit: WELLINGTON Average house price: $525,245 20 per cent deposit: $105,049 KAPITI COAST Average house price: $363,142 20 per cent deposit: $72,628 PORIRUA Average house price: $377,29 20 per cent deposit: $75,458 UPPER HUTT Average house price: $334,336 20 per cent deposit: $66,867 LOWER HUTT Average house price: $367,696 20 per cent deposit: $73,539 TAUPO DISTRICT Average house price: $347,876 20 per cent deposit: $69,575 HASTINGS DISTRICT Average house price: $299,270 20 per cent deposit: $59,854 NAPIER Average house price: $324,102 20 per cent deposit: $64,820 PALMERSTON NORTH Average house price: $285,693 20 per cent deposit: $57,138 MASTERTON DISTRICT Average house price: $237,345 20 per cent deposit: $47,469 - © Fairfax NZ News Quay Law are a legal services and conveyancing law firm based in Auckland, New Zealand. We aim to provide the highest possible level of legal services to our clients and we are proud of the work we perform for our clients and the satisfaction that they express with our services. Wills and Estate Planning | Loans and Mortgage Refinance | Asset Protection and Family Trusts | Conveyancing | Disputes | Family Law | Other legal services. Quay Law Excerpt: Here’s how much you will need to spend for a house around the New Zealand regions and what impact could new lending rules make on your deposit ### Leasehold vs Freehold property | Pros and Cons Source NZ Herald: This article has been sourced for you by the conveyancing team at Auckland Law firm Quay Law | Remuera | New Zealand. 13 July 2013 The owner of a $2.1 million Auckland house has abandoned her property, after leasehold payments skyrocketed from $8,300 a year to more than $70,000. The nightmare over the home on its huge leasehold site at the foot of One Tree Hill went to court but has not yet been resolved. The case has implications for others who own properties on leasehold land. Neighbours expressed horror about the situation, saying they now feared massive increases in ground rent and others abandoning their houses in the desirable, leafy area. In 2005, Young Xin Chen bought 21 Maungakiekie Ave, on the edge of Cornwall Park, for $450,000. But the 1,297sq m site is owned by the Cornwall Park Trust Board, which charges residents ground rents, so she owned only the house, not the land. She bought the property knowing she had to pay ground rent. But just three years later, the board wrote to tell her the rent was rising in accordance with the terms of the lease, which has a 21-year review period. It said that based on the property's valuation, the ground rent would rise from $8,300 a year to $73,750 from March 2009. She baulked at that huge increase and eventually left the home, but now the board is chasing her for almost $350,000. The case went to the High Court at Auckland, where the board asked Associate Judge John Faire to order Ms Young to pay $348,284 for various costs incurred over the debacle. Via her lawyer Jennifer Wickes, Ms Young claimed she never got two letters - sent in December 2008 and March 2009 - outlining the situation and telling her that the ground rent would rise. She continued to pay her original rent and attempted to negotiate with the board over the big increase. In a meeting in August 2011, she tried to get the board to freehold the site or reduce the ground rent. She was unsuccessful, so left the property in November 2011 and is now understood to be living elsewhere in Auckland. The board then tried to sell her house and spent $7,557 marketing and auctioning it. No one wanted to buy the place so the board decided to renovate it and rent it out to generate an income while it sorted out the fight. Renovations cost $167,404, which the board wants to recover from Ms Young, as well as the unpaid ground rent of $173,323.64. The judge refused to award the board the $348,284 it sought, saying there were many different issues to sort out so the case should proceed to trial. There are hundreds of hectares in Auckland under leasehold tenure, which many people have decried. Large parts of Kohimarama, Quay Park, Princes Wharf, the Viaduct and Wynyard Quarter are leasehold. Alistair Helm, a property commentator, said the One Tree Hill case showed the importance of people doing due diligence. There was a reason a multi-million-dollar property sold for less than $500,000, he said. "Something should (have) sent some signals. You are not buying the value of the house. You are buying the right to use the land," Mr Helm said. Joanna Pidgeon of Pidgeon Law said leasehold land was often sold when rents were low. "If people did proper due diligence, they would be advised that when it went to the next rent review, it would increase a lot," she said. "If you're on a fixed income, your income is not necessarily going to cover it." The pros and cons of Leasehold versus Freehold property titles. Leasehold title • Lessee buys house but not the land. • Lessee rents land from the lessor (ground owner). • Lessee pays regular ground rent. • Conditions sometimes apply for house upkeep. Freehold title • More common than leasehold. • Homeowner owns house and land. • No ongoing obligations to pay any other parties. • Freehold title may become leasehold to provide rental income following sale of the buildings.   Contact your Auckland lawyers at Quay Law to find out more about the various forms of property titles and property ownership options. Excerpt: The owner of a $2.1 million Auckland house has abandoned her property, after leasehold payments skyrocketed from $8,300 a year to more than $70,000. ### Auckland Conveyancing and Home Transfer | Call our Property lawyers Auckland property lawyers offering and affordable conveyancing and home transfer legal services. Auckland Conveyancing  or home transfer with Quay Law - Remuera. Whether it's a sale of property; purchase of property, refinancing, mortgages change, transfers to related to parties, subdivisions, cross leases, unit titles or commercial property transaction give our Auckland conveyancing team at Quay Law a call.   PROPERTY LAW | CONVEYANCING  | HOME TRANSFER | 09 5232408 Contact your local law firm, Quay Law for legal advice on property law, conveyancing and any other legal services. Our Auckland lawyers can prepare wills and family trusts, property conveyancing for house sale and purchase agreements, relationship property settlements, commercial leasing, company law,  property subdivisions and can assist you with you New Zealand Immigration. Our Auckland law firm is situated in Remuera | Auckland | New Zealand. [button size='large' style='' text='Contact a Lawyer in Auckland' icon='' icon_color='' link='http://www.lawyerinauckland.co.nz/contacts.html' target='_self' color='#ffffff' hover_color='#ffffff' border_color='' hover_border_color='' background_color='#770000' hover_background_color='#770000' font_style='' font_weight='400' text_align='center' margin='20'] Excerpt: Auckland property lawyers offering and affordable conveyancing and home transfer legal services. ### Family Trusts and Your Trust Deed | Auckland Law Firm Article. Unlike a will, a family trust can protect the ownership of your assets while you are alive.  You transfer the legal ownership of the assets to the trust while continuing to use and enjoy them. When it comes to deciding upon the pros and cons of a family trust, you should considerr the following key questions: 1. Should you have a family trust?   and if yes 2. How is a family trust established, and what is the best way to structure it? 3. What are the on-going administration and management requirements? In our detailed and personalised Quay Law trust presentation, our Auckland lawyers cover these key questions in more detail. A common question raised during these family trust presentations are  - What is a trust deed? The trust deed  is a legal document that sets up the trust and should be drafted to specifically provide for the objectives of the person(s) establishing the trust, the appropriate class of people intended to benefit from the trust assets, the risk these person (s) are hoping to mitigate or protect themselves from and the type of assets that will be held in the trust. The trust deed should deal with the following: It is preferable to have at least one independent trustee. Whether the power to appoint and remove trustees should be held by someone independent of the trust, or not. The class of beneficiaries of the trust should generally be narrow, but the trustees should be able to add more beneficiaries later if required. The trust deed should have two classes of beneficiaries, discretionary beneficiaries and final beneficiaries. The beneficiaries should be able to benefit from the trust assets in a number of different ways so that income or capital can be applied in a way that is best for that person. The trustees should have power to vary the provisions of the trust deed. The area of trust law is complex and changing.  At Auckland law firm Quay Law we recommend that you seek advice from a specialist trust lawyer to ensure your asset structuring and any trust you form provides you with the best possible protection. Contact a Family Trust Specialist to book your 1/2 hour FREE trust presentation FAMILY TRUSTS  | TRUST DEED | TRUST LAWYER | AUCKLAND LAW FIRM | QUAY LAW Excerpt: Unlike a will, a family trust can protect the ownership of your assets while you are alive. You transfer the legal ownership of the assets to the trust while continuing to use and enjoy them. ### New Zealand property - unsold properties at a six year low. Number of unsold properties falls to six-year low - This article is brought to you by the Auckland law firm conveyancing and property law team at Quay Law.  July 1, 2013 - Source NZ Herald The number of unsold properties in New Zealand has fallen to a record six-year low, driven by lack of supply and a winter dip in new listings. New figures from Realestate.co.nz show last month's property shortage was driven by low inventory in all major regions, with Canterbury, Waikato and Central Otago recording all-time lows. The nationwide inventory of unsold properties - a measure of the number of weeks it would take to sell all unsold properties on the market - fell to 25 weeks last month, well below the long-term average of 38.1 weeks. Auckland's inventory recovered slightly from the May's record low of 12 weeks, increasing to 12.3 weeks - though that was still 58 per cent below the long-term average of 29 weeks. There were record lows in several major regions, including Canterbury at 14 weeks, Waikato at 29.6 weeks and Central Otago at 61 weeks. Wellington's inventory fell to 15.4 weeks, the lowest since November 2009. Realestate.co.nz marketing manager Paul McKenzie said the record shortage was not overly surprising, given how fast the market was moving. He said it was "a very heated market'' and supply was the main culprit. "There simply are not enough properties on the market at the moment.'' Mr McKenzie said the traditional winter dip in new listings had also contributed to the record low. Nationwide, the number of new listings in June was down 5 per cent on the same time last year. There were 9082 new listings last month, the lowest June figure in seven years. Mr McKenzie said the number of listings, which followed strong new listings in the previous two months, was surprising. "While we normally see listing numbers fall around this point of the year, the figure is still surprising, especially with the high level of demand from buyers we are currently seeing.'' Asking prices eased slightly last month, with the nationwide average falling to $450,178 - a drop of 1 per cent from the record high seen in May. In Auckland, asking prices fell 1.3 per cent to $623,471, while in Wellington and Canterbury the asking prices rose 1 per cent, to $451,622 and 410,723 respectively. The figures were released in the July Property Report, which is compiled monthly by real estate industry website Realestate.co.nz. Harcourts said that while news listings in Auckland were up a healthy 8.45 per cent on the same time last year, the number of properties available to buy had dropped by 21.82 per cent, showing demand was still vastly outstripping supply. Harcourts had also noticed a decline in inventory, saying Auckland had enough stock to last four months compared with 5.1 months in June last year. "Low supply and high prices will continue to fuel the Auckland market until large numbers of housing developments are completed to cope with out growing population,'' it said in its regional marketwatch. - APNZ Excerpt: The number of unsold properties in New Zealand has fallen to a record six-year low, driven by lack of supply and a winter dip in new listings. ### Our lawyers share | Property to own or not to own? To own property or to rent property .... What do you think is the best option? The article below was sourced for you be the lawyers at Auckland law firm Quay Law. Property ladder: Pay your own mortgage Source: stuff. co.nz 22/06/2013 To buy or not to buy is a question we asked ourselves three and a half years ago. The answer was simple. You have to live somewhere and pay rent so why not pay your own mortgage off? We saved really hard as a family of four, including two young children. We bought a low-priced home out in West Auckland, in a less popular area and we got our foot in the door. It was the best move we ever made. I believe you have to start small, don't be over ambitious or set yourself unachievable goals you will never reach. I knew we could never afford to live in the likes of Mt Eden or Sandringham (where we were renting) and accepted what the budget was once we got our preapproval from the bank. You have to go out of the central city areas in Auckland with a smaller budget. There are many houses for sale in Auckland, but we all can't live in Mt Eden. Home ownership is achievable but people have to sacrifice a few basic things. They need to live within their means and think about tomorrow instead of today and stop living on a credit-infused budget. Work hard to get that first deposit, you don't need a lot with a banks offering low deposit first home options. I laughed the other night seeing a financial advisor on the news for one of the leading banks harping that he felt renting was cheaper than owning and a better option these days, when he admitted he'd never even been a home owner yet. It's a no-brainer to pay your own mortgage instead of someone else's. There are many homes for sale in Auckland, just look everywhere instead of just the city. Excerpt: To own property or to rent property …. What do you think is the best option? The article below was sourced for you be the lawyers at Auckland law firm Quay Law. ### Auckland law firm shares | Your emails and the law An extract fro the Stuff .co.nz today and worthy of sharing on our Auckland law firm blog. Have you ever considered the content of the emails you send from the office? Work emails are the property of the employer. Courts have held that employees don't have a legitimate expectation of privacy in the contents of their work emails, including personal messages sent from a work address. Employers do not have the same rights in regard to communications sent from personal email or social media accounts. However, there are circumstances where it might be in an employee's interests to make such communications available. To contact an Auckland lawyer. Quay Law is an Auckland NZ law firm situated in the inner city suburb of Remuera. Ph: 09 523 0478 Excerpt: An extract fro the Stuff .co.nz today and worthy of sharing on our Auckland law firm blog. Have you ever considered the content of the emails you send from the office? ### Auckland law firm shares | How do I form a family trust? How do I  form a family trust?  Forming a family trust is just one step in a comprehensive, personalised asset protection plan.   It involves the drafting of a range of NZ legal documents, which must all work together, and there is no substitute for professional legal advice on a confidential, one-on-one basis. Remember, the whole idea is to minimise your risk, not add to it! Auckland lawyers at Quay Law |  Our trust legal specialists and lawyers | solicitors can assist you with the setting up and ongoing management of your family trust. Our law firm specializes in the establishment of the trust and thereafter are able to support the ongoing management of your trust along with your trustees. Please contact our Auckland law firm if you have any questions.  We are happy to schedule a personalised trust presentation at your convenience. Excerpt: How do I form a family trust? Forming a family trust is just one step in a comprehensive, personalised asset protection plan. ### Auckland law firm for Conveyancing - Our property specific website Auckland law firm Quay Law are a legal services and conveyancing law firm.     Our lawyers aim to provide the highest possible level of legal services to our clients and our conveyancing team and property lawyers are proud of the work we perform for our clients and the satisfaction that they express with our services. A property lawyer’s basic work is to be involved in securing title over property transactions. At Quay Law, our conveyancers work on transactions regarding property in residential contexts and commercial transactions with variety of different types of property ownership. The types of properties can include residential houses, factories, office space, unit title and cross lease and any other type of property. If you would like to take a look at our conveyancing focused website visit LINK  or to ask us a question contact an Auckland conveyancing specialist at Quay Law. Your Name (required) Your Email (required) Your Contact Day Time Phone Number (required) Subject How can our lawyers assist you? (required) Phone your Auckland law firm  (09) 523-2408. Excerpt: Auckland law firm Quay Law are a legal services and conveyancing law firm. Our lawyers aim to provide the highest possible level of legal services to our clients ### Your team - who should you consult with when purchasing a property? Buying a New Zealand property will probably be the biggest financial investment you’ll ever make and because of this you need to surround yourself with a team of property experts who can help you achieve your financial and other goals. It is important to choose your “Property Team” early on in the property acquisition and purchase process. Property investment is a complex business and your professionals need to be players who are experienced in this field. Your key property team members are: Financier / mortgage broker who can assist you in determining your budget before you start looking for that investment property An experienced and approachable Lawyer with a good understanding of legal issues around the property transfer and conveyancing process. Accountant who has a good understanding of property investment (if you are buying your property as an investment property) A property valuer Real estate agent and / or property finder Property manager (if applicable) It is important to consult with your property team before you buy the property. Find an property lawyer? Your choice of property lawyer is an important decision.  To talk to a legal property expert regarding your property transaction please call the team at Quay Law today. Auckland law firm Excerpt: Buying a New Zealand property will probably be the biggest financial investment you’ll ever make and because of this you need to surround yourself with a team of property ### Auckland law firm | Conveyancing and the Auction Process - what happens if things go wrong? The sale of a property at an auction results in an unconditional contract on the property. It is, however, only a contract and is still required to settle before the purchaser receives any funds in their bank account. What safeguards can a vendor put in place to try and ensure that the contract proceeds to settlement? As with any auction agreement, a deposit should be paid on the fall of the hammer. If this deposit is not paid, this may signify a lack of commitment on behalf of the prospective purchaser to complete the purchase. It is also not prudent to enter into any on-going contractual arrangements (say the purchase of another property) until you have confirmation that the deposit has been paid and you feel comfortable that the purchaser is going to complete the transaction. If you would like to discuss your property transfer and conveyancing transaction with an Auckland lawyer please contact the approachable team at Quay Law. Blog: www.aucklandlawfirm.co.nz Website: http://www.lawyersinauckland.co.nz/ Excerpt: The sale of a property at an auction results in an unconditional contract on the property. It is, however, only a contract ### Guaranteeing a loan | Debt - shared by our Auckland lawyers Article sourced for you by Auckland law firm Quay Law. To contact your lawyer in Auckland. Think before taking on another's debt 22/05/2013 Source: Business Day Being asked to guarantee a loan is like being asked to test out a guillotine. Everything's fine while the blade's safely suspended in the air. But if it starts falling, your neck's on the line. That's iLender chief executive Jeff Royle's explanation of what it means to act as guarantor. With more than 20 years in the mortgage broking business, he's seen too many heads roll when it all goes wrong. You might want to help out a mate or a family member but guaranteeing someone's loan is a huge commitment. If the borrower defaults for any reason, the debt falls squarely upon your shoulders. The usual purpose of a guarantee is to get a mortgage or other loan across the line. Royle tells a classic horror story about a couple who guaranteed their son's first home loan a few years back, secured against their own property. The darling boy turned out to be a delinquent druggie, his mates wrecked the place, and his house had to be sold with money owing. "Of course, the bank then knocked on mum and dad's door, saying you acted as guarantor, we want $60,000," says Royle. "And the bank sold them up." He says these days, the banks are becoming a bit wary about accepting guaranteed loans - which is probably a good thing. But if you're determined to give your offspring a leg up the property ladder, you need to think very carefully about how you do it. TALK IT THROUGH "There's a real problem about financial abuse in this country," says Age Concern chief executive Ann Martin. Older people are sometimes pressured into lending family members their credit card, sharing their pension - or signing a loan guarantee. In theory, it's just a bit of paperwork to reassure the bank. In reality, guarantors can be left destitute when the family home is sold from beneath them. If there's any element of emotional blackmail involved, it can be a pretty ugly situation. Age Concern has social workers available who can provide support for making the tough calls. "It could be just having somebody there that gives you the strength to say 'actually, perhaps you should look somewhere else'," says Martin. But you also need to see a lawyer, she says. LIMIT YOUR LIABILITY Most lawyers worth their salt advise against guaranteeing a loan, and spell out just how dangerous it can be. If you do choose to go ahead, they can help you lower your risk. A lawyer explains that every guarantee document is different, so getting specific legal advice is essential. There are many examples such as a clients who wanted mum and dad to guarantee only their deposit. The bank "tried to pull a swifty" and make it an unlimited guarantee, but after a bit of a dust-up they reached an agreement. You may be able to get a limited guarantee so that you're only liable for a specific sum, plus interest, rather than the total amount borrowed. "That is the type that I often encourage people to bargain for, if they've got the negotiating strength to do so with the bank." The Citizen's Advice Bureau can help you find a lawyer, or you can contact your community law centre. ASK HARD QUESTIONS If someone's asking you to guarantee their loan, it means the lender doesn't think they're a safe enough bet on their own. They might not have a big enough deposit or a great track record with savings, or maybe there are some skeletons lurking in their credit history. So you better find out why they're coming to you. Financial author Sylvia Bowden used to see it all the time when she worked as a budget advisor in Rotorua and Tauranga. "People need to wise up a bit and instead of listening to people's sob stories, they need to think well hang on, there must be a reason for that." It's not just mum and dads helping out their kids, either. Often couples go guarantor or take out a loan in their name because their partner has a poor credit rating. "They think the relationship's forever, and then sometimes the boyfriend or girlfriend moves out and says see you later alligator, and they're stuck with paying off the loan," says Bowden. "That's a real trap - and I've seen that a lot." She reckons guaranteeing a loan for something that will actually lose value - like a car or a stereo - is just plain silly. Apart from anything else, it sets a bad example. "It's teaching your children to borrow for things, instead of save up or just make do with what they've got." Think ahead If you're not careful you can really lose control over the debt you're backing. Mr Q guaranteed a loan for a company of which he was a director. When he later resigned from the role, he assumed he'd ditched the responsibility along with the job. The company got into strife and the bank came knocking at his door to get the money it was owed. Mr Q wasn't even allowed information about how the company had folded, despite being made to cough up for its debts. The bank offered to reduce the amount it needed to discharge the guarantee, but Mr Q was convinced he shouldn't be responsible. The case went to the Banking Ombudsman, who ruled against Mr Q and recommended he accept the offer. GET OFF THE HOOK How long your neck's on the line depends on the agreement you've signed. In some instances banks agree to cancel guarantees, but they've required a two-year window where you're still liable. If your bank won't play ball, Royle suggests refinancing the mortgage once your offspring/cousin/partner has built up enough equity to stand on their own two feet. The new lender hopefully won't require a guarantee, meaning it will die with the old mortgage. Otherwise you may have a shot of getting out of it if the lender didn't explain it properly and provide all the documents, or if the agreement is oppressive. Again, you'd need legal advice. Consider alternatives Royle says he would never guarantee a loan, even for his own flesh-and-blood. "It's too risky," he says. "We all like to try and help the kids, but we just have to be aware of what we're doing, and what impact it could have if it goes wrong." But Royle's no miser - he thinks gifting some cash is often a much better way of helping out. "It's my money - if I want to put up $10,000 or $20,000 or whatever the sum, that's fine, because it can't come back and bite me on the backside." Your cherished 'Dad of the Year!' coffee mug won't look so good when it's relocated to the shelf of a scungy one-bedroom council flat. If the guillotine blade falls, you risk severing your own financial freedom. Whatever you do - don't lose your head. - © Fairfax NZ News Excerpt: Being asked to guarantee a loan is like being asked to test out a guillotine. ### Auckland law firm | Conveyancing According to today's NZ Herald, up to seven annual Auckland incomes would now be needed to buy a property in the city for its median house price.  Property prices for the region have rocketed by 118 per cent in the past 14 years to $504,142 last year, but wages have only gone up 57 per cent to a median of $73,372. Our lawyers at Auckland law firm Quay Law know that buying a residential property is a big step. During the property transfer process it is important to consider what the best form of ownership is for your situation. Our conveyancing lawyers will discuss the various legal options available to you as these will differ depending on if you are buying a rental investment property or a home to live in and on your personal circumstances. It is essential to get professional advice on your structuring options prior to signing your contract for Sale and Purchase of Property Agreement Quay Law prides itself on its “open door” and friendly approach to business. Someone is usually available at short notice to assist you with your particular transaction or problem. We try to provide an approachable, friendly, efficient and professional service and to keep our clients’ best interests in mind. To contact our Auckland law firm please call ph: (09) 523 2408 or contact us. This is our Auckland law firm legal tip of the week. Our legal tips are provided by the Auckland lawyers and conveyancing specialists at Quay Law (New Zealand). These law tips cover a range of legal topics and cover legal matters from estate planning, to wills and estate administration, tax and IRD matters, residential and commercial conveyancing and property law, family trusts. social media law, leasehold properties, commercial leasing, civil litigation, bankruptcy, construction, debt, finance, insurance, leaky buildings, commercial contracts & agreements, commercial property, dispute resolution, employment law, insolvency, matrimonial property, sales & purchases of businesses and sports law. and much more. Although situated in the Auckland suburb of Remuera our lawyers are able to support clients overseas and across New Zealand. To contact our Auckland law firm please call (09) 5232408. Excerpt: According to today’s NZ Herald, up to seven annual Auckland incomes would now be needed to buy a property in the city for its median house price. ### Auckland law firm shares | Conditions in your Agreement for Sale and Purchase. Source : Auckland Property Law Firm  -  Quay Law. A finance condition should not be viewed as an option for being released from an Agreement for Sale and Purchase. Past New Zealand court cases have highlighted this issue and purchasers have found vendors taking them to court for having cancelled an agreement based on non-satisfaction of  a finance condition where the vendor has subsequently found out that the purchaser has purchased another property for the same or even a greater amount. Purchasers should consider the inclusion of a due diligence clause within their agreement, as this would give them the option of legitimately declaring the Agreement to be “at an end”. It is always advisable to ask your Conveyancer / Property lawyer to review your Agreement for Sale and Purchase prior to it being signed by you. Quay Law are a legal services and conveyancing law firm based in Auckland, New Zealand.   We aim to provide the highest possible level of legal services to our clients and our conveyancing team and property lawyers are proud of the work we perform for our clients and the satisfaction that they express with our services. A property lawyer’s basic work is to be involved in securing title over property transactions. Our conveyancers work on transactions regarding property in residential contexts and commercial transactions with all different types of properties. The types of properties can include residential houses, factories, office space, unit tile and cross lease and any other type of property. To contact your Auckland law firm Quay Law. Excerpt: A finance condition should not be viewed as an option for being released from an Agreement for Sale and Purchase. ### Property Conveyancing - What is the difference between a Condition and a Warranty? Ph: (09) 523-2408 Conveyancing: Condition or warranty? Often determining whether something in a property contract is a condition or a warranty can be difficult. As a high level definition:- A condition is when a party to the sale and purchase agreement has to do something by a specific date, failing which the property contract may fall over. A warranty is a promise to do something (but does not always specify the date it must be done by), where failure to do so will result in a breach of contract." Our legal tips do not substitute for legal advice tailored for your circumstance.  The Quay Law, Auckland property lawyers and conveyancing team recommend you discuss you property sale and purchase agreement with a conveyancing specialist prior to signing the legal and binding contract. http://www.lawyerinauckland.co.nz/contacts.html Unlocking your legal solutions with Auckland law firm Quay Law. Excerpt: Often determining whether something in a property contract is a condition or a warranty can be difficult. ### Conveyancing | Signing the Sale and Purchase Property Agreement Source - Your Auckland law firm Quay Law. Signing documents - The Sale and Purchase Agreement for property. A common misconception among vendors, buyers, agents and salespeople when signing a contract for sale and purchase of property is that a person can sign for and on behalf of an absent party. This has legal implications and it advisable to consult with your conveyancing lawyer prior to signing the agreement. It is best practice to obtain a power of attorney  or other appropriate written authority from the absent party to enable  someone else to sign for and on behalf of them. To discuss further please contact our Auckland conveyancing team at Quay Law.  We are an Auckland based law firm. Contact Quay Law. Auckland law firm legal tip of the week.  Our legal tips are provided by the Auckland Lawyers and Conveyancing specialists at Quay Law NZ.  These legal tips cover a range of legal topics and cover all legal matters from estate planning, to wills and estate administration, tax and IRD matters, residential and commercial conveyancing and property law, family trusts. social media law, leasehold properties, commercial Leasing and much more.  Although we are situated in the Auckland suburb of Remuera we are able to support clients overseas and across New Zealand. Excerpt: Signing documents – The Sale and Purchase Agreement for property. A common misconception among vendors, buyers, agents and salespeople when signing a contract for sale ### Auckland and New Zealand property Source: interest .co.nz 9 May 2013 Shared onto the Auckland law firm - Quay Law Blog House prices continued to rise during the three months to April, according to latest figures from QV. The QV figures showed that there was a 1.3% increase in the past three months and 7.1% rise over the past year. Values are now up 4% above the previous market peak of late 2007. QV's operations manager Kerry Stewart said the increase in nationwide values was now being driven by all the main centres, not just Auckland and Canterbury. "The value increases in the other main centres is much slower than in Auckland and Canterbury, but the trend is definitely positive. The provincial centres remain more variable," he said. "Buyers are showing more optimism and confidence, although are still being careful in their decision making. The exception to this is in parts of Auckland where demand is so high that there is little opportunity to delay making offers." Auckland Values across Auckland continued to increase and are now up 12% over the past year. Rodney and old Auckland City still show the slower rates of growth over the past three months in comparison to other areas. Old Auckland City for example has seen a 1.7% increase over the past three months while other areas are increasing by 2-3%. Waitakere has seen the highest increase at 3.4%. Overall, values are still markedly above last year, with North Shore, old Auckland City, Waitakere and Manukau all up around the 12% mark. "With the continued surplus of buyers and lack of properties on the market to meet the demand prices are still increasing. We have seen instances of some properties selling for hundreds of thousands of dollars above their Rating Value,” Stewart said. “As a result, buyers are broadening their property search to areas away from desirable suburbs and looking more at the fringe of the city. Again, this is causing prices to increase rapidly with areas such as Blockhouse Bay and New Lynn achieving prices previously unseen for years,” he said. “Even properties in the higher end of the market, in excess of NZ$4 million, have been selling extremely well lately with over 50 properties sold in this range in the last 12 months.” Hamilton and Tauranga Outside of Auckland, the main cities are still increasing. There is renewed confidence in areas such as Tauranga, where growth has been limited in comparison to other major cities like Auckland and even Hamilton. As a result, Tauranga has grown 1.2% over the past 3 months, with Hamilton seeing only a slight increase on that at 1.7%. Tauranga remains only 0.8% above this time last year however in comparison to Hamilton’s growth of 4.9%. QV Valuer Paul Thomas said: “There is a growing feeling of confidence in Tauranga following a strong month of sales and plenty of interested buyers. There are some indications that Aucklanders’s are moving down to the city to work, something that has been notably absent for the past few years. This may help the market lift even further." QV Valuer Richard Allen reiterated this optimism by saying: “Sales are ticking over well with enough demand in the market. The drought especially doesn’t appear to have had any negative impact at this stage. Hamilton could also reap the benefits of some proposed developments in the dairy industry nearby." Wellington Values in the Wellington area are showing some growth, although not like the other large cities of Auckland and Christchurch. Values are now 2.0% above this time last year with a 0.8% growth in the last 3 months. Within Wellington, Porirua has seen the biggest increase over the last 3 months at 2.2%. QV Valuer Kerry Buckeridge said: "Buyers in the NZ$1-1.5 million bracket as well as first home buyers remain active in the market with attractive, well presented properties attracting multiple offers and selling well. There are quite a few apartments on the market but with insurance increases affecting body corporate fees still, sales aren’t as prolific in many buildings." Christchurch and Dunedin Christchurch values also continue to increase, now 9.4% above last year. The outlying areas such as Waimakariri and Selwyn continue have continued to show slowing growth rates, although are still significantly above last year also at 6.5% and 13.2% respectively. QV Valuer Daryl Taggart said: "Good sales are continuing with buyers seemingly determined to get the house at any price, especially if they have been searching for a while. We are also seeing sales increase in the hill suburbs with stigma perhaps starting to decrease about these areas." Dunedin has also seen another steady increase with it now up 1.1% increase over the past 3 months, and 4.8% up on last year. QV Valuer Tim Gibson said: "The normal winter slowdown hasn’t taken affect yet with sales volumes good. There does appear to be a lack of properties however across most of the market, meaning any well presented properties, especially in sought after locations, are sold quickly and usually with multiple offers." Provincial centres The provincial centres are fluctuating but generally the market remains stable with the main areas continuing to grow. Areas such as Hawke’s Bay and Wairarapa are witnessing some optimism as per other areas of the country but buyers remain cautious and are still taking their time. Even areas like Whangarei, which has previously been declining, have experienced a slight increase of 0.2% over the past three months. Excerpt: House prices continued to rise during the three months to April, according to latest figures from QV. ### Conveyancing - Dating the Agreement for Sale and Purchase of Property Conveyancing - Dating the  Agreement for Sale and Purchase. Our conveyancing lawyers' advice for all parties to a Sale and Purchase Agreement is to always make sure the agreement is dated once it has been signed and initialled by both the purchaser and the vendor. The dating should occur once all initials are completed, and this is especially relevant if there has been an offer and counter-offer situation. For more information regarding your property purchase or sale please contact the Auckland law firm team at Quay Law. Quay Law  is an approachable commercial, trust and property (conveyancing) law firm based in Remuera, Auckland, New Zealand.  The experienced conveyancing staff and lawyers at Quay Law enjoy working with a diverse range of successful companies and private clients.  Our approachable lawyers offer legal services such as conveyancing, leasing, family trusts, wills, asset protection, tax matters and more.  http://www.lawyerinauckland.co.nz Excerpt: Our conveyancing lawyers’ advice for all parties to a Sale and Purchase Agreement is to always make sure the agreement is dated once it has been signed ### How to Contest a Will? Contesting a Will? Shared by the approachable lawyers at Auckland law firm Quay Law. Ph 09 523 2408. By general definition, a will contest, in the law of property, is a formal objection raised against the validity of a will, based on the contention that the will does not reflect the actual intent of the testator (the party who made the will). As a starting point there are usually a few common legal grounds used to challenge a will. Family Protection Act Claim: This is where close relatives of the deceased can challenge a will if they consider that the will-maker had a moral duty to have made greater provision for them in their last will and testament. Testamentary Promises Act Claim: This is where someone claims that they had provided significant services to the deceased, relying on a promise that they would be rewarded in the last will and testament. Property Relationship Act Claim: In this situation a surviving partner/spouse has to decide whether to accept the provision made for them under the deceased's last will and testament or challenge the will in the New Zealand court. The legal documents typically associated with this type of claim are: contracting out agreements, family trusts, LAQCs and other legal structures set in place during the deceased's life. Whilst claims typically fall into the areas or categories above, let us take a moment to reflect on the more common causes of disputes over an estate or a will: - 1. There is no will at all; 2. The final will is invalid; 3. A party believes the will is grossly unfair; or 4. The final will is contradictory to our New Zealand legislation. As the elements and situational facts, involved with the contesting of a will are varied and each situation is unique we recommend that you take professional legal advice prior to making any such challenge. Our approachable Auckland lawyers are able to assist you and guide you in this process . For more information please contact your Auckland law firm Quay Law. Excerpt: By general definition, a will contest, in the law of property, is a formal objection raised against the validity of a will, based on the contention that the will does not reflect the actual intent of the testator (the party who made the will). ### Auckland law firm - Quay Law When you're making key decisions about your business, your assets, or your future direction –  our experienced lawyers will act as your trusted legal adviser. We also update our news and legal blog regularly focusing  on sharing law related tips and suggestions.  Please visit our Auckland law firm blog for regular updates and recent articles. Contact us Please connect with us on Facebook to receive our weekly legal update.  Our legal tips are provided by the Auckland lawyers and conveyancing specialists at Quay Law (New Zealand). These legal tips cover a range of legal topics and cover legal matters from estate planning, to wills and estate administration, tax and IRD matters, residential and commercial conveyancing and property law, family trusts. social media law, leasehold properties, commercial leasing, civil litigation, bankruptcy, construction, debt, finance, insurance, leaky buildings, commercial contracts & agreements, commercial property, dispute resolution, employment law, insolvency, matrimonial property, sales & purchases of businesses and sports law. and much more. Although situated in the Auckland suburb of Remuera our lawyers are able to support clients overseas and across New Zealand. To contact our Auckland law firm please call (09) 5232408. Excerpt: When you’re making key decisions about your business, your assets, or your future direction – our experienced lawyers will act as your trusted legal adviser. ### Conveyancing insight shared by your Auckland Property Lawyers So, you are looking to buy a house. Our Quay Law team understand that buying a house can be very exciting, but can also be stressful. The search process in itself can be frustrating with a lot of competition for good houses. This is where our Property Lawyers come in. We hope to give you an advantage over other buyers and our top priority is to make sure that the process is as smooth and stress-free as possible for you.  In the current property market, buying a property at an auction or on a tender is the norm. Conveyancing Insight by our Auckland Property Lawyers Our Auckland property lawyers at Auckland law firm Quay law are able to review the legal documents for you. It is extremely important to remember that once you have signed the agreement, a legally binding contract comes into force with the ensuing legal obligations. Our conveyancing legal team will review the property title, the particulars and conditions of sale and, if provided, the LIM. A charge shall apply for this review. If you are successful in purchasing the property and you elect to use our legal services for your property transaction, we will credit this amount against your conveyancing or property transfer fee.  For more information or to discuss your property law or conveyancing requirements please [button size='large' style='' text='Contact our Auckland Property Lawyers.' icon='' icon_color='' link='http://www.lawyerinauckland.co.nz/contacts.html' target='_self' color='#ffffff' hover_color='#ffffff' border_color='' hover_border_color='' background_color='#770000' hover_background_color='#770000' font_style='' font_weight='400' text_align='center' margin='20'] Excerpt: So, you are looking to buy a house. Our Quay Law team understand that buying a house can be very exciting, but can also be stressful. ### Trusts - The Administering of a Trust. Administering a Trust Shared by the team at Auckland law firm - Quay Law NZ Why do you need your trust to be properly administered and how do you do just that? Once your trust has been established it is very important that it is administered correctly. Your trust was established with the objective of separating ownership of your family’s assets from you personally. As Trustees you can go a long way to avoiding a successful sham Trust allegation being made out if you undertake an Annual General Meeting. During this meeting a schedule of assets and liabilities of the Trust should be completely analysed.  The needs of the beneficiaries of the trust should be reviewed and should any maintenance be required on any of the Trust assets, these should be listed along with who will be instructed to carry out such a maintenance program.  But most importantly, this meeting should be minuted with a copy of the minutes dated and signed by all Trustees.  The trust should meet its income tax obligations such as filing a tax return if the trust receives any income Who could bring about such a challenge?  Such a challenge could be made by a business creditor, relationship partner, the IRD or Work and Income New Zealand. If such a challenge is successful then the trust assets could be treated as your own personal assets and the benefits available through the trust structure will be lost. To call Auckland law firm Quay Law to arrange your Annual General Meeting for your Trust or for general Trust and Family Trust advice. (09- 5232408) The legal tips are provided by the Auckland lawyers and conveyancing specialists at Quay Law NZ. These law tips cover a range of legal topics and cover all legal matters from estate planning, to wills and estate administration, tax and IRD matters, residential and commercial conveyancing and property law, family trusts. social media law, leasehold properties, commercial leasing and much more. Although the law firm is situated in the Auckland suburb of Remuera  we are able to support clients overseas and across New Zealand.   Your approachable Auckland law firm. Excerpt: Once your trust has been established it is very important that it is administered correctly. Your trust was established with the objective ### New Zealanders still crave slice of suburbia Shared by the lawyers at Auckland Law firm Quay Law. Source: herald.co.nz. April 2013 The "suburban dream" of living in a standalone home is still alive and well - a finding that could harm Auckland Council's push for more terraced housing. As the council looks at how to deal with the city's growing population and housing crisis under the Unitary Plan, a study it commissioned on current housing intensification could be damning. Residents from medium density developments in three city suburbs were interviewed about their living conditions as part of Auckland University's Future Intensive: Insights for Auckland Housing. Most of the 84 participating households said their way of living was just temporary and for affordability reasons. "The aspiration of living in detached suburban housing remains strong for both New Zealand-born and new New Zealanders," the report said. "The aspiration for suburbia, no matter how unrealistic, is a barrier to the promotion of a compact city that needs to be better understood. "We need to better understand what the necessary trade-offs are between the suburban lifestyle, whether affordable or not, and the urban lifestyle envisaged for a majority of future Aucklanders." It added: "If living in these newer developments is viewed by residents as a transitory stage in their lives, then there are implications for developing the vibrant, liveable, community-orientated local environments promoted in the plan." Many of the residents still remained car dependent and public transport was being under-used. Body corporate issues were also problematic with functions not well understood by a large proportion of residents. Generally, residents were satisfied with their living arrangements - most said the housing offered a sense of security and they were pleased with the proximity to shops, schools, work and other facilities. Auckland has a deficit of 20,000 to 30,000 houses and needs to average 13,000 new homes a year for the next 30 years to cope with the growing population. Under the Unitary Plan, 56 per cent of Auckland land - from Orewa in the north to Pukekohe in the south and most suburbs in between - is earmarked for "intensification", under which building density will be increased. The council's chief planning officer, Roger Blakeley, told the Herald the plan still allowed for people wanting to live in standalone homes, and the council was dedicated to giving Aucklanders a "greater flexibility of choice" whether they were looking for a townhouse, apartment or detached home. When asked about whether attitudes needed to change towards medium density housing, he said: "Different people have different experiences and attitudes. "In some people's minds, they judge apartment living by the poor examples around Auckland ... we are keen to see high-quality exemplars that will help change people's minds." Mayor Len Brown said one in four Aucklanders already lived in apartments or terraced housing and that demand was growing. "Aucklanders are clear they want more housing choice not less as our city grows." Real Estate Institute chief executive Helen O'Sullivan said leaky buildings had steered people away from developments. "It is still very much the Kiwi dream ... you've got your own yard, it has a fence. You can have a dog and a cat and a sandpit. There are different stages in life where that sort of thing is less appealing." Downsizing suits couple Howard and Sherrill Dickie left their big backyard and swimming pool in Blockhouse Bay for an attached townhouse and haven't looked back. The retired couple, both in their 70s, wanted to downsize after their three children left home, so they invested in the Tuscany Towers development on Ambrico Place in New Lynn. They wanted to stay in the area to look after their respective widowed mothers. "We love the convenience of it, and the fact you can take a holiday and you don't have to worry about a thing - everything is secure," Mrs Dickie said. The three-bedroom home still has enough room for the couple's grandchildren to stay over. "I love hearing the children's laughter," Mrs Dickie said. "A wide range of people live here." But neighbour Bronwyn Harema would rather live in a standalone home. The medical typist, who works from home, purchased her three-bedroom townhouse six years ago for $272,000. "It's what I could afford at the time ... let me put it this way, if I won Lotto tomorrow, I'd be somewhere else." Model housing The Future Intensive: Insights for Auckland Housing report commissioned by Auckland Council looked at the following medium density housing developments: New Lynn: 293 units in nine separate developments known collectively as Ambrico Place, with an average density of 57 units per hectare, within walking distance of what is designated as a "metropolitan centre" in the Auckland Plan. Albany: Two developments, referred to as The Ridge and Masons, totalling 169 units, with an average density of 67 units per hectare, within walking distance of what is designated as an "emergent metropolitan centre" in the Auckland Plan. Onehunga: Single development, The Atrium on Main, with 112 units with an average net density of 64 units per hectare, within walking distance of what is designated as a "town centre" in the Auckland Plan. Excerpt: The “suburban dream” of living in a standalone home is still alive and well – a finding that could harm Auckland Council’s push for more terraced housing. ### Refinancing Refinancing is when you apply for a new home loan to replace your existing one. Are you in the process of, or considering, refinancing your existing home loan.  If so there are various legal requirements that need to be dealt with and it is best to involve your property lawyer from the outset. To discuss further with our Auckland law firm conveyancing and refinancing lawyers please contact our property law team at Quay Law . Excerpt: Refinancing is when you apply for a new home loan to replace your existing one. ### Estate Administration Shared by the Auckland law firm team at Quay Law. Estate Administration is the process of carrying out a person's wishes as set out in their Last Will and Testament. It is ensuring their assets are transferred to beneficiaries as smoothly and efficiently as possible. In simple cases it may take just a few weeks to settle everything after Court approval, or longer if there are assets to sell, or any legal or family issues. For more information on your particular estate administration requirements contact the lawyers at Quay Law Barrister and Solicitors in Auckland. www.yourwill.co.nz Phone: +64 9 5232408 Contact Us Excerpt: Estate Administration is the process of carrying out a person’s wishes as set out in their Last Will and Testament. ### Conveyancing and your home transfer process Conveyancing is the term used to describe the legal work required to transfer the ownership of real estate from one person or entity to another. As discussed in previous updates, a contract for sale and purchase  is a legally binding document and (in general) you cannot simply change your mind once a contract is signed unless there are special conditions.  It is advisable to consult with your property lawyer prior to signing the agreement however it should be noted that on the fall of the hammer at a property auction the agreement becomes an unconditional legal agreement. Approaching  your experienced lawyer and conveyancer for legal advice before signing any documentation is the best way to ensure that your interests are protected.  Please see our lawyer's article on the conveyancing and property transfer process for some general property transfer and conveyancing information. Our lawyers and conveyancers are able to meet the demand for approachable and affordable legal advice in the areas of Property Law, Commercial Law, Trusts, Wills and other legal services. For more focused information and to contact our Auckland law firm team for a no obligation discussion please call Quay Law on Ph (09) 5232408. Excerpt: Conveyancing is the term used to describe the legal work required to transfer the ownership of real estate from one person or entity to another. ### Auckland Property Source: NZ Herald - April 2013 The nationwide average house price is expected to rise 8.6 per cent by the end of the year, with Auckland's average jumping 12 per cent, putting it close to $600,000. Auckland house prices are predicted to rise a further 12 per cent over the next year, with the nationwide average jumping almost $40,000 by the end of the year. And economists say there isn't an end in sight, with panicking buyers and huge housing shortages continuing to drive the prices up. Average nationwide prices are now 3.2 per cent above their 2007 peak level, according to a report compiled by Crockers Property and analyst company Infometrics. The nationwide average house price is expected to rise 8.6 per cent by the end of the year, with Auckland's average jumping 12 per cent, putting it close to $600,000. The Bank of New Zealand's chief economist, Tony Alexander, said the report's predictions were in line with other estimates. The rise is being mostly driven by domestic factors. "The biggest driving factor now is that people are accepting there is a housing shortage and that means there's a lot of 'catch-up buying' in the market at the moment, Auckland in particular." Mr Alexander said during the global financial crisis, a lot of people held off buying a house and have been doing so since because they expected prices to fall. "Now you've got four years' worth of young buyers stacked on top of each other all trying to scramble into the market. You've got investors thinking prices will fall before they made another purchase ... and now they also are catching up on purchases they might have made from 2009. "So you've got two groups, the first-home buyers and the investors, just scrambling to catch up." Combined with the housing shortages and low interest rates, these factors have pushed Auckland prices to 31 per cent and Christchurch's 29 per cent ahead of their 2009 low, Mr Alexander said. He expected house prices to continue to rise at a similar pace for the next three years. "We need to build 13,000 houses a year [in Auckland], but there's nil and Buckley's chance of doing that. There's a long, long way to go before they even get to half of the required level and as the shortage gets worse, the prices go up." The Herald understands there are discussions being held about terms of reference between Auckland Council and the government working party established to tackle the city's housing crisis. Last month, Housing Minister Nick Smith and Auckland Mayor Len Brown emerged from an hour-long meeting after disagreeing on a council solution to give legal effect to a new planning rulebook to free up land for new homes from September. Mr Alexander said there was no way Auckland could meet its housing needs because it wasn't "physically possible for Auckland" to build 13,000 houses a year and the Christchurch rebuild would create labour shortages. "The only thing that will stop the housing [cycle] is interest rates getting pushed to aggressively high levels and that isn't going to happen for quite some time." The house-price growth meant first-home buyers would have to reassess expectations and needed to realise they'd have larger mortgages and source family and friends for their deposits, Mr Alexander said. They would also need to look at suburbs further away from the city centre and look at joint-purchasing with someone else or consider an inner-city apartment instead of a house. The director of Massey University's Centre for Banking Studies, David Tripe, said the interesting question about the housing crisis was whether it meant there should be Reserve Bank intervention and what that might involve. "The problem there is that it's very hard to design a policy that impacts on Auckland only and that doesn't impact on the rest of the country," Dr Tripe said. "It would be nice to say, 'This is an awful social problem that has serious implications if we don't stop it', but in practical terms it's not going to be quite as easy as that." Excerpt: The nationwide average house price is expected to rise 8.6 per cent by the end of the year, with Auckland’s average jumping 12 per cent, putting it close to $600,000. ### Conveyancing with Quay Law | Auckland Conveyancing with Quay Law. Auckland law firm Quay Law are a legal services and conveyancing law firm based in Auckland, New Zealand.   Our conveyancers aim to provide the highest possible level of legal services to our clients and we are proud of the work we perform for our clients and the satisfaction that they express with our services. A conveyancers  (property lawyer’s) basic work is to be involved in securing title over property transactions. During the property transfer process, our conveyancer's work on the transfer of title whether this be for  residential or commercial transactions.  Often there is mortgage finance or refinancing  involved with the property transaction. The types of properties can include residential houses, factories, office space, unit tile and cross lease and any other type of property. Quay Law and the property law team is a law firm based in Remuera,  Auckland. Our conveyancers and lawyers specialises in providing legal services for mortgage refinancing, conveyancing and property transactions. Our Auckland law firm also provides legal services for a range of other legal work.  Contact Quay Law Excerpt: Auckland law firm Quay Law are a legal services and conveyancing law firm based in Auckland, New Zealand. ### Auckland law firm | Conveyancing and associated considerations. Welcome to our Auckland law firm - legal blog. Conveyancing and associated considerations. Before you sign any contract for the purchase or sale of property, what should you consider? Below you will find a list of some of the considerations.   Please be aware that each personal situation is very different and you should consult with one of our Auckland conveyancers regarding your particular circumstances. 1.  The  type of ownership that best suits your particular situation.  Could a  family trust be of benefit to you? 2.  You will also need to  consider your payment |settlement arrangements. E.g. are you refinancing  or are you taking out a mortgage? 3. As per some of our earlier updates, a property transaction process can also be an opportune time to consider the updating of your wills,  your relationship agreements and powers of attorney. 4.  When buying a property, you may find our article on Conveyancing of interest to you. This tip shared with you by the Auckland law firm | Quay Law.  Our lawyers providing practical, effective legal advice to Aucklanders.  To contact your lawyers in Auckland. Excerpt: Before you sign any contract for the purchase or sale of property, what should you consider? Below you will find a list of some of the considerations. ### Auckland Law Firm Easter bring Fun, Easter bring Happiness, Easter bring Endless Blessings, Easter bring fresh love... Happy Easter to You with all best wishes ..... From your Auckland Law firm Quay Law Our approachable Auckland-based lawyers deliver prompt and practical advice, at competitive rates. Ph 09 5232408 Excerpt: Easter bring Fun, Easter bring Happiness, Easter bring Endless Blessings, Easter bring fresh love… Happy Easter to You ### Property Lawyer Peace of mind comes with a Property Lawyer For trusts, wills, buying or selling a property, leases, or anything property related see the team at Quay Law or visit to http://www.lawyerinauckland.co.nz/contacts.html Excerpt: For trusts, wills, buying or selling a property, leases, or anything property related see the team at Quay Law ### Property Law FAQ - what is an encumbrance? What is an encumbrance? An encumbrance is a restriction or limitation on the Certificate of Title, which may or may not be able to be removed. Encumbrances include mortgages, changes, easements and covenants. Some encumbrances may benefit the property. For more information on the conveyancing process or if you have any particular property law query, please contact a lawyer at Auckland law firm- Quay Law. Excerpt: An encumbrance is a restriction or limitation on the Certificate of Title, which may or may not be able to be removed. ### Property Transfer Property Transfer Auckland. Please give us a call. Our team of conveyancing staff are specialists In property transfers and all related property transactions. So if you are buying or selling a house Quay Law offers you fast, efficient and friendly service for you property transfer . To talk to our Auckland property transfer team. Excerpt: Our team of conveyancing staff are specialists In property transfers and all related property transactions. ### How do I retire as a trustee on a Trust? The resignation of a Trustee on a Family Trust. One would need to review the Trust Deed in the first instance. As a  general response to this question, retiring as a trustee on a Trust should be done formally and a Deed of Retirement should be signed. To contact an Auckland Trust Lawyer to discuss further. This is an Auckland law firm legal tip of the week. Legal tips are provided by the Auckland Lawyers and Conveyancing specialists at Quay Law NZ. These legal tips cover a range of legal topics and cover all legal matters from estate planning, to wills and estate administration, tax and IRD matters, residential and commercial conveyancing and property law, family trusts.social media law, leasehold properties, commercial leasing and much more. Although situated in the Auckland suburb of Remuera we are able to support overseas clients and across offer our services New Zealand wide. Excerpt: One would need to review the Trust Deed in the first instance. As a general response to this question ### Buying or Selling a Property in New Zealand With off shore clients, our property lawyers are often asked: Do I need a lawyer/conveyancer situated in New Zealand to act for me if I am buying and selling property? The answer is :- Yes you do. A property lawyer / solicitor not only protects your own interests, they also ensure that financiers ( lenders) interest are protected by either registering the mortgage against the property title or releasing it and repaying the amount you owe back to the bank. If you would like to discuss your property transfer process with a property lawyer please contact Auckland law firm Quay Law . Excerpt: With off shore clients, our property lawyers are often asked: Do I need a lawyer/conveyancer situated in New Zealand to act for me if I am buying and selling property? ### What is a property transfer? A property transfer occurs when money or the ownership title on a piece of property, such as a house or parcel of land, changes hands. Our Quay Law conveyancing lawyers can assist you with your property transfer.  We will advise and help you before you buy the property and then give you down to earth and reliable legal services to make sure your house purchase or  sale goes smoothly. Our property lawyers will explain how to avoid the common mistakes.  Our conveyancers know that not all property transactions and transfers are the same.  Buying an apartment is different to buying a cross lease section or buying a unit title dwelling is different to buying a residential home.  Your purchasing legal options can vary as well based on your unique circumstance.  Do your require a trust or should you purchase a property using a company as a legal vehicle or entity. Our Auckland conveyancing team  will take care of the detail of your property sale or purchase and give you legal advice that is easy to understand. To contact an approachable conveyancing lawyer. Excerpt: A property transfer occurs when money or the ownership title on a piece of property, such as a house or parcel of land, changes hands. ### REINZ or QV | New Zealand Property Values Source stuff.co. nz At the end of each month, real estate agencies send REINZ the details of all the property sales they handled that became unconditional during the month. REINZ then collates the information and usually releases it within a couple of weeks. That means its monthly property market report is based on sales information that is usually no more than six weeks old when it is released and will include price information that is less than two weeks old, making it timely. Quotable Value uses information sent to it after a property sale has been settled. Solicitors doing conveyancing work have a legal obligation to forward QV the details of property sales once settlement has taken place. This is fed into a database that local councils use to update their rating valuation rolls. So QV may not receive its sales information for a couple of months or more after a sales contract becomes unconditional, depending on how long the settlement period was and how promptly the lawyer forwarded the information. That inevitably leads to a debate among market commentators about which set of information is best, QV's or REINZ's. What are your thought? Excerpt: At the end of each month, real estate agencies send REINZ the details of all the property sales they handled that became unconditional during the month. ### Earthquake in Auckland felt by most Aucklanders Source: stuff.co.nz Aucklanders have felt the brunt of two rare localised earthquakes this afternoon. The first was a 3.7 magnitude 65km northeast of Auckland at 4pm which was 23km deep. The second, five minutes later, was a magnitude four and was just 6km deep. It was centred 15km east of Auckland putting under Motutapu Island, near Rangitoto Island, in Auckland's Hauraki Gulf. Both were considered "moderate" by Geonet. So far, the quakes had only triggered fire alarms, but they were felt from Waiheke Island to Rodney district north of Auckland. Even the Dotcom mansion, the home of internet millionaire Kim Dotcom was affected. "Dotcom Mansion is shaking. Small #earthquake. Two in a row. No kidding. Not my fault. I'm in bed," he tweeted. Art commentator Hamish Keith said he had lived in Auckland since 1958 and it was the "first time I have felt a quake." Fire Service northern communications shift commander Jarron Phillips said they had fielded quite a few calls from panicked people but as of yet no reports of damage. He said fire officers simply made people aware of what was going on and how to best handle any future disruptions. A St Johns spokesperson said they had received no calls to do with injuries resulting from the quakes. Two years ago Aucklanders felt a 2.7 magnitude quake but you have to delve into the history books to find anything significant. In 1835 South Auckland was struck by a magnitude 7 quake and then 50 years later another quake 6.2 struck in a similar area. - © Fairfax NZ News Excerpt: Aucklanders have felt the brunt of two rare localised earthquakes this afternoon. ### Buying your first home? Trust Tip: Set up a trust early – ideally when you buy your first home. This way you can increase the trusts wealth over time and wont have as much gifting to do. Excerpt: Set up a trust early – ideally when you buy your first home. This way you can increase the trusts wealth over time and wont have as much gifting to do. ### Million-plus boom drives property market | Auckland Source: stuff Nearly 300 homes sold for $1 million or more last month, but it is the middle to lower end of the market where activity is the most frenetic according to the Real Estate Institute of New Zealand. REINZ figures for February show that 295 homes sold for $1 million or more in February, with 92 of those selling for $1.5m or above. That's a 47 per cent increase on February last year when 201 homes sold for $1m or more. That meant there were six suburbs, all of them in Auckland, where the median selling price was above $1m in February: Herne Bay, $1.685m; Remuera, $1.244m; Freemans Bay, $1.1m; Ponsonby, $1.08m; Castor Bay, $1.075m; and Mellons Bay $1.058m. The median price is the price that would be the middle price if all prices were listed from highest to lowest. The REINZ's median prices are for sales contracts that become unconditional each month, providing a good indication of the latest market activity. REINZ chief executive Helen O'Sullivan said a $1m median price was a significant threshold for any suburb because it would mean that half the sales made during the month would have been at prices above the median However, though the top of the market remained buoyant, it was the middle-priced suburbs that were facing the greatest upwards price pressure, particularly in Auckland, O'Sullivan said. This was a result of potential buyers being squeezed out of the top suburbs and forced to look for homes in cheaper surrounding suburbs, she said. If the median prices in the top suburbs had risen from say $800,000 to $1m over a couple of years, there would be a large proportion of buyers who would still like to live there but could no longer afford to. They would be forced to lower their sights and look to suburbs where prices still were affordable for them. But the influx of new buyers into these lower-priced suburbs then started pushing up prices there as well, causing a chain reaction, as many more potential buyers are forced to look even further afield at suburbs on the next rung down the property ladder. In Auckland, where price pressures are greatest because of its growing population, some of the biggest price gains are occurring in suburbs that were once considered to be at the more affordable end of the scale. In Westmere, which borders the country's most expensive suburb of Herne Bay, the median price was $992,500 in February, up from $812,500 in February last year. The same effect can be seen a little further out in Sandringham, where the median price has climbed from $589,000 in February last year to $820,500 last month. Even further out in Waterview, which was once definitely considered a working class suburb, the median price has shot up from $463,500 in February last year to $588,000 last month. Outside Auckland, it is a lot easier to buy into the most expensive suburbs in most cities. The REINZ and Fairfax Media (publisher of the Sunday Star-Times) have joined forces to provide the "REINZ/Fairfax Media Housing Market Report". This lists the median selling prices for most suburbs and towns throughout New Zealand from Kaitaia to Te Anau. It shows that the Wellington suburb with highest median price in February was Seatoun at $916,000. In Christchurch it was Northwood at $784,250,and in Dunedin it was Waverley at $470,250. - © Fairfax NZ News This property article is brought to you by the team at Conveyancing team at Quay Law. Our Auckland law firm provide legal services you can trust. Real Estate, Trusts, Estate Planning and Administration, Business Sales and Purchases, Family Law, Commercial Property Law. www.theconveyancing.co.nz Excerpt: Nearly 300 homes sold for $1 million or more last month, but it is the middle to lower end of the market where activity is the most frenetic according to the Real Estate Institute of New Zealand. ### Selling your property - have you done your due diligence? Code of Compliance Certificate The code compliance certificate provisions under the Act came into force on 31 March 2005. A code compliance certificate is a formal statement issued under section 95 of the Act, that building work carried out under a building consent complies with that building consent. If you do not obtain a CCC then you may have trouble selling when it comes to selling your house. It is deemed that the work has not been authorized and in certain cases the council may require extreme remedial action. Prior to listing your house for sale ensure you have completed your due diligence. Not only will this planning ensure a smooth property sale process but it will also assist you in achieving the best sale price for your asset. This property law legal tip is brought to you by the team at Quay Law. Our Auckland law firm provide legal services you can trust. Real Estate, Trusts, Estate Planning and Administration, Business Sales and Purchases, Family Law, Commercial Property Law. To talk to a solicitor please contact us. Excerpt: The code compliance certificate provisions under the Act came into force on 31 March 2005. ### Refinancing your existing home loan? Are you in the process of, or considering, refinancing your existing home loan.  If so there are various legal requirements that need to be dealt with and it is best to involve your property lawyer from the outset. To discuss further with our Auckland conveyancing and refinancing lawyers please contact our Quay Law legal team. This legal tip is shared with you by the team at Auckland law firm - Quay Law. These regular legal tips cover a range of legal topics.  We discuss all legal matters from estate planning, to wills and estate administration, tax and IRD (Inland Revenue Department) matters, residential and commercial conveyancing and property law, family trusts. social media law, leasehold properties, commercial leasing and much more. Although situated in the Auckland suburb of Remuera we are able to support clients overseas and across New Zealand. Excerpt: Are you in the process of, or considering, refinancing your existing home loan. If so there are various legal requirements that need to be dealt with and it is best to involve your property lawyer from the outset. ### How do I form a Family Trust? A question often answered by our solicitors and barristers Forming a family trust is just one step in a comprehensive, personalised asset protection plan. For the lay person this is not the sort of plan that you can come up with on your own. It involves the drafting of a range of New Zealand legal documents, which must all work together, and there is no substitute for professional legal advice on a confidential, one-on-one basis. Remember, the whole idea is to minimise risk, not add to it At Quay Law NZ our Trust legal specialists and lawyers | solicitors and barristers can assist you with the setting up and ongoing management of your Trust. We specialize in the establishment of the Trust and thereafter are able to support the ongoing management of your Trust along with your Trustees. To  Contact our Quay Law | Solicitors and Barristers Excerpt: Forming a family trust is just one step in a comprehensive, personalised asset protection plan. For the lay person this is not the sort of plan that you can come up with on your own. ### New Zealand Immediate Skills Shortage List - Immigration Source: New Zealand Immigration. The Essential Skills in Demand (ESID) Lists help to ensure New Zealand’s skills needs are met by facilitating the entry of appropriately skilled migrants to fill identified skill shortages. Below please find the details of the the Immediate Skill-shortage List as at February 2013 If you meet the skill requirements on these lists then New Zealand Immigration Services will accept that no New Zealanders are available for the position(s). To consult with an immigration lawyer or solicitor regarding New Zealand Immigration, please contact an advisor at Quay Law. Excerpt: The Essential Skills in Demand (ESID) Lists help to ensure New Zealand’s skills needs are met by facilitating the entry of appropriately skilled migrants to fill identified skill shortages. ### IRD to Tighten Rules on Student Loans IRD to Tighten Rules on Student Loans (Published in New Zealand Taxation) The Student Loan scheme is set to change, with stricter rules being implemented on borrowers, especially those who travel overseas for extend periods of time. On March 13th Parliament received a report from the New Zealand Finance and Expenditure Committee on the upcoming Student Loan Scheme Amendment Bill. The newly published report contains a summary of the major changes that will be implemented in the bill, along with responses to public submissions that were made regarding the national student loan scheme and potential changes to the system. According to the report, one of the biggest changes brought in by the new bill will be the exclusion of loses from the calculation of incomes for student loan repayments, which will increase personal responsibility for debt repayment and maximize the amount of payments of loans. The new Bill will also bring in rules mandating that all new student loan applications must nominate a third party to be responsible for maintaining up to date contact details of the borrower, and providing the information to Study Link upon request. The new regulations will allow the Inland Revenue Department to receive and use the contact details of the nominated person, when trying to reach a student loan holder who has left New Zealand. The repayment holiday currently available to borrowers who travel overseas will be reduced from three years to one year. Anyone applying for the repayment break will be required to provide details of a New Zealand based contact person in order to be granted the holiday. The new report also contained several questions that were raised by the public regarding the Student Loan amendments, however, the Committee did not recommend changes to the Bill following the raised concerns. Excerpt: The Student Loan scheme is set to change, with stricter rules being implemented on borrowers, especially those who travel overseas for extend periods of time. ### Drought for some areas South of the Auckland Harbour Bridge Shared by the Auckland lawyers -@ Quay Law. Community news. Auckland Council to monitor drought situation 27/02/2013 The Minister of Primary Industries Nathan Guy has today officially declared a state of drought for rural areas north of the Auckland Harbour Bridge, with other regions likely to soon follow. It is a declaration of a medium-scale event which means that extra Government funding will now be available for farmers in severe hardship. “This drought decision has been made after receiving advice from the Ministry for Primary Industries, including soil moisture data from NIWA, and in consultation with the local community,” says Nathan Guy. Auckland Council would like to assure rural communities that it acknowledges the hardships of farmers and will work with the relevant Rural Support Trusts and agencies to support recovery measures. “We are continuing to monitor the situation with our neighbouring regional councils and will update Auckland on any changes if the need arises,” says Clive Manley Manager Civil Defence Emergency Management. However, Aucklanders are urged not to hit the panic button and rush out to purchase and store water. “I would like to make it clear that Aucklanders in suburban areas on a public water supply do not need to be worried about water shortage. The focus here is only on the agricultural community.” says Mr Manley. If you are a farmer in area north of the Auckland Harbour Bridge and require assistance, there is support available from Government agencies such as the IRD and standard assistance is available from the Ministry of Social Development. Please share for community news. Excerpt: The Minister of Primary Industries Nathan Guy has today officially declared a state of drought for rural areas north of the Auckland Harbour Bridge, with other regions likely to soon follow. ### Purchasing a Business |What should you consider? Download our mobile app to your iphone. Purchasing a business can be a daunting exercise. The financial and legal expects of the transaction has to be thoroughly dealt with. Once you have done your initial due diligence and decided to purchase the business, make sure to consult with your lawyer before you sign the agreement for Sale and Purchase of a Business. Many have burnt their fingers by entering into an agreement without prior consultation with their lawyers. Your lawyer would be able to advise you regarding the legal aspects of your agreement. However, your initial due diligence should cover the following : your understanding of the business your financial ability the risks involved the suitability of the location of the business premises is the business currently doing well are there any licensing regulation are you able to give it an undivided attention or have trusted people managing the business Your lawyer will be able to discuss with you the legal implications and advise you accordingly before you sign the agreement for Sale and Purchase. Your lawyer will incorporate proper clauses into the agreement to safeguard your contractual rights and carryout due diligence exercise to ensure that your risk is mitigated to the lowest level possible. As part of the due diligence process, your lawyer will request amongst others : profit and loss account list/data base of existing clientele's ensure that the employment agreement with the existing staff is terminated (if need to) and all outstanding PAYE, salaries have been paid to date. all debts have been paid to date all licenses are still in place and is transferable to you lease of the premise is assignable to you. duration of lease is long enough for you to carry out the business in an uninterrupted manner there are no legal suits pending against the company restriction of trade clause included to ensure that the vendor does not set up a similar business in a close proximity resulting in competition with you. online and social media presence. At Auckland law firm Quay Law, we are geared towards helping our clients achieve the highest results and ensuring that their legal risk is minimized to the lowest possible. For more information or to chat to a lawyer, please contact Ian Mellett. Excerpt: Purchasing a business can be a daunting exercise. The financial and legal expects of the transaction has to be thoroughly dealt with. ### Your digital assets such as Facebook should you die | social media l A grieving Oregon mother who battled Facebook for full access to her deceased son's account has been pushing for years for something that would prevent others from losing photos, messages and other memories - as she did. "Everybody's going to face this kind of a situation at some point in their lives," says Karen Williams, whose 22-year-old son died in a 2005 motorcycle accident. The Oregon Legislature responded and took up the cause recently with a proposal that would have made it easier for loved ones to access the "digital assets" of the deceased, only to be turned back by pressure from the tech industry, which argued that both a 1986 federal law and voluntary terms of service agreements prohibit companies from sharing a person's information - even if such a request were included in a last will and testament. Lobbyists agree the Stored Communications Act is woefully out of date but say that until it's changed, laws passed at the state level could be unconstitutional. "Everybody wants to do the right thing, but the hard legal reality is the federal communications act," said Jim Hawley, a vice president at TechNet, an industry group that represents companies such as Google and Microsoft. Oregon lawmakers moved ahead anyway with a proposal that would have given "digital assets" - everything from photos and messages stored online to intellectual property and banking information - the same treatment as material property for estate purposes. "I think it's time for us to really look at what we can do now," said Democratic Senator Floyd Prozanski after hearing Williams testify about her loss last month. Two weeks later, however, language in the bill that would have covered social media accounts, from Facebook to Flikr, was stripped as tech lobbyists said the federal law and company privacy policies trumped anything that the bill would have included. "I recognise the emotional toll these types of decisions can have on a family who's lost a loved one," Prozanski said Thursday. "But some of these issues may have to be addressed when we have more information than we currently have." Still, the problem persists and discussions on the issue are gaining momentum. As unlikely as such a case might be, even if a person willingly gives over login and password information to someone whom they authorize to access a given digital account, it would violate most terms of service agreements and both people could be charged with cybercrimes and face civil action from Internet companies under current law. Currently, five states have digital assets laws, which vary widely. This group includes Oklahoma, which passed a law two years ago allowing estate lawyers to access digital assets, even social media accounts. That measure did not face the opposition that has emerged in Oregon. "There is some question if laws like the one we passed in Oklahoma, would stand up to a challenge by Facebook and Gmail saying their terms of service agreements supersede laws like this one and the one being discussed in Oregon," said Ryan Kiesel, a former Oklahoma legislator who wrote the law. "That's a question that remains to be answered," he added. Several other states, including Nebraska - guided in part by the story of Williams' 22-year-old son, Loren - are also considering proposals. And the Uniform Law Commission, a non-profit, non-partisan group that writes model legislation for states to help standardize laws around the nation, is examining the issue. "This law is a real need as we have moved into a digital world," said Lane Shetterly, an Oregon attorney and a representative on the commission's drafting committee. The group is responsible for standardizing a range of legislation, including commercial transaction regulations and child custody laws. Proponents say the need is clear. Without clarity or direction, the digital information left behind by a deceased person can spark emotional legal battles, pitting big business against devastated families. And as more and more memories are being stored online, new tools are necessary to make sure loved ones can easily access personal details that could be lost forever. "If this were a box of letters under his bed, no one would have thought twice," Williams said. Months after the death of her first-born son, who was away at college in Arizona, Williams found comfort in his Facebook page. There, she was able to click through photos and letters that helped ease the pain of her loss - for two hours. She learned of the page from his friends and wanted access to his memories to keep them from being deleted, which was Facebook's policy at the time. Unaware of Internet privacy regulations, she reached out to Facebook for help. As she waited for a response, one of his friends provided a tip that helped her discover his password. "It was like a gift," she said. Shortly after, however, the site's administrators changed the password, citing company policy in denying her. Williams sued and won, but she never received the full access she sought. Eventually, the account was taken down. In the end, she gained little more than a symbolic victory and a role as champion of a cause that didn't exist before the digital age. Kiesel, the former Oklahoma lawmaker, says the various attempts at legislation have sparked a long overdue conversation about estate planning for digital assets. "I think that, because of the wide prevalence of online accounts and digital property, the federal government will ultimately need to pass some legislation that provides greater uniformity," he said. Congress, however, has no current plans to take up the matter. US Senator Mark Pryor, an Arkansas Democrat who heads the Senate Commerce Subcommittee on Communications and Technology, is not planning to introduce any digital assets proposals and has not heard any come up, his press secretary said. Also, a bill aimed at modernizing the Stored Communications Act failed in the House Judiciary Committee last year. "This is not going to happen overnight," said Greg Nojeim, of The Center for Democracy and Technology, a Washington-based non-profit, public policy group. He said changes to the Stored Communications Act were being discussed by industry groups, "but none that would help these families." Under current law, Internet companies that provide storage for digital assets are prohibited from disclosing account information, even to families, without a court order, which can be costly and difficult to obtain. Even then, there are no guarantees. Facebook, for example, citing its terms of service agreement won't provide access, even if a judge orders them to do so. Facebook will not comment on pending legislation or specific cases other than to defer to their service agreement, which states, in part, "We may access, preserve and share your information in response to a legal request (like a search warrant, court order or subpoena) if we have a good faith belief that the law requires us to do so." Along these lines, TechNet, one of several groups in opposition to the Oregon measure, provided written testimony arguing that legislation requiring online companies to provide access could subject them to federal criminal penalties. "We just want to make sure that whatever comes out doesn't put a company in a position where they have to choose between state and federal law," said Hawley. The pending Oregon legislation now covers only digital assets of commercial or financial value such as online banking information. "It's absolutely devastating," Williams said. Since she began her quiet crusade after her 2007 court victory yielded limited, temporary access to her son's account, the social media landscape has changed considerably, but there is still no industry standard. Where Facebook once deleted the accounts of deceased users, for example, pages can now be memorialized for public view. Many predict the problem will grow as long as there are no estate laws in place to determine what happens to virtual property left behind by the deceased. Without a clear law, estate managers can be charged with cybercrimes for attempting to access clients' digital accounts, said Victoria Blachly, a Portland attorney who helped draft the initial Oregon proposal. Estate planning attorney James Lamm writes about the issue on his blog "Digital Passing." He advises clients to include explicit instructions in their wills stating exactly how digital assets should be handled - even if there is no guarantee those wishes will be carried out. "It's good to come up with a thoughtful plan for what happens to all of your property," he said. "Your physical properties, and your digital properties." HOW TO PROTECT YOURSELF: Estate planning attorney James Lamm who writes the blog "Digital Passing" advises people to plan ahead for their virtual afterlives. Your best bet is to make sure valuable memories and intellectual property are stored somewhere besides a social media account - so back up your photos on a USB flash drive. Still, given the prevalence of social media in today's world, Lamm advises these four steps as a sort of digital estate planning guide to help ensure your wishes are carried out - even though, he says, with the law as it stands currently, there are no guarantees. - KEEP A LIST: Make a list of all your digital accounts including social media, email, online banking, investment, gaming and any other virtual profile you can think of. Include your login information, such as usernames and passwords, and encryption data. - PUT SOMEONE IN CHARGE: Tell your estate planner where to find that list and give that person explicit instructions for how you want the information handled. Do they hit the delete button? Or do they notify the company to memorialize your site? Don't ask this decision-maker to commit a crime by logging in to your accounts, but if the law changes in the future this step could make it more likely your wishes are fulfilled. - WILL POWER: If you have a will, it's best to include your digital assets there. Some online information has real financial value, and it's good to cover all your assets. A McAffee survey found that on average Americans believe the financial and emotional value of their digital assets are worth about $55,000. - HOPE FOR THE BEST: Sometimes, you can do everything right and still not get the results you want. Until there is more legal clarification, you just have to do everything you can and hope that it works out. - AP. ( source stuff.co.nz March 2013) Excerpt: A grieving Oregon mother who battled Facebook for full access to her deceased son’s account has been pushing for years for something that would prevent others from losing photos, messages and other memories – as she did. ### Selling a Residential Property - What is involved? Are you selling a residential property in New Zealand and wondering what the process is involved with your property sale? For most of us, buying or selling a property is one of the largest transactions we will make. There are many practical and legal considerations to take into account. Getting the right property law advice will ensure that your conveyancing transaction progresses as smoothly as possible. Below please find some of the steps your conveyancing lawyer | solicitor will move through as he or she finalises your property transaction when you sell your home. Pre-contractual information and advice. Follow up of conditions in the Agreement for Sale and Purchase. Title search and discharge of mortgage (if applicable). Apportionment of rates, and rental/body corporate levies where applicable. Preparing necessary documentation for you to sign. Receipt of sale proceeds through our trust account, repayment of mortgage and payment of land/water rates (if applicable) Credit of surplus proceeds to your nominated account. Completing electronic transfer of property ownership to the new owner. Sending sales notice to the relevant Council. Prior to signing a sale contract our lawyers recommend that you contact our Auckland law firm so that we can look over the agreement for Sale and Purchase and ensure that the conditions noted are suitable to your particular requirements. Our experienced legal team have expertise in the area of structuring property investments and are able to advise you as to appropriate structures for your commercial or private requirements. To discuss your own property / conveyancing transaction, contact the propertyl law team at Quay Law NZ. Excerpt: Are you selling a residential property in New Zealand and wondering what the process is involved with your property sale? ### New Zealand runs the risk of a sharp correction in property prices Shared with you by the Auckland legal team at Quay Law. Source: interest.co.nz New Zealand runs the risk of a sharp correction in property prices, credit ratings agency Standard & Poor's says. In a report on the New Zealand banking outlook S&P says its "base case scenario" sees real estate prices continuing to stabilise at current levels over the medium term, and such an occurrence having a stabilising effect on asset-quality ratios, especially as residential mortgage loans account for approximately 60% of the total banking sector loans. "That said, given the uncertain short-to-medium term outlook for the global economy, we are of the opinion that there remains a significant risk of a sharp correction in property prices," S&P said. "We believe that a scenario that may lead to such a weakening of New Zealand's macro-economic factors is a deterioration in the terms of trade or a widening in the current account deficit from its current cyclical low, which could heighten the risk of a sharp depreciation in currency and a sharp fall in property prices. "In our view, such a scenario, in conjunction with a rise in unemployment, could increase the risk of a significant rise in banks' credit losses, on the back of a build-up in housing prices and domestic credit over the period that preceded the global financial crisis. "We are of the opinion that such a scenario would have a material impact on the financial strength of the balance sheets of New Zealand banks." The warning salvo from the ratings agency comes amid a stream of news suggesting more and more heat in the property sector. Statistics New Zealand figures for January showed that construction consents for new houses (excluding apartments) were up a seasonally-adjusted 9.6%. Reserve Bank sector credit figures for January showed a NZ$952 million rise in home lending during the month - the most in dollar terms for nearly five years and the biggest annual rate of increase in four years. Real Estate Institute figures for January showed that the annual median house price was up 4.2%, while the number of houses sold hit a five-year high for the month. S&P said it had noted the recent increases in property prices in regions such as Auckland and Christchurch and considered that a continued rise in house prices could amplify the credit losses if there was a subsequent sharp correction in property prices. Related Topics Property Standard & Poor's Banks Credit Ratings "We are also of the opinion that the current subdued credit growth environment may also lead to an increase in competition between banks that could increase the risk appetite of New Zealand banks, especially in light of modest earnings outlooks relative to historical levels." S&P rates countries' economic risk from 1-10, with 1 being the least risky. New Zealand currently has an Economic Risk Score of '3' . Should the economic risk buildup and the Economic Risk score be lowered to '4' from '3' the ratings on New Zealand banks could be lowered, the ratings agency said. "We are of the opinion that such a change in the Economic Risk score would have a direct impact on the stand-alone credit profile of all New Zealand incorporated banks and the issuer credit ratings of banks that do not benefit from group support. A change in the Economic Risk score could also impact our capital and earnings assessment especially in instances where risk adjusted capital ratios are close to our threshold levels." S&P said it was also of the opinion that there remained a significant risk of disruption in the banking sector's access to funding, given the sector's material dependence (37%) on external borrowings. "In particular, we consider the New Zealand banking system's sensitivity to a disruption in external funding could be more pronounced during a period of rapidly depreciating currency, falling property prices, or increased credit losses. Nevertheless, we consider that the major banks are likely to benefit from their parents' support in normal as well as most stress scenarios." Excerpt: New Zealand runs the risk of a sharp correction in property prices, credit ratings agency Standard & Poor’s says. ### Quake risk-list sends shock through the suburbs Source NZ Herald Saturday 14 May 2011 Many of Auckland's old town centres are studded with character buildings that could tumble and kill in an earthquake, a report exclusively obtained by the Weekend Herald shows. A preliminary "earthquake-prone building register" released by the Auckland Council lists 393 unreinforced masonry buildings in the formerAucklandCityarea likely to collapse in a moderate earthquake. The list of pre-1940 commercial buildings reveals many hot spots in old town centres built at the turn of the 20th century, including Mt Eden, Kingsland, Balmoral, Mt Albert, Mt Roskill, Epsom, Remuera, Parnell, Ponsonby, Jervois Rd, Karangahape Rd, Queen St and the central city. Council officers, who previously refused to release the list, claimed it was "erroneously" called the earthquake-prone building register. The list is part of an earthquake-prone policy legally required under the Building Act and compiled by the former Auckland City Council. The council stressed it was a list of buildings that could be susceptible to earthquake damage and not all the buildings had been properly assessed. The list of 416 buildings has been reduced to 393 after the council wrote to owners 10 days ago and heard back that strengthening work had been done on 23 properties. Andrew Turpin, who owns several character buildings in Kingsland, does not believe old buildings can be brought up to modern earthquake standards, but accepts that they can be made more resilient. "My questions is at what cost?" He said many people were killed or injured by falling parapets and awnings in theChristchurchearthquake. He is keen to install posts on the footpath to support the cantilevered awning outside his heritage-listed Page's Building. AucklandCityadopted a "pragmatic" approach to allow the owners of earthquake-prone buildings to reduce risk over time - in many cases until 2045. Wellington City Council requires earthquake-prone buildings to be strengthened within 10 to 20 years, depending on the type of building. Following theChristchurchearthquakes, this is under review and may go back to a previous timeframe of five to 15 years, half that allowed for mostAucklandbuildings. Auckland Council building control manager Bob de Leur saidAuckland's light-handed approach was based on the low risk of a quake of sufficient intensity to bring down buildings. "The last thing we want is to end up with areas of the city where we have totally vacant lots because property owners haven't got the money to upgrade these buildings at the present time," he said. Terry Gould, a director of Phillimore Properties which specialises in heritage refurbishments, said the cost of earthquake-proofing old buildings was considerable. He said cities overseas provided incentives to refurbish heritage buildings and, with the release of the list, it was time to debate incentives forAuckland. "We don't want the situation which we have got with the St James Theatre where we end up with demolition by neglect, where the economics are just not there for building owners," Mr Gould said. Dominion Rd Business Association manager Gary Holmes said building owners had already suffered a loss in rentals and property values due to the designation to widenDominion Rd, which may not go ahead. "To now have Auckland Council demand that long-suffering property owners must now spend many thousands of dollars in having their building reach the particular threshold in the building code, could potentially be a nail in the coffin of manyDominion Rdbusinesses," he said. The Building Act 2004 defines earthquake-prone buildings as those likely to collapse in a moderate quake, causing injury or death, or damage to any other property. A building is earthquake-prone if it is assessed as below 33 per cent of the design level of a new building. Engineers have argued for doubling the minimum 33 per cent strengthening threshold to 67 per cent. CanterburyUniversityassociate professor of civil engineering Stefano Pampanin said: "Going to 34 per cent is not appropriate. Even going to 50 per cent is not good enough." Consulting engineer Barry Davidson has gone one step further by saying many old brick buildings are death traps and should be demolished for safety reasons. Auckland Council began work in November to draft an earthquake prone policy, merging those of the former councils, which will go to a committee next month and then out for public submissions. By Bernard Orsmand and Geoff Cumming Excerpt: Many of Auckland’s old town centres are studded with character buildings that could tumble and kill in an earthquake, a report exclusively obtained by the Weekend Herald shows. ### What is a Commercial Contract? What is a Commercial Contract? A commercial contract refers to a between parties in which they are obligated to do or not do certain things. Contracts may be written or verbal and drawn up in a formal or informal way. Most businesses create contracts in writing to make the terms of agreement clear, often seeking the services of a solicitor | lawyer when drafting important contracts. Contracts may encompass all aspects of a business, including the sale of a business, the purchase of a business, franchise agreements, hiring of employees or contractors, wages, employee safety, leases of equipment or property and loans. The list of types of commercial contracts could also be extended to leasing, statutory compliance, contract negotiation and drafting, consumer protection, security documentation, terms of trade, company registrations | incorporations, joint ventures or disputes there is no substitute for quality legal assistance by a lawyer who understands your New Zealand business. A breach of contract occurs when one of the parties fails to live up to the agreements. In such a case, the law is required to provide a remedy, which may or may not involve the court system enforcing the contract or asking the party to compensate for any damage done by the breach. For further legal assistance on any commercial | business matter, please contact the friendly and approachable legal team at Auckland law firm Quay Law. Excerpt: A commercial contract refers to a commercial contract and lawyers and law firm-auckland between parties in which they are obligated to do or not do certain things. Contracts may be written or verbal and drawn up in a formal or informal way. ### A discharge of mortgage - what does this mean? Most people, when buying a property, will require a mortgage on the property. This mortgage is always registered onto the property’s title during the initial conveyancing process. Registering the mortgage on the title protects the bank’s interest in the property so that when a property is sold, the the owner must repay the loan to the lender. When the loan is repaid, the lender ‘removes’ or ‘discharges’ the mortgage from the property’s title to give the new purchasers a ‘clean’ title. In the event that a loan on a property is repaid in full, the mortgage is not automatically removed or discharged from the property’s title. The mortgage remains as an interest on the property’s title until your lawyer acts on your behalf to apply to have it removed or discharged. Thank you for visiting our Quay Law Legal Blog. Please connect with us on Facebook for regular legal tips . Legal tips provided by the Auckland Lawyers and Conveyancing specialists at Quay Law NZ. These legal tips cover a range of legal topics and cover all legal matters from estate planning, to wills and estate administration, tax and IRD (Inland Revenue Department) matters, residential and commercial conveyancing and property law, family trusts. social media law, leasehold properties, commercial leasing and much more. Although situated in the Auckland suburb of Remuera we are able to support clients overseas and across New Zealand. Please download our mobile legal app for future reference or call us at Auckland law firm Quay Law today. Excerpt: Most people, when buying a property, will require a mortgage on the property. This mortgage is always registered onto the property’s title during the initial conveyancing process. ### House prices continue to climb? Source: NZ herald 23 Feb 2013 Articled shared on the Auckland law firm blog: www.aucklandlawfirm.co.nz Expectations of house price inflation continue to climb in ASB's latest quarterly survey and are close to their all-time high 10 years ago. The same seller's market is reflected in a drop in the net balance of people who consider it a good time to buy a house. In Auckland and Christchurch it is now regarded as an outright bad time to buy. Reflecting rising actual prices, a net 59 per cent expect them to rise further, the survey found, up from a net 56 per cent three months ago. In Auckland the increase was steeper, from a net 61 per cent last time to a net 66 per cent. The highest this indicator has been, nationwide, in the 17 years of the ASB survey was 61 per cent in January 2003. But while the pressure then was from the demand side, this time it is a lack of supply, according to ASB chief economist Nick Tuffley. "Demand for housing has lifted modestly over the past year, reflecting a return of first-home buyers as the labour market stabilises, as well as increased interest from investors," he said. "However, supply of new housing has not yet picked up in response to stronger demand. The market remains supply constrained due to low levels of housing construction. Supply shortages have been most acute in Christchurch and Auckland. As a result, price increases are strongest in these areas." In Auckland the population pressure remained pretty steady and in Canterbury there are people displaced and looking for homes. "But it still feels like much of the dynamic is that the supply side is tight." Barfoot and Thompson's listings were still lower than at any time during the last boom, Tuffley said. Interest rate expectations remained fairly low, he said. A net 24 per cent of survey respondents expect them to increase, down from a net 27 per cent three months ago. This was in line with ASB's own view that the Reserve Bank was likely to hold off raising the official cash rate until March next year. "However, while we expect floating rates to remain unchanged, fixed mortgage rates are likely to increase over the coming year as the [money] market shifts away from pricing in a cash rate cut to pricing in cash rate increases." Meanwhile, a Bank of New Zealand survey of real estate agents asked if they were noticing more or fewer foreign buyers in the market and where they appeared to come from, BNZ chief economist Tony Alexander said. "The top country is the United Kingdom with 27 per cent of agents noting this, followed by China at 24 per cent, then Australia 22 per cent. In Auckland, however, Chinese buyers are seen as prevalent among foreigners by 45 per cent of agents responding." Excerpt: Expectations of house price inflation continue to climb in ASB’s latest quarterly survey and are close to their all-time high 10 years ago. ### Affordable homes | Auckland Source: One News - February 2013 First home buyers in Auckland have been quick to snap up a limited release of so-called "affordable" homes at Hobsonville Point. Nine of 11 as yet unfinished houses sold within hours of going on the market. But some are questioning how affordable they really are. Five of the houses are not finished and six are still on the drawing board, but first home buyers were on a mission. They came from far and wide in search of affordable Auckland real estate. "I just bought a house, made a hard decision," said Michelle Smith, a happy buyer. Mark Fraser of Hobsonville Land Company, which is developing the land, says the houses are affordable, for Auckland. "I think in an Auckland context, for a new high quality home, yes they are affordable," Fraser said. At brand new Hobsonville Point that means between $465,000 and $485,000, prices that worry those looking out for Auckland's poor. The Salvation Army has been doing its sums too and says buyers need an income of at least $70,000 a year to secure a loan on one of the Hobsonville Point properties, which puts them well beyond the reach of the city's low income families. Up to 3000 homes will eventually be built on land that used to house Hobsonville Air Force base. One fifth of the medium to high density development is for first time buyers who can prove they are citizens or permanent residents, have an annual household income of less than $120,000 gross and plan to live there for at least two years. "It seems scary, but at the same time it's just going to get worse so the sooner you can buy the better off you are," Smith said. Fraser said buyers are getting more than just a home. "It's the parks and the farmers market and the cafe and the ferry and the primary school and the high school - so the whole package is pretty attractive," he said. Around 20% of the homes to be built at Hobsonville Point over the next 10 to 15 years will be priced at up to $485,000, with half of these priced below $400,000, indexed to inflation, under a programme announced late last year. The next homes in the development will be released in a few weeks. When buying or selling a home it’s important to get the right property law and legal advice from the start. If you are buying a property, our Quay Law property lawyers | solicitors can help make sure the purchase is smooth and effortless, by providing advice at every stage until you complete the purchase. Ph: 09 5232408 Website Excerpt: First home buyers in Auckland have been quick to snap up a limited release of so-called “affordable” homes at Hobsonville Point. ### What is a section 21 or relationship property agreement Relationship Property - Contracting Out Agreements. Relationship property agreements are also known as "section 21 agreements", "contracting out agreements", "pre-nups" and "post-nups Increasingly New Zealanders are becoming more alert to the implications of the Property (Relationships) Act 1976 (“the Act”) and are seeking legal advice from their lawyers about the preservation of their hard-earned property. Subject to limited exceptions, relationship property includes the family home and all income and assets acquired by either party after the marriage or defacto relationship began. Who can enter into an agreement? Section 21 of the Act enables a husband and wife, civil union partners, de facto partners, or two persons in contemplation of entering into a marriage, civil union or de facto relationship to contract out of the provisions of the Act. For more information on this topic please contact a lawyer at Quay Law. Excerpt: Relationship property agreements are also known as “section 21 agreements”, “contracting out agreements”, “pre-nups” and “post-nups ### What is Conveyancing and why do I need it? Conveyancing is all the legal legwork needed to buy or sell a home whether this be an investment property or home for your family. There are a number of important legal steps involved, which include title searches and contract preparation. When buying or selling a home it's important to get the right property law and legal advice from the start. If you are buying a property, our property lawyers | solicitors can help make sure the purchase is smooth and effortless, by providing advice at every stage until you complete the purchase. If there is no real estate agent involved we can prepare an offer for you. Pleases visit our Quay Law Conveyancing and Property Law Website Property law website. Excerpt: Conveyancing is all the legal legwork needed to buy or sell a home whether this be an investment property or home for your family. ### What is a law firm AND what do we do? shared with you by the lawyers at Quay Law Has anyone ever asked the question - What is a law firm?  Well, a definition of a law firm is a business entity formed by one or more lawyers to engage in the practice of law. The primary service rendered by a law firm is to advise clients (individuals or corporations) about their legal rights and responsibilities, and to represent clients in civil or criminal cases, business transactions, and other matters in which legal advice and other assistance are sought. So let us take a look at some of the legal services that the lawyers at  Auckland law firm Quay Law provides to their clients. Buying or Selling of Residential Property | Conveyancing Our conveyancers will assist you with the property sale and purchase agreement, examine and report on the title, deal with all enquiries from the other party's lawyers, ensure that all relevant searches are made, deal with your mortgage lender and complete the settlement of your transaction.  We also assist first home buyers through the property purchase process.  See a published article. Property | Land Subdivisions Our lawyers will liaise with your Surveyor, Council, and prepare all required documents for the land transfer office. Mortgage Refinance Our legal team and lawyers will correspond with your broker, or bank , prepare all documents and arrange for a smooth transition with your old and new bank/lender. Buying or Selling a Business Our lawyers ensuring the relevant conditions in your agreement for the sale or purchase of your business are in place, check any lease, liaise with your broker/bank for finance, liaise with your accountant, and assist with all legal requirements up to settlement. Commercial Property | Conveyancing Our lawyers check all leases, LIM report, Builders report, GST issues, liaise with your bank to ensure a smooth property settlement. Leases | leasing Our Auckland lawyers prepare and arrange execution of the latest New Zealand Law Society form of lease. Wills Quay Law assist clients with the drafting and executing wills to your personal requirements. Trusts | Family Trusts After meeting with you and discussing your family's requirements.  Our lawyers assist you with the formation of your trust, drafting your deed of trust, gifting requirements and any other additional yet related documentation. Probate Making application for probate, administering the estate, and ensuring bequests, gifts and residue are dealt with efficiently. Enduring Powers of Attorneys | Drafting or Independent Legal Advice With changes in the legislation, you may require new enduring powers of attorney for care and welfare, and separate powers of attorney for property.  Our law firm can assist you in this regard. Relationship property Our lawyers assist clients with the arranging a smooth settlement between parties that are separating in order to divide the relationship property Our Legal Blog Legal tips provided by the Auckland Lawyers and Conveyancing specialists at Quay Law NZ.  These legal tips cover a range of legal topics and cover all legal matters from estate planning, to wills and estate administration, tax and IRD (Inland Revenue Department) matters, residential and commercial conveyancing and property law, family trusts. social media law, leasehold properties, commercial leasing and much more.  Although situated in the Auckland suburb of Remuera we are able to support clients overseas and across New Zealand.   Please download our mobile app for future reference or call us at Auckland law firm Quay Law today. Call an Auckland lawyer on 09 5232408, Excerpt: Has anyone ever asked the question – What is a law firm? Well, a definition of a law firm is a business entity formed by one or more lawyers to engage in the practice of law. ### House values continue to soar no longer propped up by Auckland | shared by the conveyancing team at Quay Law Source : NZ Herald shared with you by the property law and conveyancing team at Auckland law firm, Quay Law. New Zealand house values continue to soar but the booming market is no longer being propped up by property powerhouses Auckland and Christchurch. Latest figures from Government property valuer Quotable Value (QV) released today show house values rising 6.2 per cent over the last year and 1.5 per cent over the past quarter. With the average value sitting at $426,452, values are 2.6 higher than they were during the previous market peak in late 2007, thanks largely to supply outstripping demand in the two biggest cities. Auckland's rampant property market shows no signs of abating, with values up 3 per cent in the last three months and 10.2 per cent over the past year. Old Auckland City and North Shore continue to have the steepest increases over the past 12 months, up 11.1 per cent and 10.2 per cent respectively, with Manukau and Waitakere close behind, up 9.7 per cent and 9.2 per cent respectively. Values in the wider Auckland area were now 12.4 per cent above the previous 2007 peak, led by Old Auckland City at 15.9 per cent above the 2007 peak. Since thousands of Christchurch houses have been ruled uninhabitable due to earthquake damage, the post-disaster property market is also skyrocketing - with values up 7.1 per cent over the last year and 2.4 per cent over the past three months. But the new figures show that the rest of the country is catching up. Steady climbs over the last quarter in Hamilton, Tauranga, Wellington and Dunedin show confidence is spreading, says QV.co.nz research director, Jonno Ingerson. "The increase in nationwide values is no longer solely being driven by Auckland and Canterbury," he said. "Over the last month or two, values have also begun rising again in most of the other main cities and provincial centres." Even with the holiday season and bumper summer weather, estate agents have reported a relatively strong start to the year, carrying on from a late 2012 rise in buyer activity. With prices at record highs, the number of properties currently for sale had dropped to "very low levels". Mr Ingerson said reduced buyer choice meant that well-presented properties are being snapped up quickly. "The overall result is upward pressure on prices," he said. While sales of luxury central Auckland properties over $2 million were stabilising, with many selling after auction, properties under $1 million were still sought after. Areas like New Lynn, Titirangi and Te Atatu were in good demand, with subdivisions in Henderson, Swanson and Massey also surging ahead, according to QV operations manager Kerry Stewart. And despite the buoyancy, there were still a lot of first home buyers going head to head with investors to try and get a foothold in both the Auckland and Christchurch markets. Daryl Taggart, a QV valuer, said interest in the Christchurch areas unaffected by ground-shaking, as well as its outlying regions, was strong at both the lower and top ends of the market. Excerpt: New Zealand house values continue to soar but the booming market is no longer being propped up by property powerhouses Auckland and Christchurch. ### Using your Kiwi Saver for property purchase. This article is shared with you by the Auckland law firm conveyancing team at Quay Law. Article. The Government’s saving scheme is behind a shift back to first home buyers – but the Reserve Bank could stymie the increase. KiwiSaver launched in July 2007, around the same time the New Zealand property market hit the doldrums. The initiative allows those in a compliant scheme to withdraw some or all of their savings to put toward the purchase of their first home. Remax Leaders Real Estate property specialist Andrea Skews says the market has started to rebound, largely thanks to young first home buyers and their access to the funds required to make a deposit. “Two to three years ago we probably had a larger buyer pool in the four-bedroom, two bathroom second home buyers where they move up, that’s definitely slowed down and shifted back to the first home buyers,” she says. “In my buyer pool personally now, I’d probably have 80 percent who are first home buyers.” Brendon Ojala is director of Velocity Financial, a Wellington-based firm. “I think there is probably a slight increase in ease of access for those first home buyers because of KiwiSaver,” he says. Prior to the housing market crash in 2007, the majority of banks required a five percent deposit on a house. From 2008 onward, this rose to around 20 percent. Now Mr Ojala says these rates are coming down again, attracting young buyers. “Those two things are certainly having an impact on first home buyers getting into the market.” He is worried rumours the Reserve Bank may require banks to comply with a minimum deposit cap on mortgages could have a massive impact on this market, which is slowly but steadily recovering from 2007. “Without a doubt that would impact first home buyers,” Mr Ojala says. “Right now, if you’re on an average salary and you’ve been on KiwiSaver for five years you can get into an average-priced house because you only need five percent. If the Reserve Bank says ‘right, you need 20 percent’, it’s going to be years and years before many people can have that saved.” While Mr Ojala says it is unlikely the minimum cap is instituted without a lot of noise from the brokerage industry, a generation which has just gotten used to the idea of being able to own a home may receive another blow. Source: 3 News 3 February 2013. Excerpt: The Government’s saving scheme is behind a shift back to first home buyers – but the Reserve Bank could stymie the increase. ### RIP Sir Paul Holmes. Picture source: stuff.co.nz Our thoughts go out to Sir Paul Holmes' family at this very sad time.  Our team are truly saddened to hear this news and what a loss at such a young age.   May you rest in Peace. Source stuff.co.nz Broadcasting trailblazer Sir Paul Holmes died at his beloved Hawke's Bay home surrounded by his family this morning. Holmes, 62, had been battling heart problems and the return of prostate cancer, which he recently said was more aggressive than before. His family said in a statement that he died peacefully at home, surrounded by his family, just as he had wanted. "More than just a broadcaster, Paul was a loving husband and father, as well as a generous friend. He loved people and people loved him." His wife, Lady Deborah, and children, Millie and Reuben, and brother Ken, thanked the public for their "incredible support", but said they now needed privacy to grieve. Information on how the public could pay tribute to Holmes would be announced in due course. He ended his broadcasting career in November because of poor health and was a late addition to the New Year honours list, being made a Knight Companion of the New Zealand Order of Merit. He has been suffering for much of the past year from hypertrophic cardiomyopathy - a genetic heart condition that thickens muscles and restricts bloodflow - and from prostate cancer. Holmes had four hours of open-heart surgery earlier last year in Auckland Hospital, including nearly a week in an induced coma as he recovered. He was back in hospital in November after he got an infection. "When you have a few health scares it makes you think and it provides an opportunity for perspective, " he said at the time, as he stepped down from his role as a mainstay presenter for radio station Newstalk ZB. He headlined TVNZ's flagship Holmes programme until 2004. Excerpt: Our thoughts go out to Sir Paul Holmes’ family at this very sad time. Our team are truly saddened to hear this news and what a loss at such a young age. ### Foreign Property Buyers purchase NZ apartments Article Source: NZ Herald and shared by the property and conveyancing law team at Quay Law. 30 January 2013 Parents of foreign students are flying into Auckland on short visits to cram in apartment viewings and making quick deals for children studying here. The apartment market had long been dominated by investors but estate agents are noticing a shift toward owner-occupier buyers. Apartment sales are almost back to where they were before the global financial crisis hit in 2007 and 2008, according to figures from the past eight years analysed by the Herald. Harcourts real estate agent Larissa Tsapko said she had shown apartments to about 30 groups of people in the past two months. Ninety per cent of them were parents looking for units for their children - more than she had seen in her four years selling apartments in central Auckland - and she had had more inquiries for later in the year. Many were from China, Russia and the Middle East, she said. Waterloo St, Gore St, Parliament St and Eden Cres were popular areas. Hayden Butler, who heads Bayleys' city apartment team, said he had hosted three separate groups of Asian parents this year. "They are in the city for a few days - three of four days - and cram in half a dozen viewings a day. It's a business trip, not a sight-seeing holiday." They wanted short settlement terms - sometimes as quick as three weeks - and were making offers on the spot, Mr Butler said. Many were buying in what he called the "university quarter", a section of the city with about 30 or 40 apartment buildings around the University of Auckland and the Auckland University of Technology. It encompassed Symonds St, Wakefield St and the top of Queen St. "For some parents, they see it as a good investment," Mr Butler said. "If they're going to be paying for accommodation for three years, they might as well buy something and get a return, rather than paying rent ... And it becomes their home away from home, so when they come and visit, they stay in the apartment with their kids." Owner-occupiers entering the market tended to shun the smaller apartments so purchase prices were higher. Real Estate Institute chief executive Helen O'Sullivan said the apartment market was one of the hardest hit during the crisis but it was recovering. Figures provided by REINZ show $513.6 million was spent on Auckland city apartments last year. The past eight years has seen steady sales, about 300 or 400 each year, but prices dropped significantly during the crisis. Just over $696.6 million was spent in the city in 2006 and it dropped to $587.7 million the following year before a fall to $280.7 million in 2008. It has slowly been creeping up since. The data covered the suburbs of Auckland Central, Arch Hill, Cox's Bay, Eden Terrace, Freemans Bay, Grafton, Grey Lynn, Herne Bay, Morningside, Newton, Point Chevalier, Ponsonby, St Marys Bay, Western Springs and Westmere. For each year, the sales represented around 30 or 40 per cent of total national sales of apartments. The median price for an apartment last month was $237,073. It was $280,000 in December 2007, before dropping to $187,000 in December 2008. Ms O'Sullivan said figures were not held on the ethnicity of home-buyers. Excerpt: Parents of foreign students are flying into Auckland on short visits to cram in apartment viewings and making quick deals for children studying here. ### What should I think about when setting up a trust? What do you think you need to know about when setting up a family trust with your lawyer? First you will need to decide which of your assets should be placed into your trust. A value should then be established for these assets. In most cases an asset would be the family home, but other things of value like cash, bank deposits, shares, artwork etc. could also be included. Once the trust has been established, the ownership of these assets will then be transferred to the trust and the trust then owes a debt back to you, the settlor ( see previous legal Quay Law blog post for trust terms | definitions). This debt can then be ‘forgiven’ through a process called gifting. A legal document called a ‘trust deed’ will formally set up the trust. It will appoint the trustees, list the beneficiaries, and state various rules for the administration and management of the trust. The trust deed needs to be very carefully written, preferably by a lawyer. To meet with one of our lawyers to discuss family trusts and how they could potentially suit your situation please contact our law firm. Quay Law has offices in Auckland's Eastern suburb. Our Auckland Family Trust Website Our Lawyer-Auckland main website Excerpt: First you will need to decide which of your assets should be placed into your trust. A value should then be established for these assets. ### Great New Zealand Tourism abd Travel News!!! Great New Zealand Tourism abd Travel News shared by the lawyers at Quay Law. NZ recognised in Chinese Luxury Travel Awards January 30, 2013, Auckland Airport Fuseworks Auckland Airport today welcomed the recognition of New Zealand by the Shanghai Travellers Club in their 2013 Awards for Best Luxury Travel Experiences. Glenn Wedlock, General Manager Aeronautical Commercial for Auckland Airport, said, "This is great news for New Zealand tourism. While China has already become our second largest inbound market in terms of volume, the importance of positioning New Zealand as a premium destination to the very affluent high net-worth Chinese visitors who are increasingly interested in luxury travel is vital for our economy." New Zealand was awarded the most coveted of the award categories, World’s Best Luxury Destination 2013, while Auckland Airport was awarded the World’s Best Airport, beating off competition from destinations and airports around the world. Martin Snedden, Chief Executive Officer for the Tourism Industry Association New Zealand (TIA), congratulated Auckland Airport on their win in the 2013 Chinese Luxury Travel Awards. "Auckland Airport has been working hard to attract high-value Chinese visitors to New Zealand. This award is recognition of the success of their efforts and strategic direction and will benefit the wider New Zealand tourism industry." The members of the elite Shanghai Travellers Club vote on the awards. Members are typically very wealthy, experienced, independent travellers, with a taste for sophisticated, high quality and luxury travel experiences. The award comes only a few weeks after the visit to New Zealand in December of 250 of China’s top travel agents as part of the annual China Southern Airlines agent incentive trip. "That visit showcased premium New Zealand experiences, and was a massive opportunity to influence a large group of travel opinion leaders to promote our country through their networks to the affluent Chinese visitors we want to target," said Mr Wedlock. "Their visit was very much in line with our focus on our Ambition 2020 goals to develop more New Zealand experiences and build higher quality offerings for Chinese visitors." "Global markets are now increasingly Asia-centric and likely to become more so. A global race is on to capture Chinese visitor growth and benefits from the massive rise in the Asian middle-class that is projected. New Zealand’s visitor industry, because of its remote location and small scale, is disadvantaged in global terms, despite its powerful appeal as a destination. So we have to work a little harder to capture more of the value", said Mr Wedlock, "which is why these types of awards matter." Mr Wedlock said the award announcement also reinforces the decision made by the Immigration New Zealand in November last year to look at ways to streamline the visa process targeting high-value, frequent travelling, low-risk Chinese tourists who want to visit New Zealand. "World tourism is a very competitive industry, and the fact is that our tourism revenues are not keeping pace with our tourism numbers. Anything New Zealand can do to attract the premium end of the visitor market, meaning those who like to fly in the premium end of planes and sample the best New Zealand has to offer, will boost our economy and will make vital air-services more sustainable." Author Auckland Airport Excerpt: Auckland Airport today welcomed the recognition of New Zealand by the Shanghai Travellers Club in their 2013 Awards for Best Luxury Travel Experiences. ### Rent | Rental properties - article shared by our Auckland Property Lawyers Source: Stuff and shared with you by the Property Lawyers at Quay Law The median rent for a three-bedroom home increased by 5.7 per cent in 2012, or by around $20 a week. However, tenants in parts of Christchurch are paying $50 a week more. Nationally, median rents increased by $20 week for both two-bedroom homes (up from $300 a week in December 2011 to $320 last month) and three-bedroom homes (up from $350 a week to $370). Nut those increases may not be good news for prospective landlords because house prices have been increasing even more, putting a squeeze on rental yields. There were significant differences around the country with rents soaring in Christchurch, weakening in Wellington and ending the year on a mixed note in Auckland. Median rents in many parts of Christchurch rose by $50 or more in 2012 (refer table, page 4), as the city struggled to cope with a loss of homes due to earthquake damage and rising demand for housing from workers moving to the city for rebuilding work. The biggest rent increase was in the Addington/Hoon Hay area where the median rent for a three-bedroom home increased from $340 a week to $395 in 2012. That was closely followed by Riccarton where the median rent for a two-bedroom dwelling rose by $53 from $277 to $330 a week. But in the capital, seven of Wellington's 11 rental districts posted declines. The biggest drop was in Miramar where the median rent for three-bedroom homes dropped by $50, from $540 to $490 a week, followed by Karori/Kelburn where rents on two-bedroom dwellings were down by $35 a week. In Auckland, the country's largest rental property market by far, the picture was patchy at year's end. Rents declined in the highly desirable inner city suburbs of Herne Bay, Ponsonby, Grey Lynn and Westmere and on most of the North Shore, while most other suburbs showed rental increases. The biggest rises were in a cluster of suburbs a few kilometres from the CBD - Mt Albert, Sandringham, Balmoral and Mt Roskill - where median rents were up $30 or more on December 2011. More modest rental increases of about $10 a week were posted in the west and south of the city where there is a high concentration of rental properties, and there were more substantial rises of $20 to $30 a week in the eastern suburbs. There was also a large and unexpected drop in the number of new tenancies signed in December, although opinions are divided on what that could signal for the rental market. The REINZ figures show that 5769 dwellings were let in December, a 23 per cent decline from the 7468 new lettings in December 2011. Trade Me's head of property Brendon Skipper said there had also been a significant increase in the number of properties being listed for rent on the Trade Me website while the number of prospective tenants searching for homes had dropped. In the three months to December, the number of rental property listings was up 8 per cent compared with the same quarter of 2011, while the number of prospective tenants searching for rental properties was down 5 per cent. In Manukau the number of listings was up 24 per cent on the previous year and on the North Shore listings were up 15 cent. Hamilton and Wellington also recorded double digit increases in the number of listings. In Christchurch the situation was reversed, with the number of listings down 18 per cent on the previous year while the number of tenants searching the website for homes was up 22 per cent. That could suggest that the demand/supply pendulum for rental properties outside of Christchurch was swinging back in favour of tenants and the days of big rental increases may be coming to an end. Nationally, the asking rents on Trade Me were only up 1 per cent (excluding Christchurch where they were up 26 per cent) compared with the fourth quarter of 2011. Skipper believed many renters may have been taking advantage of low interest rates to buy their own homes and move out of the rental market. That would also have helped push up house prices, he said. Peter Thompson, a director of Auckland's largest real estate agency Barfoot & Thompson, said there was a good match between supply and demand of rental properties at the moment. "Traditionally January is our busiest month [for rentals] and what I've heard around the traps is that it's no exception this year. A lot of inquiry and activity is happening in the market. There's plenty of supply at the moment but that will be snapped up relatively quickly," he said. However he also believed there were signs that rent increases were starting to flatten out. Overall, rents were up about $10 a week compared with a year ago, he said. Harcourts chief executive Hayden Duncan said demand for rental properties was still strong in Christchurch and Auckland's inner suburbs. "We still have people looking for homes we can't supply, especially stand alone homes. But once you step out of those most sought after suburbs, then it's considerably softer," he said. New Zealand Property Investors Federation president Andrew King said investors would be concerned that house prices had been rising faster than rents making it difficult to find acceptable returns. - © Fairfax NZ News Excerpt: The median rent for a three-bedroom home increased by 5.7 per cent in 2012, or by around $20 a week. However, tenants in parts of Christchurch are paying $50 a week more. ### Rental properties - what is the property market doing? Source: NZ Herald - January 2013 This article was shared by the Auckland law firm conveyancing team at Quay Law. Renters could be in luck, as a turnaround in the market has seen a flood of listings and brought prices to a standstill including in some of the country's most desirable suburbs. Supply is outstripping demand for houses and apartments in almost all regions, according to Trade Me Property figures for October to December last year. The number of available listings has risen 8 per cent year-on-year, led by double digit growth in Manukau, North Shore, Wellington, and Hamilton. In Auckland, supply is up 8 per cent while demand dropped 18 per cent compared with the same time the previous year. Some of the city's most popular areas saw the most movement, with supply up 2 per cent and demand down 28 per cent in the CBD. Mt Eden supply was up 24 per cent and demand down 22 per cent, and supply in Remuera rose 21 per cent while demand dropped 17 per cent. The figures were a turnaround from the previous year, Trade Me head of property Brendon Skipper said. "In terms of supply, absolutely. If you take out Christchurch, demand has fallen away a little bit so there is a bit of a change of how people are in that rental market space," he said. The market could be the result of renters moving into the home ownership market and possibly people were staying put in their rentals longer than usual, Mr Skipper said. Real Estate Institute of New Zealand chief executive Helen O'Sullivan agreed and said the figures also reflected a time of year when many students left their flats and people were winding down, so were less likely to move. The figures are a strong contrast to early 2012 when demand for quality rental properties in central Auckland was at crisis point, with supply unable to keep up. Then, agents reported having up to 60 people turn up to viewings, and renters resorting to extreme measures such as offering above the rental asking price to beat the competition. As listing numbers have increased and interest from prospective tenants has decreased, prices have dropped off, said Mr Skipper. "As a result, the asking price for rentals is up by only 3 per cent, considerably below QV's recently reported 5.7 per cent increase in house prices." While the average rent has dropped by 2 per cent in Auckland, the Trade Me figures show a staggering 26 per cent jump in post-earthquake Christchurch. With thousands of homes quake damaged and ruled uninhabitable, the rental market has spiralled towards a crisis over the last two years. Tony Brazier of Braziers Property Management said January was traditionally his busiest month, but all of his university student properties were filled last August, and people are reluctant to give up their rental properties over fears they won't secure anything else. "We usually have about 150 people changing properties about now, but we've only got about 40 this year," said the Christchurch real estate agent. "When existing tenants are given the choice of staying at a higher rental or going into another rental, they're choosing to stay. They're scared of not having anything at all." Mr Brazier said demand remains unchanged, but there was only about a quarter of the supply. The influx of rebuild workers is putting extra strain on the already cramped market, he said, and alternative options need to be canvassed. Lodging could be a logical solution, along with purpose-built workers' villages - one of which has already secured building consent. However, rebuild work won't likely kick in until later in the year, and Mr Brazier was afraid it would bring even more pressures to the already strained marketplace. "We'll be in an even deeper pickle than we already are." Many landlords outside Christchurch were struggling in over-supplied rental markets, and may need to drop asking rents to lure tenants, said Mr Skipper. The exception was for student-friendly properties in university towns like Dunedin and Palmerston North as the annual flat-hunting season started. In spite of the figures, there was always demand for good-quality rentals in desirable suburbs, both Mr Skipper and Ms O'Sullivan said. Excerpt: Renters could be in luck, as a turnaround in the market has seen a flood of listings and brought prices to a standstill including in some of the country’s most desirable suburbs. ### Mortgages | fixed or floating? Shared by Auckland law firm Quay Law NZ Mortgages | fixed or floating? Shared by Auckland law firm Quay Law NZ Source: NZ Herald - 13 January 2013 Floating mortgage holders could save more than $700 million this year by switching to a two-year fixed rate, statistics show. A total of 916,142 floating mortgages were recorded nationwide in the most recent Reserve Bank statistics, paying an average of 5.79 per cent a year. But those who fixed their mortgages for two years had their rates drop to an average of 5.29 per cent. And brokers reported two-year rates as low as 4.9 per cent were common. First-home buyers could save even more by fixing their loans. The average new loan in Auckland is about $400,000. The difference in interest between a 5.79 per cent floating rate and a 5 per cent two-year fixed rate on a loan that size is $3160 a year. The total mortgage lending on floating rates is almost $98 billion, down on the almost $106 billion floating this time last year. Just over $80 billion in mortgage lending is on fixed rates. Economists say it makes sense to fix when the fixed rates are cheaper than floating and the official cash rate does not look set to rise. Westpac senior economist Felix Delbruck said fixing was better value. "Staying floating is only better if there are cuts to the OCR. That's a risk but we think rates are on hold for now." ANZ recommends splitting a mortgage into several portions with expiry dates of six months, one year and two years. An argument against fixing is that floating rates may be higher by the time the fixed period expires. But rates would have to rise substantially for that to happen, something experts peg as unlikely. ANZ said borrowers would need to expect the two-year rate to be at least 6.23 per cent in one year's time to make fixing for three years preferable to fixing for one year at a lower rate then refixing for two the next year. "That's quite a rise considering we expect the interest rate environment to remain fairly stable." Paul Bloxham, of HSBC, predicts a more gradual increase, with floating rates inching up this year and next year to reach 6.9 per cent by December 2015. Philip Macalister, publisher of Mortgagerates.co.nz, said it was unlikely the official cash rate would be increased. "The 90-day bank bill forecast graph in the December Monetary Policy Statement shows clearly how, over the past year, forecast increases kept getting pushed down each quarter. A year ago the bank was predicting the 90-day bill rate would be up at 4 per cent by March 2014. That forecast was wound back to 3.3 per cent in March, 3.2 per cent three months later and is now down at 2.8 per cent." But ANZ chief economist Cameron Bagrie said decisions were not always about break-even analyses and cashflow. Some people wanted the certainty of knowing exactly what their interest rates would be for as long as possible. "A lot of people value certainty and that can dominate the cashflow benefits when it comes time to make a decision." Mortgage brokers said they had been able to get rates as low as 5.7 per cent for four years and 5.85 per cent for five from most lenders when clients were borrowing more than $500,000. Squirrel's John Bolton said he was not a fan of people fixing for a long period unless their debt servicing was tight and they would struggle if rates moved. "I'm only doing longer term fixed for investors with more than three or four properties who are reliant on the rent for servicing. "With young buyers maybe looking to start a family I'm using the two- and three-year rates on the basis that mum goes back to work part-time, which is a reality in Auckland." Mortgage Supply Co's David Windler said only three loans were settled last month by his firm with a five-year fixed rate. But he said customers were not settling for anything less than good deals on interest rates. Auckland law firm | Quay Law NZ prides itself on its “open door” and friendly approach to business. A lawyer is usually available at short notice to assist you with your particular legal transaction or problem. We try to provide an approachable, friendly, efficient and professional service and to keep our clients’ best interests in mind. We welcome your enquiries and look forward to working with you. Contact our lawyers. Ph: (09) 5232408 Excerpt: Floating mortgage holders could save more than $700 million this year by switching to a two-year fixed rate, statistics show. ### Family Trusts - Protecting family members with special needs | legal tip shared by our Auckland lawyers Family Trust legal tip | Auckland law firm Family Trusts - Protecting family members with special needs. A family trust lets you put in place specific arrangements to look after a family member with special needs following your death. A family trust may also protect a child with special needs from other family members who may assume control of family assets when you die. About Quay Law - Lawyers in Auckland. Quay Law prides itself on its “open door” and friendly approach to business. We try to provide an approachable, friendly, efficient and professional service and to keep our clients’ best interests in mind. To download our Law Firm iPhone app Excerpt: A family trust lets you put in place specific arrangements to look after a family member with special needs following your death. ### Auckland House Prices and your Mortgage Source One News : January 10, 2013 Shared by the Property Law Team at Quay Law NZ - Your Mortgage Refinancing Specialists. Auckland house prices might have gone up by 9% last year but that doesn't mean first home buyers should feel like they're going to be tenants forever. There's still plenty of scope for you to buy in the big city. The headline grabbing price increases last year actually happened in central Auckland and the city fringe where your typical first home buyer isn't really looking. Well, not for a standalone house anyway. Having said that you will get (have got) a ripple effect where prices further out increase as people turn their attention to other compass points out of the central city so it's fair to say that first home buyers in Auckland will be paying more this year irrespective of where they look. That certainly makes buying property a bit harder but how much harder, exactly? I saw a great couple on January 7th who want to buy their first home. They're pretty typical of the people I see - married, renting in west Auckland, both working, two toddlers, one cat, the usual expenses including a student loan, credit card and childcare. They're hoping to buy in the low $400,000s and have the required 5% deposit most of which comes from Kiwisaver. If they fail to buy a place this year for $400,000 and prices rise by 9% again they'll need to shell out $436,000 a year later for the same thing. Sounds rough but if you look more closely it is manageable. In terms of loan repayments (and I'm going to assume interest rates are the same in Jan 2014 as they are now; not an unreasonable assumption) the additional burden amounts to $50 a week or thereabouts. Despite that this couple is still within ASB's affordability criteria. In deposit terms the 5% minimum required by the bank amounts to $21,800 on a $436,000 purchase price versus $20,000 on a $400,000 purchase price. Frankly, if you can afford to make higher loan repayments you can also save the extra bit of deposit required. My prospective clients have a bit more than this anyway so no worries there. While I acknowledge a price increase ups the ante in terms of deposit and loan payments, for a lot of people that won't be a deal breaker - especially when the possibility of some capital gain is on the table. Clearly 12 months ago was a better time to buy a house in Auckland because it would have been cheaper then. But don't let that stop you now. Talk to your mortgage broker, do your sums and if the dots connect then get moving. Excerpt: Auckland house prices might have gone up by 9% last year but that doesn’t mean first home buyers should feel like they’re going to be tenants forever. ### Auckland Property Values | Shared by the Conveyancers at Auckland Law Firm - Quay Law Property Report : Source QV New Zealand. Summary The property value index shows that nationwide values have increased 5.7% on last year, but it is clear that this rise does not represent increasing value across most of the country, but rather increases in Auckland. Looking at 2013, most areas values will remain relatively flat, although Auckland is likely to keep rising, particularly in the middle value range. Consumer confidence will affect how the market plays out, and by the end of February we should have a clearer idea of where the market is heading this year. Thursday, 10 January 2013 Nationwide values driven by Auckland Nationwide residential property values increased further in December according to the latest monthly property value index. Values are up 1.5% over the past three months, 5.7% up over the past year, and 2.0% above the previous market peak of late 2007. Jonno Ingerson, QV.co.nz Research Director said “Looking back over 2012 the increase in national values was predominantly driven by Auckland and to a lesser extent Christchurch. These were also the only two areas to have consistently increased while the rest of the country varied throughout the year.”” “The year began with the number of sales in January 29% higher than the previous year, the highest January since 2008. The trend continued throughout the year with most months 20% to 30% higher than 2011 and higher than any year since 2007.” “However, to put that in context, after the 2007 peak sales volumes were particularly low, so although volumes are now up from 2008 they are still 30% to 40% lower than during that 2003 to 2007 period when the market was flourishing. Furthermore, the increase in sales volumes was largely in the main centres, especially Auckland, as sales numbers in the smaller centres remained subdued” said Jonno Ingerson. “One of the defining features of 2012 was the low number of properties on the market. Many willing buyers found it hard to find suitable properties and this to some extent constrained sales volumes. As has been the case for the past several years, quality properties in desirable areas tended to sell quickly for good prices, while properties with perceived flaws either sat on the market or needed to be discounted” said Jonno Ingerson. Main centre comparison When comparing the main centres, it is clear that the national increase of 5.7% over the past year does not represent increasing value across most of the country, but rather increases in Auckland. North Shore, Waitakere and Manukau all increased by 8% to 9% and old Auckland City increased 11%. Across most of Auckland values are now well above the previous market peak of 2007, with old Auckland City 14.7% up. When adjusted for inflation this makes values in old Auckland City equal to the 2007 peak. Values in Christchurch also increased slightly more than the national average, driven by the post earthquake demand for undamaged houses. The areas surrounding Christchurch were about equal to Auckland in their value growth. The general trend for rest of the main centres was a flat start to the year, growth around mid-year then a faltering finish. As a result, most were little more than flat, with Dunedin increasing the most at 2.9% and Tauranga ending the year 0.3% down. Provincial centres Over the course of 2012 most of the provincial centres increased slightly in value, with all certainly well below the national figure of 5.7%. Palmerston North increased the most at 3.6%, followed by Queenstown Lakes at 2.9%. Whangarei dropped slightly in value while Gisborne slid for much of the year to end the year 5.3% down. There were no consistent trends throughout the year, however, several of the provincial centres showed signs of value increase in the middle to latter part of the year. However, like the main centres this faltered in the last few months of the year. Sales volumes also picked up in most of the provincial centres compared to 2011 but generally remained well below peak volumes seen in 2003 to 2006. The major exceptions were Queenstown Lakes and Nelson where sales volumes are very close to previous peak levels. The outlook for 2013 The year has begun with supply still constrained due to a low number of new listings. In Auckland in particular people are in a vicious cycle where they won’t put their properties on the market until they find a new house, but they can’t find a new house as there are few on the market.. With supply low and strong competition for quality properties many would-be buyers are missing out so their houses are not yet on the market. This dynamic would need to change in order for the number of sales to pick up. With Auckland likely to continue to get more internal and external migration than other parts of the country the demand for housing is not likely to ease in the short term. Values in Auckland are likely to keep rising, particularly in the middle value range. We have already seen values in many of the more expensive suburbs ($900k+ average value) begin to level off. The Wellington area has suffered in the last few years from a lack of confidence in the housing market, at least in part relating to uncertainty for some around public service restructuring. It is unlikely that mood will change in Wellington in the short term so values are likely to stay relatively flat. Values in Christchurch and the surrounding areas are likely to keep growing as demand continues to outstrip supply. The rest of the country looks to remain variable in response to local economic conditions, but in most areas values will remain relatively flat. The housing market does ebb and flow in response to consumer confidence. In the last few years we have seen a change in confidence in the New Year, either positive or negative, and this has flowed into the property market. Changes in consumer confidence are hard to predict but by the end of February we should have a clearer idea of where the market is heading in 2013. This report is provided to you by Auckland Property Lawyers | Quay Law Excerpt: The property value index shows that nationwide values have increased 5.7% on last year, but it is clear that this rise does not represent increasing value across most of the country ### Key questions to ask - Family Trusts | Auckland law firm Legal tip from our Auckland law firm legal team. When it comes to family trusts, you have to think about a few key questions: 1. Should you have a family trust? and if yes; 2. How is a family trust established, and which is the best way to structure your trust? 3. What are the ongoing administration and management requirements? These are the questions that our Auckland trust lawyers answer during your initial meeting at Quay law. During this meeting the fees associated with your particular needs are discussed. Our law firm endeavours to keep our costs reasonable and competitive. Quay Law prides itself on its “open door” and friendly approach to business. We try to provide an approachable, friendly, efficient and professional service and to keep our clients’ best interests in mind. Ph 09 5232408 Excerpt: Legal tip from our Auckland law firm legal team. When it comes to family trusts, you have to think about a few key questions ### A Family Trust - greater flexibility than a Will? | A legal tip from our Solicitors A Trust - Greater flexibility than a Will? You can leave your personal assets to a trust rather than directly to named family members when you die. This gives more flexibility than a conventional will. The trustee of a trust can then decide when to make payments to the trust’s beneficiaries and even whether to make such payments available at all. This legal tip is provided by the solicitors at Quay Law. Our Auckland law firm currently serves clients in most areas of law, including: Real estate, Property law and conveyancing Commercial law Wills and Estates Trust law (establishing and breaking) Relationship property matters and matrimonial Social Media law Taxation | IRD Commercial Property and Leases Please feel free to ask our lawyers about our legal fees. We endeavour to keep our costs reasonable and competitive. Quay Law prides itself on its "open door" and friendly approach to business. Someone is usually available at short notice to assist you with your particular transaction or problem. We try to provide an approachable, friendly, efficient and professional service and to keep our clients' best interests in mind. Our contact number 09 5232408 Excerpt: You can leave your personal assets to a trust rather than directly to named family members when you die. This gives more flexibility than a conventional will. ### Your Will and Facebook It is prudent to regularly review your Will to cater for changing circumstances in your life. Have you considered making reference to your Facebook and other social media accounts. Who should control these once you have passed away? If you have not taken your social media accounts into consideration when drafting your Will, our Auckland legal team would be well placed to assist you if necessary. Ian Mellett Principal and Lawyer at Auckland law firm Quay Law. Facebook and Social Media Law Contact Us Excerpt: It is prudent to regularly review your Will to cater for changing circumstances in your life. ### Happy New Year from the team at Auckland Law Firm | Quay Law. The team and lawyers at Quay Law wish you and your nearest and dearest a New Year full of success and good tidings. Happy 2013! Regards Ian Mellett and the Auckland law firm team Excerpt: The team and lawyers at Quay Law wish you and your nearest and dearest a New Year full of success and good tidings. ### Family Trusts and the Role of the Independent Trustee Some items to consider as an Independent trustee on a Family Trust. But first, who could be an independent trustee on a family trust. This role could be filled by either an individual, or a company, as long as these persons or entities are not beneficiaries of the trust. If you are an independent trustee on a trust, have you limited your liability to the assets of the trust? When you resign as a trustee, does your personal responsibility end with your resignation? As a trustee are you taking an active part in the decision making process and do you meet at least once a year? You have a responsibility to all the beneficiaries of the trust. For more information or to discuss further with a trust and asset planning professional please contact the team at Auckland law firm Quay Law. Excerpt: Some items to consider as an Independent trustee on a Family Trust. But first, who could be an independent trustee on a family trust. ### Questions to ask about leasehold | shared by Auckland Property Law Firm Questions to ask about Leasehold properties and land shared by Ian Mellett | property law firm in Auckland | Quay Law •When are the reviews? •How is the value of the land determined? Is it considered bare land or developed? •How possible is it to buy the lease? And when? •How hard might it be to sell the property? •Are there land restrictions? (ie. no sleepout or added buildings) To speak to a property lawyer contact the Quay Law team. Ph 09-5232408 Excerpt: Questions to ask about Leasehold properties and land shared by Ian Mellett | property law firm in Auckland | Quay Law ### Do you have an iPhone? Download our Auckland law firm - Quay Law NZ Mobile App Please click on link to download our Auckland law firm mobile app. Quay Law is an Auckland law firm specializing in family trusts, wills, commercial, tax, property (conveyancing), family trusts, immigration and legal services. Quay Law Business Card iPhone App Excerpt: Please click on link to download our Auckland law firm mobile app. Quay Law is an Auckland law firm specializing in family trusts, wills, commercial, tax, property (conveyancing), family trusts, immigration and legal services. ### Are leasehold properties a good buy? Shared by Auckland lawyers | Quay Law Are leasehold properties a good buy? 22/12/2012 This article shared with you by the Auckland conveyancing team at Quay Law. Please contact our approachable lawyers if you have any questions. Most Kiwi property owners aspire to own both their house and the land, but there is another option which is miles cheaper. It's called leasehold, where the homeowner only owns the building and rents the land. More commonly used for rural and commercial properties, leasehold residences are scattered around the country, often owned by church groups or councils. But they are most visible in central Auckland where about 15 per cent of the central city's apartments are thought to be on leasehold land. The allure of leasehold is easy to see. In a city where freehold apartments cost about $7000 per sq m to build, leasehold apartment values have tumbled to about $2000 per sq m. However, there's a good reason why leasehold prices have plummeted. The annual "ground rent" is subject to review every seven or 21 years, depending on the lease. Rent reviews are usually based on a fixed percentage of the land value and with Auckland's soaring land prices, they can be a shock. Olly Newland, an Auckland property commentator and investor, is not a fan. He recommends people steer clear of leasehold. Leasehold land was a good idea 100 years ago because they used to have what is known as Glasgow leases which went forever and were reviewed every 21 years, when inflation or your land price, were flat, he said. "And so there were just gentle increases every 21 years. It was a cheap way for people buy farms or houses. But it all screwed up in the last 50 years when land prices roared up and the rent went with it. So it's a very bad investment now." Kelvin Horspool invested in a one-bedroom apartment in Scene 3, a swish apartment complex on Maori land in Auckland. Apartment owners were given a rent holiday for the first seven years but now its iwi owners want to start charging ground rent. Scene 3's penthouse was sold off the plans for $780,000 and was passed in at auction recently at $330,000. Horspool says he has no beef with the Maori land owners, as he was well aware of the fine print in his contract. However, he suspects many of his fellow apartment owners - some of whom are reportedly Australian investors - were less well-informed. "New Zealanders, in my opinion, can be quite naive in leasehold situations. Take Australia, they've got very little in terms of residential leasehold…but around the rest of the world, leasehold is very popular because it's the only way people can buy into houses." Martin Dunn, of Auckland real estate agency City Sails, blames the plunge in Auckland leasehold values on property "spruikers" who sold the apartments at inflated, virtually freehold prices. "I will say that we have never sold leasehold apartments off the plans," he explains. "We say that a leasehold investment is an oxymoron, like a fun run. It's a conflict of terms." Dunn believes the entire leasehold market will eventually convert to owner-occupier status. In the meantime, he says there is a place for leasehold, particularly with Chinese buyers who are familiar with the concept, and with young people who would be otherwise priced off the property ladder. Prices have gotten to the point in his view where they are almost "irresistible" but they are still failing to gain traction. A two bedroom, two-bathroom apartment Dunn knows of, with a tennis court, gym and carpark, sold for $350,000 four years ago, and is now a snip at $120,000, although the building has some remedial issues. "Now the outgoings would be $10,000 but if you bought that and got a flatmate in, the flatmate would pay you $200 a week, that would cover your ground rent…How cheap does that have to get?" However, there are a couple of considerations. The first is that it's harder to get a mortgage because it's secured against the building alone, requiring a bigger deposit. The retail banks are less keen on lending against leasehold property. The other is that there is always a day of reckoning if the ground rent goes up or the owner wants to exit. And for those currently trying to get out of their lease, the length of time is a crucial factor. If a rent review is due in a year, the apartment's rental situation may well have lost much of its lustre. On the other hand, if it's a 21-year rent review and there are many years to go, a prospective owner might take a punt that land inflation is slowing down and that the eventual rent increase will be small. Most leases are in perpetuity, although some on Princes Wharf are limited to 70 or 90 years. That gives you security but also means that your only exit options are to sell or illegally walk away. However, if you've saved a few quid in your cheaper home, there may be another option: an offer from the landlord to buy the property (the land). This has often happened with religious land owners who don't want the image of being a "greedy landlord," says Newland. He agrees that freeholding the land quickly, before land prices go up further, might be a short-term cheap way to get a decent property. But he couldn't recommend it. "There's always another sucker who just goes for the price and doesn't think about it." Questions to ask about leasehold •When are the reviews? •How is the value of the land determined? Is it considered bare land or developed? •How possible is it to buy the lease? And when? •How hard might it be to sell the property? •Are there land restrictions? (ie. no sleepout or added buildings) - © Fairfax NZ News Excerpt: This article shared with you by the Auckland conveyancing team at Quay Law. Please contact our approachable lawyers if you have any questions. ### NZ's hugest property growth towns and suburbs | shared by our Auckland Conveyancing Team NZ's highest growth towns and suburbs 23/12/2012 The housing boom is turning many country towns into real estate hotspots as home buyers search for cheaper alternatives to skyrocketing city prices. Figures compiled by the Sunday Star-Times show the country's hottest residential property market is in Foxton, a small North Island town 20 kilometres north of Levin. According to figures from the Real Estate Institute of New Zealand, the median selling price of homes in Foxton was $180,000 last month, a massive 59 per cent increase on the $113,500 median price in November last year. Over the same period the number of homes being sold in the town has more than doubled. In the 12 months to November 2011, only 34 homes were sold in the town, but in the 12 months to November this year the number of sales jumped to 77. The figures do not appear to be an anomaly. Also rating highly on the Sunday Star-Times' list of top-20 real estate hotspots were nearby Foxton Beach and Waikanae Beach. Other small towns to feature on the list were Arrowtown and Darfield in the South Island, Helensville on Auckland's northern outskirts, and Oneroa on Waiheke Island. Given the way the Auckland property market has grown this past year, it is surprising that only four central suburbs made the list: Mt Roskill, Parnell, Grafton and Epsom. To be included on our list, suburbs or localities had to have recorded an increase in their median price of at least 30 per cent between November 2011 and November 2012 and a minimum 30 per cent increase in the number of sales in the 12 months to November. That made those locations true hotspots because not only were their prices rising strongly, so were the number of homes being sold, meaning the overall real estate activity in these areas was outstripping activity in other parts of the country. Over the same periods, the national median price increased by 4.3 per cent, while the number of homes sold increased by 8.2 per cent. REINZ chief executive Helen O'Sullivan said for sales activity in towns like Foxton to increase so much in a 12-month period was "quite remarkable". "We are seeing a lot of what are called displacement effects, where people say, ‘OK, I've got $400,000 to spend, what can I get for that'," she said. That included looking at options outside of the main centres and weighing up the pros and cons. "People are prepared to make more of a compromise on things like travelling times in order not to have to compromise on space," O'Sullivan said. That was often helped by the fact that many employers were prepared to help with flexible working hours, which allowed people to avoid rush-hour traffic when they needed to commute into the city, and the growth of technology which allowed people to work from home, she said. O'Sullivan does not see the current property boom changing much in the coming year. "It's going to be interesting. In Auckland and Christchurch, supply issues are going to continue to be a problem." She said that over the five years from 2003 to 2008, the number of homes sold each year was equivalent to about 6 per cent of the total housing stock but now it was running at only 4 per cent. O'Sullivan said she expected the housing market to continue to firm in 2013, "but probably at a slightly slower pace". SMALL-TOWN TIME WARP Wendy Voyce was spending as much time out of Palmerston North as she could. The weather was getting to the mother-of-three. The cost of living was getting to her, too; and the children, she thought, were not as happy as they could be. She had lived and worked in the North Island city for years but last December, after increasingly heading to the beach for the weekends, Voyce started wondering why they didn't just pack up and leave. There was good weather at Foxton Beach. There was great fishing and friendly people too, she said. Whenever she went into a shop they seemed glad to see her. It was almost like a time warp - one with wonderful sunsets and million-dollar views. "But you're not paying for them. Why wouldn't you move?" Last December she answered that question definitively. The family sold their three bedroom home in Palmerston North for $280,000 and bought a much larger two-storey home on 800 square metres for $60,000 less. Voyce said the kids were now happier, her partner commutes the short 30 minutes to Palmerston North and she still felt like she was on a holiday. "There is so much to do here but it is back to basics." Instead of trips to the mall or paying for go-karting and 10-pin bowling, they go walking in the forest or searching for tadpoles. Voyce's decision has helped boost the country's residential market. According to data from the Real Estate Institute of New Zealand, crunched by the Sunday Star-Times, smaller cities and towns have increasingly turned up in the top places in New Zealand for increases in sales and year-on-year price increases. Over the past year, both Foxton Beach and Foxton have seen big increases in the number of residential sales and the prices paid for them. The trend is echoed in many towns on the outskirts of larger metropolitan areas. Owner of Ray White Foxton, Ellen Graham, said the location was previously known as a gang town. Now, however, it was seen as a place for both commuters and retired farmers looking for a simpler life. "I've been selling crap out there which is crap but people want to pay half a million," she said. Members of the older generation who had held on to sections they bought for $30,000 can now sell them for $400,000. Amanda Street, who was born and bred in the area, bought her first house in the early 2000s for $73,000 and sold it five years later for $180,000. Now she is selling subdivisions on a larger property she bought with the profit from that first acquisition. "You can buy at a reasonable price, earn the city money, commute and live at the beach," she said. "I'm only leaving here in a coffin." Helensville, 40km north-west of Auckland, has also seen a boost in sales. Mark van Lent, Helensville manager for Barfoot & Thompson, said the prices in central Auckland had helped push families further out. "You can still buy a reasonable three-bedroom home in the $300,000s [in Helensville] and it's not that far out." For many families who worked on the North Shore, 35 minutes away, it was a more attractive option, he said. "It's to do with affordability." In Darfield, Canterbury, the Christchurch earthquake was behind a similar trend. Some had come from the city but others were transferring from as far away as Auckland for a different and cheaper lifestyle, said Devlin Real Estate sales representative Annie Smith. "There is an awful lot of unknown and they like to go to something that is quite solid." Christchurch Airport was only about 25 minutes away, and Darfield was a good alternative for people who did not want to live in a big city. "It is unseen and unspoiled. Whereas Rolleston and Rangiora had an immediate boost after the earthquakes and are now seen to be a bit overcrowded, we don't have that in Darfield. "We are still seen as rural." - © Fairfax NZ News New Zealand's hugest property growth towns and suburbs | shared by our Auckland Conveyancing Team at Quay Law. Excerpt: The housing boom is turning many country towns into real estate hotspots as home buyers search for cheaper alternatives to skyrocketing city prices. ### NZ's hugest property growth towns and suburbs | shared by our Auckland Conveyancing Team NZ's highest growth towns and suburbs 23/12/2012 The housing boom is turning many country towns into real estate hotspots as home buyers search for cheaper alternatives to skyrocketing city prices. Figures compiled by the Sunday Star-Times show the country's hottest residential property market is in Foxton, a small North Island town 20 kilometres north of Levin. According to figures from the Real Estate Institute of New Zealand, the median selling price of homes in Foxton was $180,000 last month, a massive 59 per cent increase on the $113,500 median price in November last year. Over the same period the number of homes being sold in the town has more than doubled. In the 12 months to November 2011, only 34 homes were sold in the town, but in the 12 months to November this year the number of sales jumped to 77. The figures do not appear to be an anomaly. Also rating highly on the Sunday Star-Times' list of top-20 real estate hotspots were nearby Foxton Beach and Waikanae Beach. Other small towns to feature on the list were Arrowtown and Darfield in the South Island, Helensville on Auckland's northern outskirts, and Oneroa on Waiheke Island. Given the way the Auckland property market has grown this past year, it is surprising that only four central suburbs made the list: Mt Roskill, Parnell, Grafton and Epsom. To be included on our list, suburbs or localities had to have recorded an increase in their median price of at least 30 per cent between November 2011 and November 2012 and a minimum 30 per cent increase in the number of sales in the 12 months to November. That made those locations true hotspots because not only were their prices rising strongly, so were the number of homes being sold, meaning the overall real estate activity in these areas was outstripping activity in other parts of the country. Over the same periods, the national median price increased by 4.3 per cent, while the number of homes sold increased by 8.2 per cent. REINZ chief executive Helen O'Sullivan said for sales activity in towns like Foxton to increase so much in a 12-month period was "quite remarkable". "We are seeing a lot of what are called displacement effects, where people say, ‘OK, I've got $400,000 to spend, what can I get for that'," she said. That included looking at options outside of the main centres and weighing up the pros and cons. "People are prepared to make more of a compromise on things like travelling times in order not to have to compromise on space," O'Sullivan said. That was often helped by the fact that many employers were prepared to help with flexible working hours, which allowed people to avoid rush-hour traffic when they needed to commute into the city, and the growth of technology which allowed people to work from home, she said. O'Sullivan does not see the current property boom changing much in the coming year. "It's going to be interesting. In Auckland and Christchurch, supply issues are going to continue to be a problem." She said that over the five years from 2003 to 2008, the number of homes sold each year was equivalent to about 6 per cent of the total housing stock but now it was running at only 4 per cent. O'Sullivan said she expected the housing market to continue to firm in 2013, "but probably at a slightly slower pace". SMALL-TOWN TIME WARP Wendy Voyce was spending as much time out of Palmerston North as she could. The weather was getting to the mother-of-three. The cost of living was getting to her, too; and the children, she thought, were not as happy as they could be. She had lived and worked in the North Island city for years but last December, after increasingly heading to the beach for the weekends, Voyce started wondering why they didn't just pack up and leave. There was good weather at Foxton Beach. There was great fishing and friendly people too, she said. Whenever she went into a shop they seemed glad to see her. It was almost like a time warp - one with wonderful sunsets and million-dollar views. "But you're not paying for them. Why wouldn't you move?" Last December she answered that question definitively. The family sold their three bedroom home in Palmerston North for $280,000 and bought a much larger two-storey home on 800 square metres for $60,000 less. Voyce said the kids were now happier, her partner commutes the short 30 minutes to Palmerston North and she still felt like she was on a holiday. "There is so much to do here but it is back to basics." Instead of trips to the mall or paying for go-karting and 10-pin bowling, they go walking in the forest or searching for tadpoles. Voyce's decision has helped boost the country's residential market. According to data from the Real Estate Institute of New Zealand, crunched by the Sunday Star-Times, smaller cities and towns have increasingly turned up in the top places in New Zealand for increases in sales and year-on-year price increases. Over the past year, both Foxton Beach and Foxton have seen big increases in the number of residential sales and the prices paid for them. The trend is echoed in many towns on the outskirts of larger metropolitan areas. Owner of Ray White Foxton, Ellen Graham, said the location was previously known as a gang town. Now, however, it was seen as a place for both commuters and retired farmers looking for a simpler life. "I've been selling crap out there which is crap but people want to pay half a million," she said. Members of the older generation who had held on to sections they bought for $30,000 can now sell them for $400,000. Amanda Street, who was born and bred in the area, bought her first house in the early 2000s for $73,000 and sold it five years later for $180,000. Now she is selling subdivisions on a larger property she bought with the profit from that first acquisition. "You can buy at a reasonable price, earn the city money, commute and live at the beach," she said. "I'm only leaving here in a coffin." Helensville, 40km north-west of Auckland, has also seen a boost in sales. Mark van Lent, Helensville manager for Barfoot & Thompson, said the prices in central Auckland had helped push families further out. "You can still buy a reasonable three-bedroom home in the $300,000s [in Helensville] and it's not that far out." For many families who worked on the North Shore, 35 minutes away, it was a more attractive option, he said. "It's to do with affordability." In Darfield, Canterbury, the Christchurch earthquake was behind a similar trend. Some had come from the city but others were transferring from as far away as Auckland for a different and cheaper lifestyle, said Devlin Real Estate sales representative Annie Smith. "There is an awful lot of unknown and they like to go to something that is quite solid." Christchurch Airport was only about 25 minutes away, and Darfield was a good alternative for people who did not want to live in a big city. "It is unseen and unspoiled. Whereas Rolleston and Rangiora had an immediate boost after the earthquakes and are now seen to be a bit overcrowded, we don't have that in Darfield. "We are still seen as rural." - © Fairfax NZ News New Zealand's hugest property growth towns and suburbs | shared by our Auckland Conveyancing Team at Quay Law. Excerpt: The housing boom is turning many country towns into real estate hotspots as home buyers search for cheaper alternatives to skyrocketing city prices. ### Administration of an Estate - What the Executor should consider | Auckland law firm - Quay Law Administration of an Estate – Checklist for the Executor written by Auckland lawyer - Ian Mellett of Quay Law Often our approachable legal team at Quay Law are questioned about the responsibility's of an Executor. We hope you find this checklist of value to you and please do not hesitate to be in contact should you have any questions. Background When somebody dies, his or her will should be read to ensure that you understand the will maker’s intent. The people named in the will as executors then apply to the High Court for a probate order confirming the will and giving them authority to deal with the estate. If the estate is small then probate may not be required and the pros and cons of this scenario should be discussed with your New Zealand lawyer. If however, you die without a will or your will is deemed to be ineffective, then you are said to have died intestate. In this event, legislation applies and application needs to be made to the High Court for letters of administration. Under these circumstances, legislation governs who is entitled to benefit from the estate. This could result in the deceased’s wishes not being fulfilled. Dying intestate can be costly. Executor or Trustee of a Will If a Last Will and Testament exists, it will refer to the Executor. This is a legal term referring to a person named or nominated by the will maker, to carry out the directions of the will. You will be required to be guided by tax laws, inheritance laws, property law, court procedures and naturally the demands of the beneficiaries. You are held accountable for carrying out your role properly. A lawyer is there to assist you with your duties and to protect you in this role. Estate administration often involves delays but the majority of estates are administered in an effective and timely fashion. What should you provide to your lawyer? Original Will, if not already in their possession Bank account details including bank statements, cheque books, credit cards held in the sole name of the deceased Shared bank account details. Life insurance policies. General insurance policies on the house, contents, vehicles, funeral or businesses. Birth certificate. Marriage certificate. Death certificate. IRD numbers and current statements. Work and Income beneficiary number and any correspondence from Work and Income. Addresses and IRD numbers for all children and beneficiaries of the estate. Drivers licences. Passport. Funeral account. Deceased’s interests in other estates and trust. Deceased’s business interests. Portfolio of investments / assets. * This list is not an exhaustive list. Some additional items to consider. Is there a safe deposit box? Did the Will contain special funeral instructions? List of outstanding household accounts e.g. water, lights, electricity, council rates. Are there any considerations that need to be taken into account e.g. changing locks on residences, arranging for the safe custody of personal valuables or important documents? If there is a property portfolio, is there adequate property management in place? Care of business if a one person business. Social Media profiles and passwords if available. Prepared list of assets not covered already. Prepared list of liabilities not covered already. Cancellation of club memberships, subscriptions, health insurance etc. Identification of personal items that have been bequeathed to specific parties and receipts for their delivery to those parties. What should happen to pets if not allowed for within the will? Should you need any assistance in relation to Wills and Estate Administration, please contact Auckland lawyer Ian Mellett at Quay Law Barrister and Solicitor. He is located in the Auckland suburb of Remuera. Our Quay Law contact details: Phone: +64 9 5232408 Web: www.lawyerinauckland.co.nz Connect with us on      Twitter               |                 Facebook UNAUTHORISED USE. The contents of this article may be subject to copyright, legally privileged and confidential. Any unauthorised use, distribution or copying of the contents is expressly prohibited. Excerpt: Administration of an Estate – Checklist for the Executor written by Auckland lawyer – Ian Mellett of Quay Law ### QV property trends shared by Auckland Conveyancing Lawyer Source. QV.nz Shared by the team of conveyancing specialists at Auckland law firm - Quay Law. QV property trends shows that nationwide values have continued to climb in November, up 1.9% over the past three months. Values are now 1.5% above the previous market peak of late 2007. Excerpt: Shared by the team of conveyancing specialists at Auckland law firm – Quay Law. ### A recent NZ Property Report as shared by Auckland Lawyer - Ian Mellett of Quay Law Quay Law : Ph 09 5232408 Please find below a recent report as releasesd by realestate. co .nz. The conveyancing legal team at Auckland law firm Quay Law share this report with you for your interest. At Quay Law our property lawyers / conveyancers understand that property conveyancing transactions are diverse and can range from the sale or purchase of a residential house or apartment to something more complex. The more information that both the property buyer and property seller have to ensure a positive outcome for their own personal circumstances - the better. Asking prices reach new high • Asking prices rose to a new high of $445,529 up 4% in the month and up 5% as compared to a year ago. Record high asking prices were also seen in both Auckland and Canterbury. Significant rise in new listings • New listings rose significantly in October with 12,688bought to the market. As compared to October last year, new listings are up 12%. And listings are up 14% from September. Inventory levels rise • The stock of unsold houses in October rose slightly to 33.1 weeks of stock (based on the rate of sale). This increase was witnessed by 17 of the 19 regions. However is still well down on the long-term average of 39 weeks (9 months), and down 19% on October2011. Market still favours sellers • Across the country the inventory levels eased in October, but continue to sit below long-termaverages indicating a continuing tight market; this is more pronounced in Auckland and Canterbury. Commentary The property market continues to show signs of confidence and heightened activity as compared to the past few years. The confidence amongst sellers bringing their properties onto the market has pushed up the (seasonally adjusted) truncated mean asking price to a new high of $445,529 – the highest level since the collection of data began in 2007. This rise in asking price was noticeable right across the country, with Auckland reaching a new record high of $611,864, and Canterbury reaching a new high of $414,070. October saw a good rise in new listings (up 12% on October 2011), and this rise has lead to some balancing of the property market in both Wellington and a number of provincial regions. While inventory levels across the country balanced in October, the market remains a firm sellers market across 12 of NZ’s 19 regions. Overall stocks of unsold houses rose slightly to 33 weeks of inventory (long term average = 40 weeks). Both Auckland and Canterbury remain firmly sellers markets, with overall inventory levels continuing to remain well below long-term averages. The next data for November will be interesting to review as to the final flush of new listings coming onto the market in Spring – November is traditionally one of the biggest listings months of the year. Last year that total was just over 13,000 – that at a time when inventory was considerably higher than today. Asking Price The seasonally adjusted truncated mean asking price for listings rose 4% (from September) to an all time high of $445,529 in October. This new record asking price level was up from the prior peak of $435,887 reached in May this year. The trend as seen in the chart opposite continues to show strength in seller expectation and strong demand in the main centers. New Listings The level of new listings coming onto the market in October continued to increase, with 12,688 listings in the month - up from 11,514 in September (14% increase). October also saw big increases on last year, with an increase of 12% in listings. On a 12 month moving total basis the number of new listings that have come onto the market in the last year totals 132,291, as compared to 124,503 in the prior 12 month period, this represents a rise of 6.3%. Inventory The level of unsold houses on the market at the end of October (43,921) remained stable, when compared to September (44,063) as measured on a seasonally adjusted basis. The inventory as measured in terms of equivalent weeks of sales rose last month to 33.1 weeks last month. This rise was witnessed across 17 of the 19 regions. But overall inventory levels still fell well below the longterm average of 39 weeks. For more click on link below. PDF of the REALESTATE.co.nz report To contact Auckland law firm - Quay Law please visit our property Website or call (09) 5232408. Excerpt: Please find below a recent report as releasesd by realestate. co .nz. The conveyancing legal team at Auckland law firm Quay Law share this report with you for your interest. ### Pros and Cons of Purchasing a Leasehold Property | Conveyancing in Auckland Lawyers What is leasehold land? Leasehold is a form of property ownership whereby you own the buildings and any other improvements on the site, but you lease or rent the land from a land owner. Each leasehold property needs to be assessed on its own merits as not all leases are the same. To discuss the pros and cons of purchasing a leasehold property with an approachable conveyancing lawyer in Auckland please contact Ian Mellett of Auckland law firm Quay Law. See article below for recent press news. Source NZ Herald October 2012 Angry Auckland apartment owners are rallying against a 470 per cent leasehold land bill rise. Scene Three owners, previously paying $1400/unit annually for one-bedroom places, are now faced with $8000/unit bills payable to landowner Ngati Whatua o Orakei Maori Trust Board which this year won a valuation arbitration on its Quay Park land, allowing it to charge much higher fees. Kelvin Horspool, an investor with a one-bedroom Scene Three apartment in the 164-unit block, has started a support group. About 40 to 50 owners want to force changes so their bills are cut but they are also upset about the legal management structure, fearing the once-desirable 16-level Beach Rd block near the Countdown will deteriorate. Apartment owner Richard Lamb had dire predictions, after Scene Three's penthouse unit 1601, with a $625,000 CV, sold for $330,000. Lamb bought his apartment two years ago for 60 per cent of CV, a reflection he said of leasehold bill uncertainty. "There was also some comment about Maori land," Lamb said. "I took heart in the land being Maori owned. "I anticipated a long-term view on the asset. "I believed that a generally mutually rewarding situation over time would yield the greatest long-term return for the intended beneficiaries." But Ngati Whatua's valuation win amounted to it taking "absolute top short-term dollar", he said. "The asset will be devalued over time, so the lease return will fall as the area becomes neglected and abandoned by lease holders, especially retailers and businesses." Tiwana Tibble, the former board chief executive, vowed two years ago to receive what it was due and encouraged early negotiations to avoid conflict. "If you want to arbitrate, you want to think about that quite seriously. It's a very costly exercise. If we can reach agreements, we're better off. The last resort is to go to the lawyers." Scene Three residents complained this month that many owners lived in Australia and said it was hard to contact each other. About 88 per cent of owners are non-residents and rent their units out. Neal McCarthy said his unit was cheap due to outstanding rentals. "We have agreed to pick up the outstanding back [leasehold ground] rentals. This effectively will add who knows? It could be $20,000-plus dollars," he said. A valuer warned against buying residential leasehold property. "I don't allow my clients to buy leasehold land," said Munroe Graham of Epsom's Auckland Valuations. "I tell them not to," he said. Graham said he had worked in the industry since the 1960s and knew of many cases where leaseholders had walked away from their buildings when land rents increased. •Scene Three owners can email Kelvin Horspool at horspool@xtra.co.nz To Contact an apporachable conveyancer at Auckland law firm Quay Law Excerpt: Leasehold is a form of property ownership whereby you own the buildings and any other improvements on the site, but you lease or rent the land from a land owner. ### Auckland Law Firm | The conveyancer for your next conveyancing transaction A conveyancer is a specialist lawyer who specialises in the legal aspects of buying and selling real property, or conveyancing. For your conveyancing requirements please contact The Approachable Conveyancer at Quay Law in Auckland. Excerpt: A conveyancer is a specialist lawyer who specialises in the legal aspects of buying and selling real property ### Property Law and Conveyancing |Contact a Quay Law Conveyancer in Auckland At Auckland law firm Quay Law our property lawyers understand that property refinancing and conveyancing transactions are diverse and can range from the sale or purchase of a residential house or apartment to something more complex. Transactions may focus on any property market be it retail, office, industrial, retirement villages, residential or rural. To this end, we have dedicated a website to Property Law and Conveyancing in New Zealand. Our experienced legal team have expertise in the area of structuring property investments and are able to advise you as to appropriate structures for your commercial or private requirements. For more information on your property law nz enquiry or current / next conveyancing transaction (whether this be you buying or selling a property), please contact a conveyancer at Quay law. Excerpt: At Auckland law firm Quay Law our property lawyers understand that property refinancing and conveyancing transactions are diverse ### Auckland law firm and lawyers | Purchasing a property at a mortgagee sale Mortgagee auctions differ in that these types of auctions usually result from the existing owner having defaulted on their property / mortgage loan repayment. Purchasing a property at a mortgagee sale carries additional risks for the purchaser and we have highlighted some of these in a previous Quay Law legal tip post (click link) Below you will find an article out of today's newspaper. Should you wish to discuss your property sale or purchase with a conveyancer please contact the team of property lawyers at Auckland law firm Quay Law. The real estate agents call it "an opportunity like no other" and they're not exaggerating. The multimillion-dollar home in the Wellington suburb of Mt Victoria has spectacular views of the harbour and the city. It also has a heavily tattooed occupant who declares it is his home, it is not for sale, and he is not leaving. The house at 48 McFarlane St, next door to the old St Gerard's Monastery, used to belong to imprisoned tax fraudsters David Rowley and Barrie Skinner, who bought it two years ago for $2,130,000. Now it's available in a mortgagee sale, advertised with the words: "If you are prepared to take on a challenge, it could be yours too." Real estate company Harcourts is rather guarded about the condition of the house, declaring: "The exterior appears intact but the interior appears not to be." But there's no chance to check it out: "There will be no appointments for viewing and any inspection will only be possible from the outside." Agent John Callam said that photographs taken inside the house about three weeks ago, when it was vacant, indicated the kitchen had been ripped out and that floorboards had been pulled up in many of the rooms. As for the resident, would-be buyers would have to take into account that it was not being sold with vacant possession and they would have to get their own legal advice on how to deal with that. Mr Callam had no idea what effect all this might have on the sale price. The property has a 2009 rating value of $1,850,000. Westpac, which holds a mortgage on the property, had given its solicitors instructions to sell, Mr Callam said, and such hazards were not uncommon with mortgagee sales. "It is what it is and we have to deal with it." When The Dominion Post visited the house this week, there was a Maori sovereignty flag in an upstairs window and the man who came to the door said he partly owned the property. The man, who would not give his name, said: "At this present time, this house is not for sale. "I'm just going to renovate the whole thing out and nothing's happening with the house." So if someone bought it in a mortgagee sale, what would happen? "Well, we'll see about that then," the man said. The man laughed at the suggestion that a buyer might get more than they bargained for. Property lawyer Peter Barrett said there were all sorts of hazards with mortgagee sales when properties were sold "as is, where is". Potential buyers needed to do their homework, as such deals were unconditional. There were no guarantees or comeback on the vendor, the property might not be insured and, if someone was living in the house at the time the property was transferred, the buyer might have to seek an eviction. Former accountants Rowley and Skinner are now serving 8 years and 8 years respectively after being found guilty in July of a multimillion-dollar fraud against Inland Revenue. © Fairfax NZ News Excerpt: Mortgagee auctions differ in that these types of auctions usually result from the existing owner having defaulted on their property / mortgage loan repayment. ### Auckland Law Firm | The Professional Trustee on a Trust What is the role of the Professional Trustee on a Trust? A Professional Trustee is a person or company who acts as a Trustee alongside the other Trustees. Their role is to ensure all the Trustees satisfy their legal duties.  When choosing a Professional Trustee you should reflect upon whether they have an understanding of  Trust Law and knowledge of how a Trust should be administered. To completely understand the function and responsibilities of a Professional Trustee please contact an approachable Lawyer at Quay Law. Excerpt: A Professional Trustee is a person or company who acts as a Trustee alongside the other Trustees. ### Auckland Law Firm | What is Refinancing? Loan Refinancing may refer to the replacement of an existing debt obligation with a debt obligation under different terms. The terms and conditions of refinancing may vary widely by country, province, or state, based on several economic factors such as, inherent risk, projected risk, political stability of a nation, currency stability, banking regulations, borrower's credit worthiness, and credit rating of a nation. In many industrialized nations, a common form of refinancing is for a place of primary residency mortgage. If the replacement of debt occurs under financial distress, refinancing might be referred to as debt restructuring or debt consolidation. A loan (debt) might be refinanced for various reasons: To take advantage of a better interest rate (a reduced monthly payment or a reduced term) To consolidate other debt(s) into one loan (a potentially longer/shorter term contingent on interest rate differential and fees) To reduce the monthly repayment amount (often for a longer term, contingent on interest rate differential and fees) To reduce or alter risk (e.g. switching from a variable-rate to a fixed-rate loan) To free up cash (often for a longer term, contingent on interest rate differential and fees) Auckland law firm Quay Law NZ  is able to assist you with your refinancing requirements To speak to one of our Auckland solicitors please contact or team Excerpt: Loan Refinancing may refer to the replacement of an existing debt obligation with a debt obligation under different terms. ### Pitfalls for unwary in inheriting family home Article placed on the Auckland Law Firm Blog by Quay Law. Source : NZ Herald  2012 Many of us will inherit a share of the family home. I decided to look into the financial implications after watching a clip on TV about a woman who had lost all the proceeds from her mother's house. The woman in question fell for a fast-talking Nigeria-based Lothario who conned her out of her inheritance, supposedly to help him solve a business dispute. Lo and behold, he never turned up in New Zealand to live happily ever after with her as promised and the money vanished. An inheritance can be a real godsend. As Trade Me member "Asue" said: "I received an inheritance; and every day I appreciate it as it has made my life so much easier and it reminds me so much of the people who left it to me and how much they loved me." Inheritances might be just money or property to some people, but to others they have deep psychological significance and might lead to family disagreements or worse. A sibling or other beneficiary of a person's will may feel that they have done more to help a parent and deserve a greater share of the inheritance. Article continues below Or they may believe that other siblings received more financial help from the parents and feel this should be evened out in the will. AUT University senior lecturer in psychology Dr Elizabeth du Preez says an inherited property will be a physical reminder of the relationship between parent and child, and dealing with it may be harder if there are unresolved emotional issues. "If it was a complicated relationship it may well make the decision more difficult," says du Preez. Or children read into the will how much they were valued by that parent. Siblings may react differently to each other over the inheritance question, she adds. "They will not all have had the same relationship with that person." Some children want to hold on to the family home as a reminder of the relationship while others may be indifferent or want to get rid of it. Choosing to keep the property to live in or rent out can be problematic. As soon as you move into the home, even for a day, says trust lawyer  Ross Holmes, it becomes relationship property, whether or not it's owned by a trust. This is a vivid illustration of why a parent with only one child should be considering setting up an inheritance trust. What's more, the old family home doesn't always make a good rental property. It may be run-down, dated and in need of modernisation. Letting it as-is will not bring in a good class of tenant. Upgrading it, on the other hand, isn't always a good financial option. That work isn't tax-deductible, says Joanna Doolan, partner tax at Ernst & Young. Although maintenance is tax-deductible, "dilapidation repairs" aren't, says Doolan. Anyone who tries to pass off those repairs as maintenance risks being caught for tax avoidance. Sometimes one sibling buys out others only to find the property isn't worth even the government valuation because of the amount of work that needs doing, says Raewyn Fox, chief executive of the New Zealand Federation of Family Budgeting Services. It's worth getting a builder's assessment before raising a mortgage on it, says Fox. It might need too much work or have a fiddly garden that goes to rack and ruin with a bunch of students living in the house. It's always wise to take advice from an authorised financial adviser, says Jeff Matthews, senior financial adviser at Spicers Wealth Management. Matthews dealt with one case in which a client had inherited a property. She wanted to use the proceeds to pay down the mortgage on her rental property. Matthews pointed out to her that the return on the rental property was 4.25 per cent, whereas she could get 7.5-8 per cent return on a bond at the time. The client would have been better off claiming rental losses on the property against her other income and taking the return from the simple fixed-interest bond investment. Both Matthews and Doolan recommend using any inheritance to pay down consumer and mortgage debt first. If, for example, you're paying 6.5 per cent interest on a $100,000 mortgage, by paying it off you're getting a tax-free return equivalent to investing it at about 9 per cent interest. Many children become accidental landlords when mum and dad die and aren't necessarily cut out for the job. First of all there is the problem that they may be emotionally attached to the property and breach a tenant's peace, comfort or privacy by turning up all the time or failing to give notice of inspections. Or they may simply be personally offended by the way the tenants treat their parents' former home. Sometimes coming to agreement with siblings over how the property and tenants are managed can lead to disagreements or bitterness. Doolan has another point. "[The siblings] need to consider who they think is going to be the government next time when making the decision because of Labour's capital gains tax proposals. Any second house will be subject to capital gains tax when they ultimately sell the property." One of the big issues facing people who inherit property is the Property (Relationships) Act 1976. An inheritance is viewed as separate property under the law. It's a case of "what's mine isn't necessarily yours". If you mix the inheritance with relationship property in any way, such as using some of the proceeds to pay off a jointly held mortgage, it will no longer be viewed as separate by law. "In that case you've committed hari kari," says Holmes. He recommends clients do one of two things. The parent can add to their will that the inheritance will go to the child's trust if they have one. Or the parent themselves can set up an inheritance trust going to children and secondary beneficiaries such as grandchildren. If the money is going to a child's trust, it should be an individual trust, not a family trust with the spouse or partner, says Holmes. It's a good idea to accompany this with a pre-nuptial agreement if possible to contract out of the law. The trust route protects the inheritance from children's ill-chosen or acquisitive spouses and partners. It also protects the money from business creditors because it never actually belonged to the individual. It was passed from the parent's estate to a trust. "This reassures the parent that the child is getting the money safely," says Holmes. That is providing the trust is managed correctly. There are, of course, many cases where the beneficiary is happy to pay an inheritance into the family pot and clear the mortgage, buy a bach or boat, or take a family holiday. If they stay together for life there is never going to be an issue. From a financial perspective people shouldn't bank on inheriting the family home, says Matthews. "It's a bonus." Parents are entitled to spend their wealth on the things they went without while bringing up a family and building a nest egg. Or maybe they want hip replacements, better dentures and top-of-the-range hearing aids. They deserve them. Sometimes the hard-earned money they saved to pass to their children is eaten up by residential care costs. Or it may be that older people, without their children's knowledge, have mortgaged their property with lifetime/home equity loans and there is no capital left. Children should also be aware that the Property (Relationships) Act 1976 takes precedence over inheritance laws, which means if mum or dad have entered a new relationship the partner will most likely be entitled to the home if the couple haven't contracted out of the act with a pre-nuptial agreement. Excerpt: Many of us will inherit a share of the family home. I decided to look into the financial implications after watching a clip on TV about a woman who had lost all the proceeds from her mother’s house. ### Find a Lawyer and Solicitor in Auckland? Find a lawyer? Auckland law firm:- experienced lawyer and legal advice, property, conveyancing, trusts, wills and general legal services. Quay Law is a well established and successful law firm based in Auckland, New Zealand. The experienced and approachabe lawyers and solicitors at Quay Law enjoy working with a diverse range of successful companies and private clients. Our focus is always on fostering a personable yet professional relationship that underpins the specialised services Quay Law provides to you, in the timeframe you require. Our services are of a high quality, yet are pragmatic and affordable. For more detail on our services please visit www.solicitorinauckland.co.nz or contact Quay Law on 09 5232408. Excerpt: Auckland law firm:- experienced lawyer and legal advice, property, conveyancing, trusts, wills and general legal services. ### Family Trusts and the Appointer's Powers Provision. Why is this important? The Appointers' Powers provision provides the necessary power that gives the Appointer the ability to appoint and remove Trustees. By having this power, the Appointer retains control over the Trust and enables the Appointer to retain effective control over the actions of the Trustees and consequently over the assets of the Trust? If you have any questions regarding Family Trusts or would like to book a meeting with one of our legal team members please contact us. During this scheduled session we will provide you with an overview of how a Trust may or may not be of benefit to your particular circumstance . For further details please contact Quay Law. We are an Auckland based law firm. Excerpt: The Appointers’ Powers provision provides the necessary power that gives the Appointer the ability to appoint and remove Trustees. ### Will Month 2012 - No Will or is your Will out of date? According to Public Trust figures, 57 per cent of Aucklanders don’t have a will. Consider these  recent statistics. • Those living north of Auckland were the next worst for not making provisions in the event of their death, with 52 per cent not having a will, followed by those in the central North Island, 46 per cent, and the South Island, 42 per cent. • Those aged 25-39 are the worst, with only 34 per cent having one. NO WILL Dying intestate can be costly. If you die without a will or your will is deemed to be invalid, then you are said to have died intestate. In this event, administration of your estate is entirely determined by legislation and not you. Your wishes are not relevant. Reviewing your Will It is good practice to review your Will on a regular basis. Life takes its course and situations change. We have compiled a list indicating some of the situations that could prompt you to alter your Will: The birth of a child The commencing of a relationship The ending of a relationship The death of a family member, executor or beneficiary The changing value in any of your assets The receiving of a large inheritance Moving countries, or The purchase of a home or business. There are certain events that will automatically change your present Will. Under these circumstances, a revision or renewal of your Will should necessarily be conducted. These events include Getting married Getting divorced and The birth of a child or adoption of children. Dying intestate We are often asked what happens if a person dies without a Will. If this situation occurs you are said to have died intestate. The administration of your estate is then governed by the provisions of the Administration Act 1969 which sets out a statutory regime to be strictly followed. Your wishes are unfortunately not relevant. What else should you consider? We also recommend that you regularly review your entire estate planning structure. People are inclined to view estate planning in terms of investments, property, finances and assets. Yes, it is all of these things but the focus of proper estate planning should be the individuals who will benefit from your efforts and legacy. This may initially be yourself and your partner but will obviously need to include your children and possibly other loved ones after your death. Failure to have an appropriate estate planning structure in place can have disastrous consequences for all concerned. Our lawyers at Auckland law firm, Quay Law (situated in Remuera) recommend that you seek professional legal advice with regard to both your Will and any related estate planning aspects. Your lawyer can provide you with the requisite advice and guidance to ensure that your affairs are in order and that your wishes can effectively be implemented once you have passed away. This will give you the certainty and peace of mind that your loved ones are looked after in the manner you intended. Please feel free to contact Ian Mellett (BComm LLB H Dip Tax) at Auckland law firm Quay Law for more information, or if you have any questions regarding your will or estate planning needs visit our law firm website www.quaylaw.co.nz or www.yourwill.co.nz for more information. Excerpt: According to Public Trust figures, 57 per cent of Aucklanders don’t have a will. ### Auckland Law Firm hosts Official Chinese Government and High Court Judges Delegation Auckland law firm Quay Law, situated in Remuera, hosted an official Chinese Government and High Court Judges delegation on today. The group are visiting New Zealand as part of a trade initiative between New Zealand and China. The principal of Quay Law, Ian Mellett, welcomed the group headed by a Chinese Supreme Court Judge. To chat to a solicitor in Auckland. Excerpt: Auckland law firm Quay Law, situated in Remuera, hosted an official Chinese Government and High Court Judges delegation on today. ### Immigration and the Partnership Category Source NZ Herald Nearly 500 people were turned away by immigration officers in the last financial year after claiming to be in a long-term and stable relationship with New Zealanders. Nine thousand others were sucessful in gaining a visa under the partnership category. Among those were a number who wanted to move to New Zealand following a culturally arranged marriage to a Kiwi citizen or resident. Immigration NZ's acting fraud detection manager Aaron Baker said such unions were causing a headache because it was increasingly difficult to separate genuine arrangements from shams. By law, immigration officers had to recognise such marriages the same as romantic relationships. But Baker said it was a complex task establishing that a "genuine and stable relationship" existed. "You've got no history of living together or communication or even meeting someone," he said. Similarly, it was difficult to prove an arranged marriage was not genuine if it needed to be investigated after the visa had been approved. "In a fraud investigation, getting the level of evidence together to show that an offence has occurred is extremely challenging." The number of visas granted to a person in an arranged marriage was not available but Indian Central Association president Paul Bains said the practise remained common in the Indian community, although young people were no longer "forced" to marry a partner they did not like. Bains said he understood the verification process was necessary, although it was "harrowing" for those with genuine arrangements. "I have no doubt there are some cases that are not valid. Corruption is there. They are trying to get the odd one that isn't right," he said. "Once the marriage has happened it is true, but it's very hard to prove that." Bains said immigration officers often wanted to see wedding videos and photographs and interview witnesses to the arrangement. Immigration lawyer Aaron Martin said he dealt with several cases a year where residency had been declined because the authorities were not satisfied the arranged marriage was genuine. It was a particular problem when the marriage had been arranged by a family member who was illiterate, so there was no proof of correspondence. "Sometimes I have to suggest to the couple that they live together in India for a while and apply again. I have to explain to them 'How do you expect the visa officer to assess this as genuine?'," he said. Martin added New Zealand citizens were seen as attractive grooms by those arranging marriages in India, because it promised a better life for the bride. Arranged marriages get thumbs up A young Barwinder Kaur travelled to India to meet her fiance Amininder Singh, who had been chosen for her by relatives. Three years later, they met again - at their lavish Sikh wedding, above, in her home town Wanganui. More than 300 guests, including a large contingent from India, attended. Kaur remembers her groom wearing a smart, Sikh suit with a red turban that matched her sari, which was intricately embroidered and swathed in gold. After the wedding, Singh moved in with her family and started work at their tandoori restaurant. Kaur says their three-year engagement meant they did not have any problems proving their relationship to immigration officers. The couple now have a 4-year-old daughter and are expecting their second child next month. Kaur says she could not be happier with her family's choice of man. "We are very happy and doing well. It's worked well. My husband is very happy here," she says. She says arranged marriages are an important part of her culture - all of her Kiwi Indian friends are in similar relationships and she would want to continue the tradition when her own daughter becomes a young woman. "We haven't started looking yet," she laughs. Excerpt: Nearly 500 people were turned away by immigration officers in the last financial year after claiming to be in a long-term and stable relationship with New Zealanders. ### Facebook and the Advertising Standards Authority Source stuff.co.nz Kiwi companies delving into the Facebook advertising game will need to beware of promoting excessive alcohol consumption or hosting offensive chatter, after a landmark decision by an Australian regulator. All content on a company's Facebook page, even user-generated comments, is now subject to regulations and penalties, according to a judgment by Australia's Advertising Standards Bureau. New Zealand's self-regulatory body, the Advertising Standards Authority, said it has taken the same approach and will assess all social media content based on advertising regulations. The decision has drawn the ire of advertisers and advocates in Australia who say monitoring and pre-moderating the real-time conversation on their pages is too costly, commercially unviable, and undermines the spirit of social media. Ogilvy New Zealand digital advertising director Greg Whitham said Facebook's success was based on its public openness and immediacy, which could be damaged by censorship or moderating. The issue came to the attention of the Australian regulator after two academics filed complaints against Fosters for its Victoria Bitter-branded Facebook page and Diageo for its Smirnoff vodka page. The complaints quoted VB's Facebook page posting statements such as: “it's nearly 5pm - time to crack the weekend's first VB” on a Friday or Saturday afternoon. VB's fans would reply with statements such as: “what's this 5pm crap, cracked my first one hours ago” and “on the 8th already”. In reply to VB's question about what's needed for an Australia Day barbecue, fans replied with statements such as: “sluts" and VB. VB's owner Carlton & United Breweries [CUB] claimed the tone of its Facebook page was “tongue in cheek and ironic” and matched the overall tone of Facebook as well as the tone of mainstream beer marketing in Australia. The comments were “throwaway lines” expressed “in the vernacular” and were not to be taken seriously, it said. CUB did not believe third-party posts on its Facebook pages fell under the definition of advertising and were therefore not regulated by the advertising industry's code of ethics. New Zealand's Advertising Standards Authority chief executive Hilary Souter said branded Facebook pages managed by companies are clearly classed as advertising and the same rules would apply here as in Australia. But the ASA would not go as far as the Australian regulator to categorically state that companies had such an obligation to moderate their pages. “I'm not saying we would take the approach that Australia has taken, we have different codes and requirements, but we are certainly aware of it as an issue and we are aware that the advertising community would like more guidance on this," said Souter. The ASA was working on a “guidance note” to provide advertisers with the background of existing ASA decisions and “help in terms of what they need to look out for”, she said. New Zealand's ASA has already settled at least four cases involving social media, including one where DB Breweries accepted it had responsibility for user-generated content on its sites. A photograph posted by a user showing a young baby holding a bottle of DB Export in its mouth clearly breached standards requiring alcohol advertisements to depict people only over the age of 25, said the ASA. Independent Liquor also agreed to monitor its Facebook feeds more tightly after images were posted showing teenagers indulging in Vodka Cruisers. Dr Andrew Hearn from The Health Promotion Agency, an organisation including the former Alcohol Advisory Council, said alcohol advertising and media exposure increased the likelihood that adolescents would start drinking, or would drink more. Hearn said social media issues were “complex” and he would await the publishing of the ASA's guidelines. Whitham said classifying user-generated posts as advertising was “a little unfair” when the brand had no direct part in the conversation. “That is happening everywhere whether it's on a Facebook wall or in a conversation between friends, Facebook is really just a magnifying glass on some of those conversations that are taking place.” However Whitham said the few social media complaints that had already been through the ASA were “the thin end of the wedge”, especially if companies didn't acknowledge the effort and resources required to manage their social media accounts. © Fairfax NZ News Excerpt: Kiwi companies delving into the Facebook advertising game will need to beware of promoting excessive alcohol consumption or hosting offensive chatter, after a landmark decision by an Australian regulator. ### Do you have a will? Look at the latest figures. Source of article stuff.co.nz (3 September 2012) Aucklanders are the worst nationwide for not having wills, and those that do have the document written up sometimes make unusual requests - one woman wanted to be buried in a garden bag. According to Public Trust figures, 57 per cent of Aucklanders don't have a will. Those living north of Auckland were the next worst for not making provisions in the event of their death, with 52 per cent not having a will, followed by those in the central North Island, 46 per cent, and the South Island, 42 per cent. Public Trust released the figures last week ahead of Wills Month, which began on Saturday, and in the hope of encouraging Kiwis to put pen to paper to ensure their families are looked after, and their assets fairly distributed, following their death. Nationally, half the population don't have a will and testament. Those aged 25-39 are the worst, with only 34 per cent having one. Henry Stokes, managing solicitor with Public Trust, said that requests in wills range from the far-sighted to the unusual. "One lady was very firm about the fact that, if her funeral was on a work day, she didn't want her children taking time off work to attend, as she felt that would be a shocking waste of time," Henry said. "She also thought funerals were a waste of money and wanted to be buried in a garden bag, rather than a coffin - although we had to explain that isn't legal." Henry said myths about wills often led to people not making them, which often resulted in legal and financial difficulties for the family involved. One wrongly held belief was that someone's partner would automatically inherit their entire estate, Henry said. If assets weren't jointly owned, the first $155,000 of their assets and personal chattels goes to their partner along with a third of the remaining estate. The remaining two thirds goes to the children. If there isn't any, the partner gets two thirds and any surviving parents get one third. "We have come across situations where the husband has died first without a will and his widow has to share the estate with her own children or his parents - that is a big shock." Alex Polaschek, Public Trust's general manager personal and business, said that people have different priorities at different stages of their lives - so it's important to update your will. One Auckland family that knows the importance of wills is the Nicholsons. Despite having two sisters, John Nicholson had no will when he died in April 2010 and his family was forced into a protracted legal battle with a friend of his, police dog handler John Fraser, over his entire estate. Ad Feedback Three months after Nicholson's death his sister Pauline was made an administrator of his estate, but Fraser then made a Family Court claim that he had a ''fair and honest right'' to it. The matter was finally resolved in May, just over two years after Nicholson's death, with a confidential settlement. Nicholson's nephew, David Nicholson, said the family had to cut their losses and settle because proceedings had cost too much. ''At the end of the day no one wins,'' he said. Nicholson's estate had only consisted of a Meadowbank house and his business, the Las Vegas Strip Club on Karangahape Rd, but not the premises. ''My advice to anyone is get a will... to go through what I've been through over the last 18 months... get a will. Take all of the heartache and stress out of it,'' he said. ''There's been a lot of collateral damage.'' Don't delay - contact an experienced solicitor at Auckland Law Firm Quay Law.  Whether you need us to update your will or draft your first will our experienced team of lawyers are able to guide you through this process. Excerpt: Aucklanders are the worst nationwide for not having wills, and those that do have the document written up sometimes make unusual requests – one woman wanted to be buried in a garden bag. ### Tough in the provinces but Hamilton is stirring Source NZ Herald - 6 September 2012 After years of stagnation, sales are slowly starting to build in Hamilton - the first fraglie sign that parts of provincial North Island may be beginning to move out of the housing doldrums. Photo / Bay of Plenty Times The provincial towns and cities are well below their 2007 peaks, but there are signs of life south of the Bombays, reports Bruce Morris. After years of stagnation, sales are slowly starting to build in Hamilton - the first fraglie sign that parts of provincial North Island may be beginning to move out of the housing doldrums. Whisper it quietly, but there's the smell of a rally in Hamilton and it's nothing to do with cars. After years of stagnation, sales are slowly starting to build in New Zealand's fourth-largest city - in the first fragile sign that parts of provincial North Island may be beginning to move out of the housing doldrums. We're not talking about furious action, but there's enough in the air to suggest low interest rates are finally feeding beyond the Bombays, although things remain flat in Whangarei and Rotorua and not much better in Tauranga. As the centre data tables in this Property Report show, the smaller towns continue to do it hard. QV valuer Richard Allen says Hamilton is starting to "tick along quite well" after slow progress working its way out of the troughs that followed the 2007 market peaks. "Sales volumes are not outstanding but things have picked up over the last three-to-six months and there's been a slight increase in value in most areas," he says. "It almost seems people have put off making a decision for the last two years or so and now have decided to jump in and do it." Most interest has been in lower-priced houses, drawing first-home buyers and investors as the city "claws its way back to 2009 values", says Allen. But as elsewhere, demand is lacking in the upper end of the market and prices haven't moved. In Tauranga city and across the bridge at Mt Maunganui, it remains pretty flat, though the QV national housing index shows a 1.7 per cent gain in average values over the year to the end of July. Prices for the three months to the end of June, detailed in the central pages of this Property Report, show just how subdued the market is with only four of the 17 listed suburbs showing gains. With as many as 1500 developed sections available in Tauranga and plenty of other available land on the outskirts, there's limited pressure on prices in a city where finding work isn't easy and job security is as much a concern as anywhere. QV's Paul Thomas says prices have been fairly static over the past three years, and probably still around 10 per cent below the market highs: "There is a little bit more turnover at the moment, but values just aren't moving." He points to sales under $200,000 in suburbs such as Gate Pa and Welcome Bay - well below the levels of five or six years ago - and overall values remain subdued in prime areas such as Matua and The Avenues. Thomas has no crystal ball and says so much depends on international and domestic economic conditions, but he doesn't see anything on the near horizon to spur price growth. Across in Rotorua, QV's Susan Lock says sales activity has been strong over 2012, "but values are just not up there". The feeling supports the housing index, which shows Rotorua values have dropped 0.7 per cent in the past year and are now 14 per cent below the 2007 peaks. Lock says homes are "very affordable" in Rotorua, and they are generally selling quite quickly with fairly realistic vendors, leaving agents struggling to build listing volumes. Much of the demand is driven by investors eyeing gross yields of around 10 per cent for lower-priced homes, she says, but they are "very picky" and looking for value. "The number of sales gives some encouraging signs. But it is all quite fragile and prices are flat. "Really, looking ahead a year or two, any recovery in the property sector is likely to be heavily reliant on what is happening in the troubled European economies." The Property Report statistics graphically illustrate the extent of the flat Rotorua market, with just two suburbs - Lynmore and Springfield, the highest-priced in the city - recording price rises over the three months to the end of June. Most suburbs are down or flat against their 2011 CVs, and all are well below their 2007 market highs. Western Heights (down 24.4 per cent) and Fordlands (down 21.3 per cent) have done worse while Lynmore (down 5.3 per cent) is something of a local beacon, even if the decline there in real terms is close to 20 per cent. In Whangarei, the statistics show a static last 12 months with prices still around 17 per cent off the 2007 highs. Michael Springford, principal of the L.J. Hooker franchise, says the market seems to be the opposite of the firing parts of Auckland. Up north, buyers are in command and looking for value, keeping a cushion on prices. Some investors have returned to help push total city sales to 396 properties in the first seven months of the year compared to 612 sales in the whole of 2011. But prices overall are flat, with negligible interest in properties above $500,000. Springford says Whangarei offers great investment opportunity, with low prices and attractive yields. But "mum and dad" investors hurt or concerned by the finance company collapses are not taking on risk and going instead for the safety of term deposits. But he says the biggest issue for the city and Northland is job security and unemployment. When people can't find work or think their job is at risk, that's hardly the environment to bring a rise in house prices. Excerpt: The provincial towns and cities are well below their 2007 peaks, but there are signs of life south of the Bombays, reports Bruce Morris. ### Frustrated house-hunters turn to experts Source and Picture NZ Herald - 5 September 2012 Some time-strapped house-hunters frustrated by Auckland's booming housing market are turning to expert services to secure their property investments. A growing number of buyers are cutting the stress of house-hunting by employing buyer's agents to handle the entire sale process. While estate agents make their money by working on the seller's behalf, a buyer's agent is paid by and works solely for the buyer. Auckland-based Erskine+Owen, which specialises in finding and negotiating properties for buyers, has doubled its client base in the past eight to 12 months as people compete for houses. Erskine+Owen director Alan Henderson said the company was dealing with between 50 and 100 clients a week. About half the clients were overseas investors and there had been a huge increase in the number of first-home buyers wanting help. "It's mainly people that are time poor and don't have the expertise and don't have the information," Mr Henderson said. The company charges about $11,000 for a comprehensive package which includes arranging finance, telling clients where to buy, finding properties and negotiating. Aucklander Richard Cuttriss contracted Erskine+Owen last year when he gave up on buying a house in the central city and his bank manager recommended he use a buyer's agent to find investment property. "I don't know how a house's value is determined. I go along to the real estate agent and will say, 'How much is this worth?' and they say, 'Well, what is it worth to you?' and I don't know," the 37-year-old said. Mr Cuttriss used a buyer's agent to purchase his first rental property in Glendene last year and a second in Otahuhu this year, paying between $300,000 and $400,000 for each. "It's been too easy. Some people enjoy going out and visiting open homes and going through the whole negotiation process and getting in and doing the renovation work and I'm not interested in any of that," Mr Cuttriss said. Harcourts New Zealand chief executive Hayden Duncan said there were few buyer's agents in New Zealand because buying a house was relatively straightforward. Buyer's agents were more popular in Australia, Britain and the United States, he said. Real Estate Institute of New Zealand chief executive Helen O'Sullivan said buyer's agents were creeping into the industry but she felt it would always be a niche market. Some of the larger real estate agencies had buyer's agents who worked with buyers to help them find the right properties but were linked with experienced sales agents. The buyer was not charged a fee and instead the vendor commission was shared so they were legally obliged to work for the seller. Excerpt: Some time-strapped house-hunters frustrated by Auckland’s booming housing market are turning to expert services to secure their property investments. ### Loaning money to family members Most people get involved in family giving or lending with the best of intentions and wishes.  But what happens if things go wrong or circumstances change.  Can you afford to loose that money? All too often the outcomes of these informal loans are very disappointing.  Prior to entering into such a situation it is advisable to seek legal input into such lending arrangements. For more information regarding family loans please contact the friendly team at Auckland law firm - Quay Law. For regular legal tips please connect with us on Facebook. Excerpt: Most people get involved in family giving or lending with the best of intentions and wishes. But what happens if things go wrong or circumstances change. ### Acting as Guarantor – What should you do? It is common for young people starting out in life to ask parents or close family to guarantee a loan for a home, new venture or business. While loan institutions or banks recommend that you take legal advice it seems that many fail to do so and often do not really understand the full obligations of such a guarantee. Life situations can change and many of these changes are unforeseen. For example, a couple may separate, a business may fail to produce the desired results, there could be a death, or financial circumstances could change as a result of the loss of employment. These circumstances could result in a default on the loan and as guarantor you may have put your life savings, assets or home at risk. It is important that you completely understand the impact of any guarantee that you sign and you should ensure that if something occurs you are able to with stand the fall out. The reality is that Banks want to lend money and charge interest for the loan, so if they insist on a guarantor, there may well be a good reason for this.  In such circumstance consider your current situation,  insist on legal advice, consider limited guarantees or perhaps an equity in the business.  There are many options available to you that you could consider. To discuss any legal matter relating to becoming a Guarantor please contact our friendly and approachable legal team. Contact the Auckland lawyers at Quay Law. Excerpt: It is common for young people starting out in life to ask parents or close family to guarantee a loan for a home, new venture or business. ### Family Trusts - a way to structure your affairs. Trusts have become an increasingly popular way of structuring one’s affairs. It is important for those families and parties intending to use a trust to be clear on the legal relationships and obligations involved with such legal entities. You should always obtain legal advice before setting up a trust. Your lawyer at Quay Law in Auckland will assist you with, in particular, drawing up the principal document creating the trust, which is called the "trust deed". As part of your initial meeting with our team member you shall receive a thorough explanation of family trusts. A so called trust 101 course. Contact a Trust Specialist. Ph (09) 523-2408 Our Family Trust website. Excerpt: Trusts have become an increasingly popular way of structuring one’s affairs. ### Facebook and Employment Law Facebook photos endanger sick leave Source stuff nz TRACEY CHATTERTON A Gisborne man who called in sick was fired after his boss saw Facebook pictures of him at a waka ama championship. And an employment law expert has warned Bruce Taiapa's sacking could be repeated if people continue to post pictures on social media sites while they are supposed to be on sick leave. The Employment Relations Authority ruled that training institute Turanga Ararau was justified in firing Mr Taiapa in July last year after he misused his sick leave. In March last year, Mr Taiapa, 59, asked to take a week's leave without pay so he could attend the waka ama championships in Rotorua. He was granted only three days off because no-one was available to cover his work. The next Monday, he called in sick, saying he had a damaged calf muscle. Two days later, his boss saw a picture of him at the championships, posted on Facebook. Mr Taiapa was smiling and giving the thumbs-up. Mr Taiapa said he had gone to Rotorua with his whanau to watch teams he had coached. He then travelled to Tauranga, where his grandsons competed in a squash tournament. It was seven days before he and his whanau returned to Gisborne. Mr Taiapa still believes he did nothing wrong. He told The Dominion Post his dismissal was unjustified because he was on certified sick leave and was entitled to manage his health as he saw fit. "My spiritual being was better there than being miserable at home." Employment law expert and Dominion Post columnist Susan Hornsby-Geluk said employees who took sick leave and then posted pictures on Facebook of their social activities were likely to be fired. "If you are out engaging in social activities, when you should be at home on your sickbed, you run a higher risk of being caught these days . . ." People did not have to remain restricted to their sickbeds while on leave but they did have to take steps to recuperate. "In this case there is little or no relationship between the activities he undertook and his recovery. "There are also serious questions about the genuineness of his illness." Employees needed to take a commonsense approach to what they did while on sick leave, she said. "It's one thing to take a trip to the supermarket when you're supposed to be unwell but quite another thing to go away, essentially on holiday, for a week." GET WELL SOON When on sick leave you can: Go to the doctor and chemist Pick up necessities from the supermarket Go to the DVD store Do some light housework Go for a walk (but an employer has the right to ask questions if you're spotted) You cannot: Post pictures of yourself at the beach on Facebook Go shopping for a new pair of shoes Visit the pub for a beer with mates Work out at the gym - © Fairfax NZ News Excerpt: A Gisborne man who called in sick was fired after his boss saw Facebook pictures of him at a waka ama championship. ### Mortgage wars and refinance By WAYNE THOMPSON Thousands of New Zealanders chasing a cut in their home loan interest rate have caused a log jam in the banking system, which is groaning under the weight of homeowners battling for the best deal. One bank had 2000 inquiries last week about rates and was struggling to cope, a mortgage broker told the Weekend Herald. "It's clogged up the banking system and people are waiting for decisions." Mortgage rates have hit rock bottom and banks are going to extreme lengths to get borrowers to switch lenders. The competition is so intense that a man who visited an Auckland bank yesterday to change foreign currency was asked if he wanted a mortgage. Some banks have offered cash deals to win new customers. Many homeowners have been haggling to get at least half a per cent off the banks' advertised rates. But some banking economists are warning that rates will rise - albeit slowly. Bernard Hickey, who runs the interest.co.nz site, said bank managers were once people to be feared, but now they were sitting on a pile of cash and were desperate to lend. Yesterday, Mr Hickey said the big questions for homeowners were whether to get a fixed mortgage or a floating one and when. It was a decision that could save - or cost - thousands of dollars over the next couple of years. More than 60 per cent of mortgage lending was now on floating rates. This is just below a record high and a reversal of the pre-2008 ratio. Mr Hickey's website is running a poll on whether to opt for a fixed-rate or a floating mortgage, or to sit on the fence. "I'm a floater because I think the interest rate has potential to go even lower because the global economy is slowing down," he said. The weight of a painful rebuilding of the European economy was pushing down on interest rates. The Reserve Bank would probably keep the official cash rate low for longer than some economists were predicting. Even with a slow rise, bank customers with enough equity and good repayment records could push their banks for better deals of around 5 per cent to 5.2 per cent. Loan Market broker Bruce Patten said about half of his customers were moving to fix a rate to have certainty over their costs, while others were happy to keep riding the floating rate. "We say if you can afford to let it float, stay floating." Mr Patten said that after months of competing for customers, banks were starting to pull back as their profit margins on lending shrank. This week, ASB raised its advertised one-year rate 20 points to 5.45 per cent and its three-year interest rate by 15 points to 5.9 per cent. ASB chief economist Nick Tuffley said there was a growing trend for borrowers to opt for a fixed rate. A floating rate was expected to rise in response to the official cash rate going up gradually from 2 per cent to 4 per cent by mid-2014. Fixed rates could well turn out to be slightly cheaper over that period. But lenders would give away any chance of benefiting if the overseas crisis went on for longer than expected and kept rates down. If the cash rate were held for longer, a floating rate would be the lesser and people would minimise their debt-servicing charges. Westpac chief economist Dominick Stephens said fixing would probably be better than floating because banks were paying more for money and the New Zealand economic outlook had improved. He said a lot of people were waiting for the point where rates were at their lowest. "Our feeling is that the optimal moment is closest enough and that on a balance-of-risk basis it's better to fix now." Roost Mortgage Brokers spokeswoman Colleen Dennehy said people must be clear about what type of interest rate best suited their needs. "Fixing might make sense if you're paying down other debt; floating might be the way to go if you want more flexibility, for example, so you can make extra payments." Source: NZ herald For assistance with your mortgage refinance. . Ph: 09 523 2408 Excerpt: Thousands of New Zealanders chasing a cut in their home loan interest rate have caused a log jam in the banking system, which is groaning under the weight of homeowners battling for the best deal. ### Family Trusts - July 2012 radio broadcast. Quay Law Barrister and Solicitor - Auckland Radio Broadcast.  Auckland lawyer, Ian Mellett being interviewed by Jan Coetsee of The Protea Hour. Click for   YOUTUBE LINK During a community radio show, Protea Hour, Ian Mellett outlines a number of reasons why implementing a trust structure could possibly be of benefit to you and your family: Protection of core family assets for present and future generations. Protection from business creditors. Protection of particular beneficiaries (example, children with special needs, educational trusts). Protection from matrimonial property claims and de facto claims. Protection against possible income tax consequences and future taxes. Incidental benefits in relation to means testing and rest home subsidies. For more information regarding family trusts or to arrange your personal trust presentation, please contact Ian Mellett, lawyer and principal of Auckland law firm Quay Law. www.quaylaw.co.nz        Ph (09) 5232408        E: quaylaw@quaylaw.co.nz Excerpt: Quay Law Barrister and Solicitor – Auckland Radio Broadcast. Auckland lawyer, Ian Mellett being interviewed by Jan Coetsee of The Protea Hour. ### Are you eligible to withdraw your KiwiSaver funds from 1 July 2012 Are you eligible to withdraw your KiwiSaver funds from 1 July 2012? KiwiSaver will reach its five-year anniversary on 1 July 2012 and you may be eligible to withdraw your funds beginning on that date. You may withdraw funds from KiwiSaver once you either qualify for New Zealand Superannuation (currently age 65) or reach the date of your fifth anniversary of membership whichever is the latter. For example, if you joined KiwiSaver aged 63 then you are not be eligible to withdraw until after five years, when you turn 68. We recommend that you check your 'start date' with your scheme provider and ensure they have your correct date of birth and contact details. Source: ird.govt.nz Excerpt: KiwiSaver will reach its five-year anniversary on 1 July 2012 and you may be eligible to withdraw your funds beginning on that date. ### Battle of wills delay inheritances Coping with the death of a loved one is never easy.  If you are confronted with that situation our legal team at Quay Law are able to assist you with the adminstration of the Estate. In addition, when drafting a new Will, the lawyers at Quay Law focus on ensuring that the Will Makers wishes are taken into account.  Ensuring that these wishes are documented in a clear and concise form, minimising the potential for any disputes at a latter date.  This ensures that  any assets are transferred / bequeathed to beneficiaries as smoothly and efficiently as possible.  Things can go wrong and when they do, this is a costly exercise to remedy. A Will is an important legal document and  this importance is often overlooked as people attempt to create their own documents. See article below : Source - © Fairfax NZ News via Stuff More families are being riven by disputes over wills, with some waiting more than seven years to get their hands on their inheritance. The legal process to dissolve a will is usually a quick one, but Ministry of Justice figures show that in the last two years six wills were finally resolved in the High Court after between five and seven years of argument. Lawyer Paul Logan, from ARL Lawyers, said the cases were unusual as probate was usually granted within two months, but he had seen a growing number of families arguing over wills. ''We've got a number of blended families these days so it's harder for people to make wills that benefit their new spouse or partner and their children,'' he said. Probate is a court certificate that confirms a will has been proved and registered. A long delay in granting probate was likely the result of action taken by a mourning relative, who may believe the will was penned under duress or was outdated. After probate was issued, the assets were usually dispersed, but a family feud could see the case then go to the Family Court. ''Most cases settle, they don't actually get to court because they are not worth it, but sometimes people won't settle and so you end up in court. That's the exception rather than the rule,'' he said. The highest number of cases in the last five years was in 2009, with 309. Last year, 214 were heard in the Family Court. Most cases were resolved within five years. Henry Stokes, from wills and estate services provider Public Trust, said he mostly saw disputes among children after a parent died. ''Sometimes what can happen is that mum or dad make a will during the time a relationship is strained and they either leave that child out or they leave that child a smaller amount than their other children. ''Other times you see that parents believe that their children are not very good at handling money, so they don't leave a full share of the estate.'' Stokes said families occasionally agreed to work things out, but in other cases they couldn't reach an agreement. ''One of the hugely difficult things about disputes over estates is that there is so much emotion involved in all of it. That of course makes things extremely difficult. ''Often, it's not just about the assets of the estate or the money that is in the estate, it's about how they feel that they have been treated,'' he said. ''Sometimes family recover from that, sometimes they don't.'' www.yourwill.co.nz For peace of mind and to ensure that your Will is drafted in accordance with the laws of New Zealand, contact the team at Quay Law today. Excerpt: Coping with the death of a loved one is never easy. If you are confronted with that situation our legal team at Quay Law are able to assist you with the adminstration of the Estate. ### Auckland widens property gap Source: nz herald House prices throughout most of New Zealand are stalled at levels up to 30 per cent below the peaks of the property boom as the gap widens between Auckland and the rest. Latest statistics reveal a sea of red across the North Island where, outside Auckland and Wellington, only four of the 201 areas surveyed are recording average prices above the overall market highs of late 2007. The 53 suburban breakdowns in Wellington show five areas with average prices higher now than in November 2007, and the best of them is up only 2.5 per cent. But Auckland gives an entirely different picture, as shown in the quarterly Property Report liftout in today's Herald, publishing QV house price data for the 422 biggest North Island towns and suburbs. The city-wide price indicator has been dragged down by the struggling Rodney, Papakura and Franklin areas, but otherwise it is up almost everywhere except for parts of Waitakere and Manukau. Leading the Auckland pack are Kingsland (up 19 per cent to the end of March), Grey Lynn (up 17.9 per cent) and Mt Eden (up 16.1 per cent). Then, all above 10 per cent, come Western Springs, Epsom, Westmere, Meadowbank, Pt Chevalier, Sandringham, Lynfield, Onehunga, Glendowie and Mt Albert. While outer areas such as Wellsford (down 17.4 per cent), Clendon Park (down 14 per cent) and Manurewa East (down 12.3 per cent) are struggling, prices in the central Auckland suburbs continue to rise. At the far end of the deficit scale, some provincial towns are taking a hammering. Prices were pushed up in the boom years as new investors chased quick capital gain through the early and mid-2000s, and they were punished when the slump came. The result will make gloomy reading in towns such as Pukehina (where prices are down 31.6 per cent since late 2007), Kaikohe ( down 29.9 per cent), Kaitaia (down 24.5 per cent) and Taumarunui (down 24.4 per cent). Provincial cities haven't escaped either. While values have risen a little lately, prices in Whangarei have dropped by nearly 17 per cent since November 2007 and Hamilton, Tauranga, Rotorua and Taupo are all down by between 10.6 and 13.5 per cent. Many areas hit their highs well before late 2007, opening up a wider gap with Auckland at the time, so the decline in provincial centres is probably worse than the figures show. Auckland's property prices have always been the country's highest, reflecting the demand provoked by a constantly rising population, opportunity, the city's gateway position and even its mild climate. Property prices in the big cities around the world - New York, London and Sydney among them - have opened up wide gaps with their national neighbours. The Real Estate Institute median price for wider-Auckland in April was about $490,000 - a giant step up in value from Rotorua ($254,000), Whangarei ($259,000), Hamilton ($338,000) and Tauranga ($343,000). But the ratios between Auckland and the rest have stayed fairly constant over the past 10 years. Monthly median data has its pitfalls, but the figures suggest the cities are all up between 75 and 100 per cent over that decade. So is Auckland, already well ahead of the pack, now starting to break clear from the field? Professor Bob Hargreaves, who leads Massey University's property unit, says it all comes down to demographics. "When you get growth, you get demand and when there is no demographic growth you will be going backwards." Economist Rodney Dickens, managing director of Strategic Risk Analysis, accepts the logic of the contribution to house prices from the demand created by an expanding population and job opportunities. But he thinks there may be more to the present Auckland spurt. Prices in many towns and cities grew at a higher rate than Auckland during the boom, he says, as investors went elsewhere "all caught up in the myth that property looked cheap compared to Auckland ... and of course there was a reason for that. "I think what we may be seeing now is a restoring of relativities - the catch-up factor." A TALE OF TWO PLACES Grey Lynn: + 17.9 per cent* When Gervais Laird and his young family came back to Auckland after a stint in Sydney he was keen to return to his old stomping ground of Grey Lynn. Mr Laird flatted there in the 1990s and said the area had gentrified since. Grey Lynn has recording a 17.9 per cent rise in average house values since 2007; only neighbouring Kingsland has increased in value more. "It was an alternative-type neighbourhood. And it still is to a degree, although there are lots of people my age in suits getting into cars in the morning these days," Mr Laird said. "Most of the old villas have at least been given facelifts, if not replaced. The cafes, restaurants, much posher food and clothes shops ... it's certainly pushing that way." The 41-year-old lawyer said he and his wife, Kara, an architect, were fortunate to buy into the neighbourhood last November. He said that because of speculators, even the suburb's few remaining "old dumps" were out of reach of first-home buyers. They went to every auction and open home in Herne Bay, Ponsonby and Grey Lynn for a month, before eventually buying their three bedroom villa in Chamberlain St. "We missed out on one auction, which went for $300,000 over what we thought it would go for. "We bought just as the market took off in the area ... it seems like it's going crazy around us at the moment. You have two-bedroom houses selling for close to $1 million, which is just nuts." But one of the area's charms was the "spectacular community" of new homeowners and those who bought there long before the area's prices shot up. "There's a real sense of consistency and community in those suburbs." Kaikohe: 29.9 per cent* After Jolene Albert and her partner's home was wrecked in the Christchurch earthquakes they decided to go north. Ms Albert, originally from the Bay of Islands, had lived in Christchurch for 12 years but her Avondale home was red-zoned after earthquakes in February last year. The family of four will take possession of their new home in Kaikohe on Thursday. "We lost our house down there and have come back. And yes, the houses are cheaper and you get a lot more for your bang here." For $285,000 they bought a three-bedroom house on a 270sq m property with a sleepout, double garage and an extra shed. Kaikohe has had the country's second-biggest drop in house values since 2007 - the average has fallen by 29.9 per cent. Ms Albert, 35, said the main issue was finding a job in the area, which they both now have. Excerpt: House prices throughout most of New Zealand are stalled at levels up to 30 per cent below the peaks of the property boom as the gap widens between Auckland and the rest. ### Immigration Advice and Lawyers Practising lawyers A lawyer is a person who holds a current practising certificate as a barrister or as a barrister and solicitor, issued by the New Zealand Law Society. Usually anyone giving immigration advice must hold a licence. However, lawyers fall into an exempt category of people who do not need to hold a licence. The exempt category includes, among others, lawyers and the employees of lawyers or law firms providing immigration advice as part of their job. Employees of lawyers do not need to hold a licence on the basis that they cannot give advice on their own and it is the lawyer employer who is responsible for giving immigration advice. To contact a lawyer at Quay Law please connect with us at www.theimmigrationlawyer.co.nz Excerpt: A lawyer is a person who holds a current practising certificate as a barrister or as a barrister and solicitor, issued by the New Zealand Law Society. ### Quay Law and Social Media - Law Talk Article. Please click on picture for detailed article.  This article was published in the 25 May 2012 edition of Law Talk for the NZ legal profession. "Cathy  (of Net Branding Ltd), who manages social media for Quay Law in Auckland, says choosing a social media platform is about "horses for courses".  Quay Law strategically uses social media to "build rapport" with potential and existing clients.  The Auckland-based firm ensures their content is well placed so existing and potential clients can pick up some useful information, interact and share with the community that they are a part of.  But, Cathy warns, " you have to have nous and once you have done something, it's out there". Ian Mellett is the principal of Auckland law firm Quay Law. www.quaylaw.co.nz Excerpt: Please click on picture for detailed article. This article was published in the 25 May 2012 edition of Law Talk for the NZ legal profession. ### Changes in visa requirements for temporary workers in the music, screen and entertainment industry Monday, 30 April 2012 (Source - Immigration New Zealand Changes in visa requirements for temporary workers in the music, screen and entertainment industry take effect on 30 April 2012.  The changes apply to entertainers, performing artists and associated support personnel, film and video production and post-production crew, producers and directors. What has changed? Previously all such applications needed to be referred to the relevant professional association, industry guild or union such as the New Zealand Film and Video Technicians’ Guild, the Screen Production and Development Association, the Screen Directors’ Guild of New Zealand, New Zealand Actors Equity, the New Zealand Actor’s Guild, or the musicians’ branch of the Service and Food Workers Union. New rules From 30 April 2012 there will be a streamlined process, without any professional association, industry guild or union referral, for applicants whose engagement in New Zealand is: for 14 days or less, or on an official co-production, or with an accredited company. Applications that fall outside these criteria will be subject to the same industry-led labour market testing that currently applies. Accreditation New Zealand companies who seek to engage entertainment industry personnel will be able to apply in advance to Immigration New Zealand (INZ) to become accredited. They must demonstrate that they: are financially sound, have a sound industry track record, have a commitment to engaging and training New Zealanders, and have good work place practices. The relevant professional associations, industry guilds and/or unions will be consulted as part of consideration of applications for accreditation. For more information on the accreditation criteria, please see Entertainment industry accreditation. Approved arts and music festivals Performers and direct support staff attending an ‘approved’ arts or music festival will be able to enter New Zealand as visitors, without having to apply for a visa if they are from one of the more than 50 countries with which New Zealand has a visa-waiver agreement. For an arts or music festival to become ‘approved’, its organisers will have to submit a proposal to INZ demonstrating that their festival meets certain criteria. See the Checklist for Arts and Music Festival Approval Status PDF [334KB] for further information. Rationale for changes The key objective of the changes is to reduce red tape and compliance costs on entertainment industry businesses and to support economic growth. This will ensure that these businesses can get the people they need when they need them, while still providing protection for New Zealand workers. The previous ‘one size fits all’ immigration process, where all applications are referred to industry guilds or unions irrespective of whether there is a risk of displacing New Zealand workers, does not necessarily reflect the requirements of different industry sectors, types of production or other government objectives. Benefits of the changes The changes will make it easier for entertainment industry companies to bring workers to New Zealand. Inbound productions can create a significant number of jobs for New Zealanders across a range of roles.  The changes will reduce the risk of the immigration process reducing New Zealand’s attractiveness to overseas productions. For more information regarding your immigration and visa requirements please contact Auckland law firm Quay Law NZ. Excerpt: Changes in visa requirements for temporary workers in the music, screen and entertainment industry take effect on 30 April 2012. ### Cracking down on tax benefits Source: nz herald Changes announced in this year's Budget, cracking down on tax benefits for people who rent their holiday homes a few times a year, will not affect beachside property prices, says Real Estate Institute chief executive Helen O'Sullivan. Until now, owners had been able to claim large tax deductions on losses made on the properties, even if they were most often used as private holiday homes. But the changes mean owners can only claim on the rented portion. Those who rent their holiday home for 30 days a year and use it themselves for 30 days a year will now only be able to claim a deduction for 50 per cent of their costs, not the 90 per cent they had before. But O'Sullivan said the removal of that perk would not be much of a blow. Most owners just saw the tax benefits as a bonus. People would not buy a bach purely to cut their tax bills, she said. "I don't see that it will have a big impact. I think people saw it as a bit of an upside but not a big driver [in purchasing]." She did not expect to see a flood of properties on to the market when the changes took effect. "If they were bought as investments they will be run as investments - advertised and rented 365 days of the year - and these changes won't impact them." Excerpt: Changes announced in this year’s Budget, cracking down on tax benefits for people who rent their holiday homes a few times a year, will not affect beachside property prices, says Real Estate Institute chief executive Helen O’Sullivan. ### Radical plan for SME tax Radical plan for SME tax - source Stuff Last updated 16/05/2012 JENNY KEOWN The New Zealand Institute of Chartered Accountants has released a ''radical'' paper on how to tax small businesses that potentially takes business away from accountants. Launching the plan in Auckland today, NZICA chief executive Terry McLaughlin said the changes were in the public interest because they were simplified and offered more opportunity for small business owners to file their own returns. ''I have a statutory obligation to act in the public interest and that differentiates us from other bodies,'' he said. ''Now and again you have to make some bold calls and influence the policy agenda. We are very aware that the proposal cuts across established income tax accounting, but we believe this is necessary in order to deliver simplicity to small business owners.'' It's proposing a ''rule of one'' for small business; one return and one payment each month for income tax and GST compliance. Currently, businesses regardless of size have all the same complex compliance issues as to how they pay GST and tax. This often means some micro business can't be bothered filling in forms and don't bother to pay tax on income. Under the proposed tax rules, a business can pay a flat income tax, which covers ACC liabilities, and other obligations. The proposed plan would differentiate business with no employees, a turnover of less than $60,000, and unregistered for GST. They would pay a tax rate of 14 per cent if they are not traders and 7 per cent if they trade in goods. What NZICA calls the ''centrepiece'' of its proposal is a system based on GST for small businesses with turnover less than $600,000. Income tax will be calculated on a cash basis on the GST return and will be essentially a final tax. Income tax and GST will be calculated and paid twice monthly. The Institute began consulting with small business groups, and tax policy officials in October 2009, sparked by members complaints about the complexity of the current system. On the question of how this affects accountants, McLaughlin said it looked at ways to preserve the value of chartered accountants and came up with a ''health check'' system; which essentially means a business will be periodically reviewed by a chartered accountant. McLaughlin concedes that its proposal wasn't popular among some of its members, but said many saw this as an opportunity to be freed up to offer better value for money advice on business strategy, sales plan or other business costings. - © Fairfax NZ News Excerpt: The New Zealand Institute of Chartered Accountants has released a ”radical” paper on how to tax small businesses that potentially takes business away from accountants. ### New Zealand immigration policy changes The changes to immigration family policies will help New Zealand attract and retain skilled migrants, and ensure that family migrants can settle well and are self-sufficient. New Zealand faces growing global competition for migrants with the skills we need to grow our economy. Being able to sponsor your parents to live here is important to help attract and retain skilled migrants. As a result of these policy changes, many skilled migrants who wish to sponsor their parents for residence here will experience a swifter decision and less bureaucratic criteria. This will give New Zealand a competitive advantage in the international hunt for these highly skilled workers. These immigration policy changes will also help ensure we are attracting family migrants who are self-sufficient and can settle well. The door will still be open to parents of other migrants but their applications will not be prioritised. Key changes are as follows: Parent Category Parents will be prioritised: who either have a guaranteed minimum income, or bring funds with them, so are better able to support themselves, or whose adult children earn enough to support their parents without any need for taxpayer assistance. Parents with poor English will continue to be eligible but they must purchase English language tuition to help them to settle well in New Zealand. Background Sponsored parents help maintain family and cultural linkages but most (87 percent of parents surveyed after 18 months residence in New Zealand) are not in paid employment. Around 3,500 – 4,000 parents are approved for residence each year. Sibling and Adult Children Category The Sibling and Adult Child Category will close because it does not generate sufficient economic benefit for New Zealand. Background Only 66 percent of sponsored siblings and adult children interviewed 18 months after gaining residence had jobs, despite a job offer for ongoing and sustainable work being required to gain residence. Residence requirements for young adult children The Dependent Child Category and associated residence requirements will be amended. The criteria are being relaxed so that young adult children aged 18 to 20 may be eligible for residence - even if they have a job in their home country - provided they are single, have no children and are included, or were declared, in their parents’ residence application. Previously adult children in that age group were not able to be included in their parents’ residence application if they had a job in their home country. Those aged 21 to 24 will still only be eligible to migrate if they can show that they are financially dependent. Changes to the sponsorship period Sponsorship includes a responsibility on the New Zealand sponsor to ensure the sponsored person has accommodation and maintenance for a specified time while in New Zealand. Sponsors are also responsible for the costs of outward travel (if repatriation or deportation is required). The sponsorship term for parents will initially remain at five years, but the Government has decided it will amend the Immigration Act 2009 at some time in the future to extend the sponsorship term for family-sponsored migrants to 10 years. The timing for this amendment has not been decided. Find out more call a lawyer at Auckland law firm Quay Law - Contact an Auckland Lawyer Excerpt: The changes to immigration family policies will help New Zealand attract and retain skilled migrants, and ensure that family migrants can settle well and are self-sufficient. ### What is estate administration? Estate Administration is the process of carrying out a person's wishes as set out in their Will.  Making sure their assets are transferred to beneficiaries as smoothly and efficiently as possible. In simple cases it may take just a few weeks to settle everything after Court approval, or longer if there are assets to sell, or any legal or family issues. For more information on your particular estate administration requirements contact the lawyers at Quay Law Barrister and Solicitors in Auckland. www.the-lawyers.co.nz                 Phone: +64 9 5232408                  Contact Us Excerpt: Estate Administration is the process of carrying out a person’s wishes as set out in their Will. ### Privacy Laws in NZ to be overhauled Source: stuff The Government plans to overhaul 20-year-old privacy laws following ''huge changes to technology''. Justice Minister Judith Collins today announced the Government would repeal and re-enact the Privacy Act 1993 following a Law Commission report released last year, which made more than 100 recommendations. "Our current privacy law has been in place for almost 20 years and predates the creation of the internet," Collins said. "Huge changes to technology and information flows have occurred during that time and they have overtaken our privacy laws." Collins said people were expecting more information to be available quickly and were more likely to share "private information''. "The foundations of the Act are sound, but it needs to be updated to reflect our changing attitudes and the way people, business and government use information in the 21st century." The Justice Ministry was reviewing the Law Commission's recommendations and would report back to the Government in September. Further announcements about specific policy proposals would be made later this year, Collins said. Privacy Commissioner Marie Shroff welcomed the government's plans. "Things have changed enormously since the Privacy Act was passed nearly twenty years ago," she said. "Privacy is as important to people as it's ever been. But the Act doesn't always give people the protection they expect and need, particularly in the context of modern technology. "The need for reform is urgent. We want people to trust the new ways in which business and government work. They won't do that unless they're sure that their personal information is properly safeguarded." Excerpt: The Government plans to overhaul 20-year-old privacy laws following ”huge changes to technology”. ### IRD to Tighten Rules on Student Loans (Published in New Zealand Taxation) The Student Loan scheme is set to change, with stricter rules being implemented on borrowers, especially those who travel overseas for extend periods of time. On March 13th Parliament received a report from the New Zealand Finance and Expenditure Committee on the upcoming Student Loan Scheme Amendment Bill. The newly published report contains a summary of the major changes that will be implemented in the bill, along with responses to public submissions that were made regarding the national student loan scheme and potential changes to the system. According to the report, one of the biggest changes brought in by the new bill will be the exclusion of loses from the calculation of incomes for student loan repayments, which will increase personal responsibility for debt repayment and maximize the amount of payments of loans. The new Bill will also bring in rules mandating that all new student loan applications must nominate a third party to be responsible for maintaining up to date contact details of the borrower, and providing the information to Study Link upon request. The new regulations will allow the Inland Revenue Department to receive and use the contact details of the nominated person, when trying to reach a student loan holder who has left New Zealand. The repayment holiday currently available to borrowers who travel overseas will be reduced from three years to one year. Anyone applying for the repayment break will be required to provide details of a New Zealand based contact person in order to be granted the holiday. The new report also contained several questions that were raised by the public regarding the Student Loan amendments, however, the Committee did not recommend changes to the Bill following the raised concerns. Excerpt: The Student Loan scheme is set to change, with stricter rules being implemented on borrowers, especially those who travel overseas for extend periods of time. ### Revenue Minister Outlines Tax Changes Article published in NZ TAXATION and seen in LinkedIN Revenue Minister Outlines Tax Changes New Zealand will strive to to ensure that the national tax system stays modern and efficient while providing adequate streams of revenues for the government. While giving a speech at a conference of the Tax Agent’s Institute of New Zealand in Waitangi on March 9th, the Revenue Minister Peter Dunne summarized the government’s intentions for the national tax system and describe the actions that will be taken to improve the country’s economic performance over the next year. According to the Minister, later in March the government will release its tax policy work programme for the next eighteen months, outlining a number of small changes to the tax system aimed at increasing the international competitiveness of New Zealand and raising the productivity in the national economy. He explained that the programme will maintain the present tax regulations, but will contain a number of small and “mundane” changes which will assist the government in achieving its own fiscal priorities. Aside from raising extra tax revenues, the work programme will also aim to reduce the administration and processing costs borne by the Inland Revenue Department, and will also lower the compliance costs faced by taxpayers in New Zealand. In his speech the Minister also confirmed that investigations are currently being held into the feasibility of upgrading the IRD’s technological systems. The IRD’s current IT infrastructure was designed over two decades ago, and was not intended to handle the Student Loan repayments, KiwiSaver and processing of child support payments. In addition, the systems did not originally take into account the possibility of electronic filing and storage of electronic documents of taxpayers, and work will need to be done to facilitate a greater use of electronic filing and record keeping in New Zealand. Excerpt: New Zealand will strive to to ensure that the national tax system stays modern and efficient while providing adequate streams of revenues for the government. ### Immigration New Zealand's Vision for 2015 Source nz.new.yahoo.com Education New Zealand is welcoming the release of Immigration New Zealand's 'Vision for 2015'. The Government plans to double the economic value of international education to 5.5-billion over the next 15-years. Education New Zealand chairman Charles Finny says the connection of strategies between government agencies is paramount to success. He says Education New Zealand is already working closely with other agencies on a number of shared initiatives. Mr Finny says international education is a key pillar in strengthening New Zealand's economic, cultural and social links with the world. Excerpt: Education New Zealand is welcoming the release of Immigration New Zealand’s ‘Vision for 2015’. ### Probate and Estate Administration - Resolving the Estate Coping with the death of a loved one is never easy.  If you are confronted with that situation our legal team at Quay Law are able to assist you with the adminstration of the Estate. Once we have received the instructions to act  and administer the Estate, we commence with the  practical matters of resolving the Estate,   Our first action is to obtain Probate from the High Court (the authority to enable you to administer the Will).   Probate allows  us to gain access to Bank accounts and so on at the earliest possible opportunity. For more information regarding the administration of an Estate, please contact a lawyer at Quay Law. Ph: 09 5232408               www.yourwill.co.nz Contact Quay Law Your Name (required) Your Email (required) Your Contact Day Time Phone Number (required) Subject How can our lawyers assist you? (required) Excerpt: Coping with the death of a loved one is never easy. If you are confronted with that situation our legal team at Quay Law are able to assist you with the adminstration of the Estate. ### Heir vs Beneficiary of a Will. A last will and testament  is  important.  Mistakes or misunderstandings can be costly, both emotionally and financially for your heirs.  It is important that your will is carefully drafted so as to ensure, as far as possible, that it will not be attacked from some quarter following your death. A frequently asked question.  What is the difference between heir and beneficiaries?  The difference of heir vs. beneficiary is a common question amongst those engaged in estate planning. Heir refers to individuals entitled to assets owned by a deceased relative. Beneficiary refers to individuals who receive inheritance gifts through a decedent's last will and testament. For more information regarding your will please contact our Auckland lawyers at  Quay Law Barrister and Solicitor. Ph: 09 5232408 Excerpt: A last will and testament is important. Mistakes or misunderstandings can be costly, both emotionally and financially for your heirs. ### Is your Last Will and Testament up to date OR do you even have a Will? Time to review your Will? Our lawyers recommend that you review your Will regularly. By way of example. Some wills include specific bequests to particular heirs e.g. my house (address) to “A” and my shares (company name) to “B”. Do you still own that house at that address and those shares in that company? Life takes its course and circumstances change. A regular review will ensure your Will is up to date and written for your current situation. Auckland Law Firm Ph: (09) 523 2408 LINK: www.yourwill.co.nz Excerpt: Our lawyers recommend that you review your Will regularly. By way of example. ### Have you reviewed your Trust Documents lately? Gift duty was abolished with effect from 1 October 2011. This has had  a practical impact and effect on people with existing family trusts. For any enquiries that you may have in this regard, contact Auckland law firm Quay Law on (09) 523-2408      or      email quaylaw@quaylaw.co.nz www.quaylaw.co.nz Family Trusts       Gift Duty    Trust Lawyer     Quay Law Excerpt: Gift duty was abolished with effect from 1 October 2011. ### Property Law - Who should be the first person to Review your Sale and Purchase Agreement? Ph: (09) 523-2408 Property Law in New Zealand. It is a good idea to have your solicitor review any Sale and Purchase Agreement prior to the agreement being signed. This is to ensure all the necessary conditions are included within theproperty agreement. For more information regarding the legal aspects pertaining to legal transaction contact an experience lawyer at Auckland law firm, Quay Law. We are conveniently situated in Remuera with easy access to free parking on St Vincent Avenue. LINK - our Property Law Website - "The Property" www.quaylaw.co.nz Property Law Conveyancing Auckland Law Firm Excerpt: It is a good idea to have your solicitor review any Sale and Purchase Agreement prior to the agreement being signed. ### Buying a Property - What is the best form of ownership? When buying a property or home it is important to consider what the best form of ownership is for your situation. Our conveyancers will discuss the various legal options available to you as these will differ depending on if you are buying a rental investment property or a home to live in and on your personal circumstances. It is essential to get professional advice on your structuring options prior to signing your contract for Sale and Purchase of Property Agreement Contact Quay Law (09) 5232408 Excerpt: When buying a property or home it is important to consider what the best form of ownership is for your situation. ### Social Media Law International Social Media law as it unfolds. Excerpt: International Social Media law as it unfolds. ### Trading trusts reform in spotlight Trusts reform in spotlight Source stuff : 07/01/2012 ROB STOCK The Law Commission is seeking views on whether the veil of secrecy surrounding trading trusts needs to be lifted to protect both creditors and the integrity of the Companies Register. Trading trusts are structures where the trustee of the entity is a limited liability company, instead of a person. The assets of the company are held by the trust for the benefit of the trustee. One result of this is that if the business fails, creditors can face significant legal hurdles in trying to get paid. In its latest discussion paper on trust law, the Law Commission says there are concerns that creditors are unaware that they are dealing with a trust when extending credit. "They may wrongly assume that assets are held both legally and beneficially by the company, when in fact they are held on trust and the company itself has very limited assets, which may affect the creditor's prospect of recovering their debt," the commission said. In particular, creditors need to be very sure that the debts are not being incurred outside the terms of the trading trust's deed or they could prove unenforceable, leading to the equivalent of a windfall to beneficiaries. There have been concerns raised in New Zealand over trading trust secrecy, including by Justice Richard Blanchard who commented on the lack of transparency in trusts and queried whether trustees ought to be required to reveal the existence of the trust. The Insolvency and Trustee Service has also told the commission that it has encountered at least one case where creditors have thought they were dealing with a company but the assets were in fact held on trust. The commission said: "Without disclosure of the fact that the company is acting as trustee, the creditor is not aware of the need to take greater precautions to protect its position, such as requiring security, guarantees, or making enquiries about the nature of the trust arrangement, the authority of the trustee to incur liabilities, the status of the trustee's right to indemnity, and the value of the company's assets owned outright. "There is also an argument to be made that if there continues to be no disclosure requirement, widespread use of the trading trust structure could impact on the integrity of the Companies Register as it would only show an incomplete picture of the company." The commission is seeking submissions on proposals including requiring trading trusts to reveal their existence, which could be done through a new register of trusts. However that could prove costly. An alternative would be to require disclosure of a company's status as a trustee through the Companies Register, though the commission commented: "This may be a bit of a waste of time, as in practice, creditors may not use the Companies Register to check the status of the company." Another option would be to place a positive obligation on the directors of the company to inform creditors and prospective creditors that the company was acting as a trustee, the commission said. There could also be the requirement to reveal the fact in all contracts and company documents, which would have to state something along the lines of "(name here) Trust trading through (name here) Limited". A similar suggestion was made in Australia in the mid-1980s but did not go ahead, something that some commentators have later rued. But the commission is by no means certain that bringing in greater disclosure for trading trusts – and there is uncertainty about how many there actually are – would have much impact on its own. "Disclosure about trustee status and potentially other relevant information is still likely to be insufficient in and of itself in protecting creditors, especially unsophisticated ones who do not appreciate the implications of dealing with a trustee. Disclosure would probably need to be considered in conjunction with other possible reform options," it said. These could include changing the law to strengthen the protections and channels for creditors seeking to be repaid by trading trusts. WHAT IS A TRADING TRUST? The term "trading trust" is often used to describe a structure in which the trustee of a trust is a limited liability company, instead of a person. The assets of the company are owned by the beneficiaries of the trust, so that if the company fails, creditors can face great difficulty in getting paid. Often they are operated by professionals like lawyers and accountants for clients. Creditors need to tread with great care when lending or extending goods or services to a company acting as a trustee. - Canterbury Excerpt: The Law Commission is seeking views on whether the veil of secrecy surrounding trading trusts needs to be lifted to protect both creditors and the integrity of the Companies Register. ### What do you want to read about in our law firm blog? As most people head back to work this week, I thought I'd take this opportunity to thank each and every one of you for following my blog or connecting with our Quay Law team via a social media profile. As 2012 kick starts, I thought I would take the liberty of asking you what you would like me to cover in our Auckland law firm blog over the course of this year? Do you have any legal questions that you would like answered? Do you have a specific topic you'd like more information on? I look forward to your feedback. Kind regards Ian Mellett Solicitor and Principal at Quay Law (Remuera) Excerpt: As most people head back to work this week, I thought I’d take this opportunity to thank each and every one of you for following my blog or connecting with our Quay Law team via a social media profile. ### Happy New Year from your Auckland Law Firm The team and lawyers at Quay Law wish you and your nearest and dearest a New Year full of success and good tidings. Happy 2012! Law Firm, Remuera, Auckland 09 5232408 Excerpt: The team and lawyers at Quay Law wish you and your nearest and dearest a New Year full of success and good tidings. Happy 2012! ### Our thoughts are with the people of Christchurch Our thoughts go out to the people of Christchurch as another large earthquake hits your beautiful city. Take care !!! Excerpt: Our thoughts go out to the people of Christchurch as another large earthquake hits your beautiful city. ### Our team and lawyers wish you Merry Christmas and a Happy New Year - Quay Law The legal team at Auckland law firm Quay Law would like to wish our clients, friends and families a very Merry Christmas and a Happy New Year. Should you require urgent legal support over this festive break you can contact Ian Mellett on Mobile 021 043 2373. With best wishes The team at Quay Law 427 Remuera Road, Remuera, Auckland, New Zealand Ph: (09) 5232408 Excerpt: The legal team at Auckland law firm Quay Law would like to wish our clients, friends and families a very Merry Christmas and a Happy New Year. ### Property Law – Due Diligence Clause in your Sale and Purchase Agreement (Conveyancing). Property Law – Due Diligence Clause in your Sale and Purchase Agreement. In a recent High Court case, the decision clarified when a property purchaser may lawfully exercise the right of cancellation in a conditional sale and purchase agreement pursuant to a due diligence clause. The Court held that an agreement can be worded so as to make the satisfaction of a condition entirely a matter for subjective determination of a property purchaser. This case is based on what the parties had done using a similar phrase to those below in their property agreement: “.. the Purchaser being satisfied that...” “In the event that the Purchaser is not satisfied with any aspect…” “… the Purchaser shall not be obliged to give reasons …” The Court stressed that it is a matter of wording in respect of the individual agreement. If a clause provides for a subjective determination without any obligation to disclose reasons, it is difficult to see how it can restrict the matters that the property purchaser can take into account. This case highlights the importance of fully understanding and being aware of the implications of any legal contract and reinforces the importance of taking legal advice before signing a legally binding contract. For further conveyancing information on your Agreements or Contracts contact Auckland law firm, Quay Law in Remuera. Ph: (09) 5232408 Excerpt: In a recent High Court case, the decision clarified when a property purchaser may lawfully exercise the right of cancellation in a conditional sale and purchase agreement pursuant to a due diligence clause. ### Protection of your business domain name! New .xxx suffix too tempting to ignore Last updated 05:00 11/12/2011 IAN STEWARD An adults-only, racy Trade Me? New Zealand companies are scrambling to buy up the new .xxx pornography version of their internet addresses, but not to create X-rated versions of their sites. The new .xxx suffix for websites officially went on sale on Tuesday, aiming to create a home for the internet's vast store of pornography, which is currently available on .com and .net websites. New Zealand companies have been quick to act, with such brands as trademe.xxx and allblacks.xxx already taken. The rationale is not to use the new addresses, but to prevent others from using them and besmirching their good names. New Zealand Rugby Union public affairs general manager Nick Brown confirmed the union had purchased the allblacks.xxx name. "We think that purchasing this domain is a sensible way to protect the integrity of our brand." Air New Zealand said it bought its .xxx domain as "standard practice" to protect the company brand. Trade Me spokesman Paul Ford said they had used a "protection mechanism" to block trademe.xxx from being registered. He said there was a "general desire" not to have Trade Me associated with the xxx domain, but they also wanted to protect people from fraud. "We don't want scammers and other nefarious types using the Trade Me name to host a dodgy site in Nigeria or Romania." Mystery surrounds the address bnz.xxx. Someone has reserved the domain but a spokeswoman from the bank said it wasn't the BNZ. For those with the desire to set up their own adult site, all is not lost – among those still available for registration are tvnz.xxx, radionz.xxx, and nzpolice.xxx. - Sunday Star Times Excerpt: New Zealand companies are scrambling to buy up the new .xxx pornography version of their internet addresses, but not to create X-rated versions of their sites. ### A Christmas funny from our legal team An early Christmas funny from the team at Quay Law. Excerpt: An early Christmas funny from the team at Quay Law. ### Auckland Council Valuation - Owners have until December 16 to object to their valuation Source:  Weekend Herald - November 2011 Auckland Council's revised property valuations are supposed to represent probable market value. The Weekend Herald put them to the test at a busy auction day. Phil Taylor reports It seems owners held off selling until after the Rugby World Cup. That, and the springtime bump, have Barfoot and Thompson's auction rooms buzzing. It is Wednesday, and five auctioneers take turns chomping through 74 properties. Sixty-four per cent sell. It takes most of the day so February must be a frenzy. As many as 100 can go under the hammer in a day in real estate's busiest month, auction manager Tim Carter tells the throng that ebbs and flows through the day from 20 to 100 people. Carter is friendly, his patter smooth, his dress immaculate. Presentation is the first rule of sales and that doesn't just apply to the merchandise. Buyers wear what they like, it's their money that talks. Today some wear business attire, others dress casual. An older man is in shorts. The fun begins almost immediately and during what should be the sombre part, the mortgagee auctions. Agents take instructions from vendor-bankers on the phone who make cool decisions on the numbers, unencumbered by emotion. But come Lot 5 and a discernible giddiness leaks through the room. Three bidders battle for a one-bedroom apartment with covered balcony, near Myers Park in the city. At $52,000 the bank says it's on the market and at $60,000 the pretty Asian woman in the "Julius the Monkey" T-shirt is the new owner. Nerves give way to relief, exhilaration maybe. The man in the hoodie hugs her. It will turn out to be the low price of the auction. The buyer later introduces herself as "Tina". She is effervescent. It's her and her partner's first auction and first investment property. They own their home in Henderson Heights and she is on maternity leave from her accounts job. In contrast a once-high-flying-but-now-bankrupt developer sits at the front raising his hand to up the ante during another mortgagee lot two partly built Parnell townhouses. David Henderson knows the ropes. He goes about the task perfunctorily, reaches the point his party won't go beyond and the hammer falls in favour of another bidder at $2.45 million. There are several small offices at the rear of the room where agents take instructions from vendors as bidding progresses. A wallchart depicts the property clock: 12 o'clock, boom; 3 o'clock, corporate failures and falling commodity prices; 6 o'clock, falling real estate values. In the foyer is a framed quote from Maurice Thompson, a company founder. "The longer I live the more certain I am that enthusiasm is the little recognised secret of success." It recharges mind and body and, says Thompson, "is the enemy of pessimism for which there is no room in a real estate agency". Some properties are passed in, a handful don't attract a bid but mostly sales are buoyant. Many people do their own bidding, often chasing a home of their dreams. Eager contests pump prices and the fall of the hammer produces winner and loser, elation and deflation. A character three-bedroom Grey Lynn villa comes down to a battle between two determined bidders. The winner is a pregnant women with a baby in tow. Tears, embraces, then off to complete the paperwork. At $1.038 million, the villa fetched 25 per cent more than the council's new valuation of $830,000 (itself way up from $680,000 previously). One agent thinks the claim that the new valuations are "probable market value" absurd. "It's all over the place," she tells the Weekend Herald. Another estimates a third are about right and a third each are above and below, sometimes significantly. The valuations are a distraction, that agent says, and may cause the internet-savvy (who check valuations online and decide not to bid) to miss out. But optimism is the flavour of this day. The Grey Lynn villa reflects the trend the average (disregarding mortgagee sales) is 24 per cent above the council's valuation. It could have been higher. Some auctions leave you scratching your head, such as the Sandringham three-bedroom brick and tile cross-lease where the vendors turned down an offer 41 per cent above the council's valuation of $325,000. Or the three-bedroom with the modern kitchen and double garage in Blockhouse Bay, passed in despite an offer 45 per cent above the valuation of $330,000. Do the owners know something the council doesn't? The biggest "over" among the day's sales is a picture-perfect four-bedroom Croydon Rd, Mt Eden villa that fetched $1.285 million 34 per cent above the new valuation of $960,000 (up from $880,000). Something's happening. A luxury apartment sold for 45 per cent above valuation at a Bayleys auction this month, fetching $1.42 million, and a Remuera house topped that, selling at 51 per cent above valuation for $2.85 million. At the beginning of the month Quotable Value reported Auckland was back nudging record boom-time prices. Overheated? One agent risks contravening the Code of Enthusiasm with a word of caution. Are buyers not watching what is happening in Europe? Property is flat in Australia and our interest rates are hardly likely to drop further. A mini-boom that may bust, she wonders. Could it be that it is 35 minutes past the hour on the property clock "Hesitant uneven recovery"? Auckland Council's valuation team leader Peter McKay isn't surprised by the trend of prices outstripping valuations. The valuations aimed to reflect the market on July 1 and it has continued to rise steadily, particularly in inner-city suburbs. With 40 valuers assessing Auckland's 516,000 properties it is impossible to visit them. Instead relevant sales are scanned to pick trends and consent files examined for improvements. So far 4000 objections have been lodged and come from both those whose valuations have risen and fallen. Big increases mean higher rates but could help those planning to sell, the opposite applies for decreases. Some whose valuation dropped markedly have run into money problems as banks demand more collateral, such as Hein Erasmus, owner of a leaky Gulf Harbour property. He borrowed about 80 per cent of the previous valuation of $345,000. "The problem now," he said this month, "is the valuation has dropped 67 per cent to $121,000 because it is a leaky complex. We owe the bank 247 per cent of the value." McKay says it is unusual for properties to decrease. Most common reason are weathertightness issues, land changes (such as subsidence) and the impact of the global financial crisis. In the auction room there is an outburst of enthusiasm. C'mon, the auctioneer cajoles a hesitating bidder, "it's only money". "Is that your Mother? Don't listen to her, mothers always say 'no'." Back at the office a check of the council valuation for Tina's apartment reveals it is $160,000. She has bought at 62 per cent below valuation the biggest discount of the day. Tina could just be laughing all the way to the bank. - Additional reporting: Anne Gibson Revaluing the Super City * Biggest revaluation with 516,000 properties assessed by 40 valuers from Auckland Council and Quotable Value. * Aimed to bring valuations by the former councils under one umbrella and timeframe and to set rates. * Aimed to reflect "probable market value" as at July 1 but not intended for marketing or mortgages. * Properties assessed by examining relevant sales and registered improvements. * Normally properties increase in value but this time some fell, the main reasons being weathertightness (those with a history of leaks and those built of materials associated with leaks), land changes (such as subsidence) and the impact of the global financial crisis. * Owners have until December 16 to object to their valuation. Excerpt: Auckland Council’s revised property valuations are supposed to represent probable market value. ### Auckland Capital Values - another Perspective! Some information received from Rob Ashton of Bayleys (Remuera)  Today the Auckland Council have published, on their website (www.aucklandcity.govt.nz), their new 2011 Capital Values which are valid as from the 1st July 2011.  To get some idea of the current relationship between Market Value and the new 2011 Capital Values I have analyzed 100 recent residential property sales in Remuera & Parnell since 1st July 2011.  Key: 2011 Capital Values – Grey % Increase in 2008 CV – Green No change in CV – Light Yellow % Decrease in 2008 CV - Red  If you would like to know if your new Capital Value is fair / reasonable, I trust this information will be of some use to you.  In summary Rob Ashton, Real Estate Agent provides the following information:  Both the median & average 2011 SP/CV ratio = 1.06         ie. 6% above the 2011 CV The 2011 SP/CV ratios ranged from a min of 0.66 to a max of 1.39 The median % change in CV was an increase of 7.1% 67% of the properties had an increase in CV (Green) 18% of the properties had no change in CV  ie. 2008CV = 2011CV (Yellow) 15% of the properties had a decrease in CV (Red) The max increase in CV was 42.3% The max decrease in CV was -22.2% Our Property lawyers at Quay Law would like to thank Rob for sharing this information with us. Excerpt: Some information received from Rob Ashton of Bayleys (Remuera) ### Competition hot in first-home property market - but dont forget to get good advice from your lawyer. Source: NZ Herald - November 2011 A shortage of houses in the first-home buyers' market over winter has caused a rise in multi-offer agreements, confusing those new to the real estate game. Multi-offer agreements are when more than one written offer is received for a property at one time, turning a sale by negotiation into a sale by tender. Real estate agents are warning first-home buyers to be aware of the rules of multi-offer agreements so they don't miss out when making an offer. "Multiple offers occur on a regular basis and were particularly prevalent over the winter and spring months when there were very low levels of stock on the market, but there was also high buyer demand," said Rachel Dovey of Bayleys Real Estate. As soon as two or more purchasers were willing to put an offer on paper, negotiations halted and all parties were invited to present their best offer. The offers, in sealed envelopes, were then presented to the vendor. A seller then chose their preferred offer, whether it be the highest price, least conditions or family over developer. Kiri Barfoot, of Barfoot and Thompson, said prospective buyers needed to realise there was no room for negotiation after envelopes were sealed and buyers had to put their best offer forward. "In this situation, people need to get good advice from their lawyer and real estate agent. There are no second chances" she said. Barfoot said multi-offer agreements had been around for years but first-home buyers may not have heard of them. Barfoot advised buyers to do their homework and make informed offers. "Often first-home buyers like to get advice from everyone and, by that stage, someone else has fallen in love with the property as well and are ready to make an offer." This article was shared with you by the Auckland law firm conveyancing team at Quay law.  To chat to one of our friendly lawyers please contact us. Excerpt: A shortage of houses in the first-home buyers’ market over winter has caused a rise in multi-offer agreements, confusing those new to the real estate game. ### What is a legal contract? What is a contract? A contract can take different forms, some are verbal, some written, some are formal and some informal.  Irrespective of the format a contract essentially comprises of some common elements: you make someone an offer they accept it  and you promise to give something or do something in return for what you're getting. The legal term for this promise is "consideration". You should never sign a contract unless you are sure you understand the contents of the document and are very clear about the intentions as outlined in the document.  In general terms once you have signed the document / contract, you won't be able to get out of it later. And if there are any terms within the document that you don't understand, get legal advice. Generally, contracts don't have to be in writing. A verbal agreement is binding but if things go wrong, how do you prove the terms of a verbal contract? Putting the contract in writing also makes sure you both understand exactly what's being promised before you agree. Remember that when you enter into a contract, you are bound by everything you have specifically agreed with the other person or company / organization.  You may also be bound by terms and conditions that were not specifically mentioned but are assumed under the law to be part of the contract (example the Consumer Guarantees Act) “It is advisable to get legal advice before entering into a contract to buy or sell real estate (Agreement for Sale and Purchase of Real Estate). To contact an Auckland lawyer at Quay Law Barrister and Solictor ph (09) 523 2408. Excerpt: A contract can take different forms, some are verbal, some written, some are formal and some informal. ### What is a trust? A question our Auckland lawyers and trust specialists are often asked  is "What is a  trust ?" By way of a simple explanation, a trust is a form of transport, much like a container truck.  The driver and co-driver are the Trustees, who are charged with ensuring the safe transportation of the container contents, being the Trusts Assets, for the benefits of the recipient, being the Beneficiaries of the Trust. Could a trust benefit me and my family and when should I use a trust ? It is advisable to meet with a trust specialist as soon as you have any assets. Ask yourself, do I want to lose my assets to creditors or the Government?  If the answer is “No” to those questions, then speak to a Trust specialist regarding a  Trust.  Trusts are an invaluable asset protection tool and mechanism for preserving one’s wealth. If you have an existing trust,  it is advisable that this trust and gifting is reviewed with your trust specialist in order for your trust to be brought into line with the Gift Duty changes that have occurred during 2011.  This law change has a  practical impact and effect on people with existing family trusts, and also for those contemplating the establishment of a new family trust. To contact a lawyer at Quay Law and to further the discussion around "what is a trust and can it benefit my family and circumstances?"  contact Quay Law on (09) 523 2408 or visit our legal website. Quay Law Barrister and Solicitor - unlocking your legal solutions    Excerpt: A question our Auckland lawyers and trust specialists are often asked is “What is a trust ?” ### THE UNIT TITLES ACT 2010 - New Zealand Law  Auckland lawyer Ian Mellett discusses some of the matters that you need to be aware of following the introduction of the Unit Titles Act 2010.  Unit titles are the most widely used form of multi-unit property ownership.  Typical examples of unit title developments include apartment blocks, units, townhouses, office blocks and industrial or retail complexes.  The owners in a unit title development own a defined part of the building, for example an apartment or unit, and may also have shared ownership in common areas such as lobbies, lifts and driveways. It is important to realise that the combination of individual and shared ownership of land and buildings necessarily means that ownership of a unit title entails a different set of rights and responsibilities compared to the traditional concept of house and land ownership.  Unit title developments have a body corporate management structure, and all the unit owners collectively make up the body corporate.  The body corporate assumes responsibility for a range of matters, including the management, finance and administration of the common property and the building as a whole, and ensures that decisions affecting the development can be made jointly by the unit owners. There have been numerous changes to the scale and nature of property developments in New Zealand since the original Unit Titles Act came into force in 1972.  As a consequence the old Act became out-dated and the new legislation now provides the basis for the creation and sustainable management of intensive, multi-unit developments.  Implementation The Unit Titles Act 2010 (“the Act”) came into force on 20 June 2011.  The majority of the provisions of the Act apply from that date, and the other provisions apply from the end of a 15 month transition period which started on 20 June 2011 and will end on 1 October 2012.  The purpose of the transition period is to give bodies corporate the opportunity to prepare for the new default body corporate operational rules and the new maintenance requirements contained in the Act.  In effect the Act provides the framework, whereas the Unit Title Regulations 2011 (“the Regulations”) provide the guide as to what people have to do.  The Regulations deal with matters pertaining to administration, governance, democracy, finance, disclosure and forms and certificates. Body corporate rules Existing body corporate rules made under the old Act will continue to apply until 1 October 2012, although many of the provisions in the existing rules are overridden by the new Act.  The old Act contained schedules which set out the default body corporate rules.  The default body corporate operational rules are now set out in the Regulations.  Provisions in the new Act and Regulations that override the corresponding provisions in existing body corporate rules include provisions relating to the duties of owners and the body corporate, the operation of the committee, and meetings and voting. The new default operational rules will apply from 1 October 2012.  Obviously bodies corporate will be able to revoke, amend or add to the default rules set out in the Regulations.  Unit owners should make sure that they have the most up-to-date copy of the rules that apply to their development.  It is recommended that the transition period be used to prepare any changes to the new rules that may be considered necessary.  Bodies corporate are also able to opt into the new default rules at any time before 1 October 2012.  They should be aware that matters that were in the existing rules and are now set out in the new Act or the Regulations cannot be changed. Maintenance requirements With regard to maintenance requirements, the default body corporate rules in the old Act provide that the body corporate is responsible for maintaining the common property and utilities serving the Units.  The new Act expands the maintenance requirements for bodies corporate, but in respect of existing developments the new requirements only apply from 1 October 2012.  It is possible to opt into the new requirements earlier. Once the transition period has expired, the body corporate’s responsibility for maintenance will entail the common property and all building elements and infrastructure which serve more than one unit.  Importantly, it will also be a requirement for bodies corporate to set up a long-term maintenance plan which covers at least 10 years and establish a fund for that plan.  The plan must be updated at least once every 3 years. Financial management Bodies corporate have a number of financial powers and responsibilities under the new Act.  They must keep accounting records, detailing all the financial transactions of the body corporate, and use these records to prepare financial statements (including financial position, income and expenditure, explanatory material and notes).  An operating account must be established, and is used to meet the operational expenses that relate to the unit title development.  The new Regulations contain some restrictions on unbudgeted spending from the operating account, only allowing unbudgeted spending if it is under 10% of the annual budget. Buying and selling a unit - disclosure Buying and selling a unit in a unit title development is more complicated than a traditional house purchase, as there are additional rights and responsibilities to consider, more people involved and ongoing financial commitments of the body corporate.  Accordingly the requirement of disclosure is important to enable the buyer to make an informed decision.  Under the new Act sellers of unit titles are obliged to provide prospective buyers with a series of disclosure statements to facilitate an informed purchase decision. The new Act provides for three types of disclosure.  Firstly, the pre-contract disclosure statement which the seller provides before entering into an agreement for sale and purchase and contains basic information about the unit title and some specific information about the unit/development.  Secondly, the pre-settlement disclosure statement which the seller provides after entering the agreement for sale and purchase but before settlement and contains financial information about the unit, levies etc.  Thirdly, an additional disclosure statement which the seller provides on request of the buyer and contains key information about the development, financial statements, long-term maintenance plans, contracts and insurance.  The new Regulations prescribe the  specific information that must be provided in each disclosure statement. There are various other aspects which are dealt with under the new Act and Regulations.  These include how to call a meeting, what you might want to consider at your first AGM following 20 June 2011, the role of the chairperson, committee members and representatives, and how to deal with disputes. The new Act and Regulations have been designed to be user-friendly and to better facilitate the management of unit title developments.  However there are more responsibilities placed upon unit owners and bodies corporate and it is important to ensure that you are aware of these. Please feel free to contact Ian Mellett (BComm LLB H Dip Tax) at Auckland law firm Quay Law on (09) 523 2408 or ian.mellett@quaylaw.co.nz for more information.  Our website address is www.quaylaw.co.nz and our blog for regular NZ law tips and updates is www.aucklandlawfirm.co.nz. Excerpt: Auckland lawyer Ian Mellett discusses some of the matters that you need to be aware of following the introduction of the Unit Titles Act 2010. ### Purchasing a property at a mortgagee sale? Tips and Traps. The risks associated with purchasing a property at a mortgagee sale. In previous articles and legal tips we have covered the differences in purchasing a property at auction as apposed to negotiating for a property using the Standard Sale and Purchase Agreement through a real estate agent. Mortgagee auctions differ again in that these types of auctions usually result from the existing owner having defaulted on their property / mortgage loan repayment. Purchasing a property at a mortagee sale carries additional risks for the purchaser: There is not cover for damage to the property prior to settlement i.e. post auction and prior to settlement. Chattels can be removed prior to settlement as the bank usually only has security over the property and not the dishwasher, curtains, light fittings, floor coverings, alarm etc. Vacant possession on settlement may not be achieved and it would be at the purchasers cost to evict the current tenant or property owner. Access to the property may be difficult and often this may mean that you may not be able to undertake the usual due diligence such as building inspection etc. There are no Vendor warranties such as Code of Compliance Certificates. As a potential purchaser of a mortgagee property at a mortgagee sale, you should do your homework on the property before the auction or submitting an offer. Your solicitor / property lawyer should always review the legal documents and you should clarify your level of risk, should you proceed with the purchase. For more information please contact the property law team at Quay Law Barrister and Solicitors in Auckland. Our law firm offers fixed price conveyancing on standard residential transactions. Quay Law Website Property Law Website Excerpt: In previous articles and legal tips we have covered the differences in purchasing a property at auction as apposed to negotiating for a property using the Standard Sale and Purchase ### Bill introduced to tighten rules around companies Source: beehive.govt.nz    Simon Power Date of Release.  13 OCTOBER, 2011 A bill that tightens rules around company directors and company registration was introduced to Parliament today by Commerce Minister Simon Power. “New Zealand has an international reputation as one of the best and most trusted places in the world to do business,” Mr Power said. “However, that is threatened by overseas interests using New Zealand-registered shell companies to undertake criminal activity. “The Companies and Limited Partnerships Amendment Bill will aid in stamping out this kind of behaviour and help ensure New Zealand remains a trusted place to do business.” The bill will: Require each company registered in New Zealand to have a resident agent if there is no director living in New Zealand or in an approved jurisdiction. Resident agents will be responsible for ensuring companies provide accurate information to the Registrar of Companies, and will be liable if companies breach their record-keeping and filing requirements under the Companies Act. Give new powers to the Registrar of Companies to investigate and deal with non-compliance with the Companies Act. This includes the power to ‘flag’ companies on the register that are under investigation. Allow the removal of companies from the register if they provide inaccurate information or persistently fail to comply with the act. The Registrar will also be able to ban directors of such companies from taking part in the management of any company for up to five years. Make similar changes to the Limited Partnerships Act, so that those misusing New Zealand companies cannot avoid the new regime by registering limited partnerships instead. Better align the Companies Act with the Takeovers Code to ensure shareholders understand the effect that changes in company control will have on the value of their shares. Introduce criminal offences for directors who commit a serious breach of their duties to act in good faith and in the best interests of the company, and to not carry on business in a way that risks serious loss to the company’s creditors. Directors who commit these offences are liable for imprisonment of up 5 years or fines of up to $200,000. Excerpt: A bill that tightens rules around company directors and company registration was introduced to Parliament today by Commerce Minister Simon Power. ### Go All Blacks- well done! The team at Quay Law congratulate the All Blacks on their Rugby World Cup win. Excerpt: The team at Quay Law congratulate the All Blacks on their Rugby World Cup win. ### Conveyancing - Options when purchasing a new home or property! When purchasing a residential property, you can either purchase the property in your personal name/s or in another entity, for example a family trust. Family trusts have asset protection and numerous other advantages and are often used to own property. The abolition of gift duty from 1 October 2011 now makes it even more attractive to purchase and hold property and other assets in a trust. If you require more information in this regard, please contact the conveyancing team at  Auckland law firm Quay Law on ph (09) 523 2408 or email quaylaw@quaylaw.co.nz Excerpt: When purchasing a residential property, you can either purchase the property in your personal name/s or in another entity, for example a family trust. ### Family Trusts - Gift duty is to be abolished with effect from 1 October 2011. Ian Mellett Gift duty is to be abolished with effect from 1 October 2011. This will have a practical impact and effect on people with existing family trusts, and also for those contemplating the establishment of a new family trust. For any enquiries that you may have in this regard, contact Auckland law firm Quay Law on (09) 523-2408      or      email quaylaw@quaylaw.co.nz www.quaylaw.co.nz Excerpt: Gift duty is to be abolished with effect from 1 October 2011. ### Family Trusts in Spotlight Warning Article: businessday.co.Nz Sole practitioners and businesses with family trusts should review their structures to ensure they do not fall foul of Inland Revenue after the landmark Penny and Hooper tax-avoidance ruling. That's the advice from the New Zealand Institute of Chartered Accountants (NZICA) after meeting with IRD yesterday over the Supreme Court ruling. The Supreme Court this week upheld the ruling of the Court of Appeal that two Christchurch orthopaedic surgeons, Ian Penny and Gary Hooper, paid themselves unrealistically low salaries to avoid paying the 39 per cent tax rate. They used company and trust structures for that purpose. Lawyers, accountants and business advisers want IRD to say what acceptable salaries would be and where the line will be drawn between acceptable and unacceptable. NZICA tax director Crag Macalister said it wanted more certainty from IRD over what constituted artificially low salaries. Penny and Hooper paid themselves less than 20 per cent of the net earnings they were bringing into their practices over the three years in question in the court case, 2001-2004. A good deal of the net revenue of the companies they set up – which employed them – went as dividends, taxed at a lower rate than the 39 per cent personal rate, to family trusts from which they and their families benefited. Macalister said the problem was that the Penny and Hooper case was at one end of the spectrum but the institute's members wanted guidance on where the middle point was. It would like IRD to provide indicators of what was an acceptable and not acceptable salaries. At present there was no real hard and fast answers, he said. The institute would work with IRD to clarify its approach , he said. "I think there will be a lot of people reviewing current arrangements to get themselves comfortable that what they have in place will be acceptable going forward." Excerpt: Sole practitioners and businesses with family trusts should review their structures to ensure they do not fall foul of Inland Revenue after the landmark Penny and Hooper tax-avoidance ruling. ### Your will and your businesses internet marketing: Facebook, Twitter, LinkedIn & YouTube Everyone over the age of 18 years should have a will.  This will ensure that your assets will be bequeathed to those persons or entities whom you wish to benefit from your estate.  Dying without a will is known as dying intestate.  However have you considered what would happen to your online profile should you pass away.  At Quay Law we recommend that New Zealanders making a will should consider what will happen to the information stored about them on the internet.  Relatives may want to be able to access information stored within your various accounts be this emails, photos, facebook, linkedin, twitter, youtube, gmail, ymail or any of the many forums in cyberspace.  Login details and passwords are not always accessible and therefore unauthorized access to these mediums could be denied.  We recommend that your will should include your intentions with regards to your online profile in an up-to-date will. Consideration regarding an online profile should not only be considered for persons but businesses should consider actions to be taken in terms of their online profile as part of their succession planning document.  Cathy Mellett of Net Branding believes this will become critical as more businesses target the web to build their online profile. For more information regarding your will, please contact Auckland law firm Quay Law. Excerpt: Everyone over the age of 18 years should have a will. This will ensure that your assets will be bequeathed to those persons or entities whom you wish to benefit from your estate. ### New Zealand Gifting and Trust Law - Gift Duty changes as 3rd bill passed in Parliament Gift Duty Abolished Wednesday, 17 August 2011, 8:59 pm Article: ParliamentToday.co.nz Auckland law firm, Quay Law's trust lawyers have been monitoring the progress of this legislation change.  We are able to bring you this breaking news. Gift Duty Abolished - Third reading of bill passed in Parliament. The committee stage of the Taxation (Tax Administration and Remedial Matters) Bill was completed and the bill passed its third reading by 66 to 53 with National, ACT, Maori Party and United Future supporting. To review the impact of this legislative change, contact our lawyers at Quay Law.   P (09)-5232408 http://www.aucklandfamilytrust.co.nz/ Excerpt: Auckland law firm, Quay Law’s trust lawyers have been monitoring the progress of this legislation change. ### Property Law – a detailed property inspection report prior to your purchase can save you costly repairs in the future. An interesting story aired on TVNZ One news tonight regarding home buyers being stung by “hidden” defects in properties.  In particular the story focused on plumbing defects that have been in existence for a while and lurk beneath the surface and are largely undetected in your basic pre purchase property inspection report. That extra couple of hundred dollars spent in order to complete a detailed property inspection report can save you many thousands of dollars in the long term.  It is also advisable to ensure that your conveyancing lawyer reviews your sale and purchase agreement prior to you signing the contract. For more information contact a conveyancing lawyer at Auckland law firm, Quay Law NZ.   Excerpt: An interesting story aired on TVNZ One news tonight regarding home buyers being stung by “hidden” defects in properties. ### Quay Law includes Google+ The legal team at Auckland Law Firm, Quay Law is pleased to be able to include a share function (button) for Google + on our legal blog posts. Our regular legal hints and tips can now be shared to many of the Social Networking platforms available. Regards Ian Mellett (09) 5232408          Website  Excerpt: The legal team at Auckland Law Firm, Quay Law is pleased to be able to include a share function (button) for Google + on our legal blog posts. ### RWC 2011 visitors viewed as potential skilled migrants to NZ. Source: NZ dominion post. Article on RWC 2011 visitors viewed as potential skilled migrants to NZ. Rugby World Cup visitors will be spammed by the Government in an effort to entice skilled migrants to New Zealand's "exciting, vibrant and healthy" way of life. Passenger arrivals cards, which must be filled in by everyone arriving at any entrance port, have been amended to include the question: "Are you here for the Rugby World Cup?" Under a Labour Department proposal, visitors who answer "yes" – and whose occupations are on the list of skills shortages – will receive marketing material, including emails encouraging them to migrate. They will be urged to sign up to the Government's promotional website New Zealand Now, which extols our "unique lifestyle" and offers assistance and information about migration. A $67,000 advertising campaign aimed at skilled workers on holiday will see fliers placed in hotels, i-Sites and transport outlets, and Immigration New Zealand advertisements in Rugby World Cup 2011 publications, online and in social media. A Labour Department spokesman said possible privacy implications of using people's personal information were being discussed with the Office of the Privacy Commissioner. Acting head of immigration Craig Owen said the intention was to capitalise on visitors' initial impressions. "Having seen the country, they might be interested in returning with a view to obtaining residence under one of the skilled migrant or business categories. Marketing such as this is in the interests of economic growth via tourism, study and immigration – we want Rugby World Cup 2011 visitors to consider returning to live, work and/or play." Information given on arrival cards would be used "over the longer term" to market New Zealand opportunities, including targeting people with occupations for which New Zealand has significant shortages. "While the Labour Department has ongoing migrant attraction programmes, this one has been designed specifically to take advantage of an expected 85,000 World Cup visitors." Those who might expect to be targeted include engineers, surveyors, regional planners, early childhood and secondary school teachers, anaesthetists, audiologists, midwives, social workers, IT staff, chefs, mechanics, ship captains and film animators. Institution of Professional Engineers chief executive Andrew Cleland said there had been a shortage of engineers here for about a decade. After the Christchurch earthquake, structural engineers in particular were in hot demand. But he warned that overseas engineers would still need training in New Zealand industry codes. Information on arrivals cards is used by agencies including Customs, the Agriculture and Forestry Ministry, Immigration, Statistics NZ, police, and the health, justice, tourism and transport ministries. A breakdown of World Cup visitors shows an expected 29,000 from Australia, 19,500 from Britain and Ireland, 8800 from France, 6900 from the United States and Canada, 5200 from South Africa and a further 15,600 from elsewhere. - The Dominion Post - Michelle Duff Excerpt: Rugby World Cup visitors will be spammed by the Government in an effort to entice skilled migrants to New Zealand’s “exciting, vibrant and healthy” way of life. ### Conveyancing and Property Law: Your Deposit - What does this term really mean? When reviewing the Sale and Purchase agreement with potential property purchasers, the term “deposit” often creates some confusion. What does deposit really mean? Well, it can mean different things to various people involved with your property transaction. This legal hint focuses on clarifying any confusion that may exist whether you are a first home buyer or moving to your next family home. If the term deposit is used by the Real Estate Agent and referred to on the Sale and Purchase Agreement, this is the deposit or payment made by the purchaser of the property into the vendor's lawyer's or real estate agent's trust account. This payment may fall due upon the contract becoming unconditional or upon the contract being signed. Whilst the deposit amount is usually 10% this is completely negotiable. You should be aware that an Auction Agreement for the purchase of a property will have defined deposit terms included within the contract and this deposit is usually payable on the fall of the hammer. If the term deposit is used by the bank or your mortgage broker then this term usually has no relevance to the deposit payable under the Sale and Purchase Agreement. The term deposit used by your bank or broker refers to your contribution towards the property purchase i.e the difference between the property purchase price and the mortgage or loan amount. By way of example if your lender highlights that you require a 20 % deposit then this signifies that you will be required to have 20% equity in the property or to rephrase your lender is only prepared to give you a loan for 80% of the property purchase price. The remaining money will need to be provided by the legal entity which will own the property. KiwiSavers who meet certain criteria are able to utilise their individual and employer contributions to go towards the purchase of a property. This offer is commonly termed a deposit subsidy and is usually advanced to the conveyancing solicitor on the day of settlement. If you have any further questions regarding  conveyancing  and property law or your property deposit, please do not hesitate to contact one of our lawyers at Auckland law firm, Quay Law NZ. Phone: (09) 523 2408 Email: quaylaw@quaylaw.co.nz Address: Level 1, 427 Remuera Road, Remuera, Auckland. Excerpt: When reviewing the Sale and Purchase agreement with potential property purchasers, the term “deposit” often creates some confusion. ### Considerations prior to signing a Sale and Purchase Agreement on your next Property Transaction Often our property lawyers at Quay Law NZ receive calls regarding conditions to include within an Agreement for Sale and Purchase of a property. It is advisable to consult with your property lawyer prior to signing the agreement however it should be noted that on the fall of the hammer at a property auction the agreement becomes an unconditional legal agreement. Considerations to be taken into account prior to signing a property agreement are detailed below but please note that each property law transaction is unique and your own set of considerations may differ from those outlined below. 1. How do you intend to purchase the property. What legal entity is the most appropriate for your circumstances? 2. Your settlement date for either giving (sale) or taking (purchase) possession of the property. 3. When is your deposit payable? What is the amount of deposit you will be required to pay? Is it payable upon signing of the agreement or is payable upon the agreement becoming unconditional? For more information on your property transaction, please contact the property team at Quay Law NZ, an Auckland based law firm. Quay Law NZ Phone Number: (09) 523-2408 Excerpt: Often our property lawyers at Quay Law NZ receive calls regarding conditions to include within an Agreement for Sale and Purchase of a property. ### Conveyancing and weathertightness issues Once again weathertightness issues regarding a property purchase have been highlighted.  It is important to ensure yourSaleand Purchase Agreement includes the necessary conditions to enable your release from the property purchase should weathertightness issues be uncovered during the due diligence process.  It is vital that you undertake an independent building survey as part of this due diligence process prior to declaring the Agreement unconditional.  Ask your building surveyor / inspector to look particularly for signs of water damage or potential leaks. They should use a moisture meter.  These devices are generally non-invasive meters that can indicate moisture problems and water leaks without making holes in the walls.  However, not all defects can be found, so ask the person doing the inspection to highlight the areas they couldn’t check and identify risk areas that might warrant further investigation. It is once again opportune to highlight that if you are purchasing a property at an auction, you are deemed to have completed your due diligence prior to the auction and the purchase is unconditional on the fall of the hammer.  For more information regarding your conveyancing transaction please contact our property lawyers at Auckland law firm, Quay Law Barrister and Solicitor. Excerpt: Once again weathertightness issues regarding a property purchase have been highlighted. ### Trusts face clampdown in Labours Strategy Source: NZ Herald - Adam Bennett Trusts, Family Trusts and Trust Law. Labour would target hundreds of millions of dollars worth of income rich people shelter in trusts as a key part of its "tax switch" package unveiled this week. The party believes it can raise $300 million a year in additional tax with new anti-avoidance measures, a forecast greeted sceptically in a number of quarters, including the Beehive. Finance Minister Bill English said that figure was very optimistic. National had already pursued "the low-hanging fruit", he said, by giving the Inland Revenue Department money to enforce tax rules on property investment which were expected to return $800 million a year. With that done, "there isn't a whole lot of easy revenue gains left there", Mr English said. But Labour finance spokesman David Cunliffe said there were two ways to address tax avoidance. One was to police the existing boundary of the law more strictly and the second was to change the boundary of the law. "We're going to do both. The National Party is not doing the latter." Labour's anti-avoidance measures would include a serious push against the "trust law boundary", building on the Law Commission's recent review of trust law. Critics have argued Labour's plan to reintroduce a top tax rate of 39 per cent opens up a gap between that rate and the trust rate which would fuel a fresh wave of tax avoidance. Mr English said the sharp increase in the use of trusts early last decade coincided with former Labour Finance Minister Michael Cullen's introduction of a 39c top rate while the tax rate for trusts was kept at 33 per cent. But the potential to use trusts as tax shelters was curbed when the top personal and trust rates were aligned. Nevertheless, the Government's Tax Working Group estimated that income-sheltering using trusts cost the taxman about $300 million in 2007. Mr Cunliffe said Labour would look at trust law to ensure that "people who are currently legally able to hide income in trust structures will increasingly be unable to do so". However, the use of trusts would appeal only to those who were hit with Labour's top rate of 39c in the dollar. Labour estimates that would be only the top 2 per cent of taxpayers. Mr Cunliffe pointed to the $5.5 billion in outstanding tax, the $450 million worth of back tax that was caught up in only three cases at present before the courts and the recent $2.2 billion settlement between the Crown and the main banks. "In the light of those numbers alone, a $200 million to $300 million per annum recovery is hardly an exaggeration." Excerpt: Labour would target hundreds of millions of dollars worth of income rich people shelter in trusts as a key part of its “tax switch” package unveiled this week. ### Newspaper article: Accountants expect capital gains tax bonanza Source: Business Day Tax experts are licking their lips at a boom in possible work to help navigate clients from being the haves to the "have yachts". Labour's initial proposal for a capital gains tax came with a promise that a panel of experts would iron out any teething problems, but the accountancy industry wasted little time in pointing out what it believed to be obvious initial holes. From exemptions on business sales when close to retirement, plus antiques, stamp collections and yachts, the complexity of the initial proposal would result in a vast annual project to calculate the capital value of assets, experts warned. Grant Thornton Wellington chairman Peter Sherwin said the initial proposals were "back to the future" with the now simple income tax system and "pure" GST set to be replaced by complex schemes. "From a purely selfish point of view, this is very, very good news," he said. "They say it is going to be a game changer; well, it's certainly going to be a game changer for the accounting and legal industry in terms of where the opportunities to navigate through the exemptions." John Shewan, PricewaterhouseCoopers chairman, said aside from the exemptions, the issue of annual valuations of assets on "CGT day" also existed. "That is an enormous task and remember, valuation is an art, not a science." Shewan, who joked that the plan could triple PWC's staff numbers, said because the proposed 15 per cent CGT rate was much lower than company tax, a huge body of work would occur to differentiate capital gains from other types of profits. "I'm simply not persuaded by the suggestions in this package that it's a simple tax. It's far from simple." Deloitte's Patrick McCalman said aside from accountants seeking loopholes, considerable uncertainty existed about how a new tax would alter consumer behaviour. While Labour knew what it was giving away through cuts to GST and income tax, no-one knew how CGT would affect human behaviour, and therefore how much revenue it would gain. "CGT is new to New Zealand, so we don't know what kind of behaviours it is going to drive, and if the CGT doesn't deliver what's being spent elsewhere, the big question is, how do you balance the books?" Economists, meanwhile, stuck up for the plan. Westpac chief economist Dominick Stephens predicted a CGT would cause lower house prices, especially at the lower end of the market, and higher rents, which would inevitably lead to higher rates of home ownership. He played down the significance of the additional work for professional advisers. "What is the difference between paying an accountant to avoid CGT and paying a real estate agent to buy an investment property? "They're both just activities designed to avoid tax." Excerpt: Tax experts are licking their lips at a boom in possible work to help navigate clients from being the haves to the “have yachts”. ### Quay Law Conveyancing Article - The process to purchasing a house. Now on Youtube. Recent upload onto Youtube regarding Conveyancing / Property Law - The Process to Purchasing a House in New Zealand. This article was written by Ian Mellett of Auckland law firm, Quay law NZ. Please click on link to view YouTube video: LINK For full article please visit our Quay Law Website: LINK Excerpt: Recent upload onto Youtube regarding Conveyancing / Property Law – The Process to Purchasing a House in New Zealand. ### NZ Companies Office on Facebook. Do a companies search on Facebook. Online Marketing for the New Zealand Companies office.   On the 30th May 2011 the Companies Office launched a new way to search the Companies Office register via Facebook. The New Zealand Companies Office is the first in the world to offer this service via Facebook – now you have a legitimate reason to be on Facebook while at work! Link to the Companies Office on FACEBOOK. Using the search the register option through Facebook you can find details of companies – both New Zealand companies and companies on the overseas register. To view instant results on screen just begin entering your search criteria into the ‘Search’ field on the Companies Office Facebook page. For a company search this might be the company’s name (either the current name or a previous name) or the company’s incorporation number. Excerpt: On the 30th May 2011 the Companies Office launched a new way to search the Companies Office register via Facebook. ### Property Law - What information am I required to provide a prospective purchaser of my unit? What information am I required to provide a prospective purchaser of my unit? * Information source: The New Zealand Legislation Regulations (www.legislation.govt.nz) The Unit Titles Act 2010 came into force on 20 June 2011. What does this mean to me if I am selling my unit?  When the Unit Titles Act 2010 came into force, sellers of unit titles will be required to provide intending buyers with disclosure statements: these will provide potential buyers with information that can help inform their purchase decision. The Act provides for three types of disclosure: Pre-contract disclosure statement - which the seller provides before entering into an agreement for sale and purchase. The following information is prescribed for the purposes of section 146(2) of the Act (which requires a pre-contract disclosure statement to be in the prescribed form and to contain the prescribed information): (a)     the amount of the contribution levied by the body corporate under section 121 of the Act in respect of the unit being sold; and (b)     the period covered by such contribution; and (c)     details of maintenance that the body corporate proposes to carry out on the unit title development in the year following the date of the disclosure statement, and how the body corporate proposes to meet the cost of that maintenance; and (d)     the balance of every fund or bank account held or operated by the body corporate at the date of the last financial statement; and (e)     whether the unit or the common property is, or has been, the subject of a claim under the Weathertight Homes Resolution Services Act 2006 or any other civil proceedings relating to water penetration of the buildings in the unit title development; and (f)       an explanation of the following: (i)                   unit title property ownership; and (ii)                 unit plans; and (iii)                ownership and utility interests; and (iv)                body corporate operational rules; and (v)                  the information required to be contained in a pre-settlement disclosure statement; and (vi)                the information required to be contained in an additional disclosure statement; and (vii)               computer registers; and (viii)             the land information memorandum issued under section 44A of the Local Government Official Information and Meetings Act 1987; and (ix)                easements and covenants; and (g)     how to obtain further information about the matters referred to in paragraph (f); and (h)     an estimate of the cost of providing an additional disclosure statement. Pre-settlement disclosure statement - which the seller provides after entering the agreement for sale and purchase but before settlement of the sale. The following information is prescribed for the purposes of section 147(3)(a) of the Act (which requires a pre-settlement disclosure statement to contain the prescribed information): (a)     the unit number; and (b)     the body corporate number; and (c)     the amount of the contribution levied by the body corporate under section 121 of the Act in respect of the unit being sold; and (d)     the period covered by such contribution; and (e)     the manner of payment of the levy; and (f)       the date on or before which payment of the levy is due; and (g)     whether a levy, or part of a levy, due to the body corporate is unpaid and, if so, the amount of the unpaid levy; and (h)     whether legal proceedings have been instituted in relation to any unpaid levy; and (i)       whether any metered charges due to the body corporate are unpaid and, if so, the amount of unpaid metered charges; and (j)       whether any costs relating to repairs to building elements or infrastructure contained in the unit are unpaid and, if so, the amount of unpaid costs; and (k)     the rate at which interest is accruing on any money owing to the body corporate by the seller; and (l)       whether there are any proceedings pending against the body corporate in any court or tribunal; and (m)   whether there have been any changes to the body corporate operational rules since—                                                                i.      the additional disclosure statement, if one has been    provided; or                                                               ii.      (ii) the pre-contract disclosure statement. Additional disclosure - which the seller provides on request of the buyer. Regulations will prescribe the information that must be provided in each disclosure statement. These regulations are currently being developed. The following information is prescribed for the purposes of section 148(4) of the Act (which requires an additional disclosure statement to contain the prescribed information): (a)     the contact details for the body corporate and body corporate committee (if any); and (b)     the balance of every fund or bank account held or operated by the body corporate at the date of the last financial statement; and (c)     amounts due under invoices to be paid by the body corporate at the date the additional disclosure statement is requested; and (d)     details of regular expenses that are incurred at least once a year; and (e)     amounts owed to the body corporate at the date the additional disclosure statement is requested; and (f)       the following details of every current insurance policy held by the body corporate:                                                                i.      the name of the insurer; and                                                               ii.      the type of policy; and                                                             iii.      the amount of the current premium; and                                                              iv.      (the amount of any excess payable under the policy; and (g)     the following details of every current contract entered into by the body corporate:                                                                i.      the names of the parties; and                                                               ii.      the goods or services to be provided under the contract; and                                                             iii.      the price at which the goods or services are to be provided; and                                                              iv.      the term of the contract; and (h)     information about every lease to which the base land is subject; and (i)       the text of motions voted on at the last general meeting and whether each motion was passed or not; and (j)       whether the body corporate's operational rules are different from the prescribed body corporate operational rules, and if so, what the differences are; and (k)     a summary of the long-term maintenance plan, including—                                                                i.      details of maintenance to be carried out; and                                                               ii.      details of maintenance carried out in the last year; and                                                             iii.      whether there is a long-term maintenance fund; and                                                              iv.      if there is a long-term maintenance fund,— the amount determined by the body corporate that has been, or will be, levied during the term of the long-term maintenance plan to maintain the fund; and whether the current balance of the fund is projected to be sufficient to meet the body corporate's obligations under the plan. For more information please contact our property lawyers at Quay Law Barrister and Solicitors or Phone (09 524-2408). Excerpt: What does this mean to me if I am selling my unit? When the Unit Titles Act 2010 came into force, sellers of unit titles will be required to provide intending buyers with disclosure statements ### Family trust funds under siege By Nick Smith  Jun 17, 2011 - Source NZ Herald  Are family trusts still a safe haven for assets and income? asks Nick Smith. The family trust is under siege as never before. Creditors, lawyers, government agencies and, yes, other family members are storming the trust castle walls in the courts, and pressing the government to make changes. A raft of amendments relating to legal aid, welfare payments, GST, rest home entitlements, personal and company tax law have already come into force or are pending - all to make it easier to bust open trusts and potentially threaten their integrity as a bastion of New Zealand personal wealth. As embattled businessmen Mark Hotchin and Rod Petricevic recently discovered, even having enough wealth to buy the best legal advice sometimes cannot protect a family trust from concerted assault by creditors and government agencies - what's known in legal circles as trust-busting. The affray has been so intense it has even spawned a new term: "trust-bashing" - an alleged phobia that asserts trusts are primarily formed to avoid tax, maximise government entitlements and improperly frustrate creditors, including family members. One person's phobia, a cynic might note, is another's reality. This year the Law Commission will release its fourth and final paper on trust law. Following submissions and consultation, it will issue recommendations. On the agenda is a complete overhaul of the Trustee Act, condemned by many lawyers and judges as the most poorly written and unintelligible statute on the books. A rewrite of the Act, if recommended and adopted, would include provisions to allow courts to bust open trusts, in certain circumstances, to achieve fairness in dividing up relationship property. Under even more tightly controlled conditions, it would also provide access for creditors, including government agencies such as Inland Revenue. The man in charge of the Commission's inquiry into trust law, George Tanner, QC, says "we're just asking the question: should there be an over-riding trust-busting kind of statutory provision that allows the courts to go stomping in wherever they like? "If there are legitimate reasons for setting up a trust, they can stay," Tanner reassures. "We're not trying to do away with trusts." The commission's role, he says, is to provide a slow-moving but substantive examination of trust law. But the commission is considering radical changes that would dramatically affect family trusts, including the establishment of an ombudsman to arbitrate disputes and, potentially, the power to impose resolution of a conflict. Even more controversial would be the establishment of a register for trading trusts - those family entities that file returns with Inland Revenue. That would trigger a classic conflict over the right to privacy and the rights of the commercial sector. The purpose of a register, Tanner explains, is so investors fully understand the nature of the company with which they are doing business. Too often, adds family law specialist Stuart Cummings, businesses or investors enter into arrangements unaware that all of the assets backing the venture are actually held in a family trust, which is not on a public register. When things turn pear-shaped, there's nothing there for creditors, including business partners. "You get your legal advice and your lawyers tell you you're screwed and you should have got a personal guarantee," says Cummings. A personal guarantee can result in bankruptcy, which at least sheets home personal responsibility. A register of trading family trusts would be the business equivalent of caveat emptor. Kiwis have always treated the family trust as a fortress, a place to protect intergenerational assets against the vagaries of future events - not least, regrettable decisions such as choosing Mr Wrong. People want to provide for their children but are often on their second and third marriages, so it is vital, asserts Cummings, that pre-relationship assets be ring-fenced from spousal claims. Yet he readily concedes that family trusts are often misused to frustrate valid claims by spouses and other creditors. "Why do you think Hotchin and all those guys are still sitting living in luxury? It's because they've got trusts," says Cummings. But he argues that the authorities risk ruining the economic omelette in their efforts to crush a few bad eggs. "For heaven's sake, don't lose sight of the fact that trusts operate in many spheres other than relationship property," he argues. "Don't screw around with trusts just because you're trying to achieve the unachievable - justice and fairness between the parties under the concept of relationship property. "Trusts can be used and are often used to achieve ends that would not sit comfortably with the IRD or people's concept of being an active and equal member of the community," Cummings comments. "But the flip side is, if you can't provide protection for people then they won't take risks. "That is where trusts have such an important role to play - you ring-fence assets and put them out of your control and then take a risk, which is such a dynamic part of capitalism." The business community is genuinely concerned that changes to trust law will stifle entrepreneurial risk-taking, he says. But then, it is also the efforts of business cheerleaders such as Cummings that have brought these matters to a head. Family Court lawyers have led the charge in finding inventive and often contradictory ways to achieve or deny a fair and equitable settlement for their clients. Business disputes involving trust assets are generally dispassionate affairs; Family Court matters generate flames and smoke - and it is the real, and sometimes imagined, iniquity of those proceedings that is providing the heat to drive efforts to reform trust law. Graham Tubb, Inland Revenue group tax counsel, acknowledges the impact of family law on the general law of trusts. "The relationship property one has been taking the headlines for the last couple of years," he says. "The courts are being relatively proactive in the family area." But Tubb has bigger fish to fry: "The problem we're having is not just trusts but companies [owned by trusts] claiming large input credit refunds," he says. "Trusts are clearly operating to frustrate creditors, such as IRD and the issues there have got worse," he continues. "Without wanting to pick on any particular sector, there have been a number of well-publicised cases around property developers and non-payment of GST." The Crown pays out millions of dollars upfront and then, Tubb explains, when the building is sold "there's not enough money to pay the GST. Sometimes the market's moved or, in some cases, some near-fraudulent structures have been put in place - and that's where the trusts come in." The interesting element of Tubb's story is the powerlessness of an agency feared throughout the land to remedy what, at first blush, seems outright tax avoidance. "We're seeing things like a trust formed to build a building, getting a big GST refund at the beginning, eventually selling the building but the trust liability falls on the company appointed as trustee and it hasn't got any assets - and before you know it, a new trustee is appointed and there's another $100 shelf company." As a result, the government has reached for the blunt instrument and, this year, upfront GST refunds will no longer be paid, no matter how valid. This is solely due to the abuse of trust law. Beggar the entrepreneurs. "Why is it that New Zealanders have this predilection for trusts?" asks the Law Commission's Tanner. "Why is it that everyone must have a trust - is it that they don't trust government? Is it that they think the government will get at their assets and, by putting them in a trust, they're putting them out of reach? "I don't know," Tanner answers his own question forlornly. Whatever the reason, New Zealanders have embraced trust culture in record numbers. About 140,000 trading trusts filed returns in 2001; 237,500 did so in 2008, an increase of nearly 60 per cent. Tax lawyers will point to the Labour Government's raising of the top tax rate in 2000 as reason for the increase; Family Court lawyers finger flawed relationship property law. Others cite welfare incentives, such as Working for Families and aged-care entitlements. Inland Revenue's Tubb: "That's a massive driver - relationship property stuff and other social welfare issues. There was a tendency to put homes in trusts in order to not pay their retirement levies." Everyone mentions the latter. As soon as gran or granddad gets a bit doddery, a trust is formed to put family assets out of reach of a government keen to reclaim both retirement home and palliative care costs. The government has now granted itself powers to "see through" trust arrangements to recover some of this money. "They look back about five years," notes Tubb, "but all that means is if you do your planning far enough in advance you are more likely to not have to confront the issue." KPMG partner Paul Dunne says the government has moved quickly to close most of the trust loopholes, including "people distancing themselves from asset and income to qualify for Working for Families and the like". The government achieves this by assuming that trust income not allocated to a beneficiary is the income of the settlor of the trust in terms of benefit entitlement, Dunne says. The settlor is the person who created the trust. "There are detailed rules to determine who the settlor is," he says, adding that if there is more than one settlor, the money is divvied up between them and even income of a trust-owned company is assumed to be the settlor's. "The idea," adds IRD's Tubb, "is to try and limit the ability to accumulate income in a trust so that's it's not earned for tax purposes by the settlor. It's possibly a blunt instrument but the rules are pretty new." So new, in fact, that Tubb says it is too early to determine what impact the change will have on welfare entitlements. The tax advantages to a trust have largely evaporated, Dunne says, since the government aligned the tax rates. Yet Kiwi enthusiasm for trusts remains undimmed. "InNew Zealand, there's one trust for every 18 people," says law commissioner Tanner, an estimate based on IRD data and a best guesstimate for non-trading trusts. "InAustralia, it's one for every 34 people. InCanadait's one for every 148 and in theUnited Kingdomit's one for every 294." His estimate, widely accepted, suggests there are more than 200,000 non-trading family trusts. How many of those involved, Tanner asks, know what their duties are? Not many, is his educated guess. The Trustee Act needs to be brought into line with the Companies Act, Tanner suggests, including explicit provisions spelling out trustee duties. One duty is to inform beneficiaries, but "I don't think many trustees tell beneficiaries anything - a lot of them don't know they're beneficiaries at all. "It was done with directors' duties in 1993 when the new Companies Act was passed - that sets it out in about a page and a half," he says. "We're looking at that." One issue, Cummings argues, is the unwillingness of beneficiaries to sue trustees for dereliction of duty. A statutory requirement of fiduciary duty would assist in bringing errant trustees to heel. Another upcoming change to trust law is the abolition of gift duty. Trustees can now gift beneficiaries up to $27,000 a year; anything more than that amount attracts the duty. "There was about $1 million gift duty paid and it cost about $60 million to administer," notes KPMG's Dunne, who welcomes the abolition. But lawyer Cummings warns that the move will create a gross inequity by removing one of the primary vehicles for achieving a fair and equitable division of relationship property. When people place a house in a family trust a debt is created, says Cummings. This debt can only be gifted off at $27,000 a year. When a spouse or partner sues for their share of the property, he continues, often the only valuable asset is the debt, half of which belongs to the plaintiff. "The debt's a good thing; it means it's outside the trust," Cummings says. Family Court judges will often order a trust's debts to be called up, allowing a division of assets. But with the abolition of gift duty, the debt can be immediately gifted away, leaving nothing for the litigant to claim, he says. At present only trust income can be accessed to address compensation claims. Cummings argues that if the government abolishes gift duty, then it must amend the law to allow the courts to order a division of trust capital to achieve a fair and equitable settlement. "The inequalities created by trusts - accessing capital is the only available solution," he contends. "Parliament, in passing the Property Relationship Act, stopped short of enabling the courts to go that far," comments law commissioner Tanner. "Parliament says that the object of the legislation is not to enable trusts that have been properly set up to be undone." It's not just disgruntled spouses crying foul; many creditors, particularly IRD, believe trust law is weighted too heavily in favour of avoiding responsibility. Tubb says the law is clear that the transfer of property into trusts to defeat creditors can be reversed "but it can be a difficult set of rules to apply. From a creditor's point of view, trusts are pretty complex and relatively unregulated." Cummings is adamant that the integrity of genuine trusts must be maintained: "Relationship property law should and does reflect the reality and the right to own separate property. A trust containing separate property should always be inviolable." Plenty of Options to Tighten Control Suggested changes to trust law include: * Rewriting the Trustee Act to explicitly allow courts to bust open trusts under certain circumstances. * Compelling trading trusts that file returns with IRD to publicly register, possibly including revealing their assets. A register would allow companies and investors full knowledge before entering a business relationship with a trust-owned entity. * Amending the Relationship Property Act to allow the Family Court to pay out family trust capital, not just income, in the event of a divorce or dissolution. * Raising the bar for trust governance by amending the Act to explicitly set out trustees' fiduciary duties. This would make it easier for beneficiaries to sue trustees, and for regulators to prosecute for breaches. * Creation of a family trust ombudsman to arbitrate disputes, possibly including the ability to impose resolution on parties. Trusts - the basics A family trust is perhaps the most versatile vehicle for protecting commercial and private assets from creditors, the government, family members and other interests. A trust can be many things to many people - everyone from corporates, to property developers, to small businesses and families have established trusts. A trust is created by a settlor, traditionally the person with the assets. Today the settlor is often an accountant or lawyer. A settlor can also be a trustee, and can appoint trustees. Settlors and trustees can also be beneficiaries. The trustees are empowered to deal with the assets of the trust in any manner they feel is in the best interests of the beneficiaries. The trust deed will almost always grant them an indemnity from any consequence of their actions, except those arising from deliberate dishonesty. Excerpt: The family trust is under siege as never before. Creditors, lawyers, government agencies and, yes, other family members ### Property Law / Conveyancing: Purchasing a property at an auction When purchasing a property at an auction in New Zealand, be aware that on the fall of the hammer you accept the property "as is". It is incumbent upon you to do your due diligence investigation prior to the auction and to ensure you are satisfied with all aspects of the property, including the title. For more information on property law or conveyancing please visit our website www.propertylawnz.co.nz or visit our Quay Law website www.quaylaw.co.nz. To contact of our lawyers to discuss further please call (09) 5232408. Excerpt: When purchasing a property at an auction in New Zealand, be aware that on the fall of the hammer you accept the property “as is”. ### A Property Report for Remuera & Parnell – May 2011 Issue The Rob Report, a local property report provided to Conveyancing Lawyers Quay Law by Robert Ashton of Bayleys (Remuera). Click on LINK  for the Auckland property report. Dear Valued Rob Report Subscriber,  Please find attached a copy of The Rob Report for Remuera & Parnell – May 2011 Issue.  Over recent weeks we have had a surge in the number of residential sales with many achieving sale prices upwards of $2M.  At Bayley’s recent Gala Auction we had 15 properties up for sale and 13 have been SOLD, so with a professionally prepared & conducted marketing program, those wanting to sell their homes have a very high chance of achieving a sale within a relatively short time frame.  Currently we are experiencing high demand from buyers for properties but unfortunately, the coming winter months may be lean due to the very low rate of new properties coming onto the market.  It certainly feels like we are entering a ‘Sellers’ market so if you are thinking of selling, now might be a great time.  If you are interested, please note that I regularly post the following articles/reports on my blog: http://aucklandrealestateagent.co.nz  BNZ Business Confidence Survey BNZ Real Estate Overview Changes to the Unit Titles Act Bayleys - Properties For Sale – Eastern Suburbs of Auckland Bayleys - New Listings – Weekly Update Bayleys Auctions – Order of Sale & Recent Results The Rob Report – Epsom & The Eastern Suburbs  If you would like to receive any of the above directly via email – please advise.  Note: If you no longer want to receive copies of The Rob Report via email – please advise.  Have a great month.  Regards Robert Ashton AREINZ BE (Structural) Residential Sales Specialist Excerpt: The Rob Report, a local property report provided to Conveyancing Lawyers Quay Law by Robert Ashton of Bayleys (Remuera). ### Christchurch hit by two major earthquakes this afternoon The shattered city of Christchurch has been rocked again by two damaging earthquakes this afternoon, measuring magnitude 6 and 5.5. On behalf of Quay Law we extend our thought and wishes to the people of Christchurch. Excerpt: The shattered city of Christchurch has been rocked again by two damaging earthquakes this afternoon, measuring magnitude 6 and 5.5. ### Legal Published Article by Ian Mellett of Quay Law - Process of Buying a Home Buying or selling a home is one of the biggest financial commitments you will ever make. There are several relatively complicated stages to negotiate and there are a number of things to look out for. The law article by Ian Mellett covers the following preparing an offer The Sale and Purchase Agreement Can I cancel the agreement? Satisfying Conditions as set out in the Sale and Purchase Agreement Post Confirmation and preparation for Property Transfer Loan and Mortgage Documentation Insurance Cover Pre Settlement Property inspection Possession / Settlement  Click on Link for full article or for additional information please feel free to contact Auckland lawyer Ian Mellett on (09) 5232408. Our property focused website - http://www.propertylawnz.co.nz/ Excerpt: Buying or selling a home is one of the biggest financial commitments you will ever make. ### Homeowners renting their homes during the World Cup It is billed as the biggest sporting event to be held in New Zealand with potential accommodation pressures being felt across the country.  Based on the number of accommodation options emerging such as private homes offered for rent or home stays being offered to rugby supporters,  the team at Quay Law is of the opinion that any home owner should be aware of the potential tax implications imposed on any earnings or rental income derived. Excerpt: It is billed as the biggest sporting event to be held in New Zealand with potential accommodation pressures being felt across the country. ### Increase to LINZ fees impact on cost of property conveyancing 27 April 2011 LINZ has reviewed the fees and charges for its survey and title systems. New fees come into effect on 1 July 2011. This may affect survey and title fees charged by conveyancers, surveyors and other land professionals. The costs of operating New Zealand's survey and title systems are designed to be fully recovered from those who use the systems. Fees were last set on 1 July 2010. However an ongoing decline in survey and title transaction volumes over the past year, due to low activity in the property market, has resulted in a significant under-recovery of costs. This in turn has required LINZ to review its fees and charges to ensure costs are fully recovered in 2011/12. LINZ will continue to monitor transaction volumes and trends, and focus on cost-efficiencies, and set its fees accordingly. Source: Land Information New Zealand Excerpt: LINZ has reviewed the fees and charges for its survey and title systems. New fees come into effect on 1 July 2011. ### Outrage over visa extensions for Rugby World Cup Source: TVNZ - One News EXCLUSIVE: A policy change means New Zealanders wanting to get a job during the Rugby World Cup will now face more competition from migrant workers. ONE News has found that Immigration New Zealand has been encouraging migrants to take jobs created from the tournament. Usually when someone applies to work in New Zealand, and their job offer does not specify an end date, they are given a 12 month visa. But immigration officials have been told to make sure visas for low skilled jobs in hospitality and accommodation last until three weeks after the Rugby World Cup ends in October. Since September last year, unskilled, English speaking workers have been given no-questions asked extended visas. Immigration New Zealand will also stop doing what it calls 'labour market checks' in the coming months if there is still a perceived labour shortage. That means it will stop checking whether there is anyone in New Zealand qualified to do the jobs foreigners are applying to do. Service and Food Workers Union Industry Leader Len Richards is outraged by the move, saying there is no need for overseas labour. "There's over a quarter of our young people who don't have work, specifically Pacific Island, Maori, young people," Richards said. "You would think that's the sort of people, the young New Zealanders, who should be the face of the Rugby World Cup." Immigration New Zealand refused to talk to ONE News on camera, but released a statement saying the visa extensions were to make sure employers would not be disadvantaged by staff having to leave work before the Cup. But the department admitted the workforce could have coped with the demand, as the number of tourists will still be less than during the peak summer season. Alpha Recruitment manager Colin Mathieson says in some hospitality and accommodation roles, he receives between 100 and 200 applicants. But he says overseas workers are often an employers' first choice. "Generally when they come here they are well prepared they tend to be more go-getter because they've gone through more to get here and they're in demand," he said. Cantabrian Gloria Sharplin, whose job for the event fell through because of the quake, says she is upset by the move. "I look around and see all my friends finding it really hard to get jobs," Sharplin told ONE News. "If we're not going to be given those jobs then how is that building our nation?" Immigration New Zealand also wanted to extend visas for working holidays, but decided against it as it would require a change to government policy. Instead the government department will be marketing working holiday schemes to English-speaking migrants, encouraging them to coincide their holiday with the event. The Reserve Bank has projected the event will pump $700 million into the economy. Excerpt: EXCLUSIVE: A policy change means New Zealanders wanting to get a job during the Rugby World Cup will now face more competition from migrant workers. ### Businesses join Cup roadshow Source: Business Day -WILLIAM MACE When the Reserve Bank announced earlier this year that the New Zealand economy would benefit by $700 million across the six-week period of the Rugby World Cup tournament, the prediction was treated with derision by economists and sports commentators alike. In the same speech Reserve Bank governor Alan Bollard said his "expert team of forecasters" had also predicted an All Blacks victory over Australia in the World Cup final by 23.9 points to 15.6. Whether the bank's economic boffins believe in sporting superstition or not, it would've been remiss for Dr Bollard not to give his mahogany lectern a knuckle tap as he proposed the outcome, irrespective of the sincerity behind his prediction. Most would agree that there's about as much chance of guessing how Cup holders South Africa will perform as there is producing an accurate figure of economic benefit to New Zealand from the event. What is certain is that it will take a significant effort from New Zealand companies to absorb any benefit, given the range of pessimistic predictions and the intellectual property protections afforded to global corporate sponsors which make leveraging the tournament a legal nightmare for small to medium-sized business owners. With just 110 days until kick-off the question is whether it's time to stop preoccupying ourselves with guessing games on the numbers and instead seize the opportunity by jumping on the world cup hosting bandwagon. If the answer's yes then thankfully there's already a bandwagon rolling: "The Real NZ Showcase" is a programme of nationwide events to entertain and educate RWC visitors while simultaneously encouraging business connections. The schedule was launched this month by the Economic Development Ministry's "NZ2011" office, around the same time as fresh questions were being raised about the costs-versus-benefits case for the Cup. The festival comprises more than 150 events organised by 16 industry sectors including our traditional areas of strength – marine, food and beverage, wine, aviation, agribusiness, film, science and fashion. It's essentially a platform designed to help Kiwis play host to the 85,000 rugby-loving tourists expected to set down here before, during and after the Cup, but with a wider potential business pay-off lurking beneath that smile and handshake. According to the festival's prospectus Auckland's Queen's Wharf "Cloud" structure will play a central role in providing the silver lining – a 6000-person capacity tent acting as both a "party central" for local fans and a Kiwi trade show hub for foreigners. But Auckland is already in line for more than its share of cup payback. It's in the regions where business people are being urged to "give 'em a taste of Kiwi". DEBORAH JACK, manager for the agribusiness sector's nationwide showcase, has been finalising details of several exclusive small-scale tours through New Zealand's world-leading agricultural enterprises for visitors during the World Cup period. She has just signed up Country Calendar producer of 35 years Frank Torley to host a tour of Manawatu's rural gems – the Feilding saleyards, ANZCO's Rangitikei meat processing facility, various AgResearch sites, as well as Massey University's research farms and Riddet Institute of food technology. And of course the obligatory cocktail party. The tour is set down for two days between Palmerston North's hosting of two Pool B RWC games: Georgia v Romania on September 28 and Georgia v Argentina on October 2. It's also worth noting that particular week will see English rugby fans travelling between Dunedin and Auckland, and French fans between Auckland and Wellington with the Manawatu ideally placed to "intercept" a few interested punters. But only if they're genuinely interested in doing business, says Ms Jack. "Our mantra has been that we're better off having a small targeted specific group who are seriously interested in business than a busload of people who're just rubber-necking and just think it would be a cool thing to do." Ms Jack is running tours in four other rural regions as well as a more traditional industry expo in Hamilton. "It is really difficult because it's a `chicken and egg' situation in the sense that we're creating these events but to be honest we don't have a huge idea right now about who's coming. "If for some reason we don't get any interest at all, two or three weeks out we'll cancel it because I'm not interested in companies standing on show. There's no point in them being there if there's no one there to see them." But Ms Jack says she will be "gobsmacked" if that happens. She's confident in the promotional work that NZ2011 and Rugby NZ 2011 have been doing on behalf of all the Real festival's participants, and says the estimate of 85,000 visitors is conservative given that it doesn't account for teams, media, VIPs and corporate hosting tickets purchased within New Zealand. She already has interest from a 40-strong group of "high net worth, big decision makers" from the French agricultural sector who are coming as much for business as they are for rugby. NZBIO development manager Peter Bradley is also expecting billions of dollars worth of pharmaceutical buying power to attend his Clinical Trial Showcase on September 21 – sandwiched between two marquee pool games at Eden Park. Five of the top 10 global pharmaceutical companies – several based in Britain and France – have expressed interest in the showcase which will put them in the same room as New Zealand's top clinical talent. "It's all about the clinicians – they're the innovators and they're the people the companies want to talk to. The event will be quite small but very high level. The guys that are in the room will literally control billions of dollars worth of research money." OTHER sectors are taking a large scale approach and, in Aviation Industry Cluster general manager Shaun Mitchell's case, a significant "leap of faith" based on the perceived peripheral benefits of the Cup. The Cluster – a membership group of 50 aviation-centric businesses and aircraft design and manufacture companies which sprouted from the Waikato three years ago – is holding an aviation air-show and business showcase called `Flair 2011' just north of Hamilton over three days from October 13 to 15. The World Cup semi-finals take place just an hour and a half up the road in Auckland on October 15 and 16. "It's a bit of a leap of faith," says Mr Mitchell, admitting that he's not sure exactly yet what it will cost to stage the event but it was too good an opportunity to pass up. "An event like this is something we've always wanted to do but realistically we thought the industry might be two or three years away from being able to support it. "With the support from NZ2011 and New Zealand Trade & Enterprise around the Rugby World Cup it's giving us the ability to go in a few years earlier and try and put our stamp on it." Unlike Ms Jack's agribusiness tours, Flair will rely heavily on patronage from local communities and on Kiwi businesses parting with their cash to participate. Mr Mitchell has attracted the Martin Jetpack's developers to the show as a Kiwi drawcard with an international reputation, while he's promoted the event at Australia's Avalon airshow, and will soon do the same at the USA's world-renowned AirVenture Oshkosh show. He says Flair 2011 is as much about publicising aviation's estimated $9.7bn revenue contribution to New Zealand's economy as trying to expand the estimated $3.8bn annually earned from export activities. But there's no doubt wine will be a huge priority for foreign visitors come spring, and with no less than eight single day and multi-day wine festivals around the country from September 25 until October 23 their thirsts should be well catered for. New Zealand Fashion Week has been brought forward this year to avoid a clash with the cup, but on top of her busy schedule founder Pieter Stewart has been recruited to help organise a travelling fashion and textiles showcase. A plan to get designers selling directly to deep-pocketed tourists from suites in hot-spot hotels will help designers who may not have outlets in a particular area, while catering for female cup visitors who perhaps aren't as hell bent on rugby as their male counterparts. And the list goes on: Fifteen food festivals, nine thoroughbred race meetings, a waste minimisation conference in Rotorua, Auckland International Boat Show, the Canterbury Software Summit and the Real NZ Music Tour will all be relying on a captive market in some way or another despite their differing business models. NZ2011'S director Leon Grice believes the impetus for the "New Zealand Inc" approach to hosting the Rugby World Cup kicked into gear in January. The latest MYOB Business Monitor report shows only 23 per cent of businesses expect the economy to recover in the next 12 months, and just 5 per cent expect to see it do so in the next six months. "So if we could see one thing in this election year that would give businesses a welcome shot in the arm, it's not the Rugby World Cup," says general manager Julian Smith. But Mr Grice says participation does not necessarily cost a lot. "We've really focused on a particular message for sectors, whether they're exporters or not, that here are some programmes to participate in which don't cost a lot of money," he says. "We're saying don't overinvest because this isn't necessarily the thing that will turn your business around, but don't miss out." He advocates at least joining the Business Club, so that businesses, small or big, have a way of connecting with visitors who are actively seeking Kiwi experiences en route to business engagement. Already 2500 Kiwi businesses have registered with 10 additional hosted events also logged on the site, and overseas registrations amounted to 1900 people, Mr Grice says. Last year's Fifa Football World Cup in South Africa had pushed visitor numbers up from eight million to nine million a year on the back of an improved perception of the country as safe, friendly and welcoming, he says. "That's had an enormous impact for South Africa in positioning them to be the place to go for sub-Saharan economic development and it's enormous in terms of attracting European tourists." Here, Mr Grice believes the cup will spark a richer engagement where the world sees New Zealand as "more than sauvignon blanc and roast lamb". Though there is nothing wrong with either of those products, he hastens to add. "But it's also home to Lanzatech, for example." How do you measure that engagement? "I think at the end of the day a consensus forms on whether you've achieved that or not." While that consensus is unlikely to be as black and white as the result after 80 minutes of rugby, the real Kiwi reaction to the tournament is likely to hinge equally on regaining the silverware as it does on retaining the economic spoils. - BusinessDay Excerpt: When the Reserve Bank announced earlier this year that the New Zealand economy would benefit by $700 million across the six-week period of the Rugby World Cup tournament ### Businesses join Cup roadshow Source: Business Day -WILLIAM MACE When the Reserve Bank announced earlier this year that the New Zealand economy would benefit by $700 million across the six-week period of the Rugby World Cup tournament, the prediction was treated with derision by economists and sports commentators alike. In the same speech Reserve Bank governor Alan Bollard said his "expert team of forecasters" had also predicted an All Blacks victory over Australia in the World Cup final by 23.9 points to 15.6. Whether the bank's economic boffins believe in sporting superstition or not, it would've been remiss for Dr Bollard not to give his mahogany lectern a knuckle tap as he proposed the outcome, irrespective of the sincerity behind his prediction. Most would agree that there's about as much chance of guessing how Cup holders South Africa will perform as there is producing an accurate figure of economic benefit to New Zealand from the event. What is certain is that it will take a significant effort from New Zealand companies to absorb any benefit, given the range of pessimistic predictions and the intellectual property protections afforded to global corporate sponsors which make leveraging the tournament a legal nightmare for small to medium-sized business owners. With just 110 days until kick-off the question is whether it's time to stop preoccupying ourselves with guessing games on the numbers and instead seize the opportunity by jumping on the world cup hosting bandwagon. If the answer's yes then thankfully there's already a bandwagon rolling: "The Real NZ Showcase" is a programme of nationwide events to entertain and educate RWC visitors while simultaneously encouraging business connections. The schedule was launched this month by the Economic Development Ministry's "NZ2011" office, around the same time as fresh questions were being raised about the costs-versus-benefits case for the Cup. The festival comprises more than 150 events organised by 16 industry sectors including our traditional areas of strength – marine, food and beverage, wine, aviation, agribusiness, film, science and fashion. It's essentially a platform designed to help Kiwis play host to the 85,000 rugby-loving tourists expected to set down here before, during and after the Cup, but with a wider potential business pay-off lurking beneath that smile and handshake. According to the festival's prospectus Auckland's Queen's Wharf "Cloud" structure will play a central role in providing the silver lining – a 6000-person capacity tent acting as both a "party central" for local fans and a Kiwi trade show hub for foreigners. But Auckland is already in line for more than its share of cup payback. It's in the regions where business people are being urged to "give 'em a taste of Kiwi". DEBORAH JACK, manager for the agribusiness sector's nationwide showcase, has been finalising details of several exclusive small-scale tours through New Zealand's world-leading agricultural enterprises for visitors during the World Cup period. She has just signed up Country Calendar producer of 35 years Frank Torley to host a tour of Manawatu's rural gems – the Feilding saleyards, ANZCO's Rangitikei meat processing facility, various AgResearch sites, as well as Massey University's research farms and Riddet Institute of food technology. And of course the obligatory cocktail party. The tour is set down for two days between Palmerston North's hosting of two Pool B RWC games: Georgia v Romania on September 28 and Georgia v Argentina on October 2. It's also worth noting that particular week will see English rugby fans travelling between Dunedin and Auckland, and French fans between Auckland and Wellington with the Manawatu ideally placed to "intercept" a few interested punters. But only if they're genuinely interested in doing business, says Ms Jack. "Our mantra has been that we're better off having a small targeted specific group who are seriously interested in business than a busload of people who're just rubber-necking and just think it would be a cool thing to do." Ms Jack is running tours in four other rural regions as well as a more traditional industry expo in Hamilton. "It is really difficult because it's a `chicken and egg' situation in the sense that we're creating these events but to be honest we don't have a huge idea right now about who's coming. "If for some reason we don't get any interest at all, two or three weeks out we'll cancel it because I'm not interested in companies standing on show. There's no point in them being there if there's no one there to see them." But Ms Jack says she will be "gobsmacked" if that happens. She's confident in the promotional work that NZ2011 and Rugby NZ 2011 have been doing on behalf of all the Real festival's participants, and says the estimate of 85,000 visitors is conservative given that it doesn't account for teams, media, VIPs and corporate hosting tickets purchased within New Zealand. She already has interest from a 40-strong group of "high net worth, big decision makers" from the French agricultural sector who are coming as much for business as they are for rugby. NZBIO development manager Peter Bradley is also expecting billions of dollars worth of pharmaceutical buying power to attend his Clinical Trial Showcase on September 21 – sandwiched between two marquee pool games at Eden Park. Five of the top 10 global pharmaceutical companies – several based in Britain and France – have expressed interest in the showcase which will put them in the same room as New Zealand's top clinical talent. "It's all about the clinicians – they're the innovators and they're the people the companies want to talk to. The event will be quite small but very high level. The guys that are in the room will literally control billions of dollars worth of research money." OTHER sectors are taking a large scale approach and, in Aviation Industry Cluster general manager Shaun Mitchell's case, a significant "leap of faith" based on the perceived peripheral benefits of the Cup. The Cluster – a membership group of 50 aviation-centric businesses and aircraft design and manufacture companies which sprouted from the Waikato three years ago – is holding an aviation air-show and business showcase called `Flair 2011' just north of Hamilton over three days from October 13 to 15. The World Cup semi-finals take place just an hour and a half up the road in Auckland on October 15 and 16. "It's a bit of a leap of faith," says Mr Mitchell, admitting that he's not sure exactly yet what it will cost to stage the event but it was too good an opportunity to pass up. "An event like this is something we've always wanted to do but realistically we thought the industry might be two or three years away from being able to support it. "With the support from NZ2011 and New Zealand Trade & Enterprise around the Rugby World Cup it's giving us the ability to go in a few years earlier and try and put our stamp on it." Unlike Ms Jack's agribusiness tours, Flair will rely heavily on patronage from local communities and on Kiwi businesses parting with their cash to participate. Mr Mitchell has attracted the Martin Jetpack's developers to the show as a Kiwi drawcard with an international reputation, while he's promoted the event at Australia's Avalon airshow, and will soon do the same at the USA's world-renowned AirVenture Oshkosh show. He says Flair 2011 is as much about publicising aviation's estimated $9.7bn revenue contribution to New Zealand's economy as trying to expand the estimated $3.8bn annually earned from export activities. But there's no doubt wine will be a huge priority for foreign visitors come spring, and with no less than eight single day and multi-day wine festivals around the country from September 25 until October 23 their thirsts should be well catered for. New Zealand Fashion Week has been brought forward this year to avoid a clash with the cup, but on top of her busy schedule founder Pieter Stewart has been recruited to help organise a travelling fashion and textiles showcase. A plan to get designers selling directly to deep-pocketed tourists from suites in hot-spot hotels will help designers who may not have outlets in a particular area, while catering for female cup visitors who perhaps aren't as hell bent on rugby as their male counterparts. And the list goes on: Fifteen food festivals, nine thoroughbred race meetings, a waste minimisation conference in Rotorua, Auckland International Boat Show, the Canterbury Software Summit and the Real NZ Music Tour will all be relying on a captive market in some way or another despite their differing business models. NZ2011'S director Leon Grice believes the impetus for the "New Zealand Inc" approach to hosting the Rugby World Cup kicked into gear in January. The latest MYOB Business Monitor report shows only 23 per cent of businesses expect the economy to recover in the next 12 months, and just 5 per cent expect to see it do so in the next six months. "So if we could see one thing in this election year that would give businesses a welcome shot in the arm, it's not the Rugby World Cup," says general manager Julian Smith. But Mr Grice says participation does not necessarily cost a lot. "We've really focused on a particular message for sectors, whether they're exporters or not, that here are some programmes to participate in which don't cost a lot of money," he says. "We're saying don't overinvest because this isn't necessarily the thing that will turn your business around, but don't miss out." He advocates at least joining the Business Club, so that businesses, small or big, have a way of connecting with visitors who are actively seeking Kiwi experiences en route to business engagement. Already 2500 Kiwi businesses have registered with 10 additional hosted events also logged on the site, and overseas registrations amounted to 1900 people, Mr Grice says. Last year's Fifa Football World Cup in South Africa had pushed visitor numbers up from eight million to nine million a year on the back of an improved perception of the country as safe, friendly and welcoming, he says. "That's had an enormous impact for South Africa in positioning them to be the place to go for sub-Saharan economic development and it's enormous in terms of attracting European tourists." Here, Mr Grice believes the cup will spark a richer engagement where the world sees New Zealand as "more than sauvignon blanc and roast lamb". Though there is nothing wrong with either of those products, he hastens to add. "But it's also home to Lanzatech, for example." How do you measure that engagement? "I think at the end of the day a consensus forms on whether you've achieved that or not." While that consensus is unlikely to be as black and white as the result after 80 minutes of rugby, the real Kiwi reaction to the tournament is likely to hinge equally on regaining the silverware as it does on retaining the economic spoils. - BusinessDay Excerpt: When the Reserve Bank announced earlier this year that the New Zealand economy would benefit by $700 million across the six-week period of the Rugby World Cup tournament ### Real Estate Agents - Current Property Market and its Intricacies (Herald Homes) The residential property sector last year had many experts scratching their heads as the market failed to reignite in its usual cyclical fashion. Even Auckland’s best agents had to work extremely hard at their networks to achieve the usual amount of business.   Heraldhomes talks to some of the Auckland property market’s top-selling and most experienced agents to see what continues to drive them and how they read the current market and its intricacies. Click on  the following link (Property Market) for full article. By Gill South Excerpt: The residential property sector last year had many experts scratching their heads as the market failed to reignite in its usual cyclical fashion. ### Gift duty 'switched from rich to poor' Source: Rob Stock - Sunday Star Times – 8 May 2011 The abolition of gift duty, which could prove a gift for the rich, will come just months after a backdoor form of gift duty was introduced for the poor, an anti-poverty action group says. The Child Poverty Action Group (CPAG) said last week that the changes are entrenching inequality. On April 1, the government changed the definition of "family scheme income" – income used to determine whether a family qualifies for Working for Families (WFF) credits – but CPAG says it includes a provision that is in effect a new gift duty for those at the bottom of the income ladder. CPAG spokeswoman Susan St John, a respected academic at theUniversityofAuckland, says the new definition includes regular gifts of money from other family members, such as when a family member pays the electricity or the grocery bill on a regular basis. While gift duty is abolished for the rich, saidSt John, regular transfers which total over $5000 in a year, or $96 a week, to struggling low income families are penalised. Transfers totalling $5001 means $1000 loss of Working for Families tax credits, saidSt John. "These low income working families are not the ones hiding money in PIEs and trusts. The government ought to be encouraging grandparents who can afford it to help their children. In the recession, without such help many more working families will resort to loan sharks and foodbanks," she said. CPAG said the changes, which aim to protect the Working for Families tax credit scheme from well-off cheats hiding assets in trusts, will hit the poor. CPAG says the rules are unfair. For example, daycare payments by a working grandparent are captured by family scheme income, but not the value of work by a grandparent looking after children for free. CPAG's Julie Timms pointed to a debate published in last week's paper, asking why we should tolerate the hiding of incomes in the present system of trusts: "While those who have been encouraged to hide income in trusts and PIEs, are now having to declare this for some forms of social assistance, other families who do not have the means to set up trusts are being punished for simply trying to help their own." IRD said the changes mean a more comprehensive measure of family income is used when determining WFF tax credits and recognise that families may be receiving help from sources other than taxable income. “The amendments improve the fairness and integrity of WFF by, for example, countering arrangements that have the effect of artificially inflating entitlements and filling in gaps in the earlier definition of family income," IRD said Excerpt: The abolition of gift duty, which could prove a gift for the rich, will come just months after a backdoor form of gift duty was introduced for the poor, an anti-poverty action group says. ### Conveyancing – The Process to Buying a Home. Buying or selling a home is one of the biggest financial commitments you will ever make. There are several relatively complicated stages to negotiate and there are a number of things to look out for.  This process is often referred to as property conveyancing. Steps to Buying a Home in NZ In New Zealand there are several ways to sell and buy a home, including: auction, tender, advertised/ fixed price or by negotiation. Regardless of the method used, you should always have a written sale and purchase agreement. Preparing an offer Before you submit an offer there are a number of key details that need to be determined: The name(s) of the vendor(s) and purchaser(s). The address of the property. The type of title (freehold, leasehold etc). The chattels that are to be sold with the property (e.g. whiteware, drapes, television aerial). The price. The rate of interest that the purchaser must pay on any overdue payments. The deposit that the purchaser must pay. The date on which the agreement will become unconditional if there are conditions. e.g. title approval, finance, LIM report, builder's report, valuation, sale of existing home. The settlement date (the date the buyer pays the remainder of the amount for the property, usually the day when the purchaser / buyer can move into the property). Any conditions the purchaser wants fulfilled before the contract is agreed. Condition of property. The Sale and Purchase Agreement Have your lawyer review the sale and purchase agreement prior to executing (signing) same, as this will afford you the opportunity to make any suggested amendments.  It is extremely important to remember that once you have signed the agreement, a legally binding contract comes into force with the ensuing legal obligations. As currently drafted, there are some key differences between the REINZ and ADLS sale and purchase forms of which you need to be aware. Your lawyer can explain the differences to you and may advise you to use one of these forms in preference to the other. The Contract Once your offer is submitted to the vendor, it will either be accepted, rejected or you will embark on negotiations with the vendor. It is usual for those negotiations to be handled by the real estate agent with any amendments to the contract being approved by your property lawyer. Every time the contract form (Agreement forSaleand Purchase) is amended and submitted to the other party it is, in law, the rejection of the previous offer and the making of a counter-offer. When the document is accepted without amendment and signed then the contract is formed. It is important to note that the real estate agent works for and is paid by the vendor. The agent must therefore carry out the vendor’s instructions (as set out in the agency agreement) and act in the interests of the vendor. Agents also have clear responsibilities to purchasers even though they are representing the seller. Once the contract has been signed and dated, the Real Estate Agent sends signed copies to the solicitors for the vendor and purchaser. The purchaser's solicitor will immediately obtain a search of the title and any relevant documents recorded against the title. Copies will then be provided to the purchaser. The general conditions of the standard contract contain provisions allowing a purchaser to object if there are problems with the title. Can I cancel the agreement if I change my mind? Once a contract has been formed, you cannot cancel a sale and purchase agreement just because you have had second thoughts about buying or selling the property concerned. In general, once you have signed a sale and purchase agreement and the conditions set out in it have been met, you will have to go ahead with the sale/purchase of the property. Satisfying Conditions as set out in the Sale and Purchase Agreement At the same time as the title is searched, the purchaser is normally required to take steps to fulfill any other conditions of the contract. For example, if the contract is subject to finance or a valuation report, then steps should be taken to satisfy these conditions. The purchaser should also at this time check with the Council to ensure that all Council requirements have been satisfied and in particular that any additions or alterations have obtained the requisite consents. Many purchasers obtain a LIM (Land Information Memorandum) report from the Council. The LIM sets out information the Council has on the property. Councils make a charge for providing LIMs. A condition of the contact may be a pre-purchase inspection report. This report should identify any items in the property that require attention. It is unlikely that a home will come though a property inspection with a clean report as maintenance on an existing home is always required.  However, a property report allows you to make an informed decision prior to proceeding with the purchase of the property We recommend you use a certified inspector for your potential pre purchase inspection report. Confirmation Once the purchaser is satisfied that the conditions can be fulfilled, then the purchaser's solicitor confirms to the vendor's solicitor that the contract is unconditional.  Alternatively, should a condition not be satisfied then the purchaser’s solicitor should notify the vendor’s solicitor that the contract is at an end. Post Confirmation and preparation for Property Transfer Once the contract has been confirmed we commence updating the Land Information New Zealand website (Landonline) for managing the transfer ofNew Zealandland titles with the details of your transaction. Relevant documents are completed on behalf of parties through the completion of signed Authority and Instruction forms (A&Is) which enables both the vendor’s and the purchaser's solicitors to make the necessary changes to the title of the property being purchased. The vendor's lawyer prepares a settlement statement (showing debits and credits) which adjusts the rates and any other outgoings and incomings on the property as at the proposed settlement/possession date. In addition, attend to the execution of the A&I’s  - which transfers ownership to you check that the rates and other costs are paid and up to date check that you have arranged insurance for your new home from settlement date carry out a 'guaranteed search of title' from the Land Information Office. This protects you from anyone else having a claim over your property. make arrangements with you and the bank for advancing of your loan and payment of the remaining share of the purchase price (excluding your deposit). Loan and Mortgage Documentation The mortgage is a legal document that gives your lender security for the money that you owe them. If the purchaser is borrowing money from a financial institution, then following confirmation and before settlement all loan and mortgage documents need to be completed by the purchaser. Mortgage instructions are sent by the lending institution to the purchaser's solicitor for preparation of the security documents and execution. The details of the mortgage are added to Landonline by the solicitor. Once the documentation has been completed, the purchaser's solicitor completes a certificate requesting the financial institution to draw down the loan on the settlement/possession date. Insurance Cover The purchaser needs to arrange insurance cover for the property from the possession / settlement date. Pre Settlement Property Inspection During the normal course of events prospective property purchasers visit a house they intend to purchase and if the property is to their liking, enter into an Agreement forSaleand Purchase.  This agreement should preferably be reviewed by their solicitor prior to being signed. Once the specified conditions of purchase have been met, the contract becomes an unconditional agreement (a binding contract).   At an agreed date in the future, settlement / possession shall occur. It is important to understand that a purchaser / buyer is entitled to carry out a pre-settlement inspection in order to avoid any unpleasant surprises. Examples could be a window broken, light fittings missing, a burn mark on the carpet, etc.  Obviously this damage must have occurred after the date on which the agreement was signed. The pre-settlement inspection is normally arranged by the real estate agent, and must be carried out no later than the day before settlement is scheduled to occur.  During this inspection the property purchaser should ensure that the property is in the same condition as it was on the day that the contract was signed.  If any damage has occurred since the signing of the Agreement forSaleand Purchase, the purchaser can request that the problem be remedied or alternatively could ask for compensation. Depending on the situation the purchaser’s solicitor could negotiate with the vendor’s solicitor to retain an amount in their trust account pending the satisfactory correction of the identified damage. Possession / Settlement The possession date, usually the same as the settlement date, is the day that you will take possession of the house. It is also known as the settlement date because it is the day you pay for the house and this process of transferring money is known as settlement. On the possession/settlement date, the purchaser's solicitor receives the loan advance from your lender and any cash contribution from the purchaser and pays over the full settlement figure by way of a bank cheque. This must be completed before 4pm on the day of settlement. The purchaser is entitled to vacant possession (and handing over of the keys) of the property as soon as moneys have been paid over but not before. In exchange for the settlement moneys, title passes to the purchaser by means of the release of the Landonline documents from the vendor's solicitor to the purchaser's solicitor. The title is updated immediately with the discharge of the existing mortgage, the transfer of title to the purchaser and the new mortgage registered. A copy of the updated title is provided to the purchaser as part of the purchaser's solicitor's settlement report. Following settlement, the vendor's solicitor notifies the relevant Council and Quotable Value which record the names of the new owners of the property. General Whilst there is a process to follow when it comes to property conveyancing transactions, there is skill and experience required to avoid potential problems.  You need to have confidence in those parties representing you to ensure an excellent result. This article has been written as a guideline in order to highlight the process involved with purchasing a home. Should you need any assistance in relation to your property purchase or NZ Property Law, please contact Auckland Property Lawyer, Ian Mellett at Quay Law Barrister and Solicitor. Contact Details Phone: +64 9 5232408 Web: http://www.conveyancingauckland.co.nz/ Web: http://www.propertylawnz.co.nz/ Web: www.twitter.com/quaylaw UNAUTHORISED USE. The contents of this article may be subject to copyright, legally privileged and confidential. Any unauthorised use, distribution or copying of the contents is expressly prohibited. Excerpt: Buying or selling a home is one of the biggest financial commitments you will ever make. ### NZ Herald. Economist tips good things for Auckland NZ 5:30 am The Auckland economy is heading into a sweet spot as the region benefits from low interest rates and a low exchange rate with the Australian dollar, says a leading economist. The recession hit Auckland earlier and harder than New Zealand as a whole, but it was already out-performing the rest of the country in terms of economic activity through the last three quarters of 2010, said Goldman Sachs economist Philip Borkin. Auckland is especially sensitive to financial conditions, which are at their most stimulatory since July 2009. Mr Borkin said the city's economy should be growing by between 3 and 3.5 per cent by the end of the year. Growth over the entire year could average around 2.5 per cent, compared with the 1.5 he expects for the country as a whole, which is more optimistic than the consensus 1.1 per cent. By contrast, he said, Canterbury had been hit by the February earthquake, Wellington faced fiscal belt-tightening and, while rural regions might start to benefit from record-high commodity prices, farmers still appeared focused on debt reduction. The out-performance is most notable in the housing market, with annual house price growth running at 1.8 per cent in Auckland but falling by 1.8 per cent nationwide. Mr Borkin estimated that demand for housing in Auckland was growing by around 9000 homes a year while new supply, as reflected in dwelling consents issued, was just 3600. He said that while net immigration was falling, there might be some internal migration from Christchurch. "However, we are not expecting Auckland house prices to suddenly race away. Affordability remains an issue. But it is quite possible house prices could be rising by around 5 per cent a year by the end of the year." That would make people feel more comfortable about their financial situations and boost consumer spending, Mr Borkin said. When combined with a boost from the Rugby World Cup, he estimated that would underpin growth in retail sales in Auckland of 2.1 per cent over 2011 in real terms, compared with just 1 per cent nationally. But he cautioned that if demographics were driving Auckland house price out-performance, then rental inflation would also be likely to rise. "Higher rents, all else being equal, leave less cash for discretionary spending." Another risk to this relatively sunny outlook is that the Reserve Bank might raise the official cash rate sooner than the March quarter, which Mr Borkin expects, as do a majority of market economists. Yet another risk is that households remain cautious. "It has been our long-held belief that once house prices showed firmer signs of stabilisation, consumers would feel a little more comfortable boosting spending levels," he said. "However, there is the possibility that there has been a permanent altering in household behaviour, and caution and balance-sheet repair prevail for a little longer yet." A two-paced economy, even if only for a short period, makes the Reserve Bank's job more difficult. The official cash rate is a one-size-fits-all type of instrument. Mr Borkin said the bank would have to set monetary policy on a national basis, suggesting it would be the new year before it raised rates. ... but watch out for higher interest rates New Zealand's economic recovery may accelerate in the second half of the year amid rebuilding after the Christchurch earthquake, increasing the chance of higher interest rates, according to AMP Capital Investors. "It may be a situation where you have a flat first half of the year and then the rebuilding-recovery story takes place in the second half," said senior economist Bob Cunneen. Mr Cunneen forecast the economy might expand about 1.5 per cent this year, faster than the 1.3 per cent Reserve Bank Governor Alan Bollard forecast last month. The central bank cut borrowing costs to a record 2.5 per cent on March 10 to bolster confidence after the February 22 earthquake. An economic rebound may prompt Dr Bollard to raise interest rates late this year which, along with rising commodity prices, may buoy demand for the currency, pushing it to between US80c and US85c. "You need the commodities story to stay intact, but you need monetary policy to start to tighten," Mr Cunneen said. For that to happen, "the governor has to take the view that economic activity is going to be accelerating and that's probably not likely until the end of this year". - Bloomberg Excerpt: 5:30 am The Auckland economy is heading into a sweet spot as the region benefits from low interest rates and a low exchange rate with the Australian dollar, says a leading economist. ### Happy Easter Ian and the legal team at Quay Law wish our clients, friends and family a Happy Easter. If you are heading away over the weekend, take care. Best Wishes Ian and the Quay Law team (Remuera Lawyers) Excerpt: Ian and the legal team at Quay Law wish our clients, friends and family a Happy Easter. If you are heading away over the weekend, take care. ### Property Law - Conditions in your Agreement for Sale and Purchase. Property Law - Conditions in your Agreement for Sale and Purchase. Legal Tip from Auckland law firm, Quay Law. A finance condition should not be viewed as an option for being released from an Agreement for Sale and Purchase. Recent court cases have highlighted this issue and purchasers have found vendors taking them to court for having cancelled an agreement based on non-satisfaction of  a finance condition where the vendor has subsequently found out that the purchaser has purchased another property for the same or even a greater amount. Purchasers should consider the inclusion of a due diligence clause within their agreement, as this would give them the option of legitimately declaring the Agreement to be “at an end”. It is always advisable to ask your Conveyancer / Property lawyer to review your Agreement for Sale and Purchase prior to it being signed by you. Excerpt: A finance condition should not be viewed as an option for being released from an Agreement for Sale and Purchase. ### Conveyancing Choosing a property lawyer? If you do not have a property lawyer, how do you find one? Word of mouth, perform an internet search for a property lawyer in your area, consult the  Law Society website  or visit your local Citizens Advice Bureau. Remember to choose a lawyer whom you feel comfortable with. A competent lawyer will assist you through this transaction and ensure you of a good outcome for your circumstances.  Your choice of lawyer to attend to your needs is an important decision. At Quay Law we are committed to finding a solution that tailors the legal process to your personal or commercial requirements. To talk to one of our legal specialists call us on (09) 5232408. Auckland Conveyancing | Property Law NZ  http://www.conveyancingauckland.co.nz Excerpt: Word of mouth, perform an internet search for a property lawyer in your area, consult the Law Society website or visit your local Citizens Advice Bureau. ### Remuera (South) homes listed and/or Sold By Local Real Estate Agent Steve Koerber This Remuera homes property report has been provided to Quay Law by local real estateagent, Steve Koerber of Barfoot & Thompson. It’s been a busy few months since my last Southern Slopes newsletter.  Buyers and sellers are out in force and March was Barfoot & Thompson’s busiest month for four years.  The big news in our area is the near-completion of the southern motorway sound barrier.  Those who live near it will agree their properties are even more desirable due to their new-found serenity.  The barrier is a great asset for our community!  Speaking of community – www.facebook.com/remueracommunity is where you’ll find the most Remuera people online.  Become a fan today and enter to win an iPad2.  On a personal note FY 2011 was another “best ever year in real estate” for me.  I finally broke into B&T’s top 10.  This year and beyond I plan to climb even higher in the rankings by working hard and helping even more Southern Slopes homeowners. Steve Koerber | Residential Sales | Barfoot & Thompson Remuera - Licensed under the REAA 2008 ddi. +64 9 524 1659 mob. 021 864 166 fax. 09 524 5584 Website.  http://www.stevekoerber.co.nz  Remuera's house sold name since 1998.  Top 1% sales 2011. Excerpt: This Remuera homes property report has been provided to Quay Law by local real estateagent, Steve Koerber of Barfoot & Thompson. ### Property Report - Auckland Eastern Suburbs (March 2011) This property report, as provided to the lawyers at Remuera law firm Quay Law.  Please find attached a copy of the March 2011 issue of The Rob Report for the Eastern Suburbs – Orakei, Mission Bay, Kohimarama, St Heliers, Glendowie, Meadowbank & St Johns Park. For those of you who like to monitor the relationship between Sale Price and Capital Value – the Average SP/CV Ratio = 1.05 and the Median SP/CV Ratio = 1.04  The Min SP/CV Ratio = 0.58 and the Max SP/CV Ratio = 1.54  The total volume of published sales for both January and February 2011 are very similar to the 2010 figures and the total volume for March 2011 (at date of publication 70 properties sold) is slightly down on the results for March 2010 (99 properties sold). This figure for March 2011 will most likely increase with the late publication of some sales. If there are any recent property sales which you are interested in, and which do not feature in this report, please do not hesitate to contact me so I can research the sale details for you.  Historically over the upcoming Easter and School Holiday break we expect the volume of new properties being advertised for sale to remain low and an increase is expected once the 2nd school term starts.  Bayleys have negotiated some great marketing deals for the start of the 2nd term so if you are considering selling your home within the near future, I would appreciate the opportunity to prepare a very competitive marketing proposal for you.  Regards  Robert Ashton AREINZ BE (Structural) Residential Sales Specialist  My Website: www.robertashton.bayleys.co.nz  My Facebook: www.facebook.com/realestatenz My Blog: www.aucklandrealestateagent.co.nz  TEL +64  9 520 8888 |  Mob  +64  21 633 398|  Fax  +64  9 520 8880 |  Email  robert.ashton@bayleys.co.nz Excerpt: This property report, as provided to the lawyers at Remuera law firm Quay Law. ### Property Law and Conveyancing website. A consolidation of legal articles and information compiled by our Quay Law legal team A new property law and conveyancing website for our clients.  This  website is a consolidation of all our helpful hints, articles and legal information created over many years.  The Quay Law NZ team hopes that you will find this new  property law website informative and user friendly.   We look forward to your feedback. To view Property Law in NZ  please click on the link www.propertylawnz.co.nz Excerpt: A new property law and conveyancing website for our clients. This website is a consolidation of all our helpful hints, articles and legal information created over many years. ### Auckland House Prices Source: NZherald.co.nz  Author: Rachel Grunwell  Date: 10th April 2011 The average house sale price in Auckland hit $580,000 this week and new housing statistics have identified increasing numbers of suburbs that are depressingly out of reach for first-time buyers. Barfoot and Thompson managing director Peter Thompson revealed that his company had achieved an all-time high average selling price of $581,190 in Auckland in March. “It was a month’s trading that came out of the blue and exceeded anything we have ever experienced.” There were 1070 properties sold, a massive 75 per cent up on February and 15 per cent up on March last year. Though the average was inflated by 14 sales at $2 million plus, Thompson said the average without them was still more than $560,000. He believed buyers had reached the conclusion that values were at the bottom of the price cycle, the economy was looking likely to rebound in the next year and interest rates were historically low. The merger of Auckland’s councils and a looming housing shortage for the city – 50,000 homes short of what it would need in 30 years – were other reasons for a rebound in housing confidence. Article continues below In the wake of the new figures, QV.co.nz research director Jonno Ingerson investigated how affordability for housing in Auckland has shifted in different suburbs over the past decade. One expert said it was big earners without children who were the most likely to be able to buy now. John Bolton, who runs his own mortgage advice business, Squirrel, said there was a surprisingly large group of 30-something, double-income earning professional couples with no kids who wanted to buy. They had generally not been able to afford to buy at the peak of the market, but were now armed with good deposits, were excited by low interest rates and earned a combined income of more than $100,000. He had had to remind some to think of the future – they would still have to pay the mortgage if they had children. He said most of this group initially wanted the same thing – to go into popular suburbs that used to be affordable a few years ago such as Sandringham, Onehunga, Ellerslie and One Tree Hill. But they soon changed their minds when they saw what their money could buy. “You could barely get a deceased estate with a kitchen from the 60s in Sandringham now for half a million,” he said. When customers realised they could only afford a “shitbox in Sandringham” or a “carpark in Grey Lynn” they looked to the “fringes”. Bolton said good buying could be had for the early $400,000 mark in Te Atatu Peninsula, Glen Eden and Birkdale. BARGAINS FOR THOSE ON THE PROPERTY LADDER This weekend Shannon Thorpe moved into his new home in the Auckland suburb of Three Kings – and he says he could only afford the central city pad because he got on the property ladder years ago. The 32-year-old, who works for DB Breweries, and his 29-year-old wife Frances, who’s in advertising, paid $542,000 for their three-bedroom 1940s state house set on 700sq m of land. They bought it pre-auction and managed to secure it for below the current average selling price for Auckland homes – $581,190. Shannon said they had a sizeable mortgage, but were able to buy the house because he had been on the property ladder since 2003 when he bought his first house in Tauranga. When it doubled in price during the boom, he was able to afford a home in Ellerslie about three years ago. He said it helped that he and his wife did not have kids and both earned good professional salaries to be able to service the mortgage. He said he did not know how a first-home buyer would be able to afford a house in the central city. “It’s hard to have the quarter-acre dream.” The couple originally looked in Ellerslie and Onehunga for their new home, but found those areas too trendy and pricey. HIGH INCOME MAKES A FIVE PER CENT DEPOSIT ENOUGH Couples with a high combined income need only a 5 per cent deposit to get into a home selling for $581,000, the current average in Auckland. I called six of the major banks this week in the guise of a first-home buyer, to see what combined income and deposit was required for me and an imaginary partner to get a $581,000 house in Auckland. I said we had no kids, a joint income of $150,000, student loans of $20,000 and credit card debt of $5,000. Several banks wanted only a 5 per cent deposit, and others said there was flexibility. ASB said it “should not be a problem” to get a $551,000 loan if we had a $30,000 deposit. The National Bank said their standard policy was for a 20 per cent deposit – about $116,200. They could take a 10 per cent deposit if the loan were to be repaid over a shorter term. An interest rate of 6.99 per cent, paid over 30 years, would mean a monthly payment of just over $3000. The BNZ would take a 5 per cent minimum deposit, which would be $29,050, but a deposit of less than 15 per cent would incur a low-equity lending premium of 0.5 per cent extra interest. The lending specialist also mentioned a $400 establishment fee. ANZ’s lending specialist wanted “at least 20 per cent” – $116,000 – but there was “room for movement”. He said my borrowing power could potentially be “quite high”. Westpac lent “up to 95 per cent of the home’s value”, but ideally wanted a 10 per cent deposit – $58,100. Kiwibank wanted an absolute minimum deposit of 5 per cent, but less than 20 per cent would require mortgage repayment insurance. A loan of $552,000 would require a joint income of $90,000 before tax and a clear credit history. Article extracted from Rob Ashton's Real Estate Auckland Blog.  See link for blog. Excerpt: The average house sale price in Auckland hit $580,000 this week and new housing statistics have identified increasing numbers of suburbs that are depressingly out of reach for first-time buyers. ### Great Auckland Disaster Survival Guide as Created and Distributed by Sheryl Orchard (Bayleys Real Estate / Residential Sales)  Great Auckland Disaster Survival Guide as Created and Distributed by Sheryl Orchard (Bayleys Real Estate / Residential Sales) To receive your copy of this guide please contact Sheryl on mobile 021 797 166, via email sheryl.orchard@bayleys.co.nz  or visit her blog. Useful tips include: Keep a torch and sturdy pair of shoes close to your bed. Reduce potential hazards by conducting regular maintenance on your home. Do a first aid course Back up photos and important documents and store off site. Get to know your neighbours and find out who may need extra help. Keep fuel tank topped up. Ensure smoke alarms are fitted and working. Practice your evacuation plans DON'T USE CANDLES OR A NAKED FLAME IN CASE OF LEAKING GAS. Thank you Sheryl for providing this guide to our Quay Law clients. We still have a few copies available so feel free to pop up to our offices at 427 Remuera Road and collect one. Excerpt: Great Auckland Disaster Survival Guide as Created and Distributed by Sheryl Orchard (Bayleys Real Estate / Residential Sales) ### Limited offer - Free Trust Healthcheck Do you have an existing family trust? Become a fan of Quay Law on Facebook and be eligible for a FREE 1/2 hour Trust checkup. For more information or to confirm a booking time, please contact Cathy on 09 - 523 2408. This offer is timely with pending gift duty and proposed Trust law changes. Limited offer - subject to availability. Excerpt: Become a fan of Quay Law on Facebook and be eligible for a FREE 1/2 hour Trust checkup. ### NZ trusts made simple What is a  trust ?  A trust is a form of transport, much like a container truck.  The driver and co-driver are the Trustees, who are charged with ensuring the safe transportation of the container contents, being the Trusts Assets, for the benefits of the recipient, being the Beneficiaries of the Trust.   Why should I use a trust?  It is  all about asset protection now and in the future, preservation of assets for the next generation and a safeguard against Government means testing. At the outset, it should be borne in mind that the reasons for implementing a trust structure are extremely important. Your family circumstances clearly play a pivotal role in this regard. Outlined below are a number of reasons why implementing a trust structure could possibly be of benefit to you and your family: 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). Protection from business creditors (separation of core family assets such as the family home from business risks). Protection of particular beneficiaries (example, children with special needs, educational trusts). Protection from matrimonial property claims and de facto claims. Protection against possible income tax consequences and future taxes. Protection against the likely consequences of inflation. Incidental benefits in relation to means testing and rest home subsidies. Could a trust benefit me and my family and when should I use a trust ?  As soon as you have any assets. Ask yourself, do I want to lose my assets to creditors or the Government?  If the answer is “No” to those questions, then speak to a Trust specialist regarding a  Trust.  Trusts are an invaluable asset protection tool and mechanism for preserving one’s wealth.  For more information and advice about setting up a family trust, trusts and asset planning please contact our Trust specialists at Quay Law NZ for more more information. Excerpt: A trust is a form of transport, much like a container truck. The driver and co-driver are the Trustees, who are charged with ensuring the safe transportation of the container contents ### New Zealand Trust Law under review by Ian Mellett of Quay Law, Auckland, NZ. Family Trust / Trusts Article by Quay Law NZ March 2011 Based on current records, New Zealand has one of the highest numbers of trusts per head of population in comparison to other countries.  It is estimated that there are at least 237,500 trusts in New Zealand but this figure could be as high as 400,000. The Law Commission has been asked to review the Trustee Act 1956 and trust law generally.  The Commission plans to tackle the review in 3 stages: Stage 1 will look at the Trustee Act 1956, the Perpetuities Act 1964 and trust law generally. The first paper was released in November 2010 and focused on the history of trusts.  The second paper was released in December 2010 and focused on the uses of family trusts in New Zealand.  This paper included the potential concerns surrounding the current use of trusts. Stage 2 will consider the Charitable Trusts Act 1957. Stage 3 will consider the trustee companies legislation. There is an intention to abolish gift duty with effect from 1 October 2011.  Whilst this legislation is yet to be passed, it seems that from this date gift duty will no longer be a relevant factor for people settling trusts.  The result of this proposed legislation will be an easier movement / transfer of assets into trusts. So where does this leave Trusts as we focus on 2011? The proposed abolition of gift duty together with major changes to the qualifying companies regime and the Law Commission’s re-examination of trust law means this will be a momentous year for those with trusts. Of current concern to the Law Commission is the transferring of assets into trusts to avoid obligations to, for example, creditors and / or spouses or partners under the Relationships (Property) Act 1976.  The Law Commission is considering whether: legislation should address the need to look through trusts in certain circumstances in order that trust property can be made available to a creditor, spouse or partner or for government asset testing. legislation should address sham trusts and the problem of trusts that are not really trusts. With specific reference to treating trusts as “look through” entities, the Law Commission is evaluating if it should allow trust assets to be made available to creditors, spouses and partners, and to be considered as a part of the assets of the settlor or a person with control over the trust for assessing eligibility for government assistance.  As an alternative, the law could continue to leave it to individual statutes to address how a disposition of property or income to a trust is to be treated in a context where such a disposition defeats a government policy. Because of the difficulties in creating look-through provisions that meet the needs of the various contexts to which they must be applied, the latter may be the preferred approach. As a result of the relevant legislation being reviewed, and regardless of the outcome of the proposed law changes, now is the time for New Zealanders to review their trusts. Relevant considerations during such a trust review might include: The intentions of the settlor in establishing the trust; The intentions of the trustees; Whether the trustees were indifferent as to whether a valid trust was intended to be established; How the affairs of the trust have been conducted; Whether property of the settlor has been intermingled with trust property; Whether the settlor has treated trust property as his or her own; The degree of control exercised by the settlor over the affairs of the trust; Whether the trustees have acted independently of the settlor in carrying out their duties; The real nature of the arrangement irrespective of how it is described; The implications of the repeal of gift duty, which may exacerbate some of the problems associated with trust use and may reduce the effectiveness of the existing legislative approaches to trusts. Whilst the review of trust law is in progress and the Law Commission invites comments, it is recommended that you consult a family trust specialist in order to discuss these proposed law changes and their impact on your existing or proposed trust. A focus for this discussion could be:- The role of the independent trustee. Ongoing trust administration and reporting. Separation of trust affairs from personal affairs. If you have any further questions regarding your current or proposed trusts, please do not hesitate to contact me.  My name is Ian Mellett and I am the principal of Auckland Law firm, Quay Law.  My contact details are (09) 5232408. Excerpt: Based on current records, New Zealand has one of the highest numbers of trusts per head of population in comparison to other countries. ### Earthquake prone building register in Auckland Source: NZ Herald Aucklanders will be able to find out soon which of the city's commercial buildings could collapse in a moderate earthquake. Two weeks after the Auckland Council refused to release the "earthquake-prone building register" of 412 unreinforced buildings in the old Auckland City Council's area, a mayoral spokesman yesterday said the first cut of an Auckland-wide report of earthquake-prone buildings should be completed by the end of next month. The report would include details of a method of coming up with a more detailed report by next year, the spokesman said. Council chief executive Doug McKay - with backing from Mayor Len Brown - would not release the register two weeks ago, saying it was out of date and could affect owners' property values. Mr Brown said the council was taking a "measured response" to the issue and asked officers to draw up a regionwide list of earthquake-prone buildings as quickly as possible. Many of the 412 buildings are in old town centres built over a hundred years ago, such as Dominion Rd, Kingsland, Sandringham Rd and Onehunga Mall. About 5 per cent of commercial buildings and 2 per cent of residential structures in the city centre are reinforced. The Building Act defines earthquake-prone buildings as those likely to collapse in a moderate quake, causing injury or death, or damage to any other property. Auckland Central MP Nikki Kaye, who wrote to Mr Brown on March 7 about the timeframe for releasing a list of earthquake-prone buildings, yesterday welcomed quick progress on the issue. "I think the important thing is to ensure that when the list is released, there is a clear policy from the Auckland Council to ensure the information is regularly updated and is readily available to the public in an accessible way. "The purpose of having this information in the public domain is so that we can make more informed choices about where we choose to work or spend time." By Bernard Orsman Excerpt: Aucklanders will be able to find out soon which of the city’s commercial buildings could collapse in a moderate earthquake. ### Visiting New Zealand for the Rugby World Cup 2011: Visa Requirements Source: Immigration New Zealand. If you are planning to visit New Zealand in 2011 for the Rugby World Cup you may need a visa. If you are from a country that is not on our visa-free list you will need to apply for a visitor visa before you come to New Zealand. If you are from a  visa-waiver country, you do not need a visa. On arrival in New Zealand you will need to have evidence of funds for the length of your visit, and an onward ticket. If you have ever been deported from any country or have criminal convictions you may be stopped from entering New Zealand.  Regardless of whether you require a visa or not, you will also need to meet the health requirements and character requirements, and be considered to be a genuine visitor, before you will be allowed entry to New Zealand.  If you are concerned about your eligibility to enter New Zealand because you do not meet the health or character requirements (such as criminal convictions or previously being deported from another country), please contact your nearest Immigration New Zealand Branch or discuss with an Immigraiton specialist or lawyer.   You are able to check the INZ website , as requirements are subject to review and may change. Excerpt: If you are planning to visit New Zealand in 2011 for the Rugby World Cup you may need a visa. ### Great feedback for Quay Law posted on a local Facebook Page   Some Great Feedback for Quay law from the Remuera Community on Facebook. "Quay Law are great supporters of the local Remuera Community. Support Quay Law - a friendly and expert team of legal professionals based right here in Remuera (how convenient!)." Excerpt: Quay Law are great supporters of the local Remuera Community ### Earthquakes Our thoughts go out to the various parts of the world as they cope with these catastrophic earthquakes. We are aware of a few families in New Zealand who are unable to get in touch with their loved ones. Take care and our prayers are with you. From The team at Quay Law NZ Excerpt: Our thoughts go out to the various parts of the world as they cope with these catastrophic earthquakes. ### Auckland property report provided to our Conveyancing lawyers by Rob Ashton of Bayleys Remuera. The following Auckland property report has been provided to our Conveyancing lawyers by Rob Ashton of Bayleys Remuera.  This property report covers the Easter Suburbs including  Orakei, Mission Bay, Kohimarama, St Heliers, Glendowie, Meadowbank and St Johns. LINK: The Rob Ashton Property Report - Auckland Eastern Suburbs - January 2011 In the attached report Rob Ashton has  included a profile on an amazing Italian Inspired home in Orakei Road and also brief profiles on two superb properties which offer great development potential – 98 Arney Road, Remuera & 1 Huriaro Place, Orakei. Excerpt: The following Auckland property report has been provided to our Conveyancing lawyers by Rob Ashton of Bayleys Remuera. ### Remuera and Parnell (Property Information) as provided to our Property Lawyers at Quay Law Please find attached a copy of The Rob Report for Remuera & Parnell – January 2011 Issue.  The Rob Report - Remuera & Parnell Auckland, New Zealand Property Statistics and Information - January 2011  .  This report is provided to Property Law Firm, Quay Law by Rob Ashton of Bayleys (Remuera). For a no obligation discussion on how much your home might be worth, and how much downsizing might impact your short and long term financial position, please do not hesitate to contact Rob Ashton direct on 021 633 398. Rob Ashton providing you with a detailed report on Auckland Real Estate. Excerpt: This report is provided to Property Law Firm, Quay Law by Rob Ashton of Bayleys (Remuera). ### Property Law – What is a Pre-Settlement Property Inspection? Property Law – Pre-Settlement Inspection. During the normal course of events prospective property purchaser's visit a house they intend to purchase and if the property is to their liking, enter into an Agreement for Sale and Purchase.  This agreement should preferably be reviewed by their solicitor prior to being signed. Once the specified conditions of purchase have been met, the contract becomes an unconditional agreement (a binding contract).   At an agreed date in the future, settlement / possession shall occur. It is important to understand that a buyer is entitled to carry out a pre-settlement inspection in order to avoid any unpleasant surprises. Examples could be a window broken, light fittings missing, a burn mark on the carpet, etc.  Obviously this damage must have occurred after the date on which the agreement was signed. The pre-settlement inspection is normally arranged by the real estate agent, and must be carried out no later than the day before settlement is scheduled to occur.  During this inspection the property purchaser should ensure that the property is in the same condition as it was on the day that the contract was signed.  If any damage has occurred since the signing of the Agreement for Sale and Purchase, the purchaser can request that the problem be remedied or alternatively could ask for compensation. Depending on the situation the purchaser’s solicitor could negotiate with the vendor’s solicitor to retain and amount in their trust account pending the satisfactory correction of the identified damage. For more information on property law, your conveyancing transaction or proposed agreement for sale and purchase of property please contact a property lawyer at Auckland law firm Quay Law. Excerpt: During the normal course of events prospective property purchaser’s visit a house they intend to purchase and if the property is to their liking, enter into an Agreement for Sale and Purchase. ### Christchurch Earthquake - 22 February 2010 Our thoughts go out to  the people of Christchurch (New Zealand) as we watch breaking news of another earthquake that has occurred in your city today. Another traumatic and frightening experience. Take Care! From the legal team at Quay Law Barrister and Solicitor (Auckland, New Zealand) Excerpt: Our thoughts go out to the people of Christchurch (New Zealand) as we watch breaking news of another earthquake that has occurred in your city today. ### The "new facebook" - A fix to ensure all friends see your posts! The "New Facebook" has a newsfeed setting that by default is automatically set to show ONLY posts from people who you've recently interacted with or interacted the most with (which would be limited to the couple of weeks just before people started switching to the new profile). So in other words, for both business and personal pages, unless your friends/fans commented on one of your posts within those few weeks or vice versa - you are now invisible to them and they are invisible to you!!  Here's the Fix Scroll down to the bottom of the newsfeed on the homepage and click on "Edit Options", click on "Show Posts From" and change the setting to "All Of Your Friends and Pages". Excerpt: The “New Facebook” has a newsfeed setting that by default is automatically set to show ONLY posts from people who you’ve recently interacted with or interacted the most with (which would be limited to the couple of weeks just before people started switching to the new profile). ### Property Report for Remuera and Parnell (December 2010) Thank you to Bayleys Remuera Real Estate agent, Rob Ashton for supplying the Rob Report to Quay Law NZ.   Dear Valued Rob Report Subscriber, Please find attached a copy of the latest issue of The Rob Report for Remuera & Parnell (December 2010 Issue). Please click on LINK       The Rob Report December 2010 Remuera & Parnell One definition of insanity I like is “doing the same thing over and over again and expecting a different result”?? So, a few of the things which I will be doing different  in 2011 are: Due to increasing demand, I am now compiling regular  Rob Reports for Epsom. Past issues of my reports are now available to view on my website This year I have also started  my own property blog – ‘realestateauckland’, which will include various residential property related articles, Bargain property profiles, Bayleys - New Listings and Just Solds, Bayleys Upcoming Auctions, Bayleys Auction Results, copies of The Rob Reports, Case Studies on successful campaigns and more………also for those social media fans, my blog is linked to both “Linkedin” and “Facebook” in case you would like to be a “Friend”.   If you would like to view my blog, please click on the following link: http://realestateauckland.wordpress.com As always, if I can be of assistance, please do not hesitate to contact me.   I hope you have a great month.   Regards Robert Ashton AREINZ BE (Structural) Residential Sales Specialist   View my current listings and profile online at: www.robertashton.bayleys.co.nz TEL +64  9 520 8888 |  Mob  +64  21 633 398|  Fax  +64  9 520 8880 |   Bayleys Remuera, 55a Remuera Road Newmarket, Auckland, New Zealand Bayleys Real Estate Ltd, Licensed under the REA Act 2008 Excerpt: Thank you to Bayleys Remuera Real Estate agent, Rob Ashton for supplying the Rob Report to Quay Law NZ. ### Eastern Suburbs of Auckland Property Report Please find below a property report as supplied to Auckland law firm Quay Law by Robert Ashton of Bayleys (Remuera).  Thanks Rob. Dear Valued Rob Report Subscriber, Please find attached a copy of The Rob Report for the Eastern Suburbs of Auckland - (Orakei, Mission Bay, Kohimarama, St Heliers and Orakei) which summarizes the published residential property sales which occurred during December 2010. Please click on Link The Rob Report - December 2010 - Eastern Suburbs It is interesting to note that the total volume of sales in these Eastern Suburbs, during 2010 (652) was only 4% (29) down on the total for 2009 (681) compared with Remuera & Parnell in 2010 (617) is 16% (119) down on the total for 2009 (736). If you have any friends, neighbours or work colleagues who you think might also find my “Rob Reports” of interest, please do not hesitate to invite them to contact me. Have a great month. Regards Robert Ashton AREINZ BE (Structural) Residential Sales Specialist TEL +64  9 520 8888 |  Mob  +64  21 633 398|  Fax  +64  9 520 8880 Bayleys Remuera, 55a Remuera Road Newmarket, Auckland, New Zealand Bayleys Real Estate Ltd, Licensed under the REA Act 2008 Excerpt: Please find below a property report as supplied to Auckland law firm Quay Law by Robert Ashton of Bayleys (Remuera). Thanks Rob. ### Prime Minister John Key tries World Cup kit Source:  stuff.co.nz International Rugby Board chairman Bernard Lapasset has expressed firm confidence that the World Cup in New Zealand this year will be a success. Lapasset was in Auckland today for the unveiling of the uniform to be worn by volunteers and other core staff during the 6-1/2-week tournament in September and October. With 218 days to go before kickoff, the Frenchman said preparations were further advanced than at the same stage before the 2007 event, of which he was chairman of the organising committee. "I am very confident about the success of the tournament," he said. "We have a good result in terms of the forecast, and the ticketing process is in place." Lapasset said whatever issues that were outstanding were not serious ones and there was time to resolve them. He also said no other aspect was more critical to the successful delivery of a major sporting event than the volunteers. "It is the very heartbeat of the Rugby World Cup." The uniform was launched by Prime Minister John Key at the North Shore Rugby Club, with Key also getting kitted out and doing a brief sashay down the runway along with some of the volunteers. The gear consists of a jacket, polo shirt, rugby jersey and trousers, and features the tournament's mangopare and koru designs, as well as the silver fern. Key said all New Zealanders had a role to play in providing a top experience for cup visitors, but the volunteers and core staff, dubbed Team 2011, were at the forefront. That workforce will number about 7000, of which more than 5000 would be volunteers. So far, tournament organisers have received more than 12,000 applications from people wanting to be a volunteer. Excerpt: International Rugby Board chairman Bernard Lapasset has expressed firm confidence that the World Cup in New Zealand ### Gift duty law change to end the prenup Source : Sunday Star Times – 6 February 2010 (Rob Stock) Prenuptial contracts, which are already in decline, look set to disappear when the National Party does away with gift duty, a move seen by many as one of the biggest changes in property rights in New Zealand history. Gift duty looks set to go by October 1, allowing anyone to freely gift any amount of assets to another person or into a family trust. That will create a new wave of trust establishment – especially now opposition parties like Labour and the Greens have stated their desire to hike taxes for some sections of the population – but it will also allow many who are currently gifting their assets, and putting them beyond the reach of future creditors, to transfer all the rest of their assets into trust at a stroke. Lawyers say the abolition of gift duty, which Labour MP David Cunliffe dubbed a National Party policy for the "plutocrats of Remuera", will have the effect of undermining other legislation. Because it will be so easy to gift assets into trusts, lawyers say, the Family Court will increasingly find itself with no assets to share out between separating couples, undermining the Property Relationships Act. "If gift duty goes, there will be no doubt about what will happen. Certainly in the family protection context, there is not going to be anything to make a claim on," Auckland lawyer Greg Kelly said. "The effect is the 50/50 provision of the Property Relationships Act are being undermined by the establishment of trusts." Trusts are increasingly rendering prenuptial agreements pointless, say lawyers, and once gift duty is gone, prenups will fall into greater disuse. It is far easier to put assets into a trust than present a future partner with a prenuptial agreement, said Kelly. Another piece of legislation that will be weakened, critics say, is the Family Protection Act, which gives courts power to enforce claims on an estate of people who feel they have been unfairly left out of a will. Because of the increasing portion of assets held in trusts, courts will struggle when faced with manifest injustice, but where assets are in trusts. Kelly said gift duty had a "braking effect" on the undermining of legislation by slowing down gifting. So concerned is the legal fraternity, that the Law Society has sent the government submissions on some of the issues it believes most important to justice and society. Kelly said it was unclear how the concerns would be received. The Law Commission wants the government to review trust law completely and it is possible these issues would be canvassed in such a review. Faced with what it sees as injustice, the Family Courts have been increasingly finding ways to bust trusts open, and some are concerned a rise in the quantity of assets in trusts will increase pressure on judges to bust trusts even further. Some lawyers already say judges are ruling contrary to the will of parliament and the common law of equity. Removing gift duty is likely to bring about changes in the way New Zealand does business, Kelly said. For example, lenders would seek more information about trusts. Sunday Star Times Excerpt: Prenuptial contracts, which are already in decline, look set to disappear when the National Party does away with gift duty, a move seen by many as one of the biggest changes in property rights in New Zealand history. ### Presentation on the Proposed Trust Law changes in NZ Please view our Quay Law Trust presentation on the proposed trust law changes in New Zealand  on YouTube. Implications of the repeal of gift duty The repeal of gift duty may exacerbate some of the problems associated with trust use and may reduce the effectiveness of the existing legislative approaches to trusts. Whilst the review of trust law is in progress and the Law commission invites comments NOW IS THE TIME to review your trust to ensure it is able to withstand any changes to NZ trust legislation. For more information regarding your trusts please contact Auckland Lawyer Ian Mellett  on (09) 5232408. http://www.youtube.com/watch?v=LEzLxu5uxuU Excerpt: Please view our Quay Law Trust presentation on the proposed trust law changes in New Zealand on YouTube. ### Legal entities available to you for your NZ business PUBLISHED QUAY LAW LEGAL ARTICLE  In this legal article, Auckland lawyer Ian Mellett reviews the various entities that are available to you when deciding upon the appropriate operating structure for your New Zealand business.  In a previous article, I discussed the matters that should be considered when deciding to purchase a business.  A key aspect in this process is necessarily the choice of the most appropriate purchasing entity.  It is important that you obtain the requisite advice from both your lawyer and accountant, as they will be in a position to explain issues such as limited liability protection, tax and succession planning to facilitate an informed decision being made.    There are four main entities that are predominantly used to operate businesses in New Zealand, namely the sole proprietorship, partnership, limited liability company and trading trust.  Each of these is discussed briefly below. Sole Proprietorship Also known as a sole trader, this is a type of business entity that is owned and operated by one individual on his or her own.  The key characteristic is that the owner is inseparable from the business, in other words there is no legal distinction between the owner and the business.  The owner controls, manages and owns the business, is entitled to all the profits but is also personally liable for all losses, debts and taxes.  A sole trader is usually able to establish the business without following any formal or legal process and can employ other people to assist in running the business. The obvious advantage of a sole proprietorship is that it is easy to start and run, and there is no requirement regarding registration.  The major disadvantage is that the business owner/s has unlimited personal liability for all business obligations (including amongst others debts and taxes), which means that personal assets are potentially at risk.  Sole traders also often lack credibility in the marketplace, and it is invariably more difficult to sell this type of business.  Partnership A partnership is an arrangement where individuals and/or entities agree to co-operate to advance their business interests.  Most frequently, a partnership is formed between one or more businesses in which the partners (namely the owners) work collectively to achieve and share any profits or losses.  It is recommended that the partnership be established by way of a formal partnership agreement.  The partners share responsibility for running the business, share in any profits or losses as stated in the partnership agreement and are liable for any debt within the partnership.  The partnership itself does not pay income tax, but instead distributes the partnership income proportionately to the partners who then pay tax on their own respective shares. The main advantages of a partnership are that no registration is required to commence business, and this entity can provide an effective way to share business operation costs.  The disadvantages are that partners may be held liable for debts incurred by the other partners, personal assets are potentially at risk and complications may arise if a partner dies or wishes to leave the partnership. Limited Liability Company This entity is by far the most popular and successful form of business structure.  A company is a formal and legal entity in its own right, being separate from its shareholders or owners.  The protection that a limited liability company affords to its shareholders is the primary reason for selecting this type of operating entity.  If the company is unable to pay its debts, the shareholders are not liable for the business debts of the company unless their shares are not fully paid up, or they have given personal guarantees to lenders or creditors, or they are also directors of the company and have traded recklessly.  This situation should be contrasted with a sole proprietor or partner who will always be exposed and personally liable for any business debts that cannot be met by the business. The advantages of a limited liability company are continuity of existence (a company will continue to exist until it is removed from the Companies Office register), transferability of shares (making it easier to sell a company or pass on to others such as children) and marketplace credibility.  The disadvantages are that directors need to clearly understand their responsibilities under the companies legislation, and the fact that the limited liability protection can easily be eroded in practice by the requirement to provide personal guarantees to certain lenders or creditors.  Trading Trust Until relatively recently, the choice of business structures in New Zealand was generally limited to the entities discussed above.  However, trading trusts have increased in popularity over the last ten to fifteen years and have now emerged as an alternative option to owning and operating a business.  Essentially a trading trust is a discretionary trust similar to a family trust, but instead of merely holding investment assets it actively carries on a business and derives business profits. One of the key advantages of using a trading trust is the flexibility that it provides, particularly with regard to the allocation of business profits to the beneficiaries of the trading trust.  Trading trusts are, however, a topic on their own, and I would suggest that anyone interested in utilising this type of business vehicle contact our offices to obtain more detailed information.    It goes without saying that it is critical to “get the structure right upfront”.  This is also particularly important in light of the Inland Revenue Department’s stance that a change in operating entity “downstream” has occurred not for commercial but rather for tax (and possible tax avoidance) reasons. Please feel free to contact Ian Mellett (BComm LLB H Dip Tax) at Auckland law firm Quay Law for more information, or if you have any questions regarding your business or other legal needs please call me on (09) 5232408 or visit our website http://www.quaylaw.co.nz or blog https://aucklandlawfirm.co.nz for more information. Excerpt: In this legal article, Auckland lawyer Ian Mellett reviews the various entities that are available to you when deciding upon the appropriate operating structure for your New Zealand business. ### Law firm sponsored Parnell Cricket Club surrounded by high tide floods Source NZ Herald. Pictures show the area surrounding the Quay Law Parnell Cricket Club. Auckland law firm  Quay Law is the proud sponsor of Parnell Cricket. Walls of sandbags are being erected as dozens of Auckland house owners prepare for a second bout of flooding in 24 hours. The Auckland Civil Defence emergency coordination centre has been activated and controller Clive Manley says the region will continue to be affected by gales. Residents of Herald Island are bracing for another surge of water at high tide. About 30 Herald Island properties were evacuated and properties in Maratai, Leigh, Clevedon, Beachlands and Sandspit were flooded by intense rain which hit the city last night. Manley says those areas are likely to be flooded again during high tide at midnight. He has sent workers to shore up the Herald Is properties with sandbags. "Those properties will remain evacuated overnight. People will keep away from those areas." The weather has cut power in Remuera and in Mt Wellington, while in west Auckland, residents at Piha, Titirangi and Henderson have been without electricity. Vector says it has been working on fixing the fault, but some areas may be without power because of damage to service lines. And Weatherwatch.co.nz head analyst Philip Duncan says the flooding will be intensified by the centre of a large low passing over Auckland at the same time as it experiences high tide. That centre is about the size of Tasmania and could cause a storm surge which will raise sea levels, he says. "It acts as a large scale vacuum cleaner and it pulls up the sea with it." "Coupled with the storm surge we also have the strong to gale force winds which will tonight strengthen further ahead of the centre - driving more water up. "With that comes more flooding." Drivers are being warned to take extra care with many slips across the North Island and a lot of surface water. Motorists were advised to take extra caution on State Highway 2 between Napier and Wairoa, SH 3 from Wanganui to Taranaki, SH4 from Wanganui to Raetihi and SH5 from Napier to Taupo due to minor slips and surface water on roads. There were also reports of flooding and a vehicle crash due to wet roads on State Highway 1 north of Waiouru, and the Desert Road between Waiouru and Turangi had closed. A car collided with a fallen tree in the Waikato just after 6am, in what was not a serious crash but closed Maungatautari Road. Further south, weather had forced the cancellation of the flying programme at Wings Over Wairarapa. Meanwhile, fears for low lying Central North Island communities are rising as the region continues to be battered by intense rainfall and strong winds. An Environment Waikato spokeswoman says about 300 campers were evacuated from the low-lying Spa Park near Taupo this morning amid fears about rising river and lake levels. Forecasters are predicting up to 200mm of rain for the area in the next two days, which could cause widespread flooding, she says. Waikato Civil Defence duty officer Adam Munro says many Waikato water catchments are already reaching saturation levels. While Coromandel Peninsula, Hauraki Plains and Lake Taupo are of particular concern, high river levels are also expected in the slower moving Waipa and Waikato Rivers, with forecast flows approaching those seen during devastating floods in 2004, he says. "In that event, low-lying rural areas around Otorohanga, Huntly and Gordonton were flooded for several days," he said. "The severity of the flood will depend on the amount of rain that falls over the next 48 hours so Environment Waikato will be keeping a close watch on river and rainfall levels." The Fire Service responded to more than 100 weather-related events this morning in the northern region, but heavy rain had eased in Auckland and Northland by early afternoon. Worst affected areas were Auckland's North Shore, eastern suburbs and the lower CBD, said fire service northern shift manager Jaron Phillips. Major arterial roads in Auckland remain closed by the flooding from the deluge that hit the city this morning. The northwestern motorway has reopened after floodwater from a king tide closed the citybound lanes at Patiki Road, while surface water is still cutting off motorists at Tamaki Dr and Quay St. A southbound section of the Northern Motorway (SH1) near the Harbour Bridge was also closed by tidal flooding for about an hour this afternoon. The storm also affected communication links to some electronic message boards on the motorway network, and there were slips on the Brynderwyns on SH1 and flooding near Paihia on SH11 in Northland. Flooding fears have eased in Northland after forecasters downgraded a severe weather warning, just three hours after predicting a day of massive rainfall in the region. Metservice issued the warning that 100-150mm of rain would fall by 10pm in Northland at 9am today. It revised that prediction to 20-40mm before 12pm Northland Regional Council Civil Defence manager Graeme MacDonald says the occasional rainfall and few heavy falls could cause surface flooding. But he expects far less damage to the region than originally predicted. Northland received almost 240mm of rain in the 30 hours to 6am today - more than double the region's average monthly rainfall of about 105mm. River and rainfall data from throughout Northland is automatically posted at two hour intervals on the Regional Council's website. The MetService has said the heavy rain was expected to be significant for most regions from Northland down to Waitomo and the central North Island high country, and across the Bay of Plenty to Gisborne and Hawkes Bay. The heaviest rain was expected to be in Northland, Coromandel Peninsula, Bay of Plenty, the central high country and the ranges of Gisborne and Hawke's Bay. Bronwyn Campbell of the Bay of Plenty Regional Council said rivers were rising steadily. "With the current forecast, it is expected the our rivers will peak from early tomorrow morning through to early afternoon tomorrow," Ms Campbell said. The situation was under control and any minor problems were being dealt with quickly, she said. "We understand that there is some localised and surface flooding throughout the region, however this is been attended to by local Council staff." with NZPA and NEWSTALK ZB By Hayden Donnel Excerpt: Pictures show the area surrounding the Quay Law Parnell Cricket Club. Auckland law firm Quay Law is the proud sponsor of Parnell Cricket. ### Valuing a Leaky Home - Excellent Article by Glenda Whitehead of QV Source of Article: QV Website To some people, leaky homes have no value. They wouldn't even consider buying one.  To others, the value is intrinsic because it is already their home. And yet to others, a leaky home may represent an opportunity to make a profit. How do we assess the market value of a home with un-resolved or un-quantified weather-tightness issues?   Does such a property have a different value to an owner who is going to repair it themselves, versus a purchaser? Let us start by considering what 'market value' actually is. The market value is, by definition, the amount a property would exchange for between a willing, well-informed buyer and a willing, well-informed vendor. The principal of market value also states that the situation is free of duress, such as financial stress or matrimonial circumstances. It does not however take into account any emotional stress the vendor may be under in a 'leaky home' scenario. Often an existing owner will conduct remedial work themselves and will not expect to make a profit from the situation. In such cases the owner only sees the intrinsic value of their home and doesn't consider what the open market would pay for such a property. For many, the stigma attached to a leaky home means it won't even be considered for purchase. Leaky homes do sell, and with various levels of unresolved issues.  The cost to rectify each home can be quite disparate.  Therefore, valuing leaky homes by lining them up against one-another is generally not a good approach. However, I have valued a terrace house in a development where all the homes required similar levels of work (re-cladding).  The process was being managed through the body corporate and the actual cost was known to each of the owners.  There was also recent market evidence (sales) within the development reflecting the same circumstances as the property being valued. What we refer to as 'direct sales comparison' was possible and suitable on that occasion. But how do we value a leaky home when there is no direct sales evidence? This question cannot be answered until the likely cost of repair is known. That is, we must establish the building costs, associated Council costs, financing costs over the rebuild period, and all other costs associated with the rectification process. Building costs will often be provided to us by owners who have sought builder quotes after engineers have established the extent of the damage. We must also allow for extra costs such as landscaping, which may be ruined during the rebuild process.  Having these facts at hand, we can then start the valuation process. The valuer begins by assessing the value of the property as if the home has been fixed and has no leaky issues. We also take into account what the material the home will be re-clad with, and any incidental upgrading work, or other alterations that will occur during the process.  Examples include re-cladding with weatherboards, replacement of joinery, and re-aligned roof lines to ensure better water disbursement. Often during the upgrade process other components of the home will be upgraded or replaced out of necessity, these are also taken into consideration when assessing the market value 'as if complete'. From this, we then start the cost deduction process. We deduct for Council costs, building costs, other site development work, the cost of financing the project over the planning and rebuild period, and finally but significantly, a profit and risk margin. Why do we deduct for finance costs? Because we put ourselves in the position of a willing buyer, who will see finance as one of the costs they will incur in the process. A profit and risk (P&R) margin is taken off because; why would a purchaser take on such a project if there was nothing in it for them?  While the current  owner may not want to make a profit but just want a sound and dry home, a prospective purchaser would know there are always risks attached to such work being done. If actual costs exceed those provided, it is the profit and risk margin that will be reduced. Some uncertainty typically remains around costs, so we include a contingency fund. Ultimately, if the project is undertaken by a new owner, the P&R amount is their reward, or for the current owner undertaking the project themselves, it represents their salvaged equity on completion. The bottom line of our assessment is what a willing, well informed market buyer should pay for that property, in order to cover the costs to rectify it, and obtain a reward (the profit and risk component) for taking on the task. Example: Indicated Value 'As if Complete' basis:Land value $ 400,000 Value of improvements $ 290,000 Market value on Completion (excluding chattels) $ 690,000 Added value of chattels $ 10,000 Market value (including chattels) 'As if Complete' $ 700,000 Less costs to rectify Estimated building costs, including labour, materials, architectural fees, Council fees $ 170,000 Estimated finance cost over rebuild/re-sale period, allow:  (say 6-9 months at applicable interest rates eg 7%) $ 21,000 Profit & risk allowance (typically a percentage of 'as if complete' value, 15-25%) $ 105,000 Indicated value 'As Is' $ 404,000 As the indicated value after deducting all likely costs is close to the assessed land value, we are of the opinion that the land value should be adopted as the present value."As is" Market Value adopt $400,000 The above example, in which the Market Value is equivalent to the land value, is from our experience, not uncommon in the Auckland market.   The owner then needs to ask themselves whether they should rectify the existing dwelling, or demolish and start again. The latter would incur further costs associated with demolition. Such a decision would depend on the size of the existing home and how well it makes use of the space the site offers. For an existing owner, rectifying the existing building may be the only viable option. In our assessment, we have not considered that the owner may recoup costs from parties deemed to be responsible for the home having weather tightness issues.  If some recovery is known and certain, it could be factored into the equation. There is a definite stigma attached to properties that have monolithic, or plaster cladding, regardless of whether they have been proved to leak or not. We see this in sales evidence where values are discounted in comparison to, for example, a similar weatherboard home. We also know that saleability is reduced as some buyers won't even consider purchasing them.  We have noted that these homes can take extensive time periods to sell. This can also be said for properties which have had leaky issues in the past, even if they have been re-clad. The stigma remains and is exacerbated in slow market conditions. The value of any home can be significantly reduced if it is discovered to have weather-tightness issues.  If you are purchasing a property and have any doubts about its construction, get a suitably qualified and registered person to look at it, and provide you with a written report. It could end up being the only leg you have to stand on. Glenda Whitehead is a Registered Valuer working with QV in Auckland. To contact a registered valuer near you, call QV on 0800 16 44 44. Excerpt: To some people, leaky homes have no value. They wouldn’t even consider buying one. To others, the value is intrinsic because it is already their home. ### Our top blog post for 2010 - Administration of an Estate (Checklist) Our top legal blog post for 2010 Administration of an Estate – Checklist for the Executor Background When somebody dies, his or her will should be read to ensure that you understand the will maker’s intent. The people named in the will as executors then apply to the High Court for a probate order confirming the will and giving them authority to deal with the estate. If the estate is small then probate may not be required and the pros and cons of this scenario should be discussed with your solicitor. If however, you die without a will or your will is deemed to be ineffective, then you are said to have died intestate. In this event, legislation applies and application needs to be made to the High Court for letters of administration. Under these circumstances, legislation governs who is entitled to benefit from the estate. This could result in the deceased’s wishes not being fulfilled. Dying intestate can be costly. Executor or Trustee of a Will If a Last Will and Testament exists, it will refer to the Executor. This is a legal term referring to a person named or nominated by the will maker, to carry out the directions of the will. You will be required to be guided by tax laws, inheritance laws, property law, court procedures and naturally the demands of the beneficiaries. You are held accountable for carrying out your role properly. A lawyer is there to assist you with your duties and to protect you in this role. Estate administration often involves delays but the majority of estates are administered in an effective and timely fashion. What should you provide to your solicitor? Original Will, if not already in their possession  Bank account details including bank statements, cheque books, credit cards held in the sole name of the deceased Shared bank account details. Life insurance policies.  General insurance policies on the house, contents, vehicles, funeral or businesses. Birth certificate. Marriage certificate. Death certificate. IRD numbers and current statements. Work and Income beneficiary number and any correspondence from Work and Income. Addresses and IRD numbers for all children and beneficiaries of the estate.  Drivers licences.  Passport. Funeral account. Deceased’s interests in other estates and trust. Deceased’s business interests. Portfolio of investments / assets. Some additional items to consider. * This list is not an exhaustive list. Is there a safe deposit box? Did the Will contain special funeral instructions? List of outstanding household accounts e.g. water, lights, electricity, council rates. Are there any considerations that need to be taken into account e.g. changing locks on residences, arranging for the safe custody of personal valuables or important documents? If there is a property portfolio, is there adequate property management in place? Care of business if a one person business. Prepared list of assets not covered already. Prepared list of liabilities not covered already.  Cancellation of club memberships, subscriptions, health insurance etc. Identification of personal items that have been bequeathed to specific parties and receipts for their delivery to those parties. What should happen to pets if not allowed for within the will? Should you need any assistance in relation to Wills and Estate Administration, please contact Auckland lawyer Ian Mellett at Quay Law Barrister and Solicitor. Quay Law is located in the Auckland suburb of Remuera. Contact Details for Auckland law firm Quay Law: Phone +64 9 5232408 Email: ian.mellett@quaylaw.co.nz Web: www.quaylaw.co.nz or www.yourwill.co.nz Twitter: www.twitter.com/quaylaw UNAUTHORISED USE. The contents of this article may be subject to copyright, legally privileged and confidential. Any unauthorised use, distribution or copying of the contents is expressly prohibited. Excerpt: When somebody dies, his or her will should be read to ensure that you understand the will maker’s intent. ### Purchasing a Business In this article, Auckland lawyer Ian Mellett of Quay Law Barrister and Solicitors discusses some of the legal matters that you should consider when deciding to purchase a business. The decision to purchase a business is both exciting and daunting. On the one hand it signifies the start of a new venture, yet on the other it raises the uncertainty and risk inherent in any commercial undertaking. You may also be unsure as to whether to buy an existing business or to start your own from scratch. Generally speaking when you buy an existing business, there should be existing customers from day one which will ensure an instant cash flow. However if you start from scratch, then you will need to generate new customers. Both approaches have their own hurdles that you will need to overcome, and particularly so in light of the tough economic climate currently prevailing. It is important that you engage your professional advisors at an early stage in the process. Your lawyer and accountant, along with a business broker if there is one involved, are well placed to give you the necessary input and advice to enable you to make an informed decision. There are various aspects which require careful consideration. Some of these are set out below: The Agreement It is preferable to use the standard Legal Areement for Sale and Purchase of a Business which has been compiled, and amended over the years, by the forms committee of the Auckland District Law Society. The agreement, much like its counterpart for residential and commercial property transactions, is designed to cater for the needs of both the vendor and the purchaser. Always ask your lawyer to cast his eye over the agreement before you sign the document. There are a number of things that need to be considered, including the names of the vendor and purchaser; what is being sold; the price; terms of payment; warranties by the vendor; conditions such as the obtaining of suitable finance, solicitor’s approval (if appropriate) and due diligence; possible restraints of trade and all issues relating to existing employee contracts. Purchasing Entity It is recommended that the purchaser be reflected as (name)….. “and/or nominee.” This will give you the opportunity to discuss the most appropriate purchasing entity with your lawyer and accountant. Issues such as limited liability protection, tax, succession planning and the like, all need to be considered prior to settlement. There are various options, including but not limited to sole proprietorship; partnership; limited liability company and trading trusts. I will discuss the advantages and disadvantages of these entities in an article sometime in the new year. Due Diligence This is the most important aspect of any business purchase, as it provides you with an opportunity to perform an in-depth analysis across the entire spectrum of the business. Your accountant will be able to assist you in inspecting the financial statements for the past 3-5 years (this will vary from business to business) in order to judge the “financial health” of the business, and to raise any concerns or request further information if necessary. Your lawyer will be able to assist you with all the legal aspects of the due diligence process. These include, but are not limited to, reviewing all lease and/or licensing agreements; patents and copyright (if any); stock valuations, and evidence of ownership of equipment and assets (and whether these are unencumbered or not). He will also ascertain what is being sold namely the business and its assets, or the shares. The last issue is extremely important, as it will determine how certain aspects of the purchase need to be dealt with from a taxation perspective. Generally, due diligence only needs to be done once you have signed the Agreement. However, in practice, much of this work is often done in finding out about the business and in determining what amount to offer. Now you will need to decide! Due to space constraints, I have only briefly touched on some of the more significant aspects which you need to consider when purchasing a business. My recommendation is that you consult your lawyer (and accountant) early in the process to ensure that the proposed transaction proceeds smoothly. There is a cost associated with obtaining professional advice, but it is my experience that this will be far cheaper than the cost of getting it wrong. Please feel free to contact Ian Mellett (BComm LLB H Dip Tax) at Quay Law.  (Phone 09 5232408) Our Legal Website:  http://www.quaylaw.co.nz Please Like us on Facebook  to keep updated with the latest news and legal tips. Excerpt: In this article, Auckland lawyer Ian Mellett of Quay Law Barrister and Solicitors discusses some of the legal matters that you should consider when deciding to purchase a business. ### Chinese keen to bring their riches to NZ Source: NZ Herald Reporter : Lincoln Tan New Zealand has a strong appeal for rich Chinese people who want to move here as investor migrants. Two have been granted conditional residencies after investing more than $10 million each in "approved investments" and 43 others - more than from any other country - are waiting to be granted approval or have received approval in principle to transfer more than $1.5 million each. Acting head of Immigration Jan Clark says the department has also given approval to a third Chinese investor to transfer money. Immigration Minister Jonathan Coleman said the business migration scheme had attracted $416 million of potential investment capital to New Zealand. So far, more than $102 million has been transferred and invested here and $133 million has been approved for funds transfer. Applications worth another $181 million are being processed. "We developed a policy package that makes New Zealand very attractive to business migrants, and they're staking their confidence in New Zealand at a time of difficult international financial conditions," Dr Coleman said. When the scheme was introduced, many would-be investors from China claimed Immigration's recognition of money transfers only through the banking system was blocking them from investing in New Zealand because of China's strict money transfer rules. A licensed immigration adviser said the two successful investor applicants had transferred their money through Hong Kong to get around the rules. "Their nominated funds are in Hong Kong, and it is easy enough to use the Hong Kong banking system to transfer the money here," said the adviser, who did not want to be named. He was advising his other Chinese clients to use similar means to move their money if they wanted to apply for New Zealand residency. "It's a bit of a hassle and takes longer, it's a pathway they can use," he said. "For example, the Chinese can buy properties in Hong Kong, liquidate the funds and then transfer the money over." However, the New Zealand Association for Migration and Investment advocacy and policy chairman Jimmy Lee said New Zealand's business migration policy still discriminated against the Chinese. The association has made a written submission to the Department of Labour, which oversees Immigration, asking it to review its business migration policies. "From the Immigration figures, we know the Chinese hold the key to how successful the policy will be," Mr Lee said. "There should be a total review of the business migration policies if the Government is serious about wanting more investor migrants." Immigration adviser Ming Tiang, who runs Chiwi Immigration Services, says he has at least 10 Chinese clients, with between $1.5 million and $10 million to invest, who could not meet Immigration's "bank transfer only" requirement. INVESTOR 1 ($10 million+ investors) Number of applications approved by country 2 - China, US 1 - Finland, UK, Singapore, South Korea INVESTOR 2 ($1.5 million+ investors) 9 - US 2 - UK 1 - Japan, Singapore, South Africa APPLICANTS Approved in principle/under process (top three countries) 43 - China  35 - UK 19 - US Source: Immigration New Zealand Excerpt: New Zealand has a strong appeal for rich Chinese people who want to move here as investor migrants. ### Now is the time to review your trust Whilst the review of trust law within New Zealand is in progress. Now is the time to review your trust to ensure it is able to withstand any changes to NZ trust legislation. For more information or to talk to a trust lawyer regarding trusts please call Auckland law firm Quay Law on telephone number  (09) 523-2408. Excerpt: Whilst the review of trust law within New Zealand is in progress. ### Legal eagles examine 'status symbol' family trusts Source NZ Herald By Adam Bennett 5:30 AM Tuesday Dec 21, 2010 Law Commission President Hon Justice Grant Hammond. The Law Commission is taking aim at New Zealanders' widespread use of family trusts - in many cases to hide their wealth or avoid liabilities, including up to $300 million a year in tax. The commission yesterday released a discussion paper looking at the use of family trusts in New Zealand, where there is one for every 18 people, against one for 34 in Australia and one for 294 in Britain. Use of trusts in New Zealand has shot up in recent years, from 145,900 active for tax purposes in 2001 to at least 237,500 in 2008. The commission said the actual number might be as high as 400,000. It said New Zealand's "trusts culture" had been described as "viral" or influenced by a "me too" syndrome, with many people motivated to establish one just because someone they knew had one. It was even suggested they were seen as something of a status symbol. The Law Commission's paper examines the motivations for establishing family trusts in recent decades. Commissioner George Tanner said the establishment of many of the trusts was "related to Government policies and the advantages that can be gained by transferring assets or income splitting". The paper notes that family trusts first became popular in New Zealand in the 1950s when they were seen as a means to avoid paying estate duty and other high taxes. In the 1970s they were seen as "the obvious vehicle" to avoid the impact of new laws which meant matrimonial property had to be equally divided in the event of divorce. They received another boost with changes to the tax system in 2000 which increased the top rate of personal income tax to 39 per cent while the tax rate for trusts was kept at 33 per cent. But the potential to use trusts as tax shelters was curbed when the top personal and trust rate were aligned in October this year. Nevertheless, the Government's Tax Working Group estimated that income sheltering using trusts cost the taxman about $300 million in 2007. It was also believed that trusts have been increasingly used in response to means-testing for some benefits. Between 1985 and 1998, when there was a surcharge on other income for NZ Superannuation beneficiaries, trusts were often used to eliminate its impact. In addition, trusts were often used by applicants seeking the residential care subsidy, to reduce their assets in order to satisfy eligibility criteria for the benefit. In the last Budget, the Government acted to restrict the extent to which trusts could be used to disguise assets and therefore allow higher-income families to qualify for Working for Families. In its discussion paper, the Law Commission asks why trusts are so popular, whether the existing law on them is adequate and whether limits should be placed on what they are used for. THE NUMBERS * 400,000: The estimated number of family trusts in New Zealand. * 167,925: The number of family homes held in trusts. * $93 billion: The value of assets held in family trusts - equivalent to 18.6 per cent of all household wealth. * 50 per cent of all couples with an annual income over $200,000 have a family trust. Excerpt: The Law Commission is taking aim at New Zealanders’ widespread use of family trusts – in many cases to hide their wealth or avoid liabilities, including up to $300 million a year in tax. ### Happy holidays The team at Auckland commercial and property law firm Quay Law would like to wish our clients, friends and family a merry Christmas, happy holidays and a wonderful 2011. Should you require any assistance over the holidays please contact 0210432373. Ian Mellett ( Auckland lawyer) and his Quay Law legal team Excerpt: The team at Auckland commercial and property law firm Quay Law would like to wish our clients, friends and family a merry Christmas, happy holidays and a wonderful 2011. ### New Zealand a "must-go-to" New Zealand a 'must-go-to' Last updated 05:00 30/12/2010 After being named third-best country to live in, now New Zealand's second only to New York as the place to be in 2011. Kiwis headed overseas next year might want to unpack their bags now that New Zealand is No 2 on CNN's list of top destinations – ahead of the Peruvian Amazon, Japan and Barcelona. Compiled by travel experts – including Lonely Planet's US editor, Robert Reid – the list cites "fantastically luxurious lodges" and the Rugby World Cup as two reasons New Zealand is a must-go-to in 2011. The cup was "a great springboard" for tourists to see the country, Reid said. He was "determined to learn the haka" here. New Zealand was ranked third-best country to live in in this year's United Nations Human Development Report. The Dominion Post Excerpt: After being named third-best country to live in, now New Zealand’s second only to New York as the place to be in 2011. ### Buying a property at an auction or on a tender Are you buying a property at an auction or on a tender? Our property experts at Auckland law firm Quay law are able to review the legal documents for you. It is extremely important to remember that once you have signed the agreement, a legally binding contract comes into force with the ensuing legal obligations. Our legal team will review the property title, the particulars and conditions of sale and, if provided, the LIM.  For more information regarding our legal services please contact us on Ph 09 5232408      Fax 09 5232409      Website Excerpt: Our property experts at Auckland law firm Quay law are able to review the legal documents for you. ### Congratulations to Adrian Barkla for a successful community party at New World Congratulations to Adrian Barkla for a hugely successful party at New World on December 9th.  It was a great community event with lots of customers, businesses, music, food, wine and entertainment - including a surprise appearance by Elton John. Members of the Remuera Business Association, in which Barkla plays an active role, supported the celebratory event by ‘waitressing’ for Barkla’s guests during the evening.  Thank you to the Remuera Business Association members including Auckland law firm, Quay Law staff who helped serving food. Excerpt: Congratulations to Adrian Barkla for a hugely successful party at New World on December 9th. ### Local Property Report by Rob Ashton of Bayleys - November 2010 This Auckland Property Report has been provided to law firm, Quay Law by real estate agent, Rob Ashton of Bayleys.   Dear Valued Rob Report Subscriber,  Please find attached a copy of the November 2010 Issue of The Rob Report for Remuera & Parnell. Click on link for a detailed local property report  The Rob Report November 2010 Remuera & Parnell  In this issue I have included a selection of properties which are currently advertised for sale with Bayleys and the owners of which are keen to secure a sale over the Christmas / New Year period.  In between the odd trip to the beach for a surf, my family and I will be around Auckland so if you are wanting to purchase a property during this period, please do not hesitate to contact me as I am only too happy to help.  If you are looking for a large family home in Remuera, I have a 5 brm + study, Architecturally designed home which is located in Broadway Park, Remuera (Capital Value: $1,500,000 Land Area: 702m²). This home does require a reclad which has been factored into the asking price. An opportunity to refurbish this property which will make a lovely home.  For your information, if you would like copies of any past issues of The Rob Report, over the next few days I will be publishing them on my website:    www.robertashton.bayleys.co.nz  May I wish you a Merry Christmas and I look forward to being of service in the new year. Excerpt: This Auckland Property Report has been provided to law firm, Quay Law by real estate agent, Rob Ashton of Bayleys. ### Apartment buyers and sellers For anyone thinking of selling or buying an apartment, you should have a good relationship with a real estate agent who specializes in apartments especially when dealing with apartments on a leasehold title.  As an apartment buyer, make sure that the agent provides you with at least three years of Body Corporate Annual General Meeting (AGM) minutes and budgets. In addition ask if there have been any Extraordinary General Meetings (EGMs) or committee meetings. A copy of the financial accounts would also provide valuable additional information.  In accordance with your banks requirements, confirm that you are able to borrow on the specific apartment.  Remembering it is always advisable to make any Agreement for Sale and Purchase conditional upon the satisfaction of a financial condition.  We also recommend that prior to you signing your Agreement for Sale and Purchase (whether buying a home or selling a home) that you consult with your chosen solicitor.  For more information on buying or selling your home or investment property, please contact Ian Mellett at Quay Law Barrister and Solicitor.  Quay Law is an Auckland law firm based in Remuera. Our contact telephone number is +64 9 5232409. Excerpt: For anyone thinking of selling or buying an apartment, you should have a good relationship with a real estate agent who specializes in apartments ### Lease proposal could hit businesses Source:  NZ Herald Date: December 7, 2010 Businesses could face a big hit on their balance sheets under a proposal to include leases of buildings, cars and equipment as a liability in financial accounts, an expert warns. The proposal is being put forward by the International Accounting Standards Board in London which sets the international financial reporting standards that New Zealand businesses now follow. Kimberley Crook, the head of accounting advisory services for Ernst & Young in New Zealand, said the proposal could affect how businesses are valued, employee performance measures and banking covenants if it is not planned for. The change could also produce a flow-on effect such as companies taking shorter leases on buildings or forgoing rights of renewal periods to reduce the amount they need to account for, she said. "It's certainly not something people should ignore." At the moment a lease on a building is accounted for by including the rent as an operating expense. But under the proposed changes, if the building was leased for five years the amount to be paid over the entire time would have to be included as an asset for the use of the building and as a liability for the commitment of paying the rent over the lease period. The liability would be high at the start of a lease period then reduce over the lease as the timeframe for the financial commitment was reduced. "At the moment if you leased a building you wouldn't have any kind of asset or liability on the accounts for that. As you pay rent you just view it as a cost. But under the changes it would be treated as repaying a liability." Crook said a company involved in a large amount of leasing could face a detrimental impact on its gearing and working capital ratios. "For both lessees and lessors, fundamentally altering these ratios can have major consequences for banking covenants." The change is being proposed because there is a difference in the way finance leases - such as when something is bought on hire purchase - are treated compared with operating leases. The difference means there is concern that some deals are being structured as operating leases to keep them off balance sheets. Crook said Ernst & Young had called for more field testing to determine the proposal's full impact before it was introduced. "Given the scale of change, to do it quickly might end up with a standard people will struggle to apply." Submissions on the proposal close on December 15. By Tamsyn Parker Excerpt: Businesses could face a big hit on their balance sheets under a proposal to include leases of buildings, cars and equipment as a liability in financial accounts, an expert warns. ### New immigration alterations start today Source: Newstalk ZB - 29/11/2010 7:32:00 Changes to the immigration set up begin today with rules for employers also tightened Major changes to our immigration system begin as of today, as the new 2009 Immigration Act takes effect.  Under the new set up, the appeals and deportation bodies have undergone big alterations.  The Removal Review Authority, Residents' Review Board, Refugee Status Appeals Authority and Deportation Review Tribunal, are now merged into one entity, the Immigration and Protection Tribunal.  Changes have also been made to rules for employers around foreign workers and work permits. They'll now have to show they've done due diligence in making sure the person is eligible to work in New Zealand. Excerpt: Changes to the immigration set up begin today with rules for employers also tightened ### Land Rover to sponsor Rugby World Cups Source :  BBC News UK Carmaker Land Rover has been unveiled as a sponsor for the next two Rugby World Cup tournaments. It will be a second tier "Official Sponsor" for the 2011 Rugby World Cup in New Zealand, and a top tier "World Partner" for the 2015 event in England. The financial details of the deals have not been released. Land Rover, part of Jaguar Land Rover, the UK business owned by India's Tata Motors, is already involved in rugby union sponsorship. It is already the "Official Vehicle" of both the England national side and the England Premiership. Land Rover's sales are up 32% so far this year compared with 2009, led by strong growth in China and Brazil. Excerpt: Carmaker Land Rover has been unveiled as a sponsor for the next two Rugby World Cup tournaments. ### National pushes through 90-day work law Source: NZ Herald By Peter Wilson  Employment law changes which were fiercely fought by unions and the Labour Party have been passed by Parliament. The 90-day trial period for new employees has been extended to all businesses, and workers will be able to cash in the fourth week of their annual leave. The separate bills passed their third readings yesterday, both on votes of 64 to 56. Labour Minister Kate Wilkinson said the 90-day trial period, which previously applied to businesses with 20 or fewer employees, had been a success. It was introduced soon after the 2008 election, amid strident union protest. "Rather than have the sky falling in, as was hysterically proclaimed, employers of small and medium-sized businesses gained the confidence to hire new employees," Ms Wilkinson said. " Without the trial period, hundreds of New Zealand workers would not have the jobs they currently do have." Ms Wilkinson said employers wanted to invest and grow their businesses but didn't want to face a personal grievance if they hired someone who turned out to be unsuitable. Article continues below "They simply chose not to hire anyone. The 90-day trial has changed that." Labour MP Trevor Mallard, the party's labour relations spokesman, said extending the trial period was "just a continuation of the National Party's attack on the rights of wage and salary earners and their conditions". It would not help the economy and was being done for political and ideological reasons, he said. "It weakens the processes around job security, extends the range of reasons for dismissal, restricts substantially the right to appeal, and restricts the right to reinstatement," Mr Mallard said. "This sort of attack drives down wages, it is a tool they are using." Ms Wilkinson said the law change allowing employees to cash in their fourth week of leave would give them greater choice and flexibility. "Only the employee can make this request - if an employer does so they will be in breach of the Act." Under the law change, employees can ask to cash in their fourth week of leave and employers must consider requests within a reasonable time. Employers don't have to agree, and don't have to give a reason for turning it down. Labour MP Darien Fenton said it had taken unions 30 years to get a fourth week of annual leave. "The Government is advocating for longer hours at work ... over time, it won't be a fourth week of leave, it will be part of salary and we will have lost it." Another controversial measure in the bill is that it allows employers to ask for proof of illness after the first day of sick leave. Ms Wilkinson said it would be used "very sparingly" and employers would have to pay for the proof. "It is clear they will only request a medical certificate when they genuinely suspect someone of routinely pulling sickies," she said. National, ACT and United Future supported the bills which come into effect on April 1 next year. Labour, the Greens, the Maori Party and the Progressive Party opposed them. APPLY HERE *90-day trial period to apply to all businesses. *Workers able to cash in fourth week of annual leave. - NZPA By Peter Wilson Excerpt: Employment law changes which were fiercely fought by unions and the Labour Party have been passed by Parliament. ### Auckland's not-so-super living arrangements Source: CATHERINE HARRIS - The Dominion Post  Auckland will need to build 5000 state and private rental houses every year for the next 15 years to accommodate population growth, two housing reports say. The reports, commissioned by the Centre for Housing Research Aotearoa New Zealand, coincide with fresh Statistics New Zealand figures which show the country's population is growing naturally by just under 35,000 a year. Falling home ownership and high house prices are forcing increasing numbers of people to rent and the reports estimate that by 2026, Auckland will need 75,000 rentals. The reports looked only at Auckland, the country's largest and fastest-growing city. One of the reports' authors, Ian Mitchell of Darroch, said it was unclear where the incentives would come from to ensure $1.6 billion a year was pumped into the rental market. "With the changed housing market landscape that we are seeing at the moment – house prices not going up by as much, and changes in the tax regulations around tax depreciation and LAQC companies – it's not perhaps as an attractive environment for investors as it has been in the past. "If we don't see the growth in the rental stock coming through, we're likely to see a number of undesirable consequences happening with increased crowding occurring. And as the pressure builds in the market, that's likely to put a lot more upward pressure on rents, which will mean that those renter households will be paying an even greater percentage of their income in rent, and make it harder and harder to save any money or pay off any debt they may have." The reports predicted that by 2026, demand for housing in Auckland would have leapt by nearly 40 per cent to more than 601,000. By that time Auckland would be getting close to running out of residential land. Mr Mitchell said there was room for another 150,000 dwellings in Auckland. The reports forecast demand for 130,000 houses over the next 15 years. "So under the existing planning regime, Auckland would be getting near the end of their available development sites." Auckland's planners would need a mix of solutions, which might include urban renewal, intensification, landbanking, rezoning and private-public partnerships with developers. "The Auckland council now has a window of opportunity of five to 10 years to sort this out before the situation gets too critical, and they're fully aware of this." Auckland also faced a big rise in commuter numbers because of a mismatch between areas of housing and jobs growth, he said. Job numbers were growing along the north-south motorway, the CBD and Panmure, while new housing was most likely on the urban fringes. Future housing demand would be shaped by the rising number of elderly, singles or couples without children. Elderly renters were "going to be the biggest growth part of the private rental market in Auckland", Mr Mitchell said. Ironically, although Auckland has a strong population growth forecast, it runs the danger of losing locals because of housing affordability. Census figures between 1996 and 2006 show that more New Zealand residents migrated out of Auckland than moved in. "If housing affordability remains poor in Auckland and worse than other locations, it could have an impact on its ability to grow," Mr Mitchell said. Super-City Facts Nearly half of those privately renting households in Auckland are financially stressed – that is, they spend more than 30 per cent of their total gross income on housing. Demand for rental accommodation is rising faster (63.5 per cent) than demand for owner-occupied houses (26.2 per cent). Housing need is expected to be heaviest in Auckland's south-east, south-west and Manukau north-west. Young households (20 to 40 year olds) rated family, friends, schools and lifestyle more important than proximity to work when choosing where to live, but access to transport was essential. Excerpt: Auckland will need to build 5000 state and private rental houses every year for the next 15 years to accommodate population growth, two housing reports say. ### Remuera Business Association - New Executive Committee The role of the Remuera Business Association is to promote the interests of its members within the Mainstreet area. This includes representing the Remuera shopping centre as a desirable place to visit, shop, work and invest in. This will positively affect the community and provide residents with a strong sense of belonging and pride in the Remuera town centre. Remuera Business Association (R.B.A.) Executive Committee Scott Dargaville - Chairman Ian Mellett - Treasurer Mark Sanders Tom Davies Adrian Barkla Sarah Clark Elise Harper John Lee Sue Webber Remuera Gallery Quay Law Sanders of Remuera Gracious Living New World Hedgerow  Poppies Books Jems of Remuera Living at Home Excerpt: The role of the Remuera Business Association is to promote the interests of its members within the Mainstreet area. ### Rugby World Cup 2011 (Empowering) Bill Source : Scoop.co.nz The Government's facing criticism over special powers granted to Rugby World Cup Minister, Murray McCully. The Rugby World Cup Empowering Bill, passed by Parliament last night, gives the minister the ability to make final decisions on urgent consent applications connected to the event. Labour List MP Phil Twyford says that could be dangerous. He says Mr McCully is a meddler and and a manipulator who won't respect the conventions of accountable government. But National MP John Hayes says there are protections in place. He says Mr McCully can only take decisions on the most urgent applications following consultation with at least two other ministers. Mr Hayes also points out the power only applies between the first of July 2011 and the end of the tournament. The Greens share the concern over the powers for the World Cup Minister, and the Maori Party has also voiced concerns about the Bill. While it supports it, MP Rahui Katene is unhappy with special provisions allowing the granting of liquor licenses for the event. She's worried there's too much focus on alcohol for the event, something that could cause problems. Excerpt: The Government’s facing criticism over special powers granted to Rugby World Cup Minister, Murray McCully. ### Tax cuts make homes more affordable Source: NZ Herald By Susie Nordqvist Thursday Nov 18, 2010 The Government's package of income tax cuts helped improve home loan affordability last month by the most in nearly two years, a report shows. But it's still not enough for a typical buyer, on a single income who has saved a 20 per cent deposit, to comfortably buy a home in New Zealand. Houses are described as affordable when 30 per cent of an income is needed to repay a mortgage. The affordability report, compiled by Roost Home Loans mortgage brokering group, shows it now takes 55.7 per cent of one median weekly take-home pay of $799.06 to pay the mortgage on a median-price house bought during October, down from 57.9 per cent in September. This represented the biggest progress since a 6 per cent rise in affordability, from 60 per cent to 54 per cent, in January last year, when interest rates and house prices were falling sharply, the report said. Home loan affordability is now back at levels seen in June 2004, before the housing boom. Income tax cuts which took effect from October 1 improved median take-home pay by about $30 a week. Margaret Smith of Roost said buyers had the upper hand in a market which had more choice for buyers. "Home buyers have the wind at their backs," she said. The national median house price was flat at $350,000 last month and is now down 3 per cent from a record high of $360,500 in March. The average two-year mortgage rate was flat at 6.73 per cent during October. But there was no evidence that home buyers had taken advantage of the boost in home loan affordability last month, the report said. The report shows it took 69 per cent of one median take-home pay of $847.75 to pay the mortgage on a median-priced house purchase in Auckland last month - making it the least affordable region in the country. Based on current income and house prices it will take an individual 8.4 years to save the 20 per cent deposit required by most banks in New Zealand and 10.4 years in the Auckland region. Excerpt: The Government’s package of income tax cuts helped improve home loan affordability last month by the most in nearly two years, a report shows. ### Law around buying homes to change Wed, 17 Nov 2010 1:30p.m. Source:  3 News.co. nz How Kiwis buy and sell their houses is to change after the Government decided to change the law to modernise and simplify New Zealand's land transfer legislation. Land Information Minister Maurice Williamson said the bill would be introduced next year following a Law Commission review of the Land Transfer Act 1952. Mr Williamson said all the commission's recommendations would be adopted and the bill would modernise and simplify land transfer legislation. "New Zealand has a modern, electronic land transfer system that enables people to buy, sell, mortgage, and lease land in an efficient manner, but the system is not supported by modern legislation," Mr Williamson said. "Some provisions in the Land Transfer Act have been carried over from Acts passed more than 100 years ago." The bill would also introduce measures to better protect home owners such as allowing a court, in cases of clear injustice, to order correction of the register to avoid a registered owner losing their home through fraud. "A land transfer system that provides people and businesses with secure property rights is a prerequisite for a prosperous, sustainable economy." NZPA Excerpt: How Kiwis buy and sell their houses is to change after the Government decided to change the law to modernise and simplify New Zealand’s land transfer legislation. ### Immigration Act 2009: Employer obligations Source: Immigration New Zealand The provisions of the Immigration Act 2009 relating to employer obligations come into effect on 29 November 2010.The provision allowing the Department of Labour to share information with employers came into effect on 2 August 2010. What is changing? The 2009 Act narrows the ‘reasonable excuse’ defence for employing a foreign national not entitled to work in New Zealand. Employer obligations The new Act retains the requirement that employers must not employ foreign nationals who are not entitled to work in New Zealand or for that employer. This applies whether or not the employer knew the foreign national was not entitled to work.  From 29 November 2010, employers need to show they have taken ‘reasonable precautions’ and ‘exercised due diligence’ in checking whether foreign nationals are entitled to work for them. An Inland Revenue ‘IR 330’ form will no longer be a ‘reasonable excuse’.  The reasonable excuse change will not apply to workers who were employed before 29 November 2010, when the new Act provisions come into effect.  The Department of Labour has worked with employer organisations and unions to develop guidance on what constitutes ‘reasonable precautions’ and ‘due diligence’.   The Department has also introduced an online system called VisaView to enable registered employers to verify whether prospective employees are entitled to work for them and whether there are any conditions.  The system is designed to be quick and easy to use, and to protect individual privacy. Employers who obtain information from the Department will be required to comply with the Privacy Act 1993.  Penalties The penalties for offences committed by employers will remain the same as under the Immigration Act 1987: The maximum penalty for employing a foreign national who is not entitled to work in New Zealand is a fine of $10,000. The maximum penalty for allowing or continuing to allow a foreign national to work while knowing that person is not entitled to work is a fine of $50,000. The maximum penalty for exploiting a foreign national who the employer has allowed to work while knowing that person was not entitled to work is:  imprisonment for seven years, or  a fine of $100,000, or both. Employer obligations - frequently asked questions Note: The provisions of the Immigration Act 2009 are not yet in force. The provisions relating to employer obligations will come into effect on 29 November 2010, with the exception of the provision allowing the Department to share information with employers, which comes into effect on 2 August 2010.  The provisions of the Immigration Act 1987 apply until the new provisions come into effect. How will the Immigration Act 2009 affect employers? Under the Immigration Act 2009 (and the Immigration Act 1987), an employer must not employ a foreign national who is not entitled to work in New Zealand or entitled to work for that employer. This applies whether or not the employer knew that the foreign national was not entitled to work. What if an employer holds an IR 330 (tax code declaration) form for the employee? When the Immigration Act 2009 comes into effect on 29 November 2010, the provision of an IR330 tax declaration form will no longer be a reasonable excuse for employing a person who is not entitled to work in New Zealand or entitled to work for that employer. Instead, an employer will have to show that they took reasonable precautions and exercised due diligence to check whether the foreign national was entitled to work for the employer in New Zealand.  What does the change mean for employers? The Department of Labour recognises that most employers are already very good at checking a person’s entitlement to work. Our guide to help employers check work entitlement suggests that:  Employers have secure and robust systems and processes in place for:   checking a potential employee’s immigration status retaining copies of the documentation that was checked. Employers review their recruitment processes to ensure they are communicating to potential employees at the earliest opportunity the need to provide evidence of eligibility to work in New Zealand. How will an employer be able to check a foreign national’s entitlement to work? Employers can: Ask if the person is entitled to do the work (e.g. is the person entitled to work in Marlborough picking grapes?) Seek documentary evidence of entitlement Check the evidence Keep a record of the evidence What documents will be acceptable as evidence of entitlement to work? The Department will recognise (and proposes that as a matter of best practice employers only accept) the following documents as acceptable evidence of a person’s eligibility to work in New Zealand: Non-citizen Foreign passport with a valid New Zealand work visa Foreign passport with any valid New Zealand visa allowing work Foreign passport with a New Zealand residence class visa Australian passport Foreign passport with an Australian permanent resident visa and/or a current resident return visa    Citizenship New Zealand passport Full New Zealand birth certificate issued prior to 1 January 2006 showing parents names (with photo identification) Full New Zealand birth certificate issued on or after 1 January 2006 that positively indicates New Zealand citizenship Certificate of grant of New Zealand citizenship (with photo identification) Registration as a New Zealand citizen by descent under section 7(2) of the Citizenship Act 1977 (with photo identification) An evidentiary certificate issued under section 21 of the Citizenship Act 1977 confirming the person to be a New Zealand citizen (with photo identification) Foreign passport with an endorsement indicating the fact of New Zealand citizenship (with photo identification) New Zealand citizens include persons from the Cook Islands, Niue and Tokelau.  What support will the Department provide employers? The Department has developed an online service (VisaView) that will let an employer check a prospective employee’s entitlement to work in New Zealand for that employer.  When will the online enquiry service be available for employers to use? The VisaView online service is available from 2 August 2010. Can any employer use the online enquiry system? Employers will be required to register and be verified as a New Zealand employer. What information will I be able to get about a potential employee? Employers are able to check whether a person is able to work for that employer, any conditions attached to that particular visa and the expiry date of that visa. What are the penalties for employers who employ foreign nationals not entitled to work in New Zealand? Penalties for offences committed by employers remain the same as under the Immigration Act 1987: The maximum penalty for allowing a foreign national who is not entitled to work in the employer’s service to do that work is a fine of $10,000. The maximum penalty for allowing or continuing to allow a foreign national to work while knowing that person is not entitled to work is a fine of $50,000. The maximum penalty for exploitation of a foreign national whom the employer has allowed to work while knowing that person was not entitled to work is: imprisonment for seven years, or a fine of $100,000, or both. Excerpt: The provisions of the Immigration Act 2009 relating to employer obligations come into effect on 29 November 2010. ### REMUERA ADOPTS SCOTLAND FOR RWC 2011  Remuera has been allocated Scotland as our team for Auckland City's 'Adopt a Team' programme, which enables business districts to participate in Rugby World Cup festivities.  Scotland is a great fit for Remuera, especially with St Kentigern's School just down the road.  All schools and rugby clubs in the Remuera area will also be supporting Scotland so it's a great opportunity to build community events and vibrancy in the town centre.  We will have more information from Council in the coming months as to how the programme works. Source : Remuera Business Association Excerpt: Remuera has been allocated Scotland as our team for Auckland City’s ‘Adopt a Team’ programme, which enables business districts to participate in Rugby World Cup festivities. ### Flag those Cup Chances Source: NZ Herald, 14 November 2010 By Maria Slade Opportunities still abound for Auckland businesses to make hay out of the Rugby World Cup sunshine, executives at the city's newly created economic development body say. The Auckland 2011 project was set up as a joint effort by the region's councils, economic development and tourism agencies. It works with the government body, New Zealand 2011, to ensure business makes the most of RWC opportunities. But with the advent of the Super City, Auckland 2011 is now officially one entity and comes under the auspices of the new council-controlled organisation Auckland Tourism Events and Economic Development (ATEED). While ATEED probably needs to come up with a catchier acronym, general manager, sector and business development, Clyde Rogers said it had made the region's efforts far more streamlined. "It makes things more efficient and I guess in the end we're able to deliver the programme in a more holistic and efficient way." Auckland 2011 has been providing businesses with information on how to bid for work and launched a guide to business opportunities earlier this year. It will launch a follow-up programme and guide, called Event Ready, this coming March. About 45 licensing opportunities have already been let, from upgrading training venues to toilets and signs. Half had gone to Auckland businesses. However, there were still opportunities for businesses, particularly in the corporate hospitality area, Rogers said. Firms could register as a supplier on the Tenderlink site and receive notification of any new tenders. Auckland 2011's other major focus was the international trade opportunities the RWC could bring, he said. "A lot of research we've done tells us that countries like Australia with the Sydney Olympics really levered the event for offshore business opportunities." The Auckland organisation is working with government in developing the Business Club, an online community linking local and overseas businesses. Kiwi businesses can sign up as "hosts" and visiting business people are put in touch with events that may suit them. Rogers said the aim was to identify business people coming to town, and supply them with information on networking and showcasing opportunities. So far 1500 New Zealand and 500 international business people have joined the site, and the aim is to reach 10,000. Auckland 2011 is also working on an Investment Ready programme, in conjunction with bodies such as expatriate network Kea and the Escalator high growth service. Part of the body's efforts so far has been a series of seminars, the last of which was this week and focused on global connections. Speaking at the event, Grant Fox, former All Black and managing director of Carnegie Sports Marketing, urged local businesses to understand the scale of the opportunity. The Rugby World Cup would deliver the largest number of international visitors of any event in the world except the Olympics and the Soccer World Cup. "When we say it's a massive opportunity we're not just fudging it." He encouraged businesses to contribute to the Kea Pass It On project - an online gallery of video clips exhibiting the best of Kiwi innovation. Shane Brown, managing director of Mt Roskill-based Flagz's Group which is the official provider of flags to the RWC, said networking paid off. Flagz is making all the street flags and banners and will also make retail products such as supporters' capes and car flags. Flagz's licence came about after a "fortuitous" meeting with people from Velocity Brand Management, the company managing RWC licences, at a conference in Sydney early last year. It was early days with not much happening. But those networking efforts, plus Flagz' reputation as a supplier and sponsor of Emirates Team New Zealand, lead to the deal, Brown said. He advised other businesses to make connections. "I believe there's still opportunities out there. Really it's starting to fire now." National stage set for growth Key indicators are showing that the economy is improving. Rising employment and falling debt assisted by record commodity prices, a low Kiwi dollar against the Australian currency, low interest rates and improving manufacturing all point to brighter days ahead. Next year, with help from the Rugby World Cup, post-earthquake reconstruction and the simple passage of time taking more people and businesses to comfortable debt positions, we expect much stronger economic growth near 3.5 per cent. But for the next three months it remains likely that householders in particular will retain a tight grip on their finances, perhaps waiting for greater labour market strength. - Tony Alexander, BNZ chief economist Excerpt: Opportunities still abound for Auckland businesses to make hay out of the Rugby World Cup sunshine, executives at the city’s newly created economic development body say. ### October 2010 Remuera and Parnell Property Report as provided to Quay Law This property report has been provided to the property law team at Quay Law by Rob Ashton. Dear Valued Rob Report Subscriber,  Please find attached a copy of The Rob Report for Remuera & Parnell (October 2010 Issue).   Click on link for copy of the Auckland Property report covering the suburbs of Parnell and Remuera:    The Rob Report Property Information October 2010 Remuera & Parnell Over recent weeks I have received an increase in inquiry from both private buyers and property developers who are looking to purchase single unit sections and 2 unit development sites preferably located in the Eastern Suburbs but ideally in the Grammar Zone. If you can help, please do not hesitate to give me a call.  As always, if you are thinking of buying or selling, I would appreciate the opportunity to be of assistance.  Have a great month.  Regards   Robert Ashton AREINZ BE (Structural) Residential Sales Specialist View my current listings and profile online at: www.robertashton.bayleys.co.nz Excerpt: This property report has been provided to the property law team at Quay Law by Rob Ashton. ### Family Trusts Explained  Legal article by Ian Mellet (Auckland lawyer and principal of Quay Law Barrister and Solicitor) In this article I intend to cover Family Trusts and the value that such an entity can provide to you. At the outset, it should be borne in mind that the reasons for implementing a trust structure are extremely important. Your family circumstances clearly play a pivotal role in this regard. Outlined below are a number of reasons why implementing a trust structure could possibly be of benefit to you and your family: 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). Protection from business creditors (separation of core family assets such as the family home from business risks). Protection of particular beneficiaries (example, children with special needs, educational trusts). Protection from matrimonial property claims and de facto claims. Protection against possible income tax consequences and future taxes. Protection against the likely consequences of inflation. Incidental benefits in relation to means testing and rest home subsidies. Background The prime purpose of the trust would be to protect core family assets which you have built up for the benefit of your children and grandchildren, but at the same time ensuring that you have the use and access to trust funds during your lifetime without interference from others. The primary concern of the trust would, in the interim, be your well being, but in due course you may provide for your children and grandchildren who ultimately will have the control and benefit of the trust fund. Transferring any assets at this stage would be prudent in the sense that you can cap the value, and any increase in value of the assets after the date of transfer to the trust would be an increase in the hands of the trustees. This is particularly pertinent in the event of the re-introduction of estate duty at some later stage. When acquiring an asset such as a property, it is important that you make provision for the trust to purchase the property at the onset. You are able to do this by stipulating that the property is to be purchased by yourself “and / or nominee” This will allow you to set up a family trust or other legal vehicle and for that entity to complete the purchase. You should also consult with your professional advisors regarding the structuring of any borrowing that is required. It is important that the administration of the trust is properly attended to. This includes performing the annual gifting programme wherein yearly gifts of $27,000 each are filed with the Inland Revenue Department. Keeping an adequate “paper trail” will ensure that the trust records are up to date for any audit purposes. Legal documents Various legal documents need to be put in place when establishing a trust, including of course the Trust Deed. There are three main groups of parties involved. The Settlors are the persons who set up and transfer assets to the trust. The Trustees are the people who hold the legal ownership of the trust assets on behalf of the beneficiaries. The Beneficiaries hold the beneficial ownership in the trust assets and include, amongst others, yourselves, your children and grandchildren. I also recommend that a Memorandum of Wishes is completed. This is not binding on the trustees, but sets out the manner in which you would like the trust to be administered and is a valuable guide for the trustees. It is an effective way of ensuring that on your deaths specific requests that you had in mind may be given effect to by the trustees. 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. This Auckland law firm 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:  New Zealand (09) 523-2408 Excerpt: Legal article by Ian Mellet (Auckland lawyer and principal of Quay Law Barrister and Solicitor) ### Auckland law firm, Quay Law embracing new technology Auckland law firm, Quay Law embracing new technology / social media applications. Trialing the Hootsuite software. http://ow.ly/i/56EE Excerpt: Auckland law firm, Quay Law embracing new technology / social media applications. Trialing the Hootsuite software. ### New Business Networking Forum It was all about popping champagne corks amongst the African Art that launched a new Business Networking opportunity on Wednesday night, 27th October 2010.  The delightful venue was Rita Haagner’s new brain child, “Afrodizzia,” a brand new gallery of African artifacts, figurines and furniture at 2 York Street, Parnell, Auckland. Kind sponsor and convener of the meeting was Remuera lawyer, Ian Mellett of Auckand law firm Quay Law.  Ian gave an incredible display of his good memory as he personally introduced all of the attendees one by one; by their full names, occupations and the names of their employers.  Well done, Ian!  The purpose of the meeting is to create a supportive business network across Auckland.  We look forward to the next business gathering on 24 November 2010. Excerpt: It was all about popping champagne corks amongst the African Art that launched a new Business Networking opportunity on Wednesday night, 27th October 2010. ### IMMIGRATION ACT 2009: SUMMARY OF KEY CHANGES Source: newzealand.govt.nz  Immigration New Zealand. The Immigration Act 2009 comes into effect from 29 November 2010.  Until then the Immigration Act 1987 applies.   People who hold a visa or permit, or have applied for a visa or permit, do not need to reapply. The new Act modernises New Zealand's immigration laws. However, it does not make major changes to the criteria under which people apply to travel to and stay in New Zealand. Key changes are outlined as follows: TERMINOLOGY CHANGES The new Act uses the single term 'visa' for authority to travel to and stay in New Zealand. The terms 'permit' and 'exemption' will no longer be used. Immigration 'policy' will be known as immigration 'instructions'. This will more clearly distinguish the difference between high-level government policy and the criteria for determining immigration applications ['instructions'). The terms 'residence permits', 'residence visas' and 'returning resident's visas will be replaced by 'resident visas' and 'permanent resident visas' — but there is no change to existing categories or criteria for people wishing to settle in New Zealand. For more information see the New terminology and concepts factsheet. A NEW SPONSORSHIP SYSTEM Sponsors of people coming to New Zealand will be responsible for all aspects of maintenance, accommodation and repatriation (or deportation) of the sponsored person. More specific criteria for sponsors are also being introduced. For temporary entry visas, this broader obligation will be in place for the whole time the sponsored person is in New Zealand. For resident visas, this obligation will be in place for a specific period. Another change allows organisations (companies, charitable trusts and societies) and government agencies to sponsor individuals in some circumstances. These new categories of sponsors will be eligible to support visitor visas and also work­to-residence and residence-from—work visas under the 'talent' category (arts, culture and sports). For more information see the Sponsorship factsheet. RETURNING RESIDENTS' VISAS Successful residence applicants will generally be granted a 'resident visa' with two years of 'travel conditions'. This will allow: travel to New Zealand (if the holder is offshore); indefinite stay in New Zealand; and multiple re-entry to New Zealand within the validity of the resident visa travel conditions. The term 'returning resident's visa' (RRV) will no longer be used, however, current RRV holders do not need to do anything other than follow the conditions of their current visa or permit. 'Permanent resident visas' will replace indefinite RRVs and will allow the indefinite right to enter New Zealand. The requirements to progress from a 'resident visa' to a 'permanent resident visa' will be similar to the current requirements to progress from a 'non-indefinite RRV' to an 'indefinite RRV'. People who hold 'residence visas', 'residence permits' and 'non- indefinite RRVs' on 29 November 2010 will automatically be deemed to hold 'resident visas' with the appropriate travel conditions. People who hold 'indefinite RRVs' on 29 November 2010 will automatically be deemed to hold 'permanent resident visas' with indefinite rights to enter New Zealand. For more information see the Residence factsheet. 'ENDORSEMENTS' FOR NEW ZEALAND CITIZEN FOREIGN PASSPORTS 'Endorsements' will replace 'returning resident's visas' for New Zealand citizens who wish to travel on a foreign passport. For more information see the Endorsements in foreign passports for New Zealand citizens factsheet. REFUGEES The 2009 Act retains New Zealand's commitment to the United Nations 1951 Convention Relating to the Status of Refugees and the 1967 Protocol Relating to the Status of Refugees. In addition, the Act incorporates New Zealand's immigration- related obligations under the United Nations Convention Against Torture (CAT) and International Covenant on Civil and Political Rights (ICCPR). This means 'protected person' claims under the CAT and ICCPR will be determined alongside refugee status claims. There are also new provisions to manage potential abuses of New Zealand's asylum process. These include declining to consider refugee status claims from people who create grounds for their claim by acting other than in good faith. Individuals may appeal this decision. For more information see the Refugee and protection status determinations factsheet. STREAMLINING APPEALS The 2009 Act maintains existing appeal rights and sets up one independent body to hear appeals — the Immigration and Protection Tribunal (IPT), which will be administered by the Ministry of Justice. The IPT replaces the current Removal Review Authority, Residence Review Board, Refugee Status Appeals Authority and Deportation Review Tribunal. Where there is more than one ground for appeal, for example, on facts and humanitarian grounds, both grounds must be lodged together. For more information see the Appeals factsheet. A NEW CLASSIFIED INFORMATION SYSTEM WITH SPECIAL SAFEGUARDS Classified information relating to security or criminal conduct will be able to be used in decision making, if agreed by the Minister of Immigration. Special safeguards balance the right of the Government to use all available information in deciding who may travel to, enter and stay in New Zealand, and the rights of foreign nationals. For more information see the Classified information factsheet. STREAMLINING THE DEPORTATION PROCESS The deportation process will be simplified to better balance efficiency with fairness. The terms 'removal' and 'revocation' will no longer be used, and instead, the single term 'deportation' will be used. People who are deported will be prohibited from re-entering New Zealand for two years, five years or permanently, depending on the seriousness of the situation. For more information see the Deportation factsheet. COMPLIANCE, DETENTION AND MONITORING The 2009 Act establishes a flexible approach to monitoring and detaining foreign nationals who are considered to be a threat to the integrity of the immigration system or the security and safety of New Zealand. This includes arrest and detention by police for up to 96 hours and detention under a court-issued 'warrant of commitment' for up to 28 days. The new Act provides immigration officers with powers that could previously only be carried out by Police or Customs officers on behalf of Immigration, for example, to enter and search planes or ships. Where the powers are new for immigration officers, they will be brought into force only when Cabinet is satisfied that the appropriate training and operating instructions have been developed, and that appropriate safeguards are in place. For more information see the Powers of immigration officers factsheet. BIOMETRICS AND INFORMATION SHARING The Act also allows foreign nationals' (not New Zealand citizens') personal information, including biometric information, to be shared with some other agencies nationally and internationally to address immigration and identity fraud; and manage the safety and security of New Zealand. In addition, foreign national's personal information can be shared with other New Zealand agencies to check eligibility for publicly- funded services (such as health services). The relevant provisions will only come into force once Cabinet is satisfied that robust procedures and processes are in place and that there is appropriate protection for individuals, consistent with the Privacy Act 1993. For more information see the Collection, storage and use of biometric information factsheet. EMPLOYER OBLIGATIONS The 2009 Act narrows the 'reasonable excuse' defence for employing a foreign national not entitled to work in New Zealand. Employers will therefore need to check work entitlement more carefully than previously. To help speed up the employment process, the Department of Labour has set up an online system — called VisaView — to allow employers to check a job applicant's entitlement to work and any conditions. The system is designed to be quick and easy to use, and to protect individual privacy. For more information see the Employer obligations factsheet and VisaView pages on the Immigration New Zealand website. EDUCATION The 2009 Act increases penalties against education providers who fail to comply with their immigration obligations. However, providers of compulsory education will not be prosecuted for enrolling a child who is unlawfully in New Zealand. For more information see the Education provisions factsheet. AIRLINES The 2009 Act will create an infringement system for airlines that fail to meet their immigration obligations. This will be similar to the Australian system, where airline compliance has increased. This provision is due to come into effect at a later date. INTERIM VISAS The 2009 Act will introduce a new 'interim visa'. These may be granted if a foreign national has applied for a further temporary visa. This will maintain the individual's lawful status in New Zealand while his or her application is being considered. This provision is due to come into effect in early 2011. The 2009 Act enables specific biometric information to be collected, stored and used — for example, photographs, fingerprints and iris scans — to verify a foreign national's identity. Updated October 2010 DISCLAIMER Every care has been taken to ensure the information in this factsheet is accurate. While the use of the information in this factsheet may assist you in your application, applications will be assessed by Immigration New Zealand according to the requirements of the Immigration Act 2009. Excerpt: The Immigration Act 2009 comes into effect from 29 November 2010. Until then the Immigration Act 1987 applies. ### Fewer immigrants coming to work in NZ Source: Radio New Zealand News - 24 October 2010 The shaky financial situation is seeing immigrants squeezed out of the New Zealand labour market. Some 7000 fewer work permits were approved in the year to the end of June, compared with the previous year. New Zealand depends on immigration to maintain its population and to fill skill shortages. However, with unemployment at 6.8%, the Immigration Department says jobs for New Zealanders must be the priority. Immigration's policy is to decline to renew temporary work permits if there are New Zealanders out of work who could do the job. The department says it believes the flow of immigrants coming to work here will revive when the economy picks up. It says the annual target of having 45,000 - 50,000 people coming to settle here permanently is still being met. But Auckland University economics Professor Sholeh Maani says a reduction in immigration decreases growth. In Auckland, 40% of the population are from overseas and overall, 25% of New Zealand's workforce is foreign born. Copyright © 2010, Radio New Zealand Excerpt: The shaky financial situation is seeing immigrants squeezed out of the New Zealand labour market. ### Immigration NZ moves to reduce chance of corruption Source: NZ Herald   Reporter Lincoln Tan 25 October 2010 In a bid to reduce risk of internal corruption, Immigration New Zealand will stop accepting cash as a method of payment from late next month. More than 30 staff at the agency have been investigated for misconduct, including fraud and corruption this year and at least seven officials have been sacked. The service said all branches in this country and most overseas would no longer accept cash from November 29. "Many of our offshore branches are already cashless and this approach is being extended because it reduces the security risks for staff and saves time in cash handling and payment processing," said head of immigration Nigel Bickle. Only branches in Beijing, Shanghai, Dubai, Jakarta and Moscow would continue to accept cash because they did not have alternatives, he said. "To ensure customers have choices in how they pay fees, only branches with two or more payment alternatives will be eliminating cash as a method of payment." Immigration New Zealand says the shift is enabled by regulations under the Immigration Act 2009. Agnes Granada, of Migrant Action Trust, says paying by cash is the method of choice for most migrants and turning cashless shows the agency is not in tune with its customers. "We cannot assume that all migrants are rich and carry credit cards. There are those who are only familiar with dealing in cash, especially those living in some Asian countries, and this will just make it more difficult for them to make their payments," said Ms Granada. "I cannot believe that the New Zealand dollar, which should be legal tender in New Zealand, will not be legal tender at Immigration New Zealand." An immigration adviser, whose clients are mainly from India, did not believe going cashless would eradicate corruption in places such as New Delhi. "There is a culture of corruption everywhere in India, and corrupt officials will continue to demand getting paid through other means," said the adviser, who did not want to be named. But Ming Tiang, a licensed immigration adviser who runs Chiwi Immigration Services, said the change would make it easier for agents. "Currently, some of our clients are giving us bundles of cash to take to Immigration," he said. "It takes time to count the money, and paying by cashless methods such as credit card will mean a little less work for us." Meanwhile, the Government has said it will refund money to Samoan nationals who were overcharged for residency applications because of an administration glitch. Immigration had identified 741 Samoan applicants who did not get a $90 fee discount they were entitled to because of an administrative error, which had been corrected. So far 157 have responded and 145 have been refunded. Excerpt: In a bid to reduce risk of internal corruption, Immigration New Zealand will stop accepting cash as a method of payment from late next month. ### Immigration officers to get beefed-up search powers Source: NZ herald By: Lincoln Tan Immigration officers are to be given greater powers of search and investigation without reliance on police under new laws coming in next month. Officers will be able to investigate and act against offenders without the need to rely on Customs or police under the Immigration Act. They will be able to enter and search places and crafts, inspecting records of educational providers, accommodation providers, employers and even buildings and premises of people liable for deportation. The new act comes into effect on November 29 and, subject to Cabinet approval, officers working for Immigration New Zealand will be given new powers. "The amendments will allow immigration officers to carry out routine immigration-related investigations and functions without relying on resources from our partner agencies," said Nigel Bickle, head of Immigration. Under the current law, these powers are exercised by police or Customs on behalf of the department. "The powers are carefully prescribed to be used in specific circumstances," Mr Bickle said. The new powers restrict officers to enter and search in immigration-controlled areas such as airports, not private homes, and where they enter premises where a person who is liable for deportation is believed to be, it will be only for the specific functions related to deportation, he said. In the 12 months to September 30, the agency deported 687 overstayers - costing taxpayers nearly $1.7 million - with people from Samoa, Fiji and Tonga making up nearly half of those repatriated. A new detention and monitoring system will be introduced under the act, allowing Immigration officials to choose from a range of options, including putting people into secure detention or releasing offenders with reporting conditions. "The act establishes a flexible approach to monitoring and detaining foreign nationals who are considered to be a threat to the integrity of the immigration system or the security and safety of New Zealand," Mr Bickle said. "The new system brings us into the era of the modern regulatory framework, which allows us to choose between a range of options based on risk, rather than a one-size-fits-all." People who are liable for arrest and detention may be monitored in the community or detained in custody. Determining factors include the possibility of a person absconding, criminality, risk to public safety and identity concerns. The new powers will only be brought into force when Cabinet is satisfied that the appropriate training and operating instructions have been developed, and that there are safeguards in place. Said Mr Bickle: "No date has been determined yet." Under the new act, people facing deportation may be detained in police custody without warrant for up to 96 hours, compared with up to 24 or 72 hours depending on circumstances under the current act. Warrants of commitment may also be granted by the District Court to hold a person liable to arrest or detention in custody for up to 28 days, and a person may also be held under warrant for a continuous period for up to six months following the completion of relevant immigration processes. "Specially-designated Immigration officers will be able to detain people for a maximum of four hours. This new power will be brought into effect by order in council," Mr Bickle said. HANDLING IMMIGRATION OFFENDERS (Awaiting Cabinet approval) * Immigration offenders face secure detention or reporting conditions. * Immigration officers can enter and search crafts, schools and buildings. * New act will allow Immigration officers to act independently from police and Customs. DEPORTED Total deported in the last 12 months: 687 people costing $1.68 million * Samoa: 157 people deported at a cost of $385,000 * Fiji: 71 people deported at a cost of $174,000 * China: 70 people deported at a cost of $172,000 * Tonga: 61 people deported at a cost of $150,000 * Malaysia: 51 people deported at a cost of $125,000 * India: 32 people deported at a cost of $78,400 * Great Britain: 28 people deported at a cost of $68,600 * Indonesia: 23 people deported at a cost of $56,350 * South Africa: 18 people deported at a cost of $44,100 * Chile: 15 people deported at a cost of $36,750 Excerpt: Immigration officers are to be given greater powers of search and investigation without reliance on police under new laws coming in next month. ### Business and your lawyer? Why do you need a lawyer and when do you need a lawyer? Selecting a good lawyer is crucial to any successful business.  During the normal day to day operations undertaken by any business or when starting a new business, it is  paramount that there are two professionals essential service providers working with alongside you.  The first is an accountant but the second is your solicitor. Why would you require a lawyer?  Your contracts: You would need your lawyer to understand your business and prepare standard forms / contracts that you would need when dealing with customers, clients and suppliers.   Type of Business entity: You would need a lawyer who could assist you with choosing the most appropriate entity to best suit your specific legal and tax requirements.  This could be a limited liability company, a LAQC to name but a few legal entities.  Your premises: Perhaps you are in the fortunate position of owning commercial space.  If this is not so, your lawyer would assist you with reviewing any contracts pertaining to such a commercial property purchase.  On the other had the leases pertaining to commercial space used for offices or retail can be complex and these leases are usually drafted by the landlord.  Your solicitor can facilitate this process and often point out areas within the contract that you may want to negotiate. Tax, company setup and business registration with the companies’ office. Although your accountant would usually prepare and file your business / personal tax returns each year, your lawyer should know how to register your business, advise you as to the best asset protection and other mechanisms  suited for your affairs and the typical business transactions you undertake.   Establishment of any employee contracts and support during any ongoing items that required attention during the normal course of business.  The team at Auckland law firm, Quay Law hopes that our legal tip has provided you with some helpful ideas.  If you require any further assistance or advice please do not hesitate to contact us.  We understand that your choice of lawyer is an important decision? For more detail regarding our services please view our Quay Law website or to contact us call +64 9 5232408. Excerpt: Selecting a good lawyer is crucial to any successful business. ### $572pw: Auckland's mortgages soar By Anne Gibson Source : NZ Herald Thursday Oct 21, 2010 Homes are at their most affordable in six years - apart from in Auckland, where the average weekly mortgage is now more than $570 a week. The Roost Home Loan Affordability report, issued today, shows Aucklanders need an average 10.4 years to save the 20 per cent deposit needed to buy a home - double the time for someone in Invercargill. The report shows the average weekly mortgage payment on an Auckland house has risen to $572.47. That means an Aucklander would pay 70.5 per cent of the region's average weekly wage - $812.04 take-home pay - on the mortgage for a median-priced Auckland house bought last month. This is up from 70.2 per cent in August. Outside Auckland, affordability is worst in Wellington, Christchurch, Hamilton and Tauranga, the report shows. But everywhere else, tax cuts, cheap money and flat house prices have made housing the most affordable it has been in six years. Nationally, it now takes 58.1 per cent of a median after-tax income to repay a mortgage - the third consecutive drop in as many months and a level last seen in late 2004. Whangarei improved substantially, and Invercargill reclaimed from Timaru the mantle of having the most affordable houses in the country. "Home buyers have the wind at their backs as they head towards summer," said Roost spokeswoman Margaret Smith. "Affordability is back now at levels last seen in late December 2004 - before the boom in house prices - because of improving incomes and lower interest rates." But Bernard Hickey, of interest. co. nz  which issues the Roost report, said Aucklanders were on the edge financially. "You wouldn't want to lose your job or have to take a couple of weeks off work. If you want to buy a house, you're better off getting a job in Wanganui, Invercargill or even Whangarei," he said. "You can buy a house in Auckland, but you can't afford to have a family." Housing affordability slipped on the North Shore and the Auckland isthmus. Prices were up because of the leaky building crisis and the areas' popularity with new migrants. The average weekly mortgage in central Auckland is now $682.12; on the North Shore it is $680.22. Leaky buildings were prevalent in these two areas, meaning prices of non-leaky homes were driven up by the shortage of that type of house, Mr Hickey said. "We've had an entire generation of houses wiped out by leaky buildings and people are completely paranoid about them." An influx of migrants had rejected buying in south and west Auckland, he said. Nationally, the $29-a-week median tax cuts, mortgage interest rates of just over 6 per cent and a national median house price flat at $350,000 combined to improve affordability. The median weekly take-home pay for a typical buyer was $765.75 last month, up 1.2 per cent from the $756.98 in September last year. Five years ago, median weekly take-home pay was $622.24. Despite overall home affordability improving, house sale numbers remain low. Only 4323 housing sales were reported by the Real Estate Institute last month, one of the lowest figures for 10 years. Last month's national median house price was $350,000, unchanged from August and the same as September last year. Five years ago the median was $290,000. Nationally, housing affordability might improve late this year as the tax cuts kick in and house prices flatten or fall. Houses are described as affordable when 30 per cent of an income is needed to repay a mortgage. A typical buyer is assumed to be in the 30-34 age group, and the 25-year mortgage is 80 per cent of the house price, partly floating, partly at fixed interest rates. ANZ Property Focus said the slowing in the economy over the past few months was likely to make buyers more cautious. Although fixed-term mortgage rates had fallen considerably since the start of the year, this did not appear to have had an appreciable effect on the housing market. "Variable rate mortgages are still the best game in town but this may be changing." Excerpt: Homes are at their most affordable in six years – apart from in Auckland, where the average weekly mortgage is now more than $570 a week. ### The Webb Ellis Trophy visits Auckland ahead of the Rugby World Cup 2011 The Webb Ellis Cup, is the main prize of the Rugby World Cup.   The trophy is named after William Web Ellis, who is often credited as the inventor of rugby football. The trophy is silver gilt and has been presented to the winner of the world cup since the first competition in 1987. It has been held by Australia (twice, in 1991 and 1999),and South Africa (twice, in 1995 and 2007) with New Zealand and England each holding the trophy once, in 1987 and 2003 respectively. The illustrious rugby trophy, last won by the All Blacks in 1987, was visiting Auckland on its nationwide tour ahead of next year's World Cup tournament in New Zealand. Ian Mellett and his family got to take a glimps of the silverware ahead of the Rugby World Cup 2011. Excerpt: The Webb Ellis Cup, is the main prize of the Rugby World Cup. The trophy is named after William Web Ellis, who is often credited as the inventor of rugby football. ### Published residential property sales in both Remuera & Parnell as at the 6th October 2010 Thank you Rob for providing a copy of this report to Quay Law Barrister and Solicitor.  We've included this report our legal blog for our client's general information. Dear Valued Rob Report Subscriber,  Please find a link to a copy of The Rob Report for Remuera & Parnell (September 2010 Issue) which summarizes all of the published residential property sales in both Remuera & Parnell as at the  6th October 2010. This report also includes a number of properties which were sold back in July / August but which have only recently been published. LINK    The Rob Report September 2010 Remuera & Parnell  As the current published volume of sales for Sept 2010 is only 26 compared with 68 during Sept 2009, we expect over the next few weeks further sales data will be released / published.  As expected, in recent weeks we have had a large influx of new properties being listed for sale with most campaigns being programmed to start after the school holidays, so if you are looking to buy a property, over the next few weeks you should see a greater selection of properties being advertised for sale. If you are thinking of selling, historically between now and the second week of December we see a jump in sales activity – the buyers are definitely there. They would just like more houses to choose from.  So if you are thinking of buying or selling in the near future, I would appreciate the opportunity to be of assistance.  Have a great month.  Regards Robert Ashton AREINZ BE (Structural) Residential Sales Specialist Excerpt: Thank you Rob for providing a copy of this report to Quay Law Barrister and Solicitor. ### Quay Law Vehicle provided to Parnell Cricket Club Coach Remuera Law Firm, Quay Law is proud to sponsor the oldest cricket club in New Zealand, Parnell Cricket Club.  The cricket club was established in 1858, affiliated to Auckland Cricket Association in 1884 and, over the years, has produced many outstanding players. As part of this key sponsorship, Quay Law provides a vehicle to the club for use by the club coach, Ian Trott, Jonathan Trott's father. The Quay Law vehicle has been rebranded and the Parnell Cricket committee are very pleased with the signage and ultimate result. Excerpt: Remuera Law Firm, Quay Law is proud to sponsor the oldest cricket club in New Zealand, Parnell Cricket Club. ### Congratulations to Amar Marketing from the team at Auckland law firm, Quay Law LOCAL MARKETING COMPANY SWEEPS UP AUSTRALASIAN AWARDS FOR NEW ZEALAND Press release provided by Amar Marketing Angela, Natalie and Barbara Amar Marketing in Auckland swept up 3 awards at the Australasian Promotional Products Awards (APPA) held in Sydney last month . Each year APPA with over 300 distributor members acknowledges the most creative promotional companies with awards for promotional excellence. Amar Marketing collected the most awards for New Zealand , with entries for successful promotional work with Fuji Xerox NZ and The Eye Institute. Barbara McGrath collected the awards which adds to the success that the company has enjoyed for the last 3 years. Successful three categories, one of which was in the category "Best Australasian Made" with a set of Laser engraved wooden interlocking coasters. The promotion for Fuji Xerox (Ignite) successful in two categories with a Mini Greenhouse, complete with pot, Chilly seeds. Comments from the Judges included 100% creativity from the Promotions company, functional and beautifully designed.  All of the successful entries where 100% NZ made. Amar is the first to thanks their clients for allowing them to submit their work for the awards. A major part of the judging is from clients feedback and the results achieved. Excerpt: Amar Marketing in Auckland swept up 3 awards at the Australasian Promotional Products Awards (APPA) held in Sydney last month . ### Your Will is law - regularly reviewing your Will By Auckland lawyer, Ian Mellett of Quay Law.  Quay Law is situated in Remuera, Auckland, NZ. In this legal article, Ian Mellett of New Zealand Law Firm, Quay Law discusses the importance of regularly reviewing and updating your Will, which is a very important document that formally sets out how your assets are to be dealt with upon your death.  A recent media article has highlighted this aspect as follows:- Will and your intent Don Wilkinson, a police officer tragically slain in September 2008, executed a Will with the Public Trust in 1985, when he was 23 years old.  At that stage his assets comprised two guitars and a second-hand car. It appears that Don Wilkinson was a frugal individual who had remained unmarried and childless and by the time he was killed, his estate had grown to $2 million. His Will effectively bequeathed “the whole of my estate both real and personal” to Ron Wilkinson.  Ron was Don’s adoptive father and the wording contained in the Will has resulted in Ron being the sole beneficiary of the Will leaving Don’s mother, Bev Lawrie, without a penny.  His parents have been separated since 1983. According to the media, Ms Lawrie and other family members and friends say Don Wilkinson and his mother were very close, and he would not have wanted her left with nothing. As Don was killed two years ago his mother is now unable to contest the Will under the Family Protection Act, as potential claimants have 12 months after a Will is probated to bring a claim. Reviewing your Will It is good practice to review your Will on a regular basis.  Life takes its course and situations change.  We have compiled a list indicating some of the situations that could prompt you to alter your Will: The birth of a child The commencing of a relationship The ending of a relationship The death of a family member, executor or beneficiary The changing value in any of your assets The receiving of a large inheritance Moving countries, or The purchase of a home or business. There are certain events that will automatically change your present Will.  Under these circumstances, a revision or renewal of your Will should necessarily be conducted.  These events include Getting married Getting divorced and The birth of a child or adoption of children. Dying intestate We are often asked what happens if a person dies without a Will.  If this situation occurs you are said to have died intestate.  The administration of your estate is then governed by the provisions of the Administration Act 1969 which sets out a statutory regime to be strictly followed.  Your wishes are unfortunately not relevant. What else should you consider? We also recommend that you regularly review your entire estate planning structure.  People are inclined to view estate planning in terms of investments, property, finances and assets.  Yes, it is all of these things but the focus of proper estate planning should be the individuals who will benefit from your efforts and legacy.  This may initially be yourself and your partner but will obviously need to include your children and possibly other loved ones after your death.  Failure to have an appropriate estate planning structure in place can have disastrous consequences for all concerned. We at Auckland law firm, Quay Law recommend that you seek professional legal advice with regard to both your Will and any related estate planning aspects.  Your lawyer can provide you with the requisite advice and guidance to ensure that your affairs are in order and that your wishes can effectively be implemented once you have passed away.  This will give you the certainty and peace of mind that your loved ones are looked after in the manner you intended. Please feel free to contact Ian Mellett (BComm LLB H Dip Tax) at Auckland law firm Quay Law for more information, or if you have any questions regarding your will or estate planning needs visit our law firm website www.quaylaw.co.nz or www.yourwill.co.nz for more information. Excerpt: By Auckland lawyer, Ian Mellett of Quay Law. Quay Law is situated in Remuera, Auckland, NZ. ### The legal team at Auckland law firm, Quay Law congratulates Irene Van Dyk Picture Source: NZ Herald Source: NZ Herald Irene Van Dyk shed a tear when she was asked to perform the New Zealand flag bearing duties at the Commonwealth Games. New Zealand chef de mission popped the question to the veteran netballer earlier this week. "She was genuinely overwhelmed," he said. "She shed a couple of tears. It was an honour to offer her the role." Van Dyk will lead about 150 New Zealand athletes in the opening ceremony here on October 3. Several are yet to make it to Delhi, including stars Val Adams and Nick Willis. Their decision not to arrive in Indian earlier meant they were not considered to perform the task. Currie said the former South African was chosen because of her stellar record at the games. She provided the seminal moment of the last event in Melbourne tossing the ball high into the air in celebration after the Silver Ferns won gold. The decision also acknowledged the contribution and impact netball has played in rejuvenating the games. The sport was first introduced in 1998. Since then it has become one of the most prestigious and eagerly awaited medal race. The news was broken to her games team-mates at a Kiwi team function where they were officially welcomed into the village in the early hours of this morning. It was a poignant and moving ceremony. Currie and his team had tried to evoke the character and spirit of Tenzing Norqay and Sir Edmund Hillary while here in Indian. The New Zealand village has a huge banner that drops from its anchor point 12 floors down with a quote from Sir Ed and Mt Everest in the background. Sir Ed’s son Peter and Norqay’s son Jamling were both on hand at the presentation ceremony to speak to the team about their famous fathers. Currie presented Hillary, Norqay and Van Dyk with a pendant carved from greenstone. Van Dyk will play her 100th test at the Commonwealth Games for the Silver Ferns. She is the most capped test netballer. She represented South Africa 72 times before she was wooed to Wellington in 2000. She gained her citizenship in 2005 but had been embraced by Kiwis thanks to her bubbly effervescent personality well before then winning New Zealand Sportswoman of the Year in 2003. Van Dyk continues to live in Wellington where she was a school teacher but now plays professionally for the Waikato Bay of Plenty Magic team in the trans Tasman netball league. Triathlete Hamish Carter carried the flag at the last Games in Melbourne. Shooter Greg Yelavich carried it in the closing ceremony. Excerpt: Irene Van Dyk shed a tear when she was asked to perform the New Zealand flag bearing duties at the Commonwealth Games. ### Most new migrants want to be New Zealand citizens Image via Wikipedia  Most new migrants want to be New Zealand citizens Monday, 27 September 2010 Source Press Release: Statistics New Zealand The latest results from the Longitudinal Immigration Survey: New Zealand (LisNZ) show that 78.4 percent of new migrants had gained or intended to apply for New Zealand citizenship three years after being granted permanent residence, Statistics New Zealand said today. Migrants from South Africa (93.3 percent), the Pacific (93.0 percent), and South Asia (86.5 percent) were more likely to have gained, or want to apply for, New Zealand citizenship than migrants from other regions. The LisNZ is a longitudinal survey of immigrants developed by the Department of Labour in partnership with Statistics New Zealand who carried out the survey. The LisNZ involves interviews with the same group of migrants at 6 months (wave 1), 18 months (wave 2), and 36 months (wave 3) after taking up permanent residence. The main objective of the LisNZ is to inform immigration policies and assist with developing settlement services. Employment At wave 3 of the LisNZ: • more than seven out of ten (75.7 percent) migrants were employed, compared with 72.1 percent at wave 1 • 69.8 percent of employed migrants worked in a skilled job, which is similar to the proportion at wave 1 (67.8 percent) • 84.9 percent of employed migrants were either satisfied or very satisfied with their jobs, compared with 80.8 percent at wave 1. Income and home ownership Key results for income and home ownership are: • real median hourly wages of employed migrants increased from $20.35 at wave 1 to $23.49 at wave 3 • 70.6 percent of migrants had enough or more than enough money to meet their everyday needs at both waves 1 and 3 • 51.9 percent of migrants owned or partly owned their dwelling at wave 3, compared with 30.6 percent at wave 1 • 49.3 percent of migrants lived in the Auckland region, 31.5 percent lived in the rest of the North Island, and 19.3 percent lived in the South Island at wave 3. 2 Satisfaction with life in New Zealand More than nine out of ten migrants were either satisfied or very satisfied with life in New Zealand (93.8 percent at wave 1 and 92.3 percent at wave 3), although there was a decrease in the proportion of migrants who were very satisfied from 44.7 percent at wave 1 to 35.5 percent at wave 3. Perception of safety in New Zealand Migrants’ perception of safety in New Zealand decreased from wave 1 to wave 3. When asked how safe or unsafe they felt (thinking only about crime in New Zealand), 76.0 percent of migrants felt either safe or very safe in New Zealand at wave 3, compared with 85.5 percent at wave 1. Excerpt: Most new migrants want to be New Zealand citizens ### NO WILL or IS YOUR CURRENT WILL OUT OF DATE? Your Will is Law   NO WILL or IS YOUR CURRENT WILL OUT OF DATE? Legal tip of the week provided by Auckland Lawyer, Ian Mellett.  Ian is the principal of Quay Law Barrister and Solicitors.  Quay Law is located in Remuera, Auckland.  NO WILL Dying intestate can be costly. If you die without a will or your will is deemed to be invalid, then you are said to have died intestate. In this event, administration of your estate is entirely determined by legislation and not you. Your wishes are not relevant. IS YOUR CURRENT WILL OUT OF DATE? We recommend that you review your Will regularly. By way of example. Some wills include specific bequests to particular heirs e.g. my house (address) to “A” and my shares (company name) to “B”. Do you still own that house at that address and those shares in that company? Please find below a recent article as published in the New Zealand Herald Source: NZ Herald Reporter Rachel Tiffen A bitter dispute has developed over the will and $2 million fortune of slain undercover police officer Don Wilkinson. His adoptive father, Ron Wilkinson, has been left everything - leaving his mother, Bev Lawrie, without a penny. The parents have been separated since 1983. In a North & South magazine article published today, Ms Lawrie and other family members and friends say Don Wilkinson and his mother were close, and he would not have wanted her left with nothing. Don Wilkinson wrote his will at a Public Trust office in Christchurch in September 1985, when he was 23, before going to work in Antarctica. Then, his assets were two guitars and a second-hand car. Two simple lines bequeathed "the whole of my estate both real and personal" to Ronald Charles Wilkinson. But Don Wilkinson was a frugal, single man with no children, and by the time he was killed, his estate had grown to $2 million. This included his $900,000 property at Helensville, north-west of Auckland, $70,000 in cash, some investments and a six-figure payment from police insurance and superannuation. Lawyers say nothing can be done now. Under the Family Protection Act, potential claimants have 12 months after a will is probated to bring a claim. But Ms Lawrie said she spent the year after her son's death trying to survive - mourning him, weathering publicity and dealing with the killer's arrest. Don Wilkinson was killed two years ago when he was chased and shot down bysuspected P dealer John Skinner in Mangere East. Mr Wilkinson had been trying to attach a tracking device to Skinner's vehicle. Skinner was jailed for at least 15 years for murder; his friend Iain Clegg received a minimum four years for manslaughter. Ron Wilkinson told North & South his adopted son made a choice. "Don was a 47-year-old police officer, not a 15-year-old handicapped child. He left a will and it was adhered to." He has reportedly refused to respond to a lawyer's request or the family's plea for mediation. Yesterday, Ms Lawrie said it was an insult to her son's memory. "Don would be horrified, he'd just be absolutely horrified," she said. "It [the will] was just slapdash because he was off on a big adventure ..." She said efforts to talk to her ex-husband had fallen on deaf ears. "If it had been me, I'd have given him half of whatever." Ms Lawrie, 69, owns a freehold home in Oamaru, surviving on a pension and the odd day relief teaching. She hasn't paid her rates since her son's death - she says he always paid them. Ms Lawrie said her son's friends text and phone her often, affectionately calling her "Ma Bev". "They have been absolutely wonderful," she said. "I get a text saying 'Hi Ma Bev how are you?"..."   Excerpt: Legal tip of the week provided by Auckland Lawyer, Ian Mellett. Ian is the principal of Quay Law Barrister and Solicitors. Quay Law is located in Remuera, Auckland. ### Property Report for Remuera & Parnell (August 2010) As supplied to the property lawyers at Quay Law by Rob Ashton (Bayleys, Remeura) Dear Valued Rob Report Subscriber,  Please find attached a copy of The Rob Report for Remuera & Parnell (August 2010 Issue). This report features all the published residential property sales for the month of August (as at 5th September 2010) in both Remuera & Parnell. Click on link for detailed The Rob Report - August 2010 Remuera & Parnell (compiled by Rob Ashton)  Historically, during the upcoming spring months the volume of residential property sales increases so if in the near future you are thinking of selling your home I would appreciate the opportunity to meet with you and present to you a cost effective marketing proposal which I am confident will help increase your chances of achieving a premium price.  Have a great month.  Regards  Robert Ashton AREINZ BE (Structural) Residential Sales Specialist Excerpt: Please find attached a copy of The Rob Report for Remuera & Parnell (August 2010 Issue). ### Changes to Immediate Skill Shortage List and Long Term Skill Shortage List Source: infonew.co.nz 1 September 2010, 2:09PM By Department of Labour The bi-annual review of the Immediate Skill Shortage List (ISSL) and the Long Term Skill Shortage List (LTSSL), administered by the Department of Labour, has been completed. The ISSL includes occupations that are in immediate demand in the New Zealand labour market. The LTSSL includes occupations that are in long term and global shortage. Two occupations, Scaffolders and Automotive Technicians will be added to the ISSL, and three occupations, Ship’s Master, Ship’s Officer and Forest Scientist to the LTSSL. Thirteen occupations mostly in the building, design and racing industries will be removed from the ISSL. One occupation, Architect, will be removed from the LTSSL. In addition, four occupations will be removed from the ISSL as they are already covered in the LTSSL. Some requirements will be updated. The ISSL and LTSSL will be released on 8 September 2010. The removal of the occupations from the lists is the result of an extensive consultation with industry groups, other stakeholders and relevant government agencies. Employers can still recruit migrants in occupations that have been removed from the lists. The employer will need to demonstrate genuine attempts to recruit suitable New Zealand citizens or residents. Temporary work visas or permits can be granted after there is evidence that there are no suitable New Zealanders available. Immigration New Zealand works with a number of agencies when reviewing the labour market to help identify areas of immediate and long-term skill shortage. This is to ensure that the lists reflect genuine skill shortage so New Zealanders are not disadvantaged while at the same time making sure employers get the skilled employees they need to take advantage of improvements in the economy. Head of Immigration New Zealand, Nigel Bickle says “For occupations no longer on the LTSSL and ISSL the labour market test process, where agencies such as Work and Income are involved, ensures that New Zealanders are not disadvantaged if seeking employment before an employer recruits a migrant worker. However, New Zealand still has skill shortages in certain areas and jobs may need to be filled by people from overseas.” Mr Bickle says there will be ongoing review of all occupations on the list which will ensure flexibility in times of both shortage and economic growth. Immediate Skill Shortage List (ISSL) Thirteen occupations to be removed from the ISSL on 8 September 2010: • Architectural Designer • Architectural Draughtsperson (Civil CAD Designer) • Architectural Draughtsperson • Graphic Artist • Fire Alarm Technician • Florist (Senior) • Gas Fitter • Vehicle Body Builder (Bus or Coach only) • Horse Trainer (Stallion Master) • Horse Trainer (Stud Groom) • Jockey • Trackwork Rider • Telecommunications Technician Two occupations to be added to the ISSL: • Automotive Technician (Motor Mechanic) • Scaffolder (Advanced) Four occupations to be moved from the ISSL to the LTSSL: • Conductor (Conductive Education Practitioner) • Construction Project Manager (Chip sealing, Asphalt or other Technical Manager) (Roading and Infrastructure) • Construction Project Manager (Roading and Infrastructure) • Ship’s Engineer Four occupations to be removed from the ISSL as covered by the LTSSL: • Marine Designer • Systems Analyst • Software Engineer • ICT Support and Test Engineer Long Term Skill Shortage List (LTSSL) One occupation to be removed from the LTSSL on 8 September 2010: • Architect Three occupations to be added to the LTSSL: • Ship’s Officer • Ship’s Master • Forest Scientist Four occupations to be moved to the LTSSL from the ISSL: • Conductor (Conductive Education Practitioner) • Construction Project Manager (Chip sealing, Asphalt or other Technical Manager) (Roading and Infrastructure) • Construction Project Manager (Roading and Infrastructure) • Ship’s Engineer Excerpt: The bi-annual review of the Immediate Skill Shortage List (ISSL) and the Long Term Skill Shortage List (LTSSL), administered by the Department of Labour, has been completed. ### Interim Visas for Foreign Migrants in New Zealand! source: nzherald.co.nz  25 August 2010 New interim visas will allow migrants waiting for their visas to be processed to continue working, Immigration Minister Jonathan Coleman says. It was a bonus for businesses and employees, Dr Coleman said. "In most circumstances it provides continuity in the workplace as employers have the security of knowing their staff member can continue working legally while Immigration New Zealand processes their application." The interim visas will be in place by March. Changes to the sponsorship provisions will allow organisations and government departments to sponsor someone's visa where previously only individuals could. - NZPA Excerpt: New interim visas will allow migrants waiting for their visas to be processed to continue working, Immigration Minister Jonathan Coleman says. ### A Modern Art Gallery opens in Auckland Ian Mellett and the team at Auckland law firm, Quay Law would like to congratulate Rita Haagner on the opening of her stunning art gallery, Afrodizzia, in Parnell, Auckland.  This beautiful exhibition of tribal art includes contemporary game skin  furniture, rugs, glass and pewter work by Diana Carmichael and ceramics by Porcupine.   Rita, your knowledge of the history or story behind each piece of art work is exceptional.   Congratulations. Excerpt: Ian Mellett and the team at Auckland law firm, Quay Law would like to congratulate Rita Haagner on the opening of her stunning art gallery, Afrodizzia, in Parnell, Auckland. ### Property Report - Orakei, Mission Bay, Kohi, St Heliers, Glendowie Image via Wikipedia This local property report has been provided to the Property lawyers at Quay Law by Robert Ashton (Bayleys Real Estate).  Dear Valued Rob Report Subscriber, Please click on link for latest property report : The Rob Report May-Jun-July 2010 Eastern Suburbs Report Please be advised that I now have available the May, June, July 2010 Quarterly Issue of the Rob Report for Orakei, Mission Bay, Kohimarama, St Heliers & Glendowie. (Price Range: $800,000+) If you would like me to forward you a copy of this and future issues for these Eastern Suburbs, please advise. Regards Robert Ashton AREINZ BE (Structural) Residential Sales Specialist, Bayleys Real Estate Ltd Excerpt: This local property report has been provided to the Property lawyers at Quay Law by Robert Ashton (Bayleys Real Estate). ### Immigrant fingerprints checks introduced between Oz and New Zealand as part of fraud drive that will be extended to other countries Media Release Source: www.dol.govt.nz  (Department of Labour) 16 August 2010  Immigration New Zealand (INZ) has begun fingerprint checks with Australia as part of a biometric programme to strengthen border security and prevent identity fraud. The programme will expand to include checks with the United Kingdom, Canada and the United States under the umbrella of the Five Country Conference (FCC), which has developed a system for securely – and with substantial privacy safeguards - matching fingerprint biometrics of persons of interest. Fingerprints of FCC citizens will not be shared. The system will help INZ combat fraud and strengthen border security by helping identify, early in the immigration process, people with criminal histories or those using false identities. “Organised crime groups and illegal migrants are increasingly using identity and passport fraud to evade detection,” says Arron Baker, INZ’s Programme Manager for Identity and Biometrics. “Biometrics uses technology to improve on traditional checks using names to detect and prevent these people from entering New Zealand. It is a fast, effective and privacy protecting way of quickly facilitating genuine clients while filtering out those who pose risks to New Zealand.” INZ signed a Memorandum of Understanding (MOU) with the Australian Department of Immigration and Citizenship on 30 June 2010, and is now completing similar agreements with the UK, Canada and the US. The Department of Labour completed a Privacy Impact Assessment of the system in close consultation with the Office of the Privacy Commissioner. This is available to the public at http://www.immigration.govt.nz.  ENDS  QUESTIONS AND ANSWERS: Q1. What is the Five Country Conference? The Five Country Conference (‘FCC’) is a forum for immigration and border security – involving Canada, Australia, the United Kingdom (U.K), the United States (U.S) and New Zealand. Q2. What is biometric identification? A. Biometric identification is the confirmation of people’s identity by comparing unique physical features such as fingerprints, photograph, iris scan, etc. with a previously obtained image.  Q3. How do you know the exchange with foreign countries will be secure? A. The Five Country Conference has developed a system which ensures the information exchange is very secure. The system has been subject to rigorous security accreditation by each country. Also, information shared may only be supplied in accordance with the member’s immigration and privacy laws, as well as international arrangements signed by the parties. Q4. Will you be sharing any biometrics of Five Country Conference national citizens? A. No. Fingerprints of citizens of the FCC will not be shared as part of these identity checks.  The only time FCC citizens information may be relevant is if someone conceals their true identify as an FCC citizen when dealing with an FCC immigration agency. Q5. FCC data sharing will involve the exchange of both biometric and biographic data. What kind of biographic data will be shared? A. There is no biographic information (names, birthdates etc) shared when an identity is checked. Only the fingerprint data is provided to make a check. Privacy experts regard this approach as an innovative way to protect people’s identity. Only when a fingerprint match is made will biographic data be exchanged to confirm if identity fraud has occurred.  Q6. How do you know there will not be security breaches to the data sharing system? A. Security of data and privacy are of paramount importance to all countries in the FCC. All data exchanged is very strongly encrypted. Thorough security assessments of the system have been completed by a number of government security experts and agencies.  Q7. Under these information sharing arrangements, will the FCC countries be able to remove or deport individuals who have committed an immigration or criminal offence? A. Yes. Information that is shared under the exchange programme can support prosecution and/or deportation of individuals.  It will also be used to prevent the entry of known persons of concern — including those who have committed an immigration or criminal offence. Excerpt: Immigration New Zealand (INZ) has begun fingerprint checks with Australia as part of a biometric programme to strengthen border security and prevent identity fraud. ### Buying a section of land for your new home or investment property. Prior to signing a Sale and Purchase agreement pertaining to a section of land, Quay Law recommends that you insert, as a condition in the agreement, the obtaining of a satisfactory geotechnical report.  In the normal course of events, a geotechnical report may be required before you build your home.  This contractual condition could help mitigate against any additional costs that you would be unaware of at this early stage in the process including earthworks, retaining walls or foundations which may be required on your chosen site. For more information on your Agreement for Sale and Purchase, please contact an Auckland lawyer at Quay Law Barristers and Solicitors. Excerpt: Prior to signing a Sale and Purchase agreement pertaining to a section of land, Quay Law recommends that you insert, as a condition in the agreement ### Don Brash attends social in Remuera Source: The South African Magazine website Photographer: Luci Harrison Dr Don Brash, Normal Vas and Auckland lawyer, Ian Mellett Thanks to Ian Mellett of Auckland law firm, Quay Law this South African Social club is now a reality! The first meeting took place on 30th July 2010 and with 120 people in attendance, the event was an outstanding success. Dr Don Brash provided an enlighted view New Zealand’s 2025 vision.  Dr Brash is a former New Zealand politician, was Leader of the Opposition and parliamentary leader of the National Party from 28 October 2003 to 27 November 2006. Before entering politics, Brash was Governor of the Reserve Bank of New Zealand for 14 years. This social is scheduled to become a regular event. Excerpt: Thanks to Ian Mellett of Auckland law firm, Quay Law this South African Social club is now a reality! ### Auckland Law Firm sponsors of the Auction of Promises, held on March 19th 2010 Victoria Avenue School are very thankful to all our sponsors for the support they are giving us for our major fundraiser this year  - The Auction of Promises.   Please be generous in your support of these sponsors. See link for detail on Sponsorship Excerpt: Victoria Avenue School are very thankful to all our sponsors for the support they are giving us for our major fundraiser this year – The Auction of Promises. ### Amendment eases enduring power of attorney Press Release: New Zealand Government John Carter 22 July, 2010 Amendment eases enduring power of attorney A change to the enduring power of attorney law finds the balance between protecting rights and dealing with the real-life situations of older people, Senior Citizens Minister John Carter said today. "Protecting the rights and interests of older people is one of my key priorities," Mr Carter said. "So I am happy with the recent amendment to the Protection of Personal and Property Rights Act 1988 that makes it easier for two people to appoint each other their enduring power of attorney. "This technical amendment addresses an issue that was brought to my attention as a problem, especially for older couples. "These couples and other mutual appointees can now seek advice and use independent witnesses from the same law firm or trustee corporation. "Prior to this amendment, each person had to go to a separate law firm or trustee corporation. Many couples had a trusted law firm and were unhappy with this. "It presented a problem for couples living outside cities in particular, those accessing services in smaller towns that may have only one law firm. That situation left one person having to travel, sometimes considerable distance, to consult someone they didn't know and didn't necessarily feel comfortable with. "This small amendment provides the essential balance between protecting older people's rights and the reality of dealing with people in real-life situations." The amendment was effective from 7 July 2010. A full review of the Protection of Personal and Property Rights Act 1988 is set for 2013. Excerpt: A change to the enduring power of attorney law finds the balance between protecting rights and dealing with the real-life situations of older people, Senior Citizens Minister John Carter said today. ### Auckland law firm, Quay Law’s legal tip of the week: LAQC’s and tax changes. The recent budget has delivered the biggest tax changes in New Zealand in the past 25 years, affecting taxpayers across the board and especially those with property assets in LAQC (loss attributing qualifying company) structures.   There is no doubt that treating LAQC’s as “flow through” entities, taxed under a similar regime to limited partnerships, will have a significant impact on all LAQC’s whether they are used for property investment or not.  I recommend that if you have an LAQC, you should consult with your professional advisor sooner rather than later in order to put appropriate strategies in place. Ian Mellett Auckland lawyer, Quay Law (New Zealand) Excerpt: The recent budget has delivered the biggest tax changes in New Zealand in the past 25 years, affecting taxpayers across the board ### Property Report (Remuera & Parnell) - As provided by Rob Ashton Please find below the latest property report as provided to Auckland law firm, Quay law by Rob Ashton. Please click on link:  The Rob Property Report June 2010 Remuera & Parnell Dear Valued Rob Report Subscriber,  Please find attached the latest issue of The Rob Report for Remuera & Parnell – June 2010.  In recent weeks the level of buyer inquiries has increased and it is quite clear that many potential buyers are becoming quite frustrated due to the limited choice of properties currently advertised for sale.  Although the total number of published properties sold during June 2010 is well down on the same period last year, I believe it is not necessarily because there are limited buyers around, but because of the limited choice.  If you are thinking of selling your property, you may like to consider the benefits of selling before the expected ‘spring rush’.  For a FREE, no obligation market appraisal or if you would like to have a general chat in regards to the sale of your home, please do not hesitate to contact me direct on 021 633 398.  I currently have clients who are looking to purchase the following types of properties: (Can you help?)  Price Range: $4M to $5M              Suburbs: Parnell to St Heliers                      Requirements: 4+ brm, 2+ bthrm, Seaviews, No plaster, Not ultra-modern            Land Size: 700m2+ Price Range: Up to $1.5M             Suburbs: Parnell to St Heliers                      Requirements: Townhouse - Newish      Price Range: Up to $2M                 Suburbs: Central Auckland GZ                    Requirements: 4+ brm, 2+ bthrm, Newish house Price Range: Up to $2M                 Suburbs: Central Auckland                           Requirements: Suitable investment property Price Range: Up to $2M                 Suburbs: Epsom                                               Requirements: Close to Newmarket. Modern style. Price Range: Up to $850K              Suburbs: Remuera, Parnell                          Requirements: Well constructed townhouse – no plaster. Price Range: Up to $1M                 Suburbs: Remuera, Parnell                          Requirements: Any Leaky Plaster homes which require reclading. Price Range: $1.6M to $1.8M      Suburbs: Prefer GZ                                         Requirements: 4+ brm, good condition, low maintenance family home Price Range: Up to $2M                 Suburbs: GZ                                                       Requirements: 4 brm, 3 living areas, medium size section, newish condition. Price Range: Up to $450K              Suburbs: Remuera, Epsom                          Requirements: 2-3 brm units, good investment. Have a great month. Regards Robert Ashton AREINZ BE (Structural) Residential Sales Specialist Excerpt: Please find below the latest property report as provided to Auckland law firm, Quay law by Rob Ashton. ### What is residence – and does it allow me to work in NZ? New Zealand residence is  a status that gives you most of the advantages of citizenship, including the right to vote, to enjoy government-paid education and health benefits for you and your family, and to travel and work freely in and out of the country on a permanent basis as long as you hold a resident permit and a returning resident’s visa.  Remember, a permit is what allows you to work in New Zealand, and the visa is what allows you to travel in and out of the country.  The returning resident’s visa is initially granted for two years, and an assessment will be made after two years to issue another that can be either indefinite, for 12 months or for 14 days. Source: newzealandnow.govt.nz Excerpt: New Zealand residence is a status that gives you most of the advantages of citizenship, including the right to vote, to enjoy government-paid education and health benefits for you ### Tri Nations Pictures: New Zealand vs South Africa (Eden Park - July 2010) Eden Park, Auckland, New Zealand New Zealand got their Tri Nations campaign off to a flying start with a comfortable 32-12 win over South Africa. It was an excellent evening and a great game. Bobby Skinstad and Ian Mellett Excerpt: New Zealand got their Tri Nations campaign off to a flying start with a comfortable 32-12 win over South Africa. ### Family Trusts and Trustees A trustee must manage the trust and its assets properly, investing with diligence and prudence.    Choosing the trustees is your most important act when forming your trust.  You should also consider what your trust is likely to own when selecting your trustees.   When approached regarding the role of trustee, you should consider this position carefully as the position of the trustee is not one to be accepted lightly.  For more information regarding family trusts and your potential role as trustee please contact Auckland lawyer, Ian Mellett. Ian Mellett Website: http://www.lawyerinauckland.co.nz Ph: +64 9 5232408 Excerpt: A trustee must manage the trust and its assets properly, investing with diligence and prudence. ### "Solicitor's approval" clause When entering into a property transaction, it is possible for you to insert a "solicitor's approval" clause in the sales and purchase agreement but this has inherent limitations.  It is a lot better to minimise your risk by talking to your lawyer before you sign the contract. For more information regarding your property transaction, please contact one of our property lawyers at Auckland law firm, Quay Law. Excerpt: When entering into a property transaction, it is possible for you to insert a “solicitor’s approval” clause in the sales and purchase agreement but this has inherent limitations. ### Types of Property Ownership QUAY LAW LEGAL UPDATE In this issue, Auckland lawyer Ian Mellett describes his business visit to India and the various forms of property investment available to new immigrants Since my last article in this magazine, I have had the wonderful experience of being involved in a fantastic business trip to India.  It was incredible to be exposed to the social and cultural elements that exist in India on the one hand, contrasted against the might of the Indian economy on the other.  We even managed to squeeze in a visit to the Taj Mahal, one of the seven man-made wonders of the world.  The focus of the trip was “New Zealand Invest 2010” – promoting New Zealand from both an investment and immigration perspective. The delegation included legendary New Zealand cricketer Sir Richard Hadlee, one of the keynote speakers, along with a group of property developers, real estate professionals and an internationally acclaimed property investment speaker.  I was invited to accompany the delegation in the capacity of an independent legal adviser.  During the various seminars, held in Delhi (23-24 January), Ludhiana (28 January) and Chandigarh (30-31 January), seminar attendees were provided with valuable information to enable them to explore lifestyle, investment and business opportunities in New Zealand.   During the numerous break-out sessions, I was called upon to provide expert independent legal advice and assistance to potential investors.  This has subsequently resulted in Quay Law now having quite a few Indian investor clients on its books, and the distinct possibility exists that there will be more to come in the future. It goes without saying that this was a truly memorable and unique experience.  Not only was our entire delegation exposed to the broad spectrum of the Indian economy but being a cricket fanatic myself, I had the added bonus of meeting and spending two weeks with Sir Richard Hadlee.  What a nice guy, and a truly great ambassador for New Zealand. One of the questions frequently raised by the potential Indian investors pertained to the type of property ownership involved.  I find that local purchasers in New Zealand often have the same query, so I thought that it would be useful to set out the most common forms of ownership below. 1) Fee simple: This represents a form of freehold ownership and in essence represents absolute ownership of the property.  2) Leasehold: This is a form of property tenure where one party buys the right to occupy land or a building for a given length of time.  Until the end of the lease period the leaseholder has the right to remain in occupation as an assured tenant paying an agreed rent to the owner.  3) Cross lease: This is a hybrid form of multi-unit tenure in which each owner has an undivided share of the underlying freehold as tenants in common, and is granted a registered leasehold estate of the particular unit or flat occupied.  Effectively the property owners share ownership of the land and each owner leases their building from the other owners, which together form the cross lease title. 4) Stratum estate: Under the Unit Titles Act 1972 the deposit of a unit plan has the effect of creating in each unit (usually multi-unit dwellings, shops, offices or industrial premises) a new kind of statutory estate called a stratum estate in freehold, or a stratum estate in leasehold, depending on whether the land which was subdivided into units was freehold or leasehold. It is essential to determine, upfront, the exact nature of the form of property ownership when embarking upon a purchase of any property.  My experience is that it is beneficial to have your lawyer cast his/her eye over a potential purchase agreement, before you sign the document, to ensure that you fully understand the nature and form of property ownership involved. Please feel free to contact Ian Mellett at Auckland Law Firm, Quay Law for more information, or if you have any questions regarding your conveyancing or other legal needs visit our website www.quaylaw.co.nz for more information. Excerpt: In this issue, Auckland lawyer Ian Mellett describes his business visit to India and the various forms of property investment available to new immigrants ### Making Your Wishes Known (Remuera - Sibuns Funeral Directors) Source : grownups.co.nz Funeral services these days are expected to be a memorable and personal celebration of a person’s life, often with a lot of family participation, says Kaye Shannon, Funeral Director and Manager of Sibuns Funeral Directors and Advisors. Decisions and preparations can become rather stressful for the family if that person hasn’t let them know what they wanted, come the time of their death. People feel reassured and more confident in planning the funeral service if they have a few personal guidelines to work from, Kaye says. “It’s a lot easier when people have thought about and recorded their wishes. Increasingly, people are asking Sibuns to record these as part of their retirement planning. Most people have a reasonable idea as to what they want to happen, but if they haven’t written it down and handed it to their lawyer or a funeral firm, how can they expect anyone else to know?” she says. “People are realising that pre-planning can avoid stress and worry later and can provide peace of mind knowing that many details have already been taken care of. It doesn’t involve any cost or financial commitment – simply ensuring it’s all written down and lodged with Sibuns is all people need to do. “Funeral ceremonies are important for family and friends to remember the good times, funny moments, their favourite music, their unique contributions, and to hear tributes and stories from people of all ages, including children who have been a part of the person’s life.” Kaye, who lives locally and has become involved with local clubs and fundraising ventures, is a highly experienced and popular funeral director, which she attributes to listening to what families want and then ensuring all the details are taken care of on the day. Sibun’s premises are in a gracious old two storey home in Remuera Road and includes private viewing rooms, a small boutique Chapel and offices. The firm was established by Watney Sibun in Newmarket in 1913, moving to Remuera in 1989, when he also purchased CH Barker Funeral Home in Onehunga, formed in the early 1860’s. Sibuns Funeral Directors & Advisors 582 Remuera Road, Remuera, Auckland 1050 Phone -               09 520 3119         09 520 3119 Website - www.sibuns.co.nz Excerpt: Funeral services these days are expected to be a memorable and personal celebration of a person’s life, often with a lot of family participation, says Kaye Shannon, Funeral Director and Manager of Sibuns Funeral Directors and Advisors. ### Kiwi cities rank among world's best Source: nzherald.co.nz By Michael Dickison       Wednesday May 26, 2010 Auckland has the world's fourth-best quality of living, according to a new ranking dominated by European cities. But in another ranking for eco-cities, Wellington beats out Auckland, ranking fifth worldwide. In both categories, New Zealand cities sit at the top of the Asia Pacific, ahead of Australian contenders. The 2010 Mercer Worldwide Quality of Living Survey was released today, ranking cities for overall quality of living based on political, socio-economic and environmental criteria as well as sanitisation, education and transport. The company also compiled a list of top eco-cities. Spokeswoman Georgina Harley said in a statement to media that New Zealand cities had been recognised for having "quality housing close to the city", "political stability" and "transport". Ms Harley also praised New Zealand cities' "wide selection of restaurants". Auckland ranked fourth while Wellington was judged 12th worldwide for quality of living. Among eco-cities, Wellington was fifth while Auckland was deemed 13th. Baghdad, Iraq, was judged to have the worst quality of living among surveyed cities, while Port-au-Prince, Haiti, ranked at the bottom of the eco-city rankings. The rankings are compiled to help businesses determine "hardship" allowances for employees abroad, based on the quality of life of the cities they live in. Mercer senior researcher Slagin Parakatil said cities no longer had to be in near economic powerhouses to attract business. "As the world economy becomes more globalised, cities beyond the traditional financial centres are emerging as attractive places in which to expand or establish a business," Mr Parakatil said. An eco-city optimised its use of renewable energy sources and generated the lowest possible quantity of pollution, he said. Global ranking Quality of life: 1: Vienna, Austria 2: Zurich, Switzerland 3: Geneva, Switzerland 4=: Auckland 4=: Vancouver, Canada 6: Dusseldorf, Germany 7=: Frankfurt, Germany 7=: Munich, Germany 10: Sydney, Australia 11: Copenhagen, Denmark 12: Wellington Eco-city ranking: 1: Calgary, Canada 2: Honolulu, United States 3=: Ottawa, Canada 3=: Helsinki, Finland 5: Wellington 6: Minneapolis, United States 7: Adelaide, Australia 8: Copenhagen, Denmark 9=: Kobe, Japan 9=: Oslo, Norway 9=: Stockholm, Sweden 12: Perth, Australia 13: Auckland Asia Pacific Quality of living: 1: Auckland (4th overall) 2: Sydney (10th) 3: Wellington (12th) 4: Melbourne (18th) 5: Perth (21st) Eco-city ranking: 1: Wellington (5th overall) 2: Adelaide (7th) 3: Kobe (9th) 4: Perth (12th) 5: Auckland (13th) Excerpt: Auckland has the world’s fourth-best quality of living, according to a new ranking dominated by European cities. But in another ranking for eco-cities, Wellington beats out Auckland, ranking fifth worldwide. ### Trust, Gifting and Asset Protection - Annual Gifting Ian Mellett When I set up a client's trust, I spend our initial meeting explaining the Family Trust as a legal entity and an asset protection vehicle. During this meeting, I provide a detailed yet pragmatic and down to earth description of the various legal documents associated with the establishment and ongoing management of the family trust.   In addition, we take this opportunity to discuss the appropriateness of this entity for your particular set of circumstances.   Trust Gifting is an area I cover during this session as people often believe that once they have completed their first Gifting that they either do not have to gift anymore, or that their gifting will happen automatically.  Both of these scenarios are incorrect. Why do you need to perform your gifting annually?  It is important to remember that if a credit balance is owed to you by the Family Trust, you need to keep your annual gifting program in place until this balance is eliminated.  Your professional legal advisor is able to assist you with this annual gifting process. For more information on Family Trusts, Asset Protection and Gifting please contact myself, Ian Mellett at Auckland law firm, Quay Law. Excerpt: When I set up a client’s trust, I spend our initial meeting explaining the Family Trust as a legal entity and an asset protection vehicle. ### Residential Sales - Remuera, Parnell, Orakei, Mission Bay, Kohimarama, St Heliers and Glendowie This report has kindly been supplied to Auckland lawyer, Ian Mellett and the team at Quay Law by Robert Ashton of Bayleys Remuera. Dear Valued Rob Report Subscriber,  Please find attached a copy of The Rob Report (April 2010 Issue) for Remuera & Parnell. The Rob Report April 2010 Remuera & Parnell   As over the last 6 months, I have received a number of requests for me to republish my residential sales report - ‘The Rob Report’ for Orakei to Glendowie, please find attached the first issue for 2010.  This attached report features 99% of the published residential property sales in Orakei, Mission Bay, Kohimarama, St Heliers and Glendowie during the period 1st Jan & 30th Apr 2010 and priced over $1,000,000. The Rob Report Eastern Suburbs Jan to Apr 2010  To ensure the production of future reports is cost effective, I would appreciate it if you could forward copies of The Rob Report to any friends, neighbours or relatives who you know, would like to keep an eye on property values in the Bays.  If you have any queries or if I can be of future assistance, please do not hesitate to contact me direct on 021 633 398.  Regards Rob Ashton (Bayleys) Excerpt: This report has kindly been supplied to Auckland lawyer, Ian Mellett and the team at Quay Law by Robert Ashton of Bayleys Remuera. ### Pot of Gold above Quay Law A great picture of  a beautiful rainbow above Remuera, Auckland law firm, Quay Law taken by real estate agent,  Steve Koerber this morning.  Steve has ranked consistently in the top 3% of Barfoot & Thompson salespeople since joining the real estate company.  Thank you Steve for the awsome photograph. Excerpt: A great picture of a beautiful rainbow above Remuera, Auckland law firm, Quay Law taken by real estate agent, Steve Koerber this morning. ### Higher rents forecast as Budget alters tax rebate rates on investment properties Provided by:  Peter Migounoff - Bayleys (Sales & Leasing, Commercial & Industrial) Higher rents forecast as Budget alters tax rebate rates on investment properties  Watch out for rising rents in the coming 12 months. That's the warning from finance Minister Bill English following the Government's Budget announcement released today. Tax depreciation rates on investment properties will be reset to zero next year, while special 'loading allowances' covering new asset purchases will be removed altogether – under the Government's Budget released today. The Budget outlined that effective from the 2011/2012 income year - for most investors, this will mean from 1 April 2011 - depreciation deductions will no longer be allowed for buildings with "an estimated useful life of 50 years or more." The Budget specifically voiced the Government's belief that this would apply to such properties as rental houses and offices. As signaled for quite some time now, the Government has embarked on a path to abolish building depreciation on virtually every building type, and potentially looking over the coming months into reducing the categories of assets within commercial properties that currently attract depreciation claims must have an effect on the property market in New Zealand. Treasury, according to Finance Minister Bill English, is predicting already that levels of rent - both in the commercial and residential arenas - will probably rise as a result of this over the next few years. I believe that property investors and owners will not be happy to, or indeed in many cases able to, absorb the changes in depreciation expense claims on their properties. That will probably reduce net income from the investment so there will have to be movement on rental levels, and the only way investors can maintain yield margins is by increasing rents. The Government's firm view was that: "New Zealand buildings do not drop in value over time, thus giving property owners tax preferences." The tax depreciation rate basically effective for most property investors on buildings from April 1, 2011 will therefore be reset to zero. Case scenarios....what does today's Budget mean to property investors' bottom lines? Currently if an investor purchases a commercial property, such as an office block, with a cost (excluding the land component) of $3.5million, without segregating it any further for tax depreciation purposes, then the first year's claim is in the region of $105,000. Segregated further into the buildings and services categories increases the current claim levels to approximately $164,000. The Budget action in removing building depreciation claims means an investor's first year's depreciation claim could be a maximum of $115,000. However if fitout allowances are - as is being signaled - reduced or disallowed altogether, this estimate would reduce dramatically. Investors who fail to segregate assets into their correct depreciation categories of buildings and services will see all their depreciation claims disappear from 1 April 2011. For a residential property investor purchasing a rental property for a cost of $300,000 (again excluding land) basic tax depreciation claims allowable now are between $6000 and $9000 for the first year of ownership depending on the rate chosen. From April 1, 2011, most residential property investors - even allowing for segregating of assets into building and fitout/chattels categories - the figures will almost certainly disappear, and depreciation allowable claims will be significantly reduced. That is unless of course in accordance with IR 265 (the IRD's tax depreciation rate guide) you own a portable building or one with prefabricated stressed-skin insulation panels. If you currently do have a building that meets this 'less then 50 year useful life' criteria, you can continue to depreciate it at the current rate. The Government acknowledges that some property owners may feel their properties are in a class that has useful life of less than 50 years. The option for property owners to apply to the IRD for a provisional depreciation rate in such cases is available, and given the very limited exclusions applicable, there may be quite a few of these rulings applied for by commercial real estate owners. The Budget outlined that repairs and maintenance costs to keep properties in good condition to maintain their value would still be allowed. Nothing seems to have changed in this respect in the Budget. For the time being, depreciation claims on building fitout and services not currently designated as buildings will be allowed. However, the Budget clearly stated that the Government will review the treatment of commercial property fitouts in the next period, and, if necessary amend the rules on such allowances prior to 1 April 2011. It is thought this will clarify any uncertainty as to what property owners can or cannot claim in terms of asset tax depreciation. This intention was signaled by the IRD in late March this year when the IRD announced that the treatment of commercial property fitouts and services may well follow the treatment of its residential counterparts in the future. A lot of what is currently claimed by commercial property investors could be denied by IRD in the future. The IRD had listed 16 examples of fitout applications, of which, for residential property, only three or four may now be claimed as depreciable assets and not part of the building. Meanwhile, the 20 percent loading to the tax depreciation rates currently available if investors purchase a brand new asset is being removed from today. Assets currently attracting this loading will be allowed to continue. The Budget estimates that these actions on property investment will raise $685million in 2011/12 rising to $690 million in 2013/14. Interestingly within the Budget, the IRD had been allocated a "significant boost in funding" to assist with audits of property transactions, and to increase its activity in respect of "debt collection and the hidden economy. Investors buying and/or selling property in the future should be conscious that the IRD has more money and resources to spend on investigating the transaction to ensure the process is completed in total accordance with the all rules. The activities of Loss Attributing Qualifying Companies or LAQCs – the corporate vehicle used by many residential property investors – will also be treated differently from next year. The 2010 Budget has signaled legislation is to be proposed that from April 2011, all LACQs will be taxed as limited partnerships. Laws will be tightened from April next year to prevent investors choosing to have losses deducted at their marginal personal tax rate, but profits taxed at the lower company tax rate. The Government feels this will ensure both profits and losses incurred are calculated at the same marginal tax rate as that of the investor. Investors should review these changes in conjunction with taxation specialists to determine the personal effect of these changes upon them and their investments vehicles. Excerpt: Watch out for rising rents in the coming 12 months. That’s the warning from finance Minister Bill English following the Government’s Budget announcement released today. ### Changes are in store Source : AMY McGILLIVRAY - East And Bays Courier Photo: Fiona Goodall/East & Bays Courier. Remuera Business Association manager Laura Carr right and new chairman Scott Dargaville. NEW blood in the Remuera Business Association has members hoping the drama of the past few months is well behind them. Scott Dargaville was appointed interim chairman of the association when Lauren Jackson stepped down last month, and Laura Carr was hired as manager in March after a dispute over rebranding drove previous manager Victoria McArthur to resign. Hedgerow owner Sarah Clark, Elise Harper of Poppies Remuera bookstore and Quay Law's Ian Mellett have been appointed new association committee members. A new chairperson will be voted in at the AGM in September. Mr Dargaville, owner of Remuera Gallery, is excited about the direction the association is headed in. "A lot of it's been about letting people have their say. I think all the past problems are behind us." The association is planning to set up sub-committees such as marketing, security and business mix to increase their effectiveness. Efforts to advertise Remuera as a destination and organise a bus service to get tourists to the area are other priorities. New committee member Sarah Clark is concerned about the branding and the direction the association was headed in. "I'm interested in getting the community back to being a cohesive, happy group. I want to get in and make some changes." Mr Dargaville is also looking to get everyone back on board after the branding disagreements. The old Remuera crest was last year replaced by a new brand that reads "Remuera, Take Another Look" in white letters on an orange background. Bob and Lyn Bilkey, owners of Bilkey & Co Jewellers and Browns clothing and coffee shops, were among a group of business owners who opposed the new branding which they feel looks "cheap". More than 100 business owners signed a survey saying they were not happy with the new brand and preferred the old one. The Bilkeys, who questioned the cost of the new brand and demanded to be told what the business association's money was being spent on, were expelled from the group by an executive committee vote in December. Plaques featuring the old Remuera brand were removed but there is talk of putting them back up in an effort to "mend some bridges". "I'd like to put them back on the wall as a sign of good faith," Mr Dargaville says. He says there is widespread support for getting the Bilkeys "back on board" but he is unsure about the process for their reinstatement. Mr Dargaville supports the new brand, saying it is "colourful and bright" but he is open to making changes if necessary. Ms Carr says feedback on the branding will be sought from customers and businesses but she does not think it is a good idea to "start chopping and changing". Excerpt: NEW blood in the Remuera Business Association has members hoping the drama of the past few months is well behind them. ### Backyard renovations turning buyers away Source : By Alice Neville, NZ Herald 4:00 AM Sunday May 9, 2010 Home improvement is a national passtime in New Zealand, but DIY could acutally be slashing your property's value. Badly done do-it-yourself jobs can reduce a home's value by as much as 5 per cent, a survey has found. Wayne Boberg, of Boberg First National in Epsom, said: "If it's obvious, it's a bit like a leaky home - there's not a buyer for it anywhere. Nobody wants to know." John O'Roarke, managing director of LV= home insurance which commissioned the survey, told Britain's Daily Telegraph that not only could bungling DIY jobs devalue your home but, if they caused a serious problem, they could invalidate your home insurance cover. Certified builder David Brown says the problem with DIYers is they often take shortcuts. "These guys don't realise that even if you don't need a consent, you still need to build in accordance with the Building Act." And as home buyers are increasingly getting professional building inspections before they put in an offer, shoddy DIY jobs are no longer going unnoticed, says Brown. "If someone's wrecked a nice house by doing a cheap extension, it does devalue it because it just screams 'that wasn't done properly'." Brown advises DIY enthusiasts to get advice from a professional, find out what the legal restrictions are and be realistic. "If you're not sure you can do it, then don't. Get professional advice - if you've got a friend who's a builder, give them a couple of dozen beers and get them round for a chat about it. And if you do get into strife, don't be afraid to ask for help." Andrew Chisholm, chief executive of home maintenance company Hire A Hubby, says DIY disasters occur because people these days often don't know what they're doing. "The skills haven't been passed down through the generations like they used to be," says Chisholm. "It's probably in Kiwis' nature to back themselves to do something - but then it's not quite as straightforward as what they might have thought." Builder Mark Welham of Auckland's Humming Builders says he comes across examples of shoddy DIY constantly, with the most recent example a wall that had been lined with plaster board so badly it looked like a patchwork quilt. Damage often subtle Auckland builder Sandy Pyne has seen his fair share of DIY disasters. The damage done by shoddy DIY jobs, says Pyne, can be subtle to the untrained eye so it's important to check out renovated homes thoroughly before buying. "With renovated homes, we can tell if something hasn't been done to a good standard quite quickly but the general public might not be able to." Pyne once repaired a shower that a DIY enthusiast had installed without removing the base's protective plastic coating. "Once that plastic coating lifted, water was being sucked up under the back of the shower," says Pyne. "After a year it had trashed the floor and the whole thing had to be pulled out - it was an absolute mess. That cost them thousands of bucks." Pyne doesn't want to discourage DIYers but says it's essential to get advice - the legal requirements of home improvement can be complex. DIY tips: * Know what the legal restrictions are. * Talk to your local council to see if you need a building consent. * Work in a logical sequence to avoid damaging work already done. * Make sure exposed surfaces are protected. * Work through the rooms in a systematic way. - Consumer Build website By Alice Neville Excerpt: Home improvement is a national passtime in New Zealand, but DIY could acutally be slashing your property’s value. ### Going on Holiday? Whenever you go on holiday, it's a good idea to be as prepared as you can be.  You have reviewed your passports and visas, health, travel and money.  You have thought about what to pack and  and you have spent some time planning your  itinerary but...        have you thought about your Last Will and Testament. The team at Quay Law recommends that any form of travel should become a prompt to ensure that your personal affairs are in order.  Creating and / or reviewing your Will should be part of your pre holiday check list. Excerpt: Whenever you go on holiday, it’s a good idea to be as prepared as you can be. You have reviewed your passports and visas, health, travel and money. ### Trusts and Trustees - the Consequences of a Contract For expert legal advice call an Auckland Lawyer at Quay Law today. Trustees who do not understand the possible consequences of a contract that they wish to sign should take expert advice on all the liabilities to which they may be exposed. For more information on Trusts and Asset Protection call the team at Auckland Law Firm, Quay Law today. Excerpt: Trustees who do not understand the possible consequences of a contract that they wish to sign should take expert advice on all the liabilities to which they may be exposed. ### Latest Bayleys Auction Results Please find below a copy of the latest Bayleys Auction Results. Wednesday 31 March 2010, Maritime Square – 2.00 pm Auction Results Wednesday 31 March 2010, Maritime Square – 6.00 pm- Gala Auction Results Wednesday 31 March 2010, Maritime Square – 11.00am TOTAL PROPERTY RESULTS Peter Migounoff Sales & Leasing, Commercial & Industrial B +64 9 298 2525 | D +64 9 295 1185 | M +64 274 920 788 | F +64 9 298 4762 Excerpt: Please find below a copy of the latest Bayleys Auction Results. ### Welcome Auckland Lawyer, Siva Shanker Rajadurai joins the team at Quay Law.The team at Auckland Law Firm, Quay Law welcomes Siva Shanker Rajadurai to the team. Siva Shanker Rajadurai holds a LLB from the University of London and a Diploma in Electronics Engineering from Malaysia.  Prior to serving with the United Nations High Commissioner for Refugees in Malaysia, Shanker held numerous legal related roles in New Zealand    Shanker is able to provided legal services in English, Malay and Tamil.  He is people orientated and knowledgeable in the areas of property law, family trusts, commercial law and immigration. Welcome aboard Shanker. Excerpt: The team at Auckland Law Firm, Quay Law welcomes Siva Shanker Rajadurai to the team. ### Buying or Selling a Property Published Quay Law Article (written by Auckland Lawyer, Ian Mellett) : Buying or Selling a Property  Click on Link for FULL ARTICLE (Property Law) It goes without saying that there are numerous factors and additional costs, some of which you may not have considered, involved when buying or selling a property.  Having an awareness of these aspects at the outset will stand you in good stead.  Please feel free to contact Ian Mellett at Auckland Law Firm, Quay Law for more information or if you have any questions regarding your conveyancing or other legal needs.  You may also wish to visit our website www.quaylaw.co.nz. The Publishing Group has an enviable reputation when it comes to producing quality magazines.  Our aim is to ensure that this often stressful process proceeds in a smooth and efficient manner.  As you embark upon purchasing a new home or selling your existing property, it is prudent to take professional legal advice at an early stage in the process.  Quite often one’s emotions take hold and what should be an objective decision making process becomes shrouded in subjectivity.  We recommend that you engage your lawyer to review any agreement for sale and purchase prior to signature, as this will afford you the opportunity to make any suggested amendments.  It is extremely important to remember that once you have signed the agreement, a legally binding contract comes into force with the ensuing legal obligations.  A recent court case in Northland clearly demonstrates the strict approach that a court will adopt in determining a contracting party’s legal obligations.   Excerpt: It goes without saying that there are numerous factors and additional costs, some of which you may not have considered, involved when buying or selling a property. ### The Rob Report - Februrary 2010 Dear Valued Rob Report Subscriber,  Please find attached a copy of The Rob Report for Remuera & Parnell (Feb 2010 Issue).  2010 has started off with the same volume of sales during January, in Remuera & Parnell, as 2009. The volume in February is slightly down on last year but I am confident that further stats will be processed and published over the next few weeks. In the media there have been reports that there is an abundance of properties being advertised for sale. Based on my own observations, there don’t seem to be many signboards outside properties in Remuera and not many Remuera based properties being advertised in the Central Property Press. The Property Press does feel thicker than usual but this is partly due to the increase in the number of Full Page advertisements which have been offered at a discounted rate.  For your information there are approximately 200 individual Remuera properties currently advertised for sale on http://www.realestate.co.nz/. I will monitor this figure each month to see how much it may vary.  Irrespective of the number of properties currently advertised for sale, there is definitely a shortage of and a high demand for, good quality, well built homes.  I would like to thank the following sponsors for their support in producing this month’s issue of The Rob Report.  Anna Mooney - Anna Mooney Design (Graphic Design / Magazine Design) Robert Cotty – Auckland Home Loans Ian Mellett – Auckland Law Firm, Quay Law Barristers and Solicitors  If I can be of assistance, please do not hesitate to give me a call.  I hope you have a great month. Regards  Robert Ashton AREINZ BE (Structural) Residential Sales Specialist  TEL +64  9 520 8888 |  Mob  +64  21 633 398|  Bayleys Real Estate Ltd, Licensed under the REA Act 2008 Excerpt: 2010 has started off with the same volume of sales during January, in Remuera & Parnell, as 2009. ### Quay Law Tip of the Week: Types of property ownership Type of property ownership by Ian Mellett One of the questions frequently raised by the potential  investors pertains to the type of property ownership involved, so I thought that it would be useful to set out the most common forms of ownership below: Fee simple: This represents a form of freehold ownership and in essence represents absolute ownership of the property.  When people say that they “own” or “own the freehold of” a certain parcel of land they almost invariably mean that they own an estate in fee simple in that land. Leasehold: This is a form of property tenure where one party buys the right to occupy land or a building for a given length of time.  A leasehold estate thus differs from a freehold where the ownership of a property is purchased outright and thereafter held for an indeterminate length of time, and also differs from a tenancy where a property is rented on a fixed term or periodic basis. Until the end of the lease period the leaseholder has the right to remain in occupation as an assured tenant paying an agreed rent to the owner.   Cross lease: This is a hybrid form of multi-unit tenure in which each owner has an undivided share of the underlying freehold as tenants in common, and is granted a registered leasehold estate of the particular unit or flat occupied.  Effectively the property owners share ownership of the land and each owner leases their building from the other owners, which together form the cross lease title. Stratum estate: Under the Unit Titles Act 1972 the deposit of a unit plan has the effect of creating in each unit a new kind of statutory estate called a stratum estate in freehold, or a stratum estate in leasehold, depending on whether the land which was subdivided into units was freehold or leasehold. It is essential to determine, upfront, the exact nature of the form of property ownership when embarking upon a  purchase of any property.  My experience is that it is beneficial to have your lawyer cast his/her eye over a potential purchase agreement, before you sign the document, to ensure that you fully understand the nature and form of property ownership involved. Find a Property Lawyer? Please feel free to contact Auckland Lawyer,Ian Mellett at Quay Law for more information, or if you have any questions regarding your conveyancing or other legal needs visit our website www.quaylaw.co.nz  or call Auckland based Law Firm, Quay Law on ph - (09) 523-2408 for more information. Excerpt: One of the questions frequently raised by the potential investors pertains to the type of property ownership involved, so I thought that it would be useful to set out the most common forms of ownership ### Agreements / contracts When two parties enter into any contract / agreement, should an amendment be require - regardless of how large, small, significant or insignficant this change may be - a note of this amendment should be documented and distributed to the other party for acceptance. You may choose to do this in your own personal capacity or you may choose to use the services of a lawyer however, this legal tip of the week would like to highlight how critical it is to ensure any alterations or changes are documented and agreed to. Excerpt: When two parties enter into any contract / agreement, should an amendment be require – regardless of how large, small, significant or insignficant this change ### Quay Law goes to India Please find attached a link to some pictures taken on a recent business trip to India  http://www.youtube.com/watch?v=_87ouadwQ24  . Taking into account the ongoing bilateral Free Trade Agreement negotiations between India and New Zealand, and looking at the potential trade and investment opportunities between the two countries, there could not have been a more opportune time to hold the New Zealand Invest 2010 in India. Excerpt: Taking into account the ongoing bilateral Free Trade Agreement negotiations between India and New Zealand, and looking at the potential trade and investment opportunities between the two countries ### Understanding trusts is important - the legal relationships and legal obligations Auckland Law Firm, Quay Law : Level 1, 427 Remuera Road, Remuera, Auckland Trusts  have become an increasingly popular way of structuring your affairs. If you intend using a trust, it is important to be clear on the legal relationships and obligations involved. Prior to progressing with the set-up of your trust, the team at Quay Law recommends you book an appointment with one of our legal team.  During this initial session, our specialist will clearly set out the legal relationships and legal obligations, taking your unique circumstances into account.  Find a lawyer? For more information regarding Trusts, either call us  (09-523 2408) or visit our website (www.quaylaw.co.nz) Excerpt: Trusts have become an increasingly popular way of structuring your affairs. ### How long are New Zealand houses owned before they are sold An interesting article.  Source : qv.co.nz It is often said that properties are sold on average every seven years. Is that true? The answer is yes and no. There are really two ways to answer that question. One way is to look at all houses in New Zealand at the end of 2009 and measure how long it has been since they were last sold. The other way is to look at just the properties that sell in a given year and measure how long they had been owned prior to selling. Let’s look at the first way – on average, at the end of 2009, how long have all houses in New Zealand been owned, whether or not they sold. But first, a disclaimer of sorts. Our data goes back as far as the early 1980s which means we can measure sales up to about 30 years old. We have no record of sales prior to that (around 17% of houses) which means we can’t tell for those properties if the sale happened 31 years ago or 100 years ago. So we’ve removed these ones and just used houses where we can measure the time since the last sale. This means the average we can measure will be slightly less than the true average. So what’s the answer? 7.2 years. But of course that doesn’t mean that all properties have been owned 7 years, in fact only 10% have been owned between six and eight years. About one third of houses have been owned less than five years, and over one quarter have been owned more than ten years. Houses owned between two and five years account for nearly a quarter of all houses we can measure.   Next we can look at just the houses that sold in a given year, and see how long they had been owned prior to being sold. If we do this for 2009 the average time since the last sale was 5.9 years. So why 5.9 years when it was 7.2 years for average ownership time across all houses? The main reason is that by using the sales information we are only measuring the houses that sell in that year, not those that haven’t sold and have been owned for a long period of time. This pulls the average down. It also reflects that there is a portion of the market that turns over quite frequently, and these tend to dominate the sales in a given year. For example, first home buyers typically do not stay in their first house for long, instead trading up after a few years. Similarly young couples will tend to move to larger houses in family friendly areas after a few years. These transactions will tend to dominate the sales and overwhelm the much smaller number of sales of houses that have been owned for 20 or more years. Using the average time between sales method we can also look for differences between years. We know that 2009 was a year where the housing market was beginning to recover from the lows of 2008. A good comparison should be with 2005 when the housing market was in the midst of a boom in both sales volumes and house values that was to stretch from 2003 to 2007. The average time since last sale in 2005 was 4.9 years. At first glance this does not seem greatly different to the 5.9 years for 2009. In part this is because an average is not a particularly good way to measure this sort of information where lots of data is bunched up at one end then spread out over the other. The chart below more clearly shows the considerable difference between the two years. During 2005 there were a much greater proportion of sales of houses owned for less than two years. In fact these made up 28% of all sales in that year. In contrast, in 2009 only 14% of the sales were for properties owned less than two years. Conversely, in 2005 only 21% of sales were for properties owned between three and seven years, whereas in 2009 this was 32%. This difference is due to the type of activity prevalent in 2005 where many more properties were bought and sold quickly for capital gain, especially by investors. In 2009 the investor activity had dropped dramatically as funding became harder to secure, and the prospect of quick capital gains appeared dim. Myth busting There is something of a myth floating around that lifestyle properties turn over very quickly as urbanites chasing the dream of semi-rural living soon learn the harsh realities of tank water, septic tank sewage, looking after paddocks and tending to the animals. The myth has it that these people toss in the towel after only a few short years and return to the city. So is this true or not? Across New Zealand the average time that owners of lifestyle properties have been there is 7.2 years. Does that number sound familiar? It should - because it’s the same that we saw for houses. Just like for houses, there are of course people who have owned their lifestyle property for less than two years. For lifestyle properties this is 8.6% which is actually fewer than for houses where it is 10.9%. The story is similar when looking at sales of lifestyle properties in 2009 when 15% of those that sold had been owned less than two years. This is again less than houses where 18% have been owned less than two years. The proportion of houses and lifestyle properties owned for more than five years and more than ten years is very similar, in other words there is no evidence that lifestyle properties turn over more quickly than houses. I think we can safely call that particular myth busted! Excerpt: It is often said that properties are sold on average every seven years. Is that true? The answer is yes and no. ### Outlook 2010 : Property Management SAVVY MANAGMENT KEY TO RETAINING VALUES Proactive asset and tenant management will be crucial to minimising futher erosion of capital values in 2010, says Nicolas Piper, commercial property general manager of Bayleys Property services which has a portfolio of more than $1 billion worth of commercial and industrial property under management. The commercial property market is expected to remain under considerable pressure in the short to medium term.  The continuing rise in vacacy levels, the associated increase in leasing incentives on offer, as well as the inevitable reduction in negotiated net effective rentals, are all factors that are strongly impacting on rental income streams and, of course, property values...... Please click on the following link to read the full published article  Nicolas Piper Excerpt: Proactive asset and tenant management will be crucial to minimising futher erosion of capital values in 2010, says Nicolas Piper, commercial property general manager of Bayleys ### Local area property report by Rob Ashton Dear Valued Rob Report Subscriber,  Please find attached a copy of the 1001The Rob Report Remuera & Parnell Jan 2010.  2009 finished on a high with good numbers attending open homes and many of us enjoyed good sales volumes.  As shown in the attached report, the sales volumes in Jan 2010 are down on Jan 2009.  We expected (hoped?)the market activity would continue as per Nov / Dec 2009 but currently the attendance at open homes is down but on a positive note after a slow start the volume of sales at Bayleys Remuera for February is quite impressive with a jump in the number of higher priced sales of around $2,000,000 to over $4,000,000.  So we are meeting more quality (motivated, cashed-up) buyers at our open homes rather than quantity.  I have been approached by an elderly (96 y.o.) client who would like to sell his property in Parnell. If you or if you know someone who would like to purchase a 1300 m²+, single dwelling, water front development site – price range: $3M to $4M – with most likely a long term settlement, please  contact me direct on 021 633 398.  Please find below a list requirements for a wide range of my clients who are looking to purchase properties. If you are thinking of selling and think that your home may suit one of my clients, please contact me in the strictest confidence.  Have a great month.  Regards   Robert Ashton AREINZ BE (Structural) Residential Sales Specialist TEL +64  9 520 8888 |  Mob  +64  21 633 398|  Fax  +64  9 520 8880 |  email robert.ashton@bayleys.co.nz Excerpt: Please find attached a copy of the 1001The Rob Report Remuera & Parnell Jan 2010. ### Local competition - Remuera Valentines Day There will be love in the air this Valentine’s as Remuera's Mainstreet comes alive with this celebration of romance. Shop in Remuera before the 14th Feb and go in the draw to win a fabulous luxury package including the use of a stunning Peugeot 308CC, including a full tank of gas! for the weekend courtesy of Peugeot New Zealand and Continental Car Services ; a gorgeous Pandora bracelet with three charms from Sanders Jewellers, a Phantom and Diana print by Lester Hall from Remuera Gallery, a Full Body massage from Nirvana Spa, a Hot Rocks massage from Elementa, the new Lumiere Anti-Aging Treatment, from Forme Spa, book vouchers to the value of $50 from Poppies Books, a Contemporary Landscape Print on Artmount from The Print Shop Gallery, Go Fish by Al Brown and Paul Bangay’s Garden Design Handbook from Wheeler’s Bookshop and a his and hers Wills package from Quay Law. To win this fabulous package all you have to do is shop in Remuera between 2nd February and 14th February 14, fill out an entry form, pop it into the box provided and go in the draw to win. Our thanks and appreciation go to those businesses, especially Peugeot New Zealand and Continental Car Services who have supported this initiative. The Valentines girls will also be out on the street on Saturday 13th Feb giving out a sweet treat to those who are shopping with us. Excerpt: There will be love in the air this Valentine’s as Remuera’s Mainstreet comes alive with this celebration of romance. ### New Zealand Residence Programme: Investor (Investor 2 Category) selection New Zealand Residence Programme: Investor (Investor 2 Category) selection Wednesday, February 17, 2010 Source : Immigration New Zealand A selection of Expressions of Interest (EOI) under the Migrant Investment Policy, Investor (Investor 2 Category), took place on Wednesday, 17 February 2010. Eleven EOIs were selected. All EOIs with a claim of between 20 and 171 points were selected. For more information relating to your immigration needs contact Ian Mellett. Excerpt: New Zealand Residence Programme: Investor (Investor 2 Category) selection ### Rob Report for Remuera and Parnell (December 2009) - Local Property Report A local property Report from Robert Ashton : Rob Report Dear Valued Rob Report Subscriber  Please find attached your complimentary copy of The Rob Report for Remuera and Parnell (December 2009). CLICK ON LINK 0912The Rob Report December 2009 Remuera & Parnell  Have a great month.  Regards Robert Ashton AREINZ BE (Structural) Residential Sales Specialist Bayleys Remuera, 55a Remuera Road Newmarket, Auckland, New Zealand Bayleys Real Estate Ltd, Licensed under the REA Act 2008 Excerpt: A local property Report from Robert Ashton : Rob Report ### Tax cuts: High earners set to benefit most Source: nzherald.co.nz  By Audrey Young    4:00 AM Wednesday Feb 10, 2010  Big personal tax cuts for middle and high-income earners are likely to be announced in the May Budget and take effect from October this year. The tax cuts of up to $4 billion will be funded mainly by increasing GST from 12.5 per cent to 15 per cent, and cutting depreciation tax breaks on buildings. Prime Minister John Key pledged to give across-the-board tax cuts in his statement to Parliament yesterday on his plans for the year. There would be upfront increases in social welfare benefits, superannuation and working for family payments to compensate for the GST rise. He acknowledged that higher income families would benefit more from the tax cuts, because they pay more in tax. Lower income earners would be no worse off - unless they owned rental property - and he expected them to be better off. He said the Government would not increase GST "unless it saw the vast bulk of New Zealanders better off". "GST is a very difficult tax to avoid, no matter how people structure their financial affairs. As David Lange once observed, even drug dealers pay GST. His plan also set new priorities in science and innovation, and in exploiting the financial gains in gas and oil exploration and mining minerals - on conservation land. "We are not magicians," he told reporters. "We are not a Government that has spare cash, so we are having to move things around to make sure we can invest in areas we think are most critical for our growth." Referring to comments by Reserve Bank Governor Alan Bollard on Sunday about New Zealand's gap with Australia, he said: "Alan Bollard might be satisfied with the crumbs off Australia's table - I want the entree, the main course and the dessert." It is thought that the Government's present aim with the October tax cuts will be to align the top personal tax rate of 38c and trust rate of 33c with the corporate tax rate of 30c. But there is still more work and modelling for officials to do before that looks like a certainty. At the very least there is an expectation that the top personal tax rate will drop to 33c. The Government may want to keep something in reserve in case it has to match a cut in the Australian business tax rate from 30c. The measures will have the effect of reinstating, in a broad sense, the tax cuts that National cancelled because of the recession, and funding them from elsewhere. Yesterday's statement was the Government's response to the tax working group which urged reform for a "broken" tax system by lowering personal taxes, and steering investment away from residential property to more productive sectors. Excerpt: Big personal tax cuts for middle and high-income earners are likely to be announced in the May Budget and take effect from October this year. ### Relief in property circles as most tax options ruled out Source: nzherald.co.nz By Anne Gibson 4:00 AM Wednesday Feb 10, 2010 The vice-president of the Property Investors Federation is relieved that most housing tax options were ruled out in Prime Minister John Key's speech yesterday, but he is wary of what is to come. Andrew King said Key had erred on the side of caution and been politically astute. "It's what we expected but it's nice to hear it," King said in reaction to Key's speech to the House shunning most of the Tax Working Group's advice to hammer landlords. Key ruled out a 0.5 per cent land tax which would net $2.3 billion annually and a capital gains tax and said there would be no introduction of a recommended scheme to tax rental income at the equivalent of a risk-free rate of return, pulling $500 million-$900 million a year. King said most landlords hoped Key would not implement the Tax Working Group's recommendations which floated these ideas. As for the May Budget, King said he was not too concerned and predicted only one change to the system. "I think he's going along the lines of disallowing building depreciation. I can't see him banning Loss Attributing Qualifying Companies because the biggest users of those are forestry businesses. All banning those would do would mean residential investors would own properties in their own names and they would still get the same tax deductions," King said. Axing building depreciation would bring in about $1.3 billion annually, the working group predicted. King remains disappointed and angry about the group's report, saying it undermined the $200 billion residential property sector, created widespread misconceptions and skewed information which stirred up anti-landlord sentiment. He cited a sub-report to the group from Inland Revenue and Treasury which said that in the last 28 years, landlords had paid tax every year except 2007 and 2008 when interest rates were so high that they claimed deductions on mortgage costs. "The working group's report is misguided. It is not as thorough as it should be," King said. But John Shewan - group member, landlord and Pricewaterhousecoopers chairman - said some multimillionaire landlords qualified as state beneficiaries because they appeared poor on paper. He said the $200 billion tied up in residential rental property was four times the capitalisation of the NZX yet resulted in negative tax. Lee Whiley, an Auckland landlord, is worried about disallowing depreciation and predicted this could halve his annual income from six properties. Key released little about the Government's tax plans but said landlords would be made to pay their share. "The Government does believe there is a gap in the current tax system around property investments where income is being derived but, in aggregate, no tax is being paid - in fact the Government is actually losing revenue in this sector," Key said. "We will therefore be making changes [in the Budget] to the way property is taxed which will result in ... more fairness for taxpayers." Excerpt: The vice-president of the Property Investors Federation is relieved that most housing tax options were ruled out in Prime Minister John Key’s speech yesterday, but he is wary of what is to come. ### BUYING OR SELLING A PROPERTY As printed in The South African" Issue 13 - January 2010 IAN MELLETT OF QUAY LAW Ian Mellett and his wife Cathy emigrated to New Zealand in June 1997. Ian has a BComm LLB H Dip Tax and was engaged by a Johannesburg law firm and subsequently Deloitte and Touche. He joined Deloittes in Wellington for a couple of years and has thereafter practiced law in New Zealand for the past 11 years. Ian played provincial cricket for Northern Transvaal B and Griqualand West. He has retained his interest in the game and has been the principal sponsor of the Parnell Cricket Club for the last 3 years. This is a MUST READ for everyone, as buying or selling a property is probably one of the most important transactions that you will undertake. BUYING OR SELLING A PROPERTY Our aim is to ensure that this often stressful process proceeds in a smooth and efficient manner As you embark upon purchasing a new home or selling your existing property, it is prudent to take professional legal advice at an early stage in the process. We recommend that you engage your lawyer to review any agreement for sale and purchase prior to executing same, as this will afford you the opportunity to make any suggested amendments. It is extremely important to remember that once you have signed the agreement, a legally binding contract comes into force with the ensuing legal obligations. A recent court case in Northland clearly demonstrates the strict approach that a court will adopt in determining a contracting party’s legal obligations. Mr and Mrs A entered into a contract to purchase a new home with the contract being conditional, amongst others, upon them selling their existing home. Their circumstances changed with the result that they did not vigorously pursue a sale of their existing home. They consequently cancelled the contract on the basis that this condition had not been satisfied. The vendor eventually sold the property but at a far lower price than that provided for in the original contract with Mr and Mrs A. The vendor successfully sued Mr and Mrs A for his loss (in excess of $100,000), the court holding that Mr and Mrs A had a legal obligation to use all their efforts to fulfill the condition of selling their existing home and that they had not discharged their responsibility in this instance. In addition to receiving the requisite and timely legal advice, it is essential that you are kept abreast of all developments pertaining to your transaction. In order to facilitate this, Quay Law has embraced a unique piece of conveyancing software which enables all interested parties in a conveyancing transaction to be kept in the loop at all times. KeyTrack ( allows not only you as the vendor or purchaser of a property, but also all related service providers such as your real estate agent, mortgage broker, banker etc to follow your conveyancing transaction online. Using the KeyTrack system has the following benefits: 1) You are able to view the status of your property transaction online 24 hours a day 7 days a week. 2) You will receive email and/or text alerts when conditions in your agreement have been satisfied and when your agreement is declared unconditional. 3) You will receive email and/or text alerts upon your deal settling including notification that the keys can be released/collected. 4) If you have multiple transactions on the go, you are able to view all of these transactions with your single login, saving you time in phoning or emailing the lawyers associated with each deal. 5) The electronic file is stored indefinitely for you to access (free of charge) at any time in the future. 6) You will have global access to your transactions and will receive text message updates globally. 7) Your estate agent /estate agency branch administrator also has access to your transaction thereby saving you the hassle of having to communicate with your agent as well as your lawyer. 8) Your estate agent is able to keep you updated with online developments relating to the marketing of your property eg the outcome of your open homes. The team at Quay Law are excited about the additional efficiency and service levels which the KeyTrack system will deliver to our clients. Please feel free to contact Ian Mellett at Quay Law for more information, or if you have any questions regarding your conveyancing or other legal needs visit our website www.quaylaw.co.nz for more information. THANK YOU, IAN! WE LOOK FORWARD TO MORE LEGAL UPDATES IN FUTURE ISSUES……..” READERS, WATCH THIS PAGE!” Quay Law Advert Excerpt: IAN MELLETT OF QUAY LAW Ian Mellett and his wife Cathy emigrated to New Zealand in June 1997. ### New Zealand Residence Programme: Skilled Migrant Category fortnightly selection Source : immigration.govt.nz A selection of Expressions of Interest (EOI) under the Skilled Migrant Category took place on 27 January 2010. The following EOIs were selected.  27 January 2010 Selection criteria No. of EOIs All EOIs at or above 140 points. 376 All EOIs with a job or a job offer claiming points between 100 and 135 points. 119 All those claiming 15 points for work experience in an area of absolute skill shortage and with a points total between 130 and 135 points. 48 TOTAL SELECTION 543  The next selection will take place in a fortnight. Excerpt: A selection of Expressions of Interest (EOI) under the Skilled Migrant Category took place on 27 January 2010. ### Protecting your families long-term financial security A family trust may not protect your family from every threat to their long-term financial security but it is the single most effective means of protecting your assets in today’s increasingly complex world. At Quay Law, we are able to assist with the following types of services: Family Trusts Estate Planning Asset Protection Plans and Structuring Trust gifting Trust Administration Trustee Advice Protection of personal assets from business initiatives Do you require a professional to explain family trusts?  Quay Law principal and lawyer, Ian Mellett can be contacted on phone number +64 9 5232408. Excerpt: A family trust may not protect your family from every threat to their long-term financial security but it is the single most effective means of protecting your assets in today’s increasingly complex world. ### Skilled Migrant Category additional selection criteria maintained Friday, December 18, 2009 Source : immigration.govt.nz The additional criteria for selecting Expressions of Interest (EOI) from the Skilled Migrant Category Pool (the Pool) until 31 July 2010 have been set. The criteria will remain the same as in the previous six month period. These criteria are applied when there are places available in the Pool after all applicants who score between 100 and 140 points and have a New Zealand job or job offer have been selected. When this happens, other EOIs may be selected on the basis of specific criteria which the Minister of Immigration sets every six months. The additional selection criteria are: EOIs that include 15 points for work experience in an area of absolute skills shortage (in descending order of their points total); EOIs that include 10 points for work experience in an area of absolute skills shortage (in descending order of their points total); EOIs that include 10 points for a qualification in an area of absolute skills shortage (in descending order of their points total); the points total of EOIs not meeting any of the above criteria. Excerpt: The additional criteria for selecting Expressions of Interest (EOI) from the Skilled Migrant Category Pool (the Pool) until 31 July 2010 have been set. The criteria will remain the same as in the previous six month period. ### International Travel and Migration: November 2009 International Travel and Migration: November 2009 - Media Release Source: Statistics New Zealand New Zealand's annual net permanent and long-term (PLT) migration balance was a gain of 20,000 in the November 2009 year, up from 3,600 in the November 2008 year, Statistics New Zealand said today. The latest annual net migration total is the highest since the July 2004 year (20,600). The increase in net migration was driven largely by 17,300 fewer PLT departures compared with the previous year. PLT departures decreased by 1,600 in the November 2009 month, including 1,500 fewer departures to Australia and 200 fewer departures to the United Kingdom. Since February 2009, PLT departures have fallen by at least 1,000 each month compared with the same month of the previous year. PLT arrivals decreased by 200 in November 2009. On a seasonally adjusted basis, PLT arrivals exceeded PLT departures by 1,800 in the November 2009 month, similar to levels experienced since February 2009. Visitor arrivals in November 2009 (219,900) were up 600 (less than 1 percent) compared with November 2008. Arrivals from Australia (up 7,300 or 9 percent) were again the major contributor, with November 2009 being the eighth consecutive month of large increases from across the Tasman. There were drops in visitors from the United States (down 2,400) and Canada (down 900). Visitor arrivals in the November 2009 year (2.439 million) were down 14,300 (1 percent) from the November 2008 year. New Zealand residents departed on 158,400 short-term overseas trips in November 2009, up 3,200 (2 percent) from November 2008. There were more trips to India (up 1,100 or 22 percent), and the United States (up 1,000 or 19 percent), but fewer trips to the Cook Islands (down 800 or 18 percent) and Australia (down 800 or 1 percent). For the November 2009 year, short-term departures of New Zealand residents numbered 1.921 million, down 58,400 (3 percent) from the previous November year. 21 December 2009 Excerpt: New Zealand’s annual net permanent and long-term (PLT) migration balance was a gain of 20,000 in the November 2009 year, up from 3,600 in the November 2008 year, Statistics New Zealand said today. ### Expect a strong recovery in NZ economy: Westpac Expect a strong recovery in New Zealand’s economy, Westpac says Monday, 18 January 2010, 4:33 pm Article: Businesswire Jan. 18 (BusinessWire) - New Zealand's economic recovery will be stronger than most economists are forecasting, with growth likely to top 4% next year, Westpac Banking Corp said in its quarterly economic overview. While the global financial crisis could mean a different kind of recovery, Westpac's economics team suggests there is too much store being placed in that analysis, especially when so many of the factors now at play look the same or better than recoveries in the past. Westpac's forecast of a 3.7% rate of growth in gross domestic product this year, and 4.3% in 2011, is at the top end of the 16 forecasters the bank monitors, and it's happy with that. "We find that recoveries from past recessions have tended to be very strong," said Westpac's chief economist, Brendon O'Donovan. "On average, New Zealand GDP (economic) growth peaks at 6% per annum nine quarters after the recession has ended.” "What is startling is how many favors are currently shaping up similar to that experienced in previous strong recoveries,” he said. “That would suggest that the risks to our forecasts are weighted more to the upside than the downside." Among factors looking similar or better than in previous recoveries, Westpac listed: • A deep recession to start with; • Asset prices, particularly housing, rebounding strongly; • A mini-boom in migration is under way; • World economic forecasts keep being revised upwards, led by Asian economies rather than Europe or the USA on this occasion; • A dramatic shortfall in new houses being built; • Unusually deep de-stocking, meaning firms will have greater inventory re-stocking needs. Inventories fell in mid-2009 by the greatest extent since records began in 1987; • Reduced consumption mainly affected durable goods, especially cars. If and when spending returns to more normal patterns, these categories fuel a bounceback; • Leading indicators including the interest rate outlook (rising), business and consumer confidence are "if anything, stronger in those most other economic recoveries". While credit, employment and mortgagee sales data would continue to look weak for some months yet, they were all late signals from the last impacts of the recession on firms and households that had hung on as long as possible, but failed late in the downturn. While the global financial crisis was severe for world banking, there was no banking crisis in New Zealand and the terms of trade had returned swiftly to robust levels, reflecting demand for agricultural and other commodities from fast-growing Asian countries, where New Zealand was signing an increasing number of trade liberalisation deals that would assist growth. "Simple arithmetic would suggest a stronger than usual rebound," O'Donovan said. Westpac expects a substantial improvement in parts of the economy that are exposed to domestic recovery, singling out construction, publishing and advertising, transport and sectors supporting oplant and machinery investment, and consumer durable goods. (BusinessWire) Excerpt: Jan. 18 (BusinessWire) – New Zealand’s economic recovery will be stronger than most economists are forecasting, with growth likely to top 4% next year, Westpac Banking Corp said in its quarterly economic overview. ### Revealed: the risks of DIY home sale Source: Leigh van der Stoep - Sunday Star Times THE DANGERS of selling your house privately have been exposed, after a woman who tried to back out of such a sale was ordered by the courts to honour the deal. Auckland woman Catherine Burton, aged in her 80s, sold her house privately for less than two-thirds of its market value and later, regretting the move, refused to settle. The new owner took Burton to court and won, and now Burton must also pay high court costs of the dispute, which could total tens of thousands of dollars. Experts say the case shows those trying to save money by selling their house without a solicitor or an agent take a big risk. The buyer, Edward Sayers, a lawn-mowing contractor in his late 60s, offered to buy the unit in Ellerslie, Auckland, from Burton in 2006 after she inherited it from her brother. He became interested in the unit – one of three – while mowing the lawn of one of the neighbouring properties, and thought he would be able to buy it at a good price because of its dilapidated condition. Burton's brother had been a hoarder, and the poor state of the property had prompted Auckland City Council to give notice that it could be a health and safety hazard. Sayers sent Burton a letter offering $125,000 for the property, which both parties thought was probably worth around $155,000, based on the previous year's council rating valuation. In a reply letter Burton also said she doubted the property would be worth more than $125,000 due to its condition, but indicated that there was other interest in the property. Neither party ordered an independent valuation. Six weeks later Burton accepted Sayers' offer of $125,000 and five days later they signed a sale and purchase agreement. Burton, the court found, did not consult a lawyer on the agreement, because she wanted to save money. Sayers had suggested she get legal advice. When the other interested buyer came back to Burton more than a month later, he was upset to learn it had been sold. The man phoned Sayers accusing him of taking advantage of Burton, and told her to seek legal advice. Based on this, Burton then refused to settle the agreement, claiming it was an unfair bargain. Sayers – and a nephew who had helped him with the deposit – took court action. Justice Geoffrey Venning ruled that although the actual value of the property was closer to $190,000, and the purchase was "a bargain", Burton had not been deliberately taken advantage of. Sayers himself did not know the true value of the property and had advised Burton that she should take legal advice, Venning said. "This is not a case of experienced or successful business people taking advantage of an elderly lady," he said. When contacted by the Sunday Star-Times, Burton said she was unhappy with the outcome but did not wish to comment further. Her lawyer Kevin McDonald said an appeal was possible. Sayers, who is now 70, was pleased with the judge's decision but was unhappy the issue had dragged out over three-and-a-half years. He still does not have access to the property, and is anxious to start cleaning it up and making it liveable. He believed his offer was fair and reflected what he thought the property was worth. Legal fees to fight the case had been "horrendous". "The vendor will get very little money from this venture, which is a shame and completely avoidable," he said. Auckland University associate law professor David Grinlinton said for a contract to be overturned there had to be strong evidence of "unconscionable behaviour", where one stronger party knowingly took advantage of a weaker party's disabilities. He urged buyers and sellers to get legal advice because property sales were complicated, and the transaction often involved large amounts of money. "When people enter into contracts, they are entering into legally binding agreements that can be enforced by the other party. Where a lot of money is involved, you are really foolish to enter into those contracts without taking proper legal advice. The law won't intervene to help people out if they make bad decisions." Another property law expert said although using a real estate agent was optional, not using a lawyer was "just stupid". A solicitor would have told Burton to get an independent valuation, a cost of just several hundred dollars, but instead "this has cost her thousands". Peter McDonald, president of the Real Estate Institute of New Zealand, said the case was a prime example of why people were better off using an agent to sell their property. He said the new Real Estate Agents Act, which came into effect last year, gave buyers and sellers "huge consumer and legal protection". Agents were required to provide sellers with evidence of how they have reached a suitable price at which to market the property, and were also compelled to advise both parties to engage a lawyer when signing. "People think they can save money, but they're not," said McDonald. "I do feel sorry for the woman. I wouldn't want my mother in that position." Excerpt: THE DANGERS of selling your house privately have been exposed, after a woman who tried to back out of such a sale was ordered by the courts to honour the deal. ### Executing a Sale and Purchase Agreement The legal team at Quay Law recommends that you engage your lawyer to review any agreement for sale and purchase prior to executing same, as this will afford you the opportunity to make any suggested amendments.  It is extremely important to remember that once you have signed the agreement, a legally binding contract comes into force with the ensuing legal obligations. Excerpt: The legal team at Quay Law recommends that you engage your lawyer to review any agreement for sale and purchase prior to executing same, as this will afford you the opportunity to make any suggested amendments. ### How tax system changes could cut house values Source: 3new.co.nz Wed, 16 Dec 2009 3:44p.m. Westpac economists taking a stab at the impact of possible tax changes on house values reckon the decline could be as high as 34 percent. In a note today, Westpac chief economist Brendan O'Donovan and research economist Dominick Stephens focused roughly on tax changes being discussed by the Government's tax working group. The economists acknowledged their estimates were sensitive to the assumptions they made, but said the framework was useful for illustrating that prices would be affected by taxes, and for giving a rough guide to their size. According to the exercise, the biggest impact would come from the introduction of a deemed rate of return of 6 percent. The result would be a fall of between 26 percent and 34 percent in house prices, while rents would rise between 13 percent and 17 percent. For property investors, rental income would not be taxed, and expenses including interest would not be tax deductible. Instead, income tax would be applied to a "deemed rate of return" on the net equity on the property. Owner-occupiers would be unaffected. Under the deemed rate approach, fully leveraged landlords would not pay any tax on their zero equity, but would lose the right to deduct cash losses on the property against their taxable income. The Westpac economists reckoned that the introduction of a 10 percent capital gains tax would lower house prices 15.7 percent and cause rents to rise 7.8 percent. But they regarded a capital gains tax on investment property as unlikely, saying it would be costly to administer and much of the burden would fall on tenants who tended to have low incomes. A reduction in the top rate of tax to 30 percent would see house prices fall 13.6 percent and rents rise 6.8 percent, the Westpac economists estimated. Landlords received a tax rebate for losses on their rental properties at their marginal rate of income tax. If the marginal rate of income tax changed, so would the size of the rebate. A land tax of 0.5 percent was estimated to cause house prices to fall 4.4 percent and rents to rise 2.2 percent. The fall in house prices was based on the median house, for which land made up 40 percent of the value. Land values were estimated to fall 11 percent. Under a land tax of 0.5 percent combined with income tax of 30 percent house prices would fall 16.9 percent and rents rise 8.4 percent. The Westpac economists said such a combined approach was "politically plausible". They were unable to work out how far prices would fall under a ringfencing scenario under which rental losses could only be offset against future rental profits, not current personal income. There would be no ability to shelter from income tax using loss-making rental properties, but property would still be a tax-efficient investment for cashflow positive landlords. Owning property came with tax advantages, Mr O'Donovan and Mr Stephens said. An investment in one's own home incurred zero tax on the flow of benefits -- avoiding rent and capital gain. By contrast, all other investments incurred tax on the interest/dividends/profits. From a rental property perspective, the losses from paying more in expenses and mortgage interest than receiving in rent were tax deductible against other income, while capital gains were tax free, the economists said. "High-income landlords can swap their taxable labour income for tax-free capital gain income. Unsurprisingly, many do." NZPA Excerpt: Westpac economists taking a stab at the impact of possible tax changes on house values reckon the decline could be as high as 34 percent. ### What are the advantages to you of using a property law firm that uses KeyTrack® Level 1, 427 Remuera Road, Remuera, Auckland What are the advantages to you of using a property law firm that uses KeyTrack® KeyTrack® allows not only you as the vendor or purchaser of a property, but also all related services providers such as your real estate agent, mortgage broker and banker, to follow your conveyancing transaction online.  Remuera law firm, Quay Law is currently the only law firm in the Remuera, Meadowbank, Parnell, Epsom, Orakei and Mt Eden to embrace this software. You do not need to phone your lawyer to see your status of your property deal as this is contained in your Transaction Status Report (TSR) You have access to your deal 24 hours a day 7 days a week. You will receive text and email alerts upon your agreement being declared unconditional. This gives you knowledge of this fact at the earliest possible opportunity hence you'll have more time to organise the necessary matters required to be completed prior to settlement of your property transaction ( signing of loan agreements, organising insurance and removal vans) You will receive text and emails on your deal settling including notification that keys can be collected if you are buying or handed over if are selling a property again saving you valuable time. If you have multiple transactions on the go you are able to view all of those transactions with your single log in saving you time phoning or emailing lawyers associated with each deal. The electronic file is stored indefinitely for you to access (free of charge) at any time in the future. You will access to your TSR & Marketing Status Reports (MSR's) globally and will receive text message updates globally. Your agent also has access to your TSR saving you hassles in having to communicate with your agents as well as your lawyer Your agents are able to create a MSR in KeyTrack® keeping you updated with online developments relating to the marketing of your property for sale e.g. the outcome of your open homes and not just weekly activity by post but real time activity online. Please contact Ian Mellett at Quay Law for more information, or if you have any further questions regarding your conveyancing needs or visit our website www.lawyerinauckland.co.nz for more information. Ph: 523-2408        Email: quaylaw@quaylaw.co.nz Excerpt: KeyTrack® allows not only you as the vendor or purchaser of a property, but also all related services providers such as your real estate agent, mortgage broker and banker, to follow your conveyancing transaction online. ### Bollard hints at earlier rate hikes; kiwi jumps Thursday, 10 December 2009, 11:00 am Article: Businesswire Bollard hints at earlier rate hikes; kiwi jumps Thursday, 10 December 2009, 11:00 am Article: Businesswire Bollard brings forward timing of OCR hikes, driving up kiwi dollar, short bond rates By Paul McBeth Dec. 10 (BusinessWire) Reserve Bank Governor Alan Bollard brought forward the likely timing of increases in the official cash rate after lifting his forecast for the pace of economic growth, driving up the kiwi dollar and short bond rates. Bollard kept the OCR unchanged at a record low 2.5%, as expected, and said provided the economy continues to grow, “conditions may support beginning to remove the monetary stimulus around the middle of 2010.” He has previously said rates would not rise until the second half of next year. Search New Zealand Business Related Stories on Scoop NZ dollar jumps on Bollard hint of early rate hike 10/12/2009 Bollard to hold rates steady; may point to rebound 07/12/2009 RBA hikes rates for third straight month 01/12/2009 Bollard talks down impact of rate hikes on kiwi 21/10/2009 NZ inflation accelerates; kiwi dollar jumps 15/10/2009 Results powered by search.scoop.co.nz More Related Stories >>> “The economy continues to recover, reflecting improved world growth, higher export commodity prices, increased government spending and housing strength,” Bollard said in a statement released in Wellington today. The New Zealand dollar jumped to 71.87 U.S. cents after the Monetary Policy Statement was released in Wellington, from 71.22 cents immediately before. The yield on two-year government bonds soared 20 basis points to 4.55%. “I’m a little surprised they are happy for business and mortgage rates to go up,” said Grant Hassell, who oversees about $4 billion as head of fixed income at AMP Capital Investors. The central bank may have been “spooked” by the strength of the housing market. Helping underpin the kiwi, Bollard indicated a “sense of comfort” with the current level of the New Zealand dollar, which “stops it falling any further in my view,” Hassell said. There is a “very real possibility” the RBNZ hikes rates in March, as the market has priced in, especially given the Reserve Bank of Australia probably won’t slow its tightening process. Still, Bollard would prefer to wait until June, he said. Domestic property values climbed 1% in the 12 months through November, the second month of gains from the same time a year earlier, according to QV Valuations data. The central bank will have to walk a fine line over stoking economic activity without over-egging it as inflation begins to speed up ahead of Bollard’s expectations and the housing market continues to show signs of emerging from the lethargy of the past 18 months. The Reserve Bank’s Expectations Survey found respondents see inflation accelerating to a 2.6% annual pace from 2.3% over the next two years. Prices unexpectedly rose in the third quarter, with the Consumer Price Index increasing to an annual 1.7%, according to government data, ahead of the 1.2% pace forecast by the RBNZ. The central bank has a benign outlook for inflation, and Bollard said he expects the annual consumer price index will remain below 2% until early 2011 and “track within the target range over the medium term.” The Reserve Bank expects the 90-day bank bill to begin rising in the June quarter next year, when rates climb 0.1 percentage points to 2.9%, and increase to 3.3% in the September quarter. The bank previously forecast this to occur in the December quarter of 2010 and March quarter of 2011, respectively. Before today’s statement, traders had been betting the central bank would hike the OCR by 1.63 percentage points in the next 12 months, based on the Overnight Index Swap curve. The scale of expected tightening has declined in the past month as Bollard reiterated the divergence of monetary policy between New Zealand and Australia, where rates have been rising for the past three months. Bollard said he tried to combat the market’s tendency to “price some degree of interest rate normalisation” once investors guessed the OCR had hit its bottom by adopting his outlook on how long interest rates would remain depressed. “We believe this communication has helped reduce the extent to which markets priced near-term OCR increases,” he said in his report. The trade-weighted index for the New Zealand dollar, the central bank’s preferred method of tracking the currency, has climbed more than 24% from its low in March, and has damped Bollard’s preferred export-led recovery. “The high level of the New Zealand dollar has limited the scope for exports to contribute to the recovery,” he said and the central bank predicts the 90% gain in dairy prices on Fonterra Cooperative Group’s online auction website over the past four months have largely been offset by resurgent currency. New Zealand climbed out of its first recession in a decade in the second quarter this year as returning expatriates and an inflow of new migrants helped underpin the housing market, and boost business and consumer confidence, and the bank boosted its forecast for economic growth, projecting 1.1% quarterly gains in gross domestic product in the December quarter next year and March quarter of 2011. The central bank said unemployment had been tempered by businesses cutting worker hours rather than laying off staff, and was near its trough. The Reserve Bank cut its projections for the unemployment rate, which is expected to peak at 6.7% next year, down from the 7% forecast in the September statement. Bollard highlighted the links between monetary and fiscal policy, and said “fiscal consolidation would help reduce the work that monetary policy might otherwise need to do” as the economy returns to growth. The central bank’s main policy tool came under scrutiny after Parliamentarians criticised the big our Australian-owned banks earlier this year for failing to pass on all of the OCR cuts to their customers. Faster consolidation and tweaks to the tax system could help increase the national savings rate, and lead to lower interest rates on average, he said in his report. A big uncertainty for the economy is whether consumer spending will follow on from the resurgent property market, with households taking a “very cautious” approach to their spending decisions, Bollard said. Consumer spending has shown a small spark ahead of the Christmas shopping season, with core retail spending on electronic cards, which excludes auto-related sales, up 0.3% according to Statistics New Zealand. (BusinessWire) Source: Scoop.co.nz Excerpt: Bollard hints at earlier rate hikes; kiwi jumps Thursday, 10 December 2009, 11:00 am ### Agreement for Sale and Purchase Consult your lawyer before entering into an Agreement for Sale and Purchase. Your lawyer will ensure that all the necessary conditions are included in the agreement prior to the agreement being signed. You should never make assumptions around those conditions. By way of example: having a pre-approved finance letter from your bank does not negate the need for a financial condition to be included in your Agreement for Sale and Purchase. For more information on New Zealand property law when buying or selling a property, please call the team at Quay Law. Ph: (09) 523  2408 Excerpt: Your lawyer will ensure that all the necessary conditions are included in the agreement prior to the agreement being signed. ### Property Report : October 2009 Issue of The Rob Report for Remuera & Parnell Dear Valued Rob Report Subscriber, Please find below a copy of the October 2009 Issue of The Rob Report for Remuera & Parnell. October 2009 Issue of The Rob Report for Remuera & Parnell Regards Robert Ashton AREINZ BE (Structural) Residential Sales Specialist TEL +64 9 520 8888 | Mob +64 21 633 398| Fax +64 9 520 8880 | email robert.ashton@bayleys.co.nz Bayleys Remuera, 55a Remuera Road Newmarket, Auckland, New Zealand Bayleys Real Estate Ltd, Licensed under the REA Act 2008 Excerpt: Please find below a copy of the October 2009 Issue of The Rob Report for Remuera & Parnell. ### 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 Excerpt: 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. ### 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 Excerpt: Rents up, mortgage payments down Thursday, 26 November 2009, 11:29 am ### Govt raises bar for migrant kids By Lincoln Tan : Source NZ Herald Work-permit-holders in the lower income bracket will find it a lot tougher to put their children in New Zealand schools from next month. Immigration policy changes taking effect on November 30 will mean children of work-permit- holders under the essential-skills policy who earn $33,675 or less will no longer be considered as domestic students. Parents will therefore have to pay international-student fees if they want their children to study in local schools. Domestic students enjoy free education, but international students have to pay fees of between $10,000 and $15,000 per child annually to study at primary, intermediate and high schools. "The minimum income threshold must be met and maintained wholly by the salary or wages of a parent or parents holding the work permit," Immigration New Zealand said in a circular distributed to immigration advisers. "This is to ensure that the children have an appropriate level of financial support, given that these families are not eligible for state-funded income support." However, an Immigration spokesman told the Herald that children of parents whose initial work permit was issued before the end of this month could carry on with their studies as domestic students. Migrant Action Trust, a migrant advocacy group, says the changes will just be another "trap" for migrant workers. "Migrant workers will accept significantly lower pay - way below industry standards in their skilled area - just to cling on to the dream of residency, so many skilled migrant workers fall into the lower salary bracket," said trust spokeswoman Agnes Granada. "Because many come here for the sake of their children, they will become victims of this policy change." The trust presented a petition last Saturday asking Immigration Minister Jonathan Coleman to grant amnesty for migrant workers who have lost their jobs in the recession. A spokeswoman for Dr Coleman said the minister couldn't comment as he had not yet seen the petition, but said the policy changes were aimed at ensuring adequate support for children of temporary migrant workers coming to New Zealand. "The minimum income threshold helps ensure that essential-skills temporary work-permit-holders have a salary enough to look after a family in New Zealand," the spokeswoman said. "The threshold is set at the lowest possible level to ensure children are adequately supported." In other policy changes taking effect on the same day, a special Philippines work policy will allow a limited number of skilled workers, including 100 nurses, 20 farm managers and 20 engineers, to work in New Zealand at any one time for a period of up to three years. Immigration NZ said that under the policy, nurses from the Philippines would be able to work for a district health board while obtaining occupational registration. A separate Vietnam special-work policy will also allow 100 chefs and 100 engineering professionals to work here under the same terms. Meanwhile, Immigration NZ head Andrew Annakin announced last week that the Pacific division, set up Mary Anne Thompson in 2005 when she headed the service, would be reintegrated back into the core service. An Auditor-General's report in June found that problems were worse in the division than elsewhere in the agency, which is part of the Department of Labour. Ms Thompson resigned last year after accusations of conflict of interest in helping her family members to gain residency. Labour Department CEO Christopher Blake said the new structure "will ensure clear lines of accountability and that the workings of the Pacific division are aligned with the rest of Immigration New Zealand". "Recent review findings have informed the way Immigration New Zealand has organised and identified the requirements to deliver immigration services in the most effective and efficient ways. The change is designed to minimise risks to current work and any uncertainty and instability to the department." CHANGES TO IMMIGRATION POLICY From November 30: *Children of essential-skills work-permit-holders who earn below $33,675 will no longer be regarded as domestic students. *Special work policies will allow 100 nurses, 20 farm managers and 20 engineers from the Philippines and 100 chefs and 100 engineers from Vietnam to work here. *Nurses from the Philippines can now work for a district health board while obtaining New Zealand occupational registration Excerpt: Work-permit-holders in the lower income bracket will find it a lot tougher to put their children in New Zealand schools from next month. ### Residency 'carrot' lures rich investors By Lincoln Tan : Source - New Zealand Herald Thousands of wealthy foreigners are lining up to move here, just weeks out from the introduction of business migration laws that will grant them residency almost immediately. Under a new Entrepreneur Plus immigration category - effective on November 30 - entrepreneurial migrants who create at least three fulltime jobs and invest $500,000 in their business will be offered a fast track to residency. Currently, entrepreneur migrants are issued with a long-term business permit and can apply for residency only after two years. Although there is no minimum investment capital required, neither is there a guarantee their residency application will be approved. The new scheme will grant conditional residence virtually as soon as an application is made. "There is no time requirement that you must have operated your business for to be successful under this category," the Immigration New Zealand website says. "The Entrepreneur Plus category provides a faster track to residence for migrants who can demonstrate they have been actively participating in business and contributing to New Zealand's economic development." About 12,000 people have registered their interest in the scheme through the service's website, with 189 looking to invest $1.5 million or more - a total potential investment of at least $283 million. The service said it has also received formal expressions of interest from 63 potential investors, and 47 had been invited to apply. The most interest had come from would-be business migrants in the United States, Britain, India, the Philippines and Ireland. Property development, education, training and tourism were among the most popular areas for potential investment, an Immigration NZ spokesman said. The Association for Migration and Investment said the Entrepreneur Plus category would provide an incentive to invest more money - and create more employment - as it removed migrants' concerns about the need for future residency applications. "Previously, the only option available for business applicants was the long-term business visa, which is not a residence visa, and many applicants under this policy sought to minimise their business investment," it said. But chairwoman Coral Wong believed only a small percentage of the 12,000 would apply. "It's easy to get excited at the numbers, but $500,000 is still a lot of money for migrants to be investing in NZ and there won't be masses who have that amount to spare." Marco Chan of Hong Kong, who plans to open a restaurant in Auckland, said the offer of "immediate residency" was key to his decision to apply under the new category. CHANGE OF FORTUNES PREVIOUS POLICY Investment capital: None. Job-creation requirement: None. Length of time to residency: Available after two years. NEW POLICY Investment capital: $500,000. Job-creation requirement: Minimum three fulltimers. Length of time to residency: Conditional as soon as requirements met. EARLY INTEREST * 12,000 looking to invest at least $500,000. * 189 want to invest $1.5 million or more. Excerpt: Thousands of wealthy foreigners are lining up to move here, just weeks out from the introduction of business migration laws that will grant them residency almost immediately. ### 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://web.archive.org/web/20121226043540/http://www.reaa.govt.nz:80/registry Excerpt: 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. ### 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 Excerpt: A new body to keep an eye on Real Estate Agents comes into force today. ### 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. Excerpt: Outlined below are a number of reasons why implementing a trust structure could possibly be of benefit to you and your family ### 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. Excerpt: Beef, sheepmeat and mussel farmers will have to wait until the middle of next year before export demand picks up, says a leading bank. ### 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 Excerpt: Please find attached a copy of The Rob Report for Remuera & Parnell (September 2009). ### 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 Excerpt: 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. ### 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 Excerpt: In this “legal hint” I intend to cover Family Trusts and some of the parties involved in a Trust. ### 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. Excerpt: 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 ### 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. Excerpt: 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. ### GST: accounting for land and other high-value assets Hon Peter Dunne Minister of Revenue Thursday, 5 November Media Statement Dunne: Proposed GST rule changes on sales of land, high-value assets Law changes to the GST rules on sales of land and other high-value assets are the focus of a discussion document released today by Revenue Minister Peter Dunne. “The proposals target sellers and buyers in transactions involving high-value assets. In these transactions GST revenue can be lost by the government from a small minority of taxpayers deliberately using differing GST accounting treatments or winding up a vendor company so that no GST is paid.” “A conservative estimate puts the loss of GST revenue from the property development sector through such activities at about $50 million a year, and probably growing,” Mr Dunne said. “That is clearly unacceptable and will be stopped. “The discussion document seeks public feedback on proposals for stopping these activities, as well as for clarifying a range of other GST issues for high-value transactions and making them more consistent – which is in everyone’s best interest. “The main proposal is to introduce a mechanism known as a domestic reverse charge, whereby the obligation to account for GST in transactions involving land, other assets worth more than $50 million, and those involving ‘going concerns’, would be shifted from the seller to the buyer. “As well as addressing revenue risk, the reverse charge would benefit businesses by removing cash flow concerns for the parties to a transaction in the period between GST payment and input deduction. It would also reduce the risks to sellers of an unexpected GST liability arising when, for example, a transaction is incorrectly zero-rated as a going concern. “Other changes proposed in the discussion document are aimed at making it easier to account for the taxable and non-taxable use of assets on which GST is paid. Specifically, the existing change-in-use adjustment would be replaced by an approach that would apportion input tax deductions in line with the actual use of goods and services. “Similarly, the discussion document proposes clarifying the boundary between residential accommodation, which is GST-exempt, and commercial accommodation, which is not. That would ensure better consistency of GST treatment of equivalent types of accommodation. “These are some of the proposed changes set out in this very timely discussion document. I urge all interested parties to have their say on the workability of the proposals and the draft legislation that accompanies the text,” Mr Dunne said. Submissions close on 18 December. The discussion document, “GST: accounting for land and other high-value assets”, is available at www.taxpolicy.ird.govt.nz. Source : Scoop Independent News Excerpt: Dunne: Proposed GST rule changes on sales of land, high-value assets ### Which Assets should I transfer into my trust? Trust and Asset Planning. Call Quay Law for all Trust and related services. Ph - (09) 523-2408 Assets of any value can be transferred to a Family Trust. If you are of the opinion that a particular asset needs to be provided with the relevant protection that a Trust can provide then that asset should be transferred into a Trust. In most situations, you would assess the asset’s value - would this value increase over time.  If this was so then obviously the asset and its capital gain over time are worth protecting. It is essential that your most important assets are protected. For expert advice on Trust and Asset Planning please call Auckland Lawyer, Ian Mellett. The team at Auckland Law Firm, Quay Law are proud of our record and of serving our clients.  We look forward to working with you no matter what your legal requirements may be. Excerpt: Assets of any value can be transferred to a Family Trust. ### NZ business confidence levels out Robert Smith | Wednesday October 28 2009 - 03:50pm Source: The National Business Review An easing in confidence in the service, retail and manufacturing sectors has seen overall business confidence in October drop 1% from September to 48%, after reaching levels not seen in a decade last month. The latest Business Outlook report from the National Bank shows the construction industry is the most confident, with 75% of businesses surveyed predicting better times ahead in that sector. Looking at their own performance, 31% New Zealand businesses are predicting a stronger result in the future, also down 1% on the September figure. The October result follows a massive jump in confidence last month, when overall confidence jumped from 34% to 49%, with the latest result showing confidence stabilising at elevated levels. Profit expectations are also on the rise, with 12% expecting a better bottom line over the coming year – the highest reading in five years, according to the bank. Investment intentions were also up 4%, but employment intentions dropped another 2%, indicating a lack of conviction when it comes to committing cash to employment and investment as firms focus on balance sheet consolidation and de-leveraging. The report noted that with momentum improving across the economy it was “inevitable that interest rates will rise from the extraordinarily low levels they currently reside”, although it also conceded that the degree to which it occurs and its timing remained subject to debate.  Excerpt: An easing in confidence in the service, retail and manufacturing sectors has seen overall business confidence in October drop 1% from September to 48%, after reaching levels not seen in a decade last month. ### Research information presented by Bayleys Please click on the link to find  the recent presentation by Bayleys research department on the Counties region as provided to Quay Law by Peter Migounoff Counties Presentation Oct 09 Sales & Leasing, Commercial & Industrial B +64 9 298 2525 | D +64 9 295 1185 | M +64 274 920 788 | F +64 9 298 4762 | www.bayleys.co.nz Bayleys Real Estate Limited MREINZ, Counties.  A Member of Bayleys Realty Group. 6 O'Shannessey Street, Papakura, Auckland, New Zealand Excerpt: Please click on the link to find the recent presentation by Bayleys research department on the Counties region as provided to Quay Law by Peter Migounoff ### UK Immigrants unknowingly entering into NZ Sale and Purchase Agreements A new Blog Post by Steve Koerber regarding new immigrants purchasing homes with major leaky home issues, got me thinking; I back Steve up completely on this stuff and there is also another key issue when it comes to new immigrants buying NZ property, specifically people from the UK. According to Statistics NZ - 18,361 people came to live in NZ from the UK from July 2008 - July 2009. The house buying process in the UK is somewhat different to NZ. In the UK, a 'Offer of Purchase' is made to the vendor from the buyer via an Estate Agent. Ok, so you may be thinking, this is not too different to the NZ way of putting in an offer on a property via a 'Sale and Purchase Agreement'; but here is the difference: The UK offer is not a legally binding contract like the NZ one is. You can walk away from the UK one at any time and you are also at risk right up until the day of Exchange (our Unconditional day) of being Guzumped or Guzundered. So, my issue is that UK immigrants are at risk of unknowingly making offers on NZ property and not understanding at the offset that the offer is a legally binding document and they are at risk of losing their deposit or worse. To aid in this issue, I think that NZ Real Estate Agents should at all times ensure that Immigrants are made aware of the risks of an unconditional Sale and Purchase agreement and advise to set conditions especially a full building report in support of Steve's blog post as mentioned above. Posted by Jodi Cottle http://jodicottle.blogspot.com Excerpt: A new Blog Post by Steve Koerber regarding new immigrants purchasing homes with major leaky home issues, got me thinking ### Spotlight to fall on tax-dodgers By GRAHAME ARMSTRONG - Sunday Star Times Finance minister Bill English has signalled the government will next year get tough with tax-dodgers by closing loopholes that allow wage earners to avoid paying their share of tax. The IRD says the government is missing out on $300 million a year because of wage earners who squirrel away money into trust accounts to avoid paying the top income tax rate. More is lost because of earnings that are "sheltered" by a company created solely to avoid tax. The IRD, in its latest submission to the Tax Working Group, says the problem is that New Zealand's multitude of tax rates is encouraging bad behaviour. It said the trust account and company tax rates were too far out of line with income tax rates. Taxpayers were placing income in a trust account, paying 33 cents for every dollar earned, rather than the top rate of 38c. Another common ploy was for individual taxpayers to "shelter" their money by creating a company so that they paid 30 cents of every dollar earned in tax rather than the top rate. The IRD says that when the top income tax rate of 39 cents (now 38 cents) was applied to earnings of $60,000+ in 2000, a flood of taxpayers rearranged their finances to avoid the new regime. English said large-scale "legitimate avoidance behaviour" by higher-income earners undermined the goodwill of lower-income earners. "It's quite telling that there has been virtually no growth in the number of people paying tax on $1 million of annual income, since the 39 cent top personal tax rate was introduced 10 years ago. "As a country, we want families, businesses, accountants and lawyers looking at how to unlock greater income and productivity, not working out how to minimise their tax. "We don't want people spending their time and resources trying to avoid tax. We also don't want IRD devoting all its time to chasing tax and compliance issues." The IRD also advised the working group that last year the losses claimed by people with rental properties were $575m more than the income declared from residential rentals. This meant that the government lost a further $150m in revenue despite a doubling in the total value of all rental properties. The Tax Working Group, with representatives from Treasury, Victoria University and Inland Revenue, has so far put forward proposals to cut income tax rates, with extra revenue collected from an increase in the GST and the imposition of a capital gains tax on property. The group's work will culminate in a public conference hosted by the university in December. English said the government would consider the group's findings in the New Year and "any changes will be signalled in Budget 2010". "Equity and fairness" would be central to any reform. New Zealand's tax system was distorted, English said, not just in what was taxed but what was not taxed. "Most people would see it as unfair that speculators can reap large tax-free gains while low and middle-income workers are taxed on every dollar they earn." Prime Minister John Key also hinted yesterday that tax reform could also mean some tax cuts for wage earners. While ruling out tax cuts promised before the last election, Key was reported in the the Dominion Post saying some tax relief could still form "part of the mix". "Wholesale, unfunded tax cuts look highly unlikely and irresponsible. But making savings in one area to potentially promote tax cuts in another [is different]." Excerpt: Finance minister Bill English has signalled the government will next year get tough with tax-dodgers by closing loopholes that allow wage earners to avoid paying their share of tax. ### Your Will is Law Lawyers in Auckland : Quay Law NO WILL? Dying intestate can be costly. If you die without a will or your will is deemed to be invalid, then you are said to have died intestate. In this event, administration of your estate is entirely determined by legislation and not you. Your wishes are not relevant. IS YOUR CURRENT WILL OUT OF DATE? We recommend that you review your Will regularly. By way of example. Some wills include specific bequests to particular heirs e.g. my house (address) to “A” and my shares (company name) to “B”. Do you still own that house at that address and those shares in that company? Ph (09) 523 2408 | Fx (09) 523 2409 Email  quaylaw@quaylaw.co.nz    www.quaylaw.co.nz  www.lawyerinauckland.co.nz Excerpt: If you die without a will or your will is deemed to be invalid, then you are said to have died intestate. ### Net migration at five-year high   Dr Ganesh Nana, chief economist at BERL   The latest annual net migration figure of more than 17,000 is the highest in five years. The figure is still well down from 2003's high of more than 40,000, but it is much higher than last year's paltry 4400. Source : http://www.3news.co.nz Excerpt: The latest annual net migration figure of more than 17,000 is the highest in five years. ### Housing market indicator firms in September NZPA | Wednesday October 21 2009 - 11:28am An indicator of the housing market firmed in September, led by Wellington and Auckland. The Mike Pero Mortgages -- Infometrics property cycle indicator lifted to 6.99 last month from 6.66 in August. The indicator runs from minus-10, showing a strong downturn, to plus-10, showing a strong upturn. It moved into positive territory in May, with a reading of 0.34, after 20 negative monthly readings. By June the indicator was up to nearly 4, and in July was close to 6. The indicator looks at three main figures from the Real Estate Institute of New Zealand -- changes in the number of houses sold, changes in price, and the time taken for houses to sell. Mike Pero Mortgages chief executive Shaun Riley said growth in house sales held firm in September at 39 percent a year. The median house price rose to $350,000, up 6.1 percent on September last year, and just 0.4 percent below the peak recorded in November 2007. The time taken for houses to sell, eased to a two-year low of 33 days in September, one day fewer than in August, he said. Once again Auckland and Wellington were showing strong signals and were leading the market according to the indicator, Mr Riley said. Wellington led the country with a reading of 8.41 in September from 7.79 in August, while Auckland was at 8.27 last month from 7.50. http://www.nbr.co.nz Excerpt: An indicator of the housing market firmed in September, led by Wellington and Auckland. The Mike Pero Mortgages — Infometrics property cycle indicator lifted to 6.99 last month from 6.66 in August. ### Family Trusts Because of the risks you may take, it is important for assets to be protected.  It is for this reason that people choose to use a family trust to hold their assets e.g shares, family home, other assets. It is not a matter of only placing your assets in a family trust.   The documentation associated with transferring the home to the trust must have integrity and contain appropriate clauses to ensure that full protection occurrs. 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. Website:  www.quaylaw.co.nz   Phone:   (09) 523-2408         Fax:  (09) 523-2409 Excerpt: Because of the risks you may take, it is important for assets to be protected. ### FREE : Find out your estimated market value of your home! Information brought to you by Quay Law - Property Law Specialists Quotable Value Limited (QV) is New Zealand’s largest valuation and property information company. QV operates from 22 offices throughout New Zealand and has subsidiary companies in three states of Australia. Want to know how your home's estimated market value has changed over the last two years? You can find out with My House Value Tracker. You can check out this report FREE until 25 October 2009. CLICK ON LINK FOR FREE REPORT: http://www.qv.co.nz/FreeReport.aspx Excerpt: Quotable Value Limited (QV) is New Zealand’s largest valuation and property information company. QV operates from 22 offices throughout New Zealand and has subsidiary companies in three states of Australia. ### Twitter and Facebook users face higher insurance premiums Facebook and Twitter users could face bigger insurance premiums because they are inadvertently telling 'digital burglars' when to target their homes. Insurer Legal & General has warned that users of social networking sites are posting personal details like their address online and then updating the sites with details of when they are holiday. It is an open invitation to 'intelegnce gathering burglars' to target the address for easy pickings, a report commissioned by the Insurer Legal & General. The Digital Criminal report says our need to inform our friends of every mundane detail of our lives is storing up trouble. The report also warns websites such as Google Earth are making burglars' lives much easier, once they have identified a user's address, they can use the internet mapping service to case the property. The report was compiled by reformed criminal Michael Fraser of the BBC's Beat the Burglar. Legal & General says the insurance industry is monitoring the risk and premiums may rise accordingly. Article Keywords - facebook, twitter, facebook abuse, twitter abuse, dangers of facebook, dangers of using twitter, protect your online identity, facebook effect on insurance preimums, twitter effect on insurance preimums Written By Ted on 2009-09-21 18:08:59 http://www.theexpatdirectory.com/articles.php?c=twitter_facebook_insurance_premium Excerpt: Facebook and Twitter users could face bigger insurance premiums because they are inadvertently telling ‘digital burglars’ when to target their homes. ### Trust and Related Legal Documents Ian Mellett - Auckland Lawyer and Principal of Quay Law Please find below a list of legal documents required when establishing and / or managing a Trust 1. Trust Deed. 2. Trustees Resolution. 3. Deed of Acknowledgment of Debt. 4. Deeds of Forgiveness of Debt. 5. Gift Statements. 6. Deed of Nomination 7. Agreement for Sale and Purchase for the trust’s purchase of any property. 8. Deed of Indemnity. 9. Memorandum of Wishes 10. Will (Recommended) 11. Enduring Powers of Attorney (Recommended) 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 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. Website:  www.quaylaw.co.nz Phone: (09) 523-2408  Fax:  (09) 523-2409 Excerpt: Please find below a list of legal documents required when establishing and / or managing a Trust ### House prices creeping up NZ Herald New Zealand house prices recovered last month to be close to levels of a year ago, supporting views the economy has emerged from its longest recession in more than 30 years, Reuters reported today. Quotable Value's residential house price index fell 1.1 per cent in the year to September, compared with a 2.8 per cent decline the previous month - the sixth month in a row the trend in property values has improved. The government agency said there were signs of more activity in the market with an increase in the number of sales and more listings in many areas. However the activity is patchy, with some markets much stronger than others, making it harder to estimate national trends, QV spokeswoman Glenda Whitehead said in a statement. "The market is still clearly in a state of change," she told Reuters. The housing market, once a major inflationary concern for the Reserve Bank of New Zealand (RBNZ), peaked in late 2007, but fell sharply because of high borrowing costs and prices, while consumers cut their spending amid a deepening recession and rising unemployment. QV said the average sale price rose 0.7 per cent to NZ$387,567 ($287,087) on the previous month. House prices in Auckland, the biggest population and commercial centre, were 0.6 higher in September from a year ago, compared with a 1.9 per cent fall in August, while the capital, Wellington, was up 1.1 per cent after a 0.1 per cent drop the month before. The average sale price for the Auckland region increased from $502,022 to $507,617. Most of the main centres showed higher values than a year ago, while most of the provincial centre were still below September 2008 prices. The monthly residential price report is based on sale prices of properties over the past three months compared with sales over the corresponding three-month period a year earlier. The data is not seasonally adjusted. http://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=10602711 Excerpt: New Zealand house prices recovered last month to be close to levels of a year ago, supporting views the economy has emerged from its longest recession in more than 30 years, Reuters reported today. ### The Rob Report for Remuera & Parnell (August 2009 Issue) To friends and valued clients of Quay Law. Please find below a link to the property report created by Robert Ashton.  This report covers the areas of Remuera and Parnell and includes property sales for the month of August 2009, Dear Valued Rob Report Subscriber, Please find attached a copy of The Rob Report for Remuera & Parnell (August 2009 Issue). Have a great month. 0908The Rob Report August 2009 Remuera & Parnell Robert Ashton AREINZ BE (Structural) Residential Sales D +64 9 520 8890 | M +64 21 633 398 | F +64 9 520 8880 | E robert.ashton@bayleys.co.nz | Bayleys Real Estate Limited. A Member of Bayleys Realty Group. 55A Remuera Road, Newmarket, Auckland, New Zealand Excerpt: Please find below a link to the property report created by Robert Ashton. This report covers the areas of Remuera and Parnell and includes property sales for the month of August 2009, ### Marriage and Wills The Publishing Group has an enviable reputation when it comes to producing quality magazines. Published Quay Law Article : Marriage and Wills Your wedding is approaching, your bridesmaid and grooms outfits are finalised, the church and reception venue is booked and every item on that all important “checklist” has been ticked or scheduled as you plan the wedding of your dreams. In preparing for your wedding, your focus is on the beginning of a new adventure with a special someone. The last thing you want to think about is death and Wills … but you should! Marriage is a life-altering event that forces you to make all kinds of changes. As you prepare for your new life together, you should both sit down and be realistic about the future and the fact that none of us lives forever.   The legalities Your Will is an important legal document - a document that ensures that your assets are bequeathed to those persons or entities you wish to benefit from your estate. It is essential that everyone over the age of 18 years should have a Will. (Click on link below for full published Quay Law article) Click on Link for FULL ARTICLE Marriage and Your Will  This article was written by Ian Mellett BComm LLB H Dip Tax who is a Barrister and Solicitor at Quay Law in 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 Excerpt: Your wedding is approaching, your bridesmaid and grooms outfits are finalised, the church and reception venue is booked and every item on that all important “checklist” has been ticked or scheduled as you plan the wedding of your dreams. ### Quay Law Newsletter - October 2009 To all clients and friends of Quay Law. Auckland Law Firm, Quay Law Quay Law is focused on providing value added services to you and in doing so we have embraced technology and are using many of the technical forums available to us in this age. To keep you up to date with recent articles, legal tips and interesting related matters please follow Quay Law on Facebook , Twitter or view our  website and legal blogs. Over the past months the Quay Law team have written various articles that have been published or placed on our website and legal blogs. For your reference please find below our recent articles that may be of interest to you.  Unexpected costs when purchasing a property   Immigration in the Current Time  Enduring Powers of Attorney – Law Change   Administration of an Estate – Checklist for the Executor   Estate Planning in an Economic Downturn In addition, you may wish to  follow this  link to view our weekly tips of the week. These are short legal notes that we share with you and certainly hope that they will provide you with useful and thought provoking  information. We hope that you have found this newsletter and included articles / legal tips to be of value.  Please do not hesitate to contact us should you have any questions, or require any assistance. Kind Regards Ian Mellett and the Quay Law Team www.quaylaw.co.nz www.ianmellett.wordpress.com www.immigratenz.wordpress.com Skype contact : Quaylaw Excerpt: Quay Law is focused on providing value added services to you and in doing so we have embraced technology and are using many of the technical forums available to us in this age. ### Enduring Powers of Attorney Ian Mellett BComm LLB H Dip Tax is a Barrister and Solicitor at Quay Law in 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. An Enduring Power of Attorney is a simple way of ensuring that if for any reason you become incapacitated, or are unable to manage your affairs, the person you have appointed as your attorney can attend to these matters for you. They are powerful documents however in that they continue to have effect in the event of you becoming incapacitated mentally, so you should exercise care in your appointment. There are two types of attorney, Property (in which two people can act as an attorney) and Personal Care and Welfare (in which you can only have one attorney). The Welfare attorney only comes into effect when you become mentally incapacitated, whereas the Property attorney can have effect immediately if you wish. Auckland Lawyer, Ian Mellett BComm LLB H Dip Tax is a Barrister and Solicitor at Auckland Law firm, Quay Law. 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.  Click on link to find our Quay Law Web Site Click on link for further Quay Law legal tips related to Enduring Powers of Attorney Excerpt: An Enduring Power of Attorney is a simple way of ensuring that if for any reason you become incapacitated, or are unable to manage your affairs, the person you have appointed as your attorney can attend to these matters for you. ### Confidence building on "tough" job market By JAMES WEIR - The Dominion Post Workers think there will be more jobs around in a year, and that they will be making more money, according to a bank survey. But for now, times are still "extremely tough" on the job front, with unemployment expected to keep rising to about 7 per cent in the middle of next year. Wage rises are slowing down fast. Workers are feeling much more secure about their jobs and confidence about the labour market is improving, according to the Westpac McDermott Miller Employment Confidence survey. As job security improved, that would eventually translate to a greater willingness to spend, and a greater mood to demand higher wages, Westpac senior economist Donna Purdue said. The bank survey's overall employee confidence index rose 6.9 points between the June and September quarters to reach 103. It was the second biggest quarterly gain since the survey began in June 2004. An index above 100 indicates there are more optimists than pessimists, while a number below 100 indicates that pessimists outnumber optimists. The survey was carried out in the first half of September. The survey showed the number of workers being paid more than a year ago had fallen. A net 15 per cent of those surveyed said they were better off than a year ago, down from a net 19 per cent in June. More people said jobs were hard to get, at a net 66.5 per cent in September, from a net 65.3 per cent in June. Both of those indicators were the lowest since the survey started five years ago, indicating that many people were getting little or no wage rise. Sales of big ticket products such as cars and furniture were hit the hardest in a time of low job security, so as security improved there should be a lift in sales. The survey result suggested that the worst was over for the jobs downturn. Excerpt: Workers think there will be more jobs around in a year, and that they will be making more money, according to a bank survey. ### Silver lining to credit crunch By Andrea Milner - NZ Herald The time needed to pay off the average mortgage has dropped by half since the financial crisis started. Thanks to lower interest rates, mortgage broker Darren Pratley says borrowers coming off high fixed rates who can keep their mortgage payments the same can cut their loan term dramatically. This time last year, the typical monthly payment for a borrower with a $300,000 mortgage on a 30-year term, paying the one-year fixed rate of 9.2 per cent, was $567.48 a week. Now, with one-year fixed terms at 5.5 per cent, they could pay $393.40 - $174.08 less. But if they kept up the higher payment, they could shave 15 years off their loan term. The catch, says Pratley, is that interest rates could be higher when the one-year fixed rate expires. "So it gives you a one-year window to reduce your mortgage amount." The borrower dropping from an interest rate of 9.2 per cent to 5.5 per cent but keeping their payment the same would owe $287,887 after one year. Pratley says: "There is a real window of opportunity there with that lower rate if you're coming off that sort of level." A good broker, Pratley says, can help the client split their loan, for example putting part of it on a one-year fixed rate to give the flexibility of paying it off faster, and part on five years to give certainty. Mortgage broker Geoff Bawden says borrowers commonly believe the interest rate determines the best deal when it comes to home loans. While that is important, Bawden says getting the right structure often gives greater savings. The longer the loan term, the more it costs the borrower in interest, so paying more than the minimum amount required is a way to reduce that cost. "Right now there are a lot of people who are coming off high fixed-interest rates, which provides an opportunity for them to consider whether they might be able to pay more than the required minimum," he says. A homeowner with a $250,000 mortgage coming off a fixed rate of 9.4 per cent to a floating rate of 6.4 per cent could pay $625 a month less. But if they continued to pay that voluntarily, they would halve a standard 30-year loan term to 15 years and save more than $176,000 in interest. Even someone who applies the cost of two coffees a week - about $9 - to boost their mortgage payments would reduce a 30-year term by two years and save interest of more than $2600. Cash in with a few dollars more Chris Christofides' home loan just rolled off a fixed interest rate of 8.95 per cent to a new rate of 5.5 per cent, but he opted to make the same monthly payments of $1690. He says as he was able to manage the payments, he decided to keep it up, because he knocks an extra $350 off his loan principal each month. "We all look to have a few more dollars in our pocket, but ... more often than not, they're wasted," Christofides says. "Even a small amount of financial discipline is money in the bank." http://www.nzherald.co.nz/interest-rates/news/article.cfm?c_id=235&objectid=10595401 Excerpt: The time needed to pay off the average mortgage has dropped by half since the financial crisis started. ### PM throws doubt on capital gains tax John Key says the capital gains tax is inefficient and failed to stop housing booms overseas. Photo / Sarah Ivey By Patrick  Gower - NZ Herald Prime Minister John Key has cast doubt on the likelihood of a capital gains tax, saying it would take "meteoric evidence" to persuade him it would work. The tax on property is being investigated for the Government by a top-level review, and Labour leader Phil Goff opened the way for an accord on the contentious issue by saying it was open for talks. But Mr Key shut that down yesterday, saying he would take "an awful lot of convincing". He said the tax was inefficient and did not achieve the objective of stopping a housing boom. He said it had not worked that way in the United States, Australia and the United Kingdom. "It's been my longstanding view capital gains taxes are inefficient and don't work. Unless there was some meteoric evidence out the [tax review group] I would not vote for one." Mr Key has previously refused to rule out a capital gains tax, so as not to place any limits on what the review group comes up with. He has said he does not favour one, but strengthened his opposition yesterday after Mr Goff's comments raised the possibility of a "grand coalition" of the two parties introducing the tax. Mr Goff said the party's bottom line would be that the tax would not apply to family homes. A capital gains tax on property investment is seen as one way to reduce the tax advantages of rental housing, curb house price inflation and send investment into productive sectors of the economy. The review group is due to report back this year. Mr Key said he would be open to other proposals to "beef up" methods of taxing property investment. Excerpt: Prime Minister John Key has cast doubt on the likelihood of a capital gains tax, saying it would take “meteoric evidence” to persuade him it would work. ### Population growth helps housing market 3 News New Zealand had its highest annual net migration gain in nearly five years during the 12 months to August, figures published by Statistics New Zealand (SNZ) today show. The gain in population was seen as helping the recovery of the housing market. Global financial turmoil was thought to have lifted the number of New Zealanders returning after living overseas, as well as reducing the numbers seeking to live elsewhere. In the year to August, New Zealand's net migration gain was 15,600, up from 4900 in the August 2008 year, and the highest annual net gain since the November 2004 year, SNZ said. The 87,500 people arriving on a permanent and long term (PLT) basis was up 800 or 1 percent on a year earlier. At the same time, the 71,900 PLT departures were down 9900 or 12 percent on a year earlier. For just the month of August, PLT arrivals exceeded departures by 1600, compared to 500 a year earlier. There were 2000, or 29 percent, fewer PLT departures last month, including 1800 fewer departures to Australia and 200 fewer to Britain. PLT arrivals for the month were down 900 from August 2008, with 1000 fewer arrivals of non-New Zealand citizens, partly offset by 200 more arrivals of New Zealand citizens, SNZ said. PLT arrivals of non-New Zealand citizens had been declining since April. Seasonally adjusted, PLT arrivals exceeded departures by 1600 in August, down from 2400 in July, but similar to the level in June. NZPA http://www.3news.co.nz/Population-growth-helps-housing-market/tabid/421/articleID/121969/cat/537/Default.aspx?ArticleID=121969 Excerpt: New Zealand had its highest annual net migration gain in nearly five years during the 12 months to August, figures published by Statistics New Zealand (SNZ) today show. ### Kiwis buy into brand formulas A basic franchise, such as lawnmowing, might provide income from the first day. Photo / Northern Advocate By Susan Edmunds - NZ Herald As the recession has hit New Zealand's workforce, the number of people considering buying a franchise has soared. Someone else has set up the brand, there's a need for the product - all they have to do is sign up and buy in. But experts say it isn't as easy as signing an agreement, becoming the boss and watching the money roll in. Westpac has seen a big increase in people asking about finance to get into a franchise, says Daniel Cloete, national franchising manager. Many of them have been looking to invest a redundancy payout. "And the number of conversions - that's people who actually do buy the business - has also increased." Simon Lord, the publisher of Franchise NZ magazine, has seen a similar rise. He says the first thing for would-be franchisees to get clear is what a franchise is. Broadly, a franchise involves someone (the franchisor) creating a system and then replicating the business, giving others (franchisees) the right to operate the same system, under the same name, for a fixed term. The franchisor makes money from the franchise purchase and ongoing franchise fees. Because franchisees are selected for their aptitude and guided through a training process, a franchise business can be a safer bet for those striking out on their own. Lord says: "Very few franchisors would sell a franchise if they did not think it would succeed." The franchisor will have tried different methods to build the business, and will be able to tell franchisees what will work. "You get a brand name, a product or service with a profit margin built in, a market for it, and buying power," Lord says. Cloete agrees franchises are less risky than other small businesses. Banks are more likely to lend to them, because they have proven systems. "We can compare the franchise to other, similar businesses and get a good idea of the business fundamentals - it allows us to do much more aggressive lending." People should work out what industry they want to be in, what they want to get out of the business, and what they are willing to put in. Lord warns: "Look for something that is of interest to you - you're going to be working really hard in it for the first couple of years at least. "Choose something that suits your abilities and skills. You need to enjoy it and you need to get the results you want, such as flexible working hours, financial return, the potential to build up the business and sell it on or the ability to work with family." Franchises can be bought for as little as $5000 but Lord says what you get out of it depends on what you invest. A basic franchise, such as lawnmowing, might provide income from the first day, but a fast food restaurant might find it tough for a couple of years. Potential franchisees should also investigate the industry, considering potential threats to its future. Lord says if you talk to franchisors and don't get on, don't sign up. When it comes to signing the agreement, franchisees cannot ask too many questions. Lord's website has 230 examples to put to franchisors. Any figures, such as potential income, should be scrutinised carefully. Talk to other franchisees to find out the reality of the business, and get a specialist lawyer and accountant's advice. Miles Agmen-Smith, a commercial lawyer who specialises in franchises, says the agreement is like a lease. "It's only a right to use a business for a set term, possibly with some renewals." A typical agreement could be anything from 20 to 50 pages, accompanied by a manual laying out the basic operation of the business. The agreement covers the rules both parties have to live by. It should include things like the ongoing franchise fees, levies for advertising and other costs, such as required stock levels. The major downside with franchising is it allows you to be your own boss only to a point. Lord says: "You're not totally free to do anything you want with the business. You have to work within the parameters set by the franchisor." And it's not easy to get out of an agreement early. Agmen-Smith says: "It's a binding obligation for a term, providing the other side does its part. It's important to be very clear at the beginning about [the rights of both parties] in different situations." There is no specific legislation covering the franchisee/franchisor agreement. Generally, a franchise cannot be sold on to just anyone - the franchisor has to give the okay. He says: "It's up to you to make your own decision. Ultimately the buck rests with you. It's not like being employed, the franchisor won't pay your salary and won't be on your back all the time. You'll get a huge amount of help and support but ultimately you have to make it work." http://www.nzherald.co.nz/small-business/news/article.cfm?c_id=85&objectid=10590995&pnum=0   As the recession has hit New Zealand's workforce, the number of people considering buying a franchise has soared. Someone else has set up the brand, there's a need for the product - all they have to do is sign up and buy in. But experts say it isn't as easy as signing an agreement, becoming the boss and watching the money roll in. Westpac has seen a big increase in people asking about finance to get into a franchise, says Daniel Cloete, national franchising manager. Many of them have been looking to invest a redundancy payout. "And the number of conversions - that's people who actually do buy the business - has also increased." Simon Lord, the publisher of Franchise NZ magazine, has seen a similar rise. He says the first thing for would-be franchisees to get clear is what a franchise is. Broadly, a franchise involves someone (the franchisor) creating a system and then replicating the business, giving others (franchisees) the right to operate the same system, under the same name, for a fixed term. The franchisor makes money from the franchise purchase and ongoing franchise fees. Because franchisees are selected for their aptitude and guided through a training process, a franchise business can be a safer bet for those striking out on their own. Lord says: "Very few franchisors would sell a franchise if they did not think it would succeed." The franchisor will have tried different methods to build the business, and will be able to tell franchisees what will work. "You get a brand name, a product or service with a profit margin built in, a market for it, and buying power," Lord says. Cloete agrees franchises are less risky than other small businesses. Banks are more likely to lend to them, because they have proven systems. "We can compare the franchise to other, similar businesses and get a good idea of the business fundamentals - it allows us to do much more aggressive lending." People should work out what industry they want to be in, what they want to get out of the business, and what they are willing to put in. Lord warns: "Look for something that is of interest to you - you're going to be working really hard in it for the first couple of years at least. "Choose something that suits your abilities and skills. You need to enjoy it and you need to get the results you want, such as flexible working hours, financial return, the potential to build up the business and sell it on or the ability to work with family." Franchises can be bought for as little as $5000 but Lord says what you get out of it depends on what you invest. A basic franchise, such as lawnmowing, might provide income from the first day, but a fast food restaurant might find it tough for a couple of years. Potential franchisees should also investigate the industry, considering potential threats to its future. Lord says if you talk to franchisors and don't get on, don't sign up. When it comes to signing the agreement, franchisees cannot ask too many questions. Lord's website has 230 examples to put to franchisors. Any figures, such as potential income, should be scrutinised carefully. Talk to other franchisees to find out the reality of the business, and get a specialist lawyer and accountant's advice. Miles Agmen-Smith, a commercial lawyer who specialises in franchises, says the agreement is like a lease. "It's only a right to use a business for a set term, possibly with some renewals." A typical agreement could be anything from 20 to 50 pages, accompanied by a manual laying out the basic operation of the business. The agreement covers the rules both parties have to live by. It should include things like the ongoing franchise fees, levies for advertising and other costs, such as required stock levels. The major downside with franchising is it allows you to be your own boss only to a point. Lord says: "You're not totally free to do anything you want with the business. You have to work within the parameters set by the franchisor." And it's not easy to get out of an agreement early. Agmen-Smith says: "It's a binding obligation for a term, providing the other side does its part. It's important to be very clear at the beginning about [the rights of both parties] in different situations." There is no specific legislation covering the franchisee/franchisor agreement. Generally, a franchise cannot be sold on to just anyone - the franchisor has to give the okay. He says: "It's up to you to make your own decision. Ultimately the buck rests with you. It's not like being employed, the franchisor won't pay your salary and won't be on your back all the time. You'll get a huge amount of help and support but ultimately you have to make it work." http://www.nzherald.co.nz/small20business/search/results.cfm?kw1=small%20business Excerpt: As the recession has hit New Zealand’s workforce, the number of people considering buying a franchise has soared. ### The correct lawyer for your property transaction. Auckland Law Firm : Quay Law Barrister and Solicitor Before signing any contract for Sale and Purchase, you should consult with your lawyer as the risks when dealing with a transaction of this size could be far reaching. This legal assistance will minimise the risk to your personal circumstances. But, if you do not have a property lawyer, how do you find one? Word of mouth, perform an internet search for a property lawyer in your area, consult the  Law Society website  or visit your local Citizens Advice Bureau. Remember to choose a lawyer whom you feel comfortable with. A competent lawyer will assist you through this transaction and ensure you of a good outcome for your circumstances. Excerpt: Before signing any contract for Sale and Purchase, you should consult with your lawyer as the risks when dealing with a transaction of this size could be far reaching. ### Migration stats remain strong GOOD NEWS: New Zealand gained 1600 more new migrants than those who left the country permanently in August, with a slowdown in the past exodus to Australia. By JAMES WEIR - The Dominion Post New Zealand gained 1600 more new migrants than those who left the country permanently in August, with a slowdown in the past exodus to Australia, according to latest official figures. The net migration gain for August was down from 2400 in July according to Statistics NZ figures. Far fewer people are leaving for Australia, down by almost 2000 in the month. However, the annual net migration gain of 15,600 for the past 12 months remains well up on the almost 5000 gain in the year to August 2008. The stronger migration figures are supporting a recovery in the housing market and will help underpin retail sales. Meanwhile, overseas tourists arriving in New Zealand in August were down 1 per cent on the same month last year, with a strong rise from Australian travellers offsetting a slump in other markets. Visitor arrivals (161,100) fell 1 per cent in August 2009 compared with August 2008, but visitor arrivals from Australia remained strong (up 9,200 or 12 percent). The decrease in visitor arrivals was driven by fewer visitors from Asia, with Japan (down 3,500 or 39 per cent), Korea (down 2,100 or 34 per cent), and China (down 1,900 or 29 percent) contributing most of the decline. Visitor arrivals in the August 2009 year (2.4 million) were down 69,700 (3 per cent) from the August 2008 year. New Zealanders are still taking holidays overseas as much as a year ago, but are not going as far. New Zealand residents departed on 176,300 short-term overseas trips in August 2009, unchanged from August 2008, Statistics NZ said. The increase in trips to Australia (up 3,600 or 4 per cent), boosted by travel to the Bledisloe Cup, offset falls to other destinations, including the United States (down 1,400 or 15 percent) and the United Kingdom (down 900 or 9 percent). For the August 2009 year, short-term departures of New Zealand residents numbered 1.9 million, down 76,400 (4 per cent) from the previous year.  http://www.stuff.co.nz/business/industries/2885502/Migration-stats-remain-strong Excerpt: New Zealand gained 1600 more new migrants than those who left the country permanently in August, with a slowdown in the past exodus to Australia, according to latest official figures. ### NZ's best-value house suburbs With the recession said to be ending, the experts have offered a few suggestions for where first-time home buyers should look. Photo / Paul Estcourt By  Alice Neville and Rachel Grunwell - NZ Herald  If you had $450,000 to spend on a house, where would you buy? The answer will vary wildly depending on where you work, where you grew up, where your friends are and your lifestyle. So while there is no definitive answer to the question of what suburb is the best value for money for the home buyer in Auckland - and in other parts of New Zealand - it's clear that price is not the only factor. So we've taken the most recent median sale price for Auckland - $450,000 - and asked experts where to buy now. St George Bank economists recently researched suburbs across Australia to determine which ones were likely to provide the strongest value. The study was based on criteria such as renovation potential and proximity to central business districts, transport and retail outlets, as well as strong pricing. Using similar criteria, we've chosen a group of Auckland and New Zealand suburbs that should give you good bang for your bucks. Professor Bob Hargreaves, chair in property studies at Massey University, says if you're buying an investment property, getting the best return often means choosing a suburb where houses are cheaper "Often the ones that give you the best return from a rental perspective might be a bit rough around the edges," he says. But buying your own home is not so simple. Hargreaves suggests a suburb that is not yet gentrified or is just seeing the beginnings of gentrification is the way to go. That means neighbourhoods where young, well-heeled types are just starting to move into - in Auckland, Onehunga and Ellerslie are good examples. Well-established areas are a safer bet than newer suburbs, says Hargreaves. "Age is not a disadvantage. Until suburbs become established and people become confident in them, you just don't know how it's going to turn out." New Zealand Property Investors' Federation vice president Andrew King says many areas provide good value for investors and home buyers. Waterview, Avondale, Te Atatu South are safe bets, as are places such as Mangere and Papatoetoe in the south and parts of Glenfield in the North Shore. "Those areas are quite close to work places and industry, they aren't too expensive and they provide a reasonable rental yield compared to more expensive areas," says King. Meanwhile, the Herald on Sunday went to other real estate experts outside of Auckland to ask them to pinpoint the best-value suburbs to buy in for around the national median house price of $346,750. Hamilton-based Ray White Real Estate agent Bobbie Jarvis, who has 27 years' experience in real estate in the city, says her pick for the best-value suburbs for prices around that mark would be Flagstaff and Pukete, both north of the city.  http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10598453 Excerpt: If you had $450,000 to spend on a house, where would you buy? The answer will vary wildly depending on where you work, where you grew up, where your friends are and your lifestyle. ### House market in top 10 with 1.3pc price fall New Zealand is holding its own globally, with only a slight drop in prices Photo / Richard Robinson By Anne Gibson – NZ Herald New Zealand has ranked in the top 10 housing markets in the world, but prices have still dropped. It had one of the smallest price falls lately and is ranked alongside Europe for toughing out the slump. Real estate consultancy Knight Frank has released its international house price index which compared house price changes in the second quarter of last year with the same period this year. That showed New Zealand was ninth least affected out of 32 countries. "It now appears that house prices are starting to stabilise across the world," said Liam Bailey, head of residential research at Knight Frank. BNZ chief economist Tony Alexander said the list of pessimists expecting house prices to fall was shrinking. Even one of the most powerful arms of the state turned out to be wrong, he noticed. And it has said so. "This week, Treasury revised away their previous prediction that average house prices would fall by 10 per cent over the coming year," he said. "Now they expect prices will rise slightly, though wisely don't predict by how much. "There are simply too many factors in play to take a solid stab at how much prices will move in the coming year or three. But unless one believes the world economy is going to slip back into a potential depression scenario there is little reason for believing house prices will fall." . Not everyone is delighted with the housing recovery. BNZ managing director Andrew Thorburn this week said the country's $130 billion overdraft was unsustainable. In a turn which surprised some commentators because of banks' role in fuelling the property market, Mr Thorburn worried about consumers loading up with debt. Reserve Bank Governor Alan Bollard also fretted about the housing recovery last week. "We are always very alert to not wanting to spark off an unnecessary or unbalanced housing revival," he said. Since the start of the year, housing market activity had increased. "Although still at levels comparable to previous recessions, housing turnover has risen noticeably from the lows seen through calendar 2008. "In addition, house prices have begun to increase, mainly due to unusually low numbers of houses being offered for sale," Dr Bollard said. Real estate websites were also busier last month. Trade Me Property had 938,185 visitors, up 5 per cent on July. Realestate.co.nz had 395,965 unique browsers, up 7 per cent, Harcourts.co.nz had 185,687 (+5.83 per cent ) and Open2view.co.nz 124,646 (+9.51 per cent). Real estate agent Michael Boulgaris said cheap money was helping housing recover. "With the ASB cutting its floating mortgage rate by 65 base points to a new low of 5.75 per cent, the spring property boom is yielding increased confidence among buyers, vendors and agents," he said. http://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=10597115 Excerpt: New Zealand has ranked in the top 10 housing markets in the world, but prices have still dropped. ### Caution urged on mortgage rate drop By Debrin Foxcroft - NZ Herald Top economists are warning potential home buyers to proceed with caution as another bank drops its variable mortgage rate to the lowest in 40 years. BNZ announced yesterday a 0.26 drop in its TotalMoney variable housing rate, making it the lowest variable home loan rate available in the market at 5.59 per cent. This comes one week after rival ASB Bank dropped its floating rate to 5.75 per cent and just days after Westpac dropped its floating rate to 5.69 per cent. But before potential home buyers rush out to purchase a new home, economists are warning the low rates won't last. Massey University banking studies lecturer Clair Matthews says borrowers need to consider if they can afford their mortgage at a higher rate before they take advantage of what is on offer now. "I wouldn't want people to go out and borrow money that they wouldn't have borrowed otherwise," she says. "The variable rate is at a record low and we have to expect that it will go back up." Mrs Matthews says the upward shift may not happen in the next few weeks. "But it is a matter of months rather then years." This view is supported by Shamubeel Eaqub, a senior economist with the New Zealand Institute for Economic Research. "When we look down two or three years, we expect levels to go higher, to reach a more normal level." Mr Eaqub says home buyers should expect the floating rate to return to around 7 per cent. He says the announcements from the two banks reflect a little bit of competition to get new customers. "I don't think we will see the mortgage rate wars of 2004 and 2006. The conditions are different and I'm not sure there is the same demand." Mr Eaqub says the fragile labour market and reduced access to credit means this will be a niggle rather then a full-blown competition between banks. Chris Bayliss, director of retail at BNZ, points out the most recent cut is part of an ongoing trend. "Over the past year we've reduced our variable loan rates by 4.90 per cent to ensure that we offer New Zealanders competitive rates which will enable them to reduce the principle on their loan at a quicker rate." ASB retail banking chief executive Ian Park says he doesn't believe we are seeing a return of the mortgage rate wars of the past. "We have always said when the cost of funds reduces we will pass that on to our customers. We fund off short-term funding rates as well as onshore and offshore funding rates. These have come down recently and so we have passed on the saving. We have been consistent." http://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=10598061 Excerpt: Top economists are warning potential home buyers to proceed with caution as another bank drops its variable mortgage rate to the lowest in 40 years. ### The Rob Report - Remuera & Parnell - July 2009 Please find attached a link to the copy of The Rob Report for Remuera & Parnell (July 2009). 0907The Rob Report July 2009 Remuera & Parnell Over the last few weeks we have experienced a definite increase in demand for properties in both Remuera and Parnell which has certainly kept me busy – which is great. So please accept my apologies for the delay in the delivery of the July Issue. I hope to have available the August Issue very soon. Please note that the sales data in The Rob Report will now be sorted in price order, rather than street order, which will help you compare properties in each price range. If you are thinking of selling, your chances of achieving a sale within a very short time are very high at the moment, so please do not hesitate to contact me if you would like to discuss your options. Have a great month.   Regards Robert Ashton AREINZ BE (Structural) Residential Sales D +64 9 520 8890 | M +64 21 633 398 | F +64 9 520 8880 | E robert.ashton@bayleys.co.nz | www.bayleys.co.nz Bayleys Real Estate Limited. A Member of Bayleys Realty Group. 55A Remuera Road, Newmarket, Auckland, New Zealand Excerpt: Please find attached a link to the copy of The Rob Report for Remuera & Parnell (July 2009). ### House prices rise Business Day - PAUL McBETH New Zealand house prices edged higher and properties were sold in a shorter amount of time last month as strong demand amid rising net migration and low interest rates continue to show signs of stabilisation in the property market. The median house price rose to $346,750 in August from $340,000 a month earlier, according to Real Estate Institute data. The volume of sales slipped to 5,878 from 6,014 in July, while the length of time it took to sell a house fell to 34 days from 37 days over the period. "Recent stabilisation in the housing market is likely to tempt potential sellers back into the market restoring the balance between supply and demand," said Jane Turner, economist at ASB. "We continue to expect house price inflation will remain subdued over the next few years, with appetite for housing tempered by rising interest rates, low affordability and rising unemployment." Last week central bank Governor Alan Bollard said the house market was helping prop up the economic recovery, but said the current resurgence in property was probably a temporary phenomenon that was artificially supported by an unusually low number of dwellings on offer over the past four months. New Zealand property values marked their fourth consecutive improvement according to QV Valuations data. "The RBNZ are on edge watching the recent recovery in house prices, warning that further gains will prolong the rebalancing process at the expense of future growth," Turner said. "However, the RBNZ expect that the recent lift in house prices is likely to be temporary, to which we agree." REINZ president Mike Elford said the further improvements in the property market were pleasing after a "disastrous" 2008, but that he was still "cautious in drawing conclusions from these trends." The REINZ Monthly Housing Price Index rose 1.2 percent to 3172.7 in August. The index uses stratification, in which an average of for sale prices is taken across common groups of housing at a suburb level, to provide a more accurate measure of prices for the body, and was designed by the Reserve Bank. The base value of 1000 is taken from prices in January 1992. Northland median house prices slipped to $295,000 from $315,000 in July, according to today's REINZ report, with the number of houses sold dropping to 126 from 149. The median house price in Auckland climbed to $450,000 from $440,000 the previous month, with 2,067 houses sold, up from 2,024in July. In Waikato/Bay of Plenty/Gisborne the median price dropped to $317,000 from $320,000. Hawkes Bay prices slid to $253,000 from $271,500. In Taranaki, prices edged higher to $287,500 from $280,100. Manawatu/Wanganui's median price declined to $210,000 from $224,250. Wellington's median price advanced to $395,500 from $370,000 in July, with sales climbing to 622 from 618 the previous month. In Nelson and Marlborough, the median price decreased to $325,000 from $328,000. Canterbury/Westland sales fell to 885 from 905, while the median price slipped to $295,000 from $297,000. In Central Otago Lakes, which includes Queenstown, sales increased to 87 from 84 in July, while the median price jumped to $435,000 from $411,000. Otago sales increased to 275 from 229, while the median price rose to $236,000 from $223,000 in the previous month. In Southland the median price rose to $200,000 from $190,000. -BUSINESSWIRE http://www.stuff.co.nz/business/personal-finance/2862095/House-prices-rise/ Excerpt: New Zealand house prices edged higher and properties were sold in a shorter amount of time last month as strong demand amid rising net migration and low interest rates continue to show signs of stabilisation in the property market. ### Unexpected costs when purchasing a property Solicitors / Legal Fees. These would depend on the complexity of the property transaction. The Deposit. This is dependent on your funding criteria for the property. Mortgage Application Fee. This will vary according to how your loan is structured. Property Valuation Report. Property / Building Inspection Report. A professional pre-purchase inspection of a property before proceeding with a purchase is essential. This report should identify any items in the property that require attention. It is unlikely that a home will come though a property inspection with a clean report as maintenance on an existing home is always required. However, a property report allows you to make an informed decision prior to proceeding with the purchase of the property. Quay Law recommends you use a certified inspector for your potential property purchase. Please find below some suggested sources for qualified building professionals. Accredited surveyors Accredited building surveyors Mortgage Insurance. This provides you with insurance to cover you upon your death or for a major illness. Home and Contents Insurance. You should cover your furniture whilst in transit, the house you have purchased and the household contents. Relocation expenses. This may be on a fixed price contract or on a per hour basis. LIM/PIM Reports (Land Information Memorandum/Project Information Memorandum) Please view the following link for more information on a PIM. Please view the following link for more information on a LIM. Rates. A pro rata rates payment may be required. Other Expenses. This article has been written as a guideline in order to highlight some of the costs that may be incurred when purchasing a home. This list is by no means complete as there will be additional expenses such as connection fees, phone, power, SKY or other property purchase related expenses. Should you need any assistance in relation to your property purchase, please contact Auckland Property Lawyer, Ian Mellett at Quay Law Barrister and Solicitor. Contact Details Phone: +64 9 5232408 Skype: quaylaw Email: ian.mellett@quaylaw.co.nz Web: www.quaylaw.co.nz Web: www.lawyerinauckland.co.nz Web: www.ianmellett.wordpress.com Web: www.twitter.com/quaylaw UNAUTHORISED USE. The contents of this article may be subject to copyright, legally privileged and confidential. Any unauthorised use, distribution or copying of the contents is expressly prohibited. Ian Mellett at Auckland Law Firm, Quay Law Excerpt: Solicitors / Legal Fees. These would depend on the complexity of the property transaction. ### Two sides to the broker's coin By Susan Edmunds - New Zealand Herald As the property market shows signs of rejuvenation, banks are loosening the purse strings and relaxing their lending criteria. The value and number of loan approvals is well up on the beginning of the year and more banks are lending to borrowers with deposits smaller than 20 per cent. But banks that do not deal with brokers - BNZ and Kiwibank - have been doing a lot of the lending. In the quarter ending December last year, Kiwibank had the most new residential business of any of the main banks, and in the most recent quarter, BNZ and Kiwibank made up the top three with ASB. So what benefits do brokers offer would-be home buyers in the current market? Between a quarter and a third of New Zealand's mortgage business is done through a broker, who takes a loan application, finds a suitable lender and should advise on the structure of the loan. John Bolton, of Squirrel, says he prefers to be called a "mortgage adviser" than a broker. "The reason is that advice is such a critical part of a mortgage, which is often the largest financial transaction most people will do. Brokering suggests simply shopping a deal around banks. In reality our role is providing a helping hand through the whole transaction and beyond." He says his services can be especially useful to people who are a bit "outside the square". He says borrowers get more advice from a broker than they would receive from the bank. And because they know what the different lenders' credit criteria are, a client only needs to have one conversation to be matched with the right bank. One of the key problems for first-home buyers, though, is that Kiwibank and BNZ, which both do not deal with brokers, are two of the few lenders offering loans up to 95 per cent of a property's value. A BNZ spokesperson says as every home loan application is considered on its own merits, the bank relies on its conversation with the customer to build a thorough understanding of their finances and provide a loan suited to their circumstances with repayments they can afford. It has no plans to start working with brokers. "We've not used brokers because our customers' needs - especially in a recession - are best met by speaking with them rather than through an unknown third party." Kiwibank has been conducting a trial with one group of brokers, to see what quality and level of business they bring in. Spokesman Bruce Thompson says there are cost advantages in the bank working directly with the customer. He says the trial results will be evaluated to work out whether brokers can offer benefits to the bank. But Bolton says borrowers aren't necessarily missing out by using brokers who don't deal with the two banks. He says a broker is more able to organise a high loan-to-value ratio loan backed up by a parental guarantee, making it a lot cheaper for the borrower, who is then able to avoid costly low equity fees. http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10593971 Excerpt: As the property market shows signs of rejuvenation, banks are loosening the purse strings and relaxing their lending criteria. ### Barrister slams new form By Andrea Milner : New Zealand Herald A new Real Estate Institute agreement for buying and selling property is being slammed by lawyers as unsound and unsafe to use. The agreement will cause more litigation and much higher conveyancing costs, according to a legal opinion by barrister Rod Thomas to the Auckland District Law Society. "It's like a car that needs a product recall because it's unsafe for the road," Thomas said. The agreement favours the buyer over the seller "to a very marked extent" by creating additional rights that generate "almost unlimited" risk for the seller, said Thomas. Under the new agreement, if a buyer thinks a seller has misrepresented something about the property, the seller will be liable for up to six years after the deal. Thomas said the agreement also "clearly creates more risk of a real estate agent being sued". REINZ president Mike Elford defended the agreement as a "plain English" document, more easily understandable to agents and consumers. "There have been some issues with the agreement - understandably, it's a new form," Elford said. He said the Auckland District Law Society has a "vested interest" - up till now, the form used was one jointly owned by REINZ and the Auckland District Law Society. Auckland District Law Society president Anna Fitzgibbon denied the society has a vested interest. She said it sells its form to lawyers not real estate agents, so cannot increase its market share. "This is a consumer protection issue," Fitzgibbon said. http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10594051 Excerpt: A new Real Estate Institute agreement for buying and selling property is being slammed by lawyers as unsound and unsafe to use. ### Strong lift in building consents By PAUL McBETH - BUSINESSWIRE Fairfax Media POSITIVE SIGN: The number of consents for new dwellings lifted strongly last month, particularly when apartment numbers were excluded. Home-building consents rebounded in July from a weak June figure, suggesting the residential construction industry is closer to a revival as demand for housing recovers. Building permits rose a seasonally adjusted 5 percent in July, according to Statistics New Zealand. Approvals were granted for 1,214 units including 55 new apartments. In June, consents tumbled 9.6 percent. Core consents for residential property, excluding apartments, surged 11 percent.   "Today's consent issuance suggests the construction industry is close to reaching a turning point," said Jane Turner, economist at ASB. "Ex-apartment consent issuance now looks to have made a tentative recovery, following the pick-up in demand evident in house sales."  Property demand and prices have stabilized after last year's slump in an economy that may be in its sixth and possibly final quarter of recession. Record low interest rates and rising net migration are helping bolster demand. A net 14,500 people entered the country in the 12 months ended July 31, according to government figures.  "Demand for new housing will be underpinned by the recent increase in net migration," Turner said. Still, "rising unemployment and slow wage growth will moderate the increase in demand as households remain slightly cautious."   Property prices have stabilised this year with the median price unchanged at $340,000 last month, according to recent data from the Real Estate Institute, and economists are betting Reserve Bank Governor Alan Bollard won't cut the official cash rate below 2.5 percent for fear of reigniting a housing bubble.  The value of commercial property rose to $331 million from $301 million a month earlier, but was down 3.2 percent from July 2008.   "The impact of the recession is evident in some areas with consent issuance for shops, factories, storage and farms down on year-ago levels," Turner said.  The total value of consents for all buildings fell 10 percent to $813 million in July from a year earlier.   -BUSINESSWIRE http://www.stuff.co.nz/business/industries/2811321/Strong-lift-in-building-consents Excerpt: POSITIVE SIGN: The number of consents for new dwellings lifted strongly last month, particularly when apartment numbers were excluded. ### Key to promote NZ on David Letterman's US TV show NZPA | Friday August 28 2009 - 07:42am Prime Minister John Key is going to sell New Zealand to the worldwide tourism market when he appears on a top US television show next month. Mr Key is booked for the Late Show with David Letterman while he is in New York to speak at the United Nations. He has a guest appearance on the show's cheeky "Top Ten" slot. "It's an opportunity to promote New Zealand, it's gold when it comes to New Zealand from a tourism point of view," Mr Key said today. "This is a show that millions of people watch worldwide, it really is a magnificent opportunity." Mr Key holds the tourism portfolio and since the election he has focused on attracting more visitors to New Zealand. "David Letterman is very keen on New Zealand," he said. "I understand he spent a fair bit of time ribbing Nicole Kidman about how great New Zealand was compared to Australia so I'm sure I'll be able to reinforce her comments." TV3 News reported his appearance on the show was set up by tourism officials. http://www.nbr.co.nz/node/109351 Excerpt: Prime Minister John Key is going to sell New Zealand to the worldwide tourism market when he appears on a top US television show next month. ### Selection of your independent trustee Quay Law is located on the crn of St Vincent Avenue and Remuera Road, Remuera, Auckland An independent trustee with professional or business experience can provide valuable experience when it comes to the management of a trust’s assets. They are independent and non-emotive when taking decisions regarding the trust. For more information regarding your trust contact Auckland Lawyer and trust specialist, Ian Mellett. Excerpt: An independent trustee with professional or business experience can provide valuable experience when it comes to the management of a trust’s assets. ### Property market indicator strengthens NZPA | Monday August 24 2009 - 11:07am A housing market indicator strengthened in July as the average time taken to sell properties fell sharply from a year earlier. The Mike Pero Mortgages-Infometrics property cycle indicator climbed to a positive 5.95 in July, from 3.98 in June, Mike Pero Mortgages said today. The indicator takes into account changes in the number of houses sold, changes in price and the time taken for houses to sell. It runs from -10 for a strong downturn to +10 for a strong upturn. Mike Pero Mortgages chief executive Shaun Riley said the biggest change in the market was the much shorter time houses were taking to sell. Houses took on average 37 days to sell in July, 21 days fewer than a year earlier, and the biggest year-on-year improvement since records began in 1991. House sales volumes held steady around 6000 in July from June, and were up 34 percent on July 2008. The national median house price also held steady at $340,000 in July, unchanged from a year earlier for the second month in a row. http://www.nbr.co.nz/node/108895 Excerpt: A housing market indicator strengthened in July as the average time taken to sell properties fell sharply from a year earlier. ### Leaky homes could help building shortfall, says law expert by Anne Gibson - NZ Herald A legal expert has called for urgent action on the rotting-home front. Stuart Robertson, a Kensington Swan partner and specialist in construction litigation, said victims should be getting a better deal. He wants to mobilise the construction workforce to fix thousands of houses, estimated in an official Government report not yet released to cost about $11.5 billion. Builders need work, many houses leak and victims are suffering such serious physical and mental health problems that a radical change and the state's intervention is crucial, he said. "There are a number of immediate factors that cry out for the Government to step in and take a more active role in the resolution of the current leaky-building claims," Mr Robertson said. Less than a quarter of leaky-building claims resulted in houses being fixed, he said. Owners are not recovering enough to fix homes, yet the recession has resulted in a readily available pool of skilled builders begging for work. Homeowners could get their places fixed and the Government should then pursue a claim on their behalf, he said. Crown Law should establish a separate leaky building prosecution division and fight for compensation. "As the Crown makes recoveries, the money would fund further remedial repairs and prosecution costs. The Government would carry six to 12 months of repair and prosecution costs at any one time. "Under this type of scheme, the Government would be solving a significant social problem and assisting with unemployment and the recession," he said. Mr Robertson is a former electrician and computer hardware engineer who has appeared at the Weathertight Homes Tribunal. But Paul Grimshaw, whose law firm specialises in leaky-building litigation on behalf of about 6000 clients, dismissed his suggestions. "The idea that the Government would pay out-of-work builders to fix all the homes and then go after the bad guys is unworkable. "It means forking out literally billions of dollars - which presumably the Government doesn't have - in the first instance, even if it then recovers those billions later on," Mr Grimshaw said. Instead, he backs the house warranty suggestion of Building and Construction Minister Maurice Williamson as a more workable solution. A new-home warranty insurance scheme is part of the big changes being planned. The warranty could be through insurance companies or builder guarantees but details are yet to be announced. Mr Williamson is promising a radical change - partly to cut lawyers out of the scene. "We are going to completely revamp the whole process because the whole weather-tight resolution process so far has seen huge chunks of money go into the hands of lawyers and litigation and tribunals and almost nothing going into fixing the rotting buildings," Mr Williamson told the latest issue of Build magazine. http://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=10592713&ref=rss Excerpt: A legal expert has called for urgent action on the rotting-home front. ### Innocent buyers in need of protection Monday Aug 24, 2009 By Anne Gibson - NZ Herald Immigrants are being saddled with leaky homes, unwittingly buying into our national disaster, says a Remuera real estate agent. Steve Koerber of Barfoot & Thompson has pointed the finger at vendors and other real estate agents, saying there is a lack of information about houses. John Gray of the Homeowners and Buyers Association agreed that some agents were reluctant to let potential buyers know of weather-tightness issues, but an agency boss has rejected criticism. Bryan Thomson, Harcourts chief executive, said agents were upfront if they were made aware of leaks. But not all vendors told agents about leak issues, he said. Mr Koerber said migrants were particularly at risk because so many were unaware of the dangers of buying a New Zealand house. "I have a big problem with the fact that hundreds of new immigrants and some locals are literally stitched up into potentially leaky or actually leaky homes. Their eyes are wide shut and some owners and agents are genuinely relieved to find them," Mr Koerber said. He wants to meet Building and Construction Minister Maurice Williamson and persuade him of the need for Government-controlled inspections, particularly of houses built between the risky period 1991 to 2003. He believes this is a viable solution to the country's leaky-home crisis, thought to affect about 80,000 places. A new law to protect buyers and sellers of plaster homes that demanded state inspection reports of at-risk houses attached to listing and sale and purchase agreements would help, he said. Homeowners would pay about $1000 for the reports, but the Government should subsidise this. Mr Koerber said he knew some assessment reports on houses were inadequate but he suggested reports would need to comply with stringent guidelines highlighting risk factors including cladding, roof construction, location and when the house was built. "If a house leaks and is bought 'eyes shut' by a new immigrant for $1 million, the actual value of that house could be, say, $800,000 if the problems had been/were found/known. If this immigrant stays a few years then sells under the same circumstances to another naive buyer, then the problem is hidden again," he said. The Government's Weathertight Homes Resolution Service offers written assessments of homes not more than 10 years old which are suspected of leaking. A full assessor's report costs $500 for a stand-alone property or single unit claim, $1000 for a duplex of two or more units or $1500 for a multi-unit complex. Mr Gray said many of Mr Koerber's suggestions were noble but ill-founded and impractical. "Unfortunately the Government does not have any appetite to get close to the problem nor to regulate anything. So it is left to us as a self-funded organisation to try to educate people about the risks of buying any home. Some people have jumped through hoops when looking at buying what is perceived to be a high-risk home and shied away to buy a perceived low-risk home only to find that is a disaster. "Don't drop your guard no matter what type of home you are intending to buy. It is unfortunate also that some owners who have had their homes remediated to a very high standard find themselves being victimised by naive agents and conveyance lawyers who advise their clients to stay away from a remediated leaky home. "Every home should be subject to a pre-purchase inspection undertaken by a suitably qualified person when someone is committing to the biggest purchase of their lives. However, the real problem is the lack of suitable qualified, experienced and competent pre-purchase surveyors - with professional indemnity insurance - upon whom you could rely," Mr Gray said. http://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=10592715&ref=rss Excerpt: Immigrants are being saddled with leaky homes, unwittingly buying into our national disaster, says a Remuera real estate agent. ### Immigration in the Current Time Whether you are already residing in New Zealand or are planning a move to New Zealand, you should be aware of the benefits and risks surrounding your application or current permits. Losing your New Zealand job, as a result of the recession or otherwise may result in you not being eligible to work in another organisation. This can have dire consequences, the worst being that you could face having to leave New Zealand. A work permit does not carry with it a guarantee for renewal or a guarantee that permanent residency will be granted. A sad fact that some migrants do not completely understand when making the move to New Zealand. Unemployment in New Zealand is at its highest level since September 2000 with the outlook looking weak until early 2010. In a July jobs update, www.trademe.co.nz highlighted that the number of applications per job advertised had risen by 50 per cent over the past 12 months. New Zealand welcomes new migrants – people who will contribute to the country by bringing valuable skills or qualifications, setting up a business, or making a financial investment. So what options are available to you? Immigrants in New Zealand fall broadly into three categories:- Those that hold Citizenship Those that reside in New Zealand and hold permanent residency Those that reside in New Zealand and hold valid work permits If you currently reside in New Zealand and hold a valid work permit that is about to expire, review your options. Are you eligible for permanent residency? If so then this should become your priority. Holding a permanent residency permit places you in a stronger position should you be required to find alternative employment because of downsizing or closing of the organization that sponsored your work permit application. Apply for the renewal of your work permit in a timely fashion. Employers who are unable to find suitable workers in New Zealand and have roles that do not meet the Skilled Migrant or Talent work permit criteria may be able to assist a potential employee in obtaining an Essential Skills work visa or permit. An employer would have to demonstrate that: There were no suitable employees in New Zealand. They made genuine attempts to attract and recruit New Zealand workers for the positions at the current market salary. They provided evidence of advertisements placed, responses received, industry statistics on vacancies and training in place to address shortages. Work and Income would also be contacted. All of the above takes time, so you need to allow sufficient time when renewing your work permit. At Quay Law we are often asked to clarify the difference between a visa and a permit? A visa allows a person to travel to the NZ border and a permit allows them to remain in the country. Unless a person has a multiple-entry visa or another single-entry visa, a permit expires when a person leaves the country. We recommend that you do your homework and consult a professional immigration advisor to ensure that all your requirements pertaining to New Zealand Immigration are adequately addressed. Sometimes this can be as simple as ensuring that your application is completed using the correct application form, a mistake that can cause an unnecessary time delay. Mistakes or shortcuts in this process can have financial and emotional consequences. For more information on your immigration matters, call Ian Mellett of Quay Law Barrister and Solicitor in confidence. Contact Details Phone: 09 523-2408 Email: ian.mellett@quaylaw.co.nz Web: www.quaylaw.co.nz Web: www.lawyerinauckland.co.nz Quay Law Legal Blog: www.ianmellett.wordpress.com Immigration Blog: www.immigratenz.wordpress.com Skype: Quaylaw UNAUTHORISED USE. The contents of this article may be subject to copyright, legally privileged and confidential. Any unauthorised use, distribution or copying of the contents is expressly prohibited Excerpt: Whether you are already residing in New Zealand or are planning a move to New Zealand, you should be aware of the benefits and risks surrounding your application or current permits. ### Foreign workers fear expulsion By REBECCA TODD - The Press Work-permit applications are being declined at double the rate of a year ago, leaving immigrants worried about their future. More than 760 work-permit applications were rejected in April this year, compared with 224 in April 2006 and 357 last year. While 4500 applications were accepted in April last year, just 3200 were issued in April this year lowering the approval rating from 93 per cent to 81 per cent. Canterbury dairy farmer and consultant for recruitment company Greener Horizons, Shirlene Cochrane, said her company had 22 Filipinos working in Canterbury whose visas were due for renewal over the next 10 months. She had documentation from the Immigration Department indicating it would be "pretty much impossible to get them renewed". However, she said unemployed Kiwis could not fill the jobs. Reinier Undan, 27, has been working on a Leeston dairy farm for eight months. His visa is due for renewal in October. He has a two-year contract, but is worried about whether he will be allowed to stay. Undan is saving money for his wedding next year, as well as paying for his younger brother to attend school. He had hoped to bring his wife to New Zealand to live. "I feel a little bit nervous because I heard some news from other Filipinos that when they went to get renewed, they were turned down," he said. "It might be very hard to find work at home." Undan's employer, Alistair McDrury, said what set Filipino workers apart from many Kiwis was their work ethic. "Immigration is wanting to clamp up on letting them into the country, but just because people are unemployed doesn't mean they are suitable to work on dairy farms," he said. "The unemployment rate is climbing, but the dairy industry is still struggling to find staff." Migrant Action Trust co-ordinator Agnes Granada said some migrants had been in New Zealand for up to nine years and were now faced with possibly having to go home. Immigrants who were made redundant could only look for work in the occupation their permit covered and had little time to find a new job. Granada said the trust was asking Immigration Minister Jonathan Coleman to allow immigrants to seek work in any area. "Many migrants are unable to find a job in the current climate. Where are these people going to go?" she said. "We want to highlight to the minister that coming to New Zealand involves huge investment." The National Distribution Union and Filipino workers' group, Migrante Aotearoa, are petitioning the Government to extend redundant migrants' work permits for three months.  "Many migrants and their families have lost their residency applications and are in deep trouble," Migrante Aotearoa director Dennis Maga said. "We encouraged migrants and their families to come to New Zealand when we needed them to fill our labour shortage; we shouldn't throw them out now that they are in need." Coleman said temporary work visas would not be renewed as more New Zealanders became available to work. "There is never any guarantee that they will be renewed, and migrants know this when they come to New Zealand under those visas," the minister said. http://www.stuff.co.nz/national/farming/2480593/Foreign-workers-fear-expulsion Excerpt: Work-permit applications are being declined at double the rate of a year ago, leaving immigrants worried about their future. ### Banks easier on loans as home prices steady By EMMA PAGE - Sunday Star Times Banks are relaxing their lending conditions as house prices stabilise, making it easier for would-be homeowners to get into the property market. Mortgage brokers around the country say banks are now willing to consider loan applications that just a few months ago would have been flatly declined. The changes, which include lending up to 90%, comes after a time when a minimum 20% deposit was the norm and banks were taking a more conservative approach to approving home loans. Mike Pero Mortgages chief executive Shaun Riley classified the new banking mood as "a slight relaxing" of some criteria and said it was positive for hopeful homeowners. "I think any time lenders make things a little bit easier is good news for the clients." Riley said the gradual change had been noticeable for around three months and included banks taking a more proactive approach, and slight changes in criteria. For example, before approving a 90% loan Westpac used to require the borrower had been employed for three years, but that had recently been dropped to one year. John Bolton from Squirrel Mortgage Brokers said it was definitely easier to secure loans for clients. "We've noticed a big improvement. We've just got so many options out there at the moment in terms of different banks and lenders, so we can pretty much cobble together a solution for most people." But although banks were more willing to lend above 80% of a home's value, they were still being discerning and were only keen to take on good clients with "nice, clean" credit history just missing one mortgage payment, exceeding an overdraft or bouncing a cheque could sour any potential deal. Investors and people trying to consolidate debt were also likely to be out of luck. "If you are professionals, if you've been in your job for a while and you've got really good servicing, then pretty much the banks will look at the deal all the way to 90%," Bolton said. He had an easy rule of thumb to define the likelihood of a loan being approved: "Take your household income, divide it by two and multiply it by eight and as long as you're borrowing less than that, it's a piece of cake all the way up to 95%." That meant a household earning $100,000 could potentially borrow up to $400,000 with a small deposit. If a borrower wanted an 80% loan they should divide income by two and multiply by 10. Massey University banking expert David Tripe was not surprised by the change. It indicated there had been a slow-down in demand and that banks were seeing less risk in property markets than they did a year ago. Combined with the fact that many of the predicted job losses had already happened, this provided some justification for an easing of terms and conditions, he said. But he did not foresee a return to banks lending the full value of properties as seen during the boom years. "I don't think people are going to be rushing back to doing 95% or 100% loans in a hurry." Latest figures from the Real Estate Institute show house prices rose 5% in July, while the median days to sell fell to 36 days (seasonally adjusted) from 40 days last month. In comments released last week, ASB economist Jane Turner said the data confirmed the recent housing market recovery remained firm and that price declines had come to an end. The news of banks becoming more willing to lend comes as floating mortgage rates have dropped to their lowest level in 40 years. Last week, Kiwibank was offering 5.79% while BNZ had lowered its rates to 5.85%. But this good news for homeowners was moderated by lifts in fixed-term rates, with ANZ, ASB and Westpac all lifting their two-year rates to 6.55%. But financial commentator Bernard Hickey from interest .co.nz said while lending may have relaxed, housing was still "vastly unaffordable for most people especially in Auckland". If prices did not come down, lower interest rates would not change the affordability equation. He labelled the move to relax lending as "depressing" and said it meant the country was making the same mistake all over again, potentially getting further into debt, which could damage our international credit rating. The problem was, he said, that there was no incentive to encourage more conservative borrowing the government was not moving to discourage rental investment by introducing a capital gains tax, while capital adequacy rules meant that banks did not have to put aside as much "precious capital" when they lent against a home. "Instead of slowing the car down for the corner that is ahead, we are accelerating into it and we hope we're not going to crash... I fear we're just going to blast off the edge." http://www.stuff.co.nz/business/2756561/Banks-easier-on-loans-as-home-prices Excerpt: Banks are relaxing their lending conditions as house prices stabilise, making it easier for would-be homeowners to get into the property market. ### QV Main Urban Areas Property Report - August 2009 Quotable Value New Zealand Quotable Value Limited (QV) is New Zealand’s largest valuation and property information company. QV operates from 22 offices throughout New Zealand and has subsidiary companies in three states of Australia. Main Urban Areas Commentary: Auckland Property values in the Auckland region declined by 3.5% over the past year (calculated over the three months ending July 2009 in comparison to the same period last year), a considerable improvement on the 5.9% annual decline reported in June. The average sale price for the region increased from $489,444 to $500,315. Glenda Whitehead of QV Valuations said; “What a difference a year makes! This time in 2008 the Auckland residential market was in a steep decline, with increasing volumes of property appearing on the market from July to December, and taking prolonged periods to sell. Now the contrast is significant. Values have stabilised over recent months and have even begun to show upward movement in some areas. Listings this winter are light, but are attracting healthy interest, resulting in properties selling relatively quickly by comparison. This is reflected in the year-on-year value change for Auckland, which is now moving quickly back through the negatives toward zero”. “The North Shore in particular has seen positive activity in recent months. While low listings are still being reported, buyer interest is strong with firm and realistic offers being made to vendors. Most properties put on the market now appear to be realistically priced, and are consequently selling quickly. The properties performing well on the North Shore include moderate to medium priced residential properties presented in reasonable condition, and those in popular school zones. For example Forrest Hill, Milford and Mairangi Bay.” said Whitehead. “In Auckland City the traditionally sought-after suburbs are performing well. Again, properties within popular school zones and those close to desirable amenities are attracting attention.   General sentiment is that the market has stabilised and people are just getting on with their lives now” said Whitehead.  “Reported low levels of listings this winter may be prolonged further if vendor sentiment holds true. That is, vendors who can afford it seem to be waiting for a further upturn in the market to realise their price expectations. For those who are listing properties now, we are sensing a much lower degree of desperation than six to twelve months ago.  There are many people actively looking to purchase, but buyers actions continue to have an air of caution about them.” said Whitehead. “There also seems to be more activity in the re-finance area. Some home owners are prepared to borrow a little more to undertake minor improvements such as decks, re-decorating, or upgrading a bathroom or kitchen. Many owners acknowledge the cost of changing homes and would rather put that money towards adding value to their current dwelling” said Whitehead. Hamilton Property values in Hamilton declined by 2.9% over the past year (calculated over the three months ending July 2009 in comparison to the same period last year), a further improvement on the 6.6% annual decline reported in June. The average sale price for the city increased from $337,851 to $344,081. Mr. Richard Allen of QV Valuations said; “For the fifth consecutive month year-on-year values for Hamilton City recovered slightly. The 3.7% improvement seen in July is further evidence that the residential market in the city continues to stabilise. In fact all four areas in the city experienced healthy improvements”. “The continued recovery in Hamilton’s declining values confirms that house prices in the city have at least flattened out. Although some areas of the country are showing positive signs, I am still of the opinion that this stabilisation may only be an aberration, at least in Hamilton. I think a lack of demand caused by poor regional economic factors and the reduced dairy payout will put more downward pressure on the residential property market in Hamilton and the Waikato later in the year” Allen said. Tauranga Property values in Tauranga declined by 6.6% over the past year (calculated over the three months ending July 2009 in comparison to the same period last year), an improvement on the 8.0% annual decline reported in June. The average sale price for the region decreased from $427,927 to $415,156. Mr. Shayne Donovan-Grammer of QV Valuations said; “The average sale price has fallen in the Tauranga region which is reflecting what I am seeing at the coal-face. This fall can also be attributed to the bulk of the activity coming in the $350,000 and below price bracket. Although value recoveries have been evident over the last few months in some parts of NZ, this is not the case in Tauranga. Talk of a widespread and continued recovery at this stage I think is premature”. “In saying this, a lack of stock in some property categories and locations has stabilised values in those areas recently. At the moment the market appears to be finely balanced. It will be interesting to see what direction it will take leading into spring with rising unemployment and subdued dairy payouts” said Donovan-Grammer. Wellington Property values in the Wellington region declined by 4.0% over the past year (calculated over the three months ending July 2009 in comparison to the same period last year), a substantial improvement on the 6.5% annual decline reported in June. The average sale price for the region decreased slightly from $430,939 to $429,571. Kerry Buckeridge of QV Valuations in Wellington said; “Residential property values have moved in a positive direction for the third consecutive month in Wellington. If this is an aberration before another down-turn, it certainly is an extended one. I have noted good attendance at open homes with buyer attention focused on most parts of the market. We have seen an increase in mortgagee sales, but given market sentiment and the current shortage of listings these are often attracting good buyer interest”. “We have recently noticed a decreased number of valuations being requested out of the residential market. This could possibly be driven by the school holidays and the recent bad weather, so is probably more a seasonal trend. This may give some indication that actual sales activity is slightly more subdued, despite heightened buyer interest” said Buckeridge. “A significant number of relatively cashed-up expatriates are returning to New Zealand and are all in need of housing. Countering this, and of particular importance in Wellington’s property market, is the effect of public sector restructuring. Already there have been a reasonable number of redundancies and government contractors are getting less work. If people’s incomes are under threat they are less likely to be strong participants in the property market” Buckeridge said.   “I think most people believe we have seen the worst of the residential market downturn in Wellington, but of course it is impossible to say at this stage. The value recovery experienced thus far has been off the back of some very finely balanced economic forces and a small shift in any of these could change the current trend. The foreseeable future presents a standoff between immigration and unemployment, which could tip the scales either way” said Buckeridge. Christchurch Property values in Christchurch declined by 5.5% over the past year (calculated over the three months ending July 2009 in comparison to the same period last year), an improvement on the 7.3% annual decline reported in June. The average sale price for the city increased slightly from $339,962 to $342,993. Jess Maher of QV Valuations in Christchurch said; “For the fourth consecutive month the rate of annual decline in the Christchurch region’s housing market has recovered slightly. Once again suburban Christchurch has held well, the hill suburbs have shown the greatest recovery and are closely followed by the southwest suburbs”. “There is a great deal of positive feeling out there in the residential market at present, particularly in the traditional first home buyers market where properties are selling under $350,000. We are hearing from a number of people that it is a good time to be selling property in this price bracket due to a shortage of listings and increased number of buyers. Real estate agents are reporting good results at auctions and multiple offer situations. However, there are still many underlying economic factors such as job security, which are influencing purchaser’s decisions” said Maher. “It is not unusual in winter for there to be a shortage of listings, as traditionally vendors wait until spring to place their properties on the market. With building consents are still at low levels and net migration rising, it is expected that pressure will come onto existing housing stock. However the effect of this will possibly be mitigated by an expected increase in listings heading into spring” said Maher Dunedin Property values in Dunedin decreased by 1.4% over the past year (calculated over the three months ending July 2009 in comparison to the same period last year), a substantial improvement on the 4.5% annual decline reported in June. The average sale price in Dunedin increased slightly from $256,493 to $258,813. Mr. David Paterson of QV Valuations said; “The month’s figures point to a continued improvement noted in last month’s report, and confirm our predictions earlier this year that the values would move into positive growth later this year in Dunedin. What has been surprising is the speed with which this change has occurred over the last few months”. “Discussions with local agents indicate there is a shortage of listings, particularly in the upper price brackets. There appears to be plenty of buyers which would indicate that it is now becoming more of a sellers market. The Dunedin market has always been price sensitive and that still appears to be the case today, with correctly priced properties selling quickly” Paterson said. “While it is good to see some positive trends, there is still concern by some that the improvement we have seen over recent months is not sustainable. One can point to concerns about long term job security, the wider economic factors and international market trends to support these views. It is difficult to predict what might happen over the next few months given the uncertain economic times we are facing. There is however positive sentiment out there which is supported by our statistics. The feeling is that this will continue into spring, as this would be expected in a normal sales cycle” Paterson said. http://www.qv.co.nz/aboutus/pressreleases/propertyvaluesriseagain10082009.htm#Commentary Excerpt: Quotable Value Limited (QV) is New Zealand’s largest valuation and property information company. QV operates from 22 offices throughout New Zealand and has subsidiary companies in three states of Australia. ### NZ cities more affordable A fall in the value of the New Zealand dollar has made Auckland and Wellington much cheaper places to live for expatriates working for multinational organisations. Mercer’s worldwide cost of living survey, carried out in March and published today, showed the two New Zealand cities had close to the lowest cost of living out of 143 cities covered. Auckland was in 138th place, from 78th a year earlier, with a cost of living index of 54 compared to 81 in March 2008. The index is based on a figure of 100 for New York. Wellington is one place lower at 139, from 93 a year earlier, and with an index figure of 52.3, down from 77.6 in 2008. Rob Knox of Mercer said the New Zealand cities were “extremely” cost competitive across the Asia Pacific region for global workers, in comparison with places such as Beijing, Hong Kong, Tokyo and Osaka, which all climbed the rankings this year. “This helps make New Zealand a very attractive hub for companies looking to grow their presence in the Asia Pacific region,” he said. The cost of living of New Zealand cities benefited from a fall in the value of the NZ dollar, which at the end of March had depreciated by more than 33 percent against the US dollar from a year earlier. Also in this country’s favour, Mercer’s quality of living survey published in April ranked Auckland 4th in the world and Wellington 12th. Mr Knox said organisations needed to take the quality of living standards into consideration to establish the true “value of living” of a particular location. In Australia, Sydney remains the most expensive city for expatriates, but dropped from 15th to 66th place with a score of 75.5 points. Melbourne was down to 92nd with 69.9 points from 36th, Brisbane fell to 116th with 65.3 points from 57th, Perth fell to 117th with 65.2 points from 53rd, while Adelaide fell to 130th with 61.3 points from 73rd. Overall, Tokyo knocked Moscow off the top spot to become the world’s most expensive city for expatriates. Tokyo with 143.7 points rose from second place in 2008, while second placed Osaka was up from 11th place with 119.2 points. Moscow fell to third with 115.4 points. The most expensive European Union city is Copenhagen, Denmark unchanged from 7th place last year with 105 points, while New York is the most expensive city in the United States moving up to eighth place from 22nd. Bottom of the list is Johannesburg with 49.6 points. The survey measures the comparative cost of more than 200 items in each location, including housing, transport, food, clothing, household goods and entertainment. NZPA http://www.stuff.co.nz/business/personal-finance/2571966/NZ-cities-more-affordable Excerpt: A fall in the value of the New Zealand dollar has made Auckland and Wellington much cheaper places to live for expatriates working for multinational organisations. ### Immigration in the current times At times like these any proposed immigration should be carefully planned. Unemployment in New Zealand is at its highest level since September 2000 with the outlook looking weak until early 2010. In a July jobs update, www.trademe.co.nz highlighted that the number of applications per job advertised had risen by 50 per cent over the past 12 months. New Zealand welcomes new migrants – people who will contribute to the country by bringing valuable skills or qualifications, setting up a business, or making a financial investment.  Moving to a new country is stressful and finding work and starting a job in a new country can add to that stress.  This aside from finding work within the constraints of the current economic situation. We hear too many stories of people who have arrived, become disillusioned when searching for work and subsequently deplete their savings whilst attempting to support themselves. They return to their country of origin disheartened. On the other hand there are many success stories.  Happy immigrants well settled, fulfilling vital roles within many different occupations throughout the country We recommend that you do your homework and consult a professional immigration advisor to ensure that all your requirements pertaining to New Zealand Immigration are adequately addressed. For more information regarding your immigration matters, contact Auckland Law Firm, Quay Law. Excerpt: At times like these any proposed immigration should be carefully planned. ### Lawyers’ employees and immigration work New Zealand Law Society - Law Talk Lawyers who provide immigration advice to clients are exempt from licensing as immigration advisers under s11(e) of the Immigration Advisers Licensing Act 2007 (the IALA). The lawyers’ exemption also covers immigration work done by a law firm’s non-lawyer employees. The NZLS won a long battle to have that exemption for lawyers enacted, on the basis that the Lawyers and Conveyancers Act (LCA), and the rules and regulations made under it, are comprehensive in protecting the consumers of legal services. Lawyers, the society said, should not be subjected to two different regulatory regimes for this purpose. The NZLS consistently, from the time the IALA was a bill, also took the principled position that the exemption for lawyers covered work done by their non-lawyer employees – for which the lawyer concerned is responsible. It saw no need for lawyers’ non-lawyer employees to be licensed or separately exempted under the IALA. This view of the position of lawyers’ employees is both principled and elementary. It lies behind many of the provisions of past and present legislation and rules including, for example: •the concept of practice on own account •the requirements for management and supervision of staff, and for the client to be advised who is responsible for their matter •the practice whereby the responsible partner’s name appears on correspondence. Accordingly, the NZLS did not expect that lawyers would see it as appropriate or necessary for any of their employees to seek licences or exemptions under the IALA. It was, therefore, surprised to hear, in 2008, of an initiative to request an exemption, through regulations, for non-lawyer employees of law firms from licensing under the IALA. It is understood that the exemption was requested because some law firm employees had sought and been granted IALA licensing, even though they did not need it. After some months of discussion between the NZLS, the Immigration Advisers Authority, the Department of Labour and the Ministry of Justice, the NZLS’s original position has been accepted as correct. The Immigration Advisers Authority (IAA) now accepts that lawyers are responsible for immigration work carried out by their non-lawyer employees, and that those employees should not be licensed or separately exempted under the IALA. In the society’s view, this is the correct and principled outcome. Three matters remain. First, the s11(e) exemption should not operate to the disadvantage of lawyers as against licensed immigration advisers. The exemption recognises that the range of client protection measures under the LCA, and previously the Law Practitioners Act, from rules of conduct and client care and the Lawyers Complaints Service through to the financial assurance scheme and the Lawyers Fidelity Fund, are comprehensive and well established. Immigration advisers needed to be licensed: lawyers did not. That can be reflected in firms’ marketing. Secondly, it bears reiteration that an in-house lawyer engaged by an immigration adviser or a firm of immigration advisers is covered by the s11(e) exemption but, as in-house counsel, may provide advice solely to his or her employer, and not to that employer’s clients. Thirdly, while it is certainly open to a lawyer to instruct an immigration adviser in an independent practice to render services to a client of the lawyer, it is questionable whether a lawyer can properly engage someone on a contract for services to work within the law firm to provide the firm’s clients with immigration advice and, if so, whether the contractor can and must be licensed as an immigration adviser. The NZLS is looking into that question and will report on it shortly. Employees of lawyers or law firms who were granted a licence last year should now surrender that licence. If you fall into this category and have not already heard from the IAA, you should contact the authority. Immigration New Zealand (INZ) applications must continue to be signed by a practising lawyer to allow INZ to identify clearly those who are exempt from the immigration adviser licensing requirements. This also ensures that the lawyers take overall responsibility for the work of their employees, as required by the LCA. An employee of a lawyer can still communicate with INZ directly about a client of the lawyer and can still communicate directly with clients. http://www.lawsociety.org.nz/publications_and_submissions/lawtalk/2009_issues/lawtalk,_issue_734/lawyers_employees_and_immigration_work Excerpt: Lawyers who provide immigration advice to clients are exempt from licensing as immigration advisers under s11(e) of the Immigration Advisers Licensing Act 2007 (the IALA). ### June 2009 Property Report : Remuera and Parnell Please find attached a copy of the latest Issue of  The Rob Report  which features all the published residential property sales, made by all the real estate agencies, in Remuera & Parnell during the month of June 2009. The total number of properties sold in Remuera & Parnell, as at the 31st June 2009, is 334 which is up 30% on the 2008 figure of 256. Buyers are definitely back in great numbers so if you are thinking of selling, do not hesitate, as historically, many more properties come on to the market during September & October, which means more choice for the buyers. For a complimentary, no obligation, market appraisal, specific to your home, call me direct on 021 633 398. I would like to thank the following local business owners for their support in the production of The Rob Report. Ian Mellett – Quay Law Anna Mooney – Anna Mooney Design Peter Reid – Enact Business Architect Andrew Ball – Ease Mortgages & Insurance Wendy & Declan McEntegart – Kitchen Central Cooking School Christine Lineham – Mondo Travel Remuera  Coming soon…………… The Rob Report – Orakei, Mission Bay, Kohimarama, St Heliers, Glendowie – June 2009  Regards Robert Ashton AREINZ BE (Structural) Residential Sales D +64 9 520 8890 | M +64 21 633 398  | F +64 9 520 8880 | E robert.ashton@bayleys.co.nz | www.bayleys.co.nz Bayleys Real Estate Limited. A Member of Bayleys Realty Group. 55A Remuera Road, Newmarket, Auckland, New Zealand Excerpt: Please find attached a copy of the latest Issue of The Rob Report which features all the published residential property sales, made by all the real estate agencies, in Remuera & Parnell during the month of June 2009. ### Buying or Selling Property? The Sale and Purchase Agreement With the arrival of the new plain English Sale and Purchase Agreement form, produced by REINZ, consulting with your Solicitor PRIOR to signing an agreement for a pending property transaction has become vital.  This new agreement has no case law to support it and could leave you vulnerable. The existing 8th Edition Property Sale and Purchase agreement form has been compiled after years of practical learning. Buying or Selling a property is one of the most important transactions that you will make.  Take care and consult a legal professional before signing the agreement. For more information on your  property transaction, contact the friendly Auckland Legal Team at Quay Law Barrister and Solicitor on (09) 523 2408 or visit our website. Excerpt: With the arrival of the new plain English Sale and Purchase Agreement form, produced by REINZ, consulting with your Solicitor PRIOR to signing an agreement for a pending property transaction has become vital. ### Beware a return to bad habits NZ Herald Reserve Bank Governor Alan Bollard is worried about deja vu when it comes to New Zealanders' love for property investment and consumption, rather than saving and investing to produce more exports. Bollard believes we could be making the same mistake all over again and there appears to be nothing he can do. His bluntest instrument is the Official Cash Rate and he has promised to sit on that for the next year or so. Bollard's decision this week to leave the OCR at a record low of 2.5 per cent is consistent with his promise to keep it at that rate or lower until late next year. The economy is crawling towards recovery, but may yet go through more dips before anything sustainable arrives. Bollard can't cut interest rates, but neither can he raise them much without damaging a fragile recovery. Some exporters would argue he should cut rates to bring down a painfully high New Zealand dollar. Yet consumers seem to be slipping back into their bad old habits. Home buyers and investors are hitting the open homes again and there is ample anecdotal evidence of renewed heat in the housing market as spring arrives. This is exactly what Bollard does not want. New Zealand's economy is careering towards a credit rating downgrade and foreign lending freeze unless New Zealanders save more, spend less and invest more in the productive sector. More property investment will simply tip that balance even further in the wrong direction. So what can Bollard and policymakers do? They seem to be powerless, but there are some tweaks they could make to restrain the banks' ability to lend heavily into property. The Reserve Bank looked at other tools for influencing the housing market and the broader economy in 2006 when it was pushing up the OCR in vain to cool a housing market that refused to listen. It looked at a mortgage interest levy, a discretionary limit on bank loan to value ratios and linking bank capital to cyclical risk. In the end none was adopted, partly because the Reserve Bank was going through the complicated business of converting to Basel II, the new set of international rules for measuring capital adequacy. Under Basel 1 banks had to put aside a set amount of capital for different types of loans. This was known as risk weighting. Residential lending was given a 50 per cent risk weighting, while other loans were given a 100 per cent risk weighting. This encouraged banks to lend more on property because they didn't have to put aside so much capital for this lending. Under Basel II the banks were allowed to set their risk weightings according to their own experience of losses, which meant they could lend even more into housing because loss rates on home loans were very low, meaning they could set their risk weightings lower than 50 per cent. However, under Basel II the Reserve Bank has the right to impose a discretionary "scalar" to these risk weightings for mortgages if it thinks the banks' own assessments are too optimistic. The Reserve Bank has already imposed a 15 per cent discretionary scalar to the capital adequacy requirements and in May in its Financial Stability Report it imposed extra restrictions on how the banks calculated their risk weightings for rural lending. Changing the discretionary scalar could be a way for the Reserve Bank to push the banks to lend less on property without having to change the OCR or damage other types of lending. It could even reduce the risk weightings for business loans to encourage lending to business. The Reserve Bank has to look at innovations if it wants to break out from its own Catch 22. http://www.nzherald.co.nz/blog/search/results.cfm?kw1=blog Bernard Hickey from interest.co.nz on personal finance trends, mortgages, homeloan affordability, credit cards and more Excerpt: Reserve Bank Governor Alan Bollard is worried about deja vu when it comes to New Zealanders’ love for property investment and consumption, rather than saving and investing to produce more exports. ### Home-sale form alarms lawyers The new form is expected to become standard.  By Diana Clement  -  NZ Herald Homebuyers are being warned not to use a new sale-and-purchase agreement which may not allow them to cancel a deal if a pre-inspection report shows problems with the property. The new plain English form, produced by the Real Estate Institute (REINZ), has been praised for its simplicity. But lawyers have warned there is no case law, and consumers could find themselves becoming guinea pigs for expensive test cases. The main differences include: * Even if the agreement is conditional on a builder's report, buyers will need "reasonable" grounds to pull out. * The building report must be from a "suitably qualified person". * Problems with the title will no longer be an instant way to get out of a contract. * Instead, buyers will have to go through a process of asking sellers to fix the problem before they can back out and can only dispute a title defect that will or might affect the buyer's use and benefit of the property. * Promises (previously knownas warranties) given by vendorsin the new document are widerthan they are in the old ones. REINZ chief executive Christine LeCren said the intention of some of these changes was to avoid "frivolous" excuses for cancelling agreements. Until now, the standard legal form for the sale and purchase of property in New Zealand was the "8th edition" produced jointly by the Auckland District Law Society and REINZ. REINZ decided late last year to go it alone and produce its own form because it could not agree with the law society on a plain English version. Property lawyers agreed the new form would become the standard simply because most buyers and sellers use the form handed to them by a real estate agent. The law society is warning that buying a property is the most important transaction people ever make. Ironically, lawyers are set to gain financially from the change. Niamh McMahon, convener of the society's documents and precedents committee, described the new form as "going back to the bad old days". "The 8th edition is a collection of all of the learnings over the last 20 years and it is the poor customers who are going to end up on the bad side of this with bigger bills," she said. Another concern for lawyers is that the form comes in two booklets: the form and a book of standard clauses. Lawyer Debra Dorrington of AlexanderDorrington said in her view it would be easy for agents to fail to give the clauses book to purchasers. But Ms LeCren said that under the new Real Estate Agents Act 2008, which comes into effect on November 16, agents would be required to hand out several other documents and it would become second nature to them. There are also advantages for buyers. For example, said lawyer Tony Steindle of Steindle Williams - who nonetheless does not recommend it - the new agreement required in the case of unit-title properties that the vendor gave the buyer all the information and certificates that a buyer might require. GST on property sales was also clarified. Ms LeCren said the new agreement included compulsory, but not binding, mediation, meaning both parties would have to talk before taking legal action. Lawyers could replace clauses they were not happy with in the agreement provided the buyer or seller had not signed the document. http://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=10588008 Excerpt: Homebuyers are being warned not to use a new sale-and-purchase agreement which may not allow them to cancel a deal if a pre-inspection report shows problems with the property. ### Fix your mortgage - home buyers told By JAMES WEIR - The Dominion Post Home buyers can expect mortgage interest rates to start rising by the middle of next year and be 3 per cent higher in 18 months, economists say. As widely expected, the Reserve Bank held the official cash rate unchanged yesterday at 2.5 per cent, because of a "patchy" economic recovery and uncertain outlook. The central bank repeated its concerns about the high kiwi dollar and the damage being done to exporters. Most bank economists do not expect further immediate cuts in the official cash rate or mortgage rates, though one bank still expects two more small cuts in September and October. But because interest rates are expected to start rising again, economists suggest home buyers borrow on a three-year fixed rate of about 7 per cent now, rather than risk short-term or floating rates of around 6 per cent next year. ASB Bank chief economist Nick Tuffley said low interest rates were "reviving" the housing market. House prices were stabilising, though prices remained high compared with household income and rent. "House prices are no longer extremely expensive, just expensive," he said. Rising unemployment would work against price rises, though a housing shortage could see a brief short-term pick up. There was little risk of further big falls in prices. Bank of New Zealand chief economist Tony Alexander dismissed earlier predictions from some commentators that house prices could dive more than 30 per cent in the recession. The housing market was now recovering, although "it is not going to run away with itself for some time", he said. Positive factors included the housing shortage, low levels of new home building, rising migration and low interest rates. But that would be offset by a continued rise in unemployment and more investors being burnt after borrowing too heavily at the peak of the market boom. But Mr Tuffley said rates would go higher, so people should leave a safety margin getting a mortgage. The economy should improve next year, so official cash rates could move back to about 5 per cent. "Given the uncertainty, it's not bad to hedge your bets fix some debt for two to three years and have some on six months."   http://www.stuff.co.nz/business/personal-finance/2705789/Fix-your-mortgage-home-buyers-told Excerpt: Home buyers can expect mortgage interest rates to start rising by the middle of next year and be 3 per cent higher in 18 months, economists say. ### Congrats on the launch of another great magazine Ian Mellett and the team at Quay Law would like to congratulate Gary and Gayle on the official launch of the Lets's Travel magazine. Well done!  Another superb addition to your current list of publications. Excerpt: Ian Mellett and the team at Quay Law would like to congratulate Gary and Gayle on the official launch of the Lets’s Travel magazine. ### Key requirements under the Migrant Investment Policy Key requirements under the Migrant Investment Policy Investors and entrepreneurs will find it easier to get residency in New Zealand following the government's decision to relax business migrant rules. Please find below a table provided by Immigration New Zealand highlighting the Key Requirements under the Migrant Investment Policy. The Migrant Investment Policy has two residence sub-categories. Click for Table showing key requirements under the Migrant Investment Policy For more information regarding your New Zealand Immigration matters, please contact the friendly team at Quay Law. Auckland Law firm, Quay Law is located in a central city location with easy access and on street parking. Excerpt: Investors and entrepreneurs will find it easier to get residency in New Zealand following the government’s decision to relax business migrant rules. ### Migrant investor changes to open doors TVNZ The government's relaxation of immigration rules for wealthy investors has been described as "timely and smart". On Tuesday, Immigration Minister Jonathan Coleman announced changes making it easier for rich investors and entrepreneurs to get residency by lowering thresholds for entry. Those who are willing to invest $10 million could get residency within three years without any English skills or business experience, and no age limit. As part of their residency that have to remain in New Zealand for 20% of every year. Previously, investors required $20 million for four years with four years business experience. The rule changes also set a lower threshold for those investors willing to invest $1.5 million. They could get residency based on their investment though they have to meet language and age requirements and have business experience. Previously, the requirement was a $2.5 million investment. Investors also have to remain in New Zealand for 40% of every year and have $1 million in settlement funds. Auckland Chamber of Commerce CEO Michael Barnett says the changes are a timely and smart move. "Overseas business migrants with the ability to bring capital into New Zealand need constraints removed," he says. David Cooper, operations manager of immigration consultancy Malcolm Pacific, says the changes might help turn the tap back on for money from China. He does not think a lack of English would be a problem for people with $10 million because they could hire translators. Investment management specialist Tim Howe of Ocean Partners also believes the new rules will go some way to enticing wealthy investors. Kim Saull, vice president of the Association for Migration and Investment, says the changes to the threshold for the upper tier of investors will make a difference, not necessarily because the amount of money required has been reduced, but because the removal of language requirements and age limit will "open the doors". But he believes changes to the second tier investment threshold is "the clincher", particularly the lifting of the age limit to 65. "The sort of people that we're looking at are generally people who are close to or just retired, who are looking to move and bring with them a significant amount of money. That lifting, I think, will make the difference, and bring in a lot more people," he says. Changes to the policy take effect immediately. http://tvnz.co.nz/business-news/investor-immigration-changes-open-doors-2878495 Excerpt: The government’s relaxation of immigration rules for wealthy investors has been described as “timely and smart”. ### Business migrants rules relaxed www.stuff.co.nz Rich investors and entrepreneurs will find it easier to get residency in New Zealand following the Government's decision to relax the rules. Economic Development Minister Gerry Brownlee and Immigration Minister Jonathan Coleman said since 2007 only 23 people had entered the country under the old business migration policy. As a result the criteria was being overhauled and the barriers reduced. Now investors with $10 million could get residency in three years without any English skills or business experience and no age limit. The similar criteria previously required $20 million for four years with four years business experience. Other investor and entrepreneur policy has also been changed. The ministers said there was anecdotal evidence that New Zealand was missing out on desperately needed capital. http://www.stuff.co.nz/business/industries/2682118/Business-migrant-rules-relaxed Excerpt: Rich investors and entrepreneurs will find it easier to get residency in New Zealand following the Government’s decision to relax the rules. ### Signs of life in property market GOOD NEWS: The Mike Pero Mortgages-Infometrics property cycle indicator has climbed to its best reading in two years www.stuff.co.nz An indicator of the housing market improved to its best reading in two years, as the economy struggled to escape a recession that began at the start of 2008. The Mike Pero Mortgages-Infometrics property cycle indicator climbed to a positive 4.01 in June, from 0.31 in May, the first time it has been at that level since mid-2007. The indicator includes three main factors -- changes in the number of houses sold, changes in price, and the time taken for houses to sell. June's median house price of $340,000 was unchanged from a year earlier, the best result in 15 months and halting the slide in house values, Mike Pero Mortgages chief executive Shaun Riley said today. "The average time for a house to sell reduced by 12 days, again a significant improvement and the biggest year-on-year change since 2003. "The third indicator measure, the number of houses sold, was up by 40 percent year-on-year," Mr Riley said. Auckland in particular was leading the market, with a regional indicator of positive 4.87, the strongest in the country. Canterbury was also showing strength with a regional indicator of positive 3.6, the best result in the South Island. NZPA http://www.stuff.co.nz/business/personal-finance/2677939/Signs-of-life-in-property-market Excerpt: An indicator of the housing market improved to its best reading in two years, as the economy struggled to escape a recession that began at the start of 2008. ### Early action saves your home By Andrea Milner - NZ Herald Photo / Janna Dixon Fiscally pressured property owners are losing their homes in bank fire sales because they leave it too late to fight back. Terralink figures show April mortgagee sales reached a new peak of 251, up from 201 in March and 90 a year ago. The best time to talk to the bank is before you default on a payment. Banks have an incentive to work with a homeowner to prevent a forced sale, says financial adviser Kathy Jarrett, because it's more expensive to get rid of them. Lawyer Alistair Hall says options include negotiating a mortgage "holiday," switching to interest-only or capitalising interest onto the principle. Changing payment terms can also give a window to sell privately, securing a better price. People who borrowed a high proportion of their property's value during the height of the last property boom have the fewest options, says mortgage broker Kris Pedersen. "The market has dropped so effectively these cases are 110 per cent geared. The agents take their commission, and often they're six months in arrears by the time of the mortgagee auction, so it could take 120 per cent of the property's worth to clear the debts."   But homeowners with good equity hit by an income drop can hang on by refinancing, or opt to sell themselves before the bank puts on the pressure. If the mortgage is in arrears, a family member may lend enough to keep up payments until the home can be sold privately and the loan repaid from the equity. Darryl Evans, chief executive of Mangere Budgeting Service, says people in debt often "ignore the mail", not taking action because they're embarrassed. But there are many reasons an owner may battle to keep the roof overhead, from redundancy to relationship break-ups. Asking a budget or financial adviser to help puts the homeowner in a stronger position. An adviser can negotiate on the homeowner's behalf to freeze action against them. Evans advises owners to think of ways to increase their incomes, such as boarding students from language schools. One family who had arrears sorted their belongings and sold things they weren't using on Trade Me, raising most of the amount needed to clear the debt. Andrew Lawson of Mangere Community Law Centre says another reason to tackle potential problems early is that the financial hardship provisions of the Credit Contracts Act can sometimes help homeowners through temporary setbacks. Barrister Paul Dale says homeowners may have other legal remedies where there's a serious issue to be tried, but generally it's a matter of negotiation. He urges banks to consider circumstances sympathetically because "the social cost of putting people on the street is enormous". How to save your home from becoming a mortgagee sale statistic Duane and Kylie* own a home worth $600,000 and had a mortgage with ANZ of $256,000. Duane ran a building business and got caught when a major customer went bust, leaving an unpaid bill of $65,000. This caused cash flow problems, and money became tight. Duane laid off his three staff and tried to keep going. Unfortunately, the couple stopped meeting mortgage payments and did not talk to ANZ. They didn't tell their mortgage broker Jeff Royle about their predicament until the final Property Law Act notice arrived, advising that unless ANZ received full repayment of the loan by a specified date, mortgagee sale proceedings would start. "The first thing I did was contact ANZ and get its side of events so I could formulate a plan," says Royle. "It also meant that ANZ knew that there was someone trying to rectify the situation." Even though the mortgage was less than half the house's value, no other bank would refinance it with a Property Law Act notice in force. That left three options. The couple could sell and downsize or rent for a while; they could find a family member to help out; or try to find a finance company prepared to deal with them. Duane found work in Australia and Royle brokered a 12-month facility with a local finance company. By capitalising 50 per cent of the mortgage payments, the couple are able to service the new loan. ANZ was paid in full and Duane is still in Australia sending money back. "This was a typical case of a person who has always paid their way and suddenly got into trouble," Royle says. "I see this almost every day." His advises anyone who thinks they might be heading for trouble to contact their lender immediately and put in place a plan, such as paying interest-only for a while, taking a payment "holiday" or restructuring debts. "Lenders are willing to listen, what they really don't like is silence - they always fear the worst." * Surnames withheld by request. http://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=10586595&pnum=0 Excerpt: Fiscally pressured property owners are losing their homes in bank fire sales because they leave it too late to fight back. ### Multiple house owners hit hard by mortgagee sales NZPA | Monday July 27 2009 - 07:55am  Unprecedented numbers of mortgage sales are the result of New Zealanders who over-extended themselves during the property boom by buying multiple investment properties, according to new figures. The data, released today by Terralink International, showed 247 registered mortgagee sales in May, compared to 88 for the same time last year. Terralink managing director Mike Donald said the numbers were a sign that stress in the property market was not letting up. "The numbers of mortgagee sales in May is on a par with the previous month, but the number is still at a level unseen in the 15 years we've been recording these figures. "All indications are that increasing numbers of New Zealanders will lose their properties via mortgagee sales. Early predictions for mortgagee sales in June show the level will reach a new record." Mr Donald said those being hardest hit by mortgagee sales were individuals and corporate property investors. "Many New Zealanders took advantage of the property boom by buying a number of properties, but now that times are tough servicing multiple mortgages is becoming impossible for increasing numbers of New Zealanders." Of the total mortgagee sales, 81 percent of them were for individuals or companies, who owned more than one property. "In contrast, only 19 percent were for properties owned by an individual who had only one property. That would be what we would think of as the family home," Mr Donald said. The North Island accounted for 75 percent of the mortgagee sales with 44 percent in Auckland alone. However, parts of the South Island had been hit hard in May, with Otago experiencing a 60 percent increase and Canterbury a 42 percent increase on the previous month's mortgagee sales. www.nbr.co.nz/node/106479 Excerpt: Unprecedented numbers of mortgage sales are the result of New Zealanders who over-extended themselves during the property boom by buying multiple investment properties, according to new figures. ### Rob Report - Orakei to Glendowie Property Stats : May 2009 Dear Valued Rob Report Subscriber, Please find attached a copy of The Rob Report for Orakei to Glendowie (May 2009). I would like to thank the following local business owners for their support in the production of The Rob Report. Ian Mellett – Quay Law Anna Mooney – Anna Mooney Design Peter Reid – Enact Business Architect Andrew Ball – Ease Mortgages & Insurance Wendy & Declan McEntegart – Kitchen Central Cooking School Christine Lineham – Mondo Travel Remuera  If you require the services of any of the above professions, please do not hesitate to contact me.  Coming soon……………. The Rob Report – Remuera & Parnell – June 2009.  Note: If you no longer want to receive copies of The Rob Report please advise.  Regards  Robert Ashton AREINZ BE (Structural) Residential Sales CLICK ON LINK for detailed PROPERTY report The Rob Report May 2009 Orakei to Glendowie - Eastern Suburbs Excerpt: Please find attached a copy of The Rob Report for Orakei to Glendowie (May 2009). ### Plain English Is Plain Good Sense Wednesday, 22 July 2009, 10:29 am Press Release: REINZ FOR IMMEDIATE RELEASE News Release 15 July 2009 Plain English Is Plain Good Sense Home buyers and sellers in New Zealand will find understanding the process they are signing up for a great deal easier with the introduction of plain English forms. ‘People who are buying or selling a property have a right to understand the implications of what they are signing. The new forms are designed to do away with ambiguity and complexity,’ says REINZ chief executive Christine Le Cren. That is why the Real Estate Institute of New Zealand (REINZ) has been working on the development of the forms, engaging a team of writing and legal specialists to ensure the forms achieved their objective of simplifying the process while maintaining the forms’ legal integrity. ‘It took some 50 drafts before everyone was satisfied, but we believe the result gives us the best of both worlds,’ says Mrs Le Cren. ‘We have not compromised the law, but we have written the law and contractual terms and conditions in plain English and we have followed plain English principles in both the text and the design and layout.’ Plain English specialist, Write Limited, was hired for the challenging task of making the agreement forms for buying and selling real estate clear, simple and user friendly. Design and layout specialist Optimal Usability was engaged to design the forms to complement the principles of plain English. ‘We believe the new forms for private treaty agreements, sale by auction agreements and sale by tender agreements not only read better; they are better laid out and designed to copy and fax and to prepare and produce online,’ Mrs Le Cren says. An enormous degree of consultation went into the development of the new forms. Ensuring the word of the law was not lost in translation, REINZ appointed Barry Gunson, a lawyer from Hamilton, as head drafter for the documents. Mr Gunson says ‘It has been a privilege to be involved with the preparation of the new REINZ agreement forms. ‘Every effort has been made to make the forms easy to understand. However, the overriding consideration has been to make sure they are legally sound and suitable for the current real estate environment’ he says. ‘Barry had a number of legal specialists in property law peer review his drafting and three large groups of real estate agents and salespeople were also formed to comment and give feedback through the drafting process,’ Mrs Le Cren says. ‘Then, Chris Moore, chairperson, and the executive members of the Property Law Section of the New Zealand Law Society reviewed and commented on the drafts.’ From a consumer point of view, the forms are getting the thumbs up. In the process of buying an investment property, Ian Glogoski was shown the new form at the user testing phase and said he found it a great deal easier to read than the existing form. ‘It was more in your face with bold headings and open text. The old form’s small print was a struggle to get through, whereas with the new form, you could easily see what you needed to read and what was relevant to you. It wasn’t nearly so much of a slog.’ The Director of Write Limited, Lynda Harris, is delighted with the Real Estate Institute’s commitment to giving real estate agents the opportunity to communicate openly with their clients. ‘Plain English is about giving greater clarity and precision to a document, with the reader’s needs uppermost in the writer’s mind. Redrafting in plain English takes time and an intelligent mind. Our views and work are based on solid research and practical results by many lawyers who have embraced plain English and gone on to widely publicise its benefits.’ To critics of plain English who suggest it is simply ‘dumbing down’ a document to the point where it loses its meaning, particularly from a legal perspective, Ms Harris is confident the documents hold up. ‘We realise there will always be some tension between the relative safety of using precedent documents and terminology, and their plain English equivalents. However, according to a lawyer who presented a paper at the 2008 international Plain English conference, CLARITY, there are no recorded instances of plain English contracts being the subject of litigation or dispute because of the plain English wording. The expectation is actually quite the opposite.’ Says Mrs Le Cren, ‘we believe the forms will be overwhelmingly popular with the public who need to have absolute confidence when making an important life decision. http://www.scoop.co.nz/stories/BU0907/S00566.htm Excerpt: Home buyers and sellers in New Zealand will find understanding the process they are signing up for a great deal easier with the introduction of plain English forms. ### Legal advice should be sought before setting up a Trust Trusts have become an increasingly popular way of structuring one's affairs.  It is important for those intending to use a trust to be clear on the legal relationships and obligations involved. You should obtain legal advice before setting up a trust. For more information on trusts see our website or contact the friendly Quay Law team. Excerpt: Trusts have become an increasingly popular way of structuring one’s affairs. It is important for those intending to use a trust to be clear on the legal relationships and obligations involved. ### NZ home loan affordability worsens as house prices bounce   The BNZ Home Loan Affordability measure worsened in June from May, thanks to a slight rise in average fixed mortgage rates and an increase in the median house price. The rise in both house prices and interest rates helped increase the proportion of after-tax pay needed to service a mortgage on a median home to 56.3% in June from 55.9%. However, this is sharply better than the 78.1% seen a year ago and the record worst level of 83.4% in March last year, said www.interest.co.nz, which produces the series of national and regional reports for BNZ. Affordability improved in an unbroken run through 2008 as interest rates fell sharply and house prices fell. A rise in after-tax incomes because of wage inflation and a tax cut helped extend the trend. But that run of improvement ended in February, March and April this year as house prices stopped falling and interest rates began to bottom out. “The rebound in the housing market through the autumn and winter will please homeowners, but first home buyers are now finding it slightly more difficult to get into the housing market,” said Interest.co.nz editor Bernard Hickey “Housing affordability is unlikely to improve much further without further significant falls in house prices, given wage growth is likely to be subdued in the next couple of years without further tax cuts and as unemployment rises,” Hickey said. The indefinite delay of tax cuts planned for 2010 and 2011 puts all the weight on interest rates and house prices as sources for further improvement. The REINZ median house price rose to NZ$340,000 in June from NZ$337,500 in May, while the average 2 year mortgage rate rose to 6.25% from 6.23%. Affordability hit its worst level of 83.4% in March 2008 just after house prices peaked and 2 year mortgage rates were close to 10%. Many home buyers jumped in March , April and May to take advantage of lower interest rates and look for bargains, which improved the number of houses sold and stabilised prices. But short term mortgage interest rates flattened out in late March and longer term mortgage rates began to rise in line with rises on wholesale markets. Affordability remains slightly out of reach for most individual home buyers. The threshold proportion of after tax income considered prudent to sustainably own a house is around 40%. Anything above that is starting to become unaffordable. Affordability also worsened for a typical first home buyer. The Housing Affordability report’s measure shows the mortgage servicing proportion worsened to 44.3 in June from 44.1% in May. This measure is for a median income earner aged 25-29 buying a first quartile home. Interest.co.nz thinks the ‘affordable’  threshold is 40% for such a home buyer.   For more articles by Bernard Hickey visit http://www.interest.co.nz/ratesblog/ About Bernard Hickey Bernard is the editor of interest.co.nz. He worked for 18 years for Reuters, the FT Group and Fairfax as a financial journalist and editor. Excerpt: The BNZ Home Loan Affordability measure worsened in June from May, thanks to a slight rise in average fixed mortgage rates and an increase in the median house price. ### $10,000 commission - no deal By Anne Gibson Kate Holgate and son Jack in front of a house she tried to buy in a 'part exchange' deal with her own house in Torbay. Photo / Paul Estcourt A North Shore house-hunter who lost money on a failed deal wants to warn others to avoid her fate. Kate Holgate and her partner signed a contract to pay cash and swap their Torbay house for a more expensive Long Bay house. Classic Real Estate, trading as The Professionals Mairangi Bay, got $31,000 commission of which Holgate paid $10,000. But the deal soured after the bank refused to discharge the mortgage on the Long Bay house and no transaction was completed. Holgate said the situation was unfair because she was left out-of-pocket, with no new house and with no one to complain to. After mid-November, property deals gone sour will go before the Government's new real estate agents authority which aims to bring independence, transparency and more power to consumers. The new Real Estate Agents Act 2008 removes many functions that the Real Estate Institute fulfils, overhauls the complaints system and axes the old law passed 32 years ago. Holgate said she had nowhere to turn apart from private litigation, more expensive than the $10,000 she has lost.  "The crux of the issue - and very relevant to others in the current market - is that the agents deducted their commission before settlement took place. They also got commission of approximately $21,000 from the other vendor with whom we were trading houses. We were also paying him a cash difference as his house was more valuable so it was not a straight swap. "The agents have not wanted to know about our plight and we have had no apology or explanation from them as to why they feel they are entitled to keep our money," she said. Havard Daniels, licensee of The Professionals Mairangi Bay which has since shut, said he talked to the agents involved in the deal but could do nothing to help. "It appears that Classic Real Estate and [the agents] have acted correctly. The decision to cancel the contract was out of our control and made by yourselves," Daniels told Holgate. "I can find no information that would indicate we have acted other than in the best interests of all parties to the transaction," he said, citing the reasons behind the deal failing to proceed. The vendor of the Long Bay house was helpless after the move by the bank "pulling the rug from underneath" him, Daniels said. It was Holgate's call not to take action against that vendor. http://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=10585194 Excerpt: A North Shore house-hunter who lost money on a failed deal wants to warn others to avoid her fate. ### Wife wins in court's property shock 4:00AM Sunday Jul 19, 2009 A landmark Supreme Court judgment has opened the way for wives to take a share of their husbands' property - even though they owned it before the marriage. A prominent Auckland family law barrister has described the decision as "shocking", saying the woman has won a huge payout as a result of her performance of domestic chores during the 24-year marriage. The court says the woman is entitled to almost half of the increased value of the couple's farm, even though her ex-husband inherited it before their marriage. The long-running dispute case - heard before four different courts - is expected to open the floodgates on a series of similar disputes. The Supreme Court has agreed with the Court of Appeal the woman is entitled to a 40 per cent share of the increased value of her husband's farm, even though he owned it before their marriage in 1979. They separated in 2003. The woman argued that as the homemaker, her duties helped her husband focus on developing the farm and, later, a vineyard on the land. At stake were two properties - the second was inherited by the husband in 1995, during the marriage. The wife won at Family Court level, but lost in the High Court. For round three, the Court of Appeal said the wife was entitled to almost $560,000 for both properties. Both parties appealed to the Supreme Court - the husband said his wife was not entitled to any of that money; she said she was entitled to more. "The argument for the wife was that her actions since marriage had freed up the husband to undertake work solely for the benefit of his separate property and that she had prevented the debt from reaching an unsustainable level," the Supreme Court said. "In addition to looking after the children and managing the household, she had earned over $300,000 from outside employment, all of which she had contributed to the household." The wife asserted had it not been for her actions the farm would have been sold to ease debt, and neither party would have seen the "spectacular increase" in the value of the property. Barrister Anthony Grant has described the case as involving "the annihilation by stealth of separate property". He says the case is "shocking" and "a stunner", not necessarily because it was wrongly decided, but because people had not been aware that "indirect contributions" involving something as ordinary as household chores could convert a spouse's separate property into relationship property. "In a typical marriage where, say, the husband has separate property from an inheritance or a prior relationship he is now liable to lose it if his wife can say that her doing the housework helped him to increase the value of the property. While he was at his desk working on his separate property affairs and his wife was doing the dishes, sweeping the floor, feeding the kids, and so on - she was simultaneously taking the separate property!" He says the case will have a major impact on all cases involving separate property. The farm was worth $301,200 when the couple married, and about $1.5 million in 2005. Some of that increase was related to the development of the farm as a vineyard. The Court of Appeal determined the relevant increase at stake was $747,800, of which the wife's share was determined to be 40 per cent, or $299,120. She received a further $283,000 in relation to the other property. The Supreme Court acknowledged that the "general purpose" of the Property (Relationships) Act provided for the sharing of property which either partner brought into or acquired during a relationship. "Property owned before the relationship is, prima facie, excluded from the sharing regime but can, in certain circumstances, become subject to it." This included when values of that property increased during a relationship. "The basic approach is that if the non-owning partner contributes to an increase in the value of the other partner's separate property, that increase in value becomes relationship property and thus subject to the sharing rules." The Supreme Court upheld the 60/40 split for the husband and wife on the first property's value increase. "We are not, however, persuaded that the court erred in declining to treat the parties equally." The Supreme Court said it seemed the husband's contributions to the increase in value of the land were greater than the wife's, and the split should stay 60/40 in his favour. The bitter dispute featured some of New Zealand's biggest legal names, including Anne Hinton, QC, acting for the wife, and Colin Carruthers, QC, for the husband. Grant suggested three ways for spouses to avoid the loss of separate property: A Section 21 agreement that specifies who owns what before the relationship and ensures indirect contributions don't affect that arrangement. Vesting separate property in a trust at the outset. Get a nanny or housekeeper do the housework. Lawyer Andrew Watkins told North & South magazine that the decision was "very significant". "It will certainly put the owner of the land on the back foot. It's sending a signal to husbands, or people who have separate assets, to sign an agreement first. That's the first and best thing to do." http://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=10585353&pnum=0   Excerpt: A landmark Supreme Court judgment has opened the way for wives to take a share of their husbands’ property – even though they owned it before the marriage. ### Blow to NZ's economy By TRACY WATKINS Growing economic confidence has been knocked by New Zealand being placed on negative creditwatch as the Government puts its hat out to international lenders. International ratings agency Fitch said it was worried about New Zealand's high debt levels and reliance on overseas borrowing. The agency confirmed New Zealand's rating at AA plus, but yesterday's decision to revise its outlook for New Zealand's credit rating from stable to negative came out of the blue. It comes as the Government looks to increase its borrowing the Budget foreshadowed a need to borrow $34 billion over the next four years to help cushion the blow of a recession. Any threat of a downgrade could push up borrowing costs. But Finance Minister English said he was confident that would not happen. The Government had so far managed to raise money "at a reasonable cost". But with the Fitch warning coming as it prepared to seek more money between now and Christmas, more assurances may be required. "We are setting out to borrow a large amount of money and we're going to be going to those investors who are lending us to tell them our story. No doubt this kind of new rating will mean they've got a few more questions." Earlier in the year, there were serious concerns the global credit crunch would leave money in short supply and force the Government to borrow at higher rates. A credit downgrade hung over the Government in the leadup to the May Budget, but its decision to cancel the next round of tax cuts and trim spending looked to have staved that off, with one of the biggest ratings agencies, Standard & Poor's, awarding an upgrade. Fitch said it was worried about the medium-term growth outlook for New Zealand given its persistently large current account deficit and rising indebtedness. Analysts said it also appeared to be worried about the risk of another housing market bubble, funded by overseas borrowings. Fitch head of Asia Pacific sovereign ratings James McCormack told Radio New Zealand today that he thought New Zealand's current account deficit was a structural feature of the economy. "It does tell us the economy as a whole is living beyond its means and borrowing money to finance that," he said. "When the economy is living beyond its means you can divide it into the public and private sector and the private sector is not saving enough money in New Zealand, so we think if that is going to be the case going forward then it comes down to the public sector to save more money." That would mean spending cuts. Fitch was not critical of the Government providing tax cuts, saying countries all over the world were trying to provide short term stimulus during a global recession. Ad Feedback It acknowledged it was a difficult time for exporters. "It's difficult for the export sector, there's no question about that, there's the pricing effect and there's the New Zealand dollar and the third factor is global demand." Householders needed to change their behaviour. "Household savings are particularly low in New Zealand, even lower than they have been in the US. . . they probably need to come up to a higher level." Mr McCormack said if householders did improve saving there could be an "unpleasant adjustment" as their reduced spending impacted on the economy. The previous government started the Kiwisaver scheme and New Zealand Superannuation Fund to improve savings but it was "probably not enough". Another concern Fitch raised was that the housing sector may bounce back and see even more borrowing. Mr Fitch said the agency would continue monitoring what happened in New Zealand. Credit rating downgrades affect New Zealand's ability to borrow money and interest rates charged. "I think in order for the outlook to go up to stable we'd need to see an adjustment in the current account balance," Mr McCormack said. "We started to see that in the first quarter. If the current account deficit continues to decline and decline in a meaningful way such that the external debt of New Zealand stabilises then I think the rating outlook could go back to stable." Both the previous Labour government and the National Government have continually urged New Zealanders to save more. But its pessimism contrasts with signs of renewed confidence in recent weeks including Reserve Bank Governor Alan Bollard's suggestion that New Zealand is likely to begin recovering from the global financial crisis ahead of the pack. "The New Zealand economy has taken some knocks but some form of recovery is now on the horizon," he told a business audience this week. But Dr Bollard appears to be ahead of the Government Mr English was careful yesterday not to endorse his view. Asked if he agreed with Dr Bollard, he would say only "any optimism is welcome". There was one silver lining yesterday, however the Fitch report came as Mr English was in Brisbane for talk with his Australian counterpart, Wayne Swan, where a deal was finally done to allow workers from each country to transfer their retirement savings home. Australia's tax office estimates as much as A$13 billion (NZ$16.17b) is held in lost accounts within its compulsory superannuation system much of it believed to belong to Kiwis who have crossed the ditch to work. New Zealanders will now be able to transfer those savings to their KiwiSaver accounts, and vice versa. Mr English said he expected legislation within 12 months. WHAT IS THE CURRENT ACCOUNT DEFICIT? The difference between what we earn overseas from our exports and investments, and what we pay for our imports and the investments foreigners have in New Zealand. - with NZPA http://www.stuff.co.nz/national/politics/2601367/Blow-to-NZs-economy Excerpt: Growing economic confidence has been knocked by New Zealand being placed on negative creditwatch as the Government puts its hat out to international lenders. ### Spending goes out of fashion By Martin Hawes The recession has skittled the plans of a lot of people. A sizeable part of the population now believe they no longer have the chance of a decent retirement and have nearly given up on investing for the future. This may be the perception but the reality is quite different; in fact, for many the opposite is true - the recession ought to make a good retirement more achievable. This is for three reasons. The first is the obvious one, that asset values, especially shares and property, are much lower. I am confident that anyone investing in the next couple of years will enjoy better returns in the next decade than they have in the past. While it is not possible to be sure we have seen the bottom of investment markets, asset values currently offer better value than they have for a long time. Second, interest rates are low. While this may not be permanent, there is currently a good opportunity to retire debt quickly. Those with substantial mortgages should keep their repayments up when they have an interest rate reduction and therefore pay off their mortgages quicker.   Third, conspicuous consumption is no longer the order of the day. It is more socially acceptable to reduce expenditure and go without things - it is easier to say "no" to the kids or to make a case to your partner justifying why an expenditure item needs to be deferred. The great consumption competition we have witnessed for the past decade is over and this should reduce pressure on the budget meaning you will have more money available for investment. I am not sure who won the great consumption game but I know there were plenty of losers. As people competed to have more (mostly on borrowed money), there were many who fell by the wayside. Certainly, there are groups of people whose financial plans will have been much harder hit and who will find a decent retirement difficult: those in their 50s and 60s will need to resolve to work longer. The other group comprises those who lose their jobs and take a long time to get back into employment. They will be permanently affected if they are not serious about retraining or getting into other work. The recession is a threat - but it is also an opportunity. Those who keep their employment and businesses will continue to have good cash flow. The zeitgeist has changed. It is now perfectly all right to be into debt reduction or investment rather than competing to consume. http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10583876 Excerpt: The recession has skittled the plans of a lot of people. A sizeable part of the population now believe they no longer have the chance of a decent retirement and have nearly given up on investing for the future. ### Buying a Business or Franchise Your agreement is crucial.  Do not sign any agreement until you have spoken to your lawyer and taken legal advice. This could save you and / or your business a lot of time and money in the long term. Aspects that should be considered amongst others, are: Franchising Company structure Business premises Regulations governing your proposed business sector Contract terms and Service Level Agreements (SLA) Intellectual property Finance For more legal support when purchasing a business or franchise, contact Auckland Lawyer,  Ian Mellett of Quay Law. Excerpt: Your agreement is crucial. Do not sign any agreement until you have spoken to your lawyer and taken legal advice. ### Screwed by the brood Some parents who have guaranteed their children's property purchases have lost their own homes as a result. Photo / Janna Dixon By Andrea Milner A growing number of older people are finding themselves struggling to pay their children's mortgages. And the problem is set to worsen as banks encourage families to collaborate financially to circumvent tightened lending criteria. During the last housing boom, many parents helped their kids get into homes. Financial adviser Kathy Jarrett says often they were convinced by their children's mortgage broker, real estate agent or banker, ignoring advice from their own advisers. Commonly they mortgaged their own homes and gifted loan proceeds to their children on the understanding that the kids would be responsible for the repayments. "But now they're quietly having to pay themselves, sometimes having to come out of retirement and try to get work," Jarrett says. Mortgage adviser Bruce Patten says it is becoming even more common for parents and children to mingle their finances because of banks' higher deposit requirements. Banks still want to capture the market that needs to borrow more than 80 per cent of a property's value, so they're promoting parental guarantees, joint borrowing and gifting.  Broker Kim Lyons of Be Mortgage Free says joint borrowing is "really ugly - [the parents are] in hook, line and sinker, so the kids can just up and off and mum and dad are left with the whole debt, especially with the short duration of some relationships now". Daniel Feller of Financial Pictures says banks have done "a great marketing job, pushing people into these products and grabbing more security by way of parents' property and guarantees". Patten says he is dealing with more loans now than he has in the past eight years where parents are used as guarantors or stump up the deposit to get their children into a home. Property lawyer Tim Jones of Glaister Ennor says if the bank sees inadequate security in the children and the house they're buying, they ask for a parental guarantee secured over the parents' home. Frequently, parents keen to help out their kids ignore the risks. He has seen well-meaning parents end up losing their homes. Patten says parents are also getting loans to help bail children out of mortgagee sales, buying time so the children can sell the property themselves. Lawyer Terry Carson says in some cases parents buy the house off their kids to pay off the bank, then rent the house to them in the hope they will be able to repurchase it down the track. Demographer Bernard Salt says baby-boomers' childhoods were dominated by austerity, and pride in their middle-class prosperity rouses them to provide their children with the young adulthood they never had. "Suddenly parents are funding their Generation Y kids' lifestyles - their OE, the purchase of a house and the mortgage repayments. And what's more, Generation Y pretty much expects it." Salt says Gen Y has tertiary education loans, cellphone debt and travels extensively - costs that were not previously part of a 20-something's life. Feller says if parents want to help, it is better to keep their affairs separate from their children's and simply lend or gift money rather than offer security and guarantees. Jones advises parents to get independent advice. "Be prepared to say no if you have to, and if you do say yes, be aware of the risks." Parents put home on market as help rebounds When Mr and Mrs P's son needed funds to open a bar in Auckland, the retired couple lent him $60,000, secured against their home. They had a $65,000 mortgage already but as their home's value was $675,000, the combined borrowings amounted to only 18 per cent of the property's worth. Their son promised to pay the interest on the $60,000 advance, but the business foundered and the loan fell into arrears of $7000. His parents, whose only income is from a pension and superannuation, tried to negotiate lower repayments with their bank, but it threatened a mortgagee sale. Mr and Mrs P were forced to re-finance more expensively with a second-tier lender. Their son went to Australia and he is not making regular repayments. Meanwhile, his parents have to forgo having holidays or a dinner out as they cut their expenses to meet their higher mortgage payments. They plan to sell their home and downsize to a smaller house. "We wanted him to make something of himself without the problems either of us had coming up through hard times," says Mr P. "We see it as a responsibility to make sure he doesn't have to live like we did in our early years." http://www.nzherald.co.nz/residential-property/news/article.cfm?c_id=76&objectid=10583880&pnum=0 Excerpt: A growing number of older people are finding themselves struggling to pay their children’s mortgages. And the problem is set to worsen as banks encourage families to collaborate financially to circumvent tightened lending criteria. ### Lowest Home Loan Interest Rates Website Launched Wednesday, 8 July 2009, 10:18 am Press Release: Mike Pero Mortgages A joint venture between Mike Pero Mortgages and one of its brokers, Jason Barba, has launched a website of New Zealand’s lowest home loans interest rates. Lowestrate.co.nz allows you to sign up for email updates showing where to find the lowest home loan interest rates and how they compare to your preferred lenders. The website is updated daily. Mike Pero Mortgages Chief Executive Shaun Riley says Jason Barba approached management last year with the concept. “Jason joined the Mike Pero Mortgages team in September 2007 and one year later he came to see me about the lowestrate.co.nz concept. He was very enthusiastic about it and had done his homework on it. We worked through the terms of the joint venture and one year later lowestrate.co.nz was launched,” says Shaun Riley. Jason Barba and his family moved to New Zealand from America four years ago after he read a book about New Zealand, which depicted the country as being clean, green, safe from terrorism and it enjoyed a more relaxed, family-friendly culture. “I suppose you could say the whole idea about lowestrate was all due to me picking up that book and reading it,” he says. “I came to this country driven by a desire to leave behind the culture of poverty and struggle. I’m always striving to improve myself and the well-being of my family and community and I’m eager to help those in need. This is the main motivation for my work as a mortgage advisor and ultimately as the creator of lowestrate.co.nz.” Trends Media Services, a subsidiary of Trends Publishing International, has been involved in the web design and brand imaging of the new website. “The work done by Trends Media Services is world-class and ultimately the result of attention to detail and a commitment to deliver immense value to the unique New Zealand mortgage market”, says Jason Barba. He says there are plans to launch new features and services on the website. There is also a concept in the pipeline to create a charity called Lowestrate Foundation, which will work with other charities to help build awareness and financial support for worthy causes in New Zealand. Lowestrate.co.nz also puts you in contact with a local Mike Pero Mortgages broker to provide expert advice about which terms and lenders are right for you. http://www.scoop.co.nz/stories/BU0907/S00209.htm Excerpt: A joint venture between Mike Pero Mortgages and one of its brokers, Jason Barba, has launched a website of New Zealand’s lowest home loans interest rates. ### NZ cities more affordable A fall in the value of the New Zealand dollar has made Auckland and Wellington much cheaper places to live for expatriates working for multinational organisations. Mercer's worldwide cost of living survey, carried out in March and published today, showed the two New Zealand cities had close to the lowest cost of living out of 143 cities covered. Auckland was in 138th place, from 78th a year earlier, with a cost of living index of 54 compared to 81 in March 2008. The index is based on a figure of 100 for New York. Wellington is one place lower at 139, from 93 a year earlier, and with an index figure of 52.3, down from 77.6 in 2008. Rob Knox of Mercer said the New Zealand cities were "extremely" cost competitive across the Asia Pacific region for global workers, in comparison with places such as Beijing, Hong Kong, Tokyo and Osaka, which all climbed the rankings this year. "This helps make New Zealand a very attractive hub for companies looking to grow their presence in the Asia Pacific region," he said. The cost of living of New Zealand cities benefited from a fall in the value of the NZ dollar, which at the end of March had depreciated by more than 33 percent against the US dollar from a year earlier. Also in this country's favour, Mercer's quality of living survey published in April ranked Auckland 4th in the world and Wellington 12th. Mr Knox said organisations needed to take the quality of living standards into consideration to establish the true "value of living" of a particular location. In Australia, Sydney remains the most expensive city for expatriates, but dropped from 15th to 66th place with a score of 75.5 points. Melbourne was down to 92nd with 69.9 points from 36th, Brisbane fell to 116th with 65.3 points from 57th, Perth fell to 117th with 65.2 points from 53rd, while Adelaide fell to 130th with 61.3 points from 73rd. Overall, Tokyo knocked Moscow off the top spot to become the world's most expensive city for expatriates. Tokyo with 143.7 points rose from second place in 2008, while second placed Osaka was up from 11th place with 119.2 points. Moscow fell to third with 115.4 points. The most expensive European Union city is Copenhagen, Denmark unchanged from 7th place last year with 105 points, while New York is the most expensive city in the United States moving up to eighth place from 22nd. Bottom of the list is Johannesburg with 49.6 points. The survey measures the comparative cost of more than 200 items in each location, including housing, transport, food, clothing, household goods and entertainment. NZPA http://www.stuff.co.nz/business/personal-finance/2571966/NZ-cities-more-affordable Excerpt: A fall in the value of the New Zealand dollar has made Auckland and Wellington much cheaper places to live for expatriates working for multinational organisations. ### Enduring Powers of Attorney – Law Change The Enduring Powers of Attorney law change impacts positively on all parties involved: The donor making the enduring powers of attorney is better informed. The attorney granted the power to act on the donor’s behalf is more accountable. For more information, please view the article on Enduring Powers of Attorney. Excerpt: The Enduring Powers of Attorney law change impacts positively on all parties involved: ### Enduring Powers of Attorney – Law Change For more information on Enduring Powers of Attorney, call Ian Mellett of Quay Law Barrister and Solicitor in confidence. A Power of Attorney is a legal arrangement whereby you (the donor) appoint another person to act on your behalf. Enduring Powers of Attorney are distinctive as they continue to operate, or only comes into effect, should you become mentally incapable. There are two types of Enduring Power of Attorney, one for your money and property affairs and the other for your personal care and welfare. A Property Enduring Power of Attorney appoints an attorney to manage and make decisions about your property affairs. A Personal Care and Welfare Enduring Power of Attorney appoints an attorney to make decisions about your personal care and welfare on your behalf. A change in law has provided extra protection in Enduring Powers of Attorney when the Protection of Personal and Property Rights Amendment Act 2007 came into force on 26 September 2008. Key changes to the Act include: a clearer definition of mental incapacity in relation to personal care and welfare enduring powers of attorney strengthened witnessing requirements when setting up an enduring power of attorney new duties on solicitors to consult with donors and act in donors’ interests as well as a restricted ability for solicitor to benefit themselves or people other than the donor. A new section was added to the Act, focusing on Enduring Power of Attorneys witnessing requirements. Its states that the donor making the power of attorney must have the contents of the document explained to them by a solicitor or related professional. The implication of this change means that the person or people you appoint as your attorneys will also have to sign, but they cannot have the same witness as you. This requirement for independent legal advice gives protection for people setting up Enduring Power of Attorney, particularly for the frail or the elderly into signing. If you already have an Enduring Power of Attorney in place this law change does not affect you. However should you have any concerns then, it may be an appropriate time to review your Enduring Power of Attorney documents. This law change impacts positively on all parties involved: The donor making the enduring powers of attorney is better informed. The attorney granted the power to act on the donor’s behalf is more accountable. I hope that this article illustrates the impact of this law change. For more information on Enduring Powers of Attorney, call Ian Mellett of Quay Law Barrister and Solicitor in confidence. UNAUTHORISED USE. The contents of this article may be subject to copyright, legally privileged and confidential. Any unauthorised use, distribution or copying of the contents is expressly prohibited. Phone: 09 523-2408                                                                                 Email: ian.mellett@quaylaw.co.nz  Web: www.quaylaw.co.nz Web: www.lawyerinauckland.co.nz Web: www.ianmellett.wordpress.com Excerpt: A Power of Attorney is a legal arrangement whereby you (the donor) appoint another person to act on your behalf. ### Love and loathing in Aotearoa By Alice Neville They love our clean, green image but are baffled by our tax laws - a comprehensive survey of migrants has revealed for the first time what new Kiwis like and loathe about Aotearoa. The survey, carried out by the Department of Labour and Statistics New Zealand, is the biggest of its kind, tracking 7000 people over their first three years here. About one in four migrants had experienced at least one incident of discrimination. Those from Asia and in the "other" category were most likely to have experienced it in a public place or work setting. "I guess that points to the fact that we still, as a country, have a way to go as far as really embracing the fact that people come from different backgrounds," said Dr Mary Dawson, executive director of the Auckland Regional Migrant Services (ARMS). The survey breaks migrants down into those from the UK and Ireland, North Asia (China, Taiwan, Korea, Japan, etc), South Asia (India, Sri Lanka, Bangladesh, etc), South East Asia, North America, South Africa, rest of Europe, Pacific and "other". The first report, based on the six-month interviews, reveals 87 per cent felt settled in New Zealand, and 93 per cent were satisfied with life here. Almost all had established new friendships. More than half settled in Auckland, 13 per cent go to Canterbury, 11 per cent to Wellington and 6 per cent to the Waikato. More than two-thirds were employed and only 4 per cent were looking for work. Some 62 per cent reported no difficulty in finding a job but the most common problem was a lack of New Zealand work experience. Migrants' median income was $36,000, and 30 per cent reported feeling like they didn't have enough money to meet the cost of living in New Zealand. Initial findings for the 18-month interviews show increasing signs of long-term settlement, such as property-owning. Employment levels also rose, particularly among secondary migrants, who are usually spouses and family members of migrants who arrived under the skilled worker category. Dawson said the research provided valuable information for the charitable trust, which offers a range of services to new migrants. "It gives us good pointers, but here might be a need for more detail." But Dawson said reports of discrimination had fallen since ARMS was established in 2002. "It's possible that in Auckland there's now a greater appreciation that businesses can benefit from diverse, skilled migrants with experience from other countries. Research tells us that the economic benefits migrants bring to New Zealand is in the range of $3.3 billion." Auckland Chamber of Commerce chief executive Michael Barnett also reported an improvement in the attitude of members since the organisation started working with migrants seven years ago. "The welcome mat seemed to [stop at] the airport gate, then they were left on their own," he said. "It was hugely frustrating." With the help of the Government, the chamber established the New Kiwis job website. "Since then we've probably placed in excess of 5000 new Kiwis across New Zealand," said Barnett. "Our prosperity depends on making sure people who come here settle and are absorbed into the workforce." Landing a job proves tough Vikesh Doolaub migrated from Mauritius with his wife and three children in April and his experience has been largely positive. "The only problem is finding a job," said the 36-year-old, who arrived under the skilled migrant category. Doolaub has eight years of IT experience but is finding himself up against 50 to100 other applicants when he applies for jobs. "I think the employers are giving priority to the people who have New zealand experience. "The problem is if nobody's willing to give me a job, how can I get New Zealand experience?" Doolaub also worked as a policeman in Mauritius for 11 years and will consider applying for the New Zealand force if he can't find a job in the IT sector. If that fails, he and his family may return. "In Mauritius I had a very nice job, but I came here for new challenges and to broaden my IT skills." Despite employment difficulties, Doolaub says his family is settled on Auckland's North Shore. The keen soccer player has made friends through the Greenhithe over-30 team and has had help from Auckland Regional Migrant Services, where he is volunteering, and the Auckland Chamber of Commerce, which offers advice on job-hunting. Age is no barrier in 'paradise' He might be 68, but Joseph Netto has no intention of retiring. Netto, who migrated from India three months ago under the family parent category, has two children working in the aviation industry in New Zealand. After 33 years as an in-flight services manager for Air India, he planned to start his own business here and began a small-business course. But he ended up working at a Shell service station, which he loves. New Zealand is "a paradise" he says. Netto is renting a house in Hillsborough with his youngest daughter, and hopes to buy his own place once the family home in Mumbai is sold. His wife will join them once the sale goes through. Netto says his success in the job market is down to Auckland Regional Migrant Services and the Auckland Chamber of Commerce. His age wasn't a barrier to getting a job, and in his interview with Shell was asked only why he still wanted to work. "I said I've got the energy and the company will benefit from the experience I bring. My transparency and being able to relate to others are my key points," he says. "They thought they were pluses, and on the same day offered me the job." http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10582561&pnum=0 Excerpt: They love our clean, green image but are baffled by our tax laws – a comprehensive survey of migrants has revealed for the first time what new Kiwis like and loathe about Aotearoa. ### Recovery? Don't bet the house on it With so many different housing organisations around, it is sometimes difficult to know where to turn for accurate and up-to-date information. Photo / NZ Herald A spring recovery or a year in the doldrums? By Anne Gibson The housing market is all over the place if the reports from a throng of organisations lately are to be believed. Our housing sector has a confounding array of statistics issued by many different outfits, each with their own agenda. Every month about half a dozen organisations get lippy about housing, saying what they think the housing market is doing, why and what they expect it to do next. All that get lots of publicity but most of them say different things depending on how they reached their calculations, what they measured, what time frame they used, whose interests they were serving and what audience they were aiming at. Precisely who is right or wrong is up for debate. For renters, home owners and buyers, the picture is as clear as the view out a dirty window. Most of us know the housing market is not in great shape right now but is it about to make the spring rebound being predicted this week by realestate.co.nz? Do we have a looming shortage of housing as BNZ chief economist Tony Alexander also said this week? Is now the best time to buy as the agencies say or should people hold off? One thing many of the experts agree on: QV has the best data and is most trusted. And its latest data set shows the market picking up somewhat - or slowing down less. The Economist uses QV in its international list of more than 20 countries and we're in the middle between The Netherlands and Spain in terms of price falls. Not as bad as Singapore (-21 per cent in the last year) or as good as Switzerland (+5.3 per cent) but hovering somewhere in-between. Many economists rank QV the highest in terms of accuracy and that says prices are down 8 per cent on a year ago. UBS economist Robin Clements said the trade-off on the various statistic sets of data bases was always accuracy versus timeliness. "QV is the final word on house prices but comes out with a long lag. QV's monthly ValueMap is more timely but doesn't perfectly reflect the quarterly data. REINZ is also timely. "Its sales is a good lead indicator on consents but its median prices can be volatile compared with QV. Harcourts and Barfoots are even more timely on sales and prices but you have to recognise they are not the whole market," Clements said. Business Herald economics editor Brian Fallow compares the many house price reports to flickering strobe lights in a nightclub. "If you link them all together, you might get some idea of what's going on but it's not a calm or steady illumination of the scene," he said. Each organisation can reach opposite conclusions about the market even within the space of four weeks. At the beginning of June, REINZ said prices were dropping but sale volumes had picked up. At the start of May, it said the opposite. Both were undoubtedly true, but what can be concluded from that? http://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=10582431&pnum=0 Excerpt: The housing market is all over the place if the reports from a throng of organisations lately are to be believed. ### How to read the numbers! Real Estate. HOW TO READ THE NUMBERS 4:00AM Saturday Jul 04, 2009 By Anne Gibson This guide to the data-issuers in the housing, farming and construction sectors gives a spread of the range of facts and associated opinions being issued. QV Government or state-owned business which issues national house sales data on a monthly basis and breaks its data down regionally. It has an index which measures price fluctuations. This organisation is the most bearish about the market right now, noting an 8 per cent annual house price fall. Data is compiled for the previous three months and the sale price is expressed as a pure average or mean price. Real Estate Institute Licensed agencies supply figures to the Parnell-headquartered national organisation which both represents and disciplines its members. This information's strength lies in numbers - thousands of agents supplying sales about to settle - until deregulation later this year when agents no long have to be REINZ members. Then, the data set could be under considerable threat if agents abandon their lobby group. REINZ issues monthly statistics for rural and urban property sales and does this by calculating median figures. Unconditional sales from members are presented. The organisation tends to be eternally optimistic, like many real estate agents. Barfoot & Thompson Auckland's largest real estate agency which issues figures based on deals every month. It calculates sales based on average sale prices. Because it sells a third of the houses in the country's biggest city, experts are keen on these figures. Harcourts NZ's largest real estate agency with 180 offices issues monthly statistics in its MarketWatch and breaks these down into five regions with Auckland lumped into the northern region and no conclusive national figure. Records average written sales and claims moral high ground for deals achieved - rather than REINZ unconditional sales contracts. Realestate.co.nz Calls itself "the official website of the real estate industry", jointly owned by REINZ and a powerful band of agents: Barfoot & Thompson, Bayleys, Harcourts, Harveys, Ray White and L.J. Hooker. This website-based business claims to have 94 per cent of all licensed real estate offices subscribing and posting listings. Chief executive Alistair Helm also has a regular blog. Sheldons This North Shore arm of the valuation business issues individual house price figures on settled transactions sporadically. These are not widely reported on but the valuers claim the moral high ground because they are the only organisation which measure like-for-like sales. All other data sets are invalid, they say. They take about 20 houses in their area which sold a short time ago, perhaps in 2007 or last year, and then show the new price after they have re-sold recently. Statistics New Zealand No house sales but building consent data on a monthly basis shows the number of residential and non-residential consent applications, an indication of the health of the $12 billion construction sector. Also issues quarterly figures on building work put in place including additions and alterations, giving a bigger picture of actual building work done. First National One of the larger real estate chains has been sending out monthly data lately but mainly promotional rather than factual. The 75-agency chain this week noted strong interest from investors and first-home buyers but gave away no raw price data.   http://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=10582431&pnum=0 Excerpt: This guide to the data-issuers in the housing, farming and construction sectors gives a spread of the range of facts and associated opinions being issued. ### Immigration Advisers Licensing Act 2007 – Lawyers Immigration Advisers Licensing Act 2007 – Lawyers From 4 May 2009, if you lodge an application with Immigration New Zealand and you are using an unlicensed onshore adviser, INZ will refuse to accept your application. Who needs a licence? The Immigration Advisers Licensing Act 2007 requires that anyone providing immigration advice has to be licensed, unless exempt. Lawyers A person is exempt if they are a lawyer who holds a current practising certificate as a barrister or as a barrister and solicitor of the High Court of New Zealand. As a result, lawyers do not require a license to provide immigration advice. For more information regarding your immigration matters, please contact Ian Mellett at Auckland Law Firm, Quay Law. Whilst this blog update relates to general news regarding New Zealand Immigration, please connect with us on Facebook for regular updates and FREE legal tips.  Legal tips are provided by the Auckland Lawyers and Conveyancing specialists at Quay Law NZ. These legal tips cover a range of legal topics and cover all legal matters from estate planning, to wills and estate administration, tax and IRD matters, residential and commercial conveyancing and property law, family trusts.social media law, leasehold properties, commercial leasing and much more. Although situated in the Auckland suburb of Remuera we are able to support overseas clients and across offer our services New Zealand wide. Excerpt: From 4 May 2009, if you lodge an application with Immigration New Zealand and you are using an unlicensed onshore adviser, INZ will refuse to accept your application. ### Housing market could bloom in spring - website NZPA | Wednesday July 1 2009 - 09:48am A June snapshot of the residential property market showed stability returning, says the website Realestate.co.nz. According to the website's June report, released today, the number of new listings declined for the fourth consecutive month and was down 24 percent compared to June 2008. Reduced listings meant the available inventory of residential property -- measured in terms of the number of weeks of average sales it would take to "clear" the market -- fell to 31.5 weeks, a 37 percent drop from the 50.2 weeks level of June 2008. The combined drop in new listings and available inventory was a major turn-around from the stagnated market of six or nine months ago, said Realestate.co.nz chief executive Alistair Helm. Property sales were then at record low levels and the lack of buying interest meant available inventory had built up to over 52 weeks of average sales . With sales volumes on the rise but the stock of available properties reduced, it could mean that after the traditional quiet winter period the market could become very active in spring, Mr Helm said. "It looks like by September this year we are likely to have a growing number of spring home buyers chasing a falling number of properties on the market. "If the downward trend in inventory continues, at some point this could lead to price pressure creeping back into some pockets of the market. This has to be the eventual outcome. "The long-held fears that we might see a fall of up to 30 percent in house prices have proven to be unfounded. It is hard to predict, but I don't see any immediate signs of prices dropping any further." http://www.nbr.co.nz/article/housing-market-could-bloom-spring-website-104454 Excerpt: A June snapshot of the residential property market showed stability returning, says the website Realestate.co.nz. ### Refocused immigration policy could boost trade By AARON LIM - BusinessDay Refocusing immigration policy to target migrants from developing countries could boost trade opportunities, according to the NZ Institute of Economic Research (NZIER). In a research paper released this evening entitled Trade, Diaspora and Migration to New Zealand, the Institute found the current immigration policy focus on skills shortages overlooked the part that migrants play in linking New Zealand into international markets. The research shows that if New Zealand receives 10 percent more migrants from a particular country, exports to that country grow by 0.6 percent and imports from it by 1.9 percent. "The trade benefits are greatest when migrants come from developing countries where the English language is not dominant," NZIER chief executive Jean-Pierre de Raad said. "Their ability to speak languages other than English, navigate legal systems and draw on social and commercial networks in their origin countries are all valuable tools in stimulating trade." According to the paper, migrants from non-English cultures also have the greatest impact when it comes to stimulating tourism. De Raad attributed this to a variety of factors, including the migrants transmitting a positive image of New Zealand to their home countries and because of country-specific knowledge of food, language and protocols. "Immigration policies that see migration as a way of addressing skills shortages emphasise different things from policies which see migration as a way of facilitating international trade," de Raad said. "Given our relatively poor performance in terms of international linkages, perhaps a revision of the strategic objectives of immigration policy is warranted." NZIER said that because the Kiwi diaspora was concentrated in Australia, the United Kingdom, and the United States, the scope for further reducing transactions costs was low. "We don't believe the diaspora of New Zealanders overseas a very significant contribution to trade as migrants from non-English cultures," de Raad said. "One exception may be in wine exports which have grown strongly in recent years, particularly to the United Kingdom where there is a significant ex-pat population." In contrast, targeting immigrants from countries such as China and India, where transaction costs are high could have a positive effect on trade. The Institute said that the effect of migration was strongest for differentiated goods, and for trade with developing countries where transaction costs are highest.   The research also found that the impact of migration on tourism was several times stronger than the effect of migration on merchandise trade. The research paper was prepared by David Law, Murat Genc and John Bryant under funding from the Institute's 50th Anniversary Research Award. The authors of the paper examined data from more than 190 countries from 1981 to 2006. Sources included Statistics New Zealand, the United Nations Statistics Division's Comtrade Database, the Global Migrant Database, the World Trade Organisation, and the Research Center in International Economics.   http://www.stuff.co.nz/business/industries/economy/2553313/Refocused-immigra Excerpt: Refocusing immigration policy to target migrants from developing countries could boost trade opportunities, according to the NZ Institute of Economic Research (NZIER). ### Recession rumbles on By JAMES WEIR & AARON LIM - BusinessDay The economy has suffered its first annual decline in Gross Domestic Product in 17 years. Statistics New Zealand said today GDP for the year to March shrank 1 percent. That was the first annual decline in economic activity since mid-1992. This came as the recession continued for a fifth straight quarter during the March quarter, with the economy also shrinking 1 percent in the quarter, as manufacturing and household spending was hammered. Economists' forecasts ranged from a drop of 0.5 percent to 1 percent for the March quarter. ASB economist Jane Turner said today's data indicated that the underlying momentum in the economy was weaker than previously thought. "The risks to the growth and inflation outlook definitely remain skewed to the downside," Turner said. "Green shoots may be appearing in the housing market, [but] they are conspicuously absent in other sectors." Statistics New Zealand figures also show manufacturing activity down a massive 7.2 percent in the March quarter. Household spending fell 1.4 percent in the three months, the biggest slump in spending since the 1991 recession. The fall was seen mainly in sales of cars, furniture, and big appliances. Business investment in plant and machinery was also down heavily in the quarter, falling 6.1 percent. The biggest annual impact on GDP came from the construction sector, down almost 9 percent for the year, while manufacturing fell more than 5 percent in the year to March 2009, compared with the year to March 2008. TD Securities senior strategist Annette Beacher said she expected rising unemployment and a steep fall in farmers incomes to "smash" what green shoots there were in the economy and "inflame" the New Zealand dollar. Beacher said there was ample scope for the Reserve Bank to lower the Official Cash Rate to 2 percent from 2.5 percent in an attempt to shore up growth. The recession began at the start of last year, and is expected to continue for its six quarter into the June quarter just ending. But the downturn may run for the rest of the year, according to economists. Six quarters of recession would be the longest downturn since the early 1990s. Only the mid-1970s crunch was longer in the post-World War II period. An economic recovery is not expected till late this year or into next as the benefits of lower mortgage rates, April's tax cut and greater government spending take effect. But the recovery is expected to be fragile. Consumers are shying away from big purchases, cutting their debt and saving more. However, figures earlier this week showed net migration rising, as far fewer people left New Zealand. The net gain from migration was 11,200 over the last 12 months according to Statistics NZ figures out on Monday, the highest annual inflow since 2007. That was more than double the net annual gain just six months ago. That is expected to give the housing market and retail sales some support, despite rising unemployment. Meanwhile, the US economy tumbled at a 5.5 percent annualised pace in the first quarter, but appears to be doing better than it was. The revised reading on gross domestic product, showed the economy from January through March didn't fall as deeply as the 5.7 percent annualized decline reported a month ago. In the final quarter of last year, the US economy plunged at a 6.3 percent annualized pace, the most in a quarter-century. http://www.stuff.co.nz/business/industries/economy/2538575/Recession-rumbles-on Excerpt: The economy has suffered its first annual decline in Gross Domestic Product in 17 years. Statistics New Zealand said today GDP for the year to March shrank 1 percent. ### Economy inching towards growth By TONY ALEXANDER - BusinessDay OPINION: There is growing evidence that the New Zealand economy is near the bottom of the economic cycle and we can expect some growth to resume in the very near future. But such growth is likely to be quite muted and we would suggest business operators remain strongly focussed on managing cash flows and undertaking lumpy expenditure only when their cash flow and capital and debt raising abilities are in strong safe zones. One of the factors which will be constraining growth for the next couple of years is a still very weak world economy. Our trading partners usually grow 3 percent a year. But this year they are expected to shrink by over 2.5 percent and next year only recover 2 percent if things turn out well. That means it is unreasonable to expect a sizeable jump in our export commodity prices in the near future and this will in particular keep the dairy sector under pressure. There will also be some pressure on a few exporters from the Kiwi dollar's high rate against the greenback. To be near US64 cents at this stage of the economic cycle is extremely unusual and it is only small solace for exporters that we are still well below average against the Australian currency, Euro and Japanese Yen. There will also be some restraint on the speed with which growth improves because of rising unemployment. There are still plenty of businesses who need to cut staff numbers and this process is likely to continue into next year. Having said that, awareness of the structural shortage of labour in New Zealand is strong so this will tend to produce a firm lift in the number of employers looking to hire people when the labour market does in fact turn around. Restraint on growth over the next couple of years will also come from the tightening up of bank lending criteria. The problem for the world in recent years has been too much money lent to too many people. That is now changing and while so far a lot of the changes have been voluntary there will be tighter restrictions and capital requirements put in place by central banks. This is most relevant overseas but also has some lesser implications here where the lending surge was far more muted - apart from in the farming sector where debt growth has exceeded our expectations over the past few years. But while growth will be constrained over 2010 and 2011, it should be growth nonetheless with assistance from a range of things. These include the low levels of short term interest rates and the lagged effect of tax cuts in October last year and April this year. There will also be stock-building undertaken by companies, and individuals will at some stage catch-up on delayed expenditure on large items such as fridges and motor vehicles. In fact at some stage we are likely to see a lift in retail spending just as we have seen a turnaround in the housing market since March. But the extent will be capped by the absence of investors, of course, who have been quite active in recent months in real estate taking advantage of low funding costs, a good range of properties on the market, and increasingly willing sellers. These buyers have also been aware of the expectations we have been writing about here regarding net migration flows soaring. The strong surge in migration we have been expecting is now solidly underway with the annual flow now up from 3,500 in November last year to 11,200 in May. A net gain of at least 20,000 looks likely later this year and it will be interesting to see where the net flow goes once we see a decent lift in the number of people coming here. So far it is a 21 percent fall in the number of Kiwis leaving our shores, which is boosting the migration numbers. *Tony Alexander is the BNZ's chief economist. http://www.stuff.co.nz/business Excerpt: OPINION: There is growing evidence that the New Zealand economy is near the bottom of the economic cycle and we can expect some growth to resume in the very near future. ### Choose mortgage deal carefully OPINION: Is it really time to revolt against the big banks? By PHILIP MACALISTER Rod Oram argues here http://www.stuff.co.nz/business that it's time we revolt against the big banks because they are "enjoying excessively healthy lending margins". While I respect Rod, I am not sure I can agree with his argument, and his proposition that we should all back Kiwibank. Watching how lenders price their mortgages to customers is something we have been doing since 1992. One of the things which is clear is that home loan rates aren't set on pure economics. They are also priced strategically for short-term business reasons. For instance earlier this year when borrowers rushed to fix their loans for medium to long terms, the banks could not manage all the business. The best way to stop it was to increase the rates and make them unattractive. The trouble here is some people didn't see what was happening and I suspect ended up fixing at rates which in the long-term won't look like a great deal. On the other side we see banks cut their rates simply to win market share. BNZ did this with its "Unbeatable" campaign a number of years ago, simply to gain customers. While it is impossible other than for those inside the bank to know, it seems the strategy was not particularly successful. Our analysis of market share over the years shows there was little gains for the bank and many consider the business written was only marginally profitable, if at all. These days the BNZ isn't a leader in price wars. Its strategy is to have one "hero" rate, branded under the "Classic" label to attract business. Right now it doesn't even offer an "Classic" rate. Then we come to Kiwibank. It has until recently been the leader in cutting rates, and has attracted a huge amount of new customers. Now it has the issue of managing all those customers and funding the business. Clearly this is a big challenge. If you compare its rates to other lenders at the moment, it is not particularly sharp on price. This graph here http://www.mortgagerates.co.nz/article/976495280/the-best-two-year-rates.html shows that Kiwibank's two-year rate is higher than the median for the big banks, while two other local institutions, PSIS and TSB are far more attractive. Challenging the big banks and taking your business elsewhere is fine. However there are plenty of alternative lenders other than Kiwibank. In the mix are SBS Bank, PSIS and TSB, which all offer competitive rates. There are plenty of other sound institutions such as the building societies too. New Zealand had, until recently, a large (in number) non-bank lending sector. That provided some good options for borrowers. Unfortunately the sector has been killed by the withdrawal of wholesale funding lines (from organisations including GE and ANZ). One of its big problems is that the money this sector used came out of Australia and across the ditch they love floating rates rather than fixed rates like we do. The non-banks struggled to compete when Kiwis chased fixed-term rates. The irony is that now floating is in vogue the sector which was highly competitive to the banks has gone. While we can all rail against the big banks and their profit margins, we should also be thankful. If these banks were less sound than they are, then the New Zealand economy would be in a much worse shape during this recession that it is now. Rod is right, when you are looking to borrow money, consider options other than the big banks. There are plenty to choose from and places like here http://www.mortgagerates.co.nz/mortgage-rates.html where you can compare them. From time to time there will be good deals, so look out for them. *Philip Macalister is the publisher of mortgagerates.co.nz and the NZ Mortgage Magazine. http://www.stuff.co.nz/business Excerpt: Rod Oram argues here http://www.stuff.co.nz/business that it’s time we revolt against the big banks because they are “enjoying excessively healthy lending margins”. ### Employers show signs of putting axe away By Tamsyn Parker We have travelled the country to learn how people are coping with the recession. Watch the video interviews, or send us your own videos and tips, at nzherald.co.nz/go/surviving09 New Zealand's employment market appears to be stabilising, according to a report by recruitment agency Hudson. The agency's quarterly survey found employers are shifting away from reducing headcounts towards holding staff numbers steady. Employers intending to reduce their permanent staff levels fell from 23.7 per cent to 15.3 per cent while those wanting to hold present levels over the next three months grew from 64 per cent to 68.8 per cent. Employer sentiment also shifted into slightly positive territory after the number of companies wanting to increase staff grew from 12.4 per cent to 15.9 per cent. Hudson executive general manager Marc Burrage said there had been a lot of change among New Zealand businesses in recent months and some who had made tough decisions early were starting to recover. "While I don't want to under-estimate the impact of external factors, the market recovery seems to be stabilising." Burrage said many employers were reluctant to make further cuts because of the impact on staff morale, brand reputation and customer relationships.  Some were beginning to take on more temporary staff to manage the workload, which also allowed them to be flexible if the market did step back. But the recovery of employer sentiment is very sector-dependent. The report found sentiment in the construction and property sector continued to fall, dropping a further 1.7 percentage points to -17.5. Tourism had the biggest improvement, jumping up 21.5 percentage points but remains the most negative industry at -22.2 per cent. Barrage said many tourism employers were intending to reduce permanent staff as a result of fewer New Zealanders travelling overseas and a drop in discretionary incomes. Government employment expectations have stabilised while IT companies remain far more positive than any other sector. Regionally the Upper North Island remains the weakest in terms of hiring expectations. While sentiment improved in the Upper North Island it remains negative at -3.3 per cent. A net 5.6 per cent of employers in the lower half of the North Island intend to hire staff while 2.1 per cent of South Island employers want to. Large companies remain the most negative, with a net 2.2 per cent intending to reduce staff, compared with the net 3 per cent of medium businesses and net 9 per cent of small businesses which intend to hire staff. Meanwhile a survey by human resource consultants Mercer found Australasian businesses were still planning to make job cuts but they would be smaller. Of the 88 companies spoken to 57 per cent said they would make cuts but only 1.2 per cent planned to cut more than 10 per cent of the workforce.   http://www.nzherald.co.nz/surviving-the-recession/news/article.cfm?c_id=1502812&objectid=10580328 Excerpt: We have travelled the country to learn how people are coping with the recession. ### Talk to your lawyer! K:        Key - Get your lawyer involved early. I:         Information.  Be prepared to provide your lawyer with the necessary information / supporting documents in regards to your situation.  Make sure you have all the important documentation on hand.  These can be sent either electronically (fax or email) or via mail to your lawyer’s office.  Ensure all communication with your lawyer is concise and to the point. S:       Set an estimate of fees.  Do not be afraid to ask questions about billing or request an estimate of costs.  No doubt, you will have questions after that initial discussion.  Record these and if critical to the outcome of your situation, do not hesitate to contact your lawyer straight away.  If non-critical, make a note to discuss with your lawyer when you next discuss or review your situation with him or her. Excerpt: Key – Get your lawyer involved early. ### Migration at six-year high By ADRIAN CHANG - BusinessDay New Zealand's annual net migration shot up in May, and annual visitor numbers from Australia topped 1 million for the first time, providing more hopes "green shoots" are growing through the economy. According to Statistics New Zealand data released today, long-term or permanent migration to New Zealand in the year to May saw a net gain of 11,200 people, a 129 percent leap from the year to May 2008 where the net gain was just 4900. This came about through 3 percent fewer resident departures in May compared to the same period last year and a corresponding 5 percent increase in permanent or long-term arrivals. On a seasonally adjusted basis, long-term arrivals exceeded departures by 2700 in May, up from 2200 in April and 1700 in March. This made May's net inflow of migration the largest since July 2003. TD Seurities senior strategist Annette Beacher said though the increase in migration was "tiny" by international standards, to New Zealand migration flows can mean the difference between upswings and downswings in the economy. "For New Zealand, it doesn't matter if it is people arriving, or residents not leaving, the bottom line is increased population to spend, invest and shore up activity," said Beacher. She also noted migration could help boost house prices. "While housing is showing some signs of life the combination of improved affordability and rising population are providing fodder for a solid housing recovery this time next year." Goldman Sachs JBWere economic strategist Bernard Doyle said if May's migration growth was annualised and seasonally adjusted, it would translate to 32,000 more migrants entering the country than leaving it. "We are conscious that net migration was one of the key drivers behind the 2003-2007 economic upswing, and was particularly important for the construction sector. Accordingly the longer net migration persists around these levels, the more optimistic we become on prospects for the domestic economy," said Doyle. Kiwis continued to flock to Australia, though in fewer numbers than seen in December and January where those moving to the Lucky Country - which has yet to technically enter recession - were at record highs. Though there were 1500 fewer departures to Australia in May than in the previous month, net monthly migration was a loss of 1200 kiwis to Australia. However, this is significantly lower than the 2800 in May 2008 or 2200 in 2007. Annual migration across the ditch was 30,500 in the year to May, down only 700 from last year, and well off the record outflows seen in December and January where net migration topped 35,000. On the bright side, annual visitor arrivals from Australia exceeded 1 million for the first time in the May year, reaching 1.002 million. That was up 4 percent from the May 2008 year, and are double the figure of 10 years ago. Ad Feedback At 141,900, May total visitor arrivals were up 1 percent from May 2008's 140,500. This was the highest figure ever recorded for visitor numbers in May. Despite this, the estimated number of visitors in the country on any particular day in May was 103,500, down 5 percent on last year. This was due to the average intended length of stay for visitors dropping from 19 days in 2008 to 18 days in 2009. http://www.stuff.co.nz/business/industries/economy/2523338/Migration-at-six-year-high Excerpt: New Zealand’s annual net migration shot up in May, and annual visitor numbers from Australia topped 1 million for the first time, providing more hopes “green shoots” are growing through the economy. ### Huge traps for big winners Auckland shoppers queue for their share of the 2.9 million Big Wednesday tickets sold this week. Photo / Dean Purcell Saturday Jun 20, 2009 By James Ihaka While winning $30 million is almost certain to put a smile on anyone's face it is still not a guarantee of long-term happiness. As this week's Big Wednesday draw reaches a record $30 million in cash and $1.7 million in prizes, financial advisers say the winner is "fair game" without fiscal guidance. Spicers Wealth Management senior financial adviser Jeff Matthews said instant and vast wealth could "literally blow a person's mind". He has seen it happen among his clients who include a $2 million lotto-winning couple who struggled with their newfound fortune and nearly blew the lot. The husband went on a spending binge, buying flash cars which devalued quickly and were eventually worth a fraction of what he had paid. He also had a go at property development but failed. "This man would just spend and could not stop," said Mr Matthews. The marriage came under strain as his wife had more conservative spending habits. Within a few years the couple were both back at work but were saved from complete disaster by two mortgage-free properties. "People need to build a satisfactory support mechanism perhaps a trusted adviser, a good accountant or a good lawyer or someone you can rely on, without it you're fair game," said Mr Matthews. Roger Sutherland, director of Grant Thornton Wealth Management, said winners needed to keep their emotions in check and stay quiet. A couple of his former clients made the mistake of "telling the whole world" about their lotto win. "Soon friends and family and even total strangers were asking for handouts because they had made a song and dance about what happened." Within three years the couple were back to exactly the same assets and lifestyle they had before winning. "They got the flash cars and would decide to change and get another one and every time they did something like that they lost money," he said. "They really just had no idea of how to handle that quantum of money." Mr Matthews said conservatively depositing all the winnings into the bank would be a big and safe earner. At five per cent, $30 million would clear $1.5 million before tax of $570,000 for a total of $930,000 a year. "That's about $77,500 a month, or $17,885 a week to come and go on," said Mr Matthews. Liz Koh, director of Moneymax, said winners were often traumatised and suggested doing nothing but banking the money for at least six months while trying to work out what kind of life the person wanted to live. "It sends some people into a complete fluster and it can take them a while to work out what is really important to them." She recommended to "have a little bit in everything". "Cash and fixed interest are your conservative investments while property and shares are more aggressive." In terms of obscure middling investments she said people could get into forestry, classic cars or art. "But those are not what you would consider to be part of your core portfolio and you would definitely need some kind of expertise in those areas." Mr Sutherland doubted a $30 million winner would invest in high-risk schemes, nor would he advise them to. "People generally take risk because they want a greater return or they can see an opportunity," he said. Those willing to accept the risk could own commercial buildings. "It has some risk but gives you the opportunity to get some capital gains if you buy well." Mr Sutherland said small allocations to a competent hedge fund manager would also be a "pretty smart move". He suggested people find a focus in life after the win and something they're passionate, but knowledgeable about, as employment. THERE'S A PRICE TO PAY IN SHARING YOUR LOTTERY WINDFALL New Zealand Lotteries spokeswoman Karen Jones says most Lotto winners are "very generous" and usually share some of their fortune with family members or friends. But there is a price for this generosity: gifts of more than $27,000 over a 12-month period to friends and family are subject to a sliding tax scale. Ernst & Young tax partner Aaron Quintal said the duty applied to any gifts including houses, motorbikes, cars, shares and not just cash. "If you buy someone a car, that is subject to gift duty. It even goesas far as if you lend someone money and they don't pay you backthen that's a gift too," he said. "As far as Lotto winners are concerned, well they certainly couldn't give it away without having to worry about gift duty." For gifts over $72,000 in value the taxable rate is 25 per cent - paid by the donor. Mr Quintal said there were tests to determine whether gifts to family members were "excessive". "If you buy your kids a car it's not subject to gift duty but if you buy them a holiday house on the Gold Coast or the neighbours a car it probably is going to be excessive." Gifts or donations to charity were not subject to gift duty. Source  www.nzherald.co.nz Excerpt: Auckland shoppers queue for their share of the 2.9 million Big Wednesday tickets sold this week. ### Why do you need a Family Trust? Why do you need a Family Trust?  It is part of your wealth creation plan It can reduce your tax It protects assets from unexpected life events – bankruptcy, divorce, business dealings It can provide inheritance protection for your children  Assets must be in a trust for a period before they are fully protected from asset testing and creditors.  If you do not have a trust and are considering one, then start the process as soon as your personal circumstances allow for it.  Ian Mellett, the principal of Quay Law, is professional yet friendly and courteous.  He has considerable experience & expertise in a wide range of Trust and Asset Planning matters  including Family Trusts, Charitable Trusts, Estate Planning, Asset Protection Plans and Structuring, Trust Gifting, Trust Administration, Trustee Advice, Protection of Personal Assets from Business Initiatives, Rest Home Subsidies and Asset Testing. Excerpt: Assets must be in a trust for a period before they are fully protected from asset testing and creditors. ### Trade Me chases grey dollar with retirement villages section Sarah McDonald | Friday June 12 2009 - 01:55pm Trade Me has launched a dedicated section devoted to selling retirement village properties. More than 100 villages have already signed up to the service. As of today, the launch date, there are 150 properties being advertised. Trade Me Property, which launched four years ago, is New Zealand’s most popular real estate website, receiving over 70% of all domestic traffic to the real estate category. Trade Me head of property Brendon Skipper says with the aging of New Zealand’s population, more people are researching and selecting retirement units, so it’s a logical move to extend into this market. “We’re aiming to provide a total view of all New Zealand retirement units for sale in one place. “The new service allows retirees, family and friends to all participate in the search and shows the depth and breadth of the market.’’ It costs $199 to list a retirement village property, with no success fee charged if it is sold. Typically, elderly people buy their own unit or apartment in a retirement village. When they die, the village arranges for the unit to be sold and a fixed amount (agreed at the start) is paid back to the deceased person’s estate. If the village can sell the unit for more than they were expecting, they keep the capital gain. Trade Me, which is owned by Fairfax, has over 2.2 million members. 275,000+ of these members are aged 55+ and use the site on a regular basis.   http://www.nbr.co.nz/article/trade-me-chases-grey-dollar-with-retirement-villages-section-103668?headsup=1 Excerpt: Trade Me has launched a dedicated section devoted to selling retirement village properties. ### Settlement time dangers: buyer loses house but still owes vendor Jazial Crossley, Monday June 15 2009 - 07:48am The high risks involved in in longer residential property sale settlement times have been highlighted at a recent High Court case and experts are recommending buyers seek legal advice before finalizing the settlement period on a purchase. Buyer Yanxun Sun who purchased a Lewis Rd, Karaka property in August 2007 with a twelve month settlement period not only lost the land, but had to cough up over $360,000 to the vendor. Mr Sun entered an unconditional agreement to buy the property for $1.1 million at a time when banks were lending 80% finance and paid vendor Peter Grant Tucker a $55,500 deposit. But by the time settlement approached in August 2008 the property market had sunk, and Westpac said it required a valuation before lending to Mr Sun. Valuers Marsh & Irwin said the property was worth $1.05 million, and Westpac would then only commit to lending 50% of the property value. Other banks said the same, having changed lending policies when the property market crashed in the intervening period. Mr Tucker cancelled the agreement and resold the property through Harcourts for the market price of $750,000. Mr Tucker then took Mr Sun to court to reclaim the balance he lost on the original $1.1 million sale. In the High Court at Auckland, Judge Anthony Christiansen ruled that Mr Sun is liable to pay Mr Tucker the $304,500 he lost on the sale and incidental losses of $529. New Zealand Property Investors Federation president Martin Evans said he recommends investors allow four weeks for confirmation and settlement. “Longer settlements allow investors time to do maintenance work on properties before possession takes place,” Mr Evans said. “Circumstances do change, and a lawyer should give a buyer advice about a suitable settlement period.”  Bayleys residential manager Rachel Dovey confirmed one month was the average settlement time buyers sign on for. She adds that longer settlement times have become less common over the past year. “A lot of buyers are typically cashed up, renting and ready to move so they do not require the extended time,” Ms Dovey said. “However there is still a small group of purchasers who require much longer settlements, who have had the ability to purchase but have not yet sold their own home.” Excerpt: The high risks involved in in longer residential property sale settlement times have been highlighted at a recent High Court case and experts are recommending buyers seek legal advice before finalizing the settlement period on a purchase. ### NZ cities among most liveable in world Auckland and Wellington placed 12th and 23rd respectively in a British survey ranking the liveability of 140 of the world's major centres. The top city was Vancouver in Canada while the Austrian city of Vienna came second in the Economist Intelligence Unit's 2009 Liveability survey. Melbourne ranked third. The survey assessed 140 cities based on stability, health care, education, infrastructure and culture and environment, giving each one a rating out of 100. Perth was equal fifth with Calgary in Canada, with Sydney sharing ninth place with Zurich in Switzerland and Brisbane in 16th place. As well as Vancouver and Calgary, Canadian cities also featured strongly in the top 20, with Toronto (4th) and Montreal (17th). US centres were well down the list. Pittsburgh ranked highest, in 29th place. The highest-ranked Asian city was Osaka in Japan (13th). The next highest was Hong Kong (equal 39th with Madrid, Spain) followed by Singapore (54th) and Seoul, South Korea (58th). The worst city to live on earth is Harare, the strife-torn capital of Zimbabwe. "The performance of Asian cities reflects the diverse levels of development throughout the region," EIU spokesman Jon Copestake said. "Australian cities represent many of the best aspects of liveability, while instability in countries like Pakistan and Bangladesh means that cities in South Asia fare much worse." The Economist Intelligence Unit is a branch of The Economist Group, which publishes The Economist, a weekly news magazine, in London. - NZPA http://www.stuff.co.nz/life-style/2484059/NZ-cities-among-most-liveable-in-world Excerpt: Auckland and Wellington placed 12th and 23rd respectively in a British survey ranking the liveability of 140 of the world’s major centres. ### Your important personal marketing campaign - Your CV Quay Law : Immigration When helping potential immigrants, we are often asked about the format of a CV or resume. Please find below three  links to a few of the many sites that could assist you with the creation of that all-important document. The team at Quay Law hopes that this information is of assistance as you embark on that important personal marketing campaign http://web.archive.org/web/20090826062003/http://www2.careers.govt.nz:80/job_search_cv_format.html http://www.seek.co.nz/career-resources/?cid=sk:main:nz:tab:tools http://www2.careers.govt.nz/cv_4_me.html (CV Wizard) Excerpt: When helping potential immigrants, we are often asked about the format of a CV or resume. ### Households to get 2pc savings on mortgages By CATHERINE HARRIS - The Press Households could collectively save 2 per cent of their annual disposable income next year when they refix their mortgages at lower rates. The New Zealand Institute of Economic Research predicts that 35 per cent of all mortgages by value will be refinanced over the next year, cutting the total interest bill by around $2 billion. Not everyone would benefit, the institute cautions, as only a third of households have a mortgage. "There will be some people who will be receiving a significant windfall gain," said NZIER chief economist Shamubeel Eaqub. That "considerable boost" to people's pockets would be needed. The NZIER believes income will be reduced on average by about $10,500 per person in the next five years. Positives for the housing market were rising net migration and the low interest rates. With evidence that house sales were gaining traction, the institute said the preconditions were in place for a property market recovery but the biggest risk was job insecurity. "We're now starting to see some signs that things are bottoming out," said Mr Eaqub. "There's a lot of stimulus in the pipeline but we need to keep in mind that the labour market is weak and that there may still be unwillingness to borrow, and to lend." House-building was expected to remain in the doldrums for a while. The sector was set to contract by 35 per cent in the March 2010 year, compounding a near 27 per cent fall in the year to March this year. Annual residential consents have virtually halved from around 26,000 mid-last year but are projected to almost recover by 2013. They are expected to hit about 17,000 this year, due in part to increasing net migration and encouraging interest rates. Twenty-seven of the Philippine-based Global Property Guide's 32 surveyed countries recorded price falls in real terms. Twelve countries recorded declines of more than 10 per cent, with Latvia plunging the most at 50 per cent. Dubai was next at 35 per cent and Singapore and Ireland at 22.7 per cent and 20.4 per cent respectively. New Zealand's property prices slid 6.33 per cent, compared to a fall of 1.22 per cent for the year to March 2008. Australian house prices fell nearly 9 per cent. Only five countries experienced house price rises, with Switzerland topping the chart at 4.3 per cent and 3.5 per cent in Thailand. The guide said there was no clear sign of recovery in the market which started it all, the US. An inflation adjusted housing index there dropped 19 per cent. * The NZIER incorrectly reported its prediction that national GDP would shrink by $10,500 a year for five years, as reported yesterday. The institute's chief economist Shamubeel Eaqub said the correct figure should have read $10,500 over five years.   http://www.stuff.co.nz/business/personal-finance/2471191/Households-to-get-2pc-savings-on-mortgages Excerpt: Households could collectively save 2 per cent of their annual disposable income next year when they refix their mortgages at lower rates. ### Unable to pay a debt or mortgage If you are unable to pay a debt or mortgage.  Talk to your lender and / or bank.  Use professionals such as your lawyer to guide you through the process.   In most cases a solution can be found! Excerpt: If you are unable to pay a debt or mortgage. Talk to your lender and / or bank. ### Weak housing market starts to grow shoots By Graeme Hunt The housing market, which has been depressed for the past 18 months, appears to have bottomed out - at least in Auckland. Though prices remain soft, the number of reported sales has risen in the past month and far fewer properties have been passed in at auction. The apparent change of heart reflects not so much the state of the economy but a slow turnaround in consumer confidence brought about by record low interest rates and greater housing affordability, especially for first-home buyers. This is reflected in the latest ASB housing confidence survey, which shows that in the past nine months those surveyed have become increasingly attracted to the housing market. For the most recent quarter - the three months to April - 59 per cent of respondents felt it was a good time to buy a house, compared with 53 per cent in the previous quarter. ASB chief economist Nick Tuffey says the improved sentiment appears to be closely linked to the dramatic fall in interest rates in the past year.  According to Auckland's largest real estate agency, Barfoot & Thompson, the region's housing market continued to surge in April, following better-than-expected performances in February and March. The average house price was $502,726, up 2.2 per cent on March. The number of sales at 809 was 79 per cent up on those for the same month last year. "Traditionally April sales volume and prices can fall away markedly compared to March," Barfoot & Thompson managing director Peter Thompson says. "It is a seasonal factor, so to get an increase in price in April with only a modest fall in homes sold compared to the previous month is heartening. He is optimistic about the housing market but says people sometimes confuse the performance of investment housing with houses people buy to live in. "The biggest issue we are facing is the lack of stock," he says. The lift in consumer confidence is good news for the real estate industry which, in the past year, has shed many salespeople and closed many offices. Top Harcourts agent Gary Thomas, who is based in Ellerslie but sells houses all over Auckland, says there has been a marked increase in activity and inquiries this year. "This has been very evident in the past two months. Out of the inquiries there are people who are making decisions and buying. Eighty per cent of my deals have been on multiple offers. The market is almost turning on a coin." Thomas, who has been selling houses for 14 years, says the turnaround could be attributed to realistic vendors and lower interest rates. Recent buyers had been in the market for up to 18 months. Thomas warns vendors not to view the renewed activity as an opportunity to hike prices. "Some vendors are going to get excited and put prices up. This is a sure way for the market to contract." The improved fortunes for urban housing seem to have kick-started the dormant beach-property market. In Mangawhai Heads, north of Auckland, there has been a pick-up in sales of lower-end baches - those between $200,000 and $300,000. Harcourts agent Susan Woodhead says she is having to work harder for sales but people who have been looking for baches for up to two years are now buying. However, the renewed confidence in housing is yet to extend to commercial real estate. Retail market reports from Bayleys and CB Richard Ellis paint a picture of increased vacancies and falling rents as the recession continues to bite. CB Richard Ellis says commercial leasing had become less active in recent months with landlords having to offer incentives to attract tenants. http://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=10575840 Excerpt: The housing market, which has been depressed for the past 18 months, appears to have bottomed out – at least in Auckland. ### The recession: Gloom by numbers By GARRY SHEERAN - Sunday Star Times Budget figures and forecasts rate this recession the longest and deepest in New Zealand's recent history. Even so, economists are not calling it, as a one-in-60 year event, comparable to the Great Depression, as is happening in countries such as the United States and the UK. More like a bit of what we've experienced in the last few decades, although biting deeper. In its December forecasts, Treasury was predicting real economic growth of 0.3% and 0.8% in the year to March 2009 and March 2010 respectively. In the Budget, it says instead that gross domestic product will decline by -0.9% and -1.7% for those periods. On the downside, it could slip even further, to -1.0% and -2.8% respectively. That means the recession will most likely continue through seven consecutive quarterly periods of negative GDP. Treasury records show that a recession in the mid-1970s also lasted seven consecutive quarters, although data was not immediately available to show how deep that recession was. But the fall in GDP from a peak in the December quarter of 2007 to the December quarter of 2009 is likely to be 3.4%, according to figures extrapolated from the Budget. That is a greater fall than that recorded in the recessions of 1997-98 (-1.6%), 1990-91 (-3.1%) or 1982-83 (-3.2%). Each of those recessions lasted only two or three consecutive quarters of negative GDP. Deutsche Bank chief economist Darren Gibbs said the nature of the current recession was thrown into sharpest relief by comparison with the 1990-91 recession, which lasted only two months in terms of negative GDP growth. But the declines were big: -2.6% in March 1991 and -0.7% in the June quarter the same year. Then from September the economy ran away "like a bull out of a gate", with 10 consecutive quarters of GDP growth. Gibbs said recessions tended to be short and sharp, but 2008/09 had been different. New Zealand slid slowly into recession on the back of the 2008 drought, which took 0.5% off GDP. The Budget predicts the 2009 March quarter will be similar to the horror December quarter number, and the June and September quarters will be negative before a return to positive territory in the December 2009 quarter. But that doesn't mean ordinary New Zealanders will not still be feeling the very real pinch of recessionary times. The Budget is predicting unemployment to peak at 8% in September 2010, for example. At that time, if forecasts are correct, quarterly GDP will start to look healthy again. http://www.stuff.co.nz/business/2460101/The-recession-Gloom-by-numbers Excerpt: Budget figures and forecasts rate this recession the longest and deepest in New Zealand’s recent history. ### NZ hot property around the world By EMMA PAGE - Sunday Star Times Want to buy a house? You could face stiff competition from offshore buyers. Last month a third of all session searches on leading property website realestate.co.nz were from outside New Zealand - with increasing interest from Spain, China, Russia and the United Emirates. The property website lists houses for sale and rent in New Zealand and last month had 134,604 session visits from people looking at properties for sale and 25,902 from those interested in renting. Chief executive Alistair Helm said monitoring where the searches originated revealed intriguing trends. The proportion of international visitors to the site has grown from 25 percent to 30 percent in the two years since it launched, largely in response to the website's growth and increasing visibility in Google searches. The bulk of overseas visits to the site had consistently come from Australia, the UK and the US. But more recently there was a large jump in the numbers of curious visitors from Spain and China - representing a 200 percent increase in traffic. Visits from people in Russia and the United Arab Emirates had also increased. Helm said he expected some of the increased traffic came from expats who had been attracted to working in places such as Dubai but were now returning to New Zealand. The interest from China and Russia was likely to be a response to increasing wealth in those countries. Helm thought the 2007 America's Cup races in Valencia may have raised Spain's awareness of New Zealand. Latest figures show net migration in New Zealand has climbed to the highest level in five years, with permanent and long-term arrivals exceeding departures in April on a seasonally adjusted basis. Helm said international interest in the rental market was also high, perhaps suggesting that immigrants were looking to rent first before buying. New Zealand property is also well represented on overseas websites such as the UK's www.rightmove.co.uk, which last week had 386 Kiwi properties, including a listing for apartments in Manukau which sung the praises of the South Auckland city's blend of urban, rural and seaside communities, "just 20 minutes from downtown Auckland". http://www.stuff.co.nz/life-style/2460850/NZ-hot-property-around-the-world This article was shared with you by the team at Quay Law.  In addition please connect with us for our regular legal tips.  These tips are provided by the Auckland Lawyers and Conveyancing specialists at Quay Law NZ and cover a range of legal topics from general legal matters to estate planning, wills and estate administration, tax and IRD matters, residential and commercial conveyancing and property law, family trusts.social media law, leasehold properties, commercial leasing and much more. Although situated in the Auckland suburb of Remuera we are able to support overseas clients and across offer our services New Zealand wide. Twitter          Facebook Excerpt: Want to buy a house? You could face stiff competition from offshore buyers. ### Immigration Advisers From 4 May 2009 anyone who provides immigration advice in New Zealand must have a licence from the Immigration Advisers Authority, unless they are exempt from the requirement to hold a licence. From 4 May 2009, Immigration New Zealand will refuse to accept applications from unlicensed onshore advisers. If an onshore adviser acting on behalf of an immigration client is not on the Register of licensed advisers (or not exempt), their application will be returned failed lodgement, and we will advise the Registrar of the Immigration Advisers Authority. Advisers who are awaiting a licensing decision from the Registrar are considered unlicensed. From 4 May 2010, offshore advisers giving advice to people seeking visas or permits will also have to be licensed. For more information regarding your immigration matters, please contact Ian Mellett at Auckland Law Firm,  Quay Law. Excerpt: From 4 May 2009 anyone who provides immigration advice in New Zealand must have a licence from the Immigration Advisers Authority, unless they are exempt from the requirement to hold a licence. ### Free farm auction criticised By ADRIAN CHANG - BusinessDay The "buy a tractor, get 20 acres for free" sale on Trade Me might be a great marketing gimmick, but it is treading on risky ground according to a real estate executive. Gore-based couple Shelley and Allan Holland placed their International 574 tractor in a $1 reserve sale on Trade Me on Thursday 14 May and promised to also ceed the title to their 20-acre Catlins farm to the winning bidder. The tractor-with-land auction closes at 10:30am on this Sunday and has so far attracted over 227,000 page views, 1000 questions and over 350 bids. The property, with a government valuation of $260,000 is also currently listed with Harcourts for a sale price of $230,000.  The leading bid as of 10:30am 21 May was $233,032. Realestate.co.nz chief executive Alistair Helm said while he applauds the innovation in creating a means of generating so much interest, he had concerns which needed to be highlighted in case the practice took off. However, Trade Me's business manager Mike O'Donnell said Trade Me always ensured its customers were not misled and that Helm was simply frustrated Trade Me Property had 2.5 times more traffic than Realestate.co.nz. Helm said the risk to buyers from this form of auction would be that the actual land transaction of the sale would not be legally enforceable because contracts for the sale of land must be in writing.  That is why Trade Me does not auction land - it only lists land for sale. The risk to sellers is that buyers are also not legally required to go through with the transaction, as would be the case in a Sale and Purchase Agreement. "Sadly, it does occur from time to time on Trade Me that auctions are not completed after the auction has finished," said Helm. This made online auctions different from on-site auctions because on-site auctions were run by professionals who had legal contracts with the sellers and ensured all parties were aware of their obligations.  Auctions could also be halted if problems arose. "So whilst I am not intending to stand in the way of the progress of innovation in the marketing of real estate, I think it is important to bring some transparency to ensure that the hype surrounding what appears to be a 'sure fire winner' for all parties does not become a sad tale of future dreams crushed under the heavy burden of reality." Further, he said the success of the Trade Me auction lay with the novelty of the auction - not the auction itself.  That meant any future auctions, especially those marketed as $1 reserves, were at risk of being less effective. The fact that real estate had few buyers and sellers and that each property is unique made any form of property sale a complex and challenging process. "It is for these reasons, not forgetting the scale of the financial considerations, that real estate purchases need to be carefully assessed.  It is far too important to be left to the euphoria or hype of an online auction to sway the proceedings," Helm said. However, O'Donnell suggested Helm was suffering from "auction envy." But he acknowledged that vendors couldn't legally sell properties through the auction site but said Trade Me took steps to ensure an informed bidding process. "We do two things - we get something on the record in writing that the seller is committed to the whole sale at the highest price, then we put the legal statement on [the website auction listing] making it clear that technically a property cannot be sold through an online auction... that it is effectively just a pricing mechanism, not a sale mechanism," said O'Donnell. He said while the practice of "bundling" one auction in with other products was not uncommon on the site, this was the first time it had occurred with property. Trade Me is owned by Fairfax Media, the parent company of Stuff.co.nz.  http://www.stuff.co.nz/business/personal-finance/2430973/Free-farm-auction-criticised Excerpt: The “buy a tractor, get 20 acres for free” sale on Trade Me might be a great marketing gimmick, but it is treading on risky ground according to a real estate executive. ### Immigration Advisers Licensing Act 427 Remuera Road, Remuera, Auckland From 4 May 2009 anyone who provides immigration advice in New Zealand must have a licence from the Immigration Advisers Authority, unless they are exempt from the requirement to hold a licence. From 4 May 2009, Immigration New Zealand will refuse to accept applications from unlicensed onshore advisers.  If an onshore adviser acting on behalf of an immigration client is not on the Register of licensed advisers (or not exempt), their application will be returned failed lodgement, and we will advise the Registrar of the Immigration Advisers Authority. Advisers who are awaiting a licensing decision from the Registrar are considered unlicensed.  From 4 May 2010, offshore advisers giving advice to people seeking visas or permits will also have to be licensed. For more information regarding your  immigration matters, please contact Ian Mellett at Quay Law. Excerpt: From 4 May 2009 anyone who provides immigration advice in New Zealand must have a licence from the Immigration Advisers Authority, unless they are exempt from the requirement to hold a licence. ### Remember your pets when drafting your will. One would normally expect you to outlive your pet however; the team at Quay Law advised that you make provision for your pet in your will. Prior to this, we suggest that you talk to friends and family about taking on your pets before including them in your will. It is also advisable to select two potential caregivers in case their personal circumstances change. For more information on Estate Planning, Trusts and Asset Protection, Wills and Estate Administration please contact the Auckland Law Firm, Quay Law. Excerpt: One would normally expect you to outlive your pet however; the team at Quay Law advised that you make provision for your pet in your will. ### $60b wiped from house values 4:00AM Tuesday May 19, 2009 By Anne Gibson - NZ Herald The property downturn wiped $60 billion off the value of our national housing stock and $25 billion from Auckland last year, says an industry commentator. Kieran Trass, an Auckland property investor and analyst, yesterday released a report citing QV numbers showing the downturn resulted in Auckland house prices declining by an average of $50,000. QV said last week that national prices had dropped 9.2 per cent in the three months to April compared to the same period last year. Mr Trass said some parts of the country suffered more than others, and cited a 16 per cent drop in Mt Roskill house prices last year. The slump was New Zealand's worst since records began in 1961, he said. BNZ chief economist Tony Alexander checked the figures and said Mr Trass was correct. The Reserve Bank's monetary policy statement showed the national value of housing stock was $568 billion by the last quarter of 2008, well down on the $614 billion in the last quarter of December 2007. Mr Alexander said house prices dropped dramatically during the 1970s, but inflation was high then, too, so one factor offset the other. "Real house prices fell away in the 1970s but nominal house prices would not have decreased as much as they did last year. "During the 1960s, there was no nominal annual house price fall, nor during the 1970s and 1980s, but in 1991 there was a nominal fall of 3 per cent and in 1999 a fall of 4 per cent. "So in nominal terms, Mr Trass is right on the mark, no worries," Mr Alexander said. But he discouraged New Zealanders from becoming overly concerned because most people were not real estate investors and their financial wellbeing did not depend on short-term capital gains. "For most people, it's not a worry, but it would be if this continued at the annual rate because people would lose so much of their wealth they would decide it's better to take bankruptcy, walk away from the mortgage and the house," Mr Alexander said. The economic outlook indicated a recovery and he said house price drops of more than 9 per cent were highly unlikely to be recorded for this year. Real Estate Institute president Mike Elford also said Mr Trass's figures made some sense. He said that with a median price of $350,000, the country's 1.4 million houses could be worth more than $500 million. So a $60 billion drop based on last year's 9 per cent QV value fall was not unrealistic. Mr Elford encouraged people not to focus on any losses. He said the feedback he was getting from real estate agents nationally confirmed his belief that prices would rise again soon. "It appears to me that we are at the bottom of the market." http://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=10573123&ref=rss Excerpt: The property downturn wiped $60 billion off the value of our national housing stock and $25 billion from Auckland last year, says an industry commentator. ### Light at end of recession tunnel Business Day Last updated 15:13 17/05/2009 As redundancy announcements continue to roll in, caution remains as to how much light is at the end of the recession tunnel. Most pundits are being careful about predicting when there may be a return to job stability, but there are some positive signs, according to Business NZ. Chief executive Phil O'Reilly said it was encouraging to see the BNZ Capital-Business NZ April survey of the manufacturing sector showing the rate of contraction in the sector was at its lowest since September last year. Manufacturing was traditionally one of the first sectors to feel the heat of recession, but also one of the first to come out of it, Mr O'Reilly said. That was the result of companies cutting down on supplies when dark clouds were on the horizon, and then needing to restock to take up any increases in customer demand. It was still unclear whether the positive indications in the sector were sustainable, but it suggested the recession could be near a trough. "Most businesses I've been talking to are feeling confident about the future -- but they're certainly not taking any happy pills," he told NZPA. New Zealand had a "practice recession" about a year before the financial meltdown, due to high interest rates, fuel prices and housing prices etc, he said. "So, perversely, the fact we were in this recession before the rest of the world helped a number of companies to restructure and get rid of costs and get themselves sorted out before the rest of the world fell over." That meant meant restructuring went on in a relatively benign environment, and when the global recession bit, some businesses here didn't fall as hard. Another "perversity" was that New Zealand generally sold what people needed. "No one wants plasma televisions right now ... or BMW motorcars, but people still want food, and the New Zealand economy is still solidly based on food". The perversity was that for years there was talk about the need for New Zealand's economy to become more hi-tech. That had never really eventuated, but no one was losing sleep over it in today's climate. As far as unemployment went, at around 5 percent the numbers were "ugly", but not as bad as figures in other Western countries. Council of Trade Unions (CTU) secretary and former economist Peter Conway said taking a "not that bad" attitude to the unemployment level was disappointing. It equated to a huge number of New Zealanders out of work and struggling. In terms of jobs, he said there was always a long lag between recessions hitting and lay-offs, and he predicted there was a lot more to come in terms of redundancies. While the recession had left the National Government in a difficult situation when it gained power last November, Mr Conway said he felt its response to the hefty blows being dealt to workers across the country needed more urgency. He said he wanted to reserve judgment until after the May 28 budget, but the CTU wanted to see action in three main areas including job creation. "There could be more done there in terms of Taskforce Green, home insulation, more rapid spillovers from infrastructure, etc." Workers also needed assistance in job transition. "Our concern is that as unemployment goes up and vacancies go down the matching process becomes more difficult." More assistance was needed with study, relocation in some cases, and more flexibility was needed around the benefit system. "Otherwise, what they are saying really is that those people can just stay on the dole for as long as the recession takes." Mr Conway said the nine-day fortnight was one helpful initiative in terms of addressing job retention in the private sector, but at the same time the public sector was being thinned out. It's an issue that has riled the Public Service Association (PSA), which says the Government is going too far in its commitment to cap public sector jobs. National secretary Brenda Pilott told NZPA an estimated 1400 jobs were cut under the first six months of National's reign. "This makes a mockery of the Government's policy of capping the public service . The reality is the Government is cutting -- not capping -- the public service." Recently announced plans by the Ministry of Social Development to trim 200 jobs would add to hundreds more shed by not replacing staff who leave, she said. "This is despite demand for social services increasing as the recession pushes up unemployment and puts people and businesses under mounting financial pressure." Several other government departments were also significantly affected. "The private sector is losing jobs because customer demand is falling due to the recession. "In the public sector the recession is pushing up demand for social services and yet the Government has embarked on a campaign of cutting public sector jobs," Ms Pilott said. But State Services Minister Tony Ryall said New Zealand was facing increasingly tough economic times. "In the private sector jobs are being lost every week and the taxpayer-funded public sector recognises it has to carry its share of the burden. "We cannot carry on as if money is falling out of trees with increasing government surpluses, because the exact opposite is happening," Mr Ryall said. Mr O'Reilly said one silver lining in recessions was that more people chose to study, which could be beneficial to the economy five or 10 years down the track. "You would want to make sure that government funding decisions don't get in the way of that." He said while there would obviously be a cautious approach to the budget in terms of spending, it was vital that there were significant initiatives to spur on innovation and education . "I'm not yet seeing a coherent plan around, for example, how we build innovation and skills." It would be concerning if there was still no solid foundation in place in the next four or five months to confront that issue, Mr O'Reilly said. NZPA http://www.stuff.co.nz/business/2418211/Light-at-end-of-recession-tunnel Excerpt: As redundancy announcements continue to roll in, caution remains as to how much light is at the end of the recession tunnel. ### An invitation to a special visitors day for the Auckland SUBURBIA Chapter of BNI Level 1, 427 Remuera Road, Remuera. Ph: 09 5232408 18 May 2009 AN INVITATION TO A SPECIAL VISITORS DAY FOR THE SUBURBIA CHAPTER OF BNI. If, like me, referrals are the lifeblood of your business, I did not want you to miss the opportunity of attending a special Visitors Day at Auckland Suburbia chapter of BNI. Details are: Date: Wednesday, 27 May 2009 Time: 7:00am to 8:30am Venue: Quay Law, Level 1, 427 Remuera Road, Remuera Phone: 09 5232408 BNI is a business and professional referral organisation whose primary purpose is to exchange qualified business referrals and develop word-of-mouth marketing techniques. Rapid growth has seen BNI become the world's largest business referral organisation, with currently over 91,000 members in 4,500 chapters in 34 countries, including Canada, USA, United Kingdom, Sweden, South Africa, Malaysia, Australia, New Zealand and most recently India. Already Over 80 chapters have been established in New Zealand with further expansion planned for the rest of the year. As Auckland Suburbia chapter is currently looking for a person from your profession to whom business can be referred, I thought this would be an ideal opportunity for you to come along to see how this successful organisation operates. There is no cost or obligation for guests attending the Visitors Day. As seating may be limited, please RSVP by 21 May 2009 to secure your seat. Yours sincerely, Ian Mellett PS Please bring plenty of business cards to exchange with other local business professionals. Excerpt: An Invitation to a special visitors day for the Auckland SUBURBIA Chapter of BNI ### Home Loans "unusually elevated" Business Day The Reserve Bank considers margins being paid on floating rate mortgages are unusually high, and also thinks the bottom of the housing market has yet to be reached. In its six-monthly Financial Stability Report published today, the Reserve Bank said reduced loan growth was likely to depress bank profits, but the impact would be partly offset by increased interest margins. Banks were reflecting higher credit risks in the lending rates charged to borrowers. "After falling steadily for several years as the domestic loan market became increasingly competitive, the New Zealand banks' interest margins increased slightly in the fourth quarter of 2008," the report said. "...margins on some lending (such as floating rate mortgages) have been unusually elevated at times, and the Reserve Bank is continuing to monitor this issue." Answering reporters' questions after the report release, Reserve Bank deputy governor Grant Spencer said now was one of those times when floating rates were unusually high. "We do see a considerably higher margin on floating rate mortgages than on most fixed rate mortgages," Mr Spencer said. "So in our view there's probably, we feel there's scope for more competition in the floating rate mortgage segment of the mortgage market. "Those margins really have been as high as I can ever recall on those particular rates, on the floating rates." Mr Spencer also defended the Reserve Bank's reliance on the official cash rate (OCR) to achieve its policies. A fortnight ago the Reserve Bank lowered the OCR a further half a percentage point to 2.5 percent, having brought it down from 8.25 percent last July. Today, Mr Spencer said the OCR reduction at end of April had some impact on interest rates, but it was probably fair to say the Reserve Bank had been disappointed with the response so far. But the relationship between the OCR and retail rates was not precise, with other factors also affecting the actual mortgage rate. "We may well see further reductions in mortgage rates as some of those other conditions in the market's change," Mr Spencer said. At this point the Reserve Bank was not considering changing its policy approach or introducing any unconventional instruments that had been seen in some other countries. "We don't think that the OCR has just lost leverage," he said. "I don't think it's reasonable to say the OCR has lost its punch. There's still potential scope for monetary policy leverage." Today's report noted house prices were around 9 percent lower in the final quarter of 2008 compared to their peak a year earlier. That was the largest annual drop in property values since comprehensive records started in the 1960s. While indicators suggested the downward momentum had continued in the early part of 2009, the correction in the New Zealand market so far had been relatively modest compared with the experience internationally. Despite the recent declines, house prices still appeared to be somewhat overvalued relative to fundamentals, although there were some tentative signs the price declines may start to moderate in the next few months. Mr Spencer acknowledged "a bit of a pick up in the housing market" recently. But he added, "we still think there's adjustment still to come, and it's a bit too early to call the bottom of the housing correction".   http://www.stuff.co.nz/business/industries/economy/2407672/Home-loans-unusually-elevated Excerpt: The Reserve Bank considers margins being paid on floating rate mortgages are unusually high, and also thinks the bottom of the housing market has yet to be reached. ### Auckland law firm | Quay Law goes a Twittering. May 2009 Quay Law goes aTwittering.  Our Twitter id is "quaylaw". Follow us for up-to-date news. twitter.com/quaylaw  We use Twitter as an Auckland law firm to share our legal tip of the week. Legal tips are provided by the Auckland Lawyers and Conveyancing specialists at Quay Law NZ. These legal tips cover a range of legal topics and cover all legal matters from estate planning, to wills and estate administration, tax and IRD matters, residential and commercial conveyancing and property law, family trusts.social media law, leasehold properties, commercial leasing and much more. Although situated in the Auckland suburb of Remuera we are able to support overseas clients and across offer our services New Zealand wide. Excerpt: Quay Law goes aTwittering. Our Twitter id is “quaylaw“. ### Sentiment soars in latest BNZ confidence survey By Paul McBeth May 11 – Confidence has soared in the latest survey of 18,000 readers of the BNZ Weekly Overview, as global optimism rebounded, equity markets rallied and economic data in the U.S. and Australasia was better than expected. A net 27% of respondents to the BNZ Confidence Survey expect the economy to improve over the next 12 months, up from a net 0% last month. The improved sentiment matched the previous record high of the series last September, just before the collapse of Lehman Brothers Inc. The BNZ series typically has a close correlation with the more closely-watched National Bank Business Outlook survey. “Over the past two months world markets have backed away from the Great Depression scenario in the face of a multitude of better than expected data releases offshore,” chief economist Tony Alexander said. “Unless world economic data turn down again, there will be continuing upward pressure on fixed borrowing costs.” Among figures in the past week, New Zealand’s jobless rate rose to a lower-than-expected 5%, according to the Household Labour Force Survey, while Australian unemployment defied expectations, falling to 5.3% from 5.7%. The NZX 50 index has gained 9.2% since the start of April. The New Zealand dollar held at a five-month high 60.90 U.S. cents, up from 59.39 cents in New York on Friday. Global optimism has lifted investor appetite for high-yielding, or riskier, assets and helped stocks rally. The Standard & Poor’s 500 has gained 16% since the start of April. The U.S. shed a less-than-expected 539,000 jobs last month, according to data from its Labor Department, while the unemployment rose to a 26-year-high of 8.9%. (Businesswire) http://business.scoop.co.nz/2009/05/11/sentiment-soars-in-latest-bnz-confidence-survey/#more-7095 Excerpt: May 11 – Confidence has soared in the latest survey of 18,000 readers of the BNZ Weekly Overview, as global optimism rebounded, equity markets rallied and economic data in the U.S. and Australasia was better than expected. ### Conveyancing | Building Inspection Reports Although we are Auckland based, we are able to support clients throughout New Zealand. A professional pre-purchase inspection of a property before proceeding with a purchase is essential. This report should identify any items in the property that require attention.  It is unlikely that a home will come though a property inspection with a clean report as maintenance on an existing home is always required.  However, a property report allows you to make an informed decision prior to proceeding with the purchase of the property Quay Law recommends you use a certified inspector for your potential property purchase. Please find below some suggested sources for qualified building professionals. Accredited surveyors: Accredited building surveyors: http://www.buildingsurveyors.co.nz/members-prepurchase.php To discuss your property purchase or sale with a property lawyer and conveyancing specialist contact the Auckland law firm team. This is an Auckland law firm legal tip of the week. Legal tips are provided by the Auckland Lawyers and Conveyancing and house transfer specialists at Quay Law NZ. These legal tips cover a range of legal topics and cover all legal matters from estate planning, to wills and estate administration, tax and IRD matters, residential and commercial conveyancing and property law, family trusts.social media law, leasehold properties, commercial leasing and much more. Although situated in the Auckland suburb of Remuera we are able to support overseas clients and across offer our services New Zealand wide. Excerpt: A professional pre-purchase inspection of a property before proceeding with a purchase is essential. ### Property News : Is now the time to buy a Property  Extract from Crockers Market Research ISSUE 46, May 2009 of the That’s certainly the view of many commentators – and it seems buyers agree. Weak sales at the start of the year gave way to booming sales in March. REINZ reports that sales are particularly strong at the lower end of the market, and BNZ economist Tony Alexander suggests that ‘holding off’ is no longer the best strategy for prospective house buyers.  In his BNZ Weekly Overview of 26th March, he says:  With a fundamental shortage of houses in New Zealand, construction plummeting, yet net inward migration possibly at the start of a boom, holding off buying in the hope of either lower prices or a wider range of choice seems risky. The risk reward trade-off no longer argues in favour of the optimal strategy last year which was hold off. If I were a buyer I would be inclined to purchase now. After all, even the unemployed need somewhere to live, plus even migrants with places offshore they cannot sell also will need somewhere to live. Both factors bespeak of support continuing at the lower end of the rental market in particular.  He also talks about the correlation between migration and house prices:The two graphs to the right help explain why we are not pessimistic about house prices. (see link below for graphs)  The first shows a clear correlation – with squiggles along the way – between annual net migration flows and dwelling turnover. It supports our view that real estate turnover has bottomed out. This second graph shows the correlation – an even better one – between net annual migration flows and house price inflation. Based on his prediction that population growth is likely to be between 15,000-30,000 over the next year, it seems reasonable to expect the housing market to strengthen further still. Given that most migrants and returning New Zealanders settle in the greater Auckland region, this region should benefit the most. See  http://www.crockers.co.nz/services/research/latest.html for more detail.  This article was shared with you by the conveyancing team at Auckland property law firm | Quay Law.  To contact our lawyers.  Excerpt: You might notice that every story in this month’s issue has a note of optimism in it. That will undoubtedly be welcome news to many of our readers. ### Debt provision swells as Westpac profit falls By ROELAND van den BERGH - The Dominion Post Westpac New Zealand is blaming the unprecedented economic downturn for a 15 per cent cut to its tax-paid profit of $202 million for the half year to March. Bad and doubtful debt provisioning ballooned to $184m from $61m a year earlier as the deteriorating economy impacted on business and households. A total of 140 Westpac customers lost their homes in mortgagee sales during the half year, the same number as for the whole of the previous year. Chief executive George Frazis said the result reflected an "unprecedented set of external circumstances". He expected economic conditions to continue to be challenging for some time. Even if the recession ended next year, it would take six months before the effects washed their way through business activity, Mr Frazis said. "In the circumstances this is a sound result." But while the bottom line was down, core earnings were up 13 per cent to $471m. Net interest income gained 10 per cent to $622m, while other income, including fees, was up 5 per cent to $214m. Mr Frazis said the reduced bottom line demonstrated that Westpac was shouldering its share of the economic downturn burden. "The fact that underlying profit is up is very pleasing from an economic perspective." It showed that the bank was continuing to lend, which was the No1 concern for business, Mr Frazis said. That compared with the situation in the United States and Britain where widespread bank failures had seen lending dry up, hindering the economic recovery, he said. Business lending was up 9 per cent, mainly through the agriculture, infrastructure and small business sectors. "We have provided an additional $350 million over the last six months to help small businesses invest, grow and protect jobs," Mr Frazis said. Most of the impaired loans were in business lending. Small businesses also often used their homes as a security for a commercial loan. Businesses have complained that lower official interest rates were not being passed through to the same extent as mortgage lending. But Mr Frazis said the interest rates the bank had to pay to attract domestic deposits, which made up 60 per cent of the bank's funding, were significantly higher than the official cash rate. Funding rates from international wholesale markets, which made up the balance, were dramatically higher because of the global credit crisis which was showing little sign of easing. Margins on lending had improved slightly to 2.25 per cent, but were still below those earned three years ago. Deposits grew 6 per cent to $28 billion and total loans stood at $47.1b, up 4 per cent. Home lending had slowed to 3 per cent as households looked to reduce debt. Lending growth was expected to remain subdued as a result of reduced demand and more customers would come under pressure as the effects of the slowing economy became more widespread, including more job losses. "We are seeing more pressure across our business customers and expect consumer stress to grow as unemployment rises," Mr Frazis said. As a result provisioning for bad and doubtful debt would remain high into next year, he said. Higher costs were offset by revenue growth giving a 250-basis-points improvement in the expense to income ratio to 43.7 per cent. Westpac was well placed to weather the current economic conditions, Mr Frazis said. http://www.stuff.co.nz/business/industries/2390287/Debt-provision-swells-as-Westpac-profit-falls Excerpt: Westpac New Zealand is blaming the unprecedented economic downturn for a 15 per cent cut to its tax-paid profit of $202 million for the half year to March. ### Quay Law congratulates Alex Baker Alex Baker : Harcourts Remuera Quay Law congratulates Alex Baker.  Alex is Harcourts Remuera's number 1 sales consultant for the financial year. Well done Alex. From The team at Quay Law alexbaker.harcourts.co.nz Excerpt: Quay Law congratulates Alex Baker. Alex is Harcourts Remuera’s number 1 sales consultant for the financial year. ### Home business tax advantages Not only can it be convenient to operate a small business from home, but there are definite financial upsides; 1. Save money by not renting office premises 2. Eliminate the time and cost of getting from home to work 3. Claim a portion of 'personal' expenses against your business revenue, therefore reducing your business' income tax. Sound good? Let's look at how you can claim personal expenses against your business revenue. Assume your business uses a room in your home as a business office, and the room is not used for any personal use, you can treat some household expenses as business costs. So just what household expenses can be classified as deductible business costs? Examples include: • Mortgage interest – while your entire mortgage interest can't be considered a business cost, it's possible to classify a portion of it. How much will depend on the floor space your business occupies in your house – the business uses 10% of the floor space, then 10% of the interest is a deductible business cost. (Principal repayments are not deductible business costs).  • Telephone – claim 100% of a business dedicated line (including the cost of installation), OR claim 50% of your private telephone line if this is used for business. • Electricity/Rates/Insurance – these costs can be apportioned in direct relation to the percentage of floor space occupied by your business. • Internet Expenses – 100% deductible if only used for business purposes, otherwise the portion used by the business is a deductible business cost. • Depreciation of your home – depreciation at allowable IRD rates, is permitted on your home. Again, this must be in relation to the floor space your business uses. A cautionary note - if you cease using your home for business use, you will need to show the claimed depreciation as "depreciation recovered" in your income tax return, something you'll need to talk to your tax advisor about. • Depreciation on assets used in your home office e.g. office furniture, office computer equipment. There are other deductions your home business may be entitled to make. Such deductions differ depending on your type of business. The IRD issues guides to assist you in determining allowable deductions. It is critical you keep full and accurate records of the all business costs. If you're unsure whether to claim an expense, or how much is considered business use, consult a tax advisor. http://www.nzherald.co.nz/small-business-centre/news/article.cfm?c_id=1502221&objectid=10568179 Excerpt: Not only can it be convenient to operate a small business from home, but there are definite financial upsides; ### Know how to steer around disaster when times are tough 4:00AM Monday May 04, 2009 Olly Newland Hardly a week goes by in my office without yet another property owner confessing that they have painted themselves into a financial corner. Their stories are all too familiar, but for those caught, it is not just a story but an endless nightmare - for them and their family. The unprecedented boom over the past few years covered all the sins and rolled over all the mistakes. Now, with a recession grinding hopes and dreams into the dust, reality has hit home - and it's big, ugly and here to stay. Mistake one I have lost count of the number of people I've helped who have made commitments to buy but are still waiting to be be paid for what they sold. When times were buoyant it was a fairly safe bet to buy unconditionally with only a deal on paper and a deposit to rely on. Not these days. One of my clients sold a farm for $3 million. On the strength of the agreement he bought several other properties. But his buyer walked away from the deal. The deposit was taken by the agent who arranged the deal, and it turned out the buyer was a company with no assets. Now my client is facing the threat of financial ruin. Lesson: If you have a deal on your property and want to buy again, it is essential to wait until the money is in your bank - or only buy with an agreement conditional upon settlement of your property actually taking place. Mistake two With the advent of Trade Me and private sale companies it is becoming quite common for sellers and buyers to get together and save on agents' fees. This practice is fraught with dangers as hard times bring out the worst in many. In one case in which I'm involved, the buyer and developer got together and agreed on a sale and purchase of a nice new home. I warned my client (the buyer) of the dangers but he ignored my advice and paid a large deposit directly to the developer. When it came to settlement, my client had the rest of the purchase money arranged but the developer could not settle because his borrowings were so great that the funds from the sale would not pay off his debt to the bank. Lesson: If you want to buy privately do not pay the seller a single cent until your solicitor has confirmed that releasing any mortgages will not be a problem. Mistake three Buying off the plans is another area where many a buyer's spirit has been broken. The unholy mess in the shoddy apartment market is just such an example. Thousands of wide-eyed Kiwis believed the hype of the "get-rich-quick" merchants that buying off the plans was the way to make money. Many buyers handed over deposits that disappeared into a bottomless pit. Buying a spec property off the plans is something to be avoided. Buyers make easy targets for the spruikers. Lesson: If you still feel the urge and must buy off the plans, at least ensure the deposit is held in a solicitor's interest-bearing trust account and not released until every detail of the purchase has been ticked off and the property fully completed and certified as such. Mistake four I cannot emphasise enough that borrowing from the one bank for all your needs carries a high risk factor. Time and again I have seen people borrow their home mortgage, credit cards, hire purchase, business overdraft, and the investment property mortgage from one source without realising that all the loans are almost always linked. A default on your business overdraft or credit card can mean all the loans are called up at the same time. Most bank loans have an "all obligations" clause, which in effect means that any default will allow the bank to "cherrypick" their way through your assets and sell whatever is easiest for them. It can get even more difficult when you have several mortgages over several properties with the same bank. If you sell one property the bank could demand that you not only repay the mortgage on that property, but any money left over has to be used to reduce other borrowings. They are allowed to do this. Lesson: To avoid this problem and keep your hard-earned money, always use different banks for different assets so each becomes a standalone investment. Mistake five When you pour money into a property in renovating, the reality is that the market will not always return you a profit _ as many do-uppers have found, to their cost. Whether upgrading your home or an investment property, you must always bear in mind the current market value and where the total costs will end up. Falling in love with the property and spending too much, thus overcapitalising, is a common mistake. If you end up with the dearest house in the neighbourhood it almost always guarantees it will be extremely hard to sell and recoup all your costs. If it's your own home you can be a little more relaxed, but an investment property is a business. It's there to make money. Nothing more or less. Lesson: Don't overcapitalise. If you are stuck with a property that has achieved all it can now and in the foreseeable future, then it's time to quit it and look for greener pastures. * Olly Newland is a property investor, consultant and best-selling author of six books. Visit www.ollynewland.co.nz for more information. You can email your burning property questions to omn@ollynewland.co.nz or andrea.milner@heraldonsunday.co.nz http://www.nzherald.co.nz/personal-finance/news/article.cfm?c_id=12&objectid=10570315&pnum=0 Excerpt: The recession has made cutting corners dangerous for property buyers. Here are some common mistakes to avoid. ### Purchasing a Mortgagee Property Quay Law : Conveyancing Specialists Mortgagee listings have increased significantly over the past year.  As a potential purchaser of a mortgagee property, you should do your homework on the property before the auction or submitting an offer. Your conveyancing lawyer or solicitor should always review the legal documents and you should clarify your level of risk, should you proceed with the purchase with the property purchase. Property or House Transfer:  A property transfer occurs when money or the ownership title on a piece of property, such as a house or parcel of land, changes hands. Contact Quay Law Excerpt: Mortgagee listings have increased significantly over the past year. As a potential purchaser of a mortgagee property, you should do your homework on the property before the auction or submitting an offer. ### Recent Sales / Properties for Sale Search Facility Helpful  function on Nick Boyes' website http://www.nest4u.co.nz/  You are able to search on streets,  suburbs, properties for sale and / or recent sales.  Great  facility  Nick. From the Team at Quay Law. Properties/Recent Sales Facility Excerpt: Helpful function on Nick Boyes’ website http://www.nest4u.co.nz/ ### Rates cut to 2.5pc Richard Baron / Fairfax Media The Reserve Bank has dropped official interest rates to a new low of 2.5 percent and is promising low rates at least till the end of next year. The decision, just announced by RBNZ Governor Alan Bollard, was as expected by a majority of economists. The move continues a massive series of cuts since July when the Official Cash Rate stood at 8.25 percent, taking the OCR to its lowest level since it was created in 1999. The news gave the Kiwi dollar a bit of a jolt. It dropped about three-quarters of a cent against the American currency and was just under US56.5c a short time ago. "We consider it appropriate to provide further policy stimulus to the economy," Bollard said. "We expect to keep the OCR at or below the current level through until the latter part of 2010. The OCR could still move modestly lower over the coming quarters." The latter comment goes against Bollard's own words just last month when he said he saw interest rates bottoming at 2.5 percent. The market has been looking for a definitive assertion from the RBNZ that rates would stay low for a long time - and got it today. The words from the governor have already prompted one bank - Westpac to move on its rates. Westpac New Zealand has confirmed a 0.4 percent cut to its 6-month fixed housing lending rate. This brings its 6-month home loan rate to 5.39 percent. The rate will be effective from Friday. Westpac General Manager of Product Management, David Cunningham said: "An important implication of the OCR announcement is the signal from the Reserve Bank that it intends for interest rates to remain low for an extended period. This will provide considerable cash flow benefit to New Zealand home owners with mortgages." Bollard has been cutting rates in response to the fact that New Zealand's economy has been in recession since the start of 2008. Economists suggest there may now be very early signs that a recovery is on the horizon. The latest National Bank business outlook survey released yesterday recorded the biggest improvement in sentiment among Kiwi companies since the December 2000 survey. "A turning point appears to have been reached for the economy," National Bank chief economist Cameron Bagrie said. The extent to which the latest reduction in official rates will be passed on to homeowners through lower mortgage rates is a key question, however. Bollard has not been slow to prod the banks into action and he was at it again today - gently. "We expect the large decline in the OCR over the past year to pass through to more borrowers over coming quarters as existing fixed-rate mortgages come up for re-pricing," Bollard said. Banks have been indicating increasing difficulty in passing on official rate reductions because the cost of money they are sourcing from overseas remains relatively high. BNZ chief economist Tony Alexander told BusinessDay prior to today's decision that even if the OCR eventually hits 2 percent - as he is predicting - it is unlikely either the retail banks' fixed or floating home loan rates will come down much further. Alexander says that is because the local banks borrow 40 percent of their funding from overseas and the turmoil in international credit markets is forcing them to pay more to secure that funding than in the past. "You should not expect to see the floating rates coming down much more...I would not expect a 100 percent feed-through [of OCR cuts]," Alexander said. The run-up to today's rates review made the decision arguably the most fascinating - and hard to predict - since the bank started reducing rates last year. While Bollard had chopped another 50 basis points off the official rates at the last review in March, he also talked the about the rates being on a "glidepath" to 2.5 percent. At the time most of the economists had been predicting a bottom of the cycle rate of 2 percent or even lower. Bollard's comments were taken by some in the market to mean that interest rates may actually be going UP again quite soon. As a result of this, the wholesale interest rates charged between the banks started rising and the Kiwi dollar began to surge. Thousands of New Zealanders clamoured to fix long-term mortgage rates, fearing that they had missed the "cheap" rates. This itself, put more upward pressure on the rates. Bollard was moved to the most unusual step of putting out a media release early this month saying that the rise in long-term wholesale interest rates was "out of line" with the RBNZ's expectations.   By DAVID HARGREAVES and ADRIAN CHANG - BusinessDay http://www.stuff.co.nz/business/2374640/Rates-cut-to-2-5pc Excerpt: The Reserve Bank has dropped official interest rates to a new low of 2.5 percent and is promising low rates at least till the end of next year. ### Apartment plight price is right A studio in this leaky building sold for $38,000. The dramatic slump in the price of investment apartments is now spreading to the owner-occupied market as well, providing an affordable alternative for first-home buyers. The fall in the value of investment apartments has been well documented, with many selling for tens of thousands of dollars less than they were purchased for a few years ago, when the market was booming. However, there are increasing signs that prices of apartments built for owner occupiers are also falling, significantly increasing their affordability. An auction held after Easter by Auckland apartment specialists City Sales was unusual, because it included a mix of investment and owner-occupier properties, which were put under the hammer. It was easy to spot the difference. The investment apartments were small, several falling into the shoebox category, and provided basic amenities. Those suitable for owner occupiers were more spacious, had higher standards of finish and often had excellent views. The biggest apartment had two bedrooms and just over 80sqm of floor space on level eight of the Regatta Court building on the Nelson St ridge. It was well appointed, but its most attractive feature was city and harbour views, taking in Victoria Park, Westhaven and the Harbour Bridge. It came with a car park and was being sold fully furnished. Quotable Value records show it was purchased for $420,000 in 2003, but at the auction it sold for $310,000. Next up was a two-bedroom apartment in a high stud, character building down the road from the University of Auckland, with frontages on to both Emily Place and Anzac Ave. It had a floor area of 78sqm, plus a deck. This had been purchased for $265,000 in 2005 and attracted intense competition from several bidders, before selling for $259,000. The smallest apartment suitable for owner-occupation had one bedroom and floor space of more than 50sqm, with excellent views over Grafton Valley to Rangitoto Island and the Hauraki Gulf. This was purchased for $235,000 in 2003, but was passed in with a top bid of $219,000. City Sales director Martin Dunn said a feature of the owner-occupier market over the last six months had been the entry of a new wave of buyers. Generally these were first-home buyers aged 25 to 30. Falling prices had made apartments a much more attractive option than buying a house, and they could often afford to buy in to a better quality building with good views, something that would be well beyond their means in the suburbs. "They just weigh up what sort of house they can get for their money and what sort of apartment and it's a no brainer," Dunn said. However, the biggest bargains are still the investment properties. The lowest price achieved at the City Sales auction was for a fully furnished, studio apartment in a leaky building, which sold for $38,000, compared with its rating valuation of $125,000. At just 21sqm it was definitely a shoebox and the new owner could be faced with significant costs for remedial work. On the plus side, it was on a freehold title near the Viaduct precinct and was rented out at $210 a week, the new owner receiving an initial yield of 26.5% on his investment. By GREG NINNESS - Sunday Star Times http://www.stuff.co.nz/business/personal-finance/2364225/Apartment-plight-price-is-right Excerpt: The dramatic slump in the price of investment apartments is now spreading to the owner-occupied market as well, providing an affordable alternative for first-home buyers. ### Super ranking for Auckland Super city or not, Auckland is one of the best cities in the world to live in, according to Mercer's 2009 Worldwide Quality of Living Survey. In the international consultancy and investment service provider's survey of 215 cities, Auckland was ranked fourth-equal with Vancouver, rising from fifth last year. Wellington was also highly rated, coming in at number 12, the same as last year. No other New Zealand cities were judged. Mercer determines rankings by comparing each city against New York City which is used as a benchmark. New York is given an index score of 100 and ranked at number 49. Cities are rated on 39 criteria, including political, social, economic and environmental factors, plus health, education, transport and other public services. The data was collected between September and November last year. Mercer spokesman Rob Knox said that despite the financial crisis New Zealand remained a very attractive market for expats, and supported a strong case for multi-national firms to continue sending staff in need of career development opportunities here. "Both New Zealand and Australia boast some of the most liveable cities in the world - which mean we remain very attractive for 'expat' workers and this is good news for our economy," said Knox. The big Australian cities also fared well but came in behind Auckland. Sydney was ranked 10, Melbourne 18, Perth 21, Adelaide 30 and Brisbane 34. The Austrian capital Vienna tipped Switzerland's Zurich out of top place while Geneva, also in Switzerland, took third place. A German trio of Dusseldorf, Munich and Frankfurt and Switzerland's Bern rounded out the top 10. Baghdad came last out of all 215 cities due to a lack of security and stability, with Bangui in the Central African Republic 214 and Chad's Ndjamena 213. London ranked 38, Singapore 26, Tokyo 35 and Paris 33. By ADRIAN CHANG - BusinessDay http://www.stuff.co.nz/business/personal-finance/2368488/Super-ranking-for-Auckland Excerpt: SUPER CITY: Auckland ranked fourth equal out of 215 cities across the world in Mercer's list of the best cities in the world to live in. ### Family Trusts - A valuable mechanism Family trusts are a valuable mechanism whereby your assets are able to be protected and preserved for current and future generations. This may have particular relevance in the economic downturn we are experiencing, so consider the advantages that a family trust can provide. This is an Auckland law firm legal tip of the week. Legal tips are provided by the Auckland Lawyers - Family Trust and Conveyancing specialists at Quay Law. These legal tips cover a range of legal topics and cover all legal matters from estate planning, to wills and estate administration, tax and IRD matters, residential and commercial conveyancing and property law, family trusts.social media law, leasehold properties, commercial leasing and much more. Although situated in the Auckland suburb of Remuera we are able to support overseas clients and across offer our services New Zealand wide. Contact Auckland law firm - Quay Law. Excerpt: Family Trusts - A valuable mechanism for protection ### Stop raiding the cookie jar, slash house prices by fifty percent! Thu, 23 Apr 2009 9:51a.m. Stop raiding the cookie jar, slash house prices by fifty percent! I have been lobbying Government, the Auckland and Manukau councils for the past three years to do just that. Reduce house prices for first home buyers by 50 percent and to date my requests have gone unanswered. They continue to raid the cookie jar to fund Band-Aid solutions rather than diagnose the cause, and put in place preventive measures. “Generally speaking”, as there would be a variance between different areas throughout the country, when building a home the land and building cost are very similar. Entry level homes, for this example lets use Manukau and say land cost $180,000 and building cost $180,000 making total cost to build $360,000. A house of that value based on current rental figures would rent for around $360 per week maybe more, a mortgage of that value $360,000 over 25 years @ 6.75 percent would cost $574 per week, again maybe more. Doesn’t look good for first home buyers does it? In my opinion the decision makers are looking in the wrong cupboard for the answers. The answer to the question, “how can we give the economy a much needed boost and help first home buyers in the process” is right under their noses. First, they need to close the cupboard door as they already have the tools, in fact, they have everything they need to get the job done sitting on the work bench in front of them and, there is already a blueprint in place, it is called “St Johns”. No not the ambulance service, the “Suburb”. “Leasehold land”, yes the Government and or the Councils could lease the land to first home buyers for a nominal amount, or even defer payment for the first five years, which in turn would make housing that much more affordable and increase productivity, not to mention the massive cost saving for the Government as they would not have to continue injecting millions into housing. Would it have a detrimental effect on near-by houses that where freehold? Not at all, does it in St Johns? No! Does it make houses more affordable in St Johns? Yes! Wouldn’t it be great if first home buyers could afford to invest in their own home for less than they pay in rent? Would that give them a sense of added worth? $180,000 over 25 years @ 6.75 percent = $287 weekly $180,000 @ 2 percent interest only = $70 weekly Total above = $357 weekly Actually there is a lot more at stake here. Something like this could be the turning point for many families and the impact it would have on the country as a whole would be colossal. Why then are the decision makers taking little or no notice? Maybe it is because I didn’t attach an invoice to my emails, ‘consultancy fee’ $250,000. Please feel free to post the cheque if that is what it takes to give the project the green light. And please, don’t dare tell me “we have no land”, I go flying with my stepson and we see more green than blue, so let’s make better use of our resources. Regardless of what you do or don’t do for a living, for just one minute stop and think, how would a building boom of this magnate affect you right now? Monitored, it could be the best thing this country has ever seen. Whilst the rest of the world is at a loss as to what to do, we could be building from the ground up, literally We have resources in abundance, land, timber, willing workers and, a line of people eager to take ownership of the end product, affordable housing. Brian Dalley is a qualified NZMBA Mortgage Broker, Property Investor and former Real Estate Agent. You can read more of his views and opinions on his website www.propertyprofit.co.nz Source 3 news.co.nz Excerpt: Brian Dalley has been involved in the real estate industry since 1992 and is currently a qualified, independent NZMBA Mortgage Broker and property investor with several eBooks to his name. ### Margin-lending market turns corner By ROB STOCK - Sunday Star Times There are signs that growth is returning to the margin-lending market after 18 months from hell. Investors using margin lending facilities borrow in order to buy shares hoping leverage will magnify gains if the shares rise in value. But since sharemarkets entered the beginning of their perfect storm of banking crisis in October 2007, what many investors have had are magnified losses, and the horror of margin calls. For while investors with investment properties do not expect a call from their lender demanding they top up their equity should their property fall in value, leveraged share investors know they will get a call should their shares fall far enough simply because unlike houses, the prices of shares can be tracked precisely. And they have received such calls in their droves. Alan Nixon of Forsyth Barr- owned Leverage Equities said: "The fact is we have had unprecedented margin calls over that period just because people were  purely taken unawares." For an investor who's leveraged a share portfolio by 60% (ie, they borrow 60% of the money needed to buy the shares), a rise or fall in the value of those shares is magnified by 2.5 times, so a fall of 30% translates into a capital loss of 75%. But unlike in Australia, where some margin-lending companies like Tricom and Opes Prime hit trouble as a result of lending too freely to investors, the New Zealand margin lenders have managed to keep a lid on their bad debt. "I doubt any of the New Zealand operators committed the sins that took place in Australia," said one industry source, who asked not to be named. Nixon said Leveraged Equities has never had a bad debt, meaning those who received margin calls paid up. Other lenders appear to have managed similarly well as there appears to be no credit crunch for the margin lenders. Unlike standard home loans, where loan to value ratios have dropped to 80% maximum, there has been little or no fall in the loan to value ratios being offered by margin lenders, said Nixon. ASB Securities will lend up to 70% to buy Telecom shares, while Leveraged Equities will lend up to 75%. For most shares, the LVRs required are in the 50-65% range. The only lending tightening has been as a result of lower trading volumes on markets. Some shares are off the lending lists as the lenders limit their exposure to easily disposed of positions. But despite the investor carnage, low share prices are tempting investors to borrow to buy shares again in hopes of a recovery. "We have had an upturn month to date in April and we are reasonably confident that this could be a start because the equity markets tend to lead the other markets down and then up again, however, you can't say anything with any great confidence at the moment," said Nixon. http://www.stuff.co.nz/business/market-data/2346976/Margin-lending-market-turns-corner Excerpt: There are signs that growth is returning to the margin-lending market after 18 months from hell. ### What can businesses gain from Twitter? TV3   Thu, 23 Apr 2009 10:48a.m If you don't know what Twitter is by now you're obviously still stuck in last year. These social networking tools have exploded into the popular culture, linking people in ways previously unheard of But a visiting social media expert says they're not just for keeping up with your mates or finding new ones. Stephen Collins says it's a communication model that business should adopt to survive the recession. He spoke to Sunrise. http://www.3news.co.nz/What-can-businesses-gain-from-Twitter-/tabid/421/articleID/100852/cat/100/Default.aspx Lawyer on Twitter in Auckland. Excerpt: If you don’t know what Twitter is by now you’re obviously still stuck in last year. ### Administration of an Estate – Checklist for the Executor Administration of an Estate – Checklist for the Executor Background When somebody dies, his or her will should be read to ensure that you understand the will maker’s intent. The people named in the will as executors then apply to the High Court for a probate order confirming the will and giving them authority to deal with the estate. If the estate is small then probate may not be required and the pros and cons of this scenario should be discussed with your solicitor. If however, you die without a will or your will is deemed to be ineffective, then you are said to have died intestate. In this event, legislation applies and application needs to be made to the High Court for letters of administration. Under these circumstances, legislation governs who is entitled to benefit from the estate. This could result in the deceased’s wishes not being fulfilled. Dying intestate can be costly. Executor or Trustee of a Will If a Last Will and Testament exists, it will refer to the Executor. This is a legal term referring to a person named or nominated by the will maker, to carry out the directions of the will. You will be required to be guided by tax laws, inheritance laws, property law, court procedures and naturally the demands of the beneficiaries. You are held accountable for carrying out your role properly. A solicitor is there to assist you with your duties and to protect you in this role. Estate administration often involves delays but the majority of estates are administered in an effective and timely fashion. What should you provide to your solicitor? Original Will, if not already in their possession  Bank account details including bank statements, cheque books, credit cards held in the sole name of the deceased Shared bank account details. Life insurance policies.   General insurance policies on the house, contents, vehicles, funeral or businesses. Birth certificate. Marriage certificate. Death certificate. IRD numbers and current statements. Work and Income beneficiary number and any correspondence from Work and Income. Addresses and IRD numbers for all children and beneficiaries of the estate.   Drivers licences.   Passport. Funeral account. Deceased’s interests in other estates and trust. Deceased’s business interests. Portfolio of investments / assets. Some additional items to consider. * This list is not an exhaustive list. Is there a safe deposit box?  Did the Will contain special funeral instructions?  List of outstanding household accounts e.g. water, lights, electricity, council rates. Are there any considerations that need to be taken into account e.g. changing locks on residences, arranging for the safe custody of personal valuables or important documents? If there is a property portfolio, is there adequate property management in place? Care of business if a one person business. Prepared list of assets not covered already. Prepared list of liabilities not covered already.   Cancellation of club memberships, subscriptions, health insurance etc. Identification of personal items that have been bequeathed to specific parties and receipts for their delivery to those parties. What should happen to pets if not allowed for within the will? Should you need any assistance in relation to Wills and Estate Administration, please contact Ian Mellett at Quay Law Barrister and Solicitor. He is located in the Auckland suburb of Remuera. Contact Details Phone: +64 9 5232408 Email: ian.mellett@quaylaw.co.nz Web: www.quaylaw.co.nz Web: www.lawyerinauckland.co.nz Web: www.ianmellett.wordpress.com Web: www.twitter.com/quaylaw UNAUTHORISED USE. The contents of this article may be subject to copyright, legally privileged and confidential. Any unauthorised use, distribution or copying of the contents is expressly prohibited. Excerpt: When somebody dies, his or her will should be read to ensure that you understand the will maker’s intent. ### Kiwis decide home's best By REBECCA TODD - The Press New Zealand could be heading for a population blip as thousands of Kiwis stay home instead of trying their luck overseas. Net migration numbers arriving in New Zealand compared with those leaving last month was the highest for 2 1/2 years at 1720. The main factor in the increase was the lower number of New Zealanders leaving. One thousand fewer Kiwis departed for overseas than in the same month last year, with 800 fewer leaving for Australia. At the same time, an increasing number of people are heading to New Zealand. In the year to last month, 4000 more non-New Zealand citizens and 1400 more New Zealand citizens arrived in the country than in the year before. The last time New Zealand had consistently high net migration figures was in 2003-2004, when a record number of migrants, including thousands of Chinese students, flowed into the country. Statistics New Zealand demographic analyst Nick Thomson said that if the trend continued, New Zealand could have a net inflow of 20,000 for 2009 compared with about 4000 last year. He said the biggest shift was due to the worsening economic situation in Australia, leading to a drop in the number of Kiwis moving across the Tasman, while the number of migrants entering New Zealand continued to rise. Rob Marshall-Lee and wife Yvonne moved back to Christchurch with their three boys a month ago after eight years in Australia. Marshall-Lee said being made redundant from his job as a senior software test analyst on the Gold Coast was a "blessing in disguise" as the family had always wanted to return to New Zealand. He had had a few job interviews already and was confident of finding a role that suited his experience. "I'm pleasantly surprised that Christchurch is more buoyant than I thought it would be," he said. "I'm very pleased that we came back. New Zealand is not as bad as people make it out to be. There's depth in the employment market for people like me." James Sugrue returned to Christchurch with his wife in September after 20 months in Britain contracting as a software developer. He said they had decided to come back at the end of 2008, but sped up their plans when he was offered a job. "I could see the writing on the wall in the UK. Things really started to slow down," he said. Stuart Maxwell, general manager of Track Me Back, a website that connects Kiwi expats with New Zealand employers, said there had been a significant increase in activity on the site recently. March attracted double the registrations compared with the same time last year, with many more high-calibre applicants in mid to senior-level positions. Excerpt: New Zealand could be heading for a population blip as thousands of Kiwis stay home instead of trying their luck overseas. ### Family Loans Corner of Remuera Road and St Vincent Avenue Family Loans Many family members will be helping other family members with increasing frequency during these tough economic times. Consider the gift duty implications of simply advancing funds with no documentation in place. Excerpt: Family loans during tough economic times. ### Signs of life in world economy Reuters The free-fall of the global economy may be abating but 2009 is still expected to be a difficult year. In a speech to the National Press Club in Washington International Monetary Fund Managing Director Dominique Strauss-Kahn said, however, the world economy would enter "deeply negative territory" this year before it starts to recover in the first half of 2010. "Of course, the solutions differ by country, but there must be a coherent and co-ordinated response by the international community," he said. The IMF is scheduled to release updated world economic forecasts on Wednesday. Last month it forecast the world economy will contract by between 0.5 to 1.0 percent this year. Speaking ahead of IMF and World Bank spring meetings in Washington next week, Strauss-Kahn said there were three urgent priorities before for a recovery can begin in earnest. These include the need for governments in advanced economies to fix their financial sectors by cleaning banks' balance sheets of toxic assets, and ensuring that fiscal stimulus measures are not withdrawn prematurely. "Until this is done, attempts to restore demand are likely to falter," he added. "We need forceful and urgent action, as well as co-ordination among the affected economies," Strauss-Kahn said. In addition, there is an urgent need to ensure that sufficient financing is available to help emerging and developing nations cope with the financial crisis, he said. He welcomed commitments from the G20 summit to triple IMF resources to a total of $750 billion, to help fund emerging and developing countries hard hit by falling demand and declines in private capital flows. Later, he said he was confident the G20 would keep its word to raise an additional $500 billion for the IMF above the $250 billion already in the IMF war chest. He said the IMF had so far raised $400 billion of the $500 billion promised at the G20 summit, with more countries expected to contribute to make up the total sum. Strauss-Kahn said by increasing the IMF's resources "the world community has placed its trust in the IMF and we intend to live up to that trust." SOURED DEBT PLANS Meanwhile, he said the US plan to deal with affected bank assets was a "major step forward" but its success depended on the willingness of banks to sell their toxic assets. The United States has been mired in a severe recession since the collapse of the US housing bubble in 2007. New IMF research published on Thursday said recessions tied to financial crises were unusually long and severe and the recovery sluggish. It called for aggressive and co-ordinated monetary and fiscal policies, and said restoring confidence in the financial sector was important for economic policies to work. Strauss-Kahn said the IMF was ready to play a greater role in helping countries emerge from the crisis and to spot crises before they happen. "For our part, the IMF is ready to play its role," he said, adding that the IMF had to also adapt by making its lending more flexible and better tailored to countries' needs. He cited a new flexible credit line for emerging economies that comes with no strings attached for well-run, strong performing countries that may be hit by spillovers from the financial crisis in advanced economies. So far Mexico and Poland, both with good economic track records, have applied for the line of credit to shield their economies in case they need to. Strauss-Kahn said he expects more countries to follow. He said it was also important that countries come to the IMF for financial help early on before the crisis takes a toll on an economy. But to be effective, he said the IMF also needs to increase the voting power of rising economic powers, under a plan endorsed by the IMF last year but waiting the approval of legislatures of member countries, including the United States. http://www.stuff.co.nz/business/world/2342239/Signs-of-life-in-world-economy Excerpt: CRYSTAL BALL: The free-fall of the global economy may be abating but 2009 is still expected to be a difficult year. ### Investors play safe in housing Investors play safe in housing By NICK CHURCHOUSE - The Dominion Post Wealthy investors still have their fortunes in housing, making them the most conservative investors in the Asia Pacific region, a survey shows. The seventh quarterly ING investor dashboard survey canvassed investors with portfolios worth more than US$100,000 (NZ$173,000) in 13 countries. ING investment strategist Stuart Millar said New Zealand investors always had the most conservative asset allocation, with 63 per cent of them holding residential property investments. Housing had provided huge profits in recent years but was now looking less profitable over the long term and Kiwi investors were pessimistic about the sharemarket, with half expecting declines in the second quarter of 2009. "In the fourth quarter [of 2008] investor sentiment dropped off a cliff," Mr Millar said. "The fact it has improved since then and equity markets have made new lows is probably a signal investors are becoming more resilient to the bad news." That could be seen as a potential shift in the outlook for growth assets. "If you had a conservative portfolio it might make sense to [talk to your financial adviser about] adding some growth assets." More than 80 per cent of investors said they had no concern that the United States economy and government bailout package would affect their investments, which Mr Millar said reflected the typical safe style of Kiwi investors. Regardless of that, he admitted one of the largest hurdles facing investors was how to gauge the increasing cost of borrowing. "If you are an investor you want to lock in your rates for a period but at the moment those rates are quite high, reflecting the lack of credit availability." Without certainty over capital access, most investors were inclined to sit tight, a situation supported by the survey finding that 55 per cent of investors had not decided what investments to make in the second quarter of 2009. Only 6 per cent were intending to invest more, while 39 per cent would reduce their active portfolio and hold more cash. The level of conservatism in New Zealand did insulate investors from the shocks seen around the world, but also dampened the possible benefits. Overall local investor sentiment was 26 per cent worse than the same time last year, similar to the drop in Australia. Nine of the 13 markets surveyed fell into the pessimistic range, but the overall Pan-Asian index recovered to a "neutral" range largely because of optimism in China and India. Mr Millar said the Chinese were upbeat because of fiscal injections of about 4 trillion yuan (NZ$1 trillion) from the government, and India's demand was largely domestic so it was not affected as much by the rest of the world's worries. "They are still growing so there will be plenty of investment opportunities there." One in five New Zealand investors surveyed had investments in China. Mr Millar said the proximity and growing involvement with China lent itself to stronger private investment links. Excerpt: Wealthy investors still have their fortunes in housing, making them the most conservative investors in the Asia Pacific region, a survey shows. ### Congratulations to Steve Koerber The yearly Barfoot & Thompson rankings are out.  Steve Koerber's  best ever finish at 14th (of 985 salespeople). Well done Steve ! From the team at Quay Law. Excerpt: The yearly Barfoot & Thompson rankings are out. Steve Koerber’s best ever finish at 14th (of 985 salespeople). ### Your Will Wills Review your will. Some wills include specific bequests to particular beneficiaries e.g. my house to “A” and my shares to “B”.  Perhaps the assumptions as to the value of these assets are no longer relevant. Excerpt: Review your will. Some wills include specific bequests to particular beneficiaries e.g. my house to “A” and my shares to “B”. ### The Recession : Our Market is Different to the USA The Recession Wednesday, 08 April 2009 Our Market is Different to the USA Anyone watching the international news will be aware that the United States property market is facing a steady decline in values, with falling turnover and an increasing number of foreclosures. While our market is very much in a negative phase, it is quite different to the US market. Our interest rates over the past three years were high, by world standards, whereas the US market during this period had much lower interest rates, with many low honeymoon style rates being offered as well. These lower rates allowed many more people to qualify for loans who would not have in this country. We do not have an over supply of houses as they do in the US - this is a major factor in driving property prices lower there. Mortgage rates in the US have been relatively low for a quite a while – whereas ours have not, and so our recent substantial falls are having a major positive impact on housing affordability. In many ways we are better placed in this country and I still firmly believe we are six to nine months ahead of the states, just look at current stats. We did not have the considerable sub prime market where those with quite poor credit histories could quite easily obtain 100% funding on their properties. Our sub prime market did exist, but it was small by comparisons. Source propertyprofit.co.nz Excerpt: The Recession : Our Market is Different to the USA ### Counting the cost of mortgage holidays Sunday Apr 12, 2009   www.nzherald.co.nz Rachel Grunwell and Nicola Shepheard A 12-month mortgage holiday - or a brand-spanking new kitchen and bathroom? As Prime Minister John Key persuades the nation's banks to offer struggling homeowners one-year breaks on paying off their mortgages, figures reveal the enormous cost in taking the "holiday from hell". According to bank calculations, a family paying 8 per cent interest on a $250,000 mortgage will pay an extra $28,000 in interest - the long-term cost of some short-term relief. That is because the interest keeps compounding, and is added to the end of the loan. To put that in context, $28,000 would pay for a new kitchen and bathroom in most houses - with a little left over for a real holiday at the beach. Indeed, Patrick Goodin of Good Kitchens Ltd said it would not only buy you a nice new kitchen - it would even pay for top-notch finishing, such as stone bench-tops. Amid accusations that banks are profiting from homeowners' vulnerability, Finance Minister Bill English said yesterday that banks needed to "play their part" by accepting lower profits."They need to recognise that because taxpayers are picking up some of the risk by underwriting the wholesale funding guarantee for banks, banks can't necessarily expect the same level of profit," the minister's spokesman said. English welcomed the 12-month holidays, but said they would not be appropriate for everybody: each borrower should work out, with their bank, what was appropriate for them. Financial author Martin Hawes warns today, in his Herald on Sunday column, that "A mortgage holiday is to be avoided... It really is the holiday from hell". Westpac announced its 12-month mortgage holiday scheme yesterday, but the bank was quick to warn there was a "real risk" involved for bank and customers. The ASB indicated it would join Westpac in considering mortgage holidays, but said this was generally not in the best interests of most customers. Financial adviser Liz Koh of Moneymax said mortgage holidays should be the "absolute last resort". "The banks do make money out of it," she said. "It's good news for the banks if they encourage you to clock up a bit more interest and keep the loan going. It's akin to that trick they've got of extending your limit on your credit card, which encourages you to spend more and that clocks up more interest." She encouraged people to try hard to save money elsewhere in their budget to meet regular loan repayments, before accepting a bank's offer of a mortgage holiday. Mortgage adviser Bart Utley of the Loan Market said borrowers needed to budget better and get income protection insurance, rather than taking a break from mortgage payments. "Clients don't initially realise that all of that interest is added on to their loan," he said. "Ultimately, at the end of the mortgage holiday period payments will increase if they want the term to remain the same. And if their situation hasn't changed, things are going to get a whole lot harder." John Bolton, from Squirrel mortgage advisers, welcomed Westpac's announcement as a last-resort option for people who otherwise faced losing their home in a mortgagee sale - but said anyone who was in such dire financial straits would probably have to sell their home regardless. "It takes a lot of pressure off, but, at the end of the day, people still need to confront the issues they're facing," he said. Most New Zealand banks said they would deal with customers on a case-by-case basis, but would usually only offer short-term mortgage holidays of up to three months. Even a three-month break from a $250,000 mortgage will add an extra $6870 to the loan. That equates to repaying another $46 every month for the life of the mortgage.ANZ and National spokeswoman Virginia Stracey-Clitherow said borrowers should contact their bank if they were in any difficulty. Loan repayment holidays were one of a number of options available for customers, usually for three months. Other options include restructuring loans - paying them off over a longer period, or having an interest-only period. Excerpt: A 12-month mortgage holiday - or a brand-spanking new kitchen and bathroom? ### Action on the home front Action on the home front  Sunday Apr 12, 2009 Andrea Milner http://www.nzherald.co.nz Home buyers - including expats with an eye for a bargain - have returned to the market in strength, hunting both high end and investment property. International traffic to Trade Me Property surged 21 per cent last month. Brendon Skipper, head of Trade Me Property, says expats are "looking for a job, looking for a car and looking for a property" on the site. Megan Jaffe, owner of the Ray White franchise in Auckland's swanky Remuera, says with expats buying, sales have picked up on top-end houses. Ray White's March sales figures rebounded strongly, soaring 44.1 per cent. Chief executive Carey Smith says the hottest spots are Northland, Auckland, and the upper South Island; especially Christchurch, where investor activity is humming in the under $300,000 segment. Babette Newman, Bayleys' Wellington residential manager, says there's a "huge increase" in attendees at open homes and multiple offers being made on properties in the capital too - particularly those over $800,000.Typical responses in BNZ's latest confidence survey, which compiles feedback from around the country, included: "Property investment is going crazy ... Have had more than 100 people through most properties in the first weekend of open homes ... Everything is booming under $400,000 with homes being snapped up in just a few days from listing and multi-offers across many properties." For the past four weeks, Barfoot & Thompson has averaged a 65-70 per cent auction clearance rate. Six months ago, this had reached an all-time low of 30-35 per cent. Director Peter Thompson says: "The auction room in the city on Wednesdays has witnessed activity never seen before in these premises - standing room only spilling out into the foyer," and only a small portion of these are mortgagee auctions. Ray White's Smith reports a 68 per cent auction clearance rate - again a doubling from last year. Residential real estate is once more "so alive," Jaffe says. "The investors are back; open homes are full, listings are short - and there's buyer competition." Alistair Helm, chief executive of realestate.co.nz, confirms new listings in March fell 19 per cent compared to a year earlier. The local housing market is benefiting from tough economic conditions abroad, says John Wills of Custom Residential. Broker Charlotte Lockhart of Mike Pero Mortgages, who's arranging finance for expat buyers weekly - mostly those living in the UK - doesn't think expats feel their money is safe there. Looking for a place to put it, they're settling for a bolthole back home while the exchange rate is favourable. Realestate.co.nz's Helm reports an 11 per cent increase in website visitors from the UK viewing rental properties. Wills says Custom Residential's website has seen a "massive increase" in offshore inquiry about properties in the hotspot of greater Ponsonby. Total traffic volume more than doubled during February and March. "Kiwi professionals are returning home and having to compete with existing local buyers for the best property," he says, with the "executive" home buyer demographic being "incredibly active" on the greater Ponsonby house-hunting circuit. Wills says of the surge in active buyers: "It feels a bit like going 'back to the future', with open home numbers and a buyer pool similar to what we saw in 2005 and 2006." Competition for good property is "one step away from being described as fierce," he says - but heading in that direction. In the meantime, he says most properties listed with his agency become the subject of multi-offer negotiations. For one recently listed property, the first open homes were held on Saturday and Sunday of the same weekend, and four offers were made on the Monday.   An agreement was reached about 9.30pm that evening. "This is quite typical of what we are experiencing out there at the moment," says Wills, reminiscent of the activity peak during the last boom. The question is whether what he calls the market's "serious momentum" will continue through winter. Smith says it can't be underestimated that "sales create sales". The favoured two-year mortgage interest rate remains 2 per cent below its long-term average and the one-year rate almost 3 per cent below average. The rate of new houses being built has hit a 65-year low, and market watchers agree if immigration remains solid and interest rates stay low the market will continue trading at more normal levels. Offshore Kiwis quids in Expat Kiwis Michelle Bradley, an accountant, and her builder fiance Greg Wdowikowski, both in their early 30s, were living and working in London when they decided to buy their first investment property in 2007. "We saved our deposit and bought a rental property in Hamilton, and it has great rental return of $300 a week." Despite the fact they "bought off the internet" without viewing the property, they got a LIM and other property reports beforehand. They enlisted help from Auckland-based broker Jodi Cottle of Sable Mortgages, who runs regular seminars in the UK for expat buyers looking for property in New Zealand. Seminar numbers are limited to 200 - and they're always full. Interest in the seminars is so strong, Cottle doesn't need to advertise them. With the pound's favourable exchange rate, Bradley says it was "so much easier for us to do this from Britain than if we were living at home". A year ago, Bradley won a green card in the US ballot and the couple relocated to New York. Searching New Zealand websites for new listings daily, they're about to buy a more expensive "four-bedroom, executive-style home" on Auckland's North Shore. "What makes it so enticing is the quality of home that we can buy there on the US dollar, and the lifestyle we may eventually come home to." Excerpt: Home buyers - including expats with an eye for a bargain - have returned to the market in strength, hunting both high end and investment property. ### Victoria Avenue School Gala Quay Law was proud to be able to support a local school gala.  Victoria Avenue School held their main fundraiser for the year. "On behalf of all the families and staff of Victoria Avenue School, I would like to thank you both for helping to make our Gala Day such a success.  We appreciate the use of the Quay Law marquees.  Yours sincerely.  Gala Commitee Representative. " Excerpt: Quay Law was proud to be able to support a local school gala. Victoria Avenue School held their main fundraiser for the year. ### Estate Planning in an Economic Downturn April 2009 Estate Planning in an Economic Downturn In economics, the term recession describes the reduction of a country's gross domestic product (GDP) for at least two quarters. The usual dictionary definition is "a period of reduced economic activity", a business cycle contraction. If you were an organisation you would be, amongst other initiatives, reviewing your business plan, seeking the input from professionals with specific expertise, expanding your relationships and focusing on the long term. Why then should you not use the same principles on your personal financial well-being? What should you be doing to survive the Economic Downturn? You cannot change a bad economy, but you can change your response to the situation. You have control over your attitude, and ultimately this can make a huge difference in how you weather a difficult situation. There is often a desire to place Estate Planning or the review of your existing Estate Planning entities on the back burner as you cut back on your expenditure. The reduction of expenditure is not entirely a bad thing as excessive debt and lack of planning can help to contribute to larger financial troubles. However, in times like these, good Estate Planning becomes more important than ever. Estate Planning is easier than most people think and in this economic climate, there are a few hidden opportunities – investments are severely depressed, property values are lower than they have been for some time – all of which can be used to your advantage in your planning. If however, you are in the fortunate position to have estate planning entities in place already, you should review these and question any assumptions you may have made. Wills Review your will. Some wills include specific bequests to particular heirs e.g. my house to “A” and my shares to “B”. Perhaps the assumptions as to the value of these assets are no longer relevant. Gift Planning Should gifting be accelerated? This may involve the imposition of gift duty, but could still be worthwhile. Trusts If you are a trustee have you completed a review of how the trust’s assets are performing, how should the news be communicated to the beneficiaries? Family Loans Many family members will be helping other family members with increasing frequency during these tough economic times. Consider the gift duty implications of simply advancing funds with no documentation in place. A well thought out Estate Planning exercise (whether this be for a new initiative or a review of existing legal entities) will allow you to maximise benefits to your portfolio in the short, medium and long term. It will also definitely assist you in minimising damage to your plans for the longer term. This peace of mind is well worth the investment. Economic Downturns are disconcerting but take charge of the planning that you can do. We often view Estate Planning in terms of investments, property, finances and assets. Yes, it is all of these things but the focus of proper Estate Planning should be the people who will benefit from your efforts and legacy. This may be yourself in the long term or your loved ones after your death. Failure to do this can have negative consequences for all concerned. I hope that this article illustrates a few of the many ways that Estate Planning can be of assistance. For more information on Estate Planning, call Ian Mellett of Quay Law Barrister and Solicitor in confidence. Contact Details Phone: 09 5232408 Email: ian.mellett@quaylaw.co.nz Web: www.quaylaw.co.nz Web: www.lawyerinauckland.co.nz Web: www.ianmellett.wordpress.com UNAUTHORISED USE. The contents of this article may be subject to copyright, legally privileged and confidential. Any unauthorised use, distribution or copying of the contents is expressly prohibited. Excerpt: Economic Downturns are disconcerting but take charge of the planning that you can do. A well thought out Estate Planning exercise is well worth the investment. ### Building your Property Investment Team Building your Team Property Investment is a team game and to be successful you need to have good players around you. Your key team members are: -        Financier / Mortgage Broker -        Lawyer -        Accountant -        Valuer -        Real Estate Agent and / or Property Finder -        Property Manager (if applicable)   Property Investment is a complex business and your Professionals need to be players who are experienced in this field.    This is particularly so when it comes to Accountants and Lawyers.  People who specialise in this area are able to give you valuable, specialised advice.   Make sure that you consult your team before you buy a property.  All your key team members should work with each other.  They will not mind if another team member suggests that a deal not proceed for the right reasons.   Find a property lawyer?   Your choice of property lawyer is an important decision.  To talk to a legal property expert regarding your property transaction please call the team at Quay Law today. Excerpt: Property Investment is a team game and to be successful you need to have good players around you. ### March spike in Auckland house sales By ADRIAN CHANG - BusinessDay The Auckland housing market has emerged from its hibernation as sellers are forced to accept lower prices, the city's leading real estate firm says. Barfoot and Thompson - which sells around one in three houses in the Auckland market - says it sold 924 homes in March, the most number of houses sold by the firm in 20 months. Sales are up 65.3 percent from the 559 homes sold in February, and 46.2 percent from the same period last year. However, March 2008 was something of an aberration, seeing the fewest sales for that month in more than a decade.  When this year's sales are compared to March 2007, sales are down 36 percent. Meanwhile, sellers have had to accept lower prices, with the average sales price in March down 4.1 percent from February to $491,780.  Compared to March 2008, prices were down 5.8 percent, where the average sale price was $522,336. Barfoot and Thompson managing director Peter Thompson said March's surge in sales was the combined result of a spike in sales traditionally seen in March, falls in the Official Cash Rate, bank mortgage rates falling to new lows and tax cuts. "Buyers may be sensing that market prices are close to the bottom of the cycle and have made the decision to act," said Thompson. He said the firm sold nearly 300 more homes in March than in any month in the whole of 2008. "At the same time sellers are accepting that a price that is on average only 6 percent below values being achieved 12 months ago is realistic in the current market, and are ready to accept." Goldman Sachs JBWere investment research director Shamubeel Eaqub said on a seasonally adjusted basis, the 46.2 percent year-on-year surge in sales in March is the highest since November 2007. He said while it was too early to call a bottom, and sales levels were still historically low, this month's data from Barfoot shows the first encouraging signs of traction from lower interest rates. "This is a positive sign that lower interest rates are beginning to work, enticing buyers back into the market.  Still, falling average prices suggests softer prices and lower interest rates are combining forces to bring buyers and sellers together," said Eaqub. However, he warned there remained considerable uncertainty around the durability of a property market uplift, as job losses had yet to hit the economy and local and global economic conditions remained challenging. Thompson noted the increased level of interest in auctions, with 65 to 70 percent of all sales in March attributed to auctions. March's surge in sales, along with a 1398 new listings, have trimmed the company's existing stock of unsold houses down to 6416 listings, the lowest number in 13 months. http://www.stuff.co.nz/business/personal-finance/2312514/March-spike-in-Auckland-house-sales/ Excerpt: RECOVERED? The Auckland housing market has emerged from its hibernation as sellers are forced to accept lower prices ### Lattes, movies & paying off debt By ADRIAN CHANG - BusinessDay A latte today is an education tomorrow so saving your tax cuts is the way to go. That's the advice of Tom Agee, a senior lecturer at Auckland University's business school. He says saving the extra $15 per week the average worker receives from today, could add up to an overseas holiday or a university education over time. Agee says if he and his wife save the $15 per week, between them they would save $1560 every year.  If put into a bank deposit earning 2.5 percent interest per year after tax and inflation, they would have $19,712 in 11 years - enough to pay for their seven-year-old grandson's university fees. Alternatively, in five years, those small weekly savings would become $8,300, which would pay for a nice overseas holiday. "The tax cut is new found income and for those couples who possibly can, saving is the key and compounding interest is the secret," says Agee. How exactly the tax cuts, which come in from today, should be spent is a subject of robust debate.  BusinessDay asked leading figures and workers how they thought the tax cuts would be best spent. Prime Minister John Key recently suggested he would like to see New Zealanders consider giving their tax cuts to charities, who are seeing donations dry up as the recession bites. Key has also been a strong advocate of the tax-cut-as-stimulus theory and hopes that the extra money in people's pockets will translate into extra spending to boost the economy out of the doldrums. However, chairman of the Shareholders' Association, Bruce Sheppard, disagrees with Key's advocacy of "spend-spend-spend." Sheppard says the extra income should go first into saving or paying off debt. He acknowledges this would do no favours for the local economy because New Zealand's debt is with foreigners and thus most of the $1.5 billion in tax cuts would be sent overseas.  Despite this, he advocates personal prudence.  "We are entering unprecedented, unpredictable times.  It's not quite every man for himself, but John extolling the virtues of spend and pray isn't going to ring too many bells," says Sheppard. ASB chief economist Nick Tuffley says tax cuts elicit a range of responses from households. "Some people will save the whole lot, some people will spend the whole lot.  You're going to get the actual outcome fall somewhere in between, which does mean household spending - all other things being equal - is likely to be slightly stronger than it would otherwise be," says Tufley. He says last year's tax cuts were likely to have contributed to the moderate boost in consumer spending seen in the last quarter of 2008. Erin Johnston, an English teacher from Newlands Intermediate near Wellington, is relatively lucky in that she has the luxury of choice.  Earning the national average of $48,000 per year, she falls nicely into the new definition of the 21 percent tax bracket and therefore can look forward to an extra $15.67 per week. Because she has no debts and feels secure in her job, she says the extra money will give her a bit more freedom to enjoy herself. "I will be spending the money on extras like going out for lunch or a movie with friends once a week," she says. On the other hand, she says, if there is any extra money left over, it will go straight into a savings account. "I'm saving because I'd like to go on holiday this year.  I was saving to buy a house, but the way things are, this would be impossible in the foreseeable future." Jade Haira does not have the luxury of choice.  She works full time at Burger King for the minimum wage, now $12.50 an hour.  She lives with her parents and pays half her wages as board to help support the family. Assuming she works on average 37 hours per week, her annual income would be just over $24,000.  That means Haira misses out on direct tax cuts but stands to benefit from the Independent Earner's Tax Credit (IETC).  This would leave her with an extra $8 per week after levies, and while she's grateful for any help, this would barely make a dent on her outgoings. "There are so many more people out there like me, and none of us are benefitting from this.  All the other poorer people are not benefitting from anything the government is offering, but if you're rich, you get more benefits from the tax cuts," says Haira. She says people at her work are trying to support their partners and children on minimum wages and inconsistent hours and these people are the most in need of a break. Further, because she and others on the minimum wage only just fall within the threshold to qualify for the IETC, if she were to get sick or go on holiday, her annual income would almost certainly drop below $24,000. "I feel tied to my job, and losing it would be devastating.  If something happened, like I got sick, well, you can't help that and it feels like I'd be financially punished for something I can't control." Meanwhile, Labour Party finance spokesman David Cunliffe says people are entitled to use their tax cuts as they want. "But with a slowing economy, growing job worries and higher food prices, I suspect most New Zealanders will use them just to help ends meet." http://www.stuff.co.nz/business/industries/economy/2306373/Lattes-movies-paying-off-debt Excerpt: COFFEE BREAK: Workers can look forward to lower taxes after the tax thresholds are changed today, providing more money in the pocket for most people. ### Conveyancing - Buying or Selling a Property A conveyancing tip from our property lawyers. It is a good idea to have your solicitor review any Sale and Purchase Agreement prior to the agreement being signed. This is to ensure all the necessary conditions are included within the agreement. www.lawyerinauckland.co.nz www.quaylaw.co.nz www.theconveyancing.co.nz Excerpt: A conveyancing tip from our property lawyers. ### Property Press is New Zealand's Premium Real Estate Magazine. Property Press.   The Central Property Press, New Zealand's #1 Weekly Property Magazine (Nielsen National Readership Survey for the year ending March 2008) can now be collected from Quay Law.  The red collection box is to the right of our entrance on St Vincent Avenue, Remuera.  We are opposite the Remuera Library. Excerpt: Property Press. The Central Property Press, New Zealand’s #1 Weekly Property Magazine (Nielsen National Readership Survey for the year ending March 2008) can now be collected from Quay Law. ### On the move On the move The last quarter of 2008 was an exciting time for the team at Quay Law.  Not only have we embarked on projects with both new and existing clients, but we have listened to you and taken on board your comments regarding our location.  Your need – easier and convenient access to us! We look forward to catching up with you. Kind Regards Ian Mellett and the Quay Law Team First Floor, 427 Remuera Road, Remuera, Auckland, New Zealand Excerpt: The last quarter of 2008 was an exciting time for the team at Quay Law. Not only have we embarked on projects with both new and existing clients, but we have listened to you and taken on board your comments regarding our location. ### NZ SuperGold Card provider Quay Law Barrister and Solicitors are proud to be able to offer SuperGold cardholders a 20% discount off all legal services.  In addition, all SuperGold cardholders are entitled to receive a free initial half hour consultation. Excerpt: Quay Law Barrister and Solicitors are proud to be able to offer SuperGold cardholders a 20% discount off all legal services. ### Contact Auckland law firm | Quay Law Welcome to the blog of Auckland law firm Quay Law, located in Remuera, Auckland, New Zealand. Please visit www.lawyerinauckland.co.nz   or  www.lawyersinauckland.co.nz   for further information regarding our legal services. We welcome your enquiries and look forward to working with you. Ph: + 64 9 5232408   Fax: +64 9 5232409 Email:  quaylaw@quaylaw.co.nz Contact Us Form Your Name (required) Your Email (required) Your Contact Day Time Phone Number (required) Subject How can our lawyers assist you? (required) Auckland law firm practice areas. Our Auckland | New Zealand law firm is able to provide services in the following areas: Sale and Purchase of Property (Residential and Commercial) | Conveyancing Sale and Purchase of Businesses Estate Planning, Trusts and Asset Protection Wills and Estate administration Immigration Taxation and IRD matters Franchising Relationship Property Commercial Transactions Social Media Law Bankruptcy Civil Litigation, Construction Law  Leaky Building Dispute Resolution and Mediation Matrimonial Property Insolvency Unit Title Law  General legal matters Please feel free to ask our lawyers about our legal fees. We endeavour to keep our fees reasonable and competitive. Quay Law prides itself on its “open door” and friendly approach to business. Someone is usually available at short notice to assist you with your particular transaction or problem.  Our lawyers try to provide an approachable, friendly, efficient and professional service and to keep our clients’ best interests in mind. Contact Quay Law. Ph: (09) 523-2408 Our lawyers welcome your enquiries and look forward to working with you. Excerpt: Welcome to the blog of Auckland law firm Quay Law, located in Remuera, Auckland, New Zealand. ## Pages ### Sample Page This is an example page. It's different from a blog post because it will stay in one place and will show up in your site navigation (in most themes). Most people start with an About page that introduces them to potential site visitors. It might say something like this: Hi there! I'm a bike messenger by day, aspiring actor by night, and this is my website. I live in Los Angeles, have a great dog named Jack, and I like piña coladas. (And gettin' caught in the rain.) ...or something like this: The XYZ Doohickey Company was founded in 1971, and has been providing quality doohickeys to the public ever since. Located in Gotham City, XYZ employs over 2,000 people and does all kinds of awesome things for the Gotham community. As a new WordPress user, you should go to your dashboard to delete this page and create new pages for your content. Have fun! ### Conveyancing for Developers [vc_row css_animation="" row_type="row" use_row_as_full_screen_section="no" type="full_width" angled_section="no" text_align="left" background_image_as_pattern="without_pattern"][vc_column][vc_single_image image="6662" img_size="full" qode_css_animation=""][vc_empty_space][vc_column_text] Quay Law has a team of solicitors and property conveyancers that is capable of delivering quality advice pertaining to the field of demanding and time-critical property development law. We specialise in all areas of conveyancing law for developers, vendors, and purchasers, including: Sales and acquisitions of land and buildings Financing Investment structures including property funds and syndicates Construction Commercial leasing Unit title developments Lease negotiation and dispute resolution Quay Law has assisted and is currently assisting some of New Zealand’s largest developers with their projects from start to finish. Our solicitor’s detailed knowledge of residential, commercial and mixed-use projects, together with our strong property and conveyancing team, allow us to help real estate developers with the ongoing maintenance of projects, for example monitoring presales and dealing with purchase enquiries. You will be hard pressed to find another legal provider in New Zealand with our level of service offerings. We can assist with many commercial conveyancing services: We endeavour to make conveyancing for developers simple. With decades of experience backing us, we adhere to the intricacies of property development legislation and protect you from errors. We review each contract for every sale after the Agent has prepared and arranged for execution. This provides added protection for the Vendor that presales are valid and binding, detects errors early and ensures a successful and smooth settlement process. Furthermore, regular reporting on the status of contracts, provision of reports to Banks and construction finance providers, early conveyancing for developers preparing for large-scale developments, and a speciality in contemporaneous and high volume conveyancing, are all services on hand able to be carried out by Quay Law’s team of conveyancers and property solicitors. Quay Law’s commercial property lawyers deliver incredible value for property developers: Review the Agreement for Sale & Purchase Due diligence on LIM Report & Building reports Zoning advice and the permitted use of the land Research on the title and any interests Review existing lease documentation Review existing tenant guarantees Finance advise and funding responsibilities and liabilities Letting you know your obligations as owner-occupier or a landlord Review compliance obligations Advice on your personal and business liabilities How to structure the purchase Your GST obligations on sale and purchase of a commercial property Our team will ensure that you remain in control during the entire process – however complicated or simple things may seem. Property developers and vendors of all sizes rely on us time and time again because of the trust at the core of our commercial focus, pricing that promotes the high level of service we are proud to deliver, and the excellent value we provide. Whether you are a property developer or have been approached to sell to a property developer, we can assist you. Contact Quay Law to speak to one of the expert conveyancing lawyers today. [/vc_column_text][vc_empty_space][vc_column_text][button size='large' style='' text='CONTACT US NOW' icon='' icon_color='' link='https://aucklandlawfirm.co.nz/contact-your-auckland-lawyers-and-law-firm' target='_self' color='#ffffff' hover_color='#ffffff' border_color='' hover_border_color='' background_color='#770000' hover_background_color='#770000' font_style='' font_weight='400' text_align='center' margin='20'][/vc_column_text][vc_empty_space][/vc_column][/vc_row] Excerpt: ### Terms and Conditions [vc_row css_animation="" row_type="row" use_row_as_full_screen_section="no" type="full_width" angled_section="no" text_align="left" background_image_as_pattern="without_pattern"][vc_column][vc_column_text] Terms and Conditions [/vc_column_text][vc_empty_space][vc_column_text]Auckland Law Firm for Family Trusts, Property Lawyers and Home Transfer, Wills, Commercial Law, Tax, Conveyancing, Commercial Contracts and Immigration.[/vc_column_text][vc_empty_space][vc_separator type="normal" color="#efefef" thickness="1"][vc_column_text] The information contained in this website is for general information purposes only. The information on this website. Whilst we endeavour to maintain the information as up-to-date and correct, we offer no representations or warranties of any nature, express or implied, about the completeness, reliability, accuracy, suitability or availability, with respect to the website or any information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk. In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website. To the maximum extent permitted by law, we disclaim all liability for any errors or omissions contained in this information or any failure to update or correct this information. It is your responsibility to assess and verify the accuracy, completeness, currency and reliability of the information on this website, and to seek professional advice where necessary. We make no representation that the services and / or products displayed on this website are currently available or that their specifications are current and complete. Display of any product does not constitute an offer or undertaking by us. We make this website and the contents of this website, available on an as-is basis. We make no representations or warranties of any kind with respect to this website or its contents. To the maximum extent permitted by law, we disclaim any such representations or warranties as to the security, completeness, accuracy, merchantability or fitness for purpose of this website, including without limitation the information on this website, products referred to on this site and any email correspondence between you and us. Intellectual Property Statement Unless otherwise indicated, all copyright and other intellectual property rights in the website design, text, images, graphics, data, information, logos, and other materials on this website, including the selection and arrangement thereof, and all software relating to this website, belongs to or is licensed to our company. This copyright is protected by New Zealand and international copyright laws. All trademarks, trade names and copy on this website belong to our company Limitation of Liability The use or reliance on the information on this website is at your own risk. Our directors, employees, shareholders, agents and other representatives will not, under any circumstances, be liable for any injury, damage, loss, expenses, claims, or liabilities whatsoever arising out of or related to the use, or inability to use, the information on this website or provided through this website by email. This limitation of liability includes, but is not limited to, compensatory, punitive, incidental, indirect, direct or consequential damages, loss of data, income or profit, loss of or damage to property and third-party claims. To the maximum extent permitted by law, the Company does not accept any responsibility to maintain the material and services made available on this website or to supply any corrections, updates, or releases in connection therewith. Any material on this website may be subject to change without notice. Links We permit linking to this website, with the provision that the full html page is loaded. All such links must not incorporate our trade marks or service marks, and must not be used to disparage or otherwise detrimentally affect the reputation of our Company. Information on this website may include links to the websites of others. These links are provided for your convenience only. The inclusion of any link to other websites does not imply endorsement by the Company of third party companies, individuals, products, information, or opinions. We do not warrant that information on any third-party websites is free from computer viruses or any defects, errors or infringements of intellectual property rights, nor do we authorise any such infringement by providing these links. We recommend you read the legal and privacy notices of any other websites that you visit. Every effort is made to keep the website up and running smoothly. However, we take no responsibility for, and cannot be liable for, the website being temporarily unavailable due to technical issues beyond our control. If you have any questions, please contact us. [/vc_column_text][vc_empty_space][/vc_column][/vc_row] Excerpt: ### Quay Law [vc_row row_type="row" use_row_as_full_screen_section="no" type="full_width" angled_section="no" text_align="left" background_image_as_pattern="without_pattern"][vc_column][rev_slider_vc alias="home"][vc_row_inner row_type="row" type="full_width" text_align="left" css_animation="" css=".vc_custom_1554293271755{margin-top: 40px !important;margin-bottom: 40px !important;border-top-width: 1px !important;border-bottom-width: 1px !important;padding-top: 20px !important;padding-bottom: 20px !important;border-top-color: #dadada !important;border-top-style: solid !important;border-bottom-color: #dadada !important;border-bottom-style: solid !important;}"][vc_column_inner width="2/3"][vc_column_text] Speak to an approachable Auckland Lawyer today. [/vc_column_text][vc_empty_space height="20"][/vc_column_inner][vc_column_inner width="1/3"][vc_btn title="CONTACT US" style="custom" custom_background="#720000" custom_text="#FFFFFF" align="center" css="" button_block="true" link="url:https%3A%2F%2Faucklandlawfirm.co.nz%2Fcontact-your-auckland-lawyers-and-law-firm%2F"][/vc_column_inner][/vc_row_inner][vc_row_inner row_type="row" type="full_width" text_align="left" css_animation=""][vc_column_inner width="1/4"][vc_empty_space height="20"][vc_column_text] Our law firm [/vc_column_text][vc_column_text css=""]Quay Law is a law firm based in New Zealand. Our Auckland lawyers deliver prompt and practical legal advice, at competitive rates and in plain language. At Auckland law firm Quay Law we place emphasis on strong long-lasting, client relationships.[/vc_column_text][/vc_column_inner][vc_column_inner width="1/4"][vc_empty_space height="20"][vc_column_text] Our legal updates [/vc_column_text][vc_column_text css=""]Our legal tips are provided by the Auckland lawyers and conveyancing specialists at Quay Law (New Zealand). These articles cover a range of legal topics and news worthy topics.[/vc_column_text][/vc_column_inner][vc_column_inner width="1/4"][vc_empty_space height="20"][vc_column_text] Find a lawyer [/vc_column_text][vc_column_text css=""]Your choice of lawyer to attend to your legal needs is an important decision. At Auckland law firm Quay Law our legal team are committed to finding a solution that tailors the legal process to your personal or commercial requirements.[/vc_column_text][/vc_column_inner][vc_column_inner width="1/4"][vc_empty_space height="20"][vc_column_text] Approachable lawyers [/vc_column_text][vc_column_text css=""]We sincerely hope that you will find this legal blog informative. Our Auckland lawyers will endeavour to update the blog contents regularly and included a weekly legal hint of the week, topical articles and other articles related to the law that may be of interest to you. Should you have any questions please do not hesitate our Auckland law firm team. Contact us.[/vc_column_text][/vc_column_inner][/vc_row_inner][vc_empty_space][vc_column_text css=".vc_custom_1554295396749{border-bottom-width: 1px !important;padding-bottom: 10px !important;border-bottom-color: #dadada !important;border-bottom-style: solid !important;}"] Quay Law [/vc_column_text][vc_row_inner row_type="row" type="full_width" text_align="left" css_animation="" css=".vc_custom_1554295379346{padding-top: 20px !important;}"][vc_column_inner width="1/2"][vc_column_text] Auckland law firm Quay Law NZ is a well-established and successful commercial, trust and property (conveyancing) law firm based in Remuera, Auckland, New Zealand. The experienced conveyancing staff and lawyers at Quay Law enjoy working with a diverse range of successful companies and private clients. Our approachable lawyers offer legal services such as conveyancing, leasing, family trusts, wills, asset protection, tax matters, disputes, employment law and more. For a detailed look at our services feel free to visit our website. Our Auckland lawyers are proud of our record of serving our clients and our legal team look forward to working with you no matter what your legal requirements may be. On behalf of our legal team and lawyers, we sincerely hope that you will find this law blog informative. Our lawyers will endeavour to update the contents regularly and included a weekly legal hint of the week, topical articles and other articles related to the law that may be of interest to you. Should you have any questions please do not hesitate to contact our Auckland law firm legal team. Phone (09) 5232408 or contact us via our Quay Law Website. Kind Regards Ian Mellett “Unlocking your Legal Solutions” [/vc_column_text][vc_empty_space height="22px"][/vc_column_inner][vc_column_inner width="1/2" css=".vc_custom_1554607211233{background-color: #720001 !important;}"][vc_column_text] GET IN TOUCH TODAY [/vc_column_text][vc_column_text] Your Name (required) Your Email (required) Your Contact Day Time Phone Number (required) Subject How can our lawyers assist you? (required) [/vc_column_text][/vc_column_inner][/vc_row_inner][vc_row_inner row_type="row" type="full_width" text_align="left" css_animation="" css=".vc_custom_1555245943973{padding-top: 40px !important;}"][vc_column_inner width="1/2" css=".vc_custom_1554610378158{background-color: #ccb062 !important;}"][vc_raw_html]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[/vc_raw_html][/vc_column_inner][vc_column_inner width="1/2" css=".vc_custom_1555245976839{margin-top: -20px !important;}"][vc_column_text][/vc_column_text][vc_single_image image="6685" img_size="full" qode_css_animation=""][/vc_column_inner][/vc_row_inner][vc_empty_space][vc_separator color="#dadada" type="normal" thickness="1"][vc_column_text]Auckland Lawyers providing practical legal services and conveyancing to a diverse range of client needs. Located in Remuera, New Zealand.[/vc_column_text][vc_empty_space][/vc_column][/vc_row] Excerpt: ### Our Blog Excerpt: ### News and Information [vc_row css_animation="" row_type="row" use_row_as_full_screen_section="no" type="full_width" angled_section="no" text_align="left" background_image_as_pattern="without_pattern"][vc_column][vc_empty_space][vc_column_text] News and Information [/vc_column_text][vc_empty_space][vc_column_text] Auckland law firm legal tip of the week. Our legal tips are provided by the Auckland lawyers and conveyancing specialists at Quay Law (New Zealand). These legal tips cover a range of legal topics and cover legal matters from estate planning, to wills and estate administration, tax and IRD matters, residential and commercial conveyancing and property law, family trusts. social media law, leasehold properties, commercial leasing, civil litigation, bankruptcy, construction, debt, finance, insurance, leaky buildings, commercial contracts & agreements, commercial property, dispute resolution, employment law, insolvency, matrimonial property, sales & purchases of businesses and sports law. and much more. Although situated in the Auckland suburb of Remuera our lawyers are able to support clients overseas and across New Zealand. To contact our Auckland law firm please call (09) 5232408. [/vc_column_text][vc_empty_space][/vc_column][/vc_row][vc_row css_animation="" row_type="row" use_row_as_full_screen_section="no" type="full_width" angled_section="no" text_align="left" background_image_as_pattern="without_pattern"][vc_column][/vc_column][/vc_row] Excerpt: ### Disclaimer [vc_row css_animation="" row_type="row" use_row_as_full_screen_section="no" type="full_width" angled_section="no" text_align="left" background_image_as_pattern="without_pattern"][vc_column][vc_column_text] Disclaimer [/vc_column_text][vc_empty_space][vc_column_text]Auckland law firm legal tip of the week. Our legal tips are provided by the Auckland lawyers and conveyancing specialists at Quay Law (New Zealand). These legal tips cover a range of legal topics and cover legal matters from estate planning, to wills and estate administration, tax and IRD matters, residential and commercial conveyancing and property law, family trusts. social media law, leasehold properties, commercial leasing, civil litigation, bankruptcy, construction, debt, finance, insurance, leaky buildings, commercial contracts & agreements, commercial property, dispute resolution, employment law, insolvency, matrimonial property, sales & purchases of businesses and sports law. and much more. Although situated in the Auckland suburb of Remuera our lawyers are able to support clients overseas and across New Zealand. To contact our Auckland law firm please call (09) 5232408.[/vc_column_text][vc_column_text] We make no representations and accept no liability for the accuracy of the information on this blog. Views expressed here may not necessarily be the views of Quay Law or those of the Quay Law Staff and Principal. The contents of this blog are for general information only and does not constitute legal advice and should not be substituted for professional legal advice obtained from your lawyer. If you would like legal advice please contact our Auckland law firm to discuss your legal matter. UNAUTHORISED USE. The contents of our article and legal tip may be subject to copyright, legally privileged and confidential. Any unauthorised use, distribution or copying of the contents is expressly prohibited. [/vc_column_text][vc_empty_space][/vc_column][/vc_row] Excerpt: ### Find an Auckland Lawyer [vc_row css_animation="" row_type="row" use_row_as_full_screen_section="no" type="full_width" angled_section="no" text_align="left" background_image_as_pattern="without_pattern"][vc_column][vc_single_image image="6668" img_size="full" qode_css_animation=""][vc_empty_space][vc_row_inner row_type="row" type="full_width" text_align="left" css_animation=""][vc_column_inner][vc_column_text]Auckland lawyers are located at Quay Law Barristers and Solicitors. Find an Auckland lawyer. Our law firm is centrally offering our commercial and private clients with a comprehensive range of legal services. Situated in the leafy suburb of Remuera, our Auckland lawyers are easy to find with great off street parking and easy access to the Southern Motor Way, Auckland City, Orakei, Meadowbank, Greenlane, Newmarket, Epsom, Glen Innes, Stonefields and Tamaki Drive. We are only 5 minutes from the Auckland Southern Motorway (Greenlane exit). To contact our law firm by email, phone or post Our Location We look forward to meeting with you. View Auckland lawyer – Ian Mellett’s online profile. Auckland lawyers – Quay Law Barristers and Solicitors [/vc_column_text][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row] Excerpt: ### Find a Lawyer | Contact your Auckland Law Firm - Quay Law [vc_row row_type="row" use_row_as_full_screen_section="no" type="full_width" angled_section="no" text_align="left" background_image_as_pattern="without_pattern"][vc_column][vc_column_text css=""] Contact a lawyer at Auckland law firm | Quay Law Barrister and Solicitor. [/vc_column_text][vc_column_text] Find a lawyer for legal assistance and advice today. Your choice of lawyer or solicitors to attend to your needs is an important decision. At New Zealand law firm, Quay Law (situated in Remuera | Auckland). we are committed to finding a legal solution that tailors the legal process to your personal and/or commercial needs. Our approachable Auckland lawyers deliver prompt & practical advice, at competitive rates & in plain language. Contact us using the find a lawyer form below or call us today to discuss your particular legal question or legal requirements. [/vc_column_text][vc_empty_space][vc_column_text] Find a lawyer [/vc_column_text][vc_empty_space][vc_column_text] Contact Details [/vc_column_text][vc_empty_space][vc_column_text] Physical Address: 165 Orakei Road, Remuera, Auckland, New Zealand. Postal Address: P.O. Box 28841, Remuera, Auckland DX CX 10170 Phone: +64 9 5232408 Fax: +64 9 5232409 Email: quaylaw@quaylaw.co.nz Skype Contact : quaylaw Easy access from the southern motorway using either Greenlane or Market Road off ramp. We are a centrally based law firm offering our commercial and private clients with a comprehensive range of legal services. Situated in the leafy suburb of Remuera, our Auckland lawyers are easy to find with great off street parking and easy access to the Southern Motor Way, Auckland City, Orakei, Meadowbank, Greenlane, Newmarket, Epsom, Glen Innes, Stonefields and Tamaki Drive.[/vc_column_text][vc_empty_space][vc_column_text] See map for directions. [/vc_column_text][vc_empty_space][vc_column_text] Contact an Auckland Lawyer FORM. [/vc_column_text][vc_column_text] Your Name (required) Your Email (required) Your Contact Day Time Phone Number (required) Subject How can our lawyers assist you? (required) [/vc_column_text][vc_column_text] Please visit www.lawyerinauckland.co.nz or www.quaylaw.co.nz for further information regarding our legal services. Our Auckland lawyers look forward to speaking with you. [/vc_column_text][/vc_column][/vc_row] Excerpt: ### Auckland lawyer | Ian Mellett [vc_row css_animation="" row_type="row" use_row_as_full_screen_section="no" type="full_width" angled_section="no" text_align="left" background_image_as_pattern="without_pattern"][vc_column][vc_column_text] Auckland lawyer | Ian Mellett [/vc_column_text][vc_empty_space height="20"][vc_column_text]Auckland Law Firm for Family Trusts, Property Lawyers and Home Transfer, Wills, Commercial Law, Tax, Conveyancing, Commercial Contracts and Immigration.[/vc_column_text][vc_empty_space height="20"][vc_separator type="normal" color="#efefef" thickness="1"][vc_gallery type="image_grid" images="5200,5201,5202,5203" img_size="full" column_number="4" grayscale="no" images_space="gallery_with_space"][vc_column_text] About Ian Mellett Auckland lawyer Ian Mellett of Quay Law, holds a B Comm, LLB, H Dip Tax and is admitted to practice both in New Zealand and overseas. He is friendly and courteous and focuses on building long-lasting relationships with his clients. Ian is able to advise you on all aspects as set out in the firm’s practice areas. Ian Mellet has recently been appointed to the following leadership roles within the community: Honary Solicitor – Parnell Cricket Club; He is a past member of the Remuera Business Community Council and New Zealand Tax Council. [/vc_column_text][vc_empty_space height="20"][vc_gallery type="image_grid" images="5207,5208,5209,5210" img_size="full" column_number="4" grayscale="no" images_space="gallery_with_space"][vc_empty_space height="20"][vc_column_text] Auckland lawyer – iDream Interview [/vc_column_text][vc_column_text][/vc_column_text][vc_empty_space][vc_column_text] To contact Ian Mellett [/vc_column_text][vc_empty_space][/vc_column][/vc_row] Excerpt: ### The Auckland Lawyers [vc_row row_type="row" use_row_as_full_screen_section="no" type="full_width" angled_section="no" text_align="left" background_image_as_pattern="without_pattern"][vc_column][vc_column_text css=""] Quay Law – Auckland lawyers [/vc_column_text][vc_empty_space][vc_row_inner row_type="row" type="full_width" text_align="left" css_animation=""][vc_column_inner width="1/3"][vc_single_image image="5186" img_size="full" qode_css_animation=""][/vc_column_inner][vc_column_inner width="2/3"][vc_column_text]The Auckland lawyers at Quay Law | New Zealand. We are a well established and successful law firm based in Remuera – Auckland, New Zealand. The approachable and experienced team at Auckland law firm Quay Law enjoy working with a diverse range of successful companies and private clients. Our focus is always on fostering a personable yet professional relationship that underpins the specialised legal services Quay Law provides to you, in the time frame you require. Our services are of a high quality, yet are pragmatic and affordable. [/vc_column_text][/vc_column_inner][/vc_row_inner][vc_empty_space][vc_column_text] Find a lawyer? [/vc_column_text][vc_empty_space][vc_row_inner row_type="row" type="full_width" text_align="left" css_animation=""][vc_column_inner width="1/3"][vc_single_image image="5194" img_size="full" qode_css_animation=""][/vc_column_inner][vc_column_inner width="2/3"][vc_column_text] Ian Mellett Auckland lawyer Ian Mellett of Quay Law, holds a B Comm, LLB, H Dip Tax and is admitted to practice both in New Zealand and overseas. He is friendly and courteous and focuses on building long-lasting relationships with his clients. Ian is able to advise you on all aspects as set out in the firm’s practice areas. Ian Mellet has recently been appointed to the following leadership roles within the community: Honary Solicitor – Parnell Cricket Club; He is a past member of the Remuera Business Community Council and New Zealand Tax Council. To contact our Auckland lawyers please call Quay Law on ph: +64 9 5232408.[/vc_column_text][/vc_column_inner][/vc_row_inner][vc_empty_space][/vc_column][/vc_row] Excerpt: