Why Build A New Home?

Choosing whether to build a new home or purchase an existing one is one of the most common questions many new homebuyers face when seeking a new home here in NZ. A number of factors will influence your decision—location, property size, personal requirements, and budget, just to name a few! To help you make the right choice, we have put together this handy guide.

5 Common New Build Strategies

There are several common ways to approach a new build project in New Zealand, these are:

• Self-Managed. Buy the land, find a builder, architect and/or designer and manage the whole project yourself. This is the most time-consuming option, but it offers a significant degree of control. 
• Hire A Project Manager. Similar to the above option, but instead of self-managing the build process, you hire an experienced project manager to do all the organising and deal with all the contractors, keeping everything on track for you. A popular option for those building more complicated custom-designed houses where timing is important.
• House And Land Packages. A popular turnkey option for many first-home buyers, this involves choosing from the building company’s available sections and then selecting one of their existing plans. This simplified version of the new-build process saves time and money, plus you know exactly what you are getting.
• Buying Off-Plan. This one involves purchasing a new build directly from a build company or developer, usually before the build is complete. Can be a great option for property savvy investors.
• Section First. Having already purchased your own section, this is followed up by hiring a building company or builder to build your new home either using existing plans or with semi or fully custom-designed options.

14 Benefits Of Building A New Home

Why build a new home? Are you still undecided about whether to build new or purchase an existing home? Let’s look at some of the main benefits of building a new house.

1. Greater Energy Efficiency

Generally speaking, the newer the home, the more energy-efficient it will be. This is due to progressive improvements in the NZ Building Standards, which ultimately ensure all new builds are warmer, dryer, and well-lit. Things like higher-efficiency insulation, doors, and double-glazed windows naturally encourage the associated energy efficiency and improved living conditions. Take a look here for more information on how the NZ Building Code works.

2. You Can Get Creative!

Being able to add your own style and preferences to a new home is probably the main reason why people choose to build instead of buy. Whether it’s industrial style, ultra modern or character based – your personal preferences can be accommodated right from the design phase  – you really are starting with a blank canvas.

3. Greater Customisation

Everything from room size and location through to things like extra storage in the garage or built-in entertainment systems. Building a new home is the perfect opportunity to design and build specifically to suit not only your family’s needs but the needs of the section itself. This could include things like maximising sun exposure to important rooms, having your living room facing north, or adding a kids playroom? It’s all up to you!

4. Less Initial Maintenance

With every new build comes the advantage of guarantees for materials and workmanship. Depending on your build contract, this usually means no costly maintenance or repair bills in the first 12 months. Plus the use of modern building materials typically results in less maintenance during the first 5-10 years. What’s more, when everything is new (appliances, fittings and fixtures, heating, etc.) the likelihood of needing replacements is very low.

5. Better Resale

Newer homes are always easier to prepare for sale and are favoured by some buyers for their modern, low-maintenance appeal. Often if a buyer’s choice comes down to an older home that requires renovations vs a newer home and its move-in-ready benefits, they will almost always choose the newer home and often be prepared to pay more for it.

6. Higher Quality Materials

New homes have to meet more stringent building and compliance standards. In New Zealand, this generally means new homes will be double or triple glazed, better insulated and well heated.

7. No Messy Renovations

Buying an older existing home will almost always mean renovations are required to some degree – sometimes this can even come as an unwanted surprise! Whether it’s adding an extra room, a kitchen refit, new carpet, or doing up the bathroom, home renovation takes time and money.

8. Greater Customisation

Participating in the design and build process means you get to make decisions that help create living spaces specifically tailored to your needs. This could include anything from flooring choices through to moving walls or adding an ensuite. Along with tailoring to your own needs, you can also tailor the property to the market, which is especially important for resale and investment purposes.

9. Reduced Operating Costs

Newer homes tend to apply more energy-efficient principles across the board, reducing ongoing operating costs naturally from green systems and appliances — this might include high-efficiency appliances, more efficient water heating (hot water heat pumps), alternative electricity supply (solar power) and water supply improvements like water collection/reuse.

10. Modern Materials

Newly constructed homes are built with more modern construction materials which offer the advantage of advanced durability and safety features. For example rot resistant cladding and recyclable materials. New builds will by default meet NZ’s current Healthy Homes Standards (which are now a legal requirement for all rental properties). 

11. Guarantees And Warranties

When you purchase a new home you will automatically be entitled to any remaining guarantees or warranties associated with the property. This will likely cover building materials and workmanship (usually fully warrantied by the builder for a minimum of a year), appliance warranties, and things like any plumbing and electricity issues that may arise. So if a tap leaks or the heatpump doesn’t work you will be covered, unlike an existing home where if you move in and something doesn’t work it is usually all on you.  

12. More Financing Options

Depending on your building company, there may be more financing options when building new. Some of the larger building companies in NZ may have mortgage companies they work with or offer things such as lock-in pricing when you sign the contract, avoiding the possibility of price increases during the build process.

13. Building Can Create Instant Equity

In some cases, when completed a new build is often worth more than the cost of the house and section combined. As with any property you would expect its value to slowly increase of time, so the time lapse between starting and completing the build can offer this benefit. Something that can be of interest to investment property buyers.

14. Favourable First Home Buyer Conditions

If you meet the requirements for the Kāinga Ora support when building a new home there is the potential for a reduction in the deposit amount needed. For example, if your bank requires a 10% deposit for a first home buyer deposit requirements could be as low as 5%. Check out the Kāinga Ora website for up-to-date information.

Disadvantages To Buying A New Home

Having covered all of the benefits of a new build, it’s only fair to address the disadvantages, too—nothing is without some drawbacks, right?

1. Construction Delays

It’s common for any building project to experience unforeseen delays. Weather will always play a part, along with material and labour shortages. However, once you’ve paid the deposit and signed the contract with your builder the build price should remain the same no matter how long it takes – but it always pays read the fine print on this one!

2. Lack Of Landscaping

More often than not, having completed your new build, you will find the rest of your section is pretty bare. Planning and preparing landscaping and lawns (and waiting for them to grow) will leave your section looking a little unattractive for a while.

3. The Wait

When you purchase an existing home, you can usually move in within 1-2 months, however new builds will require at least 6 – 12 months before you can move in. The crossover between living circumstances can be a bit of an issue for some people.

Like many decisions when buying a home, what’s right for you will depend on your personal circumstances. If you would like to discuss your build options in Canterbury with a reliable local builder, give the team at JAR Builders a call today.