House prices were up nationally in December 2018 by 1.5% compared to December 2017
The new median price is $560,000. Auckland also saw an increase but only 0.2% to a new median of $862,000. The Bay of Plenty was the star achiever for December with a new record median price of $610,000 which was a 2.0% increase.
Every region in New Zealand had a price increase in December which was the first time this has happened since June 2017 – 18 months ago. Auckland recorded the highest price for 9 months. For all those that think house prices are going to fall, take a look at this:
Annual Price Increases Jan-Dec 2018 by Region
West Coast 18.4%
Manawatu / Wanganui 11.7%
Hawkes Bay 9.3%
Bay of Plenty 2.0%
With a shortage of houses, a shortage of builders and higher building material costs it is not logical that house prices will fall.
Congratulation to John Potgieter on achieving the top international award for inspections – Presidents Club.
Home Inspections – An Unregulated Industry
Buying a home involves a very large financial transaction. It is vital for the purchasers future financial well being to be sure that the property they are buying does not have any serious defects. This can range from weathertightness issues (a leaky / rotting home), Methamphetamine (Meth or P) contamination to a series of other defects.
Buying a home with serious defects can mean thousands, tens of thousands or even hundreds of thousands of dollars in expense to put it right. In extreme cases such as leaky homes or serious Methamphetamine contamination the whole building may need demolishing.
Insurance will not always pay out and have exclusions and limits in household policies – especially when the buyer has not taken reasonable steps to ensure what they are buying is OK. A home inspection and a meth contamination test on any property being purchased would it seems be an essential precaution.
But can you rely on the home inspection / meth test you obtain? The home inspection industry is unregulated and anyone – no training, no qualifications, no building inspection insurance can be a house inspector in New Zealand. This is a crazy state of affairs but it is true.
Lawyers and Real Estate Agents have to be licenced, are part of a professional body, undergo continuing education and operate to a code of practice to protect the public. As already stated nothing is required to be a home inspector. This has lead to a lot of untrained, unqualified home inspectors operating in New Zealand.
Some are ex-builders who think that because they were a builder they are qualified to conduct home inspections. Unfortunately for the house buyer this is just not the case. A qualified home inspector studies for hundreds of hours and has to pass exams to become a certified home inspector.
Home inspectors are trained to check not just builders work but also plumbing, electrical, heating and ventilation and much more – an ex-builder is not. In the USA, Canada and many other countries home inspectors must be licenced to operate.
To obtain their licence inspectors must pass home inspection exams. In addition to these there is a professional body called the international association of certified home inspectors (InterNACHI) which is the worlds leading professional body in over 80 countries world-wide, including New Zealand.
You know that any member of InterNACHI is fully trained and qualified as a home inspector and has to undertake 24 hours of continuing education, training every year and must retake the InterNACHI membership exams every 3 years.
In addition to being fully trained, qualified and a member of a professional body, it is vital that a home inspector has professional indemnity insurance for home inspections. Do not mix this up with professional indemnity insurance for being a builder.
Home inspectors insurance – are you covered?
Insurance as a builder costs a few hundred dollars per year and does not cover home inspection work. Professional indemnity insurance for home inspectors costs thousands of dollars per year. There is no New Zealand based insurers so many operating as home inspectors are not insured. All A Buyer’s Choice Home Inspectors in New Zealand are:
- Fully trained, have studied and passed exams to certification standard.
- Are members of InterNACHI.
- Hold Professional Indemnity Insurance ($2,000,000) as home inspectors.
- Are trained and insured for Methamphetamine sampling and testing.
- Conduct all inspections according to NZS 4306:2005 and issue a NZS certificate with every inspection.
It is very long overdue for the home inspection industry to be regulated – for the publics protection. In the meantime choose A Buyer’s Choice Home Inspections for your own protection.