Why now’s a good time to build

Why now’s a good time to build

Building and new residential builds in particular have been super-hot topics this year. Hardly a day goes by without a tsunami of information defining the status of the industry. Notwithstanding public health, it comes in a close second at the top of the daily news reel. You could say with Covid-19, labour shortages and global supply chain issues, the industry is in the middle of a perfect storm. Despite all this, demand is definitely holding up. So, while it might appear counter intuitive, here’s why now’s a good time to build.

Prices will rise and politicians will philander

Like many things in life, it’s very hard to plan when’s the perfect time to build. Waiting for the cost of building to fall or a market price correction is potentially a road block that might never happen. And, while Baz Luhrman’s lyrics in the Sunscreen song suggest that we should accept certain inalienable truths in that ‘prices will rise and politicians will philander’, it’s unlikely the cost of building will fall. In other words, it’s never going to be cheaper to build new than right now.

The 35 year average is sitting at around 6 per cent

There’s been much talk about interest rates lately. Is there ever not?! Certainly, interest rates are a topic of focus when thinking about building. What they’ll do in the future is every economist’s best guess, although it’s fair to say, we are probably past the lowest on the cycle. With that said, we’re still well away from the ballistic levels of 20% interest rates in the 1980’s some might remember. And it’s probably good to keep in mind the 35 year average is sitting at around 6 per cent. We’re well away from that too.

Interest rates will never be lower

So, if you’re looking for a mortgage, now is a good time to shop around, to think about whether you float or potentially fix for the longer term. If you want a good place to start, check out the New Zealand research company Canstar*. They provide comprehensive information on a range of subjects for free. While a fairly hefty statement, according to some, interest rates will never be lower than they are right now.

*Longview Homes has no professional or personal association with Canstar

Real estate historically goes up

Another thing to think about is the investment you’re making in building. In nearly every market, real estate has been a great long-term investment. And if you plan to be in your home for a number of years, your chances of a substantial value appreciation are increased. Of course, plateaus and dips are not unheard of but real estate historically goes up—so time to get in!

Land is less of a pinch point

The recent changes to the RMA mean that land’s going to be less of a pinch point than it’s been. With more land coming on stream, there’s more opportunity to buy in a neighbourhood that fits your needs.

Time to invite the extended family

And if you already own a property and live in Auckland, Hamilton, Wellington or Christchurch and want to chop up your back lawn, you’re in luck. The new density rules will allow you to build up to three storeys on up to 50 per cent of your land without resource consent. That potentially means three homes can be built on most sites* and more homes going into areas closer to your work, public transport and community facilities. Time to invite the extended family!

*There are some exemptions in areas where intensification is inappropriate, such as high risk  natural hazard areas or where a site has heritage value.

Stunning, warm, dry contemporary homes

If you do own land already and are sub-dividing or wanting to clear away an existing dwelling, remember the fabulous team at Longview Homes take care of that. As well as building stunning warm, dry, contemporary homes, things like site excavation, demolition, bulk earthworks and consents are all part of their professional services.

Cementing why now’s a good time to build, is the fact that a new home features the latest energy efficient systems, giving you greater ambient living and lower energy bills. A warm, dry home using the latest technologies means easier and more comfortable living. Now that definitely does sound appealing. Who wouldn’t want that in 2022?

Longview Homes knows beautiful homes shouldn’t cost the earth.

Get in touch with our team or call 0800 100 945 to start your exciting new build journey today.

Longview Homes builds both custom and pre-designed warm, dry homes of exacting quality, built to last. We have locally owned franchises around the country. It would be our pleasure to take on your building project.

Related Posts