Fri, 10 Sep 2010 11:40a.m.
Opinion by Brian Dalley
Housing can be affordable in any area of the country when one takes out the cost of land.
That is something I have been advocating for years but still get a cold shoulder from those empowered to make the changes required.
Although there is still a fair amount of red tape and a few hoops to jump through there is now a solution for people living like sardines in overcrowded accommodation.
Although not entirely new to the industry, “portable accommodation” has only just come into its own due to the gap between the cost of housing and affordability.
There are some that are knocking together boxes and renting them out, but what we have indentified through our research is a small group that are building units that are not too dissimilar to apartments and those are the companies we are aligning ourselves with.
The units range from upmarket sleepouts to self-contained accommodation units that can house an entire family, with ‘studio’ style sleepouts generating plenty of interest.
The self-contained units are hugely popular and it is our hope that the government will consider lifting restrictions they have imposed on this type of accommodation as they work through the review of the building code.
I have sent this article to the Minister of Housing to remind him that there is a very real workable and affordable solution just waiting for his approval and all its going to cost is a signature or two. The very people we are trying to help already own and live on the land required for this to happen.
Due to restrictions within the Building Act these units cannot exceed 10m², cannot include sanitary or cooking faculties unless resource consent is approved which can lead to fees and contributions in excess of the cost of the unit.
Outrageous really as the cost isn’t imposed for overcrowding. Yet the very people that want better “affordable” accommodation are being forced to live on top of each other when they own the very land that they want to utilise to achieve a better standard of living.
When talking to local councils about this they tried to justify the fees and contributions by saying it wouldn’t be fair to other rate payers if these fees were waived or reduced as they would be putting added pressure on the infrastructure and someone has to pay for this.
When I tried to explain the people we are trying to help are already living on the land and using the facilities, they simply quoted the building code.
I believe not only will these units go a long way to alleviate the problem of overcrowding in residential properties, but will also go a long way towards fixing a broken social culture. For example mum and dad could live comfortably in the self-contained unit at the rear of the family home and be there to help out with the kids or vice versa, bringing families together.
The issue of housing affordability has been with us for over two decades and is not going to go away, so the only way to sort this out is to think outside the square.
Many have found these units to be a great alternative to extending a home as that can be a costly exercise and at times can risk overcapitalising.
Investing in an accommodation unit is a much better option.
When the kids move out and you go to down size you can simply sell the accommodation unit. Yes, these units have good resale value.
A unit purchased seven years ago for $35,000 rented at $100 per week just sold for $18,500.
Although the accommodation units we are talking about are affordable, they are not the lightweight budget type. These units are designed and built to specifications as per the New Zealand building code so if you are interested we suggest you approach us for a set of plans and talk to your local council to see if they will allow you to position one on your property.
There are already many of these units located throughout the country but initially the target market was holiday campsites, – now I see a different path and it is for that reason I seek reform to open the doors to that market.
This in turn will lead to a more balanced lifestyle for many families barely coping being forced to live in less than desirable conditions imposed by bureaucracy.
If you do run into a brick wall with resource consent, the upmarket sleepout (being just less than 10m² - a good sized bedroom,) shouldn’t require consent or approval so could be worth consideration.
Should that brick wall appear, – remember, a mixture of empathy and brainstorming can move mountains so please don’t hesitate to contact us with your thoughts...
Brian Dalley is a former NZMBA Mortgage Broker, Property Investor, and Real Estate Agent with over 15 years experience in the industry.
You can read more of his and other professional’s views and opinions on his website www.propertyprofit.co.nz