How to get a $650K KiwiBuild-style house down to an affordable $300K

[PC]

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12107783

I have an even simpler idea - take the $650K house and just remove the 56% cost of taxes & council fees off it!
Not even a mention of the real problem in this article.

[donna]

Yeah and talking about taxes and councils etc - the new ban of foreign buyers is not even a total ban with Aus and Singapore exempt due to free trade agreements.

Plus it's impact will be minimal and probably the last action you'd do as pointed out by REINZ

"Increasing the level of supply, speeding up the consenting process, creating consistency at councils around New Zealand and reducing LVR restrictions for first time buyers are all more appropriate measures that will help with affordability ahead of banning offshore investors."

source

cheers,

Donna

[donna]

From that NZH article this is interesting too -

Our target should be $1200sq m, which would bring us more into line with overseas.

It's ridiculous how expensive it is to build - we've been quoted over $3000 sqm just because we want it a little higher spec e.g. cedar cladding.

cheers,

Donna

[jimO]

From that NZH article this is interesting too -



It's ridiculous how expensive it is to build - we've been quoted over $3000 sqm just because we want it a little higher spec e.g. cedar cladding.

cheers,

Donna

go to your local hardware store and buy a bit of 4x2..........NZ is covered in pine trees why is wood so expensive

[Davo36]

go to your local hardware store and buy a bit of 4x2..........NZ is covered in pine trees why is wood so expensive

Same people who make avocados make pine?

[Davo36]

I saw this:

The other is that greenfield infrastructure costs six to nine times less than brownfield infrastructure.

Oops never seen that in print before. Of course it's true, but we're not allowed to say it. We have to say "Oh expanding outwards is sooooo expensive..."

[donna]

Kiwis are ripped off. Why does it cost double to build a house here, than elsewhere? I heard it's due to a monopoly controlling the import of building supplies so why doesn't the Govt disrupt that set up? They want so many houses built they need to up their stake in it.

The Reg. Master Builders recent conference revealed the construction industry is in crisis due to lack of support and too high risk placed on Builders etc.

cheers,

Donna

[Davo36]

Well there are many reasons Donna. The cartel on building supplies is one of them.

[jimO]

Well there are many reasons Donna. The cartel on building supplies is one of them.

council fees

[Wayne]

Kiwis are ripped off. Why does it cost double to build a house here, than elsewhere? I heard it's due to a monopoly controlling the import of building supplies so why doesn't the Govt disrupt that set up? They want so many houses built they need to up their stake in it.

The Reg. Master Builders recent conference revealed the construction industry is in crisis due to lack of support and too high risk placed on Builders etc.

cheers,

Donna

Imagine the uproar if the Govt set up a building supply company!

It's been suggested that the Govt take some of the risk for intrastructure projects - in case prices rise and companies go broke.
This was followed by the counter argument that bidders will bid low to get the job then claim costs went up from their extimate - can't win.
Maybe need the MOW back?

[Davo36]

Imagine the uproar if the Govt set up a building supply company!

It's been suggested that the Govt take some of the risk for intrastructure projects - in case prices rise and companies go broke.
This was followed by the counter argument that bidders will bid low to get the job then claim costs went up from their extimate - can't win.
Maybe need the MOW back?

I saw a court transcript online once where Fletchers took someone who was importing cheap plasterboard to court. They got it stopped under 'anti-dumping' laws. I sent it to Anne Gibson at the Herald, she had no interest in it.

I found it startling that they could stop something like this. They argued that they were importing at less than it cost to make etc. Bet we could use it now!

Anyway, the government shouldn't get into making these materials, but they could look at allowing them to be imported more cheaply.

[Davo36]

council fees

Yeah I didn't even want to go there. Don't get me started

[Wayne]

I saw a court transcript online once where Fletchers took someone who was importing cheap plasterboard to court. They got it stopped under 'anti-dumping' laws. I sent it to Anne Gibson at the Herald, she had no interest in it.

I found it startling that they could stop something like this. They argued that they were importing at less than it cost to make etc. Bet we could use it now!

Anyway, the government shouldn't get into making these materials, but they could look at allowing them to be imported more cheaply.

Dumping is usually around selling at less than they sell in their own country.
It isn't something that we want - run the local business out of the market then up the prices.

I do wonder if it is too hard to get some of these materials certified by BRANZ. We don't want inferior materials but there are a lot of manufacturers out there in the world making top notch stuff.
The issue comes down to getting the good to market - one thing bringing them in but quite another getting the distribution to the tradie - a pretty tight (controlled) shop that one.

The govt could buy Carters or someone.

[Meehole]

BRANZ is half the problem, if you have the $$$ you can get your product "appraised" by them. At the Kiwibuild Summit a representative from Ngai Tahu spoke, and said that they struggled to get properties built in Hobsonville Point for under $650k. (house and land).They have resources coming out the wazoo so if anyone could build at a decent rate it would be them. They have been involved in not only building but developing in a number of subdivisions in ChCh and are good operators.

[LifeBroker]

now the dollar is devaluated vs import currencies, building supplies will only get more expensive