To buy or to build?

For those facing the challenge of buying their first home, Dean McGuigan from Golden Homes explains why research is vital, especially in the current market.

Wahoo, you’ve decided to take the plunge, and you want to become a property owner! Now it’s time for research, research and more research. If you have been reading my columns, I’m sure you know I am a big advocate for going into building a new home with your eyes wide open and asking as many questions as you can from the builder of your choice. The same can also be said for looking at all the available options, including those you thought might not even be possible.

At a time when the majority of homes and sections are being taken to auction, this can be hard on those who have been advised by their lender that they don’t have the sky as their limit; especially when they are wanting to put their hand up, without an indication of what a property will even sell for.

Whether it’s a section you’re after or an existing home, property auctions have an exciting dynamic and are not for the faint-hearted. In the current market, it’s very much a case of ‘you’ll need to be in to win’ and then hope you are the highest bidder with the budget you have.

I have attended a few auctions for sections recently, in anticipation of offering house and land packages to our clients; I am constantly surprised by the ever-increasing values for existing homes, and the knowledge that existing homes are selling for similar, sometimes higher values than off-the-plan new build options.

Quite often I can see the surprise on some of the attendees’ faces when they realise they are off the mark with where they hoped it would finish, ultimately with them not being the top bidder.

There was a moment recently where I thought to myself, if only these people had done their research into a new build with a fixed price contract. They would know exactly where they stand, what they will get, and see the price upfront.

Okay, you can’t move into it tomorrow; however, there are more and more titled sections being offered to the market, so with the help of an excellent building company to help you design to suit your budget and the section, you can buy a brand new house and land package, have it built in a timely manner, and know exactly how much it will cost for you to own it.

Capital gains are likely to continue to grow during the build process, and you can purchase without having to go into the ring against other potential purchasers to pay the maximum amount to own the home of your dreams.

0800 22 22 36 | goldenhomes.co.nz