Off the Top of My Head
By Paul Murray
After almost two years as a land agent here in Karamea at the top of the West Coast of the South Island of New Zealand, I have learnt a lot about property, our region and the intricacies of contract law, LIM reports, titles, easements and a raft of other complicated legal implications involved in the transfer of a property from seller to buyer.
I’ve approached the real estate business as a professional service rather than a sales job and attempt to help my clients through a property-purchase process to make it as smooth, transparent and stress-free as possible. As a property purchase is, for many people, one of their most significant investment decisions, it’s essential to get it right, and I enjoy helping people through the process.
I’m pleased to report I have found buyers for over 40 properties since I started with Property Brokers and have thoroughly enjoyed the challenge and learning experience and the satisfaction of helping my clients sell their properties and welcoming new people into our region.

Karamea has a robust demand for rental properties as well, and I’m finding quite a bit of interest in the market from investors looking to get their money out of the banks and into property where the perception is that their returns will be higher and their cash safer.
The Buller region has the best rental returns in the country as property here can be purchased much cheaper relative to other areas. According to QV.co.nz, the average price of a three-bedroom home in the Buller region is currently $205,794, and average rent in the region is $280 p.w., which provides a rental yield of around 7.5%. This is an attractive return on investment, particularly when the long-term capital gain potential is also considered, but be prepared to invest for more than five years for a rental property to avoid paying capital gains tax when the property is sold.

New Government Valuations (GVs) will be publicly available around the middle of January next year, so it will be interesting to see which way they go. I suspect (speculatively) that GVs in our region will increase as properties have been selling well for prices significantly higher than the current GVs. This indicates strong demand in the market and buyers are prepared to pay over and above GV to secure property in this emerging and attractive region.
Rateable valuations, government valuations and capital valuations are fundamentally the same thing. The valuations are an attempt by the government to standardise the valuation process across the country to give buyers, owners and sellers confidence in the capital value of land and buildings. These valuations are calculated by local authorities and also used to assign rates for the property. That said, GVs in the Karamea region were generally higher in 2008 than they are now, and I’m yet to hear of anyone who has had their rates decrease!
Prospective buyers use GVs as a gauge of a property’s value, and people often ask why the GV is lower than the asking price. Government valuers assess property value based on general factors for the region that don’t include such considerations as improvements to the property, the condition of land and buildings, chattels, renovations, views, aspect, location etc.
Property owners in Karamea have been quite frustrated by the lower GVs assigned to their properties in recent valuations, which have been linked to the economic malaise being experiences in Westport and other Buller districts resulting from the closure of Stockton and Reefton mines, Holcim Cement moving to Timaru, which impacted on Buller Electricity and Westport Harbour as Holcim was their largest client.
In addition, the dairy industry also simultaneously went udders up, and another of the region’s main economic drivers suffered a downturn. The loss of jobs in the Buller that resulted from these events led to a sharp drop in Westport property values and the GVs in the Karamea region also declined by association.
As our local economy is mostly independent of Westport, I consider the downturn is of little relevance properties in our region given its excellent location, quality and appeal. I explain this to prospective buyers to assure them that asking prices for local properties are justified.
As GVs are only calculated every three years, they can be very inaccurate as the market can change quite quickly, and the GVs can be left behind as the market progresses. People often say, “A property is only worth what the market will pay for it,” and this is very true. Buyers and what they are prepared to pay for a property determine actual property values. My role is to find that magic figure between buyers and sellers that is acceptable to both parties, and I’m pleased to be able to say that the prices achieved for my vendors have been well above GV in most cases.![]()
Average House Price October 2019 v October 2016 (Source qv.co.nz)
August/September/October, 2019 sales figures for the Buller District: (Source: qv.co.nz)
If you are interested in an assessment of the current market value of your property, please give me a call, and I will do a free appraisal for you based on recent sales of comparable properties and other market developments.
It will be interesting to see what the new GVs for our region will be when they are released. I suspect they will begin to tick up again on the back of robust property sales in the region, but I hope our rates don’t follow suit!
Thank you to everyone in the Karamea community for their support and encouragement. I’m really enjoying my new role, and if I can be of assistance to any readers, who are thinking of buying or selling property in the Karamea region, if you have any questions or need some information relating to property, please contact me anytime.
















© Original Image by Paul Murray







© Original Image by Paul Murray


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© Original Image by Paul Murray



© Original Image by Paul Murray



© Original Image by Paul Murray



© Original Image by Paul Murray



© Original Image by Paul Murray



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© Original Image by Paul Murray


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After almost 14 years at 






























































































































































































































































































































































































































































































































































































































































































































































































West Coast Economy Benefits From Hidden Tourism $ Yields
Off the Top of my Head
By Paul Murray
There is quite a lot of talk at Councils and in the local media on the West Coast lately about the need for the tourism industry to be self-sustaining and not to rely on local government funding and ratepayer subsidies to support it.
Currently, tourism is without question best game in town for the West Coast. Traditional extractive West Coast industries like forestry, mining, fishing and dairy are in decline or don’t really have any additional growth potential. The people employed in those industries may choose to spend some of their wages on the Coast, and they certainly do, but much of that money is spent elsewhere and doesn’t really benefit the local economy.
Tourism, however, caters to visitors to the region and those people spend a lot when they are here. The come to visit the Coast and see the spectacular natural environment and scenery that we sometimes take for granted. When they are here, they purchase accommodation, meals, fuel, food; they spend on activities, events, visit coffee shops, purchase souvenirs…this is good for the local economy and local businesses as it enables them to operate and also to employ staff. The tourism industry supports businesses that are not directly tourism related and inadvertently helps keep Coasters employed. The supermarket staff, the butcher, the local mechanic, the service station workers, the waiting staff, the baristas, the information centre teams, the local hairdresser, the newsagent, dairy owners and many more are supported by tourism money directly and indirectly.
The Ministry of Business Innovation and Employment (MBIE) has determined the average daily spend for a visitor to the West Coast is $248. This figure is calculated by dividing the total visitor revenue by the number of visitors. Resident West Coasters do not support the local economy by spending this much per day, but we directly benefit from the capital introduced to our economy by tourists.
Jim Little, CEO of Tourism West Coast, said, “The latest MBIE figures show West Coast number 1 for percentage growth of expenditure at 14% to $577 million up $9 million year-to-date March 2018. The national average is 9%.” He added, “In terms of GDP contribution, tourism now number 2 on the Coast at $172 million second only to dairy on $234 million. That’s up from number five 5 years ago.” This shows the importance of tourism to the West Coast economy and also just how fast it is growing and demonstrates its potential to bring further economic prosperity to the Coast.
Many of the services and facilities we enjoy as local people would not exist without tourism. Local cafes, restaurants, service stations, pubs, museums, activity providers and scenic attractions would not be available to local people without the financial support derived from tourism. Without tourism the quality of our respective lives and the range of facilities and services we enjoy would not be available without the income tourism provides…they just would not be financially viable.
Tourism also encourages local governments to improve infrastructure to cater to the visitors. So our roads, public facilities like toilets and waste-management systems, electricity, Internet services, telephone networks etc are all improved because of tourism, the money tourists introduce to the economy and the demand for services and facilities they create.
To cater to tourists, accommodation providers must also purchase all sorts products, materials, furniture, whiteware, electrical appliances, print brochures, make signs produce advertising material etc, and all of those requirements support other non-tourism related businesses, like; furniture shops, linen suppliers, cleaning products, gardening equipment, fuel, hardware and building supplies, food and beverages, groceries and much more. All of this also supports the local economy and enables us to have such shops and businesses and suppliers available to people living on the Coast.
While tourism-related businesses may not cater directly to West Coast residents, the quality of our lives are significantly enhanced by the money visitors bring with them when they come, and the people working hard to cater to them when they are here should be supported in every possible way and the small amount of subsidisation that West Coast tourism currently receives from the Councils (via rate payers) goes a long way to maintain and improve the quality of life for Coast residents and helps keep services and facilities open and available to our people and us employed. The World Trade Organisation estimates that tourism generates an indirect contribution to the local economy equivalent to 100% of direct tourism expenditure. Please consider this when discussing tourism and the subsidies the industry receives for the benefit of us all and future generations.
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Paul Murray is a Karamea-based tourism business operator and owner of:
Rongo Dinner Bed & Breakfast: http://www.Rongo.nz
Karamea Farm Baches: http://www.KarameaFarmBaches.co.nz
Karamea Connections: http://www.KarameaConnections.co.nz
Published: The Westport News May 8, 2018
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