A low-maintenance option
Investing in a new build is a great option for people looking for a long-term return as they provide a low-maintenance option. Without the fear of unexpected bills such as re-roofing or a new hot water cylinder, your investment becomes a manageable option while delivering great rental returns.
If you have a full-time job and are not handy with power tools, you can invest safely in the knowledge your new build isn’t going to cost you time and money for many years to come.
New surfaces and all treatments are easier to wipe clean than older materials. We select hard-wearing, durable fixtures that stand the test of time. We have a proactive Aftercare system incorporating a 2-year latent defects warranty that covers any snags that may pop up when the property becomes lived-in. In addition to this, the building itself is protected by a 10-year quality assurance warranty.
A sound financial decision
With a housing shortage, still very much a reality in NZ, rents remain high and banks look more favourably upon lending for new builds. The Classic Property model is based on sourcing desirable metropolitan areas and creating communities consisting of high-quality, terraced townhouse-style builds.
Purchasing a new build is a much more attractive proposition for lenders. New builds are currently exempt from Loan to Value Ratio (LVR restrictions which means you can buy a new build for investment with a deposit as low as 20% compared to the standard 40% deposits currently commanded for investment property lending.
The Classic Property builds offer a 10% turnkey deposit contract meaning that you don’t need to fund the build during construction. There is also the consideration of capital gains, something that will start from the build onwards and ensure a great resale price when you decide to sell.
Many banks offer a discount interest rate for new builds, meaning that regardless of the interest rate, you will be getting a better deal than you would be buying an existing property
Recently, house price caps were lifted dramatically for those seeking access to the First Home Grant. This means properties like Kaimai Views (link) are now available to those who are eligible for this amazing contribution to your deposit.
Kainga Ora are now offering First Home Loans to a broader spectrum of people with an additional 2500 loans available. The house price caps on both new and existing homes have been removed entirely for the First Home Loan scheme, however, income caps for borrowers would remain.
Finding the deposit for your first home can be a struggle, with most lenders currently requiring a minimum 20% deposit. With a First Home Loan you only need a 5% deposit which means getting into your first home is that much easier. First Home Loans are issued by selected banks and other lenders and underwritten by Kāinga Ora. This allows the lender to provide loans that would otherwise sit outside their lending standards.
Income cap:
· Have an annual income of no more than $95,000 (before tax) for an individual buyer; o
· have an income of no more than $150,000 (before tax) for an individual buyer who one or more dependents; or
· Have a combined income of no more than $150,000 (before tax) for two or more buyers, regardless of the number of dependents
· Minimum deposit – You will need a minimum of 5% of the purchase price of the house you are wishing to buy.
Compliance with healthy home standards.
All Classic Builders properties are built to meet the Healthy Home standards which must be active in all new builds and all existing rental properties by July 2024. This means heating, ventilation and draught-stopping are implemented to a high standard avoiding any mould or dampness in a home.
Why investing in a Classic Property Terraced Townhouse Package is the smart choice.
Classic Group has been in business for over 26 years. We have built over 7000 homes for New Zealanders under the Classic Builders brand. Our relationships with our supply chain have been built over decades and our national reach and scale secure our access to resources. We have multiple brands within the Classic Group ensuring our pipeline remains solid. You can trust Classic Builders to deliver your home to a high standard and most importantly to schedule AND the contracted price.
