Shaky building warning
Property investors are being warned they may face substantial building costs if they own pre-1965 buildings that do not meet new earthquake-proof requirements.
Monday, January 23rd 2006, 12:00AM
by The Landlord
Changes to the Building Act have raised the standard of what is now considered earthquake-proof, and as a result, local councils will have to identify buildings that do not meet the revised criteria and order strengthening work. Owners of some commercial and multi-storey residential blocks built before 1965 will need to carry-out strengthening work.
Property investment analyst Kieran Trass says the impact on owners is could be similar to that of the "leaky building" syndrome. He says owners of a so-called shaky building could face costs of $50,000 - $100,000 per storey to carry out strengthening work.
He says the values of so-called shaky buildings are likely to fall but will rebound once the repairs are done.
Wellington mayor Kerry Prendergast says "shaky building syndrome" will affect more than 4000 property owners.
She says Wellington ratepayers will have to pay at least $1 million to do an initial assessment on more than 7000 buildings and it is likely about 4500 will not comply with the new laws.
Wellington and Auckland City Councils say draft earthquake-proof building policy plans are going out for consultation next month. Christchurch City Council's is already out for consultation. The plans need to be in place by May.
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