House Builders (investment)

**Graystone** · 20th April 2018, 19:23

Hello kiwibikers, I could use some advice on building a house. I'm wanting a cheaper build that will appreciate nicely in the short/mid term. Apart from location, do you guys and gals have advice on building companies, design traps to avoid, features that bode well for resale value, etc...

I'm thinking 300-350k on house as turnkey, but sourcing the section myself. Given the turnkey nature of it, some advice on which building companies are worth a go would be much appreciated. Location is Bay of Plenty, I'll probably live in it myself.

**Laava** · 20th April 2018, 19:31

Don't use a housing company. The money you save will buy you a brand new bike. The location and subsequent resale value has nothing to do with the cost of building...you will have to do research and make your own decision. I just finished building a 280 m2 house and the people priced with Signature but the extra stuff they wanted to add pushed SH,s price beyond their budget. Not SH's fault either, just to clarify, but they employed me on hourly rate and saved $50k. And got all their cherished extras...

**mashman** · 20th April 2018, 19:33

Relocate and renovate?

**Graystone** · 20th April 2018, 19:52

Originally Posted by Laava

Don't use a housing company. The money you save will buy you a brand new bike. The location and subsequent resale value has nothing to do with the cost of building...you will have to do research and make your own decision. I just finished building a 280 m2 house and the people priced with Signature but the extra stuff they wanted to add pushed SH,s price beyond their budget. Not SH's fault either, just to clarify, but they employed me on hourly rate and saved $50k. And got all their cherished extras...

Thanks for your input. Project managing the build is more than I want to take on, and just mitigating that risk through a turnkey contract adds a lot of value to me. I've been told (by buyers) that franchised brands such as Signature, Classic Builders, GJ, etc are things they look for as well.

**GazzaH** · 20th April 2018, 21:48

House buyers buy on location, bedrooms, price and stuff, not builder brands. Who told you that? Let me guess:
branded builders.

And franchisees range widely in quality: the franchise is all about marketing not build quality.

I'm not usually this cynical on a Friday night. Been a tough week.

**sidecar bob** · 20th April 2018, 22:10

Flat square ish site, no steep banks, no retaining.
Buy existing & if it's just for investment purposes then don't get hung up on buying in the city or town you live in just because it's convenient.
You can only change the house you buy, not the entire neighbourhood. Think about that one hard.
If you decide to buy in another town, you seriously need to understand the lay of the land & the borders between the suburbs & their reputations.

**TheDemonLord** · 20th April 2018, 22:25

some bits of advice from multiple people who have built their own:

It will take twice as long as you expect it and it will cost twice as much.

Do your homework on your builder - as others have said - a franchise company is only as good as the franchisee you are dealing with. References and Credit Checks are strongly advised.

The council (who will issue the required consents) is run by incompetent muppets who are paid less than their private sector counterpart and they have an absolute monopoly - so they have zero incentive for helping you get things done quickly.

That said - you can help yourself if you go with a fairly vanilla type build - apparently when there are more rooms than they can count to on one hand - they get confused...

**Laava** · 20th April 2018, 22:39

Originally Posted by TheDemonLord

some bits of advice from multiple people who have built their own:
It will take twice as long as you expect it and it will cost twice as much....

It takes 5 months to build a typical size house from spade in the ground to move in day. Barring unforeseen holdups. $2000 m2 will build you an awesome house and that will usually include water tanks and septic systems.

**sidecar bob** · 20th April 2018, 22:52

Originally Posted by TheDemonLord

some bits of advice from multiple people who have built their own:

It will take twice as long as you expect it and it will cost twice as much..

That's why I said to buy existing. It's a Fixed price & it's tenanted within three weeks of investing. spend a week or two tidying up the property, chuck some paint around & some new carpet. Find a fantastic tenant, (that's the most important part) & walk away.

**jasonu** · 21st April 2018, 02:31

Originally Posted by sidecar bob

Flat square ish site, no steep banks, no retaining.
Buy existing & if it's just for investment purposes then don't get hung up on buying in the city or town you live in just because it's convenient.
You can only change the house you buy, not the entire neighbourhood. Think about that one hard.
If you decide to buy in another town, you seriously need to understand the lay of the land & the borders between the suburbs & their reputations.

As above. Plus buy the shittyist house on the best street, not the best house on the shittyist street.

**Laava** · 21st April 2018, 06:52

Originally Posted by sidecar bob

That's why I said to buy existing. It's a Fixed price & it's tenanted within three weeks of investing. spend a week or two tidying up the property, chuck some paint around & some new carpet. Find a fantastic tenant, (that's the most important part) & walk away.

Yep, this young lady is looking for a rental apparently?
http://www.nzherald.co.nz/nz/news/ar...ectid=12036269

**sidecar bob** · 21st April 2018, 07:20

Originally Posted by Laava

Yep, this young lady is looking for a rental apparently?
http://www.nzherald.co.nz/nz/news/ar...ectid=12036269

Meth much?
Always Facebook prospective tenants, because they always send their best nigger as the advance party.
It's amazing what you will discover.

**Honest Andy** · 21st April 2018, 07:43

Since you said you're probably going to live in it yourself, then a new one is a good option. Modern insulation, double glazing, rooms the size you want, pointing towards the sun...
Although there's a few extras you don't get automatically, like clothesline, paths, shed, driveway.
And I'd agree with laava about choice of builders, big franchise companies aren't as good as their advertising suggests, and can be a whole lot worse when they start cutting corners.
Oh and sometimes it's best to use the builder who can't start for 6 months, instead of the one who can start tomorrow...

**HenryDorsetCase** · 22nd April 2018, 20:48

The single worst experience I or my clients have ever had with a building project has been with a franchised "master" builder. Like dangerously incompetent, weathertightness, north of $100k in litigation costs, most probably a bribe paid to council awful fuckery. Guy flitted to Brisbane (where else?) and the master franchisor (a nationally recognised chain with nauseating TV ads) did not want to know and threatened litigation instead of helping.

Get a local builder. If he/she is any good be prepared to wait. Thats OK, it'll be worth it. Look at a bunch of showhomes. Find a site. Think about access and sun and wind and stuff. Then invest in some A2 or A3 graph paper and sketch that shit yourself. Start from the inside out: where do you spend your time in a house? what do you need? Take it to a competent architectural draughtsperson. Listen to their feedback. Appoint a builder and sit back.

I have vacillated but on balance I think a Certified Builder warranty (or Master Builder) can be worthwhile - if only for resale.