latest average building costs

[dinosaur]

R2

I estimate the new Building Act will have added 25% (From July 04)to residential building costs. The official stats are historic, so don't really reflect 'todays' costs.

The increase is made up in several ways.
Architects/Designers are taking twice as long to produce the plans as Councils reqiure extra details, right down to bathroom waterprooofing details. I'm surpised your guy can start as early as next year. The problem being, we don't know what they will ask for next, as it depends on who in the council checks the plans. And thats for a simple brick and tiled house.

This is continued out on the building site. It's taking builders and subcontractors longer to get Code Compliance. I know of one tiler who submitted a producer statements 4 times before the council would accept it, but only after my help. I can quarantee he will be charging more from now on to cover compliance costs, either that or go broke.

Actual example. House company gave an estimate 5 weeks ago to a developer of approx $163,000 to build one of their standard house plans (143m sq), but thought they could probably trim that price. The actual quote came in this week at $189,900. Reality bites!

Thats over a 16% increase. I think they have realised that that not only are the plans costing more, but so to are Building Consents fees, labour costs, materials etc etc. Manufactures having to upgrade their technical informnation, which often involves expensive retesting and product recertification. I can't see it settling down for a few years yet. The next price spike will be caused building industry licensing, starting 2007.

[R2]

Dinosaur, was out of town for a couple of days so just read your post now. Thanks for taking the time to set out the facts so well,I appreciate it.

The message I'm taking from your post is; if you are building, best get it done before the 2007 changes.

[dinosaur]

quote:Originally posted by R2

The message I'm taking from your post is; if you are building, best get it done before the 2007 changes.

Yes, the sooner you start, the cheaper it will be. There will be more costs flowing through before 2007. Architects/Designers, Engineers are the first to experience the changes but as contractors experience the changes, they too will be increasing their charges again.IMHO.
It's just not the 'leaky homes'saga. That was only the trigger which caused extensive audits of Council systems and processes. Councils now have complex audits on their consent processes, then audits on the auditors.

Not that I'm saying these changes were not necessary, although they seem to have gone a bit too far the other way now.

Councils are now taking less responsibility, requiring chartered engineers to oversee most things that are engineer designed, ie., footings now in expansive clay. This is on top of council inspections. Quite costly. Good luck.

BTW:I looked at a house this week that was built 19 years ago. I don't know how the council could have signed it off, even back then. eg.,The stormwater drains had never been put in, yet they were on the plans. Although none of the recent changes implemented will prevent the long term water damage I saw to the particle board flooring from a leaky wing back connection in the wall to the supertub. In fact they might make it worse by trapping that water behind the waterproof membrane, making it even harder to detect early. (Most household Insurance doesn't cover slow long term water leak damage)

[duncan macgregor]

DINOSAUR, I could not agree more the building game is now a complete shambles. The last twenty years a complete nightmare with new products and rule changes at a moments notice. The last rule change that i was involved in i said to the inspector [but thats what the plan shows], when were the rules changed?. I was told the rules changed the previous week, and i should have known. My next silly question was where was it broadcast?. He said it was on their bloody web site to which i replied silly me, i should have known. The only thing i did wrong was do it to plan before your warning about changing the rules. Who pays for all this crap?. I am now out of this stupid building game, I watched it disintregate into the modern day shambles but the only thing that really concerns me is the people making the rules are completely clueless. macdunk

[JBmurc]

also getting out of the building game my costs in queenstown have gone from $1200 in 02 to $1800sqm(very cheap) in 05(same design,materials etc), this doesn't inclued my own costs as project manager.
A mate works for one of the top building firms in Qutown they recently finished a 180sqm 2brm 2 bath art-deco custom design was built on hillside main cost was the engineer costs etc. floor ceiling windows ,other than that basic high quatity fit-out granite bench top.etc it cost the guy a little over $1million plus section cost of round the 250,000 mark ,honestly the house on the market would only sell for round 700,000 because of size and location he was rich so didn,t care my mates buildig firm are flat out 3500-5000sqm on average

not so much the cost of building which I,m sick of its more so the stress ,I do know that if I built the same house again starting tomorrow it would cost at least $200-300per sqm more.

[duncan macgregor]

quote:Originally posted by duncan macgregor

FOR THOSE WITH AN INTEREST THE FIGURES FROM THE JUNE 2005 BUILDING INDUSTRY GUIDE. Free standing single residential guide

STANDARD HOUSE EXECUTIVE HOUSE ARCHITEC DESIGN
AUCKLAND $1281 m2 $1800 $2500 m2

wellington $1186 m2 $1660 m2 $2320 m2

restof nthisland $1155 m2 $1520 m2 $2250 m2

all sth island $1130 m2 $$1600 m2 $2200 m2

The compliance costs are crippling the industry. macdunk

I thought that i might bring up an old post of mine from over a year ago. I dont have the latest figures only know that building compliance costs have increased dramatically since then. I think material is up by about 6pc on top of that in my area. MACDUNK

[tricha]

Anyone know the new average costs, be nice to know what effect inflation is having [?][?][?][?][?]

[duncan macgregor]

quote:Originally posted by tricha

Anyone know the new average costs, be nice to know what effect inflation is having [?][?][?][?][?]

I dont have the figures that are revelant other than the average price of a house went up by 9pc in the last 12 months and 17 pc the year before. macdunk

[whiteheron]

Macdunk

You seem to be very knowlegable on building / property matters
Here is a related question

My wife and I have had for 33 years a large two storied house near the beach down the lower part of the North Island
We brought up our family here and have done considerable improvements in the last 3 or so years --- new kitchen and bathroom,shower,toilet area etc
The house is well maintained, the section has mature trees and the location is very good

I am very reluctant to move but my wife has had a knee replacement and would like to re locate not too far away in a modern single storied house

So much for the background info, now for the question

On balance, do you consider that we would be better off buying a section and building or searching for an appropriate existing property
I tend to favour the latter as sections are a horrendous price and I think that the package of a well built developed property may be the way to go
Selling and buying on the same market also makes sence I think

Duncan, your comments will be greatly appreciated
Thanks so much
And profitable investing

[duncan macgregor]

WHITE HERON, If you are a builder with practical knowledge the do it all yourself is the way to go. If you are not, then in my opinion [others might not agree], You buy what you can see. If you are near the beach open to salt spray, and wind conditions, do yourself a favour. Brick veneer or similar, with a concrete tile roof. The brick veneer is your insurance policy against a leaky home.
The exterior wall will be allowed to breath, and wont suck water up hill. The concrete tile roof, wont rust in the harsh beach conditions. First priority is practical, second priority is you like it. Avoid at any price to forget the practical, because you like it, that is the main reason we have leaky homes. I feel sure you will make all the right decisions good luck with your move. macdunk