Property costs in NZ - the heart of evil

[HenryDorsetCase]

Yeah, things are a bit of a crap fest alright Masho. However, I've talked to lots of folk lately who are finding ways to circumvent "the system" all very heartening. Incidently, I'd go for a massive electro magnetic pulse scenario rather than some planetary/asteroid collision event. Being wiped out is just too easy.

Mr Akzle doesn't count, mkay?

[Zedder]

Mr Akzle doesn't count, mkay?

Totally agree.

[Ocean1]

I wonder if you imported NZ made Gib from Perth, where it retails at about 40% less than here, and managed to undercut Winstone's local prices whether the Commerse Commission would admit they'd been had. You'd only have to do it long enough to get a few calls out to the media.

The CC are a fucking joke, monopolies siphon huge quantities of cash from the economy, mostly off shore, and the entity charged with protecting the economy from such underhanded bullshit sits gibbering in the corner.

Maybe, just maybe the tide's turning. http://www.stuff.co.nz/business/indu...-rival-imports

Last April, Knauf Insulation's general manager for Australia and New Zealand, Stuart Dunbar, said his company was selling its insulation for half the price Fletcher was charging.

"The cost of building a house in New Zealand is among the highest in the world because components to make houses are more expensive," he said.

"With companies in a monopoly or duopoly, consumers tend to pay higher prices and that's happening in the New Zealand market."

[Woodman]

Who is paying the premium? The builders or the end user? or both? What markups are the builders putting on the materials compared with Oz builders?

What margins are there in building a house?

[Ocean1]

Who is paying the premium? The builders or the end user? or both?

Both.

What markups are the builders putting on the materials compared with Oz builders?

Don't care, the fact is you can walk in to a hardware shop in Perth and buy NZ made Gib for about half the price you pay here. That's true for trades discounted prices also.

What margins are there in building a house?

That, my son is a very good question, and one for which I'd love to know the answer. Not sure how you'd go about finding a coherent answer, though.

[flyingcrocodile46]

Who is paying the premium? The builders or the end user? or both? What markups are the builders putting on the materials compared with Oz builders?

What margins are there in building a house?

On charge up jobs builders will typically add 5 to 10% for management of subcontractors and materials that they source/co-ordinate and pay for. Overall margins on full contract tenders are typically 10% or less (back in the late 80's large contractors were pricing work at negative margins then screwing the subcontractors down to compensate). The reality is that half of the margin is never realised due to errors and omissions. Not infrequently the other half is eroded due to disputes that see the builder short paid. One error can easily cost over 10% of the contract value. There are very real and big risks in running a building business and few succeed past 4 or 5 years of trading before they are bust.

If you see a builder who looks like he has money it is often due to his spending forward against projected profits using the cashflow to finance it. When the cashflow slows down these guys tend to fall over pretty quick. Very very few builders make more than a living.

[flyingcrocodile46]

Both.



Don't care, the fact is you can walk in to a hardware shop in Perth and buy NZ made Gib for about half the price you pay here. That's true for trades discounted prices also.



That, my son is a very good question, and one for which I'd love to know the answer. Not sure how you'd go about finding a coherent answer, though.

Rawlinsons is a good place to start. Put together by Queer Suckers (quantity surveyors working for Rawlinsons) who are involved in many ongoing projects (mostly as representatives for funders). They list the prices they see that industry is actually paying for materials, services, etc over varied build styles.

It is over to the reader (often another Queer Sucker) to add up and apply profit margins. Analysis of this data often reveals tender prices at less than the Rawlinson Sum COST. It's a hard industry to build a medium to long term profitable business in.

[Ocean1]

Rawlinsons is a good place to start. Put together by Queer Suckers who are involved in many ongoing projects (mostly as representatives for funders). They list the prices they see that industry is actually paying for materials, services, etc over varied build styles.

It is over to the reader (often another Queer Sucker) to add up and apply profit margins to. Analysis of this data often reveals tender prices at less than the Rawlinson Sum COST. It's a hard industry to build a medium to long term profitable business in.

Monopolies are just one of the ways market distortion fucks the consumer.

I used a new industrial electrician a year or so ago, my usual was on holliday. His invoice looked well high, so I asked for a breakdown. He was charging me +20% for materials, +20% on RETAIL. We had a discussion where he learned that I knew he was getting materials at -80%, and that was about the only reason I subbed that part of the job out at all. If he insisted on charging me almost 1000% of his costs we probably wouldn't be seeing him again.

What the fuck's wrong with charging every client a reasonable price for your product, rather than gouging the fuck out of the "less important" ones?

[mashman]

What the fuck's wrong with charging every client a reasonable price for your product, rather than gouging the fuck out of the "less important" ones?

Hmmmmm... could it possibly be that this is where the youth of today are getting their perceived attitude from

[unstuck]

This would do me I reckon.

http://www.trademe.co.nz/property/li...-550658696.htm

[mashman]

This would do me I reckon.

http://www.trademe.co.nz/property/li...-550658696.htm

That is seriously tempting.

[unstuck]

That is seriously tempting.

House aint much, but you could fix it up or rip it down. Something like this would do me, nice and simple.

[mashman]

House aint much, but you could fix it up or rip it down. Something like this would do me, nice and simple.

Could be an ideal spot for tagging on a couple of second hand houses (or whatever ya call them) and fixing them up too iffen yer that way inclined.

[Madness]

Greymouth is cheap. http://www.nzherald.co.nz/nz/news/ar...ectid=10861773

I lol'd at the bit about the scrap metal dealer.

[unstuck]

Greymouth is cheap. I lol'd at the bit about the scrap metal dealer.

Yeah me too. I would live in greymouth if I could find a decent enough place out past bodytown somewhere.