- Lorraine Burns
The biggest mistake you can make when buying a house in New Zealand
This is the first of a series of posts which expose the biggest mistakes you can make when buying residential property in New Zealand.
Buying a home with water tightness issues.
As many as 42,000 homes in New Zealand built between 1994 and 2005 have water tightness issues. Fixing them has driven some homeowners to bankruptcy as most insurance policies do not cover gradual damage.
A leaky building is one where moisture gets in between the cladding on the outside of the building and the inside walls. When the water cannot drain out because of a lack of room between the cladding and the framework, the water becomes trapped. The walls can then rot and dangerous fungus can grow, causing structural problems.
Those living in leaky homes have reported many adverse health effects from breathing in mould. These include allergies, worsening of respiratory problems, eye and skin irritations.
Houses with a high risk of leaking are those built in the Mediterranean style, without eaves and with flat roofs. They have textured exterior wall surfaces made out of plaster over polystyrene or fibre-cement sheet.
In 1995 regulations changed to allow untreated timber to be used in housing construction. The untreated timber had no resistance to rot and when combined with poor design lead to decay being found in buildings within a year of construction.
Other styles of buildings can also have weather-tightness issues when good building practices have not been followed or when the materials used are defective. Often there are no obvious signs that the home is or will become a leaky building.
It is very hard and expensive to fix a leaky building that has been poorly designed or built. A government report on the problem estimated that the average leaky homeowner who needs a full reclad spends $300,000 to repair the house, plus a further $110,000 on non-repair costs, including legal fees.
Remediation work does not totally eliminate the negative stigma attached to these properties and this affects the resale value and the time it takes to sell the property.
Under a standard agreement for sale and purchase, the seller does not provide a guarantee as to the structural integrity of the property. This means it is up to the buyer to check that there are no building issues with the property and that it is structurally sound.
Sometimes the seller will provide a building report to prospective buyers. While this saves you money, it is a good idea to obtain your own independent builders report because you cannot legally rely on the report from the seller. If there was an omission or some form of negligence relating to the report, it could be very difficult and expensive to bring a claim against the builder or company that prepared the report because you did not commission the report.
The leaky home crisis appears far from over as new cases continue emerging and affected owners still battle for solutions. Following are links to a few high profile cases.
When you engage Exclusive Buyers Agency we will help you avoid leaky buildings by:
not selecting high risk homes for your consideration
checking that the property has not been subject to a Weathertight Homes Tribunal claim
reading all of the body corporate minutes (where it is a unit title)
researching the developer and builder and previous developments completed
visiting residents at previous developments to find out what problems they have had and whether there have been any quality or weather tightness issues
preparing a comprehensive report on the property which includes information on similar properties recently sold nearby and similar properties currently for sale in the area
arranging and reviewing reports prepared by experienced and professional building inspection companies
ensuring that toxicology and moisture testing is undertaken
researching the neighbourhood and identify how other developments and proposed construction could impact on the property you are considering
talking to the neighbours to identify problems such as traffic congestion, parking, noise
reviewing the LIM report and identify problems with the land such as erosion, subsidence and flooding
Reviewing the Council property file
Exclusive Buyers Agency will never try to sell you a home. We provide you with all the information (good and bad) to enable you to make an informed buying decision.
When you need experts, who are on your side and committed to helping you get what you want call me directly on +64 21 468 828.
Discover the 2nd biggest mistake you can make when buying a house in New Zealand.
Lorraine Burns
Licensed Buyers Agent (REAA 2008)
Managing Director & Buyers Agent
Exclusive Buyers Agency Ltd
Mobile +64 21 468828
DISCLAIMER: The information contained is not intended to form professional legal advice or legal opinion on any particular matter. The opinions expressed in the material are not necessarily those of IFPNZ Ltd (Licensed REAA 2008). IFPNZ Ltd and Exclusive Buyers Agency Ltd make no representation or warranty as to the accuracy or completeness of the material. Exclusive Buyers Agency Ltd & IFPNZ Ltd accepts no liability for any loss, damage or consequence, resulting directly or indirectly from the use of the material.