Choosing the right section for your new home

There are many things to consider when buying a section, and getting organised early could save you time, money and headaches later on. Here are some steps you could take to make section shopping easier. It’s just a starting point so please get professional advice before taking the next step.


Get prepared to buy a section

Before you start shopping, have a clear idea of what you’re looking for as this will narrow down your search.

For example, where do you want to live? How close do you want to be to shops, schools, hospitals and public transport? Is sun important to you? What about views?

Research the cost of sections in the areas you're looking in. Check online property sites such as Trade Me Property and Realestate.co.nz, or ask a local real estate agent for past sales in the area.

Also, talk with us about a home loan pre-approval so you know exactly how much you can spend when it’s time to buy.

Top tip:

Apply for a home loan pre-approval early. Knowing upfront what you can spend not only saves time, but gives you certainty as to how much you can afford.


Finance your section with an ASB home loan

We have different types of home loans to help finance your section purchase and the construction of your new home. Everyone’s situation is different, so talk with an ASB home loan specialist – we’ll be happy to work with you to find the loan structure that is best for you.

Benefits of an ASB home loan

  • Competitive interest rates.
  • When building, drawdown your construction home loan, over 12 months, as you need it.
  • Flexible home loan options to suit your budget and requirements.
  • A choice of loan terms – from 6 months to 30 years.
  • Depending on your circumstances and your building contract, valuations are sometimes based on your completed home, instead of the costs to build, making it easier to plan your costs.

Talk with an ASB home loan specialist now.

Did you know?

You could be eligible for a KiwiSaver HomeStart grant of up to $5,000 to purchase an existing home, or up to $10,000 when building a new home or purchasing a newly built home.

If you’re building or purchasing a newly built home with someone else and they are also eligible, you could get up to $20,000 between you. Check here to see if you and the property might be eligible.


Inspect the section before making your offer

Once you’ve found a section you like, it’s a good idea to ask your architect or builder to inspect the site with you before you buy. Here are some tips for discussions with them at your inspection.

Documents your lawyer may need to check

Here are just some of the documents your lawyer may look at.

Top tip:

Check the district or unitary plan for your region to check for any planned changes or restrictions to your neighbourhood and district. These plans may affect your final decision on which section you buy.


Time to buy your section?

When you’ve done your homework, got your lawyer involved and sorted your finance, you could be ready to buy your section. Alternatively, you could make a conditional offer, subject to checking the LIM and title are to your satisfaction. This will give you more time to research the property and get your lawyer involved.

Buying a section usually involves you making an offer on a Sale and Purchase Agreement, and then negotiating with the seller through a real estate agent until you agree on a price.

The great thing about the offer and negotiation method is that you can make your offer subject to conditions. This is called a conditional offer. The conditions might be that you want to get the approval of your architect or you want to see the LIM report.

Other methods of buying could involve an auction or private sale

Your lawyer is the best person to advise you on conditional contracts. Please talk to them before you sign anything.

Apply for an ASB home loan

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Any questions?

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0800 100 600

Other helpful guides

ASB’s lending criteria, terms, conditions and fees apply. 

The above information is a guide only and should not be relied on as it does not take into account your personal financial situation.

Home loans Choosing the right section for your new home