"Scandalous" red-tape charges are preventing much-needed affordable housing from being built around New Zealand, real estate experts say.This was me in August last year:
Figures released by one developer reveal almost 40 per cent of the $250,000 cost of building a pair of two-bedroom units in Auckland went on a staggering array of bureaucratic fees, consents and permits.
The anonymous developer, who builds in Auckland suburbs with housing shortages, said the fees were blocking new low-cost housing projects.
Of the $93,750 in fees he was charged, $46,000 went to the Auckland City Council as a financial contribution. The resource consent cost $23,000 and an ACC consent, $8500. Water connection was $8300 and an electricity connection fee $5500. Other fees were paid for a right of way consent charge and vehicle crossing permit.
"This is why affordable medium density housing is a myth in Auckland city," the developer said. "It really is a ... scandal."
In one of the most disgraceful and unaffordable policies ever inflicted on ratepayers, the North Shore City Council has increased their development contributions by 150%.
Mr Blincoe expected a $13,000 development contribution bill from North Shore City Council when he built on a Torbay property.
He got a nasty shock when that figure leapt to $32,500 after his house plans were lodged late last month.
The charges have been steadily increasing as the policy has been changed to more accurately reflect the cost of growth, he says.
For example earlier wastewater charges of $800-$900 are now about $14,000, says Mr Cleaver.
Nothing else needs saying. Except this from said Granny article.
But Local Government New Zealand environment and regulation manager Irene Clark defended the charges, saying that they were an "actual and reasonable" cost.
She said they went towards processing applications, inspections and administration costs.
The cost of processing, inspections and administration is the wages paid to council staff to, um, er, process, inspect and administer. Wages are paid through rates.
As an aside, I read the other day that North Shore City Council has removed user pays on Takapuna business parking. The impact on rates was .3%. That's quite significant. Somehow if someone from Manurewa wants to come to Takapuna to shop I, as a North Shore ratepayer, have to pay his parking.
Roll on November.