With low interest rates and more and more builders looking for jobs, Master Builders are saying that right now is the perfect time to be looking at your next building project.
Unless that happens, economists are projecting the fallout of Covid-19 will lead to tens of thousands of jobs cut in the residential construction sector alone, a sector worth billions to our economy.
Oner Aucklander taking advantage of the situation is Benoit Marcenac, who told 1 NEWS right now is the perfect time to convert his woolshed into a luxury stay for holiday makers.
With the large availability of builders as well as lower interest rates, he said it is much easier for new projects to be financed - a thought process backed up by Master Buiders Association CEO David Kelly.
“For some people it's the best time to think about a new build or renovation or extension,” said Mr Kelly.
During the global financial crisis over a decade ago, roughly 30,000 jobs in the construction industry were lost.
Hoping to avoid a repeat of that, experts are encouraging Kiwis to build or renovate their properties and help keep the industry afloat.
For years labour shortages have plagued the building sector, but that's about to change.
“What we know is that when we have this type of event, it is significant downturn in the amount of buildings, so there will be builders available,” says Mr Kelly.
Newsroom reporter Dileepa Fonseka shone a light on such concerns after speaking to leaders in the construction industry. (Source: Other)
Nevertheless, tens of thousands of jobs are still expected to go as a result of coronavirus’ economic impact.
Record low interest rates mean borrowing is cheap but that doesn't mean you should overextend yourself economist Shamubeel Eaqub says.
“For at least the next three to four years interest rates are going to be exceptionally low, given the extent of the recession,” says Mr Eaqub.
So, the message for people looking to build is to shop around as the huge market of available builders means customers are likely to get “very sharp quotes.”
But Mr Kelly says there isn’t the time to wait if customers are hoping to swoop in on the deal.
“Start talking to a builder or a designer now, because there is a lead time of a few weeks or a few months to work through the design.”
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