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    On the hunt for a new home? Choosing a new build could improve your long-term financial position. It’s not just about the shiny newness – there are some real financial advantages. From gaining a foothold in an up-and-coming neighborhood to saving on maintenance, a new build brings a lot to the table. Head of Mortgages at Global Finance, Aseem Agarwal, outlines following reasons why going for a fresh build may be the smarter move.

    1.Build your financial future

    Opting for a new build is a strategic move. It goes beyond the initial allure of a brand-new home with less ongoing maintenance costs. You can tailor the home to suit your family and lifestyle, set a clear budget, and avoid unexpected (and expensive) renovation costs of pre-existing, older homes. So, if you want a home that offers both comfort and financial benefits, a new build is a great choice.

    2.Tailored to perfection

    Unlike pre-existing homes, where you may need to compromise on certain features, a new build gives you a say in the design, layout, finishes and fixtures and modern features such as nice and warm. If you work closely with the building company, you can ensure the house aligns perfectly with your vision, creating a space that truly feels like home and providing those fit outs which can make your life easier.

    3. Fixed Budget Cost

    When you agree on a fixed price with the building company upfront, you have a defined budget to work with. This helps you avoid unexpected costs and budget overruns that often come with renovations on existing properties.

    4. Invest in an up-and-coming area

    Purchasing a new build allows you to buy in an area that is on the rise but still in the early stages of development. Global Finance says these areas usually offer slightly more affordable options than established neighborhoods. By getting in early, you may be able to secure a more budget-friendly property in a location that should appreciate in the future, explains Aseem.

    5. Extend the timeline for financial planning

    From breaking ground to settlement, new builds typically take six months to a year to complete. This extended timeline can work to your advantage. Firstly, it gives you more time to save money and increase your deposit, improving your loan terms. Also, you may be able to secure better interest rates if you are in the cycle, when rate of interest is likely to drop.

    6. Easier to get a loan from banks for a newly build house than an existing house

    It is easier to get a loan from banks for a newly build house on better terms and conditions than for an existing house. Banks require a lower uncommitted monthly income surplus for a newly build house than an existing house. Many times, banks give more cash back and a lower rate of interest on a loan against the security of a newly build house than an existing house.

    7. Fewer long-term ownership costs

    Finally, buying a new build usually means fewer long-term ownership and maintenance costs. New Zealand homes must be built to the latest building codes and standards for energy efficiency and all the modern comforts. Because of this, new builds require significantly less maintenance than older homes over time.

    “You won’t have to worry about immediate repairs or replacements of major components like the roof, plumbing or electrical system. And what’s really great – most new builds come with warranties that will cover these costs anyway,” says Aseem from Global Finance.

    If you’re looking to buy a new home and need a home loan, get in touch with the experts at Global Finance today for financial guidance by contacting on 09 255 5500 or send an email to

    The information and articles published are true to the best of the Global Finance Services Ltd knowledge. Since the information provided in this blog is of general nature and is not intended to be personalized financial advice. We encourage you to seek Financial advice which is personalized depending on your needs, goals, and circumstances before making any financial decision. No person or persons who rely directly or indirectly upon information contained in this article may hold Global Financial Services Ltd or its employees liable.