Family's six-year ordeal trying to build their dream home

An Auckland family say their six-year ordeal to build their dream home — marked by failed contracts, court battles and spiralling costs — highlights a "loophole" in New Zealand's laws.

Andreas Goetz, 42, and his wife Anna, 38, began the journey to build their low-energy passive house after purchasing a lot in north Auckland in 2018.

"Back then, we were so excited and could imagine it all happening," Goetz said. "We never imagined that it would turn into such a nightmare."

Their first build contract on the site at Ōrewa's Pacific Heights Development collapsed in 2021 after a Disputes Tribunal case over an inaccurate cost estimate.

Although the couple won, Goetz said the setback cost them nearly two years and about $15,000 before restarting the project with a new architect and builder.

Construction with the new building company then started in February 2022, but by mid‑2023 the project had again ground to a halt.

The family say they temporarily relocated to Germany while they filed a court claim against the company for $130,000 over a loan the family made to the company which wasn't repaid. They would win that case, but the builder — who told 1News he did his best to pay the money back — went bankrupt.

"We had nowhere else to go, the house was nowhere near completed. So, I called up my parents in Germany and said 'sorry, can we rock up there in three weeks' time? And by the way, can we have our second baby there?'," he said.

A third builder later estimated that completing the half‑built home would cost more than double the original price.

In late 2023 and early 2024, another attempt to restart the project failed, leaving the family moving between temporary accommodation.

Goetz said the financial pressure at this stage was "horrific", and the couple cut their food intake to one meal a day while they continued servicing interest on mounting debt.

"We didn't want to go down that low for the kids, so they did still get good vegetables and everything."

He said working in supply chain management for more than 20 years and his wife being a lawyer meant they were paid well, but they still struggled with the huge debt forced onto them.

"There were stages where I didn't know how to continue. I would like to say I didn't have those thoughts, but at the end of the day, we had a family and the kids, and we had still community around us: work colleagues, friends, family, obviously, who encouraged us to keep fighting on it."

With no other housing available, they moved into the unfinished home in June 2024, without toilets, water, flooring or a kitchen.

In July 2024, the District Court ordered the main building company and its sole director and shareholder to repay $147,551. That sum covered the loan the Goetzes had given to the company plus interest.

In the court ruling, Judge Sharp said no "arguable defence" by the company or its director had been made against the Goetzes' claim.

The company was put into liquidation that same month.

Three months beforehand, in April 2024, the director had been replaced as the sole shareholder and director of another company. He declared personal bankruptcy in December 2024. That is due to expire in December 2027.

Goetz said: "Despite winning in court, we have been told the builder's bankruptcy will not be extended, meaning the debt may effectively disappear."

He claimed this situation highlighted "loopholes" in the bankruptcy laws in place to protect people.

Auckland University senior lecturer of commercial law Dr Benjamin Liu explained company liquidation regimes are usually in place to protect people's personal liability.

"The law wants to give people who are in trouble a second chance, and this is also the reason why we have a company limited liability regime.

"That is, if you set up a company and if the company fails, you personally will not be liable, the company as a legal person will be liable and will go into liquidation," he said.

The court ruling against both the company and its director in this case was as a result of the director being the guarantor of the loan made by the Goetzes to the company.

Liu said laws are also in place to protect against what is known as a "phoenix company".

"You just set up a new company with a similar name and then you continue to do business as usual - that is not allowed." Evidence of wrongdoing would be needed to bring the case to court in those circumstances, he said.

“Basically, in New Zealand, if the company and then the person involved is bankrupt, that's basically the end of the matter. It's really difficult to get any money out of that person."

Goetz said: "We have quite a robust justice system... But even if you win by law, you're not going to get money anyway. So you'd better save that money, don't pay lawyers and just suck up the issues. But that's not how it should be.

"We tell our kids 'life is not a computer game', but that's exactly what it is. You can just restart here without real consequence," he said.

The nightmare continues for the family, with Goetz saying the family was being forced to sell their apartment, which is already undergoing costly remediation.

They also fear they could still lose the home they have spent six years trying to complete.

The builder who lost the case brought by the Goetzes told 1News he had been attempting to pay back the money before he went into bankruptcy.

“I ran out of money,” he said. “So I couldn't afford a lawyer and had to represent myself in court, which, of course, ended up in a disaster.”

He said he has approval from the insolvency office to operate as a sole trader.

“It is assigned and signed off by the assignee, and I can trade as a sole trader under this, under my name,” he said.