As populations grow, cities tend to expand. So, while you may not find any vacant land to build on in the centre of Auckland, there are still plenty of places in the surrounding region where you can build a new home on. However, the closer you go to the cities, the higher the prices go up.
As such, we’re going to look at some ways to get your dream home built in the location you love. Firstly, though, let’s take a look at some of the reasons you might be having trouble finding affordable housing, and also a reason o bite the bullet and start building.
Why is Auckland housing so expensive?
When you’re talking about the real estate market, specifically the sale of existing homes, it’s true that prices recently in Auckland have come down, but they still are much higher the rest of the country. So much so, in fact, that Auckland Council considers $650,000 to be an affordable level in the area.
The property market over time is still increasing, yes there is current dip but house prices are still higher than they were 2 years ago and over the long term will only go up in price. This is true of Auckland, and indeed any popular city in New Zealand, and when there are price spikes they are generally more pronounced.
This is mainly due to a housing shortage which is making it very difficult to access new land in desired locations.
Rising rental prices
One of the best reasons to consider building a new home is the cost of rental properties in NZ. While interest rates are also experiencing an upturn, making mortgages slightly more expensive, it’s nothing compared to the rising costs of rent.
The other big thing to consider here is that when rental prices go up, they usually stay up. While interest rates go up and down according to the economy, landlords are very reluctant to decrease rent prices, meaning you’re looking at continually rising rents every year.
So, escaping the rental market and getting yourself into a new home is a great idea. But what are the options for getting a new home at an affordable rate?
Knock down rebuild
If you’re dead set on building a new home in a heavily populated area, realistically the best option is to buy an older home, knock it down and start again. This means you get the land in your preferred location, and you can build your dream home.
It should be noted that this can be expensive with demolition costs on top of building the new home, so it may not necessarily be ‘affordable’ unless you’re willing to build a more budget-conscious home.
The other way to find affordable housing in Auckland is to simply lower your price range and see what’s available. Typically, any houses falling into the ‘affordable’ category in Auckland are probably not going to be beautiful, modern homes. So, you’ll need to be ready to get busy.
This is a preferred option for people who are pretty handy with DIY, because you can take your time fixing up what you need to and it generally costs less than hiring contractors for everything.
House and land packages
Believe it or not, there are still house and land packages available around Auckland. Being heavily populated already, Auckland’s house and land packages are more likely to be on the outskirts of town, but it’s a good way to get affordable housing.
New sub-divisions are happening in Auckland as the council and government look for ways to end the housing crisis. So, you’ll find that a lot of smaller houses are being built, perhaps two on a block in some cases. Keep your eye out and see if you can land a bargain.
Again, it’s not always easy to find vacant land, but if you can, this is a great way to get into the housing market. If you can find affordable land, you’ve got an opportunity to build your new home for an affordable price. It may not be the mansion you’ve always dreamed of, but it will certainly be a brand-new, modern roof over your head.
Another option, especially if you can find affordable land, is to build a tiny house. There are plenty of companies offering prefab container homes or other tiny house designs. If you’re happy living in a smaller space, it’s a great way to carve out your piece of Auckland.
The other benefit to tiny homes is that they are usually very eco-friendly and living costs such as power are almost non-existent, which gives you more money to keep saving for that dream home.
Share a mortgage
Finally, it might not be everybody’s cup of tea, but there are ways to share mortgages when you build a new home. For example, you can buy a block of land and build two smaller homes. Purchase with friends or family and split the purchase price accordingly. You can also build one larger home that’s semi-detached or offers everybody their own space. There are always risks involved when mixing finances with friends and family, but it’s definitely an option.
Looking for affordable housing in Auckland?
In the more populated parts of New Zealand, such as Auckland, new land and houses are rare. However, like any city or urban area that becomes populated, the area typically expands in a housing sense. This means there are still plenty of ways to get your new home just outside of Auckland. Or if you’re able to afford it, a knockdown rebuild in Auckland is always a good option. No matter what your current circumstances, contact the team at Stonewood Homes today and we’ll be happy to help.