Along with writing my mortgage tips in the next few months I will be writing about my build experience as I’m sure this will be a scenario many cantabrians will be currently looking at. I have discussed it in previous columns but will give a bit a background/update on where we currently stand with our build:
We have purchased a hill section close to where we currently live. We did spend quite a bit of time looking at other areas but in the end we like the area and like for like the section was far better value than other areas.
A key criteria for the section we purchased was the lack of covenants(none in fact) on it. Many other sections had requirements on house size and style which would have meant us having to build a house far larger than we needed and potentially use some materials we would rather not. We have ended up buying a far bigger section, 2-3 times the size of many of the others we were looking at. While the section was more expensive, being able to build a smaller house will make it the cheaper overall option. As land typically has the most capital gain it should also be the more astute investment option.
We chose to build for a couple of options, firstly the ability to design a house suited to the land and our needs had great appeal. Secondly we felt we were getting better value for money than what houses we could have purchased in the same price bracket.
The budget. I had a preliminary budget in my head, we ended up being almost spot on budget for the land, however after discussions with a QS, architects and builders the build budget has increased by 50%. The Earthquake has helped increase a large portion of this plus a number of other costs. While I would love to build cheaper, we view this section and house as a very long-term option for us and have decided to build the right house, within pricing reason.
The House: An architect friend of mine has designed a house we love and we have forwarded the plans to some builders to get pricing ideas.
Mike Columbus is a founder of sortmymortgage.co.nz and director of New Zealand Home Loans Christchurch Central. Mike can be contacted on 03 335 3527 or 021 369908. This advice is of a general nature only and before acting on it please read my disclaimer which can be obtained by emailing me at mike.columbus@nzhomeloans.co.nz