Why now is the time to build and our comprehensive checklist
of how to choose the right builder for you!
If you’re considering whether it’s a good time to jump in on the journey to building your dream home, it can sometimes feel like a bit of a difficult and daunting decision. Especially with everything you may be hearing in the market.
But never fear, we’ve put together this 5-point checklist to help you make what can seem like a difficult decision and get some clarity around whether it’s the right time for you.
The next best time is now!
1. Consider Your Primary Motivation
We thought we would kick-off with this as the first in the checklist, as sometimes the decision is actually more ‘family’ than financial. By this we mean that if you need a larger place to live for a growing family, a first home buyer that is sick of paying rent or downsizer that doesn’t need the space you have, that it can just make sense to start looking for a new home.
Not all decisions are purely based on mortgage rates or anything else that is happening in the marketplace, you have to really consider your family’s needs and requirements so you can live the lifestyle you love.
2. Carefully Consider Affordability
While we have seen increases in the cost of homes nationwide here in New Zealand for some years, if there’s one thing in property it’s that it is usually a solid investment. We absolutely condone not ‘overstretching’ yourself however with predictions that property prices will not fall anytime soon but potentially rise in a more steady fashion, getting in earlier can actually mean that you reap the benefits of the growth realised in your home and land sooner. This has resulted in some cases that your new home will actually be valued more the day you walk through the doors for the first time.
We have also seen that while new homes prices have increased due to increased land values and material costs, existing homes prices comparably have grown more significantly making a new home attractive in comparison.
3. Look At Migration Patterns
While we haven’t seen much, if any, migration over the course of the last 2-years given the situation we all faced, however with borders opening soon we are sure to see a flurry of new, or returning migrants.
NZ economists are predicting that home prices would double in five years if net migration returned to pre-Covid levels, and if net migration falls by 60% on pre-Covid levels, home prices would still increase almost three quarters by the end of 2026, if all other factors were held constant.
4. Buy Your Best Fit
We always recommend buying a home that works for you no matter what the market is doing. If you need a home and the layout and area are good fits, then timing the market is hard as this suits your needs.
For this reason our extensive range of designs are fully customisable and something that we find Kiwi families just love.
5. Shining The Light On Land
It’s no secret that we have been facing land scarcity issues in New Zealand for the past 10-years and this issue doesn’t seem to be sorting itself out anytime soon.
As a result, this coupled with low interest rates is driving the price of land up and will continue to do so. However, while this is happening, the affordability of building new still outweighs buying existing stock but we would advise that in order to benefit from the rise in land prices, you grab that piece of New Zealand as quickly as you can.
So there it is, our 5-point checklist to take into account some of the big things we see that make the choice to start your journey now the right one and why we think there’s never been a better time to build your dream life and home.