Articles
MY KINGDOM FOR A HOUSE
provided by the Dominion Post
words - Jeffrey Philips
pictures - Stephen Wilson
Buy and live smarter – that's the advice Wellington building identity Colin Dallas gives to people who think they'll never get a foot on the property ladder.
Colin is a specialist in residential construction. He heads one of the Capital’s biggest house-building company, Kingdom Residential Housing (KRH). Since it was set up nearly 20 years ago, Porirua-based KRH has built more than 500 homes in greater Wellington.
Like everyone else, Colin's concerned about the uncertainty in the housing market after an unprecedented boom for most of the new millennium. But he believes property remains an astute investment long-term and reckons headlines about housing unaffordability tell only half the story. Yes, the cost of building a new house is historically high, he acknowledges, pointing out it has been largely driven up by environmental and legislative factors.
Lifestyle is another consideration, with people wanting to live close to town with all the trappings of consumerism.
"Today, people want everything with their first home," he says. "What New Zealanders have to understand is they can’t necessarily buy their first home in the best street or the best suburb."
"They may have to settle for living further from town and using public transport instead of their own car to save money and help pay the mortgage."
Colin says if people make owning a house their first priority, then they will find a way to buy one.
"They may have to buy into subdivisions where they need public transport to get to work. And they may not be able to buy all of their appliances brand new."
"We are currently building for clients who have got together with a couple of friends to kick-start buying their first property. They weren't able to do it alone but with a couple of friends, they can afford to do it."
"They will either live in it as flatmates or rent it out. Given that the rental market is increasing, this is a good option. There are also tax benefits for investors."
"Another way to get a start on the property ladder is for parents and their adult children to do a joint venture investment."
"By thinking outside the square, people can get a foot in the door of home ownership and enjoy the long-term benefits of property investment."
He cites figures that show household wealth per capita doubled from 2001-2006 after house prices jumped up to 80 percent.
"Property is still attractive if people are prepared to exercise the discipline to acquire it. Not only do you get capital gain off property but you are in charge of your destiny, which is an important consideration given the rash of investment company failures."
Colin says the Government and the building industry also need to think smarter if housing ownership is to increase in New Zealand.
"Overreaction to the leaky home syndrome has saddled the building industry and the public with red tape, consent delays and extra costs, making new houses less affordable."
"There's a great need to review the complexity of regulations to make consent costs more proportional and levies fairer."
Colin believes there should also be more incentives for people to recycle materials and preserve energy. He applauds the Government's drive to make houses warmer through improved insulation and double-glazing but wonders why there aren't more incentives for homeowners to invest in solar panel heating.
"We would like to think the Government would legislate for solar heating. It would shave money off the power bills."
"I'd encourage people to do it at their own expense. Even though it's a cost in the short term, it's making use of a natural resource – the sun."
"I’m a strong believer in doing anything that will help the environment."
KRH's environmental track record is testament to this. It has double-glazed for the past 15 years, insulates with Pink Batts, and uses acrylic paints rather than oil-based, and recycled concrete for paving.
"By thinking outside the square, people can get a foot in the door of home ownership and enjoy the long-term benefits of property investment."
KRH's showhome, at 1 Kahurangi Heights, Aotea, showcases the company's eco-consciousness.
"We've got to the stage where we design homes that are more environmentally friendly and use materials that can be recycled once the life of the home is over," Colin says.
"We're keen to see more materials recycled in Wellington, as happens in Auckland. There should be separate recycling of gib, iron and concrete."
"We also believe in New Zealand-made. We will source locally wherever possible – that's why our logo incorporates elements of the New Zealand flag."
Colin says KRH isn't just a company of Registered Master Builders. "We provide expertise in all areas of home building and project management."
KRH offers sections, an in-house architect, quantity surveyor, colour and kitchen consultants, landscaping design and completion, even mortgage finance to approved purchasers.
"By building new, you not only have the luxury of a seven-year Master Build guarantee and fewer maintenance costs but you are not paying for the gain the previous owner has made on the property," Colin says.
"The greatest capital gain is after you build new and sell the property for the first time."
He points out KRH increasingly is building homes for people who want to downsize from large family homes to enjoy a low-maintenance lifestyle with single level-living in subdivisions like Aotea, where KRH builds most of its houses.
"It's only 15 minutes' drive from downtown Wellington, is handy to all of Porirua's retail and recreational attractions, and offers generous building sites – 600 square metres-plus, with all-day sun – from $150,000."
It typically takes from 20 weeks to build a Kingdom Residential home from when the plans are council-approved, Colin says.
"Once it's designed, our project management system then takes control of the construction phase."
"We're a one-stop shop that can project manage everything and take the stress out of building a house."
"We've got to the stage where we design homes that are more environmentally friendly and use materials that can be recycled once the life of the home is over."
