Leaky home stigma persists

Wednesday 3 March 2004

Thousands of homeowners could see an average of $29,000-$35,000 wiped from the value of their houses due to the stigma of leaky homes, which persists even after expensive repairs, says a new report.

By The Landlord

Owners face crippling repair bills, a loss in the value of their home if they try to sell, problems with bank lending and higher insurance costs.

Massey University Master of Business Studies student Song Shi estimated a 12 to 14.6 per cent loss in market value of potentially leaky homes. This would translate into an average loss of between $28,800 and $35,040 per home.

Prendos founding director Greg O'Sullivan estimated that around 40 per cent of New Zealand's housing stock built from 1985 used monolithic cladding. About 20,000 houses were built each year. But he estimated that about 22,000 homes might be at risk.

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