Hi there,
I decided to sign up and post here as it's one of the busier NZ property websites and was hoping to get some helpful feedback.
I live in Rotorua and I'm pretty close to pulling the trigger on a new build. I'm currently conditional on a section in a great location, have had my fixed price build contract done, RV done on the proposed build and it came back good. Bank is happy to give me the money.
I'm stumping up about 80$k cash with an 18% deposit under a construction loan. There is a LEM of .3% due to this which means I'll be floating at 6.05% for the duration of the build which is a maximum of six months as the build contract was required to have a completion date.
The total build shouldn't exceed $500k and the area i'm potential building in has been identified as low risk due to being surrounded by new houses etc.
I guess I have concerns around
1. It's Rotorua. The average house price is something like $320k. While prices are increasing I can't see them going up that much more. Hence - we are building a house that's worth considerably more than your average house and demand for it in the future may not be so great?
2. It's a significant loan at 4x my income and over the life of the loan the interest is quite considerable. Would I be better buying a cheaper house closer to the average house price because its Rotorua and it'd be easier servicing the mortgage?
Any thoughts/feedback/criticisms welcome
Additional info -
I moved here from Auckland for the lifestyle and affordability
It's colder here than I thought in the winter
I'm staying in Rotorua for another 3 years or so. At which point I may continue to live here or move somewhere else. I don't really know
Cheers
I decided to sign up and post here as it's one of the busier NZ property websites and was hoping to get some helpful feedback.
I live in Rotorua and I'm pretty close to pulling the trigger on a new build. I'm currently conditional on a section in a great location, have had my fixed price build contract done, RV done on the proposed build and it came back good. Bank is happy to give me the money.
I'm stumping up about 80$k cash with an 18% deposit under a construction loan. There is a LEM of .3% due to this which means I'll be floating at 6.05% for the duration of the build which is a maximum of six months as the build contract was required to have a completion date.
The total build shouldn't exceed $500k and the area i'm potential building in has been identified as low risk due to being surrounded by new houses etc.
I guess I have concerns around
1. It's Rotorua. The average house price is something like $320k. While prices are increasing I can't see them going up that much more. Hence - we are building a house that's worth considerably more than your average house and demand for it in the future may not be so great?
2. It's a significant loan at 4x my income and over the life of the loan the interest is quite considerable. Would I be better buying a cheaper house closer to the average house price because its Rotorua and it'd be easier servicing the mortgage?
Any thoughts/feedback/criticisms welcome
Additional info -
I moved here from Auckland for the lifestyle and affordability
It's colder here than I thought in the winter
I'm staying in Rotorua for another 3 years or so. At which point I may continue to live here or move somewhere else. I don't really know
Cheers
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