No easy fix for leaky home woes

I don't believe there is any one way or any one person who can fix our leaky-building issues, with a positive result for all parties who are affected financially.

A holistic approach needs to be taken and I expect all parties are going to have to hurt a little more before anyone sees positive results.

Ultimately, we need affected homes to be reclad and issued with Code Compliance Certificates by councils. Ideally, homeowners should end up with affordable debt levels. Without fixing the problems, the value and saleability of these properties are reducing further as time goes by. Once fixed, the home is more sellable and people can move on with their lives. If the owner can't afford their extended mortgage, they at least have a home that can be sold.

Affected homeowners are certainly hurting; it is their equity component that first gets eroded as the value of a home falls after being diagnosed. Banks also hurt if the value of the home falls below the amount financed to the homeowner, or debt increases to unsustainable levels.

There are some homeowners who remain with their heads in the sand, not willing to get on-board with the process. If they are in stand-alone properties, they are not affecting others, but for those in larger developments where owners must act together, the process is being slowed or is unable to move forward.

To read the full NZ Herald article, click here

Posted: 27 Nov 2010

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