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1% Impact Of Timber Price Rises On House Costs

MEDIACOM-RELEASE-NZ-TIMBER-INDUSTRY-FED

TIMBER PRICE RISES WILL EFFECT HOUSE COSTS BY LESS THAN 1%

Some extravagant and grossly misleading claims are being made about the effect of timber prices on house costs.

According to the President of the NZ Timber Federation, Bruce Anderson, this is causing unnecessary scaremongering amongst homeowners.

"Some lines of timber in some markets may rise by 5%-8% in the next few months and even then prices would still be below price levels 7 years ago.

And the Building Research Association has advised that even if timber prices rise by 8% the cost of the average home would increase by less than 1%. Claims made on TV One News that the cost of timber in a house could rise by $10,000 were quite misleading.

The actual dollar cost increase for the average house would be no more than $1500.

In many cases the wool content of a house costs more than the timber content.

That house costs are made up of mainly timber is a popular misconception - they are rarely more than 8%.

The example used by TV One referred to a verly large house and they had included the cost of timber crib walling - hardly part of the house. New Zealand homeowners should be reassured that our timber is very competitively priced and will remain the natural material of first choice for those who enjoy a quality home".

ENDS....



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