Building the Kiwi dream

Kerrianne and Paul Rennie.

OUR FIRST HOME

Kerrianne Rennie's husband Paul came up with a novel way of helping her to envisage what the house they were about to build would be like - he used a lawnmower to mark out the outline of their future home on the section they'd bought. "I was able to walk through it before building work had even started," says Kerrianne.

Some people can find it difficult to imagine how a home that has yet to be constructed is going to look. They may also be daunted by the thought of having to choose everything from materials through to fixtures and fittings. But it's a shame if they let that rule out building their own home, or buying a house off plans, because it can be an easier and more affordable option especially for first home buyers, points out Peter Thompson, managing director of Barfoot & Thompson.

You can have a smaller deposit if you're building a new home thanks to a change in loan-to-value restrictions introduced by the Reserve Bank in 2013. That means that in most cases, a deposit of only 10% is needed to buy a new home, rather than the 20% usually required to purchase an existing house.
And as of April this year, first home buyers will have greater access to their KiwiSaver funds and may be eligible for a new HomeStart grant if they are buying a newly-built house.

"First home buyers who have been struggling to get on the property ladder may find it a lot more achievable," says Peter. "And with a new house, there are the added benefits of having a home that is built to the latest building standards and has all new appliances."
Kerrianne and Paul wish the new grants had been available when they were looking into buying their first home almost a decade ago. "It certainly would have made life a lot easier for us," says Kerrianne.

Once they began house hunting, they soon realised it was going to be tricky to find a home in the area they wanted that met all their needs and was within their budget. So instead they decided to build, and found a suitable section in Parakai.

It was almost two years before they were ready to start work and during that time they did extensive research into building companies, including poring over house plans and visiting show homes.

The Rennies put all of their budget into the single-level brick-and-tile house, opting for the best materials they could afford, and figuring they could do exterior work like landscaping later on.

For their first anniversary after the house was built, they spent money getting the driveway done, rather than buying each other a present. "We cemented our relationship with concrete!" laughs Kerrianne.

While stressful with a growing family and business to juggle, building their own home was a great experience says Kerrianne, and they enjoyed it so much that they're doing it again. They've just sold their beloved first house, and were delighted not only with the price they got, but with feedback from prospective buyers about the quality of the home, which has been a great place to raise their daughters Samantha (13), Ruby and Lily (7) and Paul's son Andrew (23).

"We were able to put our own stamp on it, and have everything just how we wanted it," says Kerrianne. "Now, I don't think I could live in a house that we hadn't built ourselves.
"I would advise anyone of thinking of doing it to make sure they do their homework first and to think carefully about the way they live now, and how they are likely to live in the future."

A good first step to talk to real estate agents in the area you're keen on as they will have knowledge of sections for sale and upcoming new home developments, says Peter Thompson. "They'll also be able to help with information about plans for schools, shops and transport," says Peter. Barfoot & Thompson currently have 631 sections for sale in greater Auckland, and 262 in Northland.

KIWISAVER HOMESTART SCHEME

Under the new KiwiSaver HomeStart scheme, first-time buyers are eligible for a grant of $6000 once they've been in KiwiSaver for three years, $8000 after four years and $10,000 after five years to buy a newly-built home.

Criteria includes earning under $80,000 for an individual, or $120,000 for a couple. The house must be less than $550,000 if it is in Auckland, or between $350,000 and $450,000 in other parts of the country.

Other benefits of buying a brand new home or building one yourself include:

• No need to spend money or time on renovations or redecorating

• Peace of mind that comes with knowing your home has been constructed to the latest building standards

• A home that is more energy efficient and warmer than older homes thanks to doubleglazing, insulation and proper ventilation.

Content series brought to you by Barfoot & Thompson.