Many people often assume that buying an existing house is cheaper than building new. After all, creating a brand new living environment uniquely designed to your needs is often thought of as an expensive dream than a potential reality.
International research shows that twice as many people would prefer to live in a new home but many don’t understand that anyone who is financially able to buy a new home can probably afford to build.
Currently there are financial incentives in place to encourage new construction activity within New Zealand. This allows for smaller deposits and in some circumstances additional support toward gathering these deposits.
For first home buyers there is the use of KiwiSaver, the First Home Grant (as at 1 Oct) and First Home Loan (as at 1 Oct) if eligibility is met.
When looking at existing houses it’s really important to consider your lifestyle and future needs. A new build can easily be designed for your current and future needs, whereas an existing property may entail compromise or expensive renovations to suit. This new build flexibility and choice applies to the layout, look and specification of the build – just combine your imagination and budget.
This choice also comes with increased modern construction and efficiency standards, meaning the home is often cheaper to run with a drier, healthier living environment. Factor in manufacturer warranties, alongside an independent ten year build guarantee and it is easy to see why new build offers significant peace of mind.
Surely there must be some drawbacks?
Yes, there are some potential drawbacks to building new, with newer residential subdivisions often located on the fringe of existing city areas. However, with good planning and infrastructure this can often be mitigated through developer placement of good local amenity and employment opportunities. Existing land subdivision can provide sections within existing suburbs too, should that be your preference.
If you are worried about financing a new build and supporting your current living arrangements, don’t be. There are ways around this and in many cases a loan can be structured so you don’t fund construction loan repayments while you build, relieving the pressure of existing accommodation payment. A good financial advisor, who is a specialist in this field can easily advise and arrange this on your behalf.
So, where to start first?
Find the right builder. A good builder can help in all of these individual areas with insightful advice, immediately seeing things that can greatly affect a build that perhaps you didn’t know to think about. A great builder can also remove the need for an architect, engineer, planner, project manager and even a bank, leaving you a single point of contact there to inspire and provide confidence that your new build project will be the home you imagine, effortlessly.
If you have never thought of building new, why not consider if this could be a better choice for your housing needs?