Any way to avoid absurd NZ building costs in the current market?

[OnTheMove]

$3000 a sqm is just absurd, cost me $750sqm in Qld. And thats with quality materials not Monolithic houses with joinery designed for 15 years life span.

Is there any way to avoid the costs of Kiwi builds. What is the break down that is costing so much? If its project management I have a BSC and certifications in PPI and Prince 2 certs. And whilst Ive done IT PM, Im damn sure I could handle a building site. I also did labouring with my uncle who was a builder back in my Uni years.

If its not project management, what is costing so darn much to build simple homes?

[Davo36]

If its not project management, what is costing so darn much to build simple homes?

Every man and his dog argues about this...

[Bob Kane]

If its not project management, what is costing so darn much to build simple homes?

Compare the cost of raw building materials - NZ vs Aussie.
That's part of the reason.
The other part are compliance costs (Council charges) + health & safety rules.
Why don't you supply a comparison between Aussie and NZ breaking the costs into those three areas?
We can then see what costs are controlled by the government.

[hawkeye]

Labour adds up. Even the apprentice builder is charged at $50 per hour .

[Don't believe the Hype]

labour in NZ is far cheaper than Aus.

[MargVan]

labour in NZ is far cheaper than Aus.

Labour isn't necessarily cheaper if you include productivity. We've used three different builders, all charged for their lunch-hour and travel time. Amortise that over the rate for work time and all of a sudden labour costs are high in NZ.

[Wayne]

Labour isn't necessarily cheaper if you include productivity. We've used three different builders, all charged for their lunch-hour and travel time. Amortise that over the rate for work time and all of a sudden labour costs are high in NZ.

Labour only builders I've had haven't charged for lunch.
You need better builders or be clear and agree what is charged for before hand.
Or get a price for the job.

[elguapo]

Is there any way to avoid the costs of Kiwi builds.

Build in Queensland.

[elguapo]

Compare the cost of raw building materials - NZ vs Aussie.
That's part of the reason.
The other part are compliance costs (Council charges) + health & safety rules.
Why don't you supply a comparison between Aussie and NZ breaking the costs into those three areas?
We can then see what costs are controlled by the government.

Building material costs are about the same for large purchases. Labour is cheaper, but perhaps question as to productivity being the same.

The big difference is compliance and infrastructure costs, as well as tax differences. GST on Aussie building is only 8%.

[MargVan]

Labour only builders I've had haven't charged for lunch.
You need better builders or be clear and agree what is charged for before hand.
Or get a price for the job.

I only found out by checking times they were here vs what they were charging for. Had quite a barney with one of them about it. A bit of cheating they get away with often, I'd say.

[MargVan]

What do you mean by infrastructure costs? How do you get 8% GST in AUS?

[elguapo]

What do you mean by infrastructure costs? How do you get 8% GST in AUS?

Infrastructure growth charges, development contributions and all the others.

The real tax rate in Aussie is quite a lot less than NZ, because of the way the tax gets applied. It's a lot more complex than in NZ.

This makes a reasonable stab at it;

https://www2.deloitte.com/content/dam/Deloitte/nz/Documents/Economics/nz-en-DAE-Fletcher-cost-of-residential-housing-development.pdf

[Frezzinghot]

$3000 a sqm is just absurd, cost me $750sqm in Qld. And thats with quality materials not Monolithic houses with joinery designed for 15 years life span.

Is there any way to avoid the costs of Kiwi builds. What is the break down that is costing so much? If its project management I have a BSC and certifications in PPI and Prince 2 certs. And whilst Ive done IT PM, Im damn sure I could handle a building site. I also did labouring with my uncle who was a builder back in my Uni years.

If its not project management, what is costing so darn much to build simple homes?

Don't build, buy someone else's dream, we build 6 years ago for 1800 a sqm and thought that was expensive, our current home we brought off a buyer who had just had it built, got a bargain.

[Frezzinghot]

Labour adds up. Even the apprentice builder is charged at $50 per hour .

exactly, builders charging like wounded bulls! Have you seen the tanks most of them drive around in now, would put the yanks to shame. Don't see this building boom lasting though as there now looks like an oversupply of new builds in Auckland.

[MargVan]

Thanks, elguapo. Amazing work by deloittes. It appears everyone but them still knows that it is way cheaper to build in Oz than NZ.