Why new builds can be the low-cost option in the long-term
Almost every Kiwi who wants their own home asks the same question: “Should I buy an existing property or build a new one?”
In the recent past, buying an existing home was often the favourite because it was considered the cheaper option. Since then, house prices in Auckland have increased and the initial cost of building new and buying existing are now comparable in most locations throughout the city.
The difference is building or buying a new property is often far cheaper in the long run.
Low maintenance and repair costs
If you buy an existing home, particularly one built more than 20 years ago, you better be handy on the tools. That’s because older properties typically require a lot of repairs and maintenance – a rule of thumb is that you can expect to spend 1% of the property’s value on upkeep every year.
With a brand new home, you may not have to worry about maintenance or repairs at all for the first 10 years. Even if something does go wrong, in some cases it may be covered by a 10 year MasterBuild guarantee that applies to weather tightness and structural problems. There’s also a chance it may be covered by warranties under the Building Act.
Building an investment property allows you to tailor it to what tenants want.
Auckland is full of old villas and bungalows built in the 1920s and 30s (and even before then). These are often beautiful homes but they almost always leak warmth like a sieve through gaps in windows, floorboards, doors and ceilings. If they’re not double glazed, you could lose as much as 31% of the warmth in your home through your windows.
Your bill for heating in winter and cooling in summer will go through the roof (in more ways than one). In brand new homes built with advanced building techniques and modern insulation, you’ll be toasty no matter the weather – you may not even have to turn the heat pump on!
Lower replacement costs and less hassle
If something goes wrong in a new build it’s usually easier to fix. A smashed or cracked window can be easily replaced without worrying about refitting the window frame. New parts for appliances, door handles, windows, taps and other fittings can easily be ordered and replaced. And since you’ll have a relationship with the builder or developer, you’ll know exactly who to call if you need a hand.
The fact is new builds are a lot less hassle than older homes. You won’t need to waste your time on maintenance and repairs, or waste your money heating running your heat pump on full tilt. You can just sit back and enjoy comfortable, easy living. Sound good to you?
To learn more, give the team at Golstruct a call to talk about building your dream home.