latest average building costs

[George]

Hi everyone
I started the other thread about a possible property crash and am still of the mind we are at the top of a cycle and it would be best to wait but all this talk about costs rising could help support current prices. Wondered if anyone had some advice for our situation.

We have seen a 2 bedroom with sleepout with only a retirement village behind the back fence in a nice street in Te Atatu, that another buyer has offered, and had accepted, 280 grand, but have been stalled by their bank because they are borrowing the lot and there is some problem with the council. It's on a crosslease but is private from the one in front and all I may need their permission for in future is a carport.

The reason it 'appears' to be cheap is that the plans differ from what is there as work was done without permit and 2 other buyers were talked out of it by their lawyers.
The agent has a Lim report which the new owner must buy off her and the 'No final status' ruling is one of the things concerning the bank.
As I can do up things myself (with or without permit) none of this may be of concern and as we have a 20% deposit we should have no trouble from our bank.

Would this be a good buy (accepting that we may have to pay council any fees due at some point). This is the best house we have seen out of the 20 looked at but still wonder if waiting for a year or two may be wise.
Went to an auction in Glen Eden last week to a house I painted on its own title and it went for 358k, highest bid 340k, with the 2004 GV 260k.
Based on that the property we are looking at should be about 269k on a 195k 04 valuation, so the 280k offered seems reasonable (I would offer 270 as apart from anything else, it needs new carpet and there is no dining room only a breakfast bar so would have to knock out a wall etc).
Welcome any advice on this
George

[duncan macgregor]

Dont even think about it. When You buy a problem it becomes yours.[V][V] Macdunk

[Hommel]

George - I agree with Macdunk, If the issues were easy and / or cheap to sort out the sellers would have done it and be wanting more for the house. It would need to be alot cheaper to compensate for the risk.

[duncan macgregor]

To further elaborate on buying a problem. The rules have changed from the time the house was built up until today. To make it legal might require almost complete demolition. It might get served with a demolition notice. It would be very hard to on sell it. Unless you had a complete building report on what was required to have a code of compliance cert issued leave it alone. You would find it very hard to get finance in any case.
1,Exterior wall rules completely changed.
2, decks and handrails rules completely changed.
3, Galvanised bolts and brackets changed to stainless steel.
I could carry on but i think you might be getting the picture.
macdunk

[Jess9]

Re your above comment. Good thinking DM.

With leverage being a double edged sword, a buyer certainly must do good homework to prevent coming unstuck

[JBmurc]

quote:Originally posted by duncan macgregor

Anyone who has never built a new house has no idea of what the hassle is like for the builder developer. We have to donate all sorts of land, pay roading levies to the area. We have to have detailed plans, and engineers reports for every little detail. The council will go right out its way to delay the process, and make it as expensive as they can. When you finish all that they will change the rules half way through the project, even when your plans are stamped and approved. Who pays in the end for all this bullsh*t?, Its the little man in the street trying to buy a house. Nz has the most stupid house building rules in any country that i ever built in. Leaky homes is what you get when idiots make the rules nothing will change until there is a massive clean out. I cant ask a building inspector anything, they are not allowed to make a decision when a minor problem arises. It costs another $600 bucks for an engineers report with further delays, trips back and forth standing in line at the council office. Take all the rule changes out for the last thirty years, get it back to that, and start again. macdunk

Know what ya mean Duncan - built four spec homes in Queenstown many sleepless nights stressing about complete council bollocks costs blowouts, rip-off tradies,court appearances all to make the same as the realestate leachs from it all [xx(](main work as the projet manager, designer,landscaper

-Too any One think about building in Queenstown-Be very weary-Every One whats a chunk of your hard earned $$$$$$$ be lucky to build under $2500per-sqm for a standard house

[Steve]

George, I agree with MACDUNK - Don't buy someone elses problem!

[George]

Thanks for the comments everyone.
I forgot to mention that the original ad in the paper said 319k but when we turned up it was for auction and the agent said the price was put in by mistake. So the 280k offered was a lot less because of these problems and the new buyer had spent some time going over things and was happy to make an offer. We will look at things very closely - won't take much to put me off given the state of the market at present. But if it's just 2-3 grand for permits and plans???????
George.

[duncan macgregor]

quote:Originally posted by George

Thanks for the comments everyone.
But if it's just 2-3 grand for permits and plans???????
George.

. You have never done this before have you george.You are not dealing with normal people when you deal with the WAITAKERE COUNCIL[V]. macdunk

[ari]

quote:Galvanised bolts and brackets changed to stainless steel.

Macdunk...don't get me started!
Can't remember where,(somewhere on the Northshore) but I noticed 'Council' recently built walkway and handrails...and not a stainless bolt in sight! Mind you they don't fence their own waterways either.
Also noticed recently house using Linea and they were battening for air gap....I used Linea on 2 houses 2 years ago and this was not a requirement....is this now a requirement?