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Photo: supplied; additional design: The Spinoff
Photo: supplied; additional design: The Spinoff

PartnersApril 28, 2022

The Raglan surf icon staying steady in changing tides

Photo: supplied; additional design: The Spinoff
Photo: supplied; additional design: The Spinoff

In this story from the Electric Highway, Don Rowe visits a stalwart business in his hometown to learn how regional Aotearoa is growing and changing.

For decades the small Waikato town of Raglan has been in flux. In the early months of the new millennium, after the clocks ticked over and planes didn’t fall from the sky, the New Zealand Herald published a story breathless in disbelief at former All Black Josh Kronfeld’s “architectural statement” in Whale Bay, rumoured to have been worth around $400k. Today, that money wouldn’t buy you a car park outside. 

Every time I go home, there are new houses, new shops, new cars. As I pulled into town in the BMW iX, I was pleasantly surprised to see there’s even an EV charging station outside the old town hall now. But as consistent as Manu Bay’s world famous left hand surf break has been the Raglan Surf Co, which celebrates 30 years in business this year. 

This story from the Electric Highway is brought to you by BMW i, pioneering the new era of electric vehicles. Keep an eye out for new chapters in Don’s journey each week, and to learn more about the style, power and sustainability of the all-electric BMW i model range, visit bmw.co.nz.

Founded by legendary board shaper Craig Hughes and wife Liz in 1992, the Surf Co has survived Raglan’s notorious seasonal fluctuations, increasing gentrification and the difficulties of Covid-19 to remain one of the most enduring family-owned businesses in town. And with its continued existence has been a preservation of the values that make Raglan such an iconic surf town, even as the population has exploded.

“In 1992, on a quiet day, you could see the tumbleweeds blowing through,” says Liz. “If you went to a cafe you could have a white bread sandwich and a cup of instant coffee – which I did quite regularly.”

But everything changes, and year-on-year the crowds began to grow. Access to the internet became ubiquitous, the word was out, and online surf reports and webcams made deciding whether to paddle out as convenient as a click of a button – despite the efforts of some locals, who from time to time took the cameras out of operation.

“I’ve got a sneaking suspicion as to who may or may not have done that. You could say, well, that’s really selfish, but you know, when everything is done for you, you don’t earn your brownie points in getting to a position that gives you some sort of qualification status, reading the isobar and learning about the ocean.”

The original Raglan Surf Company premises, 1992 (Photo: Supplied)

The original Surf Co was both a workshop and retail store, unmissable on the main road from town to the beach. Craig worked out back, drawing on his own love and experience for surfing to create custom boards with a reputation for quality and attention to detail. “He had the sensitivity which makes a good shaper, that makes a good sculptor, that makes a good artist,” says Liz. “When you have the knowledge behind it because you actually walk the talk and you know what it feels like to do an incredible reo or a floater or a full cutback, you know what surfers are looking for, and you also understand the aquadynamics as well. I think creativity comes from the same place of love. And it’s a gift.”

Luke Hughes, the oldest of the three Hughes kids, is a successful but self-effacing competitive surfer in his own right. Growing up in the shop, he picked up the trade by osmosis, inheriting Craig’s principles of shaping, as well as expectations of quality.

“We’re in a small community in a small country,” he says. “And, you know, quite often I’m out surfing with the people that I’ve made boards for. It was the exact same thing for Dad. He would be out surfing with the guys and girls that he’s made boards for, and he could see how much enjoyment his craft was able to give people. And for him that was the motivating factor.”

But in 2013, after a decade-long battle with cancer, Craig Hughes passed away. Hundreds of mourners packed the Raglan School Hall, lining the room with old Hughes custom boards. The family were left grieving the loss of a dad and husband, but also with the task of continuing his legacy, and that of the shop. 

“You’ve gotta be resilient, you’ve gotta have a bit of staying power and grit,” says Luke. “You’ve gotta roll with the punches. I feel like we as a family learned that pretty early on when Dad was diagnosed with cancer. Obviously that was a shock to the system – he’s the keystone of our family, who has been diagnosed with a terminal illness. There were a lot of conversations about the longevity of the business, the big picture, the succession of it all.  He was the fundamental player in that equation. 

“And therefore when he was removed, there was gonna have to be significant change for us to continue. It wasn’t just that dad was sick, it was the fact that if we don’t do anything, the future of business… it’s our livelihood. It is who we are. It’s what we do. That was all at risk.” 

High summer at the famed Raglan break (Photo: Don Rowe)

The Hughes family realised that in the increasingly crowded retail market, the way forward was to play to their unique strengths: community, reputation and authentic lived experience. Where any of five different shops might stock Levis, only Raglan Surf Co sells the iconic Raglan Surf Co merch and Hughes custom surfboards. Relationships with suppliers, established when Luke was just a grom at domestic surf tournaments, could be leaned on. And with the entire family still actively in the water, the sense of community spirit remained prevalent in Raglan. 

“It is as much a lifestyle as it is a profession for not just me, but our whole family. I guess that’s something that complements the fact that we’ve been here for 30 years, because we’re not just turning up to the day job and that being it, you know.”

In 2017, Raglan Surf Co moved a few doors down the street to what locals know as the Vinnie’s building, named after an institution of the aughts and one of the oldest structures in town dating back to the 1800s. Craig had had his eye on the place for years, says Liz, but converting the space in practice was difficult. Daughter Ariel took time off university to help, as the shop added a coffee bar with prime people-watching views and doubled down on providing the real Raglan experience. 

While the shop has moved, and the boards are now shaped in a workshop at home, the Hughes legacy is being established for the next generation to carry on. 

“Luke holds the reins now,” says Liz. “Luke is the one that has enabled us to carry on because of his hard work and his common sense and his own gifts. And you know, that the feelings of doubt he must have had, ‘my father’s got such a huge reputation, I’ve got huge boots to fill.’”

“But at its heart it’s all surfing. It’s totally about surfing. That’s who we are.” 

Keep going!
Want to buy a house? You don’t have to go it alone. (Image: Getty; additional design: Tina Tiller)
Want to buy a house? You don’t have to go it alone. (Image: Getty; additional design: Tina Tiller)

BusinessApril 27, 2022

How Co-own could get you on the property ladder

Want to buy a house? You don’t have to go it alone. (Image: Getty; additional design: Tina Tiller)
Want to buy a house? You don’t have to go it alone. (Image: Getty; additional design: Tina Tiller)

There has to be a better way to get on the property ladder than buying 50 years ago. With the prospect of owning a home a mere dream for so many, the option to Co-own may be the solution some are looking for. But how does it work?

It’s never been more difficult to buy a home in New Zealand than it is now. At the end of 2021, annual house price growth peaked at 30%, and with high costs of living, saving the amount needed for a deposit is becoming harder and harder.

Even with savings, a decent sized KiwiSaver fund to draw from, and a well-paying job, owning a home can still feel out of reach for huge proportions of first home buyers. For those outside of a two-income family, getting on the property ladder can often seem like an impossibility.

Reimagining what home ownership looks like can provide an alternative way into the market. Teaming up with others can create the resources required to get a foot in the door and then onto the ladder. Whether buying with your family, friends or flatties, the ability to share a home loan could change the game for many New Zealanders. The concept and process of co-ownership, although around for a while, hasn’t been that well-understood.

Kiwibank’s new Co-own aims to fix that. The Spinoff spoke to Philippa Scott, mobile mortgage manager at Kiwibank about what Co-own is, and how it could help Kiwi into their first homes.

A property sold sign in Auckland, 2017 (Photo: Fiona Goodall/Getty Images)

What is Co-own?

It’s where friends or family may be able to get on the property ladder sooner by teaming up to get a home loan. Combining savings with others offers customers the chance to achieve the deposit goal together and provides the ability to share ongoing property-related expenses such as home maintenance, rates, and insurance.

Is this a completely new idea?

Actually, no. Customers could always come together to jointly purchase a property. What Kiwibank is doing with Co-own is giving visibility to this alternative pathway to home ownership. We want customers to know that it’s there as an option, we have a process in place and we’re ready to talk about it. 

How would this work?

As a group, you’ll be combining resources to borrow money together so you can purchase a property. You’ll need to talk through everything among yourselves and understand each person’s goals and needs for buying a house. Discuss how much everyone can contribute and then speak with a Kiwibank home loan specialist to see whether Co-own will work for you. 

You’ll be guided through the conditional approval process together with your Kiwibank home loan specialist to figure out how much money you could borrow to spend on a property. Then it’s up to you to find a house that suits everyone’s needs!

When buying property with others, what do I need to think about?

Get a lawyer. Seriously, get a lawyer. A good property lawyer will be able to advise on the risks and help you draw up a property sharing agreement. The property sharing agreement is between all of the co-owners. You’ll want to go into detail about how your particular situation will work, so everyone understands their rights and obligations. A written agreement is absolutely vital to provide the guidance needed to support everything going to plan – and help out if things don’t go as expected.

I’m young, with good career prospects, a decent income and a growing KiwiSaver nest egg – but still years away from meeting the requirements for a home loan. How could Co-own get me there?

Let’s say you have a close friend who’s in a similar position to you. Individually, neither of you has enough saved for a 20% deposit, or sufficient income to meet loan repayments on your own to purchase a property. But together, you have enough saved for a deposit right now and your combined incomes would be enough to meet the loan repayments and other property ownership costs. Co-own could get you into a home together. 

Who would Co-own work best for?

There are many different ways Co-own can look, and it’s different for everyone, whether you’re borrowing with close friends, siblings, parents or even two couples teaming up. It can vary – but we do regard it as important that the applicants know each other well enough that there can be a genuine relationship of trust. We’ve helped brothers and sisters into joint home ownership. Often, applicants are already flatting with each other – or they may be long-term friends who agree to buy a house together as a way to get into property ownership. There are a lot of risks with co-ownership and borrowing money with others to think about and discuss with your lawyer. Things like how your credit rating could be impacted if things don’t go to plan. 

Is this a forever thing?

Not necessarily. It can be conceived as a stepping-stone from the start.  Co-owners may well go in with a plan to eventually go their own ways – either selling up and taking their respective capital gains (if any) and buying their own properties, or one party buying the other out after a period of time has passed. The property sharing agreement should set out a workable formula and process to follow for these and other scenarios.

What if things go wrong and one co-owner doesn’t meet their obligations under the home loan agreement?

We’ll discuss this with you during the application process – it’s very important to be clear on what happens in the worst-case scenario and how you would manage it. Parties to a joint loan agreement are jointly and individually liable. If one party can’t meet their financial obligations, we would give the other party the opportunity to pay and maintain that loan. 

Some form of income insurance is generally a very good idea. As all parties are responsible for the home loan, you would want to ensure you have protection in case something impacts on your ability to earn an income.

Is there more to know?

Taking the first step towards owning your own home can be a scary prospect, but Co-own could make it feasible for you sooner than you think. 

Find out more here.

But wait there's more!