Captions by James Brown. Captions were made with the support of NZ On Air. Tonight ` broke exhausted and living in an Airbnb. A new-build nightmare. - All of the windows and doors failed. They're all not installed or supported properly. The roof structure has failed. They've cut all the trusses, and they're no longer structurally sound. - Three years, three building reports and still an unconsented home. - We've got experts telling us the house is very serious. We've gotta do a lot of deconstruction, if it's fixable at all. - Plus, 'buy now, pay later' schemes ` handy in a pinch, but what's the catch? - These schemes don't come under the same scrutiny as other loans. - And how much should you pay a tradie as a deposit to get that roofing, concreting or building job underway? - What if they ask for half? - Right, half up front? I'd definitely be sceptical. www.able.co.nz Copyright Able 2023 - Tena koutou katoa. Kia orana. Welcome to the show. We all know building a home is a complex, costly process. For most, it's a case of doing the research, then handing it over to the experts. - And for extra assurance, many choose known, trusted brands that come with guarantees. - Which is exactly what the couple in our next story did, carefully picking a national franchise to build a home for their growing family. - So why, three years later, are they broke, exhausted and living in an Airbnb? Here's Gill. - They were flatmates from opposite ends of the Earth who fell in love. And while they'd say they didn't dream big, they did dream. - We wanted to try to build a family home and have somewhere where we can hopefully raise a family. - They say 'hopefully', because they knew the arrival of this little guy was never going to be easy. - Gemma and I did a lot of years of IVF. - Our little miracle baby. - But they didn't think they'd need a miracle with their build. They'd already bought a plot of land in Otepoti Dunedin, and they'd signed up with established firm Stonewood Homes. - We just thought, this is it ` the dream's happening, - Only it faded fast. They're feeling broken. - Not only have Stonewood taken all of our money and wrecked our dreams, they've stolen the ability for me to put my son in a home. - Building your own home is exciting and daunting, with thousands of construction companies vying for your business. - You have to choose very, very carefully. - John Gray works to protect homeowners' interests. - I think they've got to look beyond the veneer that is the national brand. - By visiting these local show homes in Dunedin, Dave and Gemma thought they were doing just that. - Flawless. Just beautiful. - And they say the sales rep was great to work with. - Easy to deal with. Just instilled trust right from the get-go. - And while Stonewood wasn't the cheapest, they were happy to pay for quality. So in early 2020, they signed a deal for just under $900,000. - They went through our lawyer, and everything looked all above board, and we were super excited. - For good reason. This ` you were not kidding, were you? - No, no. - Even with winter claiming the day, the view from the site of their build is wide and wonderful. The view's amazing, but the house also looks good. - Yeah. - Looks good. To the casual eye, it's a stunner, luxury untapped. - It's all Dave's idea. That was your big dream. - The bath in the window. - Bath in the window. I still love everything about why we chose this section. But at the same time, it's so... heartbreaking. - Because corners have literally been cut. - They go to drop all the frames on, and then they've gone, 'Ooh, we've got a problem here.' So they started cutting and chopping frames around. - Dunedin City Council says the slab foundation isn't right ` one initial problem that led to others. - All of the windows and doors failed. They're all not installed or supported properly. The roof structure has failed. They've cut all the trusses, and they're no longer structurally sound. - It's three years since the contract was signed. - We've got experts telling us the house is very serious. We've gotta do a lot of deconstruction, if it's fixable at all. - Remember, Stonewood is a national brand. It has bold promises, and it's down to its franchisees to make those promises real. - You've got to dig down locally as to who the franchisee is. - In Dunedin, Graeme Sneddon runs the show ` director of Braemar Building Ltd, former Master Builders Otago president, and award winner ` so far, so good. But in 2015 he had to fix substandard work. He's lost at the Building Disputes Tribunal over unrequested variation of contract. And for Dave and Gemma, there are serious concerns. - Everything we brought up, they had the spot-on answer for it. - You believe it, because it sounds... - Plausible. - Yeah. - They admit they're no building experts ` they work in engineering and radiography. But their worries led to a meeting on site with Dunedin City Council. Graeme Sneddon promised to do everything right. - And then he sent us a guarantee email. And I suppose we had a sense of calm, I suppose, that, hey, it is going to get addressed, and it is going to get fixed. - In June 2021, with babe in arms, they were told they'd soon be moving in. - To the point where Gemma started buying furniture. - They were then told three months, but still it wasn't ready. - We're pleading with them. We're living in a motel with a newborn. Fix our house. - Fed up with motel life, they moved into this Airbnb. - Moving in and out when they had guests booked. So there was a lot of shifting, to start with. - The owners took pity and said they could rent it full-time. The couple are incredibly grateful, but... - Definitely not the same as having your own home and your own things. All of our stuff's in storage. Like, none of this is ours. - And still no agreement on the remedial work. Graeme told them he needed input from the architect and the engineer. - So we contacted the architect and the engineer, and within about 20 minutes I had two emails stating we've never once been engaged by them to do this. - The problems are all too clear in this summary of council inspections. It's peppered with fails on every page. The couple commissioned a building inspector's report too. It meant more delay and a depressing read. - Absolutely broken. So we... (SIGHS) - They considered legal action but felt the time and money involved were too great. - We're spending money on the mortgage, on the house every week. We're now spending money in rent where we are every week. And we've got legal bills and bills from registered building surveyors, just trying to portray just how bad this is to Stonewood. - Getting nowhere locally, they tried head office. - He said all the right things. He said along the lines of, 'Stonewood Homes are known for building high-quality homes. 'Anything less than what was agreed upon in the building contract is unacceptable, 'and we'll put it right.' - Here he is ` managing director Greg Somerville. He flew from Auckland to pay them a visit, but then changed his tune. I believe I said something to him along the lines of, like, 'Well, if this was your home, would you be happy with this?' And his response was, 'I wouldn't worry about it. 'When your friends and family are here, they're looking at the view, and not your house.' And we were just gobsmacked. - Mm. Nobody really knew what to say. - John Gray says sadly he hears many complaints about the building industry employing this type of behaviour. - In terms of trying to imply that there's nothing wrong with the build. - And some play the waiting game, asking for extra reports or advice. - Delay tactics are a frequent way of trying to burn the people off. - The couple had one more card left to play ` a Master Builders' 10-year guarantee. They gave the local office a call. - And he turned around and said to me, I sound like a disgruntled customer. And I said, 'Can I send you these reports?' And he said, 'Don't bother. I won't even open them.' - The guarantee states it covers remedial work while a build is ongoing. So what about the Master Builders' 10-year guarantee? - (SIGHS) Sadly, we've seen many, many cases where the Master Build warranty really hasn't actually supported the customer well. - But Dave persevered, and Master Builders agreed to do its own report ` not that he's seen it yet. - It is really difficult. They are out there swimming in glue. - And they are stuck. They can't buy anywhere else, because they won't get a loan. - Because we've got a building dispute going on, and we're too big a risk. - There have been other consequences too. Their dreams of a bigger family have been dashed. - We had a pocket of money that we were going to use to give Henry a sibling if we could ` if it worked, who knows? But that was money that was earmarked for that, and it no longer exists. It's gone. - It's all proving too much. - EMOTIONALLY: I just feel like I've failed my family. And I can't do anything about it. Just, the system's just broken. - Yeah. The fact that we've done everything right,... (SIGHS) and we're just getting rolled. - It's nearly two years ago the problems were first raised. - It's looking like it's not going to happen. - Yeah. - We don't really know where we stand with anything. - It seems like a lifetime. And for Henry, it is. - Wee Henry's coming up 2, and we need a home. - Oh, what an awful situation to be in. And so brave of them to come out and share too. Right, well, coming up, Gill tracks down some answers from Stonewood Homes. Will they agree to finally get Gemma and Dave's house up to standard? - And we'll hear more from homeowner's advocate John Gray. He reckons what we need is industry-wide reforms. - So many of these cases are just swept under the carpet. - And we all love an easy way to pay. But is 'buy now, pay later' the way to go? - And this is a key point ` if you miss payments, you'll have to pay a late fee. - Kia ora. Nau mai, hoki mai. Welcome back. Now, before the break, we met Gemma and Dave, who signed up in 2020 for a $900,000 new build with Stonewood Homes in Dunedin. - Three years, three building reports and much heartbreak later, they've ended up with an unconsented, unfinished home and living in an Airbnb. - Now, remember, the couple went with a well known company who offer a high-quality build. So why haven't they got one? Gill wanted answers. - It's now well into winter, but Dave, Gemma and Henry have a spring in their step. - Definitely smiling. Yeah. - We'll get to what's behind these grins in a minute. First, we really wanted to talk to all the parties involved in person, to get a better understanding of the issue. But no one was willing to come on camera. They just sent statements. So we got some friends to help. First, Dunedin City Council confirmed there was lots wrong,... - Foundations, roof, framing, joinery cladding and weathertightness. - ...and said... We've been working with the various parties since last year to try to reach an agreed way forward, but this now appears to have been unsuccessful. For this reason, we have issued a notice to fix. The sets out our requirements to remedy the building work which failed inspection. - So progress. And from Master Builders? - We apologise David didn't have a good experience when he called. We're disappointed our standards of customer service were not met. We have been working to resolve the issue with the builder and franchise head office. - So what's Stonewood's point of view? The builder, Graeme Sneddon, emailed an apology too. - We appreciate it has been very stressful for David and his family, as it has been for me and my team. Unfortunately, we have been unable to agree on the scope of work required with David. - Graeme Sneddon has the ongoing support of Stonewood Homes' head office. But it's also agreed to do right by Dave and Gemma ` at last. - Stonewood Homes has made a commitment to David. We have appointed a project manager from our South Canterbury franchise. We're focused on ensuring the home is completed to a high standard as soon as practically possible. - The managing director told Dave directly, and he couldn't wait to tell us. He goes, 'You're probably aware we've been approached by Fair Go.' He then turns around and goes, 'Whatever you want, you've got.' They have agreed that it will be built to a high standard, and they want to get cracking on it ASAP. - You're not looking very happy. - The reason we're not jumping for joy is that we've been putting up with them telling us for over two years that they're gonna sort something out. - However, I did get a good amount of sleep, I can tell you. - (CHUCKLES) Just a few days after Stonewood responded, work gets going. So, after two years of waiting, the family can get back to planning. - So I'm thinking... Where's the sofa going to go, Henry? - So put a sofa here. - They're finally allowing themselves to hope. - We can actually look at furniture and start planning. - There is still an industry-wide issue that needs addressing. - Because so many of these cases are just swept under the carpet. So we need to adopt a new regulatory environment in New Zealand. - He'd like to see financial penalties and... - A national register, and a register of shame as well. - But today is about this family's tomorrow... - Somewhere there. - ...and finally being treated right. - It's good that they've accepted that there's definitely something wrong. - I cannot thank you enough for the work that you've done and getting the result. Yeah, really appreciate it. It's fantastic news. I don't feel like someone's standing on my chest any more, so it's good. - It's great. - Yeah. - Wow! - Wow, what a great result for them. You can just see the relief on their faces, so great work, Gill. And we're looking forward to revisiting the house when all of that work is done. - I do like a good housewarming. Right, it'll be interesting to see the changes that John Gray is calling for, if they go ahead, such as stronger financial penalties, because we do know of a similar system that's working rather well in Canada. - Right. Well, as you've just seen, a house is a major purchase. But as we so often say here at Fair Go, we're here to help with consumer issues of all sizes. - Including the sort of stuff we might use credit cards and hire purchase to buy. And more recently, you've probably seen it in shops ` the old 'buy now, pay later' schemes. - But as Pippa explains, this latest method comes with some unique fishhooks. Here's Buyer Beware. (SMOOTH ELECTRONIC MUSIC) - Almost too good to be true ` buy now, pay later schemes, an increasingly popular way of getting something you want while delaying the pain of paying. Kinda like a credit card, without the interest. There are several 'buy now, pay later' providers. You've probably noticed them at stores or online. If you're not familiar, here's an example. So, say you buy a $100 pair of shoes. Pay an initial payment of $25, and you get to leave with the shoes. Then you pay another three payments of $25 each fortnight. Get the shoe, delay the payment, no cost to you. Awesome, right? But there can be fishhooks. For starters, it can feel a little bit like free money. People have found themselves in situations where they've bought more than they can afford, especially if they sign up to more than one provider. And this is a key point ` if you miss payments, you'll have to pay a late fee. They can add up alarmingly quickly and lead to poor credit scores, meaning you could have trouble getting loans in the future. Because there's no interest charged, these schemes don't come under the same scrutiny as other loans. But the government is looking at beefing up regulation. And the major players have just banded together to share information about people's credit risk, the idea being that you won't be able to take on more debt than you can afford. Our advice is don't take on a bunch of 'buy now, pay later' loans at the same time, and only use it if you're confident you can meet your repayments. - It is amazing Pippa got to the shops. She's never been before. I had to show her a wee map ` Pippa, here are the shops. Away you go. - Take care. Don't get lost. - That's enough. Make sure you read all the terms and conditions. Those late fees in particular can be quite steep. - E haere ake nei, coming up ` how much of a deposit should you pay your tradie? - There's good reasons and bad reasons for, you know, contractors looking for deposits. - Kia ora. Nau mai, hoki mai, welcome back. Now, something we often see at the old FG, Fair Go ` call us what you like, just call us ` what we often see is people paying high deposits for trades, the job going to custard, of course, and the money is all gone. - Sadly, that's true. And on the other hand, tradies tell us they need deposits up front for materials and security. So how to strike the right balance? Well, Kaitlin's been talking to the experts. (QUIRKY MUSIC) - So, you've got the vision, worked out a budget, but before the project's got off the ground, you're asked to pay up. - No, it's not something I'd agree to do. I would want to make sure that the job was done. - If they're paid up front, it might be more initiative for them to do a better job. - 10% to 20%. - What if they asked for half? - Right, half up front? I'd definitely be sceptical. - So Fair Go put it to the people doing the mahi. The Concrete Contractors Association says it's about security. If a customer won't pay up front, they might not be able or willing to cover costs when the job's done. Master Plumbers members also require deposits, especially for major projects like full bathrooms or renos. Floor NZ says contractors working for flooring stores don't ask for a deposit, but companies or contractors supplying the floor might. Same goes for the Roofing Association. And it can be a way for the customer to secure their place in the queue. But this is new ground for Master Painters, who say in the past its members weren't encouraged to ask for a deposit. Since Covid hit, they say it's badly needed, with painters unable to cover wages and materials in advance. John here sees both sides of the argument. There's good reasons and bad reasons for, you know, contractors looking for deposits. - He founded the Building Disputes Tribunal, a service that specialises in ironing out problems with building and construction projects. - From very low value ` you know, as little as $1500 in some cases ` to in excess of $100 million. - Whatever the amount, he says securing materials isn't a reason to be paying up front. - It's just a nonsense, absolute nonsense. Any contractor worth their salt will have access to credit. And that's how this industry has operated, certainly for the last 50-odd years that I'm aware of. - But he agrees contractors can also be hung out to dry. - They'll set aside time, they'll turn away other work. And at the last moment, you know, the client or homeowner will obtain a better, sharper quote and simply tell them that they're not needed. - What percentage would be reasonable up front? - I don't even know that it's a percentage, to be frank. It's often done as a percentage. In some cases, it's just, you know, a nominal lump sum that someone's thought was a good a good idea. - For concrete contractors, the association reckons 50% is the norm but can vary. Plumbers also say up to half is reasonable, though regular clients often aren't asked for a deposit at all, due to the ongoing relationship with the contractor. Painters ask for up to 30% and say if it's over 50%, that should raise flags. John says it's not the paying of a deposit that's the problem, it's where it's being kept. He suggests a middle ground. - Put the money in a solicitor's trust account or something like that, just somewhere where the contractor knows the money is available. - Safe and secure till the job's complete. - Why would you pay tens of thousands of dollars to a complete stranger for work they haven't done? I mean, that really doesn't make sense. - Some people do choose to buy supplies themselves, but John says this can be just as problematic. - Where there's a building failure of some kind, and then the question becomes whether it was a function of the materials themselves or whether it was a way that the materials were incorporated into the contract works. - In a perfect world, there'd be a glue to hold all agreements together. You may have heard of it. - It's all about the level of trust between client and professional. - You've gotta put your trust somewhere. - Even in yourself. It actually turned out better than I thought. - Oh, Kaitie's pretty good at the old sandcastle. - No, she wasn't. Did you see the moat? That'll never pass code. Anyway, we hope that it helps everyone's home renos. Hopefully they run smoothly, to cost on time, under budget, etc, etc. - That's it. Right, that's it from us. But if you only caught part of the show, you can catch it all again on the Fair Go page on TVNZ+ whenever you want, because we're always here to help. - Facts. That's right ` our programme is all about you at home, your consumer aches and pains, no matter if they're huge or teeny-tiny, please get in touch. - And we're on Facebook, TikTok and Instagram. You can go to our web page, tvnz.co.nz, email us ` fairgo@tvnz.co.nz or write to us ` PO Box 3819, Auckland 1140. - Thank you for watching. Until next week, happy King's Birthday. Do you think he had trifle, the King? Ho-ho-ho! - Until next week,... - BOTH: Pomarie.