The reason for buying a newly built home for some is obvious. They need a house built with modern standards and have a new feel and shiny appearance. It is also a fact that buying a new home process in New Zealand is a little different than buying a pre-existing home. If you are into buying new homes then here are some common purchase processes you need to be aware of.
In real estate, there is hardly a single way of doing things. Even with a new build, you have options like –
Buying off-plan homes or houses & land packages
Off-plan, home means you are buying vacant land before the construction is completed. It can be before the construction starts or is in the building process. You can approach any reputed residential construction company for the best Kiwi house and land packages. However, you need to understand a little about buying off-plan houses and land package.
- The price is fixed.
- The initial deposit is paid before construction starts. There are no more payments to be made until the project completes. After settlement, you become a legal homeowner of the property.
- Normally, you will not have to pay interest on a home loan until the final settlement.
Purchase of land-only
You will buy a vacant section and hire a contractor to build a home. In general, developers have a huge portfolio to customize the home but you also get the chance to hire another builder and designer to work with. It will add to the costs and take longer in comparison to choosing the developer’s standard designs.
You purchase the land-only and buying process is just like getting a mortgage for the pre-existing property. Consult the lender, who will evaluate your financial status and determine how much they are keen to lend you.
Aspects to consider while shopping for new build home
Developers have a bad rep like delayed projects, corners cut, and specifications not fulfilled. Before signing an agreement with a builder or developer it is necessary to do some research. Find out their other established development and what previous customers have to say about their credibility. Even check who they subcontract.
Home and land packages are away from core centers. The inner city area has few vacant lands for development in comparison to the outskirts. You can get influenced while hiring a developer and choosing a home design but always bear in mind that you will possibly live in this house of a few years that suits your lifestyle.
Take virtual tours to get a feel of the home you will live in for several years or a lifetime. Just checking the floor plan is not the same as being present in person. Virtual tours are the best way to get an idea of what you are buying.
With off-plan homes, you will get to change the internal colors. Discuss with the developer, if an extra modification can be added to the agreement. The chances that you will be charged extra are high, but anyway never hesitate to discuss and negotiate.