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Turnkey vs House and Land

Tue, 16 Aug 2022 01:30:43 GMT

If you’re considering your first build, you’ve probably heard the terms ‘turnkey build’ and ‘house and land package.’ How do they differ, and how do you choose which option is right for you?

With a turnkey build, you pay a fixed price and receive a finished product: all you have to do is wait until the build’s complete, then “turn the key” in the lock. With a house and land package, you work with the builder throughout the build process, allowing for more customisation.

There are benefits to both options, and we’ve outlined the key points below.

Turnkey

Simple Process

Turnkey homes are an all-in-one solution, with very little input required from the homeowner; the builder handles all of the admin, management, consents and signoff during the construction process. It’s a great solution if you’re time-poor or are worried that you’ll find the build process too stressful.

Fixed-price package

With a turnkey build, from Day One, you know exactly what you’re paying and exactly what you’ll get. It’s very unusual for the final price to change on a turnkey build because the builder takes on the risk of material rises or delays that affect the budget. This removes the element of surprise and gives you peace of mind. Additionally, because the construction company is taking on the financial risk, they’re motivated to finish the build quickly and efficiently.

However, because you won’t be able to make changes during the build, it’s important to check the specifications carefully and make sure that everything you want in your new home is included in the plan.

Single payment on completion

Turnkey homes allow you to make an initial deposit and then pay the balance once the build is completed. This is different from a house and land package, where you make progress payments at different build stages.

There are two significant benefits to the turnkey payment structure: firstly, you have more time to get your savings together before making your final payment. Secondly, if you’re taking out a mortgage to pay for your home, you won’t need to draw this down until the build is completed (unlike a house and land package, where you’ll need to draw down your mortgage to make your progress payments). This saves you interest and means your mortgage payments won’t start until you’re in the home.

If you’re concerned about the financial strain of paying a mortgage during the build process while also covering your existing rent or mortgage, a turnkey build could be the right option.

House and Land Packages

More design flexibility

With a turnkey build, you’re buying a house “off the shelf”, and the home design is effectively finalised before you see the plans. You’ll be able to customise some of the minor details, but you won’t have any input into the majority of the home design and specifications.

With a house and land package, you can work with the builder and their designer to customise your home’s features. If you’d like to have a significant amount of input into your home’s design, a house and land package is likely to be a good solution.

More involvement during the build process

If you like the idea of site visits, progress updates and being involved every step of the way, a house and land package might be the right choice! You’ll be involved throughout the construction process and will have regular check-ins with your builder. This also gives you a few opportunities to make minor changes during the build (although be aware that any variations during the build process are likely to affect the project’s cost).

If you’re still tossing up between the options, get in touch with our team for a free consultation.

We’re experienced in turnkey builds and house and land packages, and we can provide all the info you need to make your decision.

Adding value to your new build

Tue, 16 Aug 2022 01:30:40 GMT

When you’re planning your new home, resale value probably isn’t at the top of your priority list!

We absolutely agree that your new home should be designed around your lifestyle and your family. Here’s the good news: with a few smart choices, you can improve your resale value and make your home more enjoyable to live in.

Increase your home’s footprint

It’s always a smart decision to add an extra bedroom to your home if your budget allows it, even if you don’t need the additional space. If your build budget doesn’t stretch to a full-size bedroom, think about work-from-home options. The recent rise in flexible working means a small home office or study nook will add significant appeal!

For those on a tighter budget, there’s also the potential to increase your home’s value in the future by adding a self-contained sleepout or home office elsewhere on the property.

Design a kitchen that stands the test of time

Have you ever noticed that when you have guests around, everyone naturally congregates in the kitchen? The kitchen is called “the heart of the home” for a reason; it acts as a social space as well as a functional area and is usually one of the busiest parts in the house. As a result, kitchens play a big part in buyer decision-making.

A well-designed kitchen should include plenty of benchtop space, generous storage, and an easy flow to other living areas. In such a heavily used area it’s important to choose durable fixtures and fittings, and reliable appliances that will stand the test of time.

We recommend keeping your kitchen design simple and modern, and avoiding heavily trend-based design. Trends come and go, and buyers are less likely to fall in love with a kitchen that looks dated or tired.

Maximise your storage space

You can never have too much storage, especially in a family home. As well as including plenty of kitchen and living room storage, think about where you can add more storage with clever design choices. Inbuilt recessed shelving, butlers’ pantries and walk-in wardrobes all add to your available storage space, with the added bonus of elevating the look and the feel of your home.

If you’re building in a busy subdivision or on a city section, consider sacrificing some of your front lawn and adding an extra space or two for off-street parking. It’ll make life much easier for multi-vehicle families!

Keep your living spaces versatile, light and bright

Make your home feel immediately bright and welcoming with open-plan living spaces and windows that let in plenty of natural light. Whether you’re building from a plan or starting your design from scratch, show your designer and builder around the section; it’ll help them to ensure your home is positioned to capture as much light as possible throughout the day.

It can be tempting to add a lot of unique or unusual design elements to your home but bear in mind that when you’re selling, potential buyers need to be able to imagine making the home their own. We recommend keeping your design as versatile as possible and showcasing your style and personality through interior design choices (like a feature wall, statement furniture pieces, or striking lighting features).

Incorporate clever outdoor design

A well-designed outdoor living space extends your liveable area, effectively adding a new ‘room’ to the house. Once you’ve designed your deck or patio, transform it into a year-round space with a permanent cover and outdoor heating options. You can also add some more storage in with a bench seat that doubles as a storage box for outdoor toys or gardening gear.

It’s worth investing in landscaping when you build; if you plant throughout the property when you first move in, you’ll have a stunning established garden and extra ‘kerb appeal’ when you’re ready to sell.

Explore sustainable and energy-efficient options

Adding a solar power system to your home is a great way to add value, especially as we move towards having more electric cars on the road. Solar technology has come a long way in the last 5-10 years, and solar systems are more affordable and effective than ever before.

If your budget doesn’t stretch to solar, choosing energy-efficient options throughout your home will appeal to both planet-conscious and price-conscious buyers. Think about energy-efficient appliances, smart security systems, and insulation that goes above and beyond the required standards.

Our team are on hand throughout the design process to help you add value. Give us a call for a free consultation to discuss your ideas.

Understanding Square Metre Cost

Sun, 06 Mar 2022 19:46:53 GMT

What affects the square metre cost of your build?

One of the most common questions we’re asked is, “How much is the square metre cost for my build?” There are multiple factors that affect square metre cost - here’s a quick overview.

House size

The size of your house is the biggest factor in your cost per square metre. First-time builders are often surprised that as the house size increases, the square metre cost goes down!

The culprit here is the one-off, big-ticket items that go into every house. The kitchen is a perfect example; this is a significant build cost that’s included in every design. It doesn’t matter whether your house plan is 150sqm or 200sqm, it still only includes one kitchen - so with a larger floor plan, the kitchen cost is averaged out over a much bigger area, leading to a lower total cost per square metre.

Even when a bigger house plan includes a bigger kitchen, the cost doesn’t increase proportionally to the size of the house. An expansive open kitchen in a 300sqm home will cost more than a smaller kitchen on a smaller plan, but the cost doesn’t double to match the size of the house. As a result, the square metre cost will still be lower than it would be for a smaller build.

The cost of hiring tradespeople works the same way. The difference in price for an electrician or plumber to complete a 150sqm house, compared to a 200sqm house, is minimal - so again, you end up with a similar cost averaged out over a larger area.

Location

The location of your section can make a surprisingly big difference to your square metre cost, simply because of the travel required to get to the site. When you consider the heavy machinery needed to carry building materials, plus paid travel time for tradies, it starts to make sense that a house in Diamond Harbour will cost more per square metre than the same house built in Christchurch, five minutes from the building depot.

Land Category

If you’re building on TC1 land, your builders will be able to use a standard foundation (at a standard cost). However, if you’re on TC2 or TC3 land, the increased risk of land damage in the event of an earthquake means your house will need an engineered foundation. This adds an engineering design cost to your build budget, bringing up your overall square metre cost.

Delays during construction

Build delays can also have an impact on the overall square metre cost. While the cost of materials and labour doesn’t change, the ongoing build cost still increases.

This is because of the ‘background’ services that are required throughout the build, from project management to site fencing, temporary services, and even portaloo hire.

What does this mean if you’re considering building?

At the moment, the cost per square metre is very high for houses under 180sqm - so if you can stretch your budget to a larger floor plan we generally recommend it.

There are some design choices that can help to reduce your square metre cost, without compromising on quality. Your choice of cladding, tiled ensuite bathrooms, the complexity of your floor plan and the heating solution you use can all make a difference.

If you’re thinking about building and aren’t sure what your square metre cost will be, give us a call. We can talk you through what you can expect, and the reasons why.

The impact of Covid-19 on the building industry

Thu, 03 Feb 2022 21:23:50 GMT

You may have read in the news that the building industry has been significantly impacted by Covid-19; this doesn’t mean it’s a bad time to build a new home, but the building process will be a little bit different. With materials in short supply, and delivery timeframes remaining unpredictable, it’s likely that the build timeframe will also be significantly affected. We’ve put this article together to provide some clarity on what to expect.

What caused the current shortages?

Early in the Covid-19 pandemic, port and factory closures caused major shipping delays, and the flow-on effect is continuing today. In addition, a shortage of shipping containers, combined with a global increase in demand, means that sea freight companies are now prioritising their most profitable routes in Asia, North America, and Europe.

Unfortunately, our location at the bottom of the world - away from the most profitable shipping routes - often means that we’re last on the list. As a result, New Zealand’s building supply companies are experiencing material shortages and delivery delays.

The cost of freight has also shot up due to the increased demand, so we’re seeing price increases on products that aren’t locally manufactured. On the building front, this includes roofing materials, HVAC systems, and aluminium for windows.

What does this mean for builders?

Ongoing delays and unpredictable delivery dates mean we no longer have the same amount of certainty when we plan your build.

In a non-Covid environment, we can confidently order materials and book in subcontractors to complete the installation. However, the current delays mean that even when we order our materials in advance, they may not arrive on the scheduled date - so our planned installation date has to move back. We’ll then need to rebook the subcontractors, and with the current building boom, our contractors are often booked up for weeks in advance. Each time this happens during your build, the timeframe gets pushed out.

It’s really important to point out that this isn’t the fault of any of our suppliers or subcontractors; their teams are doing their absolute best in a stressful situation.

What should clients expect?

A longer build process

We’re currently advising clients that the build process is likely to take an extra four months, from when we submit plans to Council to the completion date. We’ve changed our internal processes to mitigate this as much as possible; we now order all of the major components of your build as early as we can, because we’d rather have them sitting onsite for a few weeks than miss out on a shipment!

We know how frustrating it is for our clients when their build is delayed, and we’ll keep you up to date every step of the way. We’ll minimise the delays as much as we can, and will make sure we come to you with all of the available options.

Potentially limited choices

If you’re building on a fixed timeframe, you may have to choose from a limited selection of colours or materials - we’re noticing this happening frequently with kitchen benchtops and roof colours. You'll have the choice of selecting from the currently available options or waiting weeks for your preferred option to arrive. This won’t affect the cost of your build, but it will extend your timeframe.

Longer consent approval timeframes from Council

While not directly related to Covid-19, the current building boom has had a significant impact on how long it takes Council to approve your building consent. Historically, Council has taken around four weeks to approve a consent; with their current workloads, we’re advising clients to allow three months for their plans to go through the Council approval process.

Note that this only affects builds that need resource consent. If your build doesn’t need a resource consent, our architect can process the consent in 10 days.

Potential impacts on your build cost

Limited material supply has resulted in cost increases for a lot of common building materials; we’ve allowed for a 10-15% price increase across the board.

We’ll be transparent about any price increases, and will make sure that your build contract clearly outlines what you can expect. Depending on your build, we may still be able to offer a fixed-price contract; talk to us for more information about your specific project.

What can we expect in the future?

Unfortunately, signs point towards New Zealand’s building industry continuing to feel the effect of the Covid-19 supply chain delays well into next year. While this isn’t the news we’d like to hear, we’re confident that with continued patience and kindness, our industry will remain strong despite these challenges.