David Whitburn

It’s been a great last couple of days. Had a great dinner and leaving party for a friend I have known all my life (since our parents are great friends). The All Blacks won convincingly vs France 61-10 (although superstar Ali Williams’ jaw may not agree quite so much). And Rafael Nadal one of the greatest ever tennis players on clay beat world #1 Roger Federer in the French Open Final ==> what a game.

We are closing in on a mega trade deal at the moment. You will know my belief that in todays market to thrive that you need to create the deal. So we are seeking to solve another person’s problems.

DIY Superstar wannabes

The problem the vendors have is that they wanted to improve their home, but didn’t want to follow the rules, or know the rules. You need a building consent under the Building Act 2004 whenever you do structural work to a house.

They have put in some extra windows, stairs, ranchslider and a kids playhouse high up off the ground with no handrails. Sadly for them their jealous neighbour dobbed them into the council and the council investigated and found the work required a permit and they have therefore done illegal building work. They then got a letter from the council giving them 6 weeks to remedy this (ie restore it to what it was permitted to be). They did not oblige and even told the inspectors that they have improved it so much any council would be foolish to prosecute, or they will call Fair Go. Well they did this and Fair Go was not interested funnily enough. Unfortunately for them they have been issued a notice to fix giving them 4 week to remedy this or else – be forced to (by a court order). Don’t comply, then the house may be shutdown.

So since they spent their money on an illegal thing (unpermitted reno) they have run out of money to restore it. So these DIY wannabes have failed and because they did not know the rules they are sacrificing many tens of thousands of equity to us (the highest offerers on their property). It needs to be sold before it becomes a big problem, we will simply spend the $7-8k to get it fixed, then build a minor dwelling there too.

So the house goes to auction. We like auctions for non-standard properties as the fact it is different scares most people. There is far less competition and seldom a decent bid. Also on Saturday you will recall in Auckland that we had some tremendous downpours in the afternoon, and the cold southerly didn’t help bring the punters along to the open home.

So we were the only bidders and true to form were below the vendors. So our agents are in the final stages of crunching a mega deal at the moment.

Most prospective buyers don’t like things with a twist. It is “too hard”, “too cold”, “too wet”, or “too scary” or insert any other excuse why not to buy a property to make you $100K in 9 months.

The morals of the story are:

1) Don’t brag too much to your neighbours
2) Knowledge is power – if doing structural or any building work, speak to a qualified builder or architect
3) Go to auctions when it is a miserable day or the property is not a standard one

There are some great deals out there if you persist and know what you are looking for.

Post-Script:
Auckland based property developer/investor/trader/mentor Sean Wood got fined $30,000 in June 2008 for unconsented building works. Sean Wood’s company City Link Properties was granted a building consent based on plans to extend an existing house. The company submitted a plan to build an upstairs bedroom with ensuite and a four car garage. Instead five rooms were built upstairs and part of the garage was turned into a living area – leaving room for only two cars. Manukau City Council Compliance and Enforcement Manager Kevin Jackson says he is pleased with the sentencing as the building work was over and above what was originally submitted:

People can’t put in one set of plans to the council then do something completely different and hope to get away with it. I am disappointed that this was an experienced property developer who knew the rules but chose to break them.”

Source: Manukau City Council website and New Zealand Herald

Sean Wood’s court fine and subsequent adverse media publicity will not doubt get more attention from Peter Aranyi that has a desire to criticise other property education providers repeatedly, in an flawed attempt to set his company apart.  Therefore it appears a bit strange that Sean didn’t strive to comply as he had a lot of time and a number chances to rectify this well before it went to court.

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