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| Thread ID: 80350 | 2007-06-20 02:11:00 | Cost of House Building in NZ | Winston001 (3612) | PC World Chat |
| Post ID | Timestamp | Content | User | ||
| 560832 | 2007-06-21 13:33:00 | I heartily agree on remarks concerning the avarice of Real Estate Agents, it is demeaning to real professions to call Real Estate Salespersons professionals. To quote my Auckland Solicitor " If I showed the same disregard for the financial welfare of my clients as many real estate salesmen do, not only would I be debarred, but also possibly jailed. There commissions are too high, they frequently forget who is paying them and run with the foxes and the hounds" However they do not necessarily hype up property prices, except for possibly falsely raising a vendors expectations if the agent is desperate for a listing. The stepped commission structure can work against a vendor - once the property value breaks $300K, the commission drops to 2.5% on sale price over that limit - The selling agent gets less than 50% of the total commission - a quick sale with minimal effort can be very beneficial for the agent - for example a quick easy sale at $50K less than the optimal price means the vendor looses $50K, and the agent drops about $500 in commission but doesn't have to do any real work to get a quick easy sale - and then onto the next one. Real estate agents merely feed on the property market frenzy, they don't drive it. They are meant to be working for the vendor but all too many are actually only working for their own benefit, and that is without taking into account some of the unscrupulous and unethical practices that occur inthe industry. I think the media have hyped up the market a lot. Not to mention all the TV programs about buying an old house, and doing it up for a tidy profit. People see those programs and believe they can do the same thing, so you see a lot of badly 'reburbished' houses on the market for very high prices. Unfortionately people do buy these refurbished houses, because they can't see the flaws. I had a friend who purchased one, and about a year after buying it , all the paint on the exterior of the house started pealing off. This was becuase the seller didn't use primer. When the new independent real estate authority is set up, we should see a change in agents and the way they behave. |
robbyp (2751) | ||
| 560833 | 2007-06-21 22:08:00 | Hi Guys It seems from reading all these threads that it is really the cost of land that is driving up house prices. This makes sense to me, as years ago it was commonly accepted that you either built your own home (to get what you want) or bought an existing home (to save all the hassles). So the two methods were about the same final cost. Is this the case now. I means if house prices have doubled in the last 5 years which they seem to have done, then has the cost of building one doubled ? If it has, then we need to find out if building costs have doubled or have land prices doubled ? or both ? It seems to me that the main dirver of high house prices is the cost of land. And this is probably a local council driven thing, RMA and all other compliance costs. Saving a few hundred dollars on legal fees is hardly going to make a dent ! Anyone got any figures on this ? Regards Digby |
Digby (677) | ||
| 560834 | 2007-06-21 22:20:00 | It is without doubt that land prices are the major driving force behind escalating housing costs, In Brisbane building costs have more or less just remained in step with inflation, possibly they have run a bit higher than inflation but not by much. The actual cost of building in NZ is higher than it should be due to the cosy monopolies in the building materials market, in Australia we have a much more competitive and larger market, while in NZ it is in the hands a just a few large companies. It is farcical that in Brisbane we can purchase NZ timber products at better prices than they are available on the home market. |
KenESmith (6287) | ||
| 560835 | 2007-06-21 23:00:00 | It is farcical that in Brisbane we can purchase NZ timber products at better prices than they are available on the home market.Tell me about it! We bought a dining room suite not too long ago, made from New Zealand timber, but crafted and assembled in... China! Then imported back here! :confused: | Greg (193) | ||
| 560836 | 2007-06-22 01:50:00 | Tell me about it! We bought a dining room suite not too long ago, made from New Zealand timber, but crafted and assembled in... China! Then imported back here! :confused: How much did that cost in terms of Carbon miles on the environment. The NZ government should make that sort of thing illegal, if they are serious about the kyoto agreement. I personally wouldn't purchase furniture made in china anyway. |
robbyp (2751) | ||
| 560837 | 2007-06-22 03:49:00 | Do your own dentistry too? Diagnose that uncomfortable pain in your abdomen? Good luck . . . . . . Oooh . Well, yes, I diagnose pains in my abdomen on occasion . Usually means I've eaten at some filthy food place . Don't be touchy Winston, your profession gets plenty of work, try being a PC Tech when everyone rings their mothers neighbours brotherinlaws kid instead . |
pctek (84) | ||
| 560838 | 2007-06-22 05:26:00 | I do understand. Unfortunately trying to DIY and save costs on the contractual and title issues of buying or selling a house is to be pennywise and pound foolish. ......I can't disagree with that advice Winston, yet I did just that some years ago when I sold a section to my son. In this case there were no contractual or title risks to deal with (or was I just naive?), and I did the whole transfer without any help from a solicitor. My only costs were the various fees. I was surprised at how many steps there were in the process...... you guys do a fair bit for your fee. The second surprise was just how helpful everyone was at the various government and local body departments in helping me through each step. |
brig (1359) | ||
| 560839 | 2007-06-22 06:47:00 | Tell me about it! We bought a dining room suite not too long ago, made from New Zealand timber, but crafted and assembled in... China! Then imported back here! :confused: That is not farcical, its plain economics. Chinese manufactures pay low wages, don't have any local body compliance costs etc etc. There are several New Zealand owned factories in Vietnam doing the same thing ! It is a shame, but it is a world wide trend. Factories in low cost countries such as Mexico and Chile are closing due to Chinese imports ! What is not farcical is the fact that they can buy NZ sourced timber in Australia cheaper than here. That is probably called dumping and verges on the illegal. Regards Digby |
Digby (677) | ||
| 560840 | 2007-06-22 22:28:00 | Here you go: www.nzherald.co.nz Some ideas on why it costs so much. |
pctek (84) | ||
| 560841 | 2007-06-23 03:16:00 | Oooh. .....try being a PC Tech when everyone rings their mothers neighbours brotherinlaws kid instead. Good point. :D Well said. :thumbs: |
Winston001 (3612) | ||
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