a-buyers-choice-home-inspections

The Reserve Bank Of New Zealand

Fri, 16 Feb 2024 04:49:58 GMT

The Reserve Bank of New Zealand

The Reserve Bank of New Zealand (RBNZ) plays the biggest role in dictating mortgage rates and bank lending rules, hence the state of the housing market.

The Reserve Bank is fully owned by the New Zealand government but has statutory independence. The RBNZ's primary purpose is to maintain inflation in the 1-3% range and protect the New Zealand economy.

High inflation means rising prices and financial pain for the country. So, the RBNZ uses a range of “tools” to keep inflation down.

The Official Cash Rate (OCR) is the major tool used. The Reserve Bank sets the OCR and reviews it every 2 or so months.

The OCR then regulates the rate at which trading banks such as ASB, BNZ, ANZ, etc, pay interest on deposits and lending rates to borrowers.

Currently, the OCR is at 5.5%, so mortgage rates are above this figure. Other “tools” the RBNZ can use include Loan to Value Ratio (LVR).

For example, currently, an investor buying a rental property cannot exceed LVR of 35%, meaning that they need a deposit of at least 35% of the purchase price.

Another “tool” is Debt to Income Ratio (DTI). For example, the RBNZ may bring in a rule that prevents banks from lending a borrower more than 6 times their annual income for a mortgage.

By these and other measures, the Reserve Bank has considerable influence on the housing market. There are many other factors such as supply and demand, net migration, and so on but The Reserve Bank of New Zealand is the dominating influence.

Two changes being made by the new government will have a positive effect on the market and encourage investors to buy rental property.

One of these is the lowering of the 10-year bright line test to 2 years (no capital gains tax payable after 2 years of ownership instead of 10 years).

The second is the reintroduction of mortgage interest rate deductibility for tax purposes. Most banks are predicting a fall in mortgage interest rates by June this year!

Latest Real Estate Market Update

Fri, 16 Feb 2024 00:04:33 GMT

Latest Real Estate Market Update

December 2023 showed renewed momentum in the market with increased sales activity, rising prices, and faster sales.

Sales numbers were up 14.1% and the number of properties for sale was down 4.6% across New Zealand.

For Auckland, the number of properties for sale was down 2.6%.

The Real Estate Institute of New Zealand is predicting a rising market throughout 2024.

Selling a Home

Sun, 21 Jan 2024 23:28:09 GMT

Selling a Home

To obtain the best price in the shortest time on the market is your objective when selling a home. A home may be in three distinct situations when on the market:

1. Owner-occupied
2. Tenanted
3. Vacant

1. Owner-occupied
In this situation, the seller has much more control than with a tenanted property. They can ensure the property is in top condition for showings - dishes washed and put away, beds properly made, etc. This is often the best position of the three.

2. Tenanted
The tenant has rights, and these can seriously limit the day/time and number of showings. This may mean missing some buyers. Tenants often don’t want to vacate and may therefore try to impede showings by being very inflexible.

Often tenant's furniture is not of as high a standard as an owner occupier may have and this does not help the marketing. This is certainly the hardest position in which to market a property.

3. Vacant
An empty house is often better than a tenanted one. An empty house however looks “barren”. That is why new house builders have them tastefully furnished to give them the wow factor.

Although it can cost up to a few thousand dollars to have a vacant property staged, it is usually a good investment. The result can be a quicker sale and a better price. A staged, vacant property is the best position of the three to be in.

Re-locatable Houses

Tue, 21 Nov 2023 21:43:55 GMT

Re-locatable Houses

Is it wise to buy a re-locatable house? There are advantages and disadvantages to doing this.

Advantages:

If a house has been re-located to another site, you can usually purchase it at a significantly lower price than the equivalent size existing or new home.
The home is often older e.g. 1960’s or earlier and if so, is built from quality materials - native timbers for example.
The buyer can select a “character home” - villa, bungalow, etc.
The home is already built unlike buying new off plans or before competition.

Several things have to be complied with to relocate a house.

The house must be treated for borer before it can be moved.
New foundations (usually piles) must be installed.
Roof & underfloor insulation must be up to date with the latest standards.
New drainage to be installed for stormwater, wastewater, and new water pipes.
The site of the house will be less prone to flooding or slips because of council caution over these issues now.
The electrical system will often have to be replaced.

Disadvantages:

The moving process usually opens up joints and can cause unseen damage (e.g. pipework behind linings).

A home inspection from an A Buyer’s Choice Home Inspections inspector can be invaluable here!

The house may have been moved in 2 parts and correct alignment may be difficult, you may see the join.
It’s mostly older homes that are moved so a lot of DYI, deferred maintenance, and reinstalment may be required.
The maintenance and reinstalment costs are hard to price, and contractors are difficult to get. The overall reinstalment cost may be considerable.

On balance, however, especially for the DIY / painter, decorator type buyer the overall result can be a great home at a cheaper price.

How will the 2023 Election Affect House Prices?

Sat, 16 Sep 2023 04:15:00 GMT

How will the 2023 Election Affect House Prices?

Only one (2014) out of the past 7 general elections had any effect on the property market. Labour would have introduced a capital tax if elected but John Key won for National and had promised no capital gains tax.

Other bigger factors such as interest rates, LVR (loan to value ratio), and net migration figures normally have more effect than a general election. 2023 may however be another year like 2014.

If National leads a government, there will be no capital gains tax – Labour won’t say whether they will or won’t introduce it, but they have long wanted to. National will reduce the Bright Line Test from 10 years back down to 2 years and so encourage more rental property purchases.

National will re-introduce interest deductibility as an expense for landlords. There are big differences. National policies will encourage landlord investment in rental properties, meaning more rentals available, leading to lower rents.

Combined they will help reduce inflation. On the other hand, Labour policy of borrowing, tax, and spending will not only drive up the cost of living but incentivize the productive workforce of New Zealand to seek better futures overseas.

Teachers, Nurses, Doctors, Police, in fact almost all professionals and trades have better pay and conditions beckoning overseas. The gaps have widened over the past 6 years.

Unless there is a significant change to quote David Seymour New Zealand is in danger of becoming a big Fiji. As the election draws closer there will likely be little effect on first-home buyers or owner-occupiers.

Sizing up or down for example. Investor buyers may however wait and see who wins and whether it is worth becoming a landlord at all.

If capital gains tax is introduced and the mortgage is not treated as an expense for tax purposes. October 2023 general election may define New Zealand for a generation.

How to Lower Your Water Bill

Wed, 02 Aug 2023 03:05:47 GMT

How to Lower Your Water Bill

The average family of four in New Zealand uses almost 83,000 L of water every year. Most people in New Zealand have metered water where consumption charges apply. These can add up to a significant expense over a year and prices continue to rise.

Of that average yearly consumption, 31,000 L = toilet, 25,000 L = bathing and hygiene, 13,000 = laundry, and 14,000 L for watering and other uses. To reduce water consumption there are a whole range of steps that can be taken:

1. Check for leaks – stop dripping taps and stop constantly running toilet systems. Turn off all water outlets, read the water meter, and check again in a couple of hours – if the reading is higher, you have a leak.

2. Check your water flow rate – the water runs very fast when any tap etc. is turned on. Install a flow restrictor to reduce the flow rate.

3. Replace old inefficient appliances such as dishwashers and washing machines with more water-efficient models.

4. Stop rinsing dishes before putting them into the dishwasher. Modern appliances will pre-rinse and clean anyway.

5. Update single flush toilets with dual flush or put a brick/half brick or similar in the single flush cistern.

6. Don’t wash small loads in the washing machine.

7. Recycle greywater (water from the shower, bath, and perhaps washing machine). Greywater can be used to flush toilets and water gardens (not veggie gardens). Several recycling systems are available in New Zealand, and the savings can repay the cost in a few years.

8. Collect and use rainwater. To water gardens (veggie gardens), flush toilets, wash the car, and for all household uses by installing a water pump. By installing a good-sized tank eg 48,000 L a typical household can be largely free from metered water use.

Both 7 and 8 require capital investment but the cost will be repaid by the savings. The price of water from the utilities company is set to rise rapidly since a lot of pipework needs upgrading throughout the country and the cost will fall on consumers.

New Zealand Inflation and House Prices

Thu, 18 May 2023 02:30:32 GMT

New Zealand Inflation and House Prices

Currently in April 2023 we have a New Zealand inflation rate of 6.7% which is slowly coming down. In December the rate was 7.2%. This is a figure covering all sections of the economy.

The construction sector has for the past year or more suffered a much higher rate of inflation than the general economy. Labour shortages and material supply problems have resulted in longer build times and higher inflation in the construction sector.

Recent CoreLogic figures which monitor the price to build a standard 1 level 200m2 brick and tile house show current inflation at 10.4%. This is falling too as it was over 17.0% this time last year.

Just as these inflation costs start to slow down there are further rising costs for building coming into effect this year. Starting in May (interim step) with full implementation in November this year.

These are changes to section HI of the New Zealand Building Code. The changes increase the level of insulation needed for doors, windows, walls, floors and roofs.

Windows and doors (all have to be double glazed) will require higher R values (thermal resistance). This means using more thermally resistant glass and window frames and replacing the air gap between the double glazing with gas to improve performance.

These changes will of course add to the cost of building. Given these increases in the cost of building it is obvious that the current falling house prices will soon come to an end.

Existing houses will become more attractive pricewise than new builds. This will result in falling demand for new builds and construction will slow down. It is in fact already happening. The upwards trend of the house price cycle, where prices are rising will then follow.

Houses Vs Apartments

Tue, 04 Apr 2023 05:20:06 GMT

Houses Vs Apartments

Real Estate (a house or apartment) has two components - land and improvements. Improvements are building, driveways, fences, etc. Land appreciates in value. Improvements depreciate in value unless sufficient money is spent on maintenance.

Over time real estate appreciates in value so land increases faster than improvements depreciate. Apartments have less land than houses hence they don’t appreciate as fast as houses.

Whether a buyer chooses an apartment or a house to purchase a lot of factors need to be considered and how it will meet their needs. Space (floor area), number of bedrooms, bathrooms, garaging, outdoor living and so on.

Sometimes front of mind but often more in the background such a buyer will have capital appreciation as a consideration. So how do Apartments preform financially compared to Houses?

Let’s see: Houses Vs Apartments - financial performance. The most accurate data is the Real Estate Institute of New Zealand (REINZ) house price index. The index groups together houses and townhouses but separates out apartments.

Here are the findings between 1992 - 2021: Auckland : Apartments did not increase in value as quickly as houses. Wellington : It is the same in Wellington as Auckland. Christchurch : And it is the same as Auckland and Wellington, apartments did not increase as quickly as houses.

So, the re-sale value of apartments is not as good as houses. What about ease of selling? In all cities - Auckland, Wellington and
Christchurch it took longer to sell an apartment than a house.

This was the case from 1992 through to 2021 and is still the case today. Apartments may be cheaper to buy but that “saving” comes at a price!

Recent Building Code Changes in New Zealand

Sun, 12 Mar 2023 21:32:07 GMT

Recent Building Code Changes in New Zealand

Energy efficiency has been the main feature of building code regulation changes. The Ministry of Business, Innovations and Employment’s (MBIE) new regulations come into effect in May 2023.

All new building work in homes - including additions and alterations as well as new builds are affected. The measures see increased insulation needed for underfloor, walls, roofs, and windows.

For residential buildings the energy savings to heat a house will be reduced by 40% on the previous standard. For commercial buildings the figure is 23% compared to the previous standard.

By November 2023 windows in new houses will be required to meet the new increased performance levels throughout the country. Double
glazing alone is no longer sufficient.

There must be a gas between the glass (not just air) and the glass type has to be more thermally insulating than normal window glass. Homes will have lower heating / cooling costs as a result but of course there will be increased building and renovation costs.

Should New Builds Have a Home Inspection?

zoe.wyatt@abuyerschoice.com (Zoe Wyatt) — Thu, 08 Dec 2022 23:02:20 GMT

Should New Builds Have a Home Inspection?

We are living in a time of shortages. There is a shortage of building materials and a shortage of trades people.

These shortages lead to increasing prices and longer construction times.

What is also happening is that substitute materials are replacing the specified materials on the building plan.

Some replacement materials may be fine but others may be inferior and cause quality issues.

The shortage of tradespeople can lead to poor workmanship when less skilled workers are used.

Again this can lead to quality issues. In some cases lack of knowledge by unskilled workers can even cause dangerous situations.

Not just builders but also electricians, plumbers, gibstoppers, painters and other trades are in short supply.

With a newly built home costing $100,000’s it makes sense to have a home inspection, costing a few hundred dollars.

A report from A Buyer’s Choice Home Inspections could save you thousands of dollars by detecting poor quality work or unsuitable
materials.

Climate Change and New Zealand Housing

Fri, 16 Sep 2022 02:38:55 GMT

Climate Change and New Zealand Housing

Climate change is bringing hotter summers and colder, wetter winters. More floods, slips, coastal erosion, large scale fires, high winds and
tornadoes are all part of what we see in New Zealand due to climate change.

What has been built and where we have built it in many cases will prove to be a bad decision. What, where and how we build in the future must factor in the changing climate.

Heavy rain causing land slips already destroys homes. Slip prevention of existing houses will certainly not save them all. What was ok to build on, hills, plains and slopes in the past will no longer be possible.

Floods are becoming more common place and keeping water out of low lying dwellings is and will become more and more difficult and more costly. There are an estimated 16,000 flood prone houses in Auckland alone.

Spare a thought for the people of Westport, flooded in 2021 and again in 2022. The house at the beach may eventually have to be the house set back from the beach.

Many existing beach front properties will end up on the beach and swept away as sea levels rise. Some properties will not be insurable in the future.

Summers are leading to bush fires and houses in the fire path often can’t be saved. More fire resistant construction may help in a small way.

A 2019 study identified that 15,000 people live at the mean high tide mark, 71,000 within 1 meter and 240,000 within the 2 meter mark in New Zealand.

Apart from weather damage to property climate change will effect the type of construction required. Better insulation will be required to heat / cool property.

More wind resistant (bracing) will be needed. More temperature resistant materials will be used. Ashphat driveways and paths may no longer stand the heat and so on.

Climate change will bring building change and the cost of construction will as a result increase while the life expectancy of the property may be shorter than we are used to. In the words of Bob Dylan - “The times they are A-Changin!”.

James Hardie Leaky Homes - Class Actions

Wed, 13 Jul 2022 23:46:50 GMT

James Hardie Leaky Homes - Class Actions

One of the major types of cladding used to construct monolithic homes was the Australian Companies Harditex System. The system comprised of a fibre cement sheet which is fixed to the exterior framing of a building.

The joins between the sheets are sealed using tape and sealant. The finished effect is meant to hide all the joints so that a wall looks “seamless” or monolithic.

Because of the many leaky buildings that have occurred in New Zealand monolithic has become something of a dirty word. Remember not all monolithic homes leak and not all homes that leak are monolithic.

That said the monolithic Harditex cladding system has seen many of its users end up with leaky buildings.

So many Harditex clad buildings have ended up as leaky homes that owners sued James Hardie in a class action started in 2015.

Damages of $220 million was sought by 376 building owners. Because of the high costs of litigation and the time to prepare such a major case it took until this year (6 years) to get the case to the high court in Auckland.

The litigation was funded by Harbour litigation Funding - a London based investor. The case stated in May 2021 and was scheduled to last 15 weeks.

The case ended at the beginning of August (halfway through) with an out of court settlement. As part of the settlement James Hardie would RECEIVE a payment of $1.25M from Harbour litigation Funding. The homeowners get nothing.

The funders became more and more unsure of their chances of success as very bad building practices were showing in many of the properties concerned so they pulled the funding.

So, the poor property owners without money to continue the case got nothing - except ownership of a leaky building. There were many factors that lead to the leaky building epidemic. A lot of this happened at the same time, they included:

Monolithic style become popular
Some deregulation of the building industry
Use of untreated timber
Use of direct fix (ie no cavity)
End of the building apprenticeship scheme
Architectural designs with high weathertightness risks such as no eaves, low pitch roofs, internal gutters, etc.

It is easy to see how hard it is to prove that among so many changes it was Harditex to blame. A second-class action against James Hardie by nearly 150 homeowners has just been dismissed in the Wellington high court.

The trial lasted 16 weeks. In this case the homeowners funded the action and may have to pay James Hardie’s legal costs as well as their own. A third-class action called the Waitakere litigation is set to be heard in 2023.

It is now unlikely to proceed. As a footnote James Hardie discontinued this product the Harditex system this month on the 01.08.2021.

Should I sell my Rental?

Wed, 13 Jul 2022 23:46:49 GMT

Should I sell my Rental?

Which landlord 1 year ago thought their rental property would (despite Covid 19) increase in value by such a massive amount? This was while rents were also increasing due to shortage of rentals.

It was a great time to be a landlord and if you had invested in a rental property to sell for your retirement years is now a good time to sell?

The economic landscape for landlords in New Zealand is changing rapidly. In March 2021 the current government introduced a 10-year time period (except for new builds) of ownership of rental property - the so called Bright - Line Test. This is a capital gains tax.

Also introduced this year was the removal of the right (reducing over a 3-year time period until 0 deductible) to deduct interest (mortgage) payments as a tax deduction. Every other industry or business in NZ is allowed interest payment tax deductions.

Now we can certainly predict mortgage interest rates (not tax deductible now remember) are going to go up – perhaps to around double what they were at their low point of 2.19%.

From 1st July this year all landlords (except government own houses) must comply with the healthy homes regulations – heating, ventilation, insulation, moisture, ingress and drainage and draft exclusion.

Then there is the change to the Residential Tenancies Act which the government introduced this year which certainly weakens the landlords rights in law.

So, with all these changes / challenges should I sell? The correct answer is NO unless you must or think you may have to or simple want to cash up and spend your hard-earned investment. Why is the answer NO? Because….

Despite all the above changes property is still the best possible investment.
If you keep your rental for over 10 years, there is no capital gain tax to pay.
Capital gains will continue with property - probably 5 - 10 % this year and keep in mind the average price increase in NZ for the past 50 years has been 9.7%.
You will have a rental income, and this is likely to keep increasing for some years to come until the housing shortage is fixed.
The government is incapable of providing the rental houses needed so landlords provide a valuable social service.
If you think of selling to invest in something else, then in what? Shares or managed funds = high risk (try asking a bank to lend you money to invest in shares or managed funds)! Put the money in the bank? Even with increases in term deposit rates the return after tax and inflation (its coming soon) your investment will go backwards.

To help you to decide why not do what the wise Benjamin Franklin (USA past president) always did when making a decision of importance. He wrote down the reasons for and against. I have added a few (not all) reasons for and against.

Windows & Doors

Wed, 13 Jul 2022 23:46:48 GMT

Windows & Doors

The purpose of a house is to provide a dry space in which to live. A lot of effort goes into waterproofing and insulating a home. The areas where dampness or even water are most likely to cause problems is around

windows and doors.

Heat can most easily escape around windows and doors, and these are hard to insulate. Careful waterproofing and draft sealing by means of waterproof films, tapes and sealants around windows and doors is now a significant part of the building code.

Types of Windows and Doors

In New Zealand there are basically two types of materials - timber and aluminium that are used for windows and doors.

There are certainly other materials such as UPVC (unplasticised polyvinyl chloride) but they probably only account for less than 5% in NZ homes. As energy efficiency of homes becomes more important, we are however likely to see an increased use of UPVC because of it’s better insulation properties.

This will be despite the higher cost of UPVC compared to timber and aluminium. No matter what material - wood, aluminium or UPVC is used for the framing, the glass is going to be the largest area where heat can escape.

Before October / November 2012 windows and doors on new homes were single glazed. From that date onward all new homes had to be built with double glazing. The energy efficiency is better than single glazing and the sound proofing is also better as is the security but of course the cost to build increased.

How does double glazing work?

Double glazing works by producing an air (or low thermal conductive gas) gap between glass panes that insulate against heat transfer. If a gas such as Argon is used in the gap instead of air the insulation effect is even greater.

The cost of double glazing however goes up. In Scandinavia, colder parts of Europe and Northern America triple glazing is also being used. This is more effective still at insulating windows, but the cost is very high.

External doors are usually solid wooden doors or doors with wood and glass.

The glass can be double or even triple glazed, same for Aluminium / glass doors. For houses with internal garages the heat loss through normal garage doors can be quite high however with insulated garage doors and better perimeter seals a big gain in energy efficacy can be achieved.

The energy efficiency of New Zealand homes is slowly improving and upgrading existing single glazing by “retrofit double glazing” is becoming more common. It costs a fair amount of capital outlay to retrofit double glaze. The savings in power bills will take time to recover the outlay but the benefit of a warmer, quieter and more secure home is immediate.

Should Sellers get a Home Inspection?

Wed, 13 Jul 2022 23:46:47 GMT

Should Sellers get a Home Inspection?

Most house sales involve a home inspection. It’s the buyer who normally obtains and pays for it. If you plan to put your home on the market, consider getting a professional home inspection done and include it with your pre-sale documents.

It is easy for the seller to overlook some of the wear and tear and while familiar flaws may feel normal to you, they may not to a potential buyer. Six reason you should get a House Inspection before you list your home.

1. It will probably save you money

It may seem that making repairs before you list is an expensive option, but it can save you a lot of money in the long run. If issues show up in a buyers inspection report, the buyer will probably ask for a price reduction or have you fix the issues before they go ahead.

Should there be significant issues the buyer may cancel the agreement. Buyers frequently insist on significant price reductions that are much more than the repair costs.

2. It could lead to a faster settlement

Getting a home inspection and fixing any issues before the sale can speed up the whole sales process.

3. It can give you a completive advantage

A professional home inspection can be used to promote your property above the competition.

It can give potential buyers confidence in you as an honest and serious seller. Prices cannot easily be reduced by potential buyers due to repairs if you made the necessary fixes ahead of time.

4. Fix the deal breakers

These are certain issues that may show up in a home inspection that are deal breakers to most buyers. These are: Foundation issues, Weathertightness, Mould, Roof problems, Leaky plumbing, and Unpermitted additions / alterations.

5. Is there a downside to a professional home inspection?

You pay the cost of the inspection instead of the buyer but that’s it. You won’t be hit with nasty surprises from a buyers home inspection report and either loose the sale or be up for big price reductions during re-negotiations.

6. Bottom line

Waiting for the buyer to obtain an independent home inspection can cause the sale to fall through. Even if you agree to fix a problem they are not expecting, nervous buyers can get cold feet and be hesitant to proceed.

A professional home inspection can put a nervous seller at ease and give you a better chance of a conditional agreement becoming an actual sale, faster and easier.

All A Buyer’s Choice Home Inspectors are professionally trained as home inspectors (not just builders), members of InterNACHI (International Association of Certified Home Inspectors) and carry professional Indemnity Insurance as home inspectors.

Preparing Your Home for Winter

Wed, 13 Jul 2022 23:38:46 GMT

Preparing Your Home for Winter

There are a few simple things that every homeowner in New Zealand should do as winter approaches. Just like home maintenance it can save a lot of extra work and money later if you prepare your home before winter arrives. Wind, rain, frost, snow and yes even some sun can be expected in our winter.

Wind

Winter wind tends to blow more often and stronger than any other season. Ensuring the roof has no loose iron or tiles can prevent large repair bills. A little bit of silicon sealant as a temporary fix for cracked roof tiles can keep the weather out until a new tile can be installed.

Check that gutters are secure, and downpipes are fixed to the walls. Check the TV aerial is well fixed in in place. Loose fence palings can be blown off and damage the house in high winds - screw or nail them in place.

Don’t forget to either secure or stow away garden furniture and peg the trampoline down. Any awnings should be closed for the winter and garden shade sails taken down.

Rain

Water can get into the smallest of holes or cracks and cause serious expensive repairs. Check the roof for any corrosion, loose roofing nails or damaged / loose tiles. For low pitch / flat membrane roofing ensure the drain / gutters are clear and there is no loose or peeling membrane.

The cladding especially monolithic should be checked for cracks (even hairline cracks will let in water) and sealed / painted. Check the sealant around doors and windows and the putty and paint for wooden windows.

A repair before winter weather arrives will be a lot easier and cheaper than afterwards. Clean out the gutters and drains as they will have a lot more rain over winter.

Frost

In many parts of NZ frost can occur in the winter. Drain any water from pipes that are not going to be used over winter (eg at holiday homes). In colder parts of the country check the frost protection (lagged pipes for example) is in place.

When water freezes it expands and can split water pipes. This often only shows itself when the ice thaws out and can cause a lot of expensive damage. If a dwelling is to remain empty for some time even draining the hot water cylinder is a good idea.

Snow

At high altitudes in the North Island and many parts of the South Island it is wise to prepare your home for snow. High levels of snow on a roof can add a huge weight to a roof and can “seek out” any unrepaired cracks. The added weight can also worsen any existing roof problems.

Sun

The winter sun is not as strong (levels of UV light) as summer sun but in combination with wind, rain, frost, and snow it can cause more rapid damage than the other weather elements alone. Let’s hope we get some good sunny days anyway.

Fences and Gates - Benefits

Wed, 13 Jul 2022 23:38:44 GMT

Fences and Gates - Benefits

Fences and gates are a normal part of a home. In suburbia land sizes may be as large as an acre (4048m2) or as small as 300m2. Then there are lifestyle properties and farms, but we will limit this article to residential property.

The major reasons for having a residential property fenced and gated is for security, safety, privacy, and property enhancement. A well fenced property with a locked gate is a poor prospect for a burglar who would hopefully look elsewhere.

From a safety standpoint especially in locations with busy street traffic, children and pets are much safer in a well fenced and gated garden. Privacy with a solid fence and gate may be a big factor in choosing a fence and gate, sound reduction can be another bonus.

Sometimes homeowners just want a fence and gate to enhance the appearance (and value) of their property.

Types and Costs

The following table is by no means comprehensive but does give an overview of the main types of fences and gates and their prices.

Keep in mind labour / installation costs are not included. Stonemason and bricklaying can cost much more than the material cost. A typical “regular sized” 600m2 section (30m x 20m) gives a fencible area of 100 lined meters, so for material costs alone multiply the meter cost by 100.

Clearly to fence and gate a property even of this size a price of $7,500 - $45,000 for materials and up to double that for labour is expensive. Keeping fences and gates in good condition gives all the benefits described and adds value to a property.

Fences and gates form part of every home inspection report from A Buyer’s Choice Home Inspections.

Painting the House Exterior

Wed, 13 Jul 2022 23:30:19 GMT

Painting the House Exterior

A lot of people paint the house exterior to add to curb appeal when selling. The main other and real reason should be to prevent longer term more expensive repairs and repaints.

Most professional painters will tell you the key to a good paint job is preparation of the surface to be painted.

Its only when preparing to repaint and the close attention involved that a lot of the repairs are found.

Finding repairs early such as rotten timber, rusting metal, cracked plaster means repairs are smaller, easier, and far less expensive to fix.

The savings can be massive, small cracks in the plaster in the monolithic cladding if not fixed early can lead to water entering the timber framework.

If untreated timber (early 1900’s - early 2000’s) was used, rot and mould can destroy the timber in just a few years - eg 3-7 years.

This all happens out of sight. Repairs costing hundreds of thousands of dollars can result. As soon as even very small cracks appear - clean out the cracks, seal with sealant and paint with the appropriate flexible paint systems.

Even when no cracks are apparent a repaint of the whole exterior of a monolithic home every 3-4 years is a great insurance against future problems.

Iron roofs will rust, and concrete roofs will lose their surface finish, absorb water, and become very heavy. Heavy concrete tiles crack and put a lot of stress on the roof framing.

Regular maintenance and painting not only make the roof look good it saves a lot of money over the years.

Wooden weatherboards will rot if not well maintained with paint (or stain for cedar).

Washing the house exterior with a low pressure (not high-pressure water blasting) will extend the life of the paint system by several years.

The build-up of dirt, moss, lichen, and mould holds water and more which rapidly breaks down the paint protective covering.

Timber weatherboards should be repainted every 10 years or so after careful preparation such as water blasting and sanding.

Filling with sealant or replacing any damaged areas before applying two coats of good quality paint. Well looked after weatherboards will last for hundreds of years.

We already have examples of 150-year-old homes in great condition. One final point. As the major expense in painting is the preparation, use only top-quality paint.

The difference may be only a few hundred dollars on a $10,000 full repaint but gives you 3-4 more years of useful life. Paint not only makes the house look good, but it also protects your investment too.

Why you should use an A Buyer’s Choice Home Inspector

Wed, 13 Jul 2022 23:27:27 GMT

Why you should use an A Buyer’s Choice Home Inspector

Did you know that there are no regulations that control house inspectors in New Zealand? Literally anyone can print a business card, say that they are a home inspector and that in New Zealand is legal.

Such a person can operate without any insurance, let alone the proper insurance and that too is perfectly legal in New Zealand. That is not the situation in most developed countries around the world.

In Canada and USA for example, home inspectors must pass exams after completing an extensive home inspection training course - either at a college or online.

As part of an international franchise operating in 19 countries around the world, all A Buyer’s Choice Home Inspection inspectors must complete the same course and pass the same exams as inspectors in USA and Canada.

Furthermore, all A Buyer’s Choice Home Inspection inspectors including those in New Zealand must pass the InterNACHI (International Association of Certified Home Inspectors) membership examination.

InterNACHI is the worlds leading professional body for home inspectors who have members in over 82 countries world-wide. To maintain membership of the prestigious professional organisation, all members must abide by its code of ethics and undertake 24 hours of continuing education every year.

As well as the formal qualifications all A Buyer’s Choice Home Inspection inspectors in New Zealand have to complete a 5-day in-house training course. That is followed by the newly qualified inspector accompanying our

experienced, qualified inspectors on 10 onsite inspections.

All new inspectors reports are reviewed before release to customers until quality assurance it satisfied. Next there is the matter of professional indemnity insurance. All A Buyer’s Choice Home Inspection inspectors in New Zealand carry the best available professional indemnity insurance underwritten by Lloyds of London.

Don’t be mislead by some who claim to have professional indemnity insurance - for your own protection ask to see their policy. Ensure it clearly covers home inspections and is profession indemnity insurance, not some other type of insurance.

Home inspections are a specialised service which requires specialised qualifications and training. It is not a job for a builder who is specialised in building, but perhaps not electrical or plumbing or a waterproofer or HVAC, or many other specialised trades that go into constructing a dwelling.

Finally, the reputation of the inspector used is of great importance. All inspection companies will say that they are the best. Check them out on the leading building related INDEPENDENT website www.nocowboys.co.nz/ where all reviews are verified and cannot be altered except by the person posting the review.

Google A Buyer’s Choice on No Cowboy’s and check us out!

Buying and Selling Older Houses

Wed, 13 Jul 2022 23:27:26 GMT

Buying and Selling Older Houses

For the purposes of our article, we will define older as houses built before the 1940’s. The Villa was the most common house style built from the 1880’s to the 1920’s. Next came the bungalow (with some transitional style) followed by the Art Deco style in the 1930’s and onwards.

These older houses have a lot of architectural appeal to many buyers. Another appealing aspect is often the prime location where those houses were built. The well proven real estate investment rule is location, location, location, and this certainly applies to most older “character” homes.

They all however present a range of problems and maintenance issues that modern homes don’t have. Prior to the Hawkes Bay earthquake of 1931 there was largely no building standards. That devastating 7.8 magnitude destroyed most of central Napier and Hastings and killed 256 people.

Everything changed after that. In 1935 the first set of standards came into effect. Today these character homes are now 80 - 140 years old. Although they were mostly built by craftsmen using Kauri, Rimu, Totara and other native hardwoods, the passage of time takes it’s toll.

A list of key components that require careful inspection include:

*Wooden piles - rotting, splitting, sinking.
Unlevel floors - often caused by sinking piles.
Rusted roofing - due to lack of maintenance.
*Skim and sarking - a fire risk.
*Electric wiring - perished old rubber insulation.
Asbestos - asbestos cement for roofing, weatherboards, and floor coverings.
No insulation - most had no insulation. Wall insulation is hard to install; ceiling and underfloor is easier.
*Insurance - companies often won’t insure houses unless these are replaced.

Buying an older house may mean setting aside a significant amount of money for restorations. Selling will not be possible if a mortgage is required as banks won’t lend without insurance - see in the above list*.

There is a strong market for older houses. Buyers fall in love with their character and location. Always have a

professional home inspection so the ownership dream does not become a financial nightmare.

Dampness in Homes - Causes and Cures

Wed, 13 Jul 2022 23:25:10 GMT

Dampness in Homes - Causes and Cures

Water, in its many forms is an ever-present fact of life for a homeowner. Households can use hundreds of litres daily. Lots of rainwater must be successfully shed by the roof and cladding during storms. Groundwater moves through the soil beneath the foundations. Indoor humidity levels are controlled for comfort.

Moisture in the form of condensation and water vapour is absorbed and released by the home itself. Uncontrolled water in our homes can cause damage. It can lead to damp unhealthy living conditions and mould growth, rotten wood, and structural damage.

The exterior surfaces of a house from roof to foundation make up its envelope which is designed to keep out water. If it fails, expect trouble. When roofs, flashings, foundation walls and cladding are not properly maintained rainwater will find its way into the vulnerable parts of the house.

All houses must absorb and release moisture consistently to maintain a healthy balance. If the house has “breathing problems” many types of moisture problems can develop. Trapped moisture can cause fungus and mould growth causing decay, rot, and eventually structural damage. Dampness destroys the value of the insulation and raises heating costs.

Foundations - The best foundation is a dry foundation, groundwater, floodwater or even rainwater from misdirected downpipes and leaking gutters can undermined the foundations and cause settlement cracks and wet floors and walls. Cracks in the cladding and unsealed penetrations can cause water damage to the walls.

The most common sources of moisture problems at the exterior of a home include - Roof and Flashings - Roofs wear out, rust, shingles become loose, flashing around chimneys, plumbing vents and other penetrations fail. Low pitch roofs are particularly vulnerable.

Gutters and Downpipes - Clogged gutters can cause water to back up and flow inside the walls and collect at the foundations. All downpipes should be connected to the public stormwater system to take water away from the house.

Soffits and Facias - Damaged soffits (horizonal) and facias (vertical) can allow rain to enter the attic which can damage the insulation, ceiling, and walls.

Landscape and grading - Installing flower beds up to the base of the cladding can cause surface dampness to suck up the wall and cause wood frames to rot. Grading should always allow water to flow away from a house.

Windows and Door Flashings and Seals - Cracked, torn or damaged seals, flashings, flashings around windows and doors can allow wind borne rain to penetrate your house.

Common Interior Moisture Problems: In the walls and the attic and below the floor are many pipes with many joints or connections. They carry hot and cold water and wastewater to, around and away from the house.

The effects of leaky pipes inside walls are not always seen for some time but can cause serious damage. Poor

ventilation of kitchens, bathrooms and laundries can cause mould and dampness inside these and other areas of the house.

Always vent to outside, not into the attic. Condensation from many sources - showers, hot baths, drying wet clothes inside. All these things produce moisture and without good ventilation will cause condensation and damage to surfaces such as windowsills.

Regular Inspection and Timely Maintenance. Prevention is better (far cheaper) than cure. Catching a problem early and fixing it can save thousands of dollars. A Buyer’s Choice Home Inspections offer a full home inspection covering every

aspect of moisture (including moisture readings) in your home. A very good investment that could save you thousands.

Home Heating Systems

Wed, 13 Jul 2022 23:24:03 GMT

Home Heating Systems

Despite the unseasonably warm and dry weather we can expect the true winter to arrive soon. Heating the home to keep it warm in winter can be a major cost. Money spent on good insulation is a great investment. Around 50% of heat in a home is lost through the roof of an uninsulated home and another 15% through the floor.

Insulating the ceiling and under the floor (if there is a crawl space) before spending on heating is the best way to go. In New Zealand the open fireplace of the 1960’s and earlier have well gone. They were very inefficient and produced a lot of pollution from improper combustion of wood or coal.

Wood Burners
Initially the move was to wood burners (glass front) and pot belly stoves. These burnt the wood much more completely (less pollution) and gave out much more heat into the home.

Often such wood burners had a “wet back” system where the electric hot water cylinder had the water connected to the wood burner which heated the water saving electricity A lot of work was involved in stacking, storing and bringing the firewood inside to feed into the burner. Removing ash was another chore.

Electric - Resistance Heaters, Fan, Panel or Bar Heaters

These are clean to use and quickly provide heat. The problem is that they are very expensive to run especially if used to heat a whole house and can be a fire risk if not used correctly.

Gas Fires
The portable gas heater with the bottle of gas (caravan type bottle) are no longer legal to use indoors. This is because without sufficient ventilation odorless carbon monoxide gas can be produced and has led to the death of people by carbon monoxide poisoning.

Fixed gas fires either from street mains supplied or bottle gas (stored outside) have grown in popularity. The gas combustion products go up a flue to the outside. This gas fires produce a flame which looks like a “real” fire, and they are efficient at heating and relative to electricity much cheaper to use.

Heat Pumps
Heat pumps are used for space heating and space cooling. Electric heat pumps are electrically operated, refrigerant-type air-conditioning systems that can be reversed to extract heat from the outside air and transfer it indoors. In the heating mode, the heat pump is generally 3-4 times more efficient in their use of power than simple electric heaters.

Check and clean internal vents of the unit inside the house, which may be wall or floor mounted. The outside compressor unit needs to be checked each year to ensure it is kept free from vegetation. There is a gas refrigerant in this unit and if the efficiency of the unit is noticed to drop off it is worth having an HVAC engineer check for a refrigerant leak.

Solar Heating
Solar heating can help heat water which could be used to heat a home (e.g., underfloor water pipes) but are only useful as an aid to other primary heating methods. Heating is most needed in the winter when there is less sunshine and so solar heating is not so useful then.

Whatever form of heating you use, stay warm this winter.

New Landlords Obligations Will Increase Rents!

Wed, 13 Jul 2022 23:22:45 GMT

New Landlords Obligations Will Increase Rents!

A whole lot of changes are in the process of being imposed on landlords that will most likely result in fewer people wanting to be landlords (less houses to rent) putting upward pressure on rents.

Many current landlords will find the regulations and increased costs means that they would rather sell than have all the worry, extra restrictions, and costs.

Most of those houses will be sold to first home buyers - meaning fewer rental houses available leading to increased rents.

For those landlords that continue to rent out properties their costs will increase because of the Healthy Homes Regulations. Some of these typical costs are:

• Heating to be installed - $2,000 - $3,500

• Roof insulation to be installed - $2,500 - $ 4,000

• Underfloor moisture barrier to be installed - $1,000 - $2,500

• Ventilation - kitchen, & bathroom extractors installed - $750 - $1,500

• Drainage and guttering checked at the end of each tenancy

• Compliance statements - ongoing at change of tenancy - $200

• Insurance - tenant is only responsible for the damage done to the property to the excess of the landlords insurance even if they do thousands dollars more damage and the excess is say $500.

There are increased penalties for non-compliance by landlords. The changes to the Residential Tenancies Act 1986 currently in parliament will make it far less attractive to be a landlord.

90 days notice without giving a reason will make it much more difficult to remove “bad” tenants. Why would a landlord want to remove a good tenant?!

Rent increases will be changed from 6 months to 12 months. Tenants can make minor (what is minor?) alterations without a landlords consent.

What one person regards as minor another may regard as significant. There will likely be numerous time take and costly disputes because of this change. There are also increased penalties for non-compliance by landlords.

Apart from putting people off buying properties to rent and therefore creating an even greater shortage of rentals which pushes up rents, these extra cost and regulations will increase landlords costs, increasing rents even further.

In New Zealand most landlords are Mum and Dad investors with one rental brought as a long-term retirement investment to supplement their pension.

Every good tenant should enjoy a safe, dry, warm home. Every slum landlord should be driven out of the rental market. Many of the changes coming are very good and long overdue BUT some are counterproductive.

Make no mistake however rents will rise rapidly as a result.

Vendor Pre-Sale Inspections

Wed, 13 Jul 2022 23:22:43 GMT

Vendor Pre-Sale Inspections

When selling a dwelling it is very prudent to get a pre-sale building report before the property goes to market. Most sellers say it is up to the buyer to obtain and pay for a home inspection.

There are however big advantages to the seller in getting a pre-sale inspection. A pre-inspected property helps to facilitate a faster sale for more money.

More buyers are likely to look at a property if there is a pre-inspected builders report which provides the purchaser with an unbiased third-party opinion. A pre-sale inspection helps to eliminate agreements falling through.

The buyer knows what they are buying, and it gives them confidence to make an offer. A vendor having their property pre-inspected is made aware of any existing issues, given time to correct issues and attend to any

maintenance.

It protects the vendor from inflated buyer estimates for any repair work needed. From a sales agents point of view, it is an advantage not to have to try to re-negotiate the selling price when a purchaser obtains a building

inspection and wants to lower the already agreed price to compensate for the items reported as needing attention.

The purchaser sees it as an advantage too as they don’t have to pay for a home inspection. A Buyer’s Choice Home Inspections Pre-Inspected report conducted for the vendor can be transferred to the buyer who will be covered by extensive professional indemnity insurance.

Beware many inspection companies stipulate the report is only valid and insured for the person who obtained the report - the vendor. Transferring the report to anyone else means no insurance cover.

A Buyer’s Choice Home Inspections reports are transferrable, and the buyer is covered by our insurance.

Unpermitted Building Work

Wed, 13 Jul 2022 23:19:38 GMT

Unpermitted Building Work

Many properties over the years since they were built have had additions and alterations done to them. When purchasing a property buyers want to be certain that any such alterations have been permitted by the relevant local authority.

Therefore, a purchaser will obtain a LIM (Land Information Memorandum) report from the local authority for the property they wish to buy. A LIM report will record all permitted (a building permit has been issued) work done over the years on the property.

If work has clearly been done (say a bedroom or bathroom added) but is not shown on the LIM report, then the work may not be permitted. Not all building work requires a building permit.

For example, decks less than 1 metre above the ground, a single carport, a garden shed or a sleepout under 10m2 in size among others don’t need a building permit. The sleepout however must not have any sanitary services - bathroom, W/C, etc.

But what about building work that has been done and did require but does not have a permit? If the work was done after 30th June 1992 the unpermitted work would have to be checked by the local authority. A Code Compliance Certificate cannot be issued for such work.

The council may however issue a Certificate of Acceptance (COA). A COA is issued by a council following their building inspectors checking the work done and reporting that it was done in a manner which complies with the building code (required standards).

For work done before the 1st of July 1992 the council will not inspect the work and no COA can be issued.

Such properties can have a third-party report (previously called A Safe and Sanitary report) produced. The report can then be lodged with the council authority and recorded on their file for the property.

The third party who produces the report is a suitably qualified independent building inspector such as all A Buyer’s Choice Home Inspections Inspectors. Before a satisfactory report can be issued modifications or improvements to the unpermitted work may be required and will be identified by the inspector.

Without a COA or a third party report it may not be possible for a buyer to get a mortgage on a property with unpermitted building work.

Home Inspection Insurance

Wed, 13 Jul 2022 23:19:37 GMT

Home Inspection Insurance

Professional indemnity insurance for home inspections is very expensive. Insurers regard the profession as high risk. It is understandable really. Suppose an inspector reports a building is ok and it turns out to be say a leaky building. The remedial costs can be hundreds of thousands of dollars.

As a result, there are very few underwriters for this type of insurance and when they will provide cover their premiums are high. In New Zealand there is no insurance company that will provide home inspection insurance. A Buyer’s Choice Home Inspections is part of a world-wide franchise network operating in 19 countries.

Because of this we can source insurance overseas which is 100% underwritten by Lloyds of London. Annual premiums are over $5000 p.a per inspector. No A Buyer’s Choice Home Inspector is allowed to operate without this insurance.

As a house buyer or seller obtaining a pre-purchase / pre-sale inspection, it is vital that the obtained report must be credible and be able to be relied upon. Everyone getting a building inspection should insist on seeing the inspectors professional insurance covering BUILDING INSPECTION SERVICES before going ahead.

Builders insurance does not cover this!! Many companies claim to have professional indemnity insurance but it does not cover BUILDING INSPECTION SERVICES which leaves the customer uninsured. Because the industry in unregulated anyone can claim to be a building inspector so as the saying goes BUYER BEWARE!

Selling or Buying a Property?

Wed, 13 Jul 2022 23:19:36 GMT

Selling or Buying a Property?

Then get professional Real Estate help, it certainly pays off. A professional real estate salesperson (agent) can be worth much more than their commission.

The seller (vendor) usually pays for the real estate agents services - marketing the property, negotiating the sale and attending to all the matters that entails.

This can include staging the home, photography, advertising (online and other media), signs, brochures, videos, open homes, valuers, LIM reports, building inspections and so on.

The commission is usually around 2-3% of the sale price which can amount to many thousands of dollars. A good sales agent will frequently get the vendor a better price than the seller themselves could achieve.

This is because they are marketing and negotiating experts. The better price often not only covers the commission but also leaves the vendor with a higher net price from the sale.

Most sellers know this to be true and over 90% of all sales in New Zealand use a real estate agent.

So, What About the Buyer?

The real estate salesperson helps the buyer too. They provide a lot of information and assist them in making a buying decision.

Typical information might include zoning, what the neighbourhood is like, schools, transport, recent sales data and so on.

Even though the salesperson is paid by the vendor they must abide by a strict code of conduct as set out by the REA (real estate authority), a government legal body.

The agent’s dealings must be honest and fair. They must disclose to the purchaser any significant information that may impact on the buyers decision.

For example, if the salesperson is aware a property has a significant defect (eg weathertightness) they must disclose this to the buyer.

Even if the salesperson is not aware of for example a weathertightness problem they are obliged to recommend that the purchaser have the property checked (by a building inspector) if the property is regarded as high risk.

The salesperson is deemed a professional and needs to be aware of what constitutes a high risk. It is not a defence for the salesperson to say, “I did not know there was a problem”.

The REA can discipline the salesperson and his/her agency and fine both tens of thousands of dollars. For deliberate unprofessional conduct the REA can cancel a salespersons licence and remove their livelihood.

Buying and selling a home is a very large financial and often emotional decision. A professional real estate salesperson helps both the vendor and purchaser providing a much smoother process.

What Every Home Buyer Should Know

Wed, 13 Jul 2022 23:19:36 GMT

What Every Home Buyer Should Know

Things are constantly changing. New building materials, new methods of construction and many other changes make home buying a risky proposition for the uninformed. Properties cost over a million dollars in many places and at least a several hundreds of thousands of dollars in all parts of New Zealand.

Buyers better learn all they can to make an informed decision. Here are a few of the things buyers absolutely should know before purchasing:

What is a LIM report?
What is a home inspection?
What is a property file?
What is weathertightness risk?
Does the property contain Asbestos?
Is there dangerous Methamphetamine (P) contamination?
What is a Code Compliance Certificate (CCC)?

A very brief answer to all these questions follows:

What is a LIM report? This is a report detailing the major information the local council has on file relating to a property. Check for unpermitted building work, any council notices, orders or requisitions and any risks such as flooding or slipping or hazardous substances on the site.
What is a home inspection? This is a written report from a qualified, insured building inspector. The report will give information on the condition of the property and point out work that needs to be done. This includes structural, building work, plumbing, electrical and heating and ventilation. Also included is weathertightness and safety issues.
What is a property file? This is the more detailed information held by the council including the building plans and specifications. This information is not in a LIM.
What is weathertightness risk? This is the level of risk that a home has of becoming effected by moisture or even becoming a “leaky building”. The design of the building, method of construction and material used all affect the weathertightness risk.
Does the property contain Asbestos? Asbestos was extensively used in building prior to its ban from New Zealand. It stopped being used in the mid 1980’s. Friable asbestos - as a dust is very dangerous to health. Asbestos was extensively used in fibre cement weatherboards, roofing products as a fire-resistant material and for insulation.
Is there dangerous Methamphetamine (P) contamination? Methamphetamine is an illegal but widely used drug in New Zealand. Clandestine labs have been found in many houses, motel rooms, apartments, and other buildings. The drug and chemicals used in its manufacture contaminate the building requiring extensive remediation. The cost can be tens of thousands of dollars. Contaminated dwellings can have serious effects on the health of the occupants.
What is a Code Compliance Certificate (CCC)? From 1992 onwards local councils had a responsibility to inspect residential buildings during construction. When completed and finished correctly to the building standards of the time, the council would issue a CCC. This confirmed the construction met the building code. Any illegal construction would not have a CCC. Banks will not lend money as a mortgage to a property that does not have a CCC.

Plumbing Issues Can Be Costly

Wed, 13 Jul 2022 23:19:35 GMT

Plumbing Issues Can Be Costly

The problem with leaks in plumbing is that they cannot always be seen. The pipework carrying water throughout the home to the kitchen, bathrooms, Landry, and W/C is usually behind the wall linings.

This means a slow leak can go undetected for a long period of time causing water damage to the structure. By the time the water leak shows itself the damage can be extensive and the cost to repair can be high.

A home maintenance builders report from A Buyer’s Choice Home Inspections can detect unseen moisture inside the walls. Early detection can save a lot of money in repairs.

Worst of all the usual house insurance does not normally cover “gradual damage” from slow leaks. A bust pipe which floods the house would be covered but not a slowly leaking pipe behind a shower for example.

To strip out a leaking shower, repair the floor, wall, and reinstall the shower can cost thousands of dollars. Having an A Buyer’s Choice Home Inspections building report produced as part of a home maintenance

programme can be a wise investment.

LIM Reports

Wed, 13 Jul 2022 23:13:55 GMT

LIM Reports

A Land Information Memorandum (LIM) is a summary report of the information held by the local council relating to a particular property (land only or house and land).

The information covers possible soil erosion, land slippage, flooding risk and possible hazardous substances on the land such as asbestos and insecticides from agriculture or orcharding.

Other information contained in a LIM report will include maps or plans of the private (relating to the building) and the public drainage stormwater and wastewater.

Zoning information describing what can be built and what land size minimums must accompany a building are now also included.

What Else is in a LIM Report?

The LIM report will also detail building consents (if before 1992) and Code Compliance Certificates issued if after 1992. The rates and any outstanding rates will also be recorded.

If the council is aware of any illegal work done on the property, it will record council notices, orders and / or requisitions that have been issued to the current owner.

Other special conditions may also be recorded such as New Zealand Historic Places Trust listings, which can limit or prohibit any additions or changes to the property.

Any work that may affect the property such as planned road widening will also be detailed in the LIM report.

What Does a LIM Report Cost?

The cost of a LIM report varies from council to council but is usually around $250 - $350.

The time to provide the report is within 10 days but for an extra charge (about another $100 typically) an urgent LIM can be obtained within 2-3 days. I guess it’s a bit like Disneyland you can pay extra to go to the front of the que.

What Does a LIM Report Not Contain?

The building plans, drawings and building specifications detailing the type and quality of building materials is not present in a LIM report. The council do have this information on file if a building permit was obtained.

To obtain this information an interested party must order a copy of the Property File. There is a charge for this, it usually costs less than a LIM report.

What is a Safe Level of Meth (Methamphetamine) or “P” Contamination?

Wed, 13 Jul 2022 23:12:35 GMT

What is a Safe Level of Meth (Methamphetamine) or “P” Contamination?

Until 2017 the maximum contamination level in a dwelling with Meth or P contamination that was considered safe to occupy was 0.5 micrograms / 100cm2. In 2017 a new New Zealand standard NZS8510 was introduced which made the level 1.5 micrograms / per 100cm2.

Following a report by the New Zealand governments chief science advisor Peter Gluckman in May 2018 Housing New Zealand changed the safe level below which they did not require clean up or decontamination to be 15.0 micrograms / per 100cm, ten times the New Zealand standard level.

The (REA) Real Estate Authority in June 2018 advised Real Estate Agents that they did not need to disclose to buyers Meth contamination levels below 15.0 micrograms / per 100cm even though NZS8100 says 1.5 not 15.0.

Looking overseas the “safe levels” set by some other countries are Australia 0.5 - 30 times lower than Gluckmans 15.0 in New Zealand. USA, each state varies - the vast majority are between 0.1 and 0.5, 30 to 150 times lower than Gluckmans 15.0 in New Zealand.

Have a look online at an article in the UK Daily Mail, go to dailymail.co.nk/news/article-6053753. It shows pictures and a video of the scabby legs of tenants where the whole family had serious health problems within a matter of weeks when they moved into a Meth contaminated home.

The levels varied between 0 in some rooms to 10.0 micrograms / per 100cm2 in other rooms. That is way below the 15.0 micrograms / per 100cm2 said to be safe by Gluckman. Would you be happy living in a P contaminated house with levels 30-150 times the level considered safe in Australia or any USA state?

The Gluckman report does however save Housing New Zealand millions (Housing New Zealand spent $120 million decontaminating houses) of dollars cleaning up houses with contamination above the NZS8100 of 1.5

micrograms / per 100cm2 but below Gluckmans 15.0 micrograms / per 100cm2.

It also means that a lot of contaminated (but now not considered dangerous) state houses can be occupied so the governments housing figures can look better. It’s hard to not conclude that the 15.0 level is a political decision which may prove to be very ill advised and seriously affect the health of many New Zealanders.

Also, Google Jackie Wright - Flinders University Thesis, her research shows Meth contamination in houses having adverse health effects at levels as low as 2.0 micrograms / per 100cm2.

Home Inspections - An Unregulated Industry

Wed, 13 Jul 2022 23:11:13 GMT

Home Inspections - An Unregulated Industry

Buying a home involves a very large financial transaction. It is vital for the purchasers future financial wellbeing to be sure that the property they are buying does not have any serious defects. This can range from
weathertightness issues (a leaky / rotting home), Methamphetamine (Meth or P) contamination to a series of other defects.

Buying a home with serious defects can mean thousands, tens of thousands or even hundreds of thousands of dollars in expense to put it right. In extreme cases such as leaky homes or serious Methamphetamine contamination the whole building may need demolishing.

Insurance will not always pay out and have exclusions and limits in household policies - especially when the buyer has not taken reasonable steps to ensure what they are buying is OK. A home inspection and a meth contamination test on any property being purchased would it seems be an essential precaution.

But can you rely on the home inspection / meth test you obtain? The home inspection industry is
unregulated and anyone - no training, no qualifications, no building inspection insurance can be a house inspector in New Zealand. This is a crazy situation, but it is true.

Lawyers and Real Estate Agents must be licenced, are part of a professional body, undergo continuing
education and operate to a code of practice to protect the public. As already stated, nothing is required to be a home inspector. This has led to a lot of untrained, unqualified home inspectors operating in New Zealand.

Some are ex-builders who think that because they were a builder, they are qualified to conduct home inspections. Unfortunately for the house buyer this is just not the case. A qualified home inspector studies for hundreds of hours and must pass exams to become a certified home inspector.

Home inspectors are trained to check not just builders work but also plumbing, electrical, heating and
ventilation and much more - an ex-builder is not. In the USA, Canada and many other countries home inspectors must be licenced to operate.

To obtain their licence inspectors must pass home inspection exams. In addition to these there is a professional body called the international association of certified home inspectors (InterNACHI) which is the worlds leading professional body in over 80 countries world-wide, including New Zealand.

You know that any member of InterNACHI is fully trained and qualified as a home inspector and must undertake 24 hours of continuing education, training every year and must retake the InterNACHI membership exams every 3 years.

In addition to being fully trained, qualified and a member of a professional body, it is vital that a home inspector has professional indemnity insurance for home inspections. Do not mix this up with professional indemnity insurance for being a builder.

Insurance as a builder costs a few hundred dollars per year and does not cover home inspection work. Professional indemnity insurance for home inspectors costs thousands of dollars per year. There is no New Zealand based insurers so many operating as home inspectors are not insured.

All A Buyer’s Choice Home Inspectors in New Zealand are:

Fully trained, have studied and passed exams to certification standard.
Are members of InterNACHI.
Hold Professional Indemnity Insurance ($1,000,000) as home
inspectors.
Are trained and insured for Methamphetamine sampling and testing.
Conduct all inspections according to NZS 4306:2005 and issue a NZS certificate with every inspection.

It is very long overdue for the home inspection industry to be regulated - for the publics protection. In the meantime, choose A Buyer’s Choice Home Inspections for your own protection.

The Sale and Purchase Agreement Buyers Guide - Conditions

Wed, 13 Jul 2022 23:11:12 GMT

The Sale and Purchase Agreement Buyers Guide - Conditions

As a buyer you may be unfamiliar with various conditions that can be in a sale and purchase agreement for a property. There are many and that is why you and the seller employ lawyers to look after your interests.

As a buyer you can add certain conditions into any sales agreement to protect you and ensure you are buying what you think you are - a property without legal or building problems. Here are 4 items every buyer and their lawyer should check:

Title: In every agreement clause 6.0 allows the purchaser / purchasers lawyer 10 working days after the date of the agreement to check for any problems with the title.
LIM Report: The LIM (Land Information Memorandum) is a report that is produced by the relevant local council which provides details relating to the property. It covers a whole range of things including any council known problems with the property such as unpermitted (illegal) building work, whether a code of compliance certificate or building permit was granted, drainage information, zoning information and much more. Clause 10.2 of the sale and purchase agreement allows 15 working days after the date of the agreement for the buyer to obtain and approve (or otherwise) the LIM report.
Building Report: The purchase of a house in New Zealand is a transaction involving hundreds of thousands of dollars and in our major cities often more than a million dollars. You need to ensure what you are buying does not have costly problems you may be unaware of. A Buyer’s Choice Home Inspections report covers all aspects of the house you are buying and is backed up by Building Inspection Professional Indemnity Insurance in the unlikely event that anything is missed. You have NO insurance for your inspection with Builders Insurance.
OUR INSPECTIONS INCLUDE:
Roofs, vents, flashing and trim
Gutters and downpipes
Eaves, fascia, and soffits
Skylights, chimneys, and other roof penetrations
Decks, steps, porches, walkways, and railings
Slopes and drainage
Basements, foundations, and crawlspaces
Exterior cladding
Retaining walls, fences, and sheds
Garage doors, safety sensors and openers
Heating systems
Cooling Systems
Water heating systems
Moisture testing
Plumbing fixtures and fittings
Electrical panels, meter boxes and fuses
Insulation and ventilation
Earthing and bonding
Fireplaces and hearths
And much more!
Meth or ‘P’ Testing: A buyer cannot “see” if a house has Meth or ’P’ contamination. A contaminated property can cause serious health problems and in cases of higher contamination the building can be declared unfit for habitation. All A Buyer’s Choice Home Inspectors are trained and qualified to test for Meth or ’P’ contamination. As a minimum every sensible buyer should include these 4 conditions in a sale and purchase agreement for their protection.

The Seven Costly Mistakes House Sellers Make and How to Avoid Them

Wed, 13 Jul 2022 23:11:12 GMT

The Seven Costly Mistakes House Sellers Make and How to Avoid Them

Costly Mistake 1 – Not preparing and presenting the house and garden properly for sale

First impressions are very important. A potential buyer can be put off by a property that is not clean and tidy with a tidy garden. Remove clutter. No dirty washing up in the kitchen, no tea towels hanging on the oven door.

Take all the clutter off the fridge door, which is held on by magnets. Do any minor repairs before presenting it for sale. Fix sticking doors, loose door handles, dripping gutters, etc. They either put buyers off or reduce the value of the house in their eyes.

Have the exterior of the house washed down if it is at all dull. The cost is money well spent if you don’t want to do it yourself. Keep flowerbeds and lawns as tidy as you can. Smoking and pets can introduce odours, which the smoker and pet owner doesn't notice but potential buyers will.

It may be inconvenient but worth thousands of dollars, so keep pets out of the house when buyers/agents come to inspect. Have a good air freshener plugged in or spray before inspections. Don’t try to mask odours with strong smelling fresheners, as it is a dead giveaway you are hiding a bad odour.

Costly Mistake 2 – Pricing the house too low

It seems obvious but does happen. When the market is moving quickly and prices are rising, it’s all too easy to sell below what could, and should have been achieved. 2013 in Auckland, showed an average rise of 12% with some suburbs even higher than that. That’s a 1% rise per month.

Suppose you determined the value of your home based on all the recent sales over the last 3-6 months in your area. If on average, most of those sales were 3 or more months ago, then yours should be worth an extra 3% or more today. 3% doesn’t sound like much until you work it out:

$400,000 house x 3% = $12,000, $500,000 house x 3% = $15,000 and $1,000,000 house x 3% = $30,000.

Costly Mistake 3 – Choosing the wrong Real Estate Agent or too many agents

There is strength in numbers! Two is a crowd! Which one is it? Well, choosing a well-known real estate agency over a little known one makes good sense. Most of the well-known brands have offices throughout the country and that’s a bonus because buyers may be transferring to your town from another part of the country. Two is a crowd.

If you employ more than one agent to sell your home, neither will be motivated just as strongly as one. Only one is going to get a commission, the other will get nothing. A 50% chance of getting nothing does not motivate an agent too much.

All salespeople are not equal.

In every agency, there are agents who are selling lots of houses and others looking for another job because they can’t make a living. Since you will be paying the same commission at any given agency, make sure you choose the salesperson who is selling lots of property.

Costly Mistake 4 – Pricing too high at the start

We can always come down in price later, can’t we? Yes, but the best possible opportunity to sell for the best price is when a house first comes onto the market. At this very time, there is a pool of buyers out looking for their next home. This pool

consists of people who have perhaps just arrived from overseas with the money to buy, people who have sold their home and need to buy before they move out and renters who have saved the deposit and don’t want to pay any more rent.

They are all keen and want to buy NOW. If they see your house or is shown it by an agent and the price is too high (compared with others, they have seen at a better price) they will reject yours and buy another.

Costly Mistake 5 – Trying to sell it yourself

No one wants to pay a commission. The money is better in your bank account than the agents. Very True. Then why do over 90% of people sell through agents? It’s not just because it takes time, money, and effort, but because it often saves money – Yes, saves money despite the commission.

Most average Kiwi’s don’t want the embarrassment of “negotiating” with an owner, so unless they are keen to pay the

asking price (Yeah Right!), they don’t negotiate – in other words, don’t make an offer at all. So, it’s the non-average Kiwi, the salesman, the wheeler-dealers who negotiate with private sellers.

These are the very people who have no intention of paying asking price and are not in the least bit embarrassed by making low offers – deducting the real estate commission they know you are not paying of course – and a lot more. No, it’s the average Kiwi who only buys a house every 7 – 10 years who will pay the best price and they would rather deal through an agent.

Costly Mistake 6 – Not having a suitable LIM report or a Pre-Purchase Home Inspection

Buyers today are a lot more careful than 10 years ago. It’s not unusual today for a buyer to want a LIM report (Land Information Memorandum) and a builder’s inspection report. With local authorities getting tougher on un-permitted building work and the leaky building horror stories, it’s not surprising, is it?

Imagine you have sold your house, but the contract has a condition in it, wanting a home inspection report. You have negotiated (through an agent) a good price. There may be small issues so the buyer may still want to buy the property but may want to re-negotiate a lower price and the seller is then in a very weak negotiating position.

A pre-purchase building inspection from A Buyer’s Choice Home Inspections will highlight any items that need attention. Better you as the seller know about these before a buyer gets a home inspection and either cancels the sale or wants a reduced price (often more than it would take to fix the problem).

For unpermitted work A Buyer’s Choice may be able to help too by conducting a third-party report (like a safe and sanitary report). Getting your “house in order” at the start will save you money in the long run.

Costly Mistake 7 – Turning down good early offers

The best opportunity to get the highest price is when the property in new to the market. The big pool of buyers are out there, and the buyers are searching for a possibly suitable property that they have not seen.

An early offer which is a good offer (close to asking price, but perhaps not full asking price) is often turned down by a vendor on the basis “we have only just put it up for sale, so let’s wait a little longer because if we get a good offer like this almost immediately, we should be able to get more still by waiting for others to see it”.

The problem is, the early offer is often from the keenest buyer and if their offer is turned down, they become even keener on the next suitable property they find – and buy it. There are numerous stories of people who turned down a very good offer never being able to get that much again!!!

Avoiding Dampness in the home

Wed, 13 Jul 2022 23:11:10 GMT

Avoiding Dampness in the home

In winter the challenge for every home is to keep the inside warm and dry. Put another way it is about keeping moisture out and heat in. Keeping moisture out means that the outside cladding– roof and weatherboards don’t leak.

Obviously keeping the roof corrosion or crack free and well painted is a basic in this regard. For ‘iron’ i.e., galvanised steel roofs ensure all roof nails are not sticking up and that they have flashing washers to prevent moisture ingress.

For concrete tile roofs these can crack and the cement pointing among ridge tiles can become loose and missing due to shrinkage. Sealing cracked tiles with silicone is a satisfactory fix if the tile cannot be replaced.

Keeping weatherboards well painted prevents moisture damage to the whole house. What is often neglected is to make sure all penetrations - i.e. holes formed where pipes, cables and the like go through the weatherboards are sealed properly.

Likewise, any fixings where holes are drilled to fix items on walls or roofs need to be well sealed as these are often overlooked and become a prime source of leaks and moisture ingress.

This refers to fixings such as outside lights, TV antenna, meter boxes, security alarm boxes and so on.

Particular attention to all the above points is important where construction types have low pitch roofs, small or no eaves, internal gutters, no cavity, or monolithic cladding.

No matter what type of exterior cladding is used it is important to have the bottom of the cladding above ground level (normally 150mm) and no flower beds built up against the cladding.

Ground contact leads to water slowly rising into the cladding by capillary action making the house damp.

Moisture generated inside the home needs to be removed or prevented too. Bathrooms should have an extractor fan that removes moisture from showers and baths to the outside of the home.

Stoves should have a rangehood that vents outside and so should clothes dryers in the laundry. Drying damp

washing in front of a heater inside means all the moisture is released into the house adding dampness to the curtains, carpet, walls, and ceiling.

It is recommended when the day warms up that windows and doors are opened to ventilate the house. Dampness often leads to mould growing inside the house and some types of mould are toxic and a significant health risk.

Beware of portable gas heaters. The burning of gas produces water vapour and portable heaters do not have a flue to get rid of the moisture produced. A DVS or HRV ventilation system is an excellent low-cost way of preventing dampness and mould in homes.

They really do work especially with older houses where windows and doors aren’t perfectly sealed. The basic system costs only a few cents per day to run (DVS says $17 per year). DVS and HRV systems also claim they save on heating costs since it takes less energy to heat dry air than damp air.

Dehumidifiers are effective too, but the major drawbacks are that they are more expensive to run and the water collecting container needs to be emptied on a regular basis. Stay dry, stay warm, stay healthy this winter.

Solar Power for Homes

Wed, 13 Jul 2022 23:11:10 GMT

Solar Power for Homes

Solar power is certainly a clean energy source and if the sun shines it will continue to be freely available and will reduce New Zealand's greenhouse gas emissions if it replaces power produced by fossil fuels.

The commonly seen solar panels collect energy from the sun and convert it into electricity. The electricity produced is direct current and needs to be changed to alternating current which is the type used in houses.

This requires a unit called an inverter. The system is usually used in conjunction with the normal power supply to reduce the amount of electricity used from the national grid and so cut the users electricity bills.

Any excess electricity produced can be sold to the electricity retailers and fed into the grid but paid to you at a much lower cost than buying it. Because solar only produces electricity during daylight hours most systems are connected to the grid for when there is no or insufficient solar supply.

The cost of batteries for storage to avoid this are presently too expensive to be worthwhile. For houses in remote areas where the cost of getting connected to the electricity grid may be very difficult and/or costly the use of storage batteries and/or backup generators are an option.

Solar works best where there is a large number of sunshine hours such as Nelson/Marlborough but in general New Zealand has good sunshine hours suitable for solar energy.

The cost of batteries for storage in particular and of solar panels and inverters are becoming more and more efficient and the costs are gradually coming down.

At the moment however the typical time for the savings on electricity charges from the grid to make the payback period for the investment in solar energy is a long-term investment.

It will usually take at least 10 years and more typically around 15 years to recoup the investment at present day costs. A lot can happen in that time.

Electricity charges from the grid could increase significantly especially if demand grows as more electric cars come into use. For many solar panels for homes will be a wait and see exercise.

Double Glazing, does it pay?

Wed, 13 Jul 2022 23:11:09 GMT

Double Glazing, does it pay?

Most houses in New Zealand have single glazed windows meaning that each window has a single sheet of glass. Double glazing means each window has 2 sheets of glass with a sealed gap between the 2 sheets or panels. The gap can be either an air gap or a heavy inert gas such as Argon.

The gas or air acts as a thermal barrier reducing the transmission of heat. Argon is more effective than air by 3-9% but it costs more to install. The type of glass used can also improve the thermal heat loss through a window.

Low E glass (low emissivity) can reduce heat loss by 20-30% compared to the standard window glass. Since 2008 all new houses built must be built using double glazing. When major renovations to an existing house is undertaken where a building permit is required any replacement or new windows would need to be double glazed.

Existing houses can however have their windows retrofitted to change them from single glazed to double glazed without removing the existing windows. But does the cost of replacing or retrofitting existing windows pay in terms of saving on heating bills?

Research done by Energywise and by Victoria University generally agree that the payback time to recoup the cost of installation can vary depending upon what part of the country (how cold it gets) and whether it is retrofit or replaced. Typical figures for Auckland are 28-30 years, typical figures for Dunedin are 13-15 years.

The other benefits of double glazing apart from the power bill savings are obviously a more comfortable home, less condensation on the windows and noise reduction. Finally, the re-sale value of a house that has double glazing is likely to be higher than if it had single glazing.

Does it pay? Yes, but it is usually a long term investment.

What is Happening Under Your Floor

Wed, 13 Jul 2022 23:11:08 GMT

What is Happening Under Your Floor?

If you have a house built on piles (as opposed to a concrete slab floor) there is often a crawl space under the floor to allow for access to check / repair problems under the house.

There are several things to check on a regular basis under your house. A house inspection by an A Buyer’s Choice Home Inspector will include checking:

The condition of the floor and joists for stability, rot, and insects (e.g., Borer) damage.
The condition of the pipes and pile / bearer ties - with respect to stability.
The presence of a DPC - damp proof course between pile / bearers to prevent moisture transmission.
The presence of drainage - to ensure outside water is not running under the house which would produce dampness. Plastic sheeting to cover bare soil is worthwhile to prevent moisture from the soil transmitting to the floor.
Crawl space ventilation - are there enough ventilation grills to allow sufficient air movement to keep the floor dry?
Check the plumbing system for leaks.
Check the electrical wiring for any cable damage and ensure proper cable support.
Underfloor insulation - there needs to be underfloor insulation for accessible floors on all rental property by law by the 1st of July 2019. The insulation must be to a minimum rating of R 1.3.

Have A Buyer’s Choice Home Inspections conduct a full house maintenance inspection. Early detection of problems can save a lot of money. Call 0800 86 36 36.

House Fires

Wed, 13 Jul 2022 23:11:07 GMT

House Fires

In New Zealand there are around 120 house fires every week. As would be expected most fires start in the kitchen. The lounge is the second and the bedroom is the third most common area where fires start. In a typical year 12 people will die in a house fire in New Zealand.

Most fires occur because of unattended frying or cooking but there are many other causes too. Electrical fires are quite common and can occur particularly in older properties (1940’s or earlier) where the electrical wire can short circuit due to the failure of the rubber sheathing used at that time.

Even in newer homes accidental cuts in the electrical wiring can have the same effect and cause a fire. The building code for more modern houses (1960’s onwards) provides for the use of various building materials that are required to have a level of fire resistance to help slow down the spread of a house fire.

Storing “rubbish” or even spare containers of vehicle fuel especially in a garage attached to the house just adds to the problem should a fire start. Badly wired domestic appliances or damaged electrical sockets can easily cause a fire.

Clothes dryers are a significant cause of fires as the “fluff” from the clothes builds up in the vent pipe and can ignite if it becomes too hot. Christmas tree fires are not uncommon since tree lights can easily become damaged and cause a fire.

If it is a real Christmas tree these are ready fuel for a fire. There are some simple precautions to help keep you and your family safe from a house fire:

Don’t build up a store of combustible material - waiting too long for the recycle collection and keep any spare petrol / fuel outside.
Keep clothes drier vents free of fluff.
Always have smoke alarms in working order - see www.fire.org.nz smoke detectors are available for as little as $5.50 each or $18.50 with a 10-year battery.
Because they are cheap a small fire extinguisher best kept close / in the kitchen is worthwhile investing in, 1.0kg dry powder are as little as $19.95 each.
Have a regular home inspection which will include all aspects of the home including electrical, plumbing, heating and ventilation and all other parts of the building. Call 0800863636 for an inspector near you.

There must be many, many people who wished they had spent $25 - $45 on these items as insurance against their house burning down.

Being A Landlord

Wed, 13 Jul 2022 23:11:06 GMT

Being a Landlord

Being a landlord will become more and more expensive and difficult. Passed into legislation over a year ago it will be compulsory by the 1st of July 2019 for all rental properties to meet new insulation standards and mandatory smoke alarms in rental properties.

Wellington City Council is operating a WOF or Warrant of Fitness requirement for rental houses which has the very desirable aim of improving the standard of rental properties. As with many bureaucracy initiated moves however the present system seems to be way over the top.

Of the 144 properties trailed before the WOF was introduction 90% failed - probably because of the over-the-top standards rather than 9 out of 10 of the properties being “unhealthy”.

On the next page is the pass / fail form for the WOF. The Greens propose a compulsory WOF by 2019 and would go even further with a landlord bond to cover repairs, a registration fee and recheck inspection fees every 3 years.

It is likely that Methamphetamine testing will also become a requirement too. The cost of being a landlord will certainly increase and probably rents too as a result. Unless the WOF which will certainly be introduced throughout NZ is made more practical then watch out for the Mother of all rental shortages.

Home Safety and Building Code Changes

Wed, 13 Jul 2022 23:11:05 GMT

Home Safety and Building Code Changes

As time passes the code or requirement for building a house changes. What was acceptable in say 1960 or 1970 is no longer acceptable under the present building code. The following changes which will impact on your homes safety aspects are (just a few examples):

Balustrades on Decks:

In the 1960’s for example it was OK by the then building code to have much bigger gaps than the present 100mm, so much so that a toddler could squeeze through and fall.

Smoke Alarms:

Are now compulsory in any new house being built and in any rental property.

Asbestos:

This was extensively used in houses but stopped being used from 1987 onwards. Asbestos is only a problem as a dust so avoid sanding, drilling or waterblasting asbestos containing products such as asbestos cement
weatherboards.

Lead:

Was extensively used in house paints up until 1979. Lead is a serious health problem if sanding dust is inhaled. It is especially bad for children as their system is more vulnerable.

RCD:

An electrical Residual Current Device was introduced in 2003 and the code was updated in 2010. This prevents electrocution and is especially required in wet areas such as bathrooms, kitchens, outdoor sockets etc.

Safety Glass:

Wherever glass is subject to human impact, safety glass had to be used from 1999 onwards. The code was again updated in 2016.

Seismic Resistance:

As we know New Zealand is subject to earthquakes. A lot of new rules in the building code now relate to securing building items that can fall over and cause injury. Hot water cylinders now must have 2 metal straps secured to the wall as a minimum seismic resistance measure.

Methamphetamine (Meth or P):

This year a new standard NZS 8510:2017 was introduced to set out the procedure for testing for Methamphetamine contamination and process to follow for remediation of contaminated properties.

For houses that are older and may not conform to the latest building code it would be worth considering some of the safety issues above.

*All A Buyer’s Choice Home Inspectors can access any of the above matters and are able to test for Asbestos, Lead, RCD and Methamphetamine contamination.

The Importance Of Drainage

Wed, 13 Jul 2022 23:11:04 GMT

The Importance of Drainage

As we all know rainwater can cause major problems to a home. Handling the rainwater correctly to prevent problems with your home is very important. Having suitable drainage around the house outside around the perimeter walls is vital.

If these become blocked, flooding can occur and water entering the home can result. The ground around your home should slope away from the house on all sides so as not to cause overloading of the perimeter drains.

The rain, snow, melting hailstones and frost that lands on the roof is moved away from the house by the gutters and down pipes to the public stormwater drains.

Keeping the gutters clear of leaves and dirt so that they function well is one of the best pieces of maintenance a homeowner can do. Blocked gutters can force the water back under the soffit and into the walls causing dampness and rot to the cladding, faming, and interior lining. Keep trees well away from the roof and gutters by regular pruning.

Not only will this help prevent leaves falling into the gutters it will allow more sunlight to help warm and dry the roof and cladding. The roots of trees too close to the house can also block and damage drainage pipes and can crack the concrete foundations, paths, and driveways.

Rainwater that falls on paths, driveways and other outside areas is normally collected in a drain which is like a basin in the ground. This traps silt and debris before the water flows to the public stormwater drain. Drains block if the silt leaves and debris is not cleaned out from time to time. Apart from the oblivious damage caused by flooding, ground water can cause dampness when the exterior cladding is in contact with the ground.

The cladding can soak up the water (a slow version of a paper towel) and cause dampness, rot and mould. A common mistake is to have flower beds around the house where the soil touches the bottom of the cladding or even is built up above the bottom of the cladding.

This needs to be avoided and removed if they exist as damage to the house will result. The wastewater from the house is separate to the stormwater system as this needs to be treated to remove the nasties before it is

discharged to the sea or our waterways.

The wastewater comes from the W/C, laundry, baths, showers, and kitchens. Wastewater is discharged to the public wastewater system via a gully trap which has a water seal to prevent foul odours reaching the surface.

Gully trap

If a wastewater trap becomes blocked the waste can overflow and obviously create a health problem. Being careful not to have grease and food waste go down the kitchen sink and avoiding non-soluble materials flushed down the W/C can help reduce this risk. Looking after the drainage of your home will help keep the house and its occupiers dry and healthy.

What About the Roof Over Your Head

Wed, 13 Jul 2022 23:11:03 GMT

What About the Roof Over Your Head?

The roof of your house is designed to keep the house dry and warm. The main enemies of your roof are rain and sun. If water gets into a house from rain or snow melting it can destroy not just the roof but the structure of the home too.

Dampness inside often leads to mould which can be a danger to ones health. The sun with its UV light degrades housing materials including roofing materials. To be effective a roof needs to shed water into the gutters and down pipes which takes it away from the house to the stormwater drains.

The higher the slope or pitch of the roof, the more easily it will shed water. Architectural designs means that to add variety to the “style” of houses there are many types of roofs, ranging from very steep eg A frame roofs to very low sloping almost “flat” roof.

The type of roofing materials used in New Zealand are many and varied. The most common and traditional roofing materials are galvanised iron (galvanised steel), either unpainted or factory painted (colour steel) and tile roofs (mostly concrete now but originally clay which are still available).

Pre-painted colour steel may be obtained in original long run profile or pressed metal tiles - sheets of colour steel not individual tiles. Many other roofing materials are also in use such as asphalt shingles (usually fixed over construction plywood), asbestos cement shingles (asbestos not used now), membrane roofing (eg butynol) which is mostly used on low pitch flat roofs, aluminium roofing and so on.

The material used is dictated by the design, the look required, cost and suitability for the pitch of the roof. Where there are changes in the roof directions or where penetrations of the roof take place such as chimneys, hot water overflow pipes, skylights etc there will be the need for flashings to prevent water entering at these points.

All roof materials will require maintenance over time to ensure they perform well and last as long as possible. A regular inspection of the roof and the flashings as well as the gutters and down pipes is strongly recommended. The is an old proverb - a stich in time saves nine.

It means only one stich is needed to fix a tear if done soon enough but if left too long then 9 times as many will be required. With a house roof this is very, very true. Finding a defective flashing or rusty spot in a roof and fixing it right away may take only a few hundred dollars.

If say the rusty spot became a small hole over time the rain could drip into the ceiling. The water could be soaked up by the roof insulation for months until the insulation becomes saturated and heavy. The water would then soak into the gibboard of the ceiling which could then loose its strength and collapse into the lounge.

The homeowner now has a massive bill - to clean up the mess in the lounge, dry out the ceiling space, re-gib the ceiling, gibbstop plaster the ceiling, paint the ceiling, replace the insulation - oh and fix the roof. Easily 9 times the original cost of maintenance.

A Buyer’s Choice Home Inspections can provide home owners with a maintenance inspection report which would identify any problem areas so that timely maintenance can be done on not just your roof but all parts of your property. The long terms savings can be huge.

NZS 8510 2017 New Zealand Standards for Methamphetamine Testing

Wed, 13 Jul 2022 23:11:02 GMT

NZS 8510 2017 New Zealand Standards for Methamphetamine Testing

This month this New Zealand standard was issued. It sets out the standard required for sampling, testing, reporting and decontamination of Methamphetamine effected properties. The key points of the standard are:

Accredited samplers required.
Contamination above 1.5mg / 100cm2 for high use areas and above 3.8mg / 100cm2 for limited use areas such as crawl spaces, cavities etc. require decontamination.
Samplers must be independent of those that do decontamination.
Sampling methods and procedures are specified.
Testing laboratories are accredited.
Contents and method of reporting is specified.
Procedure for decontamination is specified.

Contact your A Buyer’s Choice Home Inspector for Methamphetamine testing done in accordance with

NZS 8510:2017.

Methamphetamine Contamination and Insurance

Insurance companies such as AIG will cover policy holders for Meth contamination. The policy will almost always exclude family members who use (or manufacture) the drug at the property.

Typically, forensic quantitative testing which shows contamination levels above the specified levels is covered. As an example, AIG will only cover up to $30,000 for decontamination and a minimum excess of $2,500 will apply unless a higher excess applies.

Since badly contaminated properties (such as where “P” has been manufactured) could cost much more than $30,000 to rectify there is still a high risk of a big financial loss. It is important therefore to ensure properties are tested when buying or renting.

There is no cover for holiday rentals or air b and b type short letting arrangements for Meth use but cover exists for contamination from manufacture storage and distribution. For landlords to be insured a whole raft of conditions apply such as:

Reasonable care in selecting tenants.
Keeping written records of pre-tenancy checks.
Collecting 3 weeks rent and / or bond and register the bond with Tenancy Services.
Do internal and external inspections at least every 3 months and for every change of tenant.
Keep records and photos of all inspections.
Monitor rents and if 14 days in arrears send written plus personal visit to correct the situation.
Must apply to the Tenancy Tribunal for vacant possession if:
The rent is 21 days in arrears.
You become aware of any illegal activity by the occupants.
If any intentional damage is done by the occupants.

Failure to do these things may well invalidate the insurance. It would be wise to contact your A Buyer’s Choice Home Inspector to test for Methamphetamine before you buy or rent out a property.

Asbestos in Houses

Wed, 13 Jul 2022 23:11:01 GMT

Asbestos in Houses

Asbestos is no longer used as a building material in New Zealand. There are still however many tens of thousands of homes that have Asbestos containing materials that were used when they were built. By the mid 1980’s Asbestos was no longer used in any component of house building.

So, if your property was built later than the mid 1980’s it is highly unlikely to contain Asbestos. Prior to that time Asbestos was used as a component of textured ceilings - “porridge ceilings”, “Glamatex” or “Whisper” were common names.

Asbestos was also used as a component of Asbestos cement used as a cladding either in sheet form or as weatherboards plain and profiled “fibrolite”. Asbestos cement was also used as a roofing material and had a corrugated profile like galvanised iron roofing used today.

Older vinyl floor coverings as sheet vinyl or tiles often contained Asbestos. So, are these products dangerous to your health? As long as the Asbestos products such as those described are not treated in such a way that they produce dust there is no real danger.

That means do not sand (for painting), saw cut (producing sawdust = Asbestos dust) or high-pressure waterblast which when the blasted off material dries will expose the fibre. Also do not scrape off textured ceilings applied earlier than the mid 1980’s without testing for Asbestos first.

For vinyl flooring don’t floor sand to either remove it or to provide a surface for new vinyl to go on top if it may contain Asbestos. There is certainly no need to panic or fear these products. Your A Buyer’s Choice Home Inspector can have your materials tested for Asbestos if you are concerned.

Monolithic Houses

Wed, 13 Jul 2022 23:11:00 GMT

Monolithic Houses

A “Monolithic” house is one where the exterior cladding of the property is designed to be in one piece (one = mono) showing no joints or seams. The two main types of cladding systems employed to achieve this effect were fibre cement sheeting with an overall texture finish and what is known as EFIS which stands for Exterior Foam Insulation System.

The fibre cement sheets system of which the best known is harditex used fibre cement sheets and the joins between the sheets had a structural expansion joint sealant and a tape system over the joints. After the joints were all finished, a textured coating was applied giving a seamless looking finish.

The EFIS system used expanding polystyrene as the cladding and insulation, the joints were sealed with construction sealant and taped over. These were either then plastered or textured and a water proofing paint system applied again to give a one piece or Monolithic look.

The term plaster homes or Miami homes or even chili bin homes have sprung up in relation to EFIS clad homes. The early 1990’s—early 2000’s was the period where most Monolithic homes were built. One of the major problems with Monolithic homes is that the joints over time can crack and moisture can then enter the home.

During this building period early 1990’s—early 2000’s other events made matters worse and included the building of homes without a cavity so moisture could not drain out easily, the use of untreated framing timber which would more rapidly rot if it got wet and architectural details that made it high risk for moisture penetration such as no eaves and balconies with rooms below.

Despite the “fear” of possible leaky homes it is important to note that Not All Monolithic homes are leaky homes and non-monolithic homes may be leaky homes. It is true that there is more risk with a monolithic home but if the home is watertight now and is well maintained, the risk of future issues will be greatly reduced.

As part of a well monitored maintenance programme an annual building report by A Buyer’s Choice Home Inspections is recommended. Some inspection companies charge extra to inspect Monolithic homes, A Buyer’s Choice Home Inspections charge the same price for a home inspection no matter what the construction type.

Leaky Houses

Wed, 13 Jul 2022 23:10:59 GMT

Leaky Houses

Whether buying a home to live in or as an investment to rent out it pays to ensure you are not buying a “leaky home”. Nationally there are estimated to be between 42,000 and 89,000 leaky homes or homes with weather tightness issues. The number depends on which set of information you believe.

Either way it is a lot of leaky homes with repair cost estimates between $11,300,000 and $23,000,000! When buying a property, you need to be sure you don’t get caught with one and a massive repair bill.

What can cause the problem?

There were many factors involved but a major one was the big increase in “monolithic” cladding such as fibre cement sheet with joints and textured paint on top and EFIS (exterior foam insulation systems) - the so called “chilli bin” polystyrene system with polystyrene sheeting overlaid with fibre reinforcing and plaster and then paint.

These systems were difficult to install correctly and prone to problems as they relied heavily on joint sealants and waterproof paint. A lot of other factors were involved too such as the building code allowing the use of untreated framing timber and the absence of a cavity through which water could drain.

Risky design features also added to the problem for example - no eaves, flat roofs, many roof angles and balconies over living areas. Most of these factors were in play between 1992 and 2003.

Here are a few tips / things to watch out for when buying a home:

• Be extra careful if buying a property built between 1992 and 2004.

• Be extra vigilant if buying a monolithic clad home.

• Be aware of the risks if the home has a flat roof.

• Be aware of the risk of lots of sharp angles and changes in roof pitch.

• Be aware of the risk a home with no eaves poses.

• Remember not just monolithic type houses pose a problem as other types of cladding can still produce a leaky home.

• Have a professional building inspection including - weather tightness and moisture testing conducted by an experienced, fully insured (including professional indemnity and public liability insurance) professional such as A Buyer’s Choice Home Inspections.

Is it worth having a Building Inspection on a Brand-New Home?

Wed, 13 Jul 2022 23:10:58 GMT

Is it worth having a Building Inspection on a Brand-New Home?

Why spend money on a home inspection for a newly built home? The home after all has been inspected by the local council from start to finish and then a CCC (code compliance certificate) is issued, and the builder offers a

guarantee.

That all seems well and good, but you need to be aware that the council building inspector only checks specific aspects of the build to ensure that they comply with the building code and not every aspect of the property is

inspected.

A Buyer’s Choice Home Inspectors report inspects every aspect of the house inside and out. Remember most of the leaky homes that we hear about were inspected by the council during construction and have a CCC.

With a severe shortage of tradespeople for house construction in New Zealand there is a real pressure for every tradesperson to finish a job quickly and move onto the next.

In many cases the quality of the workmanship can suffer, and many experts are predicting this may well lead to the next generation of leaky / defective homes.

With the average price of a house costing $1,000,000 in several parts of the country it makes sense to invest a few hundred dollars to have a detailed comprehensive report. Look online at a sample report from A Buyer’s Choice Home Inspections.

A typical report would be between 50 - 80 pages and includes 100 - 200 photographs. The inspection includes areas not normally or easily seen by the purchaser such as the roof, gutters, crawl space and the roof space (between the roof and ceiling).

Do you own or are you buying a rental?

Wed, 13 Jul 2022 23:10:57 GMT

Do you own or are you buying a rental?

If so, you really should have the property checked for Methamphetamine contamination before you buy and periodically during a tenancy. It makes good financial sense to have your rental checked for Meth (P) at the start of a tenancy and at the end of a tenancy - which will be the start of the next tenancy.

Have it written into your tenancy agreement which will be signed by the tenant. This alone will put off applicants for a rental who intend to use or worse manufacture methamphetamine at your rental.

De-contamination costs can be huge and in cases of extreme contamination demolition of the property is the only option. Check your property insurance policy as it may exclude Meth contamination.

All A Buyer’s Choice Home Inspectors are trained and qualified to test for Methamphetamine.

What about that second hand car you are thinking of buying? Meth's users could have contaminated it too! The level of contamination in such a small, closed space such as a car can be very high.

Don’t risk you or your families health, have an A Buyers Choice Inspector check it for you.

Smoke Alarms Save Lives

Wed, 13 Jul 2022 23:10:56 GMT

Smoke Alarms

Each year, the New Zealand Fire Service attends over 3,500 house fires. In over 80% of those fires, smoke alarms were either not installed or not working. Most fire fatalities occur in homes, mainly while people are sleeping when they can’t smell smoke. Smoke alarms are the best possible defence you and your family can have from dying in a fire.

Where should I put smoke alarms?

Smoke rises and moves along the ceiling. It will move up stairwells and vertical openings. When it can’t rise anymore it will build up, working its way down again. It’s because of this that it’s important to place smoke alarms on the ceiling to get the earliest warning. If you must position it on the wall, put it 100mm away from the ceiling to avoid dead air pockets.

For optimum smoke detection, long life photoelectric smoke alarms should be installed in every bedroom, living area and hallway in the house - on every level. However, this is not always practical. That’s why we suggest, at an absolute minimum, that a long-life photoelectric smoke alarm should be installed in the hallway closet to the bedrooms. This should be supplemented with other alarms as soon as circumstances permit.

Where not to put them.

Don’t install smoke alarms in the kitchen, garage or bathrooms unless they are specially designed smoke alarms for those areas. Heat detectors are available for the kitchen.

What sort of smoke alarms should I install?

The New Zealand Fire Service recommends you install long-life photoelectric type smoke alarms in your home. They may be a bit more expensive, but the benefits are significant: They provide a minimum of 10 years smoke detection.

They remove the frustration of fixing the ‘flat battery beep’ at inconvenient times. The cost of replacement batteries for standard alarms means the long-life one effectively pays for itself over its lifetime

Elderly don’t have to scale ladders to replace batteries annually.

But, at a minimum, you should install one standard photoelectric alarm in the hallway closest to the bedrooms.

Copyright information: NZFS owns the copyright to the information available on our website including images, text, hyperlinks, screens, and web pages. If there is any inconsistency between this copyright notice and the copyright notice found on any of the information available on our website then the notice attached to the information will take precedence over this notice. The information available on our website may be copied for personal use without further permission provided that it is not altered, and you clearly acknowledge the source and copyright status on each copy. You would like to use the information available on our website in any other way you must obtain written permission. You must also obtain our written permission if you wish to create a link to or from our website, or any part of our website. For Copyright queries, including requests for permission, please contact the Corporate Communications Manager, New Zealand Fire Service Headquarters, PO Box 2133.

Selling A Property?

Wed, 13 Jul 2022 23:10:55 GMT

Selling a Property?

It is rare now for a buyer of a home not to have a home inspection as a condition of purchase.

How does that effect the home selling?

Basically, it means that the home will be put under the “microscope”. A home inspector will go through the property, itemizing all the minor and major defects and will report those findings to the purchaser.

The inspectors job is to carefully check the homes structural and mechanical systems for problems that can lead to large repair bills later. The home inspection is a critical part of the sale process.

Nobody wants to buy a “bad” house. However, some buyers use the results of a home inspection as an opportunity for re-negotiation, often requesting the homeowner to reduce the sale price by thousands of dollars.

This process can turn into a nightmare for an unprepared seller. Home inspections can cost home sellers thousands of dollars and in some cases, a failed transaction. No home is perfect.

Many homes may not have major problems but even a number of minor defects can give rise to a buyer’s request for abatement (a reduction in the sale price) or a complete release from the agreement.

Sometimes it’s just that the home inspector scared the purchaser by not explaining that the minor and typical problems are just that - minor and typical. The last thing any homeowner wants in the “eleventh hour” of the sale is a purchaser who wants to re-negotiate the sale.

A Buyers Choice House Inspections is somewhat unique in that the report you as a seller obtains is transferrable to the successful purchaser who is then covered by our insurance.

Buying A Property?

Thu, 09 Jun 2022 07:53:09 GMT

For the past 15 years, the home inspection industry has been growing by leaps and bounds. As the demands of the home buying public and the regulations regarding real estate have evolved, more and more people hire a home inspector when they are involved in a real estate transaction.

In today’s real estate market over 95% of real estate transactions involve a professional Home Inspection. These services improve consumer confidence and lead to an increase in the success rate of home sales.

It is also more common for lenders and insurance companies to request a qualified home inspection report prior to putting a mortgage on a house or insuring it.

Real Estate Agents are continuing to demand excellence and professionalism from Home Inspectors, and to provide assistance and peace of mind to their home buyers and sellers.

Buying a new home can be stressful enough…even when everything turns out to be OK. But what about the hidden aspects of home buying?

A building inspection from A Buyer’s Choice Home Inspections will help you ensure your investment is sound and it will relieve you of any doubts before purchasing your new home.

The prudent purchaser will now get a methamphetamine, “meth” or “P” test done as well as a building inspection. All A Buyers Choice House Inspectors are qualified and trained to conduct meth or P inspections and it makes sense to have this done at the same time as your building inspection.

The cost of remediation of meth or P contamination depends upon the level of contamination and can range from a few thousand dollars to tens of thousands of dollars.

In extreme cases where the property has been used to manufacture methamphetamine ie a P lab the very timber structure of the property may be so contaminated that the only option is to demolish the house.

Local councils have the ability to prevent occupation of a property until decontamination has been done. Book your meth or P test at the same time as your home inspection.

All our inspectors are qualified to test for Meth contamination.

Choosing a home building inspector

Thu, 09 Jun 2022 07:53:09 GMT

It is very prudent to have a professional home inspection before you purchase. It is also essential that you choose a properly qualified, trained home inspector, not just a builder who is qualified as a builder and not necessarily a home inspector.

All our A Buyers Choice Home Inspectors:

Hold an internationally recognised home inspection qualification
Have completed the A Buyers Choice Home Inspections in house training course which includes 10 full inspections
Have been trained to test for Meth/P contamination
Have extensive public liability and professional indemnity insurance, underwritten by Lloyds of London.

We believe that A Buyers Choice Home Inspections reports are second to none but don’t take our word for it. Check us out on www.nocowboys.co.nz , the building trades major independent ratings website.

A Buyers Choice Home Inspections New Zealand are part of an international franchise of professional home inspectors that operate in 19 countries worldwide. There are more than 200 A Buyers Choice Home Inspectors conducting tens of thousands of inspections each year.

In New Zealand alone our inspectors have conducted thousands of home inspections. You may not be aware that there is no law in New Zealand preventing anyone from being a home inspector without any formal home inspection training or qualification.

That makes it even more important that you choose a reputable company where all the inspectors are formally trained and qualified as home inspectors just like in many other countries where the same qualification is required to become a home inspector.