Aside from the obvious tax benefits outlined above, we have highlighted a number of other benefits associated with purchasing a new build.
1. A smaller deposit is required.
For investors buying an existing property the deposit will sit at a higher 40%, unless they meet the exemption criteria.
For a new build, it will vary case by case but a smaller deposit is required, typically 20% of the purchase price. New builds are exempt from the new LVR rules set by the reserve bank in order to encourage housing supply.
You can read more about the latest LVR restrictions and criteria on the Reserve Bank of New Zealand’s website
2. Customise your home or investment
Add your own flavour and customise your new build to perfectly suit your requirements.
Latitude Homes offers a range of different build options, from kitset homes through to full builds. Whether you’re picking a house plan or you’re designing your dream home or investment, Latitude Homes makes new builds a fun and easy process.
To learn more on our different build options, click here.
3. Less maintenance required
New builds require much less maintenance work when compared to existing properties.
Whilst buying an old home with character is great - it can often come with a lot of hidden maintenance, repairs or renovation costs. To minimise the risk for home builders, today there are plenty of warranties and/or guarantees that are put in place for the buyer to fall back on, in case of emergency.
4. Better quality properties, better quality tenants
A better quality, new property is likely to attract better quality tenants, resulting in the potential for higher rent requests.
It is mandatory that all new home builds are designed to comply with the Healthy Home legislation. Therefore, this removes any need to fix or upgrade your property to meet these specific legal requirements.
Whilst a new build may not quite compare in terms of personality and character, they are able to make up for it in terms of practicality. A lot has changed over the years including materials and features, allowing kiwis to find comfort in much smarter homes.
Overall it can be said that new builds tend to be better insulated therefore warmer, drier and more energy efficient.
With the new housing law changes taking effect, the shortage of available homes and the over capitalisation in existing houses due to excessive demand, the benefits to investing in new builds for your property portfolio far outweigh the alternatives.
If you would like to discuss a new build on your existing property, a piece of land you have or even look at a house and land package, contact your local Latitude Homes builder. We are more than happy to help you build an investment in your future.
Take a look at our range of building options on our website and get in touch to speak to your local Latitude Homes builder.
