Sweat equity—working for home ownership

Press, 12 October 1985, Page 14

Sweat equity—working for home ownership

Home Line with

Bill Harrison

Old houses, tired old houses, even derelict old houses are being given the kiss of life, or at least an attempt at resuscitation. Some may be repiled, rebuilt, or just given lots of tender loving care. Faced with steadily increasing housing costs, mortgage repayments, and interest rates that show no sign of dropping, many home-seekers, and even some home-owners, are having to reassess their priorities. They are sorting their wants from their needs.

It is during the reassessment process that some of the old houses on the market start to look a little more attractive. These older houses are even looking attractive to the architects of government housing policies. They have devised a “Sweat Equity” scheme to enable first home buyers to earn their cash deposit (equity) by repairing and renovating an old house, thereby qualifying for a Housing Corporation mortgage.

But anyone considering purchasing an old house because the price looks attractive should proceed with caution, even to the extent of seeking professional guidance.

There are, of course, old houses and old houses. The old house with character, built in a desirable area, and well maintained is unlikely to be affordable to

our first-home buyer, or our down-trader. Sadly, the old house affordable for our limited-means-buyer is most likely to be well past the end of its economic life, sitting on a section that has little appeal to the redevelopment speculator. For a house to be worthy of consideration for the blood, sweat, toil, and tears of the restorer it needs to have at least some good features. A love affair with an old house can be as short-lived as a piece of sandpaper on a varnished wall. A decision to purchase must be based on evaluation, not on emotion.

(1) The bouse should be located reasonably close to what the occupants have to do — work or school — or what they prefer to do — recreation or sport. Remember, transport is costly. (2) Biblical prophets advocated building a house on a strong foundation. This is still an essential requirement today. If the foundations are cracked, the floors not level, and the doors don’t shut, find out why. Many old wooden floors were built much too close to the ground. Repiling will be costly (especially if it has badly cracked plaster walls, and other complications), if not impractical. (3) The framework must be sound. Replacing rotten weather boards may be fun, but not so studs, plates,

trimmers, and beams. And the last borer beetle will be more elusive than the proverbial last rabbit.

(4) A roof that lets water in is easier to fix than taps that don’t. Bringing an old house up to reasonable comfort levels with water, power, and heating services will be costly. When you find the house that’s just right, or in desperation, one that’s near enough, don’t sign anything until you have consulted a solicitor. Do-it-yourselfers can obtain a search copy of the property’s title from the Lands and Survey office. This may reveal an interesting history, and perhaps some easements, convenants, caveats, or liens that you would never have dreamt of. Experience has taught owner-builders, home handy-

persons, and those that just potter about that the job invariably takes twice as long, and costs twice as much, as at first imagined.

Estimate the total cost of time and money involved before starting the job, no matter how simple it may at first seem.

For those choosing the old house option there will be plenty of well meaning advice freely given, and there is professional advice. For a standard fee of $3OO. The Institute of Architects offers a “house check” inspection service that gives a detailed report on the house, its past and its future. This service should not be confused with a valuation

which can be obtained from a registered valuer. Seeking out, and using, the many consumer support services that are available could prevent a dream house becoming a nightmare.

If you have a question relevant to homeownership or maintenance, write to “Home Line,” C/o The Building Centre, P.O. Box 22-143, Christchurch. ■