Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

A Solution To The Auckland Housing Crisis - Sell Instead Of Demolish

The Auckland housing market has been a hot topic of contention for the past decade. As time has gone on, people looking to make their way on the property ladder for the first time have become increasingly frustrated as the median house price continues to skyrocket with no ceiling in sight.

There is little evidence that this trajectory is likely to cool or correct anytime soon and it is becoming apparent that our approach to housing may have to change in order to accommodate it.

But what has caused this crisis? There are several factors at play contributing to the increase in house prices across Auckland. Firstly, the population of New Zealand’s biggest city has exploded in the last decade. This increase in population is projected to continue onward and upward, with an increase of 648,000 people between 2018 and 2048. This would take Auckland’s population from 1.6 million to over 2.3 million, putting tremendous pressure on the housing supply, which continues to lag behind and not meet the demand.

Historically, housing and property have been a gateway into financial stability. It’s a proven long-term investment that many generations have used as a means for preparing for their golden years. However, given the fact that this has been a proven method and coupled with a supply and demand bottleneck, the demand for investment and speculation in the real estate market has pitched investors against first home buyers.

A lack of supply drives house prices up, and house prices being driven up justifies the further investment. It is a self-fulfilling cycle with no end in sight… or is there?

Relocatable Homes Could Be A Major Part of Solving Auckland’s Housing Crisis

As we have established, one of the biggest stresses on Auckland’s housing market is the supply. The population and investment interest far exceed the number of homes being built every single year. While there have been governmental incentives relating to new home builds for first home buyers, the speed at which these homes are being constructed does not meet the demand.

On the flip side of the demand for homes are people looking to take advantage of the hot market. There is a consensus that part of the solution for Aucklanders getting into homes is increasing the density of housing. This means that people with substantial sections of land from a bygone era can potentially subdivide and make room for additional houses.

But perhaps the section isn’t subdividable, but it is still in a great location. This is especially true of older sections that were built to be in the perfect location, close to conveniences or amenities. In these cases, you may wish to build a new, modern home that is in alignment with the value of the section and surrounding area to receive a greater return on your investment.

Whether you’re looking to modernise or subdivide, these larger, precious sections usually have a commonality - the home on them may no longer reflect the value or potential of the land underneath it. Most people’s knee jerk reaction is to demolish these homes, but what if they can be put to greater use? What if these older unique homes can house a first home buyer, getting them on the property ladder and creating additional revenue for you?

The Cost of Demolishing Your Home

Financial

The cost to demolish a home varies depending on the scale and complexity of the building. There is one thing you can be assured of - unlike selling your home for relocation, demolition comes at a cost directly to you. Estimates can range drastically, from approximately $8000 for a standalone studio with minimal internal stud walls, to well over $30.000 for a multi-storey house over multiple levels of ground. And that's just the demolition itself.

Other factors that go into the cost of demolition include how easily the property is accessed, proximity to the neighbours and any presence of asbestos. Coupling this with post demolition earthworks and demolishing a home can end up costing significantly more than most people expect.

Environmental

It is everyone's responsibility to keep the New Zealand environment as surreal and beautiful as possible. Demolishing a house can create over 25 tonnes of debris and waste that fills up landfills, putting a dent into our ecosystem.

Emotional

Older homes have a sense of character. They stand as places that have been used to create memories and as time goes on, owners look back on their time spent there with fond recollection. The idea of demolishing such a thing can often carry heavy emotional weight, especially when the home can be sold to a new person or family to begin to create their own memories.

Historical

The early homes of New Zealand were all unique. Prior to the mass production of homes, every nook and cranny was carefully considered and planned to suit whoever the home was being built for. The Victorian-style villa homes are a reflection of New Zealand's heritage and are often built with native hardwoods that just aren’t present in modern homes. This sense of history is worth saving, especially if the new owner is going to take the time to restore and maintain a little bit of Kiwiana history.

Selling Your Home For Relocation is a Win-Win Situation

In this age of consumption, people are becoming more aware of the damages of single-use commodities. As more strain is put on the planet's resources it is becoming important to reuse and recycle. While your home may no longer suit your needs, it may be the perfect abode for someone else, and demolishing it is a huge potential loss.

Selling your home for relocation allows you to avoid the cost of demolition, providing you with the space you are after by removing the home from the section, whilst also putting cash in your pocket. While demolishing a building can be a costly affair, selling a home for relocation kills two birds with one stone - it removes the house from the land allowing you to rebuild, develop or subdivide, and put money in your pocket towards the project.

Furthermore, relocating homes helps with the Auckland housing crisis by feeding into the demand for housing. It provides another entry into the supply chain providing you with a cash incentive to help potential first home buyers find their way onto the property ladder. As we addressed earlier in this article, fixing the supply is paramount to getting the city out of a housing crisis, so why not help others find financial stability through property ownership whilst making a tidy profit for yourself?

Removal Homes Are Auckland’s Home Relocation Experts.

Selling homes for relocation is a huge step in fixing the supply issue for Auckland’s housing crisis. Removable Homes take care of the entire process, appraising your home, purchasing, and providing all the logistics to have it removed from your property either onto our yard or directly to its new destination. We pay a fair price for homes and allow you to sit back and relax while we take care of all the challenges of relocating your house, no matter the size or complexity. For more information about selling your home for relocation, visit www.removalhomes.co.nz.

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 



Air New Zealand: Relaunching 14 International Routes In 16 Days

Air New Zealand is gearing up for the busiest July in two years with the relaunch of 14 international routes in 16 days... More>>



Inland Revenue: Update On Hidden Economy Real Estate Campaign

The Inland Revenue campaign focussing on the real estate sector has resulted in a drop in the amount of private expenses claims being made... More>>



Westpac: Consumer Confidence Plummets To Record Lows As Financial Pressures Mount

The Westpac McDermott Miller Consumer Confidence Index dropped sharply in the June quarter, falling 13 points to a level of 78.7... More>>


BusinessNZ: NZ Economy - Prevailing Headwinds
The latest BusinessNZ Planning Forecast reveals business and consumer confidence is low, with factors at home and abroad hampering our recovery... More>>


Specialist Cheesemakers Assn: Shared Cheese Heritage Should Be Shared Not Stripped

As the EU-New Zealand FTA advances New Zealand cheesemakers are urging both Governments to recognise and celebrate the shared cheesemaking heritage that exists between European countries and New Zealand... More>>

Download Weekly: $60 million for more rural connections
David Clark, the digital economy and communications minister, announced the government will spend $60 million to further improve rural connectivity over the next few years... More>>