Home Inspection News – Issue 30

Congratulations to Duane Turner on achieving the prestigious Diamond Elite international award for inspections!

home-inspector

The story of September was one of rising house prices across New Zealand. The median NZ house price rose to $597,000 up 6.6% compared to 12 months ago.

New record median prices were recorded in:
Waikato $550,000 up 5.6% from September 2018

Hawkes Bay $500,000 up 13.4% from September 2018

Taranaki $400,000 up 15.9% from September 2018

Southland $315,000 up 22.1% from September 2018

Manawatu / Whanganui $397,000 up 24.1% from September 2018

The median house price rose across NZ by 2.9% and in Auckland by 3.7% from August to September. The Westpac bank is predicting that house prices will rise by 7.0% in 2020 with the biggest rises being in Auckland and Christchurch.

The reasons given are the scrapping of the possible capital gains tax and very low mortgage rates. Sales volumes were strong with the arrival of spring. Compared to September 2018 sales in September 2019 were:

Nationally +3.3%

Auckland +6.3%

West Coast +11.4%

Otago +12.0%

Tasman +45.8%

Properties for sale – inventory – levels fell in 11 out of the 15 regions in New Zealand, a fall of 7.3% compared to September 2018. Only Nelson +6.4%, Northland +4.9%, Marlborough +4.0% and Taranaki +2.5% had more houses for sale than a year ago.

Home Inspection Insurance

Professional indemnity insurance for home inspections is very expensive. Insurers regard the profession as high risk. It is pretty understandable really. Suppose an inspector reports a building is ok and it turns out to be say a leaky building. The remedial costs can be hundreds of thousands of dollars.

As a result there are very few underwriters for this type of insurance and  when they will provide cover their premiums are high. In New Zealand there is no insurance company that will provide home inspection insurance. A Buyer’s Choice Home Inspections is part of a world-wide franchise network operating in 19 countries.

Because of this we are able to source insurance overseas which is 100% underwritten by Lloyds of London. Annual premiums are over $5000 p.a per inspector. No A Buyer’s Choice Home Inspector is allowed to operate without this insurance.

As a house buyer or seller obtaining a pre-purchase / pre-sale inspection, it is vital that the obtained report must be credible and be able to be relied upon. Everyone getting a building inspection should insist on seeing the inspectors professional insurance covering BUILDING INSPECTION SERVICES before going ahead. Builders insurance does not cover this!!

Many companies claim to have professional indemnity insurance but it does not cover BUILDING INSPECTION SERVICES which leaves the customer uninsured. Because the industry in unregulated anyone can claim to be a building inspector so as the saying goes BUYER BEWARE!