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

[Meehole]

It doesn't really matter. They can't build the houses to specification cost effectively. At the Kiwibuild Summit a rep from Ngai Tahu who have been building these homes for a few years now and have good systems and processes in place, said they were struggling to get house and land packages in under $600k.

[Nick G]

Yay, builders going bust it's the new Christchurch recovery where cost overruns out of the builder's control are passed on to the builder, who is operating on razor thin margins.

Yesterday people were ranting on facebook about a couple of graduate doctors buying a Kiwibuild home. Heavens forbid they sold a house to someone who could pay for it despite having six figures of student debt. Break out the pitch forks, doctors are going to stay in New Zealand and not move elsewhere to make more money. It's a betrayal of trust.

[Meehole]

Yep and sadly Nick as someone in the construction industry at present I can confidently tell you that work has dried up both here in Auckland and in Christchurch.
We have no work as just had a job cancel that would take us till end of November. Couple of builders I know have enough until January and then nothing, new builds only planned for 18 months down the track.
Engineers and Council are dropping the ball and holding things up. The proverbial is hitting the fan as I write. People have deep pockets and short arms and confidence in this Govt seems to be a big factor.
We thought of getting a couple of apprentices and as such some Govt work but the margins are too small and we could end up like Penny Homes, see ya later.
I have no problem with a young couple getting an overpriced home that the contractors who built it have yet to be paid. There are plenty of houses in the $650k range where I live, didn't have to go to Papakura to find one.

[richard56]

Yep and sadly Nick as someone in the construction industry at present I can confidently tell you that work has dried up both here in Auckland and in Christchurch.
We have no work as just had a job cancel that would take us till end of November. Couple of builders I know have enough until January and then nothing, new builds only planned for 18 months down the track.
Engineers and Council are dropping the ball and holding things up. The proverbial is hitting the fan as I write. People have deep pockets and short arms and confidence in this Govt seems to be a big factor.
We thought of getting a couple of apprentices and as such some Govt work but the margins are too small and we could end up like Penny Homes, see ya later.
I have no problem with a young couple getting an overpriced home that the contractors who built it have yet to be paid. There are plenty of houses in the $650k range where I live, didn't have to go to Papakura to find one.

Hi
I wish some of these Builders you speak of in Christchurch...the ones that have no work...would answer my emails.
I have contacted over 25 firms and private builders to try and get prices on a Quick Build Kitset house build.
Even had Master Builders and Certified Builders send me contact details of builders.
Only three have been interested..one just gave me what I consider a F..K Off price.
Another just want me to buy his kitset and the third might be interested but has not come back with any estimates.
The rest either didn't reply at all or just said outright no.
I can't seem to get anywhere with this build and it looks like not happening at all.
But if I was just about anywhere else in NZ Quick Build Homes would sell me the kitset and build it for me no problems.
But they dont have builders they can use it CHCH.
Doing my head in.
Thanks
Richard

[Meehole]

Richard, we went down to Christchurch from Auckland 2 weeks ago to look at about earthquake repair jobs that have not been fixed because of a lack of skills and manpower. If we get the work we will ship our staff and gear down which will be included in the cost of the job.
Regarding Quick Build Homes, are they in Bulls? If so I have checked over their website to see who owns it, website under About Us says "Quick Build HOmes is a diverse group of visionaries" .....but no names??? Plus if its them they use SIP panels and the trims are aluminium not timber and they claim that an LBP doesn't have to be used to build the house. Not sure the local Council would agree with that??
How much was the F..K off price you got from a local builder?

[richard56]

Hi
Yes that is them in Bulls.
Others on this forum have built these houses before so I was quite confident that we could make it happen if they built it for me.
But they say they dont have builders that they can trust to build to there required quality.

Anyway how about a number for installing 66 sq m of carpet and underlay...carpet provided just underlay and instal...$3000 !!!
Had a carpet installer estimate $800 for instal and $600 for underlay.

PRICE all electrical work including connection to mains $15000.....You would have to look on the QBH site to see what work would be needed.

PRICE all plumbing work including connection of water and wastewater $15000..You would have to look on the QBH site to see what work would be needed.

Full Assemble. Estimate round 35-50k for carpentry and project management....If QBH were building their kit for me they charge $25000 and that's GST inc

If I was based in CHCH then I would get a labour only LBP builder in and run it myself but I am in AK.

If my trade qualified mate had been able to get his LBP...long bitter story that one...the I would shout him a 6 week holiday in CHC and give him $25,000 to build it.

All I wanted to do was get an old crappy bach type house knocked down and a cheap and cheerful 3 bedy put up...without me having to nursemaid the project along.

Don't look like that is going to happen....pity my poor tenants who will not be getting a nice new home anytime soon.

Thanks
Richard

[Meehole]

Oh well maybe as builders run out of work up here there might be a reason for them to relocate back down South or do fly in fly out of ChCh to get work. Having said that I just rang a Kitset company on the West Coast and asked the cost of putting one of theirs together. He said double the kitset price and that would cover all the trades, gib stopper, painter, plumber etc. Maybe you should try them as he said they have builders for work in ChCh, and ironically has a client on the North Shore struggling to get a builder here. Coast to Coast Homes (Kitset), their specs are way nicer than Quick Build too.

[AlFa]

...Quick Build Kitset

Just a warning. I had an opportunity to see their houses and speak with "the boss" in Bulls. It became evident they are bunch of clowns who couldn't care less about customer. Spoke with couple of designers and they confirmed this attitude is pretty consistent for all customers they did drafting for.
And do search director's name on LBP website - he had been fined by them several times for shitty work

[richard56]

Hi
Thanks AlFa.
I was a bit put off by their attitude as far as ..we will not give out plans until you give us a deposit.
But I couldn't get builders to price without plans so that really put things on hold.
Have looked at Coast to Coast Homes and they are looking promising.
Thanks
Richard

[MarkD]

In my opinion, it is very hard to bring it down now because land price is now too high. Maybe bring more jobs to satellite town could help- such as build a mega shopping centre/super market to boost the job, people can enjoy the reasonable house price in satellite town