Tom1983

Hello

Has anyone on here ever built their own home or know anyone that has done so - using a home building company?

We like the look of Generation Homes, Stonewood and Golden Homes at the moment but any others that can be recommended we'll look at. I'm not sure whether this'll interest Davros but an attraction for Generation is that they can build a new home from just 5% deposit. I think there's certain criteria (probably first time buyer) but we're finding that out sometime this week.

Also, if someone has done this - are mortgages obtainable for this? I've seen Westpac do a construction loan, and it could be that the building companies have their own financial links - just not 100% sure how they work. I have got an appointment with a mortgage broker but further advice on here would be greatly appreciated

Robbie2010

Golden Homes uses steel framing ... I cant see that being thermally efficient.

jjg

We have just had our home rebuilt after the quakes and we chose Carl Taylor Homes. They did a great job to a pretty high standard.

TheCockneyKiwi

Would be interested to know how you get on Tom. Having similar thoughts.

Tom1983

Well don't you learn something new each day

If you have a 10% deposit, then this is the only way forward unless you meet the requirements for a Welcome Home Loan

Which guess what, if you have not been a resident for 2 years, you cannot get. As its a government initiative - you are required to meet the resident requirements. Don't bother reading NZ immigration site about the difference, a nice discussion with the team at the Welcome Home Loan confirmed this. Its similar to wanting a student loan, you need to be an official resident for 2 years.

So then onto houses that are in the process of being built - nope these do not count. Reason from the reserve bank, "Newly built houses have already been built, with construction usually funded by developers (not subject to LVR restrictions) or investors." House and Land packages are an interesting one, there seems to be 50/50 about it. The reserve bank are set to release a statement on this since they're arguing that someone has already bought the land and commenced building on it - classing it in the newly built houses section. However, customers are arguing that because your buying the land and the house off them, it's not a private sale and therefore part of the construction loan since you're effectively building it from scratch. The developer has only given you the design as to what will be built on there.

So therefore its the construction loan that is the way forward and you can get a construction loan to include purchase of the section. You can get anything between 80-95% it seems for a construction loan, just note that if its higher than 80%, the interest payments increase by .2%. Interest.co.nz is a good site to look at, you'll see what banks etc are offering. I believe the best ones are Sovereign and Westpac for construction loans (Sovereign are part of the Commonwealth bank therefore I believe ASB are the ones to use).

Onto the building companies, the best ones we've seen are Platinum Homes and Golden Homes. This is because they include blinds, fencing, landscaping and heating in the valuation of the build. Stonewood offer sone, Generation offer blinds only, GJ Gardner offer none.

We're going to be speaking to Mike Greer and Total Homes as well - Carl Taylor are unforunately out of our price range unless we bankrupt ourselves with mortgage payments. There do seem plenty of house build companies available but costs can vary. It then depends on size etc

We're speaking to NZ home loans and New build loans this week so I can provide further information on this.