Partly built tiny homes in limbo
The owner of a New Plymouth tiny house building business called in a liquidator after struggling financially, leaving some partially-finished places due to be delivered to buyers.
“It’s nothing we wanted and nothing we planned. Construction is in reasonably tough times,” cofounder Jamie Cameron said of the business which employed 15 staff who were all being laid off.
Cameron called in Tony Maginness of Baker Tilly Staples Rodway in Auckland this week to liquidate his NZ Tiny Homes company.
Maginness said his first report wouldn’t be out till next week but it was uncertain what will happen to homes partly built, and which buyers have paid deposits on.
“There are about six homes under construction,” Maginness said of places in various stages of completion at the New Plymouth-based business.
“There may be interest in buying the business. There have been people contacting me,” Maginness said.
All six homes were due to be delivered to clients in the North Island, he said.
Cameron said the company had built 135 homes in the last three years. They were sold for an average $150,000 and it was “an incredible business,” he added.
“We thought we were going to move forward but through the pandemic, we had to shut down so many times and we’d get behind. It’s been tough on that side.
“With all the staff — the builders and admin team have been fantastic. They gave their heart and soul to everything,” Cameron said.
“At this stage, we’re working hard with the liquidators to try to get funds to pay staff their last pay,” he said.
The six homes were due to be delivered in the Wellington, Waikato
and Napier areas, Cameron said.
Money was being sought to complete those but added: “That’s out of my hands”.
He said he’d battled constantly rising building costs and trouble getting materials here.
Cameron had been importing materials from China but said most materials came from this country.
“With every provider, it’s always been a battle getting stock in New Zealand,” he said.
The business was incorporated in February 2020 and Cameron of New Plymouth is its sole director/owner.
“We build and sell not-so-tiny homes to be lived in by all ages,” the company said, showing on social media how it built and delivered places to Napier, Cambridge, on the Kapiti Coast, and elsewhere.
Just a fortnight before calling in the liquidator, the company issued a reassurance.
On November 4, the company told people via social media: “We are
aware of some incorrect information circulating online regarding our New Plymouth office. Please be assured, our business is open and operating as normal.
“We value our customers and any important announcements would be communicated here, or via our website.”
Cameron said on Thursday: “At that stage, we had a plan moving forward.”
One-bedroom homes were sold for $176,000 plus GST. That came with a smart TV, fridge freezer, blinds and a washing machine.
Last year, two Auckland tiny house/transportable cabin companies specialising in the affordable end of the market went under, with the owner blaming Covid and reduced demand.
Nzhousing and Affordable Homes Construction of Dairy Flat went into liquidation and receivership, owner and director Ian Ralph Fotheringhame of Orewa confirmed.