Let’s take a closer look at the first crucial step: determining what type of property you want to purchase.
Navigating the Kiwi Dream: Choosing the Right Property Type in New Zealand
In our previous blog post, we delved into the top three considerations before embarking on a new construction project. Now, let’s take a closer look at the first crucial step: determining what type of property you want to purchase.
For those unfamiliar with the terminology, property types refer to the basic categorisations that help define the structure, layout, and ownership characteristics of a dwelling. Among the plenty options available, three of the most common ways to get into a new property is to purchase a house & land package, a pre-existing/ established home or start fresh with a design and build package.
Picking the type of property would ultimately be dependent on your needs. Building a new home is a huge investment and is a crucial aspect to your future lifestyle. It is essential to understand discern your long-term requirements, spanning factors such as room size, work-from-home spaces, and location.
We will flesh out each property type to help you figure out which type best aligns with your needs.
House & Land Package
House and land packages are typically new builds, whereby the plans are already set. The term “House and Land” refers to properties that are sold before or during the construction phase. Buyers commit to the property based on architectural plans, digital representations, or show homes rather than a completed structure. This option allows for a small degree of customisation, as buyers will have some input into the final design or features of their home such as paint colours and tiles and benchtops – but all major designs such as the number and size of rooms/ bathrooms etc are already predetermined.
The builder owns the lands, chooses the design, builds the home, and then sells you the house and land together as a package.
Pre-existing Established Properties
On the opposite end of the spectrum, established properties offer a lot more clarity about what you’re buying, meaning the buyer can fully understand the style, design and price point of the building and landscape before buying it.
To help make the purchase decision easier, buyers are able to walk through the property at an open home and look at the different price points for other similar houses in the area, allowing them to understand the home’s future financial value.
Design & Build (Off-Plan)
Design and build packages are when you already own your own section of land and you’re ready to design a customised home bespoke to you. Once you own your land you can reach out to different architects or building companies to design you a home that fits your needs and specifications.
A design and build package allows the buyer to have the highest level of customisation as the home is built bespoke to them. While this can offer the allure of a brand-new living space tailored to your preferences, they also come with certain risks. Delays in construction, unforeseen changes in the final product, or fluctuations in market conditions can impact the overall experience. However, for those willing to navigate these potential challenges, off-plan properties can be a rewarding investment.
As you navigate the exciting process of building a new home in New Zealand, the key lies in aligning your choice of property type with your lifestyle, preferences, and long-term goals. Whether you’re drawn to the safety and transparency of a pre-existing home, or the exciting customisation of a design and build, each option carries its own set of advantages and considerations.
Remember, the journey to your dream home is as important as the destination. Stay tuned for our next blog post on provisional sums.