When it’s time for a new home, the first thing most people do is browse the listings. But wait – just because it’s the most common option, does that mean it’s the smartest?
When you consider how well the property will fit your tastes and lifestyle, how much more sustainable and energy efficient it will be, and the opportunity to save money in the long term, you might find that you’re far better to build than buy.
Look around your current home. Maybe the power points are in the wrong place, the deck is on the shady side of the house, and there’s a massive picture window looking into the neighbour’s toilet.
Your house wasn’t cheap, but you’re still living with things that aren’t quite right.
That’s the reality of buying instead of building: a compromise you paid hundreds of thousands for.
Buying a house means you’re working with the decisions made by every owner since it was built. Unless you’re ready for a major reno, you’ll have to put up with the tiny bathrooms and bizarre kitchen splashback.
When you build, you have a blank slate. Push the ceilings to double height, play with lighting and go a little wild on tiles – this is your lifestyle and tastes in house form.
Alan and Liz Butler wanted their home to overlook the Katikati hills and double doors in the front and back of the garage. Because they built, they could get exactly what they wanted.
While we love watching Grand Designs, there are no TV shows about older homes with hidden defects. Tree roots in sewer pipes, cracked foundations or damp lower storeys – these don’t make gripping viewing, so it’s easy to forget about the risks of buying an older home. Even comprehensive building inspections can miss major issues.
Build new with a reputable company, and you don’t need to guess what’s hiding behind the walls or in the wiring. And with a 10-year Master Builder’s guarantee, if there are any bad surprises, you won’t be paying to fix them.
Building codes have come a long way over the years – those property listings won’t mention the weepy windows, drafty floorboards and smoky chimney. Most also wouldn’t meet Sentinel Homes’ standards for new builds and will cost a bundle to bring them up to scratch. And that’s not even considering all the smart tech you’re missing in an older home that you could have with your Sentinel Home – think solar panels on the roof, heating, music and lighting you can control on your phone, clever automation and harder-wearing materials.
Build new, and you’re moving into a smart, efficient home – better liveability with much lower utility bills.
Build a new home, and you’re adding value to a property – that makes it much less risky for banks, which is why many of them offer lower interest rates if you’re building. It’s worth hunting around and seeing what’s on offer when you’re making your decision.
Because New Zealand needs more homes, the government often offers incentives to encourage more people to build. Be sure to keep an eye out – you may find you’re eligible for a grant.
While NZ doesn’t technically have a capital gains tax, there is the Bright-Line Tax – if you buy an investment or second property and sell within ten years, you’ll pay tax on any profit you make. A new build comes with a lower threshold – you only have to hold onto it for five years to avoid paying tax.
It’ll also keep more money in your pocket month to month. Most investors can’t deduct interest on their rental mortgage as an expense anymore, so they pay more tax. But, build a new investment property, and you can. That’s cash in your pocket.
And the sweetest bit of all? Build a new investment property, and you’ll need half the deposit you would if you were buying. The rules now say you need a 40% deposit to buy an existing investment property and only 20% if you’re building.
Bottom line? If you’re looking for a property as an investment, building new is far smarter.
With a fresh start and a clean slate, you can create a home that is entirely your own, avoid compromises, build to a higher standard, and be covered by a 10 Year Master Builders Guarantee.
Convinced? Time to start dreaming – check out these incredible design ideas from Sentinel Homes.
Let’s get together for a free, no-pressure meeting with one of our team, at your place or ours.
We can't wait to hear your ideas!
