New builds have become a popular option for many, as they are an affordable way to get a home that ticks all of the boxes. For investors, they are also a way to get around some of the new rules introduced by the government earlier in the year.
While a new build is the dream home, it can also quite quickly turn to disaster if you don’t do your homework and get the right advice!
Covid has created quite a lot of issues in the building world, with significant delays in construction materials being delivered. For many, being unable to travel overseas has meant that people are now putting the money into doing up their homes, so there is also a significant shortage of tradies available to do the work. All of this means the timeframes for building have been greatly extended, with some new builds now taking up to 18-24 months to be completed.
While this is not only frustrating for the owners who are keen to move into their new home, it also creates challenges when it comes to gaining finance. Many pre-approvals are now much shorter than the building timeframes, and with lengthy delays, the risk of running out of pre-approval time is real. With changes to legislation and lending requirements, some people find that when their pre-approval expires, they may be unable to get it renewed as they don’t meet the new criteria.
This is where a bit of planning ahead comes in and where we can help you out. When it comes to pre-approvals for new builds, we always seek to gain you the longest pre-approval possible (usually around 12 month). Well before this time is up, we work with you to extend this pre-approval to ensure it is continually current. If the worst case scenario happens and a pre-approval is unable to be extended, then it gives plenty of time for buyers to make a plan B, including looking at the option of reselling the property.
If you are looking at a new build, then we encourage you to get in touch with us. Building your home is such an exciting process and with our help, navigating the building process is easy and stress free. Give us a call on 021 180 1007 and let’s chat.