Housing Information

[Dave in NZ]

Hi everyone,
Inspired by Avalon's money thread,as some of you know we are building our own propertyt with builder's help.
We both have a good knowledge of different aspects of property and have acquired a mine of information re property in NZ ranging from rentals,buying,to building your own.
I will first say that I am not an expert on these fields,but with the help of experts and info that we have acquired was able to iron out some of the problems that we encountered. I will attempt to put on here all the info we have and if it only helps a couple of people then it has acheived its aim. This is going to take a few weeks to completely put it all on here so please bear with me until it is finished.
Well here goes.

Finding a section

The first thing is finding the right section for you.Never mind that your friend has found the perfect section for them. You need to find what is right for you. Everyone is different.

Points to check
1) One of the most important things is the proximity to amenities.How far are the local schools,are there sufficient shops in the area. How efficient is the public transport,doctors,hospitals,etc. Do you like to be isolated or do you need all the creature comforts on the doorstep?
2) Next thing to consider is the access to the site. Will it be easy for builders to erect a house on the site or are there going to be difficulties in getting materials etc to the site?A section that is hard to access could push up building costs,not to mention access problems for yourself when it is built.
3) Another good thing to consider is the location of the site. What is the view like? Will you get enough sunshine to the property.Whats the wind like and will you be overlooked by neighbours.Bear in mind that this may not be the only section and what is good views at the moment ,may well be obstructed by houses yet to be built. Check around to see what the drainage is like.Good drainage is very important to avoid any damp conditions.Another idea would be to visit at different times in the day and evening and weekends. What seems like a very peaceful position may be totaly different at night or weekend.Check what the neighbours properties are like.There is nothing worse than living next door to the neighbours from hell.
4) Make sure your section will be large enough for garaging or off street parking.
5) Check with the agent what services are on the site such as gas, water,electric,phone etc. The less services there are on the site will mean more cost to have them laid on. The local council will be able to tell you what is on the section.It is worth checking this out even if the agent tells you. In our section we have to have water and sewerage tanks. This is quite normal in rural areas.
6) Remember,the better the location,the more you will pay for the section. It is best to check what price other sections are going for to give you a rough idea that you are not paying too much or too little. A section that is much cheaper than any others needs looking into as there is probably a good reason for this. Do not solely trust what the agent tells you .get it checked out.
7) It is important at this stage that you do your homework.A little knowledge gained now is worth a whole lot more further down the line. The council can let you know regardiny any proposed commercial builds etc.

Effect of location on building costs
If you decide that a section is the ideal one for you you then need to consider if where the section is will push up the building costs.Say your section is right by the sea or on a cliff. This can put up the building costs quite considerably. There is a lot of wind and salt and your house will be exposed to this. This will mean higher costs in building and regular maintenance.Our section is on a slope.We wanted this for better drainage. It is only a slight slope but because of this the foundation costs are more.Houses that are exposed to wind will have to be designed appropiately,extra bracing etc.

Erosion.

Be very careful that you or your solicitor checks with the council if a site is prone to flooding,erosion or subsidence .There is a provision in the building act 2004 for the council to refuse building permission if these conditions exist.It may well grant it but they must notify the registrar general of land , who will put on the certificate of title that building consent has been issued under section 72.
You or your solicitor should check on the certificate of title whether any section 72 endorsements apply to your section.It may appear on the previous 1991 building act.
Insurance companies may well not wish to insure such properties. For fuller details of this check here
http://www.consumerbuild.org.nz/publ...n-choosing.php

[Dave in NZ]

Section Checklist

The next stage we went through was to get our contract and other documentation checked by a solicitor.This is where our solicitor was worth his weight in gold. Being that we were not used to NZ ways we left everything in his hands.
1) you will need to obtain the certificate of title.(CT) Your solicitor will do this This will tell you the size of your land the shape and whether there are any things to note about it such as rights of way,any outstanding mortgages etc. It will also tell you if it is freehold or leasehold.
2) The CT will also reveal if there are any restrictions(Covenants) which will effect your section. When purchasing ours we were made well aware of all the restrictions such as minimum size of property allowed and maximum size,height etc. you can also check the district plan which contains boundary restrictions and what you are or not permitted to do.
3) Your solicitor will reccomend getting a LIM Land information memmorandum.
This is obtainable from the council and you can get it direct or let the solicitor do it as we did. There is a seperate charge for this from the council and all depends on what area you are applying to.
An LIM contains all information that the council hold regarding the land. This is more detailed than the district plan and will contain details such as enviromental issues, any land restrictions, requirements re septic tanks. Our solicitor did not reccomend us buying the land without seeing the LIM.

4) Depending on the land it may be reccomended for an engineers report to be done and this will reveal the extra costing involved for your land. Our solicitor advised us to get this report done. Your house architect can also advise on this. Our Solicitor advised that it was advisable to have a geo tec survey done of the section to confirm that the ground was solid enough to have a house built on. If you are buying off a developer then it is probable that such a report has already been done,but ask to see it. Do not take their word for it. With our property the boundarys were already set out but some sections it is not clear what land you are getting . Be very careful of this

5) With our section it is part of a sub division of 38 other sections and ours was one of 6 left, so we were pretty confident that most of the groundwork had been carried out but even so we were very careful throughout the whole buying procedure. More of a problem would be the odd section here and there that the owner is trying to sell privately on its own merits.
If you follow the above advice then you are well on the way to finding yourself the ideal site for your home.
In our opinion the most important thing is that you have a reliable solicitor who specialises in land purchases. Be very aware of anyone reccomended by estate agents. We have been warned to avoid them,if only for the fact that agents will make a killing out of recommending you. Most people know of a good solicitor they use.

If anyone else has any information they would like to add to this thread please do.

Kindest regards

Dave and Caroline

[Dave in NZ]

Finding a House

Now that we have our land the next stage is what do we build on there?
By the way just to give you an idea the total time it took from finding our land,placing an offer to actually owning the land was 6 weeks. Far quicker than the UK. One of the most popular choices at the present moment in NZ is the Kitset home. This is now becoming very popular as it can be a cheap alternative to having a standard house built. One of the main problems with this is whether the local council or if you have purchased as part of an estate is if the regulations will allow you to build such a property. With us a kitset home was out of the question as this would not have been allowed.
A kitset home is how it reads. A home you put together from a kit. There are many firms that specialise with this and once again there are good and bad out there. It is worth investigating thoroughly if you are considering one of these types of houses. A good place to start is www.buildyourdream.co.nz
You have the option on these houses where usualy you can buy the kit and erect it yourself if you feel you are skilled enough or get a local builder to do it for you. Some firms will give you a price to supply and erect. whatever happens you cannot purchase such a home untill you know you will be allowed to have it built.
There are many builders who will supply you with the complete package, from drawing up plans to completing the house. Or you can get your own surveyors,architects etc and submit plans to the council before you choose your builder. Then you would get builders in to quote on the price of building your home. It is important before your plans are submitted to the council to know exactly what you want in your house as changing your mind after plans have been approved can be expensive. With our house we listed everything we wanted so that an accurate price could be given at an early stage.
We were told that the reccomended insulation for nz building regs was a bare minimum and we had this upgraded. Things like double glazing are not standard in NZ and in our opinion are an essential extra.
We also included solar panels ,central heating and air conditioning.
When choosing a builder do not allways accept the cheapest quote. Compare them closely and ensure there is not too much scope for any extras to be added. A very high or very low tender should start alarm bells ringing.

Ask your builders if you can talk to someone who has had a house built and idealy see if you can go and see it as anyone could be on the other end of a phone. Remember that this is a major investment and you cannot afford to have made a big mistake. Check that the builder is a licensed building practitioner. (I have been told that this info will be available on a public register from 30 November 2007.)
Check if the builders are members of the New Zealand Certified Builders Association or Registered Master Builders association also find out if they give a guarantee of their work and what is and is not covered.
We decided to go for the complete package as being still in UK we did not want the hassle of sorting it all out. With the help of some very good contacts and friends we feel we have got the right builders.
We decided to go for award winning builders and sent scouts out etc to check showhomes and we have also spoken to many past customers. In the end we are probably paying a bit more this way but at least we ( Hopefully) have peace of mind. Our house will be exactly the way we want it. Our builders are so far excellent and keep in regular contact with us making us feel part of their family rather than a client.
Rather than have our own plan designed we chose one of theirs and then had it altered the way we wanted it.
We have costed out our house and land and then compared it with a simalar property on the housing market and we have without a doubt saved a lot of money by building our own. Even a cheaper section and house you should be able to have it built for less than one already built plus you know its built the way you want without any hidden surprises.

The following web address is the government's page for estimating building costs per sqm and will give you a rough idea to costs involved.

http://www.dbh.govt.nz/bofficials-es...ing-costs#map1

Time for a break

Kindest regards

Dave and Caroline

[dean1968]

I want to add some additional info having "been there done that " that there are traps or extra hidden costs associated with your new section if the title has not been issued. I can't remember the technical jargon it is something like a 124 that the council will issue. I have been informed now and my informatiion is scratchy ( you need to check it out) the council is insisting on land soil tests ( some council mays be different.) For example the land might be peat. For example Peat is a type of soil on swampy land that can sink your foundation. A new subdivision I know of had a similar problem wasn't peat something like clay and they had a few houses like this with the foundations sinking. You need to spend more money to prop them up. Councils may insist on a soil sample report, they are only doing it in your interest if they think there is a problem.

Another built houses in a new subdivision and with all the extra concrete with roads, paths, driveways etc caused drainage problems. No soil to absorb rainwater so wastewater drains off into the local stream. Never mind the pollution issues and contaminating the stream which is a resource concent issue. Bigger issues involved. The waste water flooded back on nearby houses / streets adjoining the new subdivision. Regional council involved and the developer tie up in court as he cannot issue new titles which news to be sorted out by the local council and regional council to issue resource consent and blaming each other. Titles pending which means you can't build.

Building on a hill may increase costs. Volcanic soil that can be like granite. It can cost thousands etcra to dig out the foundation sometimes they blast using explosive. You have to spend heaps more money on this. Check with outsiders like friend impartial builders to tell you the true cost. Sometimes cost you more to spend mega bucks on building your dream property. More than ou anticpated in labour. To get the house built you might not have access to cranes etc or heavy equipment road access indequate. Brickies or people required to build the house sometimes don't have adequate access. Manually moving bricks or equipment by hand as there is no proper access can cost you more money plus time to build. Rule of thumb add $20,000-$30,0000 sometime more to build on a hill for foundations.

Sometimes to avoid extra costs building on a hill for foundations they try to blast using explosive. Without blasting, heavy equipment can take extra time and more money drilling etc. One builder told me they gave up and just re design the house. Volcanic rock as hard as diamond.

One example developer wanted to build on a hill 4-5 apartments using blasting to take out the soil soemthing like out 1600 cubic metres by the truckload (150-250 large dump trucks of soil using blasting equipment. Had to get resource consent. Objections by the neighbours on everything. At the end of it needed retaining walls (didn't want to use any) on hill to stop prevent a landslide. Costs more money. Had to use properly endorsed quilified engineer approved by council on site ( council engineer would also attend. Fire service objection - had to have additional water pressure ( I don't know what you call for fire prevention - to pump more water in there for fire hazard on a hill. Had to pay council a special levy fund for park mamanagement. All those families needed park facilities for the kids etc. One expensive exercise. Has not gone ahead. The developers try to pre sell. This is a trap. You want to know that title has been issued before you sign up. There was an endless list of objections including the times to move the soil. I wouldn't want to live next door with the noise, constant hammering , wind blowing and never mind the blasting and future land / erosion subidence of the property. Check out when you buy your dream section what is going on next door to you including if they are gonna block your sun / million dollar view with a two story property.

Developers sign you up and there might be convenants like what dog you own etc. What material you can use etc building the house. Have to go with there builders and minimum build size. That is standard but you need to be aware of these things.

The real trap is when the ttile has not been issue by the council due to objections or has not met certain requirements by the council. A private owner su bdividing the land might have a hard time meeting these conditions being a novice. As it is his first time. Make sure you get a water tight quote /contract from your lawyer. That he or she cannot go above a certain cost due to delays etc. I got stung from my solictor who charged extra way above the norm because of the time involveded. Your solictor will try to pass on additional costs and yes he will get away with it if you don't nip it in the bud at the start. Watch him or her like a hawke. You will be bleeding red ink in this area. Paying a lot of money unnecessarily and he will say he had to do this or do that that the developer was inexperienced etc. In my opinion most Kiwis are honest and a novice first time developer is not going to rip you off. That is a farmer subsividing his land. Talk more to them direct and less to your solicitor. They will give you an honest answer of what is actually going on and why it is out of their hands. It will be your solicitor trying to talk with the other solictor and passing on the cost to you not knowing much about it anywaywhile at the same time clocking up a hefty bill at your expense for his hour charge.. No one knows how long these things take in advance. Just take it in account and adjust you plans accordingly. You can usually talk to the council yourself ot the sellor.

The council may have a backlog and the 124 has not been issued as developer could just be a private farmer which can make it worse and they have done what the council has requested being a novice. 12-18 months delay before title issue. You pay a deposit and the devlopment is suppose to do certain things. One example land was incorrectly surveyed and the fence boundary had to be moved back. Council may not issue the 124 for a long time because of the backlogs etc. When title has been issue the council can still hold up title with further delay just to issue building conssent. There can be endless delays on something very minor that the developer has not done correctly. The worse is when the developer hasn't met the condition and after 1 year you have a get out clause that means you can walk away including the developer Sometimes because of the endless delays he puts it back on the market at the new market prevailing price. You might find you sign up to buy a section at $150,000 with a 10 percent deposit. After 1 year has elasped the developer has not been able to obtain title therefore can resell the section back on the market at the new prevailing market prices say $200,000. With inflation running at 4 percent and property running more more like 10 percent he now offers you the same section to you for a fair price $200,000 What do you do? You are stuck between a rock and hard place.

Buying a section and bilding a house is a nightmare and someone on this forum warn people it can be a living nightmare from "hell" and plays havoc on your marriage. It will either make or break your your marriage and make you stronger or certainly put it to the test. One thing will come out of if (your marriage) you will certaintly have more grey hair they you will need to dye.

Just some observations. Last on the coastal property. Sea salt can be corrosive on everything and having lived on the flat a few kilometres back from the beach and also ihaving xperienced it lving on the hill. Nearer the coast temperatures are slightly warmer. In winter, inland can be frost and nearer the coast no frost at all. Often the wind can be a killer. Windier near the coast and more breezes on the house, can literally shake from the prevailing winds. If you have a well design house no problem. Obviously air cleaner, healtheir and fresher.

[dean1968]

Just be aware sea salt plays havoc on you house - the wind can carry the salt miles inland. I was living a few kilometers inland from the beach. My car was parked on the street and the sea salt over a year was destructive to the paintwork. I am just giving examples of what it can do. Over time it is is gonna take its toll on your equipment, car house etc .Energy efficient heat pumpms popular in NZ have warnings about installing them near ocean property. They don't like the salt. Solar heating is another. Just something to be wary of that you will need to spend more on the maintenane of the house especially with painting of wood / timber etc. I live up a hill 2 km away from the ocean and the sea salt blew carried inland and damages your plants (know what to grow before you plant expensive stuff, even hanging out the washing to dry on the clothing line is problematic with the sea salt. There are pros and cons just factor them in. One other tip I am only passing my knowlege having expereinced living on the coast and hill property has advantages and disadvanteges. On the flat in a valley no sun was a killer it is really really bad would not recommend it to anyone. Please be very aleart to this. The most important thing in my opinion is the sun it makes a big difference. Bottle necks getting in there with traffic. Lving near on top of the beach attracts a lot of noise motorists / traffic as everyone attends the beach. Boy racers who don't muffle their exhaust pipes / drinking rowdy beach ges etc. I thought it was interesting that my real estate millionaire agent lived further back from being on the beach which was tip for me. Living on the hill is a nightmare parking, getting into the driveway and also big disadvantgae for young children. Again my Doctor friend move away from the hill back onto the flat more centrally into town with children. Transportation like a bus service, drving to and from work, getting to the shops, essential services like doctors, they start to add up when living on a hill with childdren. Last but not least having lived on the rural fringes on a coastal ocean view property, I found it interesting my neighbours all had cats. During winter when it is cold, field mice move in to your home...Everything was a drag. Reception is poor, no radio, televison signals bad snowy picture and yes no broadband to far awy from the phone exchange, when I was use to all these everyday items that I took for granted.
Even the quality of the water was heavily treated. Then to top it off the ocean is not recommended for swimming. You need to travel to other places where the ocean is cleaner.

Final recommendation knock on the door of your neighbour and introduce your self, will you get a wealth of information and tell them you are interested iin buying the section..

[Glenda]

Wow, very detailed info there Caroline and Dave.

I would add allowing a few thousand for those unexpected extras. On my section these included an additional resource application as the house was to be built on a slope and there is a limit to how much soil can be dug out and moved, an engineer's report for the septic tank, and Development Contributions which is insisted by the local Council for the good of the town (in my case I was lucky it was just $1,400, as a contribution to town car parking!).

[Avalon]

Wow - thats great! Cant wait till you get to the rentals bit

Thank you

(edited to add - now I'm the one who has to "Spread it around a bit" - so sorry - I tried!)

[Dave in NZ]

Thankyou Glenda for your added info.
What I will do now is a list of builders,estate agents and trade and professional groups.

A1 Homes www.a1homes.co.nz
Advantage Construction www.advantageconstruction.co.nz
Alexander Construction www.alexanderconstruction.co.nz
AP Developments www.apdevelopments.co.nz
Arhaus www.arhaus.co.nz
Ascot Homes www.ascothomes.co.nz
Asten www.asten.co.nz
Balmoral Homes www.balmoralhomes.co.nz
Borman www.borman.co.nz
Build Safe Homes www.buildsafehomes.co.nz
Buildzone www.buildzone.co.nz
Cambridgehomes www.cambridgehomes.co.nz
Carl Taylor Homes www.carltaylorhomes.co.nz
Cranston www.cranston.co.nz
David Reid Homes www.davidreidhomes.co.nz
DD Construction www.ddconstruction.co.nz
Diamond Homes www.diamondhomes.co.nz
DJ Hewitt Builders www.djhewitt-builders.co.nz
Energy efficient Homes www.eehnz.co.nz
Fendalton Construction Ltd www.yellow.co.nz/site/fendaltonconstructionltd
Fowler Homes www.fowlerhomes.co.nz
Generation Homes www.generation.co.nz
GJC www.gjc.co.nz
GJ Gardner Homes www.gjgardner.co.nz
Golden Homes www.buildersnz.co.nz
Hallmark Homes www.hallmarkhomes.co.nz
Harmony Homes www.harmonyhomes.co.nz
Home Builders www.homebuilders.net.nz
Home World www.homeworld.co.nz
House Plans www.houseplans.co.nz
Ideal Garages www.idealgarages.co.nz
Intalok www.intalok.co.nz
Jalcon www.jalcon.co.nz
Jennian Homes www.jennian.co.nz
Lockwood www.digwork.co.nz
Maddren www.maddren.co.nz
McRaeway Homes www.mcraewayhomes.co.nz
Meridan Homes www.meridianhomes.co.nz
Mitchell homes www.mitchell-homes.co.nz
Moore Living www.mooreliving.com
Moss Brothers www.moss-brothers.co.nz
Natural Log Homes www.naturalloghomes.co.nz
Paradise Homes http://paradisehomes.ehosting.co.nz
Platinum Homes www.platinumhomes.co.nz
Primesite Homes www.primesitehomes.co.nz
Progress group www.progressgroup.co.nz
PW design and Build www.pwdesignandbuild.co.nz
Regency Designer Homes www.regencydesignerhomes.co.nz
Robinsons www.robinsons.co.nz
Rod Percival www.rodpercival.co.nz
Ruben Homes NZ Ltd www.rubenhomesnzltd.co.nz
Signature Homes www.signature.co.nz
Solid Masonry www.solidmasonry.co.nz
Sovereign Homes www.sovereignhomes.co.nz
Stonewood www.stonewood.co.nz
Styleline Homes www.styleline-homes.co.nz
Sunshine Homes www.sunshinehomes.co.nz
Supreme Homes www.supremehomes.co.nz
Sustain Build www.sustainbuild.co.nz
Sustainable Structures www.sustainable-structures.com
Tailormade Homes www.tailormadehomes.co.nz
Urbo Homes www.urbohomes.co.nz
Uniquehomes www.uniquehomes.co.nz
Vogue Homes www.voguehomes.co.nz






Well that should keep you occupied More to follow


Dave and Caroline

[Dave in NZ]

Well, I'm Back again.
Thankyou very much Dean for your comments. I value your comments,the only thing that slightly concerns me and please don't take this the wrong way,is that I am trying to give people all the info I can so that they can get the best property they can. There have been so many posts about the downsides to NZ property and although I agree with them and indeed I will be mentioning some as I go along, but your posts seem to be full of the downsides and not much about the ways to go ahead. What I don't want is people reading these posts and then getting scared off. These problems can be avoided and hopefully with all the contacts I give etc, They will be able to make a success of it. pointing out the bad points is good, but it needs to be backed up with the positive points. I look forward to seeing more from you with a bit more constructive help. I am sure your more positive comments will be appreciated as will the downsides in a fair balance.
I will continue my list in the next post

Kindest regards

Dave

[Dave in NZ]

Trade and Professional Contacts

May I first apologise that I have not got these in Alphabetical order as i am pushed for time.

New Zealand Registered Architects Board www.nzrab.org.nz
Building and Construction Industry Training Organisation www.bcito.org.nz
Arbitrators & Mediators Institute of NZ www.aminz.org.nz
Designers institute of New Zealand www.dinz.org.nz
Architectural Designers NZ www.adnz.org.nz
Association of Consulting Engineers NZ www.acenz.org.nz
Fire protection Association NZ www.fireprotection.org.nz
Electrical Contractors association of NZ www.ecanz.org.nz
Building Industry Federation www.bifnz.org
Building officials Institute of New Zealand www.boinz.org.nz
Building Research Assc of NZ www.branz.co.nz
Building Service Contractors of NZ www.bsc.org.nz
National Flooring assc www.nfa.org.nz
Master plumbers gas fitters,& Drainlayers NZ www.masterplumbers.org.nz
Certified Builders Assc of NZ www.certified.co.nz
Claddings institute of NZ www.cinz.org.nz
Design Assc of NZ www.danz.co.nz
Glass assc of NZ www.wanz.org.nz
Frame and Truss Manufacturers of NZ www.ftma.co.nz
Institute of Refridgeration,Heating & air con NZ www.irhace.org.nz
Landscape Industries Assc www.lianz.org.nz
Institute of Professional Engineers www.ipenz.org.nz
National Kitchen and Bathroom Assc NZ www.nkba.org.nz
NZ building Subcontractors Fed www.nzbsf.org.nz
Registered Master Builders Federation NZ www.masterbuilder.org.nz
Standards New Zealand www.standards.co.nz
NZ Institute of Building www.nziob.org.nz
NZ Lifts and Elevator Assc www.lifts.org.nz
NZ Institute of Valuers www.property.org.nz
NZ Building Trades Union www.nzbtu.org.nz
NC Construction Industry Council www.nzcic.co.nz
NZ institute of Architects www.nzia.co.nz
NZ institute of Building Surveyors www.buildingsurveyor.co.nz
NZ Institute of Landscape Architects www.nzila.co.nz
NZ institute of Quantity Surveyors www.nziqs.co.nz
NZ Institute of Surveyors www. surveyors.org.nz
NZ Joinery Manufacturers Federation www.masterjoiners.co.nz
NZ property Institute www.nzpif.org.nz
NZ Pine manufacturers Assc www.pine.net.nz
NZ Metal Roofing Manufacturers Assc www.metalroofing.org.nz
NZ plumbers,gas fitters and drainlayers board www.pgdb.co.nz
NZ timber Industry Federation www.nztif.co.nz
NZ timber preservation council www.nztpc.co.nz
NZ WAter and Wastes Assc www.nzwwa.org.nz
Power Crane Assc www.cranes.org.nz
Property Council of NZ www.propertynz.co.nz
Ready Mixed Concrete Assc www.nzrmac.org.nz
Site Safe www.sitesafe.org.nz

Thats all for now folks ( Sounds like Bugs Bunny Cartoons)