Avoiding pitfalls when buying a section could save you thousands

Just a bit of research and planning when buying a section can save you literally thousands when it comes to building your home. Often a lower priced section does not mean that you will save money, and it may require additional engineering and foundation work that adds tens of thousands to your final bill. 

There are plenty of other traps too, like the one the Todd family fell into in the case study below: 

CASE STUDY: “The Todd Family”

The Todd family bought a section in a new subdivision ‘off the plan’. When the fences were put up, following the final boundaries, the shape of the site had significant differences from the original site on paper. As a consequence, the Todds had to get permission from the neighbour to build their new home – whose plans were well under way – closer to the new  boundary.

Homebuild has developed a Tip Sheet to Buying a Section that covers off some of the fundamentals that any prospective section buyer should consider - and it's yours FREE to download, simply click the link below.

Visit our Website to Download Tipsheet on Buying a Section

Rising Timber Prices will add to new home prices

There isn't going to be a better time to build.

Global pressure on timber supply  means that timber prices are set to climb by as much as 20%. Demand is especially high from Asia - China currently take 50% of our exported timber - and production and export infrastructure are already working at capacity. Domestic timber stocks are at a record low.

The expected increased building activity from the rebuild in Christchurch is set to put pressure on domestic timber prices. Added to this are other other local pressures including an under supply of housing in Auckland, and construction following the settlement of the leaky home deal. Timber prices have already risen 7% in recent months according to Placemakers Chief Executive John Beveridge.

Timber accounts for about  10 per cent of the cost of a medium sized, new single-storey house. A 20 per cent increase in the price of timber could add $6000 to the cost of a new home.

With interest rates low, and house prices set to  rise, there isn't going to be a better time to build.

Click here to listen to a podcast from Radio New Zealand for more information

How can I trust my builder?

Building a new home is a complicated process. But it can - and should - be fun too.

There are hundreds (even thousands) of detailed decisions to make - any of which can have an impact on the final price or timeframe of a new house. There are many tradespeople to co-ordinate, many suppliers to deal with, and of course a maze of compliance issues to negotiate with local authorities.

That's why many people choose Homebuild Homes - to deal with all the difficult stuff, and ensuring they get the home they want within their budget.

But there is another key component to building - trust. When you engage someone to build what is probably your biggest asset, you need to have confidence in them. The confidence that they will deliver the home you want, on budget and within an acceptable timeframe. The confidence that the house they build will stand the test of time. How can you develop this trust?

Here are a few tips to help you:

1. Can you work with them? Your initial discussions with your building company are your opportunity to assess them - as a company, and as individuals. Are they approachable, open and easy to work with? Do they answer questions directly and honestly? Do they tell you what you need to hear, or what they think you want to hear? (The difference could cost you thousands). Spend time talking and listening to your builder -and trust your instincts. 

2. What do past clients have to say? Testimonials are a great source of information for you. Of course no one is going to give you testimonials from an unhappy client, but happy clients are not necessarily those for whom the process was all smooth sailing, but those for whom the process worked, and the finished home met or exceeded their expectations.

3. Understand that problems will arise - it's the solution that counts. Even when you build with an experienced builder, expect problems to arise. It might be the section, it might be the weather, it might be the council, it might be a faulty product supplied. What is important is that how these are dealt with by the builder and how they communicate with you - not just the problem, but the solution. Solutions are part of what you pay for. 

4. Licensed Building Practitioners. In order to stem the tide of faulty work, and leaky homes, the Department of Building and Housing has developed The Licensed Building Practitioner certification scheme. This provides you with greater building confidence - and for all restricted work (such as building a new house), we think it is essential. From March 2012, it will be a legal requirement.

Licensed Building Practitioner. LBP # 103806