The team at Scope Strata Management is looking forward to what 2019 brings. Whilst there has been much said recently (often conflicting) about the property sector, you only have to look at the number of cranes on the Auckland skyline, including the ones recently added, for the true answer. These cranes and our experience shows we are still in a strong property market. And the indisputable fact is that people still need a place to call home.
Nearing the end of 2018, we saw a small number of construction companies close their doors. We also saw some proposed development projects withdrawn – blaming the rising cost of construction and increased difficulty in finding experienced workers. It is worth noting however that the regular demise of construction companies is nothing new and often not without reason. These reasons can include over-extending in multiple projects, exposing unnecessary risk, which has certainly been the case with one company recently.
If you are considering purchasing into a new apartment there are some steps you can take to reduce your personal risk. These include checking the history of the developer and the builder. Do they have a reputable track record in delivering their buildings on time on budget, or do they have a chequered background? A simple internet search is a good starting point for this process. Obtaining a list of sub-contractors working on the building and the various warranty periods for main building items is also helpful to get an understanding of who is behind the development and what protection is in place. And obtaining a rental assessment of a unit under construction should give you a good idea of expected returns as an investment.
When a development is completed, in addition to the individual unit warranties, there should also be warranties for the building as a whole over and above the Code Compliance Certificates for each building consent obtained. As part of the requirements of the Unit Titles Regulations 2011 the developer also needs to provide a Turn-Over Disclosure Statement within legal time frames that includes a lot of property information about the development. This information is typically held by the body corporate administrator on behalf of the property owners.
Should you have any general questions relating to Unit Title (body corporate) property please feel free to give me a call, and I will be happy to assist you. In the meantime, we wish you all the best for 2019.