Auckland’s housing market soars to life

Auckland’s property market ended 2019 on a high, new data from the Real Estate Institute shows.

The number of residential properties sold in December was up 12.3 per cent from the same time last year, at 6285. Real Estate Institute chief executive Bindi Norwell said that was equal to an additional 22 houses a day.

Prefab Housing, Is It The Way Of The Future?

Owning a home is of great importance to people. Potential homeowners are more interested in cost-efficient, greener and smarter homes all at once. The application of architecturally designed house has been going for a while. Starting from modular expansion to container homes and panellised housing-prefab housing has made quite an impression in the construction industry. The demand for prefab housing is expected to expand by 15% yearly reaching up to 1.1 million units by the year 2020. Modern prefab homes can be built quickly in a controlled environment and then transported to be assembled at its end location. It’s fast assembled time, improved functionality, flexible designs and cost-effectiveness offer a realistic opportunity to keep driving demand. With the innovative approach to architectural design and functionality, improvement in the prefab housing concept has led to the development of this designer prefab houses. They are without a doubt the future of building construction. Here are further features of prefab housing that indicate that this method of housing has really come a long way and is the way of the future.

Ability to be transported, disassembled, and relocated

Prefab homes are constructed indoors and can be transported to your location where it will be assembled within a short period. Whether you want a bathroom redesign, prefer to live in the countryside or town, prefab home can be constructed to suit your needs then delivered to your desired location. Another great benefit of prefab housing is the convenience it provides. With its components constructed off-site and fast time of assembling in your preferred location, the time taken to build is shorter compared to the time taken to build traditional homes. When constructing on-site, excavation carried out by excavation companies is carried out, all the foundation work is also carried out then the first floor is built, and then the second floor etc. with prefab housing, while the homes are being constructed in indoor factories the foundation work can be done simultaneously which is a huge time saver.

You will be provided with enough time to settle into your new home armed with the flexibility traditional homes won’t provide. In addition, if you decide to move to another location, you will be able to do so without having to look for a new house. Ensure you settle for the best home builder.

Quality designs by world-class architects, designers and artists

Another benefit of prefab housing is the ability to customise. Since the whole house design will be carried out on an architecture software, homeowners have the opportunity to clearly indicate their preferences such as type of flooring in each room, number of rooms and what the angle of elevation for the ceiling should be. Ensure you discuss with your home suppliers, architectural builders and building contractors to get a picture of what your future home will look like. You will be given a broad range of designs to select from. They could be ready-made home designs made by leading architects and designers, you just have to choose a design that suits your taste and preference. Prefab housing gives you the flexibility with the input of prefab technology which would be very hard to achieve with the traditional stick frame builds. 

Greener options

The use of an architectural software to design before the start of construction helps reduce construction wastes. Some factories adopt a policy of recycling and renewing materials. Homeowners prefer greener homes and most prefab construction encourage the use of green materials in their construction. they range from energy-efficient windows to engineered wood and insulated walls. These innovative materials help homeowners enjoy a green-friendly environment without having to give up style and aesthetics. It is without a doubt that Prefab housing is the way of the future. The innovative architectural approach, exceptional convenience and green-efficiency are helpful features no homeowner would ignore. As prefab housing replaces traditional builds, there are more reasons to believe prefab homes are future-ready.

Controlled assembly line

Other benefits of prefab-housing are tied to the assembly line. If factories are located in places with unpredictable weather changes and heavy rainstorms, the ability to construct prefab homes within an environment with regulated temperature is a boon for efficiency. Maintaining quality control is achieved through the standards set in factory working while opening the construction industry to a supply of less-skilled labour. There are some ways various factories can become properly suitable to adopt the digital age of prefab housing. Unlike conventional construction methods where adjustments can be made to design onsite, the strength of prefab housing lies in set standards. It is important to know that implementing clear standards that enable broad prefab housing projects to progress with full support will require all project members to make an effort to collaborate, share data and updates regarding architectural design and supply chain management.

Use of innovative technology

The construction of prefab housing in indoor facilities prevent the materials from unforeseen weather changes. This process cuts down the build time, which is something that is usually hard to achieve in onsite construction as weather changes cause delays in construction. In addition, prefab housing boast of superior quality in construction materials. Their factory manufactured parts are known to be designed with cutting-edge software. Most prefab factories work with an in-house engineering team that makes use of computer-aided design. This innovative technology enables homeowners to envision their dream home before the construction materials are worked on. Making use of advanced technology in prefab housing also leads to a higher in the construction industry. 

The prefab housing system gives way to new ideas, it would operate alongside an online platform for developing management and an advanced method of service for homeowners. In this way, it is expected that old urban construction models embrace innovative ideas that will unlock the true potential of prefab housing no matter the scale. Accommodating change in one’s life involves being flexible since prefab housing has this key element it may play a greater role in the future of housing.

2020 Trends In The Building Industry

The building industry is ever-booming around the world. That’s what makes innovation so necessary to keep up with competition. But in construction, things evolve slowly and old habits often persist year after year. 

New technologies however offer new opportunities to reinvent the building industry. And with the ongoing climate crisis, this has to be done in line with the protection of the environment.

Here are 5 trends that will shape the building industry in 2020.

  1. Ecological construction

Also called sustainable construction or eco-construction, this environment-friendly trend will be the future of architectural design. The aim of such green building is both to reduce the carbon footprint of buildings and decrease the stock of resources used for their construction.

Eco-construction is part of a global approach that goes from the design of the building to its use, including its construction. It also takes into account the lifespan of the building, especially in terms of demolition, rehabilitation and recycling of materials.

The building industry is also increasingly shaped by a set of good practices coming from the circular economy. One of them is to reuse materials from deconstruction and surplus sites. This concept is inexpensive and greatly reduces the environmental impact of materials by giving them a second life on new construction projects. It’s also possible to purchase second-hand materials from online marketplaces such as Backacia, a France-based start-up allowing professionals to find items as diverse as first aid supplies, poly tanks and centre console boats for sale and come pick them up directly on site.

So far, green building remains a luxury thing, but this trend is bound to change over the next few years. Indeed, the global market for sustainable construction is huge. Buildings still account today for 40% of the global energy consumption and 30% of greenhouse gas emissions.

Building in environmentally-friendly ways demand to use eco-materials to create more energy-efficient buildings. Wood combined with straw for better insulation, bamboo for carpentry, walls and roofs, eco-materials provide multitude benefits for builds that do not harm our living environment.

  1. Augmented reality

Augmented reality may be innovation that will completely change our working practices in the building industry. The AR is a technique that superimposes, in real time, reality and various elements like images, sounds, videos, etc. Applied to construction, this technology can be used in many ways.

It allows to visualise a project in real condition. One can, for example, virtually overlay a building on a site in order to have a more precise vision of the progress of the work and thus reduce error margins. In the same way, augmented reality can be used to visualise a plan or colours on the walls without hiring master painters.

This technology can also prove to be a very valuable tool for sales support. It allows buyers and builders to project themselves more accurately, and even make a virtual tour of future constructions.

Many augmented reality applications are regularly emerging, and according to certain estimates, this market is expected to reach 100 billion dollars by 2024.

  1. Builder robots

Like many other sectors, the building industry won’t escape the massive arrival of robots. Many of them are used to increase site safety, but some can also perform tasks previously reserved to humans.

This is the case of In-situ Fabricator, designed by the EPH Zurich. This robot is able to assemble bricks to make a wall in total autonomy. It consists in an industrial arm placed on a rail system and powered by a diesel engine. Thanks to a laser, the robot is able to scan the space around it and thus be able to direct itself without human intervention.

Along the same lines, the American company Built Robotics has recently designed the first 100% autonomous excavator. The principle of this machine is identical to that of driverless cars. Like a classic mini-excavator, it can dig a building foundation or clear land as quickly as if an operator was on board.

While robotics can easily replace human workers and reduce labour costs, most of these machines are actually being developed to reduce workers efforts. Brick robots, for example, work alongside masons to increase productivity and reduce fatigue.

  1. Drones

The use of drones in the building industry is one of the fastest emerging trends. According to a study by consulting firm Oliver Wyman, the market for professional drones doubles every year. In addition to simple aerial photography, drones are increasingly used on construction sites.

A drone can be extremely useful for designing constructions. It is equipped with a GPS that can take pictures from the same point of view, throughout the progress of the work. It can also be used to perform terrain reconnaissance or building inspection. It does the same job as a helicopter, but more quickly and cheaply.

Eventually, drones are also useful for monitoring construction sites. Thefts and degradations remain major problems in the construction industry. Billion dollars’ worth of equipment are stolen each year, and millions are paid to cctv pipe inspection contractors. Drones are therefore increasingly used as safety tools or for local area traffic management, and remain less expensive than security guards.

  1. Building Information Modelling

By 2050, 2.5 billion of us will live in urban areas. Infrastructure needs will increase exponentially and construction will be a prime concern. Hence the digitisation of operations will be essential to face its challenges.

We cannot deal with the digitalisation of construction without taking into account Building Information Modeling (BIM). It is a design process based on information sharing throughout the life of a building, from design to demolition. Based on a 3D model, which contains intelligent and structured data, as well as a digital model, it allows builders to generate computer representations of infrastructures. Thanks to the constantly updated model, construction costs are controlled better and optimised.

With BIM, it becomes possible to visualise very early on the various components of a project. It allows a better quality of design and to detect potential problems even before starting the building construction.

Property developers fined $123k

The High Court at Auckland has ordered FFG Investments and Grand Sky to pay the penalty, and $10,000 in costs, following an investigation by the office, according to a statement just issued.

Adventure park plans probed

Perry Group wants to use the 62-hectare riverside site for its Te Awa Lakes development, but it’s currently industrial land.

The people who will decide if the Horotiu site’s zoning can change began a hearing at Hamilton City Council on Monday.

Tasman’s economy strong

According to the latest Infometrics Quarterly Regional Economic Monitor, Tasman took out top spot as the strongest-performing regional economy over the past 12 months to September 2019 – expanding by 3.2 per cent.

Going Bush – How Rural Property Can Increase Your Portfolio

A major reason real estate investors don’t expand into more property is because they don’t know how to manage their portfolio. Understanding how to increase your real estate portfolio is crucial for your success. It involves more than keeping a collection of your investment assets. Adding some rural property, for example, to your portfolio can improve your investment returns in the long run. 

Rural property is a great portfolio diversification owing to the fact that it’s a hard assets and its long term performance is one that’s difficult to argue with. Investing in rural property can be very scary for a lot of people, but if you implement the right strategies in your investment, you will be able to expand into more property and increase your portfolio. The following tips can get you started:

DIVERSIFY WITH FARMLAND

Purchasing farmland as an investment is a long-term project. To get the most return, a majority of investors usually buy land and hold it for a long period. Some big investors even hold land for up to 10+ years to generate the most return on their investment. Keeping an account of how much you can spend is an important process when buying farmland. One great benefit of purchasing farmland is the ability to have land as a tangible asset. This can be of utmost importance when a portfolio is deeply invested in the stock market. 

Another great benefit you can derive from farmland investment is the tax deduction which can be tied with depreciation. A majority of farms improvements like barns, irrigation pivots can depreciate. You can depreciate some of them to offset yearly taxes. It’s best to consult with a professional to make informed decisions about your farmland investment. After the farmland has reached potential or if you’re ready to purchase a new investment, you should consider putting up your farmland for sale. When you purchase farmland as an investment, selling the asset is just as important as purchasing it. You have to get the right farmland professional to elevate your sales price, qualify buyers and provide you with the confidence you need to close the deal.

INVEST IN COMMERCIAL PROPERTY

In order to take full advantage of your rental yields and increase your portfolio, it will be of great value to invest in sectors that are of high rental demand. Buying commercial property can be a really great way to diversify your real estate investment portfolio while spreading the risk of your investment. Rural areas offer cheaper commercial property for sale and investing in a high rental yield property can provide limitless ways to generate returns. There are different ways to finance your commercial property investment, it can be an investment property mortgage, portfolio loan, hard-money lending etc. 

When investing in commercial property, a majority of private investors make use of their SMSF and this doesn’t happen without risks. When you consider the trade-off of low capital growth rates associated with high rental demand properties, you will realise the importance of getting a property investment advice from a reliable  real estate professional. Investing in commercial property can generate huge returns, provided you implement a thoroughly researched and risk-measured strategy that doesn’t exceed your budget.

INCREASE THE VALUE OF YOUR PROPERTIES

If you’re looking to purchase an old rural property (maybe for a cheaper price), you should know that you can increase the value of your property by doing minor or major renovation works. A roof change and a coat of fresh paint can make a great difference when it comes to increasing the value of your property. This can also increase the rental income and create a steady cash flow. 

Don’t be discouraged by the appearance of an old property. It is a great opportunity to get it at a discounted rate. As you increase the value of your property, you will also be increasing your rental income which will enable you to service more properties. At this point, your equity will also increase which you use to purchase more properties and increase your portfolio quicker. The speed at which you purchase more property is dependent on the value you add to it. The increase in value is often enough to provide for a deposit that you may almost forget about saving for one. 

HAVE AN INVESTMENT STRATEGY

Having a good investment strategy in place enables you to create a list of the things you want in a property. This way, you will be able to narrow down your market from every property to only the properties that will work for you and your strategy. It makes it much easier to buy the right property. Less time is spent, you quickly make more money and increase your portfolio.

One thing you should know is that not every property is a good investment. It may seem like a good investment for another person but it  might actually be a bad investment for you. Some investors just go out and purchase any property without considering their long term investment plan. They are only after the money. This shouldn’t be your case, though it might work for a property or two but if you want to purchase more property and expand your portfolio, then it’s important that you have a good strategy of how to generate a steady cash flow and what your long term goal is.

DEVELOP A POSITIVE CASH FLOW

One of the major reasons investors don’t purchase more property is that they spend a lot of money into purchasing one property, limiting their ability to purchase more property in the process. A better way would be to create a positive cash flow in each investment which they can use to re-invest. 

The bottom line is that if you consistently invest in positive cash flow property, servicing your loans would be made easier and you will be able to purchase more property. You can look at it this way, you increase your disposable and passive income with every property you buy.

Why You Should Let The Experts Deal With Your Investment Property

You want to sell or purchase an investment property and you wonder what an expert can bring to the operation?

Leaving it to real estate experts can provide many benefits. Thanks to their knowledge of the local market and the regulation, you can more serenely sell or purchase a property, at a much better price and faster than if you were alone in this!

Get the real value of a property

Sometimes it is difficult to give an objective value to a property, more so if you are planning on selling a home where you lived for years. You will probably find it hard not to think about your purchasing price, the work you have done, the good times you have lived…

A real estate agent can better assess the true value of a property based on its objective characteristics, condition and location. Experts usually have access to the latest real estate sales prices, not just the prices displayed in the listings. With this information, they will be able to provide a fair estimate.

Of course, the higher the price of the property, the higher the commission of the agent. But his or her goal is not to overvalue the property, because it could slow down or prevent the sale.

In addition to helping you target your search for an apartment for sale, a local expert will also help you assess the growth potential of each area.

A real estate specialist can fully inform you about the price per square meter that is usually practiced in the area you are targeting. When choosing the real estate agency that will help you in your research, think about picking an agency located close to the area that you are targeting.

Benefit from professional services

To entrust the sale or purchase of a property to a single real estate agent, you must often sign an exclusive mandate. You can use several agents through a simple mandate, but multiplying the number of stakeholders won’t speed up the sale.

A real estate agent commands all stages of a real estate transaction and can advise you at any time. Processes within a body corporate administration are usually optimised. He or she will support you in the preparation of real estate ads for your home, or train you to present yourself as an investor.

Home staging, professional photos, 360° visits… Many real estate agencies like property managers in Wellington now offer these services for a minimal cost as compared to the price of the sale.

Reach a larger pool of buyers

Once you have determined the sale price of the property you are planning on selling, your real estate agent will establish a communication plan in order to advertise your property. The goal? Let the whole world know about the sale of your property!

Many buyers consult real estate listings on the internet. Alone, you could put an ad of your home for sale on some websites, but it is a tedious and often expensive operation. Thanks to a real estate agency, your ad will be distributed on these sites, but also on many other reserved for professionals, and possibly on flyers for the city residents or magazines published by the agency.

Not to mention that the agency can work with a shared file system within its network. For you, nothing changes; you stay in contact with a single agent but your ad is distributed by several agencies, so potentially seen by more potential buyers.

If you want to benefit from innovative services that will enhance your property and bring you serious buyers, you must contact a real estate agent.

Let them handle visits and negotiation

Selling or buying a property requires a lot of time. If you do not want to manage the calls and visits of future buyers and sellers, you better go through a real estate agency.

Any real estate operation requires a lot of time and energy. By choosing a professional, you also save yourself from tedious negotiations. The real estate agent will play the intermediary and will only communicate to you the offers that will satisfy you.

We have no doubt about your negotiating skills but one of the roles of the real estate consultant is to manage the negotiation of the sale price for you! This is the best way to increase your chances of selling and buying at the right price and as soon as possible!

In the case you are selling a property, a real estate agent will select potential buyers and check if they will be able to pay on time.

For a secure transaction

To sell or buy a property, one must provide many documents. An expert will adapt the price or conditions of sale, check the mandatory information, respect the withdrawal period, remember the best offer, stick to the body corporate rules

In case you are purchasing a property to rent, the management can sometimes become a nightmare. In that case you should find a property manager. In New Zealand, you will find plenty of agencies for Rental Property Management in Wellington.

Whatever the reason for your real estate operation, it generally triggers a lot of emotions and requires a lot of time and organisation. Entrusting the sale or purchase of a property to a real estate agency will allow you to live more serenely this important step in life.

No longer a zombie town

The city is shucking off zombie town accusations as newcomers buy up housing and boost consumer spending.

Median house prices across New Zealand reached a record high of $597,000, up from $560,000 in September 2018, according to the Real Estate Institute.