We interviewed recent clients who chose to build new for their first home rather than buy an existing home. Here they tell us why they chose to build new and share their tips for future first home buyers.
Anu Jose: "We chose to build a house because our rental was a new build where we could feel the difference between living in a newly built home and an older existing home and we would not step backwards into an older place. New subdivisions are always good to move into and also it was near to many amenities like schools and supermarkets."
Anu Jose, Christchurch
Ian Burger: "We looked at existing houses, but to be honest, it probably boiled down to finances. I can’t remember exactly when, but the Reserve Bank amended loan to value ratios, which means that we unfortunately weren’t in a position to buy an existing house because we were a low deposit borrower. With a new build, we only had to have the 10% deposit requirement as opposed to the 20%. So, it came down to affordability. Obviously, the upside of a new build is that everything is new, so there is less maintenance, which suits us."
Ian Burger, Auckland North
Dean Taylor: "When we first started looking, we focused on existing homes and went to an auction. The whole process costs money – to get approval from the bank we had to get a property evaluation and building inspections. I think it costs about $2000 just to be able to go to an auction. We sat there and noticed a lot of people competing.
Louise King: "I don’t think we even got a bid before it had gone over our budget to a ridiculous price."
Dean Taylor: "I said if we are going to be paying that sort of price for a house, I’d rather just build a new one. At least you’re going to get a brand-new house. You’re not going to get an older house and not know if there’s potentially any issues with it. The fixed price was one of the main factors we went for. There are not a lot of building companies that offer that. For us it was certainty – that’s what it’s going to cost and it’s not going to cost any more."
Dean Taylor & Louise King, Christchurch
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