As a first-time homebuyer in New Zealand, the process of securing your dream home can feel overwhelming. However, buying a new build could be the perfect solution to make your first step into property ownership smoother and more rewarding. This guide walks you through the benefits of buying a new build and the step-by-step process to make it happen.
Why Choose a New Build?
New builds are particularly appealing for first-time buyers for several reasons:
- Modern Amenities: New homes come equipped with the latest features, from energy-efficient appliances to contemporary designs. No need for costly renovations or updates.
- Lower Maintenance Costs: Since everything is brand-new, there’s less risk of immediate repair or replacement costs, saving you time and money in the long run.
- Government Grants and Loans: When purchasing a new build, you may be eligible for the KiwiSaver First Home Grant, which offers up to $10,000 for individuals ($20,000 for couples) towards buying a new build. The First Home Loan also allows eligible buyers to purchase a property with as little as 5% deposit.
- Built to Last: New homes are constructed according to the latest building codes, ensuring high levels of insulation, energy efficiency, and structural integrity. Plus, most come with a 10-year builder’s warranty, offering peace of mind.
Step-by-Step Guide to Buying Your First New Build
- Assess Your Budget - Start by reviewing your financial situation. Calculate how much deposit you can afford and what your monthly mortgage payments would look like. Aim for a 20% deposit, but remember that, with the First Home Loan, you may only need 5% for new builds.
- Get Pre-Approved for a Mortgage - Mortgage pre-approval is crucial when buying a home. This will give you a clear picture of how much you can borrow and what properties are within your budget. Pre-approval also shows sellers that you’re a serious buyer.
- Explore New Build Developments - Work with a trusted real estate agent, like those at KEY2, to explore new build developments in your preferred area. Agents can provide you with detailed information about upcoming developments, availability, and customisation options.
- Pro Tip: Ask your agent about the expected completion date, customization choices, and what’s included in the sale price (e.g., landscaping, fencing).
- Take Advantage of KiwiSaver - If you’ve been contributing to KiwiSaver for at least three years, you may qualify for the KiwiSaver First Home Grant. This is particularly valuable for new builds, as you can get up to $10,000 per person to help cover your deposit.
- Make an Offer - Once you’ve found a suitable new build, work with your real estate agent to make an offer. The advantage of new builds is that you often have the chance to customise the finishes and design to suit your style.
- Secure Your Loan - Once your offer is accepted, finalize your mortgage. Make sure you have a lawyer to assist you with the legal paperwork and ensure everything is in order. With new builds, be sure to understand the staged payment process (if applicable), where payments are made at different stages of construction.
- Watch Your Dream Home Come to Life - Depending on the development stage, your new home may still be under construction. This is an exciting time as you can watch your future home come to life! Regular updates from your developer will help you track progress.
- Move-In Day - After the home is completed, inspected, and the builder’s warranty is secured, you’ll be ready to move in. Welcome to your brand-new home!
If you're a first-time buyer looking for a new build in New Zealand, contact us today to learn more about available properties and how we can help you make homeownership a reality.
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