Wednesday, April 27, 2005

Who'd be a builder?

Who would want to be a developer, or a buyer of a first home? Hard on the heels of news that interest rates are up to 9 per cent and the official cash rate is up 1.75 points since December 03 comes fee increases for building consents in the order of twenty to thirty percent, and higher prices for builders as their numbers dwindle following the introduction of the new Building Act.

The ironic thing about the new Building Act – beyond its banning of home maintenance and DIY for home-owners – is that the reason for the amendment of the Act was the hysteria about leaking homes.

Consider then that the higher profile leaking-homes cases were in the main designed by Registered Architects and built by Master Builders. The solution put in place by this Act is to add more red tape, and to make it mandatory to be a Registered Architect or a Master Builder. Top thinking.

As always, the more red tape the better it is for larger organisations, and the harder it is for smaller firms, especially one-man band operations. Look forward then to the number of builders leaving the industry, even as the market for builders divides itself up as it does in places such as the UK into ‘suits’ and ‘cowboys’ - hidebound suit-wearing larger firms who cost a lot, and smaller firms offering affordable work but on a ‘black-market’ basis, and often without consumer protection.

In any case, the cost and complexity of building is going to increase. Blame the Building Act 2004

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Anonymous ruth said...

The Greens should be dragged off and shot about the leaky homes thing - with untreated timber and all that...but if I had a dollar for every time I have heard the meme "the property market is due for correction" I would be a wealthier woman. I-rates have far less effect on the property market than man-in-the-street pundits think. This has been proven time and time again. Compared to offshore the NZ property market is still cheap - I would say it has at least another year to run.

4/27/2005 03:30:00 pm  
Blogger Duncan Bayne said...

Ruth - did you read my comment on the "What's a woman to do?" post? There are some stats in there I think you'll find interesting.

Sorry to hear you've had problems with arse-hats :-(

4/27/2005 04:35:00 pm  
Anonymous ruth said...

No I didn't and I couldn't find it. But whatever. The land I bought at Russell 18 months ago has appreciated by over 100% - a far better return than the sharemarket.People are full of shit about the property market.That's why I am a millionaire and you are not. ;-)

4/27/2005 09:04:00 pm  

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