The property market seems to be warming up after a long time, much to the relief of professionals and property owners.
Nationwide residential property values rose in July, according to the latest QV index. Values are up 2.2% over the past three months, 4.6% up over the past year, and are now only 0.8% below the previous market peak of late 2007.
In inflation adjusted terms, values are 13.1% below peak.
Jonno Ingerson, Research Director of QV said, “The relatively strong increase in nationwide values can be attributed primarily to an increase in the main centres, particularly Auckland and Christchurch.
“First home buyers are also active, spurred by low mortgage interest rates. This is starting to encourage property investors and small developers back into the market, although investors are now careful to ensure their purchases return a decent yield rather than relying on capital gain.”
Building consents have gone up from just over 3000 (residential buildings) in Auckland to about 4000 in the last 12 months.
The forecast is that it would peak to about 7000 consents in 2014, similar to the boom years prior to the recession.
If you are thinking about developing your property, get started right away.
Adding a granny flat or a couple of bedrooms, enclosing a deck, upgrading your insulation and double glazing your windows are some of the things you could consider now and saleable in the future.
Please contact your local council or a licensed architectural designer and check whether you need a building consent. Before you embark on your project, you should be aware of two acronyms, RBW and LBP.
Some of the renovation work could be done without consent.
Changes to rules
However, if it needs consent, in most of the cases, it is classified as Restricted Building Work (RBW), which came into effect March 1, 2012. This sort of work is complex, and should be done by a competent person.
Hence, all RBW must be carried out or supervised by a licensed building practitioner (LBP). If a designer is not an LBP, they cannot lodge a building consent for you. Similarly, Council inspectors will not sign off any work not done or supervised by an LBP.
The Government implemented these changes to help improve the quality of buildings, increase accountability and help in the professional development of the building industry.
RBW is critical to the integrity of a building. It ensures that the building is structurally sound, weather-tight and supervised by LBP.
Having RBW regulations ensures that your family home, often a New Zealander’s biggest asset, is protected.
Architectural Designers, Carpenters, Roofers, External Plasterers, Brick and Blocklayers and Foundation specialists should become LBP.
You can contact a licensed professional by searching the register on the website of the association or the Department of Building and Housing Licensed Building Practitioner register.
Bobby Banerjee is Director of Tarzan Design Ltd and a professional member of the Architectural designers of New Zealand. He is a Licensed Building Practitioner.
Phone (09) 8360576 Website: www.tarzandesign.co.nz
The above article should be taken only as a general guidance and not as specific advice. Mr Banerjee, Tarzan Design Ltd and the management and staff of Indian Newslink absolves themselves of any liability that may arise out of the above article.