Home Maintenance

Building A New Home Vs Renovating – What You Need To Know


Building a new home is an exciting experience, but it can be daunting. With all the things you have to think about and plan for – where does one even start? There’s so much information available on building projects nowadays that making sense of everything can seem impossible!

A key factor in 2021 is the shortage of building materials. Master Builders in Hamilton have commented that getting hold of building materials has been made more difficult due to Auckland being in lockdown.

Your Master Builder will be able to guide you through the building process, but in order for it all go smoothly and with a minimum amount of hassle on your end, you’ll want to consider the following before starting:

  • New homes are built to more stringent building and compliance standards than renovated properties.
  • Newer homes require less maintenance than older homes.
  • The location of your land, and the size or shape of it can have a big impact on what you want to do with construction projects. The terrain under which we build our homes is more significant than many people realize; there may be times when choosing one site over another is not just about aesthetics but also how easy they are for workers who need access roads built first!
  • Building on an empty section can be more of a complicated process than you might think. It may involve more paperwork and legal processes, but it will ultimately be worth your while!
  • You don’t have to settle for anything less than the perfect home when it comes time to build or buy. A house is not just a place where people live, but rather an extension of themselves and their family through memories made in its spaces over decades-worth of lives lived together as one big happy reunion!
  • Construction projects always have unknown factors, and it can be difficult to predict what will happen. In new builds the uncertainty is reduced because many of these issues are resolved during project scope or design stages before work begins
  • The rural building process can be more complicated than a city project. You need to think about things like, what is the best location for your home, if there are any additional utilities in required (septic tank and emergency water supply), etc.?

You might want to get in touch with your council and ask them about the land you’re thinking of using. They can help explain how things will work, whether there are any permits required for this project or not (i.e., if it’s covered by law), etc.

The council can also provide a project information memorandum (PIM), which provides the specific needs of your design and helps to make planning easier.

House and Land Packages in Hamilton

One way to make things easier is to purchase a house and land package, so that you only have to deal with one organisation.

Lovely and Reginald Abellana​ purchased their first home this way, and said that, “it felt like they had won Lotto!” The pair were selected from among 30 would-be buyers of an affordable house and land package at Jack’s Landing in Hamilton. 

Hamilton’s median house price is $768,000, as of April this year, but has now increased to $770,000, while the national median house price in June was $820,000.

Things to bear in mind

We recommend engaging a Registered Master Builder. When you engage a Registered Master Builder, their skills and experience will ensure the project is completed to your satisfaction. If something goes wrong down the road with remedial work needed following completion of this process, then they have an amazing guarantee that can help!

If you notice something that doesn’t look right on your building project, don’t hesitate to bring it up with the builder. They’re proud of their work and will take care of any issue as soon as possible.

Master Builder Contract

Master Builder recommends that anyone who engages a Registered Master Builder should use their standard RBC1 Building Contract. This contract contains comprehensive payment schedules along with other valuable protection.  

When entering into a building contract with a Registered Master Builder, they recommend that you incorporate a form of payment schedule into your building contract. The Staged Payment Schedule and Progress Payment Schedule are examples of this.  They are included in the RBC1 Building Contract.

These are important as it allows you to keep track of all monies paid and ensures that you only pay for work that has been completed so should something go wrong you have enough money left to complete the build with someone else.

Tax Advantages

Auctus, chartered accountants in Hamilton and Tauranga, have said that there are now many advantages to buying a new build, including lower initial deposit requirements and more financial support for first-home buyers.

Also, according to Auctus, the Government recently announced that any new build which received its code compliance certificate after March 27, 2020, will be exempt from its new tax rules which limit deductibility on interest payments against rental income.

“That means you can own a new house and continue to get a tax advantage for 20 years by being able to claim tax deductions on mortgage interest payments against your rental income. This will also apply to purpose-built rentals.”

In addition, new builds are constructed to a high standard and have far lower maintenance costs than most existing homes. They easily attract tenants and in a rising market they may have built-in equity by the time you take possession.