Advantages & Disadvantages of Building

We often get asked these two questions: "What are the advantages of building?" and "What are the disadvantages?"

And it's important, if you are considering building, that you ask these questions yourself - because they will help you decide if building is right for you. For example, if you like the idea of a brand new home, but need to find a place 'right now', then building isn't for you - because it takes time.

When building - even with a full service building company such as Homebuild - a certain amount of planning has to take place. You'll need to have input into the house design, materials and colours (that's the fun stuff). You'll also need to ensure your living, and even more importantly, your finance arrangements, are conducive to building.

We've put together a short lists of building advantages and disadvantages to help you consider your options.

Disadvantages

1. It takes time – 5/6 months
2. You have to have some place to live during building

Advantages

1. You can select a design to suit yourself
2. You can modify the selected design
3. You can go to an entirely different design
4. Its double glazed to all areas except garage
5. You choose your own colour scheme
6. You can stay with standard heating – or go to something different
7. You can stay with standard plumbing fitting – or go to something different
8. You can locate your house to best advantage – privacy, sun & view
9. You can plan fencing & landscaping to suit yourself
10. You are assured of construction to current & rigorous standards
11. Its your house – customized to your preferences; & its new!

Last but not least – you can see your house rise from the ground! 

SPRING into our Open Home Ohau

For three weekends before Christmas, you'll be able to see Plan 200 in the flesh - or bricks. 

We are running a series of open homes - and this house is definitely on the market. At just $465,000 it is the best value house on the market in the exclusive Ohau Terraces. Address: 51 Ohau Terraces, Ohau. Open Homes from 12-2pm: Sun 27 Nov, Sun 4 Dec & Sun 11 Dec.

The house is 200m2, four bedrooms, double internal access garage. Two separate living areas, positioned for afternoon sun. The exterior is brick with linea features. The interior is in tasteful neutral shades, with a stunning kitchen. Gorgeous outlook from every window over the 1 & 1/4 acre site. 

We're still doing the finishing touches, including sitework. The house will be completed at the first open home, but there may be some sitework left to complete - weather dependent.

For more information on the house, visit our listing on 200 Square

Exclusive Ohau Terraces. Views to the Tararuas. Ohau sits between Levin & the Kapiti Coast. Location of the lauded Bishops Vineyard. Cafe. School.

The Real Cost of Interest Rates

How does the saying go...about clouds and silver lining? Tough economic conditions aren't all doom. Many New Zealanders have managed to hold onto their job, and still maintain a decent standard of living in the face of rising food and petrol prices. And these people are in a position to enter the real estate market and/or upgrade their home in a time of flat/reducing house prices and low interest rates.

Interest rates are tipped to stay at record lows till at least the end of the year. The current best offering seems to be from Kiwibank, who have just introduced their new 'Offset Mortgage' - with a floating rate of just 5.5%.  And banks seem to be loosening their lending criteria again - with Westpac advertising 5% deposit mortgages on TV recently.

The best general source of information about mortgage rates in New Zealand is www.interest.co.nz which provides comparative rates for all the major banks and some not so major (heard of Kookmin???) in a simple table format. From there, you need to talk to the banks directly or through a mortgage broker.

Don't assume that switching your current mortgage to another bank for a small interest rate cut will make you better off - often the fees involved negate any small benefit. I personally went through this exercise about a year ago and found that switching banks would make me $75 a year better off - and decided it wasn't worth the hassle.

Interest.co also have what they claim is the best mortgage calculator in the world (http://www.interest.co.nz/calculators/mortgage-calculator). This allows you to start with either what you can afford to pay - to work out how much you can borrow, or what you want to borrow - to work out how much you would have to pay. As well as the obvious such as changing the mortgage term, there's also the ability to see the difference between paying fortnightly and monthly, and in advance or arrears. Seemingly small factors can make a noticeable difference to repayment amounts.

In the past, this kind of quality information has been 'smoke and mirrors' stuff kept half hidden and overly complex by banks (perhaps not intentionally). Clarity and quality of information should be the minimum one has when making the largest investment of ones life.

Avoiding pitfalls when buying a section could save you thousands

Just a bit of research and planning when buying a section can save you literally thousands when it comes to building your home. Often a lower priced section does not mean that you will save money, and it may require additional engineering and foundation work that adds tens of thousands to your final bill. 

There are plenty of other traps too, like the one the Todd family fell into in the case study below: 

CASE STUDY: “The Todd Family”

The Todd family bought a section in a new subdivision ‘off the plan’. When the fences were put up, following the final boundaries, the shape of the site had significant differences from the original site on paper. As a consequence, the Todds had to get permission from the neighbour to build their new home – whose plans were well under way – closer to the new  boundary.

Homebuild has developed a Tip Sheet to Buying a Section that covers off some of the fundamentals that any prospective section buyer should consider - and it's yours FREE to download, simply click the link below.

Visit our Website to Download Tipsheet on Buying a Section

Rising Timber Prices will add to new home prices

There isn't going to be a better time to build.

Global pressure on timber supply  means that timber prices are set to climb by as much as 20%. Demand is especially high from Asia - China currently take 50% of our exported timber - and production and export infrastructure are already working at capacity. Domestic timber stocks are at a record low.

The expected increased building activity from the rebuild in Christchurch is set to put pressure on domestic timber prices. Added to this are other other local pressures including an under supply of housing in Auckland, and construction following the settlement of the leaky home deal. Timber prices have already risen 7% in recent months according to Placemakers Chief Executive John Beveridge.

Timber accounts for about  10 per cent of the cost of a medium sized, new single-storey house. A 20 per cent increase in the price of timber could add $6000 to the cost of a new home.

With interest rates low, and house prices set to  rise, there isn't going to be a better time to build.

Click here to listen to a podcast from Radio New Zealand for more information

How can I trust my builder?

Building a new home is a complicated process. But it can - and should - be fun too.

There are hundreds (even thousands) of detailed decisions to make - any of which can have an impact on the final price or timeframe of a new house. There are many tradespeople to co-ordinate, many suppliers to deal with, and of course a maze of compliance issues to negotiate with local authorities.

That's why many people choose Homebuild Homes - to deal with all the difficult stuff, and ensuring they get the home they want within their budget.

But there is another key component to building - trust. When you engage someone to build what is probably your biggest asset, you need to have confidence in them. The confidence that they will deliver the home you want, on budget and within an acceptable timeframe. The confidence that the house they build will stand the test of time. How can you develop this trust?

Here are a few tips to help you:

1. Can you work with them? Your initial discussions with your building company are your opportunity to assess them - as a company, and as individuals. Are they approachable, open and easy to work with? Do they answer questions directly and honestly? Do they tell you what you need to hear, or what they think you want to hear? (The difference could cost you thousands). Spend time talking and listening to your builder -and trust your instincts. 

2. What do past clients have to say? Testimonials are a great source of information for you. Of course no one is going to give you testimonials from an unhappy client, but happy clients are not necessarily those for whom the process was all smooth sailing, but those for whom the process worked, and the finished home met or exceeded their expectations.

3. Understand that problems will arise - it's the solution that counts. Even when you build with an experienced builder, expect problems to arise. It might be the section, it might be the weather, it might be the council, it might be a faulty product supplied. What is important is that how these are dealt with by the builder and how they communicate with you - not just the problem, but the solution. Solutions are part of what you pay for. 

4. Licensed Building Practitioners. In order to stem the tide of faulty work, and leaky homes, the Department of Building and Housing has developed The Licensed Building Practitioner certification scheme. This provides you with greater building confidence - and for all restricted work (such as building a new house), we think it is essential. From March 2012, it will be a legal requirement.

Licensed Building Practitioner. LBP # 103806