5 min read

Buying a house in New Zealand: New build or renovate which is better?

Buying in a new neighbourhood can protect homeowners from market downturns, but renovating can be better for your budget. Which is better?
By
Buying a house in New Zealand: New build or renovate which is better?

Owning a home in New Zealand is a right of passage. However, getting on the property ladder is much harder for younger generations than it used to be. Today, many people are looking for new ways of owning their own homes and finding a home with good resale value.

This can lead many first-home buyers to compare newly built homes with doer-uppers. Buying in a new neighbourhood can protect homeowners from market downturns, but renovating an old home can be better for your budget and lead to higher returns when you sell. So, which is better?

How to find a home with good resale value in New Zealand

Buying a home with good resale value is smart, especially for first-home buyers. In years gone by, most New Zealanders would purchase a home that needs renovating, do up their first home and reap the benefits when they sell.

Today, existing homes can often price first-home buyers out of the market, especially because it can take ten years to save enough for a 20% deposit. With a brand new property, buyers only have to put down 10%.

Both new and existing homes are affected by location, the neighbourhoods they are in and what amenities are nearby. The resale value of a new and renovated home will depend on whether they are in a sought-after neighbourhood, on the outskirts of town or in a new development.

Should you buy a home that needs to be renovated?

Many New Zealanders like the thought of adding value to their home. Renovating is a great way to increase the property price. However, because renovations are becoming so popular, and with a strong housing market, existing homes that require renovations aren’t as cheap as they once were.

For many older homes, the price of a renovation can cost more than buying a newly built home. Buyers, especially those new to the property market, should think about the cost of a renovation as well the cost of the time it takes to make these improvements and add these expenses to their budget.

Many buyers may actually be better off buying a home that’s finished or a newly built home.

This doesn’t mean buying an older home is a bad idea. However, buyers should do their homework. Get a builders report and have a thorough idea of what needs to be done. You should also consider how long you’ll live in the home for. House flipping is much more risky than renovating and living in a home for seven to ten years.

Should you buy a new home off the plans?

Buying a new home off the plans used to be an option mainly reserved for families or older home buyers. However, many first-time buyers are finding that buying off the plans is the best way to get on the property ladder. Buyers only need to pay a small deposit to secure their home and pay the rest on completion of their build.

There are pros and cons to buying off the plans. While you are locked into buying the home, many buyers have 12 months or longer to save more cash before settling. Buyers can also take advantage of dips in the market and benefit from an increase in value during the 12-18 months between deposit and needing to take out a mortgage.

Many new builds also come with ten-year guarantees. If a newly built home requires any major maintenance, it may be covered by a guarantee.

There are downsides to buying a new build. Sunset clauses can catch first-home buyers out. A sunset clause allows the developer to cancel a contract after a period of time if the build is not completed.

Buyers should be wary of sunset clauses that are shorter than eighteen months to two years. Some buyers have been let down by developers cancelling their contract and relisting developments for sale at a higher price after the market improved.

Where you buy a new home also matters. Buying new in a suburb close to town versus a suburb on the outskirts and away from city amenities may impact how easy it is to sell your home in the future.

Should you buy a new home in an infill development?

Infill developments are small one-off developments often located within or next to existing suburbs. Prices are usually high, and stock is limited, but buyers should still be careful before they buy.

Make sure you do your homework on the standard of the development. Because these infill developments are usually about maximising returns, new builds may not be of the best quality. Townhouses can be small and sections even smaller, and many developments are designed to just to meet the building code.

These developments are often aimed at investors and first-time buyers who are more interested in getting on the ladder or renting it out than buying something for the long-term. This doesn’t mean that infill developments are a bad option. It just means you should do your homework.

An infill development could mean there are more plans for building in your neighbourhood. Find out whether there are any plans for new buildings near your home. Dense, tall developments can impact the feeling of the neighbourhood by increasing traffic, making on-street parking busier and making streets more dangerous for children to play or cross the road by themselves.

Buying a newly built house or renovating: which is better?

Whether you’re buying a newly built home, renovating or buying a newly renovated home, buyers should always do their home. While there is a tendency to think that you’ll get more bang for your bank with a renovation, that’s not always the case. Buying new is a great way for first-home buyers to get on the property market. Buyers should consider the neighbourhood and the quality of their building before they buy.

What do our customers say?

Read reviews of Wise Move to learn stories from our customers.
$385
Auckland
Wellington, Broadmeadows
9.0
Vladimir
Reviewed 18 hours ago
I was delivering a sofa from Auckland. I am quite happy with the delivery. Flexible, accurate with the goods. Friendly and very nice people who do their job properly. Punctuality and communication can be improved sometimes but it didn't affect me too much and everything went well in the end. I would recommend this mover!
$110
Auckland, Auckland Central
Auckland, Ellerslie
10
Dansoa
Reviewed 19 hours ago
They were extremely understanding and professional, even with more items than expected. They worked very efficiently and handled everything with care. Amazing- would definitely recommend!!
$250
Auckland, Grey Lynn
Auckland, Ponsonby
10
Rosazlin
Reviewed 19 hours ago
Steven my mover was amazing! It was just him and I moving my boxes, bed, mattress and coffee table to my new place. He was communicative, punctual, efficient and friendly - we made such a good team! The process was done fast and I enjoyed talking with Steven too. It was also Valentine’s Day and out of nowhere at the very end, Steven presented me with small gifts from the company! Some cute Jewelry I really love. Thanks so much! Really made my day :) Thank you to PF Moving for the quick responses and providing me with the cartons of boxes at the last minute. Highly recommended!!
$499
Te Puke, Bay of Plenty
Te Puke, Bay of Plenty
9.0
Patsy
Reviewed 19 hours ago
The young men completing the job were exceptional. Great work ethic, took pride in their work, and were very careful with the items. If I could make one suggestion I would prefer a phone call for confirmation rather than relying on emails as I believed the job was being done a week earlier than what it was. Had I not checked my emails I would not have seen the question and would have answered earlier. However, the job has now been done and I am very satisfied and would use this carrier again.
$470
Christchurch, Sydenham
Christchurch, Halswell
9.5
Greg
Reviewed 23 hours ago
Movers were great! Really appreciate their work. Managed to pack swiftly while being respectful of the items
$165
Washing Machine
Lower Hutt, Hutt Central
Auckland, Mount Eden
10
Max
Reviewed 1 day ago
It was a wise choice going with Marshall. Flawless communication and delivery of the goods. Not going anywhere else for my moving needs now.
$300
2 bedroom house move
Tauwharenīkau, Wellington
Wellington, Miramar
10
Lisa
Reviewed 1 day ago
Fantastic removal support - efficient and smooth. Definitely recommend
$5,850
Storage unit with furniture. Approximately 50 cubic metre could be mor...
Palmerston North, Milson
Whangārei, Morningside
10
William
Reviewed 1 day ago
Ace Movers was very professional, friendly, and prompt. Their communication was excellent. They were flexible, worked around my schedule, and delivered when they said they would. I wouldn't hesitate to use them for your move.

For every (wise)move

TradeMe purchase pickup and delivery service across NZ
TradeMe Delivery
Get your heavy-large TradeMe purchase picked up and delivered by our movers anywhere in NZ.
Learn more
Car transport nz
Car Transport
Our professional car transport teams from across New Zealand are the best at what they do.
Learn more
Motorbike transport nz
Motorcycle Transport
Our pros take everything into consideration when ensuring the safety and well-being of your bike.
Learn more
Piano transport
Piano Move
Moving a piano requires the expertise to ensure is kept safe and protected on the road.
Learn more
Furniture removals
Furniture Removals
Our teams will treat your possessions like they would their own, ensuring that the greatest care and diligence is taken.
Learn more
Pet transport nz
Pet Transport
During the transport our teams will ensure full care, well-being and friendliness as if they were our own.
Learn more
Boat transport nz
Boat Transport
Our transport teams will ensure your boats will be delivered safely, efficiently and on time.
Learn more