Top 10 Property Deal-Breakers in New Zealand: Buyer Beware

Navigating the property market in Aotearoa can be a journey filled with excitement and anticipation. However, it's crucial to tread carefully, as certain factors can turn an attractive home into a property that may be harder to sell when it comes time to do so. Asking yourself these questions before offering on a property can save you hassle in the long run, as every hesitation that you have when buying a particular property, is likely to be reciprocated by your buyers, when you are the Vendor of said property:

1. "Can I envision a peaceful future for my family in this home, free from the worries of environmental and structural risks?"
2. "Does this property offer the sanctuary and well-being for long-term family living?"
3. "How will the location and condition of this home influence our quality of life and daily comfort?"
4. "Are there hidden costs or health implications associated with this property that could affect my family's security?"
5. "Will this home safeguard the tranquility and safety that are essential for my children's formative years?"

Here's a rundown of the top ten property deal-breakers in New Zealand, ranked by their potential impact on health, safety, and your wallet.

01. Methamphetamine Contamination

Methamphetamine (Meth) Contamination: The Invisible Threat

Methamphetamine contamination, often referred to as 'P' contamination in New Zealand, is a silent yet potent menace that can lurk in properties without any visible signs. This invisible threat has the potential to cause a range of severe health problems for the unsuspecting occupants.

Health Impacts of Meth Contamination

Exposure to meth residue can lead to a variety of health issues, some of which include:

• Respiratory complications: Inhaling meth residue can lead to respiratory problems such as difficulty in breathing and prolonged coughing.

• Skin conditions: Direct skin contact with contaminated surfaces may result in rashes and severe irritation.

• Neurological damage: Long-term exposure can potentially affect the nervous system, leading to mood disorders, insomnia, and other mental health issues.

Given these health risks, it's essential that you ensure any property you're considering is free from meth contamination.

The Stigma and Its Impact on Property Value

In addition to the direct health risks, there's a significant stigma attached to 'P-contaminated' homes. Once a property is identified as having meth residue, its market value often plummets drastically. This stigma can persist even after decontamination - making it difficult for homeowners to sell their property at a fair price.

Decontamination: An Expensive Affair

Dealing with meth contamination isn't just about managing health risks and battling stigma - it's also a matter of considerable expense. Decontaminating a property involves thorough cleaning and sometimes even structural renovations. These processes are not cheap.

Buyer Beware: Always conduct thorough testing for meth contamination before purchasing any property. It's far better to invest in professional testing upfront than face the potential health risks and financial losses down the line.

Meth contamination is an issue that every prospective home-buyer in New Zealand should be aware of. It's an invisible threat with tangible effects on health, property value, and your wallet. Always remember - knowledge is power when navigating the property market.

02. Leaky Home Syndrome

A significant concern in New Zealand's property market is the infamous 'leaky home syndrome.' This issue, which involves moisture ingress leading to structural damage and mould growth, can cause significant depreciation of the property value.

Costly repair bills and potential health hazards from mould exposure make this a serious consideration for anyone looking to invest in or reside in such a property.

These potential deal-breakers are essential considerations when assessing properties in New Zealand. They not only impact immediate expenses for rectification but also carry long-term implications for property value and livability – factors that discerning buyers should never overlook.

When embarking on your property journey in New Zealand, keep these pitfalls at the forefront of your mind. By doing so, you'll be better equipped to make informed decisions that lead you towards safe, sound, and successful real estate investments.

03. Asbestos Construction: A Hidden Hazard

Asbestos, a once-popular building material, is now recognised as a silent but deadly hazard. It's hidden within the walls, floors, and roofs of many older homes across New Zealand. Although it might not pose an immediate threat, its presence can seriously impact both your health and your property's value.

Health Risks

When undisturbed, asbestos remains relatively harmless. However, activities such as renovations or demolitions can release this dangerous substance into the air. Inhalation of asbestos fibres can lead to severe health issues including:

• Asbestosis, a chronic lung disease
• Lung cancer and other forms of the disease
• Mesothelioma, a rare form of cancer that affects the lining of lungs

These health risks underscore the importance of being aware of any potential asbestos presence in your property.

Financial Implications

The financial implications of asbestos removal should also be considered when buying properties with this type of construction. Asbestos abatement is not a DIY project; it requires professional handling due to its hazardous nature. This process typically involves:

1. Comprehensive inspection and testing
2. Safe removal and disposal
3. Post-removal cleanup and decontamination

Each step incurs costs that can quickly add up, making it a pricey endeavour.

Impact on Property Value

Asbestos construction doesn't just have potential health implications and financial costs; it can also affect your property's appeal to potential buyers. The knowledge that a house contains asbestos can deter people from buying, leading to:

• Lower demand for your property
• Reduced resale value
• Longer time spent on the market

Key Takeaway: When considering properties built with asbestos materials, it's crucial to weigh these factors against the potential benefits. Always conduct thorough inspections and seek professional advice before making any decision. It's not just about protecting your investment but also safeguarding your health and well-being.

04. Properties on Flood Plains: A High-Risk Investment

Investing in properties located in flood plains comes with a unique set of challenges. These areas have higher risk of water damage, which can significantly affect the property's overall safety and value.

Water Damage and Safety Concerns

Properties situated on flood plains are at high risk of water damage. This is due to their proximity to bodies of water that are likely to overflow during heavy rain or storms. The result can be:

• Structural issues, such as weakened foundations
• Damage to electrical systems
• Potential growth of mould and mildew

These damages not only compromise the safety and livability of the home, but also lead to costly repairs.

Insurance Challenges

Obtaining insurance for a property in a flood plain can be another hurdle. Insurers often view these properties as high-risk investments, leading to:

1. Expensive premiums: The likelihood of frequent claims leads insurers to charge higher rates for coverage.
2. Limited coverage options: Some insurers may not offer coverage at all, while others may exclude certain types of water damage from their policies.
3. Difficulty in selling: The added insurance costs can deter potential buyers, making it harder to sell the property in the future.

Impact on Resale Prospects

The combination of safety concerns and insurance difficulties can significantly dampen a property’s resale prospects. Potential buyers may be reluctant to take on the risks associated with properties in flood plains. This could result in:

• Lower demand for the property
• Reduced selling price
• Longer time spent on the market

When considering investment in properties located on flood plains, it's crucial to fully understand these challenges. Always seek professional advice and conduct thorough inspections before taking any decision. It's not just about protecting your investment but ensuring your peace of mind as well.

05. History of Subsidence

The structural integrity of your property is fundamental to its value and safety. Subsidence, or the sinking of land, can result in significant challenges for homeowners. This issue is not just about potential cosmetic damage; it's a matter that gravely impacts the solidity of the whole structure.

Sky-High Repair Costs

One of the main concerns with properties that have a history of subsidence is the financial burden associated with rectifying such issues. The cost of repairs can be considerably high, often requiring:

• Underpinning: This process strengthens existing foundations, ensuring they are sturdy enough to support the property's weight. It's an extensive job which typically involves excavation and construction, leading to significant costs.
• Rebuilding sections of the property: In severe cases, parts of the building may need to be taken down and rebuilt from scratch, escalating expenses further.

These repairs aren't just costly; they're also time-consuming and disruptive.

Ever-Present Risk of Further Damage

Even after substantial repairs, properties with a history of subsidence are always at risk for further damage. The soil beneath these buildings may continue to shift over time, leading to:

• Recurring cracks in walls and floors: These are not only unsightly but could also signal severe structural issues.

• Doors and windows getting stuck: As the building moves, doorframes and window sills can warp, making them difficult to open or close.

• Uneven floors: These pose a safety hazard and can also disrupt everyday activities.
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Impact on Insurance

Properties with a past incidence of subsidence can find it more challenging to secure comprehensive home insurance. Insurers may view these properties as high-risk and hence:

• Charge higher premiums
• Apply stricter terms and conditions
• Exclude certain types of damage from coverage

This situation could add another layer of financial burden for potential buyers.

Impact on Resale Value

The history of subsidence in a property can significantly affect its resale value. Prospective buyers might be wary of the associated risks and costs, resulting in:

• Lower demand for the property
• Reduced selling price
• Extended time on the market

Investing in a property with subsidence issues can be a dicey affair. It's crucial to seek professional advice, conduct proper inspections, and weigh all pros and cons before making such an investment decision. After all, it's not just about protecting your financial interests; it's also about ensuring your peace of mind and safety.

06. Contaminated Land

Purchasing property on contaminated land can put buyers in a precarious position. The presence of hazardous substances and pollutants, from industrial waste to heavy metals, can pose serious health risks to occupants - particularly young children and the elderly. Furthermore, the potential devaluation of the land due to contamination can make such properties an unattractive prospect for investment.

Additionally, it's important to note that the financial responsibility for cleaning up contaminated land often falls on the property owner. This could involve significant costs for soil testing, removal of contaminants, and restoration of the land.

07. High Crime Area

The safety of a neighbourhood is a crucial consideration for most property buyers. Areas with high crime rates can deter potential buyers who prioritise personal security and peace of mind. Not only does this impact the desirability of the property, but it can also significantly affect its resale value.

Increased insurance premiums and potential difficulty in securing tenants (for rental properties) are additional considerations associated with properties in high crime areas.

08. Adjacent to Main Roads

Properties situated adjacent to major roads face their own unique challenges. Daily noise pollution from heavy traffic and emissions from vehicles can compromise both the quality of life of residents and the attractiveness of the property.

Potential buyers may be deterred by concerns over:

• Reduced privacy
• Difficulty in accessing their home during peak traffic hours
• Potential health risks associated with air pollution

09. Close Proximity to Pylons

Electricity pylons located near a property may raise red flags for many potential buyers. Concerns over exposure to electromagnetic fields (EMFs) emanating from these structures could lead to health anxieties.

Moreover, pylons' imposing industrial appearance can spoil panoramic views and contribute to visual pollution – certainly not features that potential buyers look for when envisioning their dream home.

Pylons often mean that there may be an easements on the land. Easements are legal rights that allow the holder (in this case, the electricity company) to use the property for a specific purpose, such as running electrical lines or maintaining pylons, even though they do not own the land. These rights are recorded on the property's title, informing current and potential owners of the ongoing interest and access rights the utility company has on the land.

10. Monolithic Cladding: The Hidden Dangers

At first glance, monolithic cladding may seem like a practical and aesthetically pleasing choice for your home. However, this type of cladding is infamous in the New Zealand property market for its susceptibility to weathertightness issues that can lead to what's known as the 'leaky building syndrome.'

Understanding Weathertightness Issues

Weathertightness refers to a building's ability to prevent water from entering and accumulating within its structure. With monolithic cladding, there's an increased risk of water seeping into the home due to poor installation or design flaws. This can result in:

• Structural deterioration
• Damage to interior fittings and fixtures
• Formation of damp patches on walls and ceilings

The Consequence: Leaky Building Syndrome

When water intrusion becomes persistent, it can lead to 'leaky building syndrome.' This condition is not only problematic for the physical integrity of your property but also poses potential health risks. The key concern here is mold exposure. Mold thrives in damp conditions and can quickly spread throughout a home, leading to:

1. Respiratory problems
2. Allergic reactions
3. Asthma attacks

These health risks are definitely not what you would want to encounter in your new Kiwi home.

Financial Implications

Moreover, rectifying these issues comes with substantial repair bills. Homeowners may need to shell out thousands of dollars for:

• Comprehensive mold remediation
• Replacement of damaged structures and fixtures
• Recladding or other substantial repairs

Key takeaway: Prospective homeowners should be cautious when considering properties with monolithic cladding. It's crucial to conduct thorough inspections for signs of weathertightness issues and potential mold growth before making any purchase decisions. By doing so, you're not just protecting your investment but also the health and well-being of your loved ones.