Written by Craig Geer on Aug 18, 2020
To say the first half of this year has been a bit ‘strange’ would be an understatement, to say the least. But like every cloud, this one has a silver lining, and it just so happens that the current cost to build a house makes it a very attractive option for those looking to buy.
Changes to the loan-to-value ratio (LVR)
LVR’s have long been a roadblock to many eager homeowners who have wanted to purchase a property, but the need for a 20 percent deposit (equating to an LVR of 80 percent) was just too far out of reach for many. So when the Reserve Bank recently announced they were going to remove the restrictions on LVR for 12 months, we certainly did a little jump for joy knowing that more folk, like yourself, could call in the movers straight away.
Lower interest rates
How low can they go? If you’re talking about interest rates – very low. In fact, some are even lauding this as the best time in history to buy a home. Five years ago fixed mortgage rates were around 5.20 percent. And today? Under 3 percent. These low rates mean that you can lock them in for the next year or two and pay off more of your principle mortgage, which could cut years off your loan. It really is an exciting time to own a home.
Building new vs. buying old
So here’s the deal. We’re all agreed that the conditions are perfect to buy a new home right now, but there’s something else to ponder. Why would you buy a house on the market versus building new? There are many benefits to working with a home builder to build your dream home, and here are just a few:
We’re NZ Master Builders and our house and land packages have been designed with proud homeowners in mind. As trusted home builders in Hamilton and its surrounds (Waikato, Coromandel and South Auckland) we love helping families into new homes – in fact, nothing makes us happier.
There really hasn’t been a better time to build and we’re thrilled that all the conditions are right for those looking to purchase a new property.