Residential builders are hammer ready
15 June 2020
The barriers to building have been lowered, making this an ideal time for Kiwis to undertake new home or renovation projects. After years of capacity constraints the sector is ready to build New Zealand’s homes.
Master Builder’s Chief Executive David Kelly says “This is a great time to build for anyone who is in a position to do so. Interest rates are low, we have skilled capability and strong capacity”.
“While it is often the large commercial projects that gain the most attention, it is our residential sector that are ready to build. They will also make the biggest impact to our economic recovery,” says Kelly. “This is a great time for New Zealanders to continue to invest in their properties.”
The building and construction sector plays a vital role in our economy. Last year it was New Zealand’s third largest sector, directly contributing $19 billion to the country’s GDP. Residential building forms the backbone of the sector, accounting for 60% of its revenue. It is also an important employer across all regions, and accounts for 80% of apprentices. Getting the sector moving will stimulate regional economies and help us address our housing shortage.
This is not just about our economic recovery. Quotable Value’s General Manager, David Nagel believes property is proven to be a sound long-term investment.
“New Zealander’s have a fascination with property for a reason. As a long-term investment is makes sense, and we have seen this in New Zealand after previous recessions. While there maybe a little bit of softness in the immediate market, long-term property is still one of the best investment options,” says Nagel.
“With uncertainty around other investments, and interest rates low – property provides a good investment alternative right now. Kiwis continue to invest in bricks and mortar for a reason, we can see it, we understand it, and it holds up over time.”
Commenting on our post COVID-19 market, experienced economist, Shamubeel Eaqub says “for homeowners and landlords in a position to do so, it is good time to build or renovate. As some projects are postponed, many tradies will finally have the time to get your job done.”
“Your home is your biggest investment, and you want it to be a place you enjoy, now it is the time to do those projects you have been considering or putting off,” says Eaqub.
Master Builders urges those who are considering building or renovating to do their research and make sure they have the protection of a building guarantee.
“Building a new home or undertaking a renovation can be a big project and investment – you need to make sure you do it right. It’s important you do your research to find a quality builder that you can trust, and insist on a written contract for renovations and new builds. This will ensure you are on the same page as your builder throughout the process,” says Kelly.
“And maybe most importantly ensure you have the protection of a building guarantee. We firmly believe everyone building or undertaking a major renovation should have the protection of a building guarantee.
“A Guarantee provides protection for the homeowner if something goes wrong – service deficiencies, loss of deposit, relationship break-down, or where their builder is no longer in business. The Guarantee protects homeowners for 10 years and can be transferred to new owners, so adds to the resale value of the property. At typically less than one percent of the build costs, it just makes sense,” continues Kelly.