Build now 'and save $10,000'

Now is the best time to build a house to beat potential cost rises that could add thousands to the price tag, according to PlaceMakers chief executive John Beveridge.

Building prices would rise over the coming months, including increased timber costs which were likely to add $1000 to a current build and another $1000 in the winter, Beveridge said.

Taking all potential cost increases into account, including labour and a rise in GST, the cost of building a house could rise by $5000 to $10,000, he said.

"I would say that that's being fairly conservative," he said. "We're really saying, 'hey if you're in the market there's more factors in favour of building now than holding on for another six months'."

There had been a stimulus package in China, while Russia had been less active in exporting logs, Beveridge said.

"The demand from China and Asia in general has pushed the prices of logs up substantially."

Agricultural market analyst Agrifax said the volume of log exports for the year to February was more than 9 million cubic metres - a 59 per cent increase on the average for the previous four years.

To read the full NZ Herald article, click here

Posted: 22 Apr 2010

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