 |
 |
||
Darren Pratley - Director
The Home Loan Group (NZ) Ltd
Building A Home
For many people, building a new home is the ultimate form of home ownership. It can represent an opportunity to create your idea of the perfect house, subject to the limitations of your budget and imagination.
Far from being an option open only to those people who have substantial equity from the sale of an existing home, building can be a realistic option, even for first homebuyers. Naturally the process is inherently more complex and more time consuming than the purchase of an existing dwelling, but the rewards can make the effort worthwhile.
The process can be made even simpler by using a building company or builder who is able to arrange the drawing of plans, a fixed price contract, a Master Builders Federation 5 year guarantee of workmanship and materials, landscaping and many other features to take the hassle out of the project. This complete package approach is not limited to "off the rack" homes and best of all, you may be able to obtain financing for up to 90% of the cost!
Suddenly, building a new home looks rather appealing!!
Advantages of using a building company:
- It saves you time
- You have the protection of a fixed price contract
- You have access to the services of an Architect at little or no additional cost
- You benefit from specialist help, even for decoration etc.
- Workmanship and materials are guaranteed
- You are able to view finished homes prior to committing yourself
- Bulk purchasing power means lower cost to you
Things you need to know:
- Depending on the Lender, they will lend against the contract price or registered valuation of the completed home.
- Even with a fixed price contract, you should budget an additional say, 10% for unforeseen costs
- The lender usually pays out loan monies by a series of progress payments as construction progresses.
- Some building companies offer house and land packages
- Depending on the Lender, they will lend against the contract price or registered valuation of the completed home.
- Even with a fixed price contract, you should budget an additional say, 10% for unforeseen costs
- The lender usually pays out loan monies by a series of progress payments as construction progresses.
- Some building companies offer house and land packages
Getting Started:
Assuming you've had initial discussions with a building company and have found out what services are offered, price etc. we strongly suggest you talk to us next, about finance. We'll tell you the extent of your borrowing power, what your up front costs will be and whatever your financial situation, we'll match you with a lender who offers the most competitive loan package and meets your needs.
We also strongly suggest you have eligibility arranged at this point in time. This enables you to go back to the building company and fine-tune your requirements based on a realistic assessment of your borrowing ability.
Ultimately, you will need to provide us with:
- A copy of the Building Consent from the local Council
- A copy of plans and specifications for your new home
- A copy of the building contract
- A registered valuation of the completed value of the dwelling
- Any other information requested by the lender