About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Sunday, September 22nd, 8:04PM
rss
Latest Headlines

No monolithic cladding, no price stigma

Investors worried about the value of a leaky home they own can take heart from new research showing there’s no price stigma when it comes to tactically remediated properties.

Thursday, June 27th 2019, 11:16PM

by The Landlord

It seems that leaky homes which have been fixed, made weathertight and reclad in non-monolithic cladding, like weatherboard, are selling for the same prices as unaffected dwellings.

That’s according to researchers from the University of Auckland Business School’s Department of Property.

New Zealand’s leaky home crisis has led to a stigma which is often attached to particular architectural features linked to leaky homes, like monolithic cladding.

This stigma, which is defined as “the blighting effect on property value caused by perceived risk and uncertainty”, comes in two forms.

One is a general stigma that people feel towards leaky homes and the other is “post-remediation stigma”.

This involves the perception that formerly leaky homes that have been repaired are more likely to leak in the future as opposed to “ordinary” properties that have never leaked.

Post-remediation stigma damages are often claimed in leaky building litigation, yet there had been no analysis to see if post-remediation stigma is a genuine phenomenon that affects property values.

The University of Auckland researchers set out to identify whether post-remediation stigma actually exists and if it does have an impact on prices.

To do so, they used detailed Auckland sales data combined with building consent information - to identify properties that were recently reclad – to analyse reclad homes against non-leaky home sales.

They found that houses that had been remediated and reclad using a non-monolithic cladding system showed no ill signs of stigma.

However, a general market stigma discount of 6% persisted where homeowners opted to install a new monolithic cladding system as part of the remediation.

This was a slight improvement on the 9% general market stigma discount found to affect monolithic-clad houses that had never undergone remediation.

Lead author Dr Michael Rehm says their study shows that post-remediation stigma does not exist in the Auckland housing market.

“It also sends a message to leaky home owners that they should tactically consider what cladding system they chose when recladding.

“Choosing to install a new monolithic cladding system versus an alternative will likely attract general market stigma and devalue their home.”
 

Tags: consents house prices housing market investment leaky homes property investment property values sales activity

« Free Investment Property Showcase Events: Auckland, Wellington and ChristchurchHousing team takes over from Twyford »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.19 4.15 ▼4.04 4.49
ANZ Special - 3.65 ▼3.54 3.99
ASB Bank 5.20 4.15 4.09 4.39
ASB Bank Special - 3.65 3.59 3.89
BNZ - Classic - 3.65 ▼3.49 3.99
BNZ - Mortgage One 5.90 - - -
BNZ - Rapid Repay 5.35 - - -
BNZ - Std, FlyBuys 5.30 4.45 4.35 4.55
BNZ - TotalMoney 5.30 - - -
China Construction Bank 5.50 4.70 4.80 4.95
China Construction Bank Special - 3.19 3.19 3.19
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 5.95 - - -
Credit Union Baywide 6.15 4.95 4.95 -
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct - - - -
First Credit Union 5.85 - - -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.80 4.95 -
Housing NZ Corp 5.19 ▼4.15 ▼4.09 ▼4.39
HSBC Premier 5.24 3.35 3.35 3.35
Lender Flt 1yr 2yr 3yr
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 5.65 3.85 3.95 3.89
Kiwibank 5.80 4.30 4.34 4.74
Kiwibank - Capped - - - -
Kiwibank - Offset 5.15 - - -
Kiwibank Special - 3.55 3.59 3.99
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 5.70 4.69 4.79 -
Resimac 5.30 4.86 4.14 4.19
Lender Flt 1yr 2yr 3yr
RESIMAC Special - - - -
SBS Bank 5.29 4.85 5.05 5.49
SBS Bank Special - 3.69 3.69 ▼3.89
Sovereign 5.30 4.15 4.29 4.55
Sovereign Special - 3.65 3.75 4.05
The Co-operative Bank - Owner Occ 5.15 3.65 3.59 3.99
The Co-operative Bank - Standard 5.15 4.15 4.09 4.49
TSB Bank 6.09 4.65 4.59 4.85
TSB Special 5.29 3.85 3.79 4.05
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.34 4.15 4.09 4.49
Lender Flt 1yr 2yr 3yr
Westpac - Offset 5.34 - - -
Westpac Special - 3.65 ▼3.54 3.99
Median 5.35 4.15 4.09 4.19

Last updated: 20 September 2019 9:30am

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com