Daily Archives: April 20, 2009

Supporting Evidence if you ask me….

Anyone who brought the Sunday Times yesterday would have surely read the business page cover story, under the heading “The True cost of the Slump.”

After all property watching is our 2nd most popular spectator sport.

In normal newspaper fashion their story went on to detail the price differences between the “height of the property boom” (their comment) and compared it to last months figures.

(larger version here if you can’t get any closer to the screen)

You would have noticed that most of NZ had a lot of red ink still drying. And you will recall that I have said in many posts that locally our peak was back in the 2003-04 time frame. The reason we too had another mini-boom period over the 2005-2007 period because of a ripple effect throughout NZ, most notably for us those from other South Island locations, whom, courtesy of their increased property prices, could now afford to move to the Nelson region.

However when you looked at the South Island chart……..

( larger version here )

…you may have noticed something. Look at the first line,  the chart is obviously laid out in a respective geographical order, still sticking out like these guys, is the fact that Nelson barely moved.

In fact there’s actually a modest improvement. If you’re unsure of why this is, then you haven’t read many of my past posts have you?

CHART SOURCE – SUNDAY STAR TIMES (Business Section) April 19, 2009

Looking to buy a New Home less than 7 Years old?

Then you need to be up to date on the Master Builders guarantee program. Why?

Mainly because 2 years ago I found out about a buyer that was trying to claim back some damage that they thought was covered in their 4 year old new home.

Guess what?  They couldn’t.  Why ?

It seems the most important part of any transaction for the purchase of a less than 7 year old home is the transference of that guarantee.

Be aware it is, unlike what they thought, NOT automatic.

You actually have to request it. And complete some associated paperwork. I believe there is no back-dating if you have just moved in to your now, 2 owner since brand new home. Even if you’ve only been there 3 months, and the home is only two years old, unless the paperwork and proper processes have been conducted then ouch!

Personally I believe this is wrong, and the government or someone should step in & remedy this soon, a new home with a 7 year Master Builders Warranty should be just that. A guarantee for 7 years regardless of how many owners have lived there.

At it core are these main warrantys…

Materials*, Workmanship and Structural Cover from handover for 2 years.

• Limited Structural Cover For up to an additional 5 years.

So if you are contemplating purchasing such a so described property you need to be cognizant of these following very important points.

1.       Go here and find out about the MASTER BUILD GUARANTEE, and what’s covered.

2.       If building, go here and download documents that are designed to assist you in the Building Process. There’s also another download page here, maybe duplicates of the other page.

3.       Download the defect tolerance schedule so that you are aware of what standard of build and finish is to be expected of a Master Builder.

4.       If you are the 2nd buyer of a home that’s less than 7 years young, then be very familiar with the below clause, in fact double check to make sure your solicitor has gone over it too.

If a home covered by a Master Build Guarantee is sold, the new owner is unable to claim unless the Guarantee has been transferred into the new owner’s name. This can only happen once during the Guarantee’s lifetime.

There are others, for example Certified offers a 10 Year warranty for work carried out by members of the Certified Builders Association of New Zealand. On their web site it says…

…members are obliged to apply to Builtin New Zealand Ltd for a ten-year written guarantee when undertaking to build a new home. They are not required to apply for the guarantee, but can offer to do so, for alterations and additions.

Any buyer would be well advised to carefully investigate these and any other builders warranties.

Master Builder main website is here.

Certified Builders main website here.

There is also HomeFirst who appear to work with Builtin New Zealand as well.