Deposit requirements for new builds are exempt from restrictions for both owner occupiers and investors – this means you could purchase a new build with a 10%+ deposit but is financing a New Build home the best home loan option?
The decision between purchasing a new build or an existing home depends on various factors, and both options come with their own set of advantages and considerations. Here are some factors to consider when deciding between a new build or an existing home:
Advantages of New Builds:
Customisation: New builds often allow for more customisation in terms of layout, finishes, and features. Buyers may have the option to choose certain aspects of the home to meet their preferences.
Modern Amenities: New builds usually come with modern amenities, energy-efficient systems, and the latest building technologies. This can result in lower utility costs and a home with the latest design trends.
Warranty: Many new builds come with a builder’s warranty, providing added peace of mind regarding the quality and durability of the construction. This warranty may cover repairs or replacements for a specific period.
Less Maintenance: Since everything is brand new, maintenance needs are generally lower in the initial years compared to an existing home. This can be appealing to buyers who want to minimise repair costs.
Energy Efficiency: New builds often incorporate energy-efficient materials and technologies, potentially leading to lower utility bills and a smaller environmental footprint.
Considerations for New Builds:
Cost: New builds can be more expensive than existing homes. However, this can vary based on location, the level of customisation, and the local real estate market.
Landscaping: Newly built homes may not have mature landscaping, and it might take time for outdoor spaces to develop fully.
Completion Time: If purchasing a home before it’s built, there could be a wait time before moving in. Delays in construction or unforeseen circumstances may impact the completion timeline.
Advantages of Existing Homes:
Established Neighborhoods: Existing homes are often located in established neighbourhoods with mature trees, established services, and a sense of community.
Immediate Availability: You can move into an existing home as soon as the purchase process is complete, avoiding the wait time associated with new builds.
Character and Charm: Older homes often have unique architectural features and a sense of character that might be missing in newer builds.
Negotiation Room: Sellers of existing homes may be more open to negotiation on the price compared to builders of new homes.
Considerations for Existing Homes:
Maintenance and Repairs: Older homes may require more maintenance, and there could be hidden repair costs that come with aging structures and systems.
Energy Efficiency: Older homes might not be as energy-efficient as new builds, potentially resulting in higher utility bills.
Limited Customisation: While you can renovate an existing home, the level of customisation may be limited compared to building a new home from scratch.
Ultimately, the choice between a new build and an existing home depends on your preferences, budget, and priorities. It’s advisable to carefully weigh the pros and cons of each option, considering your lifestyle, future plans, and financial situation. Consult with Vega Mortgages to discuss your home loan needs. Contact us today on 0800 468 731 or email tim.oliver@vegalend.co.nz.
Tim Oliver is a Financial Adviser for Vega Mortgages. The information provided in this article is not intended to constitute advice to any person.