Choosing between a new build and an existing home

One of the first big decisions many Kiwis face on their property journey is whether to buy a new build or an existing home.

Both options have their appeal, and the right choice depends on your financial goals, lifestyle preferences, and long-term plans.

Here are some things to consider before making your choice.

Deposit requirements

For first home buyers, a new build’s lower deposit requirement could mean purchasing property sooner. Generally a 10% deposit could be enough to secure a new build, compared to the standard 20% needed for an existing home.

Investors can also benefit, as new builds typically require only a 20% deposit, while existing investment properties usually demand 30%. This difference could make it easier to enter the market or expand your portfolio.

Maintenance and peace of mind

New homes are built to today’s building standards, with modern materials and more energy-efficient systems. Many new builds also come with warranties for major structural components, giving you peace of mind in the early years of homeownership.

While existing homes may offer greater character, land or established gardens, they can also hide issues that lead to costly repairs and often require more upkeep over time.

The property buying experience

Buying a new build is typically a more structured process. You’ll work with a developer, choose your layout and finishes, and often have time to plan your move while work is completed. Keep in mind that uncertainties during this process can add time and stress.

The homebuying process for an existing home can move much faster. However, it may also involve more variables such as competing offers from other buyers and urgent deadlines. Renovation costs can also add up quickly if the home needs work.

What’s the best fit for you?

If you’re keen to get into your first home with a smaller deposit, or you’re an investor looking to maximise your borrowing power, a new build could be a smart option.

If you’re drawn to the charm of established homes and are ready to take on some DIY, an existing property might be a better fit.

Whatever your situation, a Mike Pero mortgage adviser can help you explore your lending options and find a solution for your next move. Get in touch today with a Mike Pero Mortgage Adviser to see what’s possible.