Building a home, rather than buying, might be an option you want to consider because you’ll get a brand new home and it could be exactly the home you want. But building can also be a complex task and you’ll want to have all your bases covered. Here’s a quick guide that may help. It’s just a starting point so please get professional advice before taking the next step.
There are generally three different ways to build your home and each has pros and cons. You’ll need to do your own research but we’ve put together a quick outline of some options.
Design and build companies usually manage the construction process from start to finish – from getting consents and project management, right through to build and landscaping. They usually offer a range of standard design options on their houses. Some companies will let you make variations and also allow you to buy your own section.
Kitset homes usually come with the plans and all the materials needed to build your home, including bathroom and kitchen fittings. It’s up to you (or your builder) to manage the construction and tradespeople, including getting any building consents. Some kitset-home companies will allow minor variations at no extra cost. With a kitset home, you usually have to buy your own section.
With this option you design and build your home exactly as you want it. You’ll work directly with a builder, designer, architect and tradespeople – and do everything from scratch, including creating a budget, getting contract works insurance and buying a section.
You could manage the project yourself, hire a project manager, or your builder may do it for you at extra cost. This could be the option that requires the most work (and more involvement from you), but may also be the most rewarding.
Do your research and choose your suppliers very carefully. They are the people who will make (or break) your home-building project.
We have different types of home loans to finance your new home. Everyone’s situation is different so talk to us before you build and let us work out a home loan to suit you.
Benefits of an ASB home loan
There are other benefits to an ASB construction loan for Fixed Price Contracts.
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.
Before any work begins, it’s a good idea to get contract works insurance to protect your building site in case something goes wrong while your home is being built.
It’s also worth checking that your builder has public liability insurance, which usually covers accidental third party damage or injury. If you’re getting a mortgage to finance the building of your home, then you’ll need insurance as most banks (including ASB) wont lend without it.
Keeping your home protected when it’s built
When your home is built, you’ll need to keep it insured. Check out ASB’s home insurance to protect your home. You may also like to get contents insurance – which not only covers your personal belongings, but your home’s furnishings as well.
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The above information is a guide only and should not be relied on as it does not take into account your personal financial situation.