New builds hot option in Kapiti

Craig Pope Mortgage Advice 2 High res2

Posted 3 months ago by Craig Pope

63 new homes were consented in Kapiti in the first three months of 2017, up by more than 40 per cent compared to the same time in 2016.

It’s no secret that it's been harder to find a home that ticks all the boxes in the local market. Buyers have had to consider other options — like moving to a suburb that wasn’t their ideal choice, or even building a brand new home — so they can get ahead.

The new Ngarara Subdivision in Waikanae is a major development for Kapiti. Not only is it a 850-lot subdivision, it’s also going to increase Waikanae Beach housing stock by more than half over the next 25 years — a significant step forward for our local housing market.

The good news for new-build buyers is that tools like the higher Housing NZ HomeStart subsidies make it easier to get into a brand new home; and new homes fall outside of the Reserve Bank lending restrictions, which is great for investors who want to expand their portfolio.

And the best news of all is that often (but not guaranteed), the completed market value of a new home can be worth more than the combined cost of the land and the build, so it’s possible for owners to get immediate benefit and return on their investment.

If you are thinking about building a new home there are some things to consider:

Already own a home?
Lending rules are stricter when you trying to buy a section without a building contract attached, so make sure you talk to a mortgage adviser about your options. In our experience, mature buyers with more equity can find it easier to secure a section, or a build, before selling their current home. For buyers who aren’t in that position, you can also negotiate with the buyer of your house to rent it back for a year while you build.

First home buyers?
We advise you seek help from a mortgage adviser at the outset so you are aware of the steps involved with getting finance, what the banks are looking for and how Kiwisaver & HomeStart can help — as banks have strict rules around building conditions and processes with low mortgage deposits.

A new home can be a fantastic option if you are looking a for a low maintenance house that ticks all of your boxes. Make sure you talk to a trusted mortgage adviser if you are looking at building, to ensure you get the best advice before the first foundations are laid.

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