Why Build a Home Instead of Buying
For many people, building a home is the ultimate dream — creating a space designed around their family, lifestyle, and future. Choosing a new build not only means skipping endless weekends of house hunting, but also turning that time into an opportunity to bring your dream home to life.
One of the key advantages for new-build homeowners is access to low-deposit home loan options. Under current Reserve Bank LVR rules, you may only need a 10% deposit. These loans allow you to select a section, choose your home design, and build under a fixed-price contract — giving you confidence and protection against cost overruns.
Of course, building a home comes with many decisions. While it’s an exciting and rewarding process, it can also be stressful and sometimes more expensive than expected if not carefully managed. There are several different ways to build a home, each with its own pros and cons. Some of the options include:
House and land package
A typical house and land package will include a fully completed house and landscaped garden. There are 2 main types you’ll see in New Zealand: Finding a housing company and choosing from a plot of land they have available and then selecting a plan from the options they have available which can then be customised to some degree. This option gives you more freedom to change the design to suit your individual needs and preferences. The second is an already finished house on a plot of land. Usually, the housing company will have already completed, or about to complete the house. The advantage of this type of house and land package is that it is ready for you to move in quickly. The type of house and land package you choose will depend on a number of factors such as whether you have time to wait for your house to be built and if you are wanting to make changes to the available plans. A house and land package is favourable with lenders as the price is fixed, compared to building yourself which often has cost overruns.
Design & Build
This option allows you to really bring your dream home to life! Whether it is an empty section you are wanting to build your home on, subdividing or developing a section, building a minor dwelling or demolishing an existing house to replace with a new or multiple homes. You coordinate with the architect, designer and builder and set the budget to work with. You are also responsible for purchasing the land, organising the building consents and managing the build (or hiring someone to do it for you). Getting that dream home usually comes with a price though. In addition to bespoke, one off elements such as the design, these types of builds usually take the longest to complete and often have cost overruns and delays resulting in a more expensive way of building a house. It is important to make sure that there is good communication, understanding of the plans and expectations right from the start!
Kitset Homes
Kitset homes offer a cost effective and flexible way to build your own home. The company supplies the plans and all the major building materials for your new house and then you take control of the building process. Kitsets are a practical choice as they are usually quick and easy to build and often homeowners are able to DIY and complete some of the build themselves if they choose to. National Finance Advisers are experienced at finding the right construction finance for your build. They will make the process a much more smooth and enjoyable experience and are available to help you through the process from explaining the different types of loans available, what paperwork is required, finalising the loan approval, through to ensuring the progress payments work smoothly.
