My girlfriend and I are looking at the viability of building our first house rather than buying.
I am an architect so am uniquely placed to be able to do a lot of the grunt work for free and get good prices on things, but have absolutely no idea on the logistics of Kiwisaver/the banks.
I figure if I can get our building costs down to about $2k per square meter and am smart with the house design I can get three beds, two baths and plenty of storage (no garage) into 140m2. That’s a total build of $280k. Lets say $300k with some contingency. Then I should be able to find more than enough land for a small home in wellington for ~$150k. That gives me a total of about $450k for a brand new (architecturally designed, if that makes a difference at this price point) home. We would have to spend that much to get an old half renovated villa which might have the same bedrooms but would be 70 years old.
For a point of reference spec builders are quoting around $2k-2.2k per square meter for a higher end home. My office is getting quotes back from the QS at about $3.5k for what we consider a lower end home. Just to be clear we work in the $1M-$10M build price area.
I have only been a kiwisaver contributor for 12 months (I was always a bit sceptical early on) and my gf has been a contributor for 6 years or so. We won’t look to start building for another 12-24 months so I should be able to get some money from kiwisaver at that point. Nor do we currently own any land. We should hopefully have about $70-90k saved by the time we build though.
Can kiwisaver be used to first buy land and then build?
How do banks like this? I assume the bank would want consented plans on a site before they lend to buy it? This is pretty hard to do as you can’t get a consent without first owning the land. I am working on some plans which would be fully consentable without looking at the foundations. I’d then potentially just need an engineer to design them and i’d be able to get consent within 20 working days.
Has anyone actually bought land with kiwisaver before?
I’m happy to discuss my design ideas further if anyone is interested but i’m primarily focussed on whether it is a viable option for us in regards to the banks/kiwisaver.
OT: We’ve been together 10 years and have a child, and yet she persists on making me call her my girlfriend… *sigh* At least if we build I can delay the purchase of a ring a little bit longer ;)