
House building and inspections: Target property cowboys not the system
It is truly buyer beware. That's why the Building Officials Institute of New Zealand established a robust Accredited Building Surveyor (ABS) programme for pre-purchase property inspections – to stop the cowboys.
We need to see better standards, minimum qualifications and mandatory indemnity insurance for the sector to better protect Kiwis purchasing their biggest asset.
A week ago, Herald NOW interviewed Master Builders chief executive Ankit Sharma, who commented that 'it takes 19 months to build a house from the time consent is given to the code of compliance given ... even for simple homes sometimes 14 to 15 inspections'.
But there are also multiple influences on the length of time involved in building a house, whether it is 12 months or 24 months. This includes land purchase and transfer of title, design time and adjustments, design application – anywhere from a week to 20 days depending on the quality of designs – material supply problems, capacity of building companies and skilled labour availability, failed inspections and final sign-off.
Additionally, if a house needed 14 to 15 inspections, something is terribly wrong and those inspections are well and truly deserved to protect building compliance, building safety and the owner's investment.
Some councils run between six to eight inspections and Auckland runs 10 as standard. They cover foundations, wrapped cavity, cladding, pre-line, plumbing, post-line, waterproofing, drainage and final.
Auckland has a 25% inspection failure rate and Tauranga up to a 50% failure rate. So, 14 to 15 inspections is comparatively good if the Master Builders are that bad.
We are awaiting the Government's announcement on major reforms to the building consent system. This may include restructuring our Building Consent Authorities, who are there to safeguard homeowners from defective work. The self-certification of builders would remove existing protections for homeowners.
That's a worry given the extremely high rates of non-compliant building design applications and inspection failures – 80% and 50% respectively, according to 2023 Model-Docs.
Let's hope Building and Construction Minister Chris Penk makes the right decision – to target the cowboys, not the system.
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NZ Herald
11 hours ago
- NZ Herald
House building and inspections: Target property cowboys not the system
Anyone who is so minded can set themselves up as a pre-purchase inspector and produce reports – and often it's uncertified builders who make the mistakes in the first place. It is truly buyer beware. That's why the Building Officials Institute of New Zealand established a robust Accredited Building Surveyor (ABS) programme for pre-purchase property inspections – to stop the cowboys. We need to see better standards, minimum qualifications and mandatory indemnity insurance for the sector to better protect Kiwis purchasing their biggest asset. A week ago, Herald NOW interviewed Master Builders chief executive Ankit Sharma, who commented that 'it takes 19 months to build a house from the time consent is given to the code of compliance given ... even for simple homes sometimes 14 to 15 inspections'. But there are also multiple influences on the length of time involved in building a house, whether it is 12 months or 24 months. This includes land purchase and transfer of title, design time and adjustments, design application – anywhere from a week to 20 days depending on the quality of designs – material supply problems, capacity of building companies and skilled labour availability, failed inspections and final sign-off. Additionally, if a house needed 14 to 15 inspections, something is terribly wrong and those inspections are well and truly deserved to protect building compliance, building safety and the owner's investment. Some councils run between six to eight inspections and Auckland runs 10 as standard. They cover foundations, wrapped cavity, cladding, pre-line, plumbing, post-line, waterproofing, drainage and final. Auckland has a 25% inspection failure rate and Tauranga up to a 50% failure rate. So, 14 to 15 inspections is comparatively good if the Master Builders are that bad. We are awaiting the Government's announcement on major reforms to the building consent system. This may include restructuring our Building Consent Authorities, who are there to safeguard homeowners from defective work. The self-certification of builders would remove existing protections for homeowners. That's a worry given the extremely high rates of non-compliant building design applications and inspection failures – 80% and 50% respectively, according to 2023 Model-Docs. Let's hope Building and Construction Minister Chris Penk makes the right decision – to target the cowboys, not the system.


NZ Herald
11 hours ago
- NZ Herald
Can't see the sheep for the trees: 10 years, 100,000 hectares and $900m of foreign forestry conversions - mapped.
Purchases of entire farms by overseas investors require government approval. The Herald used the information released with these government decisions to map the land. Overseas purchases make up about a third of the total conversions of farms to forestry - the other two-thirds were converted by Kiwis. During the last decade only seven farm-to-forestry applications made to the Overseas Investment Office (OIO) were declined. In these seven cases, Ministers were not convinced there was enough benefit to New Zealand. In the same period of time, foreign forestry investors have spent at least $897 million on farmland in Aotearoa, and probably much more: the value of 20 large purchases has not been disclosed. Nearly 23,000ha of the land was bought within the last four years by a single overseas investor, with a disclosed sale price of $219.6 million. That investor was Ingka Investments Forest Assets NZ, owned by Ingka Group, the largest franchisee of IKEA stores. One of the concerns about increasing forestry is the impact it has on land and communities -particularly from slash and other debris left behind after harvesting. The devastation following Cyclone Gabrielle highlighted the dangers and damage forest slash can cause. Dr Steve Urlich, Senior Lecturer in Environmental Management at Lincoln University, said the Government tightened the national rules around slash removal in 2023 but is now proposing to relax them with changes to the National Environmental Standards for Commercial Forestry. Beef and Lamb New Zealand, the industry organisation representing sheep and beef farmers, said farm sales and conversions have happened at an 'alarming rate' for a decade, and when good farming land is planted out in trees it affects jobs and exports in the meat sector. In May, Federated Farmers launched its 'Save Our Sheep' (SOS) campaign, calling for urgent action to support New Zealand's sheep industry. Former Federated Farmers chairman Toby Williams says sheep farming is at a crossroads Photo / Supplied Forestry advocates point to the economic benefits of forestry and wood processing, including $6 billion in export value and 40,000 jobs. Forestry is New Zealand's fifth largest export earner according to the New Zealand Forest Owners Association (NZFOA). Chief Executive Elizabeth Heeg previously told the Herald, 'We are known for our ability to manage forests effectively, and with good environmental outcomes.' To buy sensitive land, which includes any non-urban land larger than 5ha, an overseas investor must show how their investment will deliver tangible benefits to New Zealand – such as job creation, increased export revenue or environmental improvements. Benefits may also include increased public access, protection of historic heritage or alignment with other government objectives. Land Information New Zealand (LINZ) says the benefits must be proportionate to the sensitivity of the land and the nature of the investment. The OIO cannot consider any detriments when making its decision, aside from those that relate to water bottling. Investors buying land already planted for forestry, or land to be used for forestry, or more than 1000ha of forestry rights in a calendar year, must still apply through the OIO. They can also on-sell the land and forestry rights to other overseas buyers, who must also apply for consent. In these cases, no benefit to New Zealand needs to be demonstrated, only whether the land will continue to be used for forestry. The Government has moved to limit forestry conversions and its 'farm-to-forest' ban is set to become law later this year. Only 6319 hectares have been approved since the new policy was announced and 2024's 11,794 ha was already well down on the 2022 peak of 27,788 ha.


Otago Daily Times
11 hours ago
- Otago Daily Times
Call to diversify into digital assets
New Zealand remains behind its international counterparts when it comes to financial advisers offering exposure to digital assets, Swyftx chief executive Jason Titman says. Mr Titman, who is also executive chairman of the crypto exchange which serves more than 1.5 million users, said diversification into digital assets, even at a small allocation, could dramatically shift long-term outcomes for many Kiwis. He is the keynote speaker at CryptoWinter25 — the inaugural summit for New Zealand's emerging crypto and digital asset leadership — in Queenstown this week. Mr Titman said a lack of diversification and a narrow focus on traditional asset classes were contributing to delayed retirement horizons for many Kiwis, despite a record $112 billion now held in KiwiSaver funds. Analysis by Swyftx showed if a typical KiwiSaver member had invested $36,500 in Bitcoin over the past decade, equivalent to $10 a day, they would now hold a portfolio worth about $2.8 million. The average balanced KiwiSaver fund had returned about 6% to 7% annually over the same period. An equivalent $36,500 investment into a typical KiwiSaver fund would have grown to around $65,000 to $70,000 today. Mr Titman, who is also a chartered accountant, said New Zealand remained behind its international counterparts. Global regulators and pension funds in countries such as Canada, Germany and Singapore had begun integrating crypto and other digital assets into broader retirement strategies. Only two KiwiSaver providers offered any exposure to digital assets, which were now a mainstream component of diversified investment portfolios internationally, and he believed financial advisers needed to broaden their education on emerging asset classes. High-net-worth families had been early adopters of digital assets, recognising their growing potential as a legitimate diversification tool within a long-term investment strategy. "It's a clear example of the opportunity cost facing retirement savers when portfolios remain too narrow," he said. The issue was not about taking excessive risk but modernising portfolio design. "We're not talking about putting someone's retirement on the line ... We're talking about disciplined allocation, say 3% to 5%, to a high-growth, emerging asset class that has already demonstrated long-term return potential. It's about optimising performance, not taking unnecessary risk," he said. An increased allocation into digital assets could also support local market development, create jobs and broaden the tax base from investment gains and industry growth, he said. — Allied Media