What to consider in your initial inspection of a section, and how the location of your section can affect building costs.

Inspection checklist

What to look for in your initial inspection of a section:

• How close are amenities, such as schools, shops, hospitals and public transport?
• Site aspect. Is it sunny? Is it windy? Does it have a view? What about privacy? You might need to visit at different times of the day, and in different weather conditions. Does there seem to be good drainage? Are there swampy areas? Is the section prone to flooding? Consider also the different times of year – how much sun will it get in winter when the sun is low? Decide what is important to you.
• Is access difficult? Consider it as a building site. This could have a big impact on building costs (as well as convenience when you move in).
• Is there room for garaging or off-road parking?
• Find out what services (water, sewage, power, phone, gas) are connected to the site. Your local council can tell you what services are available from the road, but you’ll have to check the subdivision plan for services on to the section. You may have to pay to bring services on site. Find out if you will be on public sewerage or a septic tank. Check with the neighbours whether there is good television and mobile phone reception.
• What do the neighbours seem like? Are their properties well-kept? Are there overhanging trees that could cause a nuisance? Could there be a noise problem from them or their pets?
• The location will affect the price you pay but if a section seems too cheap there’s probably a good reason. Ask a valuer or real estate agent for a comparison with other sales in the area and, if it still seems cheap, do some further investigation.
• Drive around the neighbourhood at different times of the night and day, and in the weekend. Watch for traffic and noise from community activities like sports. Get a feel for the area. If you are looking in a rural area consider smells, and noise from animals or harvesting that goes on around the clock.
• Is there any vacant land nearby? Find out whether the council has any plans for it. Research the zoning classification and what can and can’t be built under the district plan.
• Are there any public utility easements or special covenants on the land?

Effect of location on building costs

The location of your section can have a bearing on building costs. For example, your new section may have an amazing view, perched on a cliff overlooking the sea. But it will also be exposed to the wind, the risk of erosion or flooding, and the risk of corrosion to materials.

Wind
Houses exposed to high winds have to be designed appropriately, for example the building may need extra bracing and may attract a higher score on the weathertightness risk matrix. See leaky buildings for more information.

Erosion and flooding
There is provision in the Building Act 2004 for the council to refuse to grant a building consent if the land is at risk of a natural hazard, such as erosion, flooding, subsidence, or slippage, or if the building work itself is likely to accelerate the problem. If the council decides that there is a risk from a natural hazard but the building work won’t worsen the problem, it may grant a building consent but must advise the Registrar-General of Land, who will note on the certificate of title that a building consent has been issued under section 72.

So take special care to check the certificate of title for any section 72 endorsements on the title which will alert you to the fact that the land is at risk of erosion, flooding or subsidence. Note, it may appear as a section 36 endorsement under the prior 1991 Building Act.
 
Insurance may also be a problem if the section has an erosion risk. The Earthquake Commission (EQC) insures against earthquake, natural landslip, volcanic eruption, hydrothermal activity, tsunami, and, in the case of residential land, a storm or flood; or fire caused by any of these. You are automatically covered by EQC insurance when you take out private insurance cover for your home or belongings and the EQC premium is built into the premium you pay your own insurance company.

However, subsidence is not covered by the EQC. So if you are buying a section with a risk of erosion or subsidence you may need to get extra private insurance cover for risks not covered by the EQC.

Corrosion
If the house is near the sea it will need to have corrosion-resistant features in the roofing, joinery and structural connectors. It may also need more frequent washing and painting after you’ve moved in.

Some of these problems can be offset by using adapted designs that suit the environment without being significantly more expensive. A good designer should be able to advise you on this. Their advice could influence your decision to buy the section or not.

If you are still keen, research the section in more detail.