Building a new home

Some people really like the opportunity to participate in the development and build processes, and the feeling that they bring their personalities in their own home. Others may recognize the experience a bit 'more challenging.

So before you decide to build, consider these advantages and disadvantages:


Advantages of construction a new home

The home accessories and appliances will be looking and working like brand new.

You can get the display of home you want (within your budget).

You can feel the personal satisfaction that comes from recognizing that you participate in the design and construction process of your home.

No need to renew or remove the accessories that you do not like about a house that already exists

Disadvantages of construction

The construction process is time and effort consumption and can be stressful. Depending on the type of building contract that you have chosen, you may need to manage a number of good contacts with builders, designers, architects etc.

Some construction projects will go smoothly from start to finish, but be prepared that others may take longer and cost more than expected. Factor always a possibility of exceeding the cost and time.

Once the home is completed, you will also have to landscape the site.

Construction on a new site or subdivision means that you do not know immediately what the area will be as opposed to moving to a nearby area established.

Land available is scarce in many residential areas, so you can have less choice about where to live.

Renovating

Renewing your home can be a lot of satisfaction and allows to build-in features and styles that you always wanted. How to build a house, renovations can sometimes get stressful or the end result may be different from what we had originally planned.

So before you decide to renew, to take account of these advantages and disadvantages:


Advantages of renewal

If you like the area you live in, renew your existing home is a good way to get the home you want, living in an area that you know and admire.

If you're planning to sell your home, some renovations well thought-out could add value to the sale price and make potential buyers want.

Disadvantages of renovating

Depending on the moderation of your renovations, the cost may be too high. Working around an existing completion has its own challenges in contrast to the construction project.

You may run into a slowdown or unexpected costs due to sudden problems (eg, structural issues) that can not be foreseen before starting. Renewal of some sections of the house can consider it has to come out for a while 'that can add to the cost.

Matters to think about



How do you add the worth to your property?

Kitchens and bathrooms renewal - with these renovated spaces is often considered a real advantage for potential buyers, but can be a more cost to re-MKE than other rooms in the house.

Improving the flow - which makes it better to get the whole house makes it more comfortable. An indoor-outdoor flow is also very required after feature.

Landscaping - organize your land with lawns, gardens or recreational areas to make a big difference to how others appreciate your home.

Better lighting (including more natural light) - this makes your home to be more attractive and roomy.

Be careful not to provide excessive capital reserves to (spend more on renovations that you risk recoupe if not eventually sells). Be wary of:

Spending too much regarding the neighbors you live in - position plays an important role in determining the valuation of the property and what potential buyers are willing to spend.

Features Wizardous or very personal - can be essential for you, but potential buyers may not share your opinions design.

Remove features - for example, the transfer of a bedroom to do it in an office. Doing a bit 'analysis of your area will give insight into what spaces are home more desirable. In neighborhoods with lots of young families the amount of bedrooms is usually a key factor for buyers.

Studying a design for your house

Construction companies offer a variety of common house designs for you to make your choice. This is a way to build on less susceptible to problems because many of the details and perplexed are provided for you - also commonly referred to as 'turnkey' or kitset homes.

Architects experts can help you design your new home from the concept to the management of the construction process. Having the house designed by an architect can give further perceived value as well as design charm.

Architectural designers (or persons drafts) can offer a turnkey service similar, although some may not be able to help you organize the construction project. They often have lower fees than architects and experts may be a suitable option if you have imagination definite about what you want.


Finding the good architect, designer or contractor

Ask your friends or colleagues for recommendations.

Take note of houses have never seen you enjoyed and verified that designed and built.

Look through special editions of the house to see examples of work that you enjoy.

Most construction companies have "show case", which allow you to walk through and get a feel for homes that offer.

Visit the websites of professionals including: Architecture CI find registered architects and WDNZ to find partners Islands Architectural Designer Cook Incorporated.

Talk to several architects or designers to understand their style, how they work and what they can offer. The useful questions you should ask them could be the following

What qualifications and experience have they got?

Have appropriate professional organization or alliance?

What are their fees and what will you get for that?

What range of services do not (only the design, planning and contract management, etc.)?

Can they show you the samples of work they have ever done?

They can provide their former clients so they can talk about their experience?

Finding a section

The three 'rules' property - 'location, location, location' - still is used when you are looking for an empty section. The questions to ponder are:

What are the facilities like? How far is the house from shops, playgrounds or transport?

How much sun does the site gets and that this varies at different times of the year?

E 'exposed to winds or flows very private and nurtured?

What the ground is - Is there a good drainage, it contains more sand or clay (both of which have their preferences in terms of foundations, landscaping and gardening)?

What is the access to the part?

What services are connected to the home sector (for example, water, sewage, electricity and other communications)? If these are not yet installed, you will have to pay for these items?

What are the neighbors and suburbs like? And 'quiet or disturbing? There are young families? What is the 'feel' of the area?

Ask your local authority if they have all the information about the area, and your butt in particular, including a Project Information Memorandum (PIM). This has important information including whether there is any risk of erosion, flooding or other things you need to know in advance.

Before you choose a section, you should consult an architect or builder to look and give their opinion is suitable for the home you want to build. It may not be extensive enough or may have other characteristics that may exclude outside, and is much better to know before you buy. You may want to consult an engineer if you are in doubt about the convenience of the section for the type of home you want to build.


Managing the project

There is much to consider in the management of a construction project, including:

The design stage

Choosing builders, subcontractors and other providers of services

Organising construction and other working stages

Managing the construction - making sure the clients and supplies in the right place at the right time

Managing improvements to the design as the work process

Tracking and monitoring the works

Arranging for construction examinations

Arranging payments

Consent with all the various parties

Resolving problems and organizing re-building or renewal.

What are your options?

1. You can control yourself. Get busy the builder on a labour-only basis and you manage all the subcontractors, the procurement of materials, and so on.
   
2. The architect or architectural designer can arrange the whole project on your behalf, including employing the builder and subcontractor, tracking their work and managing to finishing - many people will prefer this because it gives them more control over the final outcome.
   
3. Hire a professional project manager.
   
4. Your builder can administrate the construction on your behalf.
   
   

Carefully consider the time and effort spent on the management of a construction project alone. Even if you can save on taxes project management, is often money is spent well and can practically save a significant amount in the long run, especially if you do not have a good realization of the construction industry.

Choosing a builder

Your building-contractor will be a key person in the project (unless you make a single labor agreement) since they will assume responsibility for the selection and management of subcontractors and the entire progress of the construction project. Find a builder for a fee that you have a good experience with it is very important.

Architects and designers may have manufacturers they work with often and can also handle the competitive process on your behalf. If you're building a house off-the-shelf, the builder and subcontractors are normally included in the package business.

Questions to ask

When you have short-listed 3-4 and manufacturers have submitted bids for the construction of the house, ask:

What experience and qualifications do they have? Have they built the same-arranged homes for other customers? What trade companies/alliances do they belong to (e.g. Registered Master Builders Federation)?

Do they provide assurance for their work? What obligations do they meet?

What do their prices cover? If their tender offered price is considerably exceeding or below other tenders and why?

Can they provide some customer references?

When can they begin to work and how long do they expect the job can take?

Weighing it up

Part of your decision should be based on how well you realize that you will be able to work with the manufacturer - especially if you think that you will contact well and take responsibility for their work. One of the main problems people report with construction projects is insufficient communication on the progress of the work and what is happening - when and why. Many things can be solved easily through good communication between all parties involved, so look for a builder can build the working relationship with the virtual.

The construction agreement


Why you need an agreement

Adjusting a construction agreement written with the manufacturer before work is a good way to ensure that everyone is clear on what they are responsible for - and what you can bring, if things do not go according to plan.

If the manufacturer is the principal contractor will arrange contracts with all subcontractors. If it comes to an agreement only work and administer the construction project, you assume the responsibility for the organization of contracts with all subcontractors.

What should the contract spread over?

To check if every issue is covered, having your lawyer look through the contract before you sign it is. Especially the contract should cover:

What the project does include and the work to be performed

The schedule for the work and what are the sequences if there are delays (you may negotiate penalties for delays)

The payment schedule - how much you should pay and when

Who is responsible and for what

Details of the builder's indemnity and assurance including the fixing of defects and damages caused during construction

How disputes will be settled

Who pays building fees and binders

How changes and implementations to the contract will be administrated (there will almost inevitably be some changes as work progresses)

What could happen if costs raise?

A demand to leave the site neat and tidy on the end of work

A description of practical completion of the job

The detention amount that is withheld until the work is completed.

What do you need?

You will need to get approval from the local council building before construction starts. Depending on your personal home and what you are proposing to build, you may also need to obtain the approval of resources.

Construction consent

Without a consensus building before construction could result in a penalty essential and may need to break down or modify what you have built.

In most cases your architect, designer, builder or construction contractor will submit an application for a construction permit on your behalf, when the proofs are ready. If you are going to submit the agreement alone application your local government for information on how to apply and what will be in need.

As part of the consensus building, we will need periodic examinations written by building inspectors from your local government to get so that the work complies with the building code.


Resource consent

Approval of resources is required if you want to build something that is regulated under the Resource Management Act or your local city or regional plans. For example, there are rules on how close to your limit you can erect, maximum siteexpansion, planes sunlight, and so on. If you build it without getting the approval of the necessary resources, you could be prosecuted under the law on the management of resources.

Your architect, designer, builder or contractor should be able to inform you if you are likely to need consent resources and manage the process on your behalf. If you are in doubt, your local council will be able to communicate if you need the consent of resources, in order to negotiate with them.

Depending on what you need resource consent for you may need to negotiate with the neighbors or the application may be necessary to receive notification (meaning public commitments may be called for).

Managing the construction step

What's involved?

Once the construction starts there are a legion of things to manage including:

Coordinating subcontractors

Construction inspections

Approving alterations to the contract

Progress payments.

If the construction phase of the project is being managed on your behalf by another hand, this is their obligation and that normally maintain contact with you, as required. If the management of the project by yourself, you need to handle all this.

What do you need to do?

If you are managing the construction alone or not, you must take an approach close to the building as a process. In particular, you should address all issues that can be seen soon. For example, if you believe the materials used are improper, the plans are not being properly advanced, fittings wrong were applied or any other departure from the plan, take it once. Coordinate with the project manager, in the first place. Their job is to manage these things and that will bring it up with the right person.

You should keep all records of:

Invoices

Progress charges

Alteration

Correspondence.

This will make any subsequent questions or disputes much easier to settle.

Managing the completion stage

When the work is completed, make sure that:

The builder leaves the site clean and tidy and that you have any product manuals and guarantees you need (for appliances, garage doors, etc.).

A final construction examination is completed.

The Code of Compliance Certificate is applied for - this certifies that the building meets the construction code. It's important this is signed off as it could bring problems with your insurance or with resale if you don't have it.

You'll also need to resolve with the manufacturer to return and fix any problems or defects that might appear. Most of the contracts will have a conservation clause that allows to retain an interest of the contract price for a period of safely get any defects are correct.

Doing your budget

An important step is to understand how much you can afford to appropriate - and this means making a budget. The budget is simply the cash coming in (for example, your salary or wages) less money going out (for example, for the needs of everyday life - food, rent, transport, energy, cell phone, clothes, etc.) .

Once calculated approximately how much you can afford, you can start looking for homes in the price range building or learn the renovation costs.


How much can you borrow?

The exact amount you can borrow depends on your ability to repay the value of the land and of the plans, and the deposit.


How does it work? - Arranging a home loan

When you're building or renovating, your home loan is estimated for the full amount, but you draw down in installments, as the construction work progresses (the construction contract will set out a payment schedule).

In each phase will need to have the work certified as completed a fixed value - if you're using an architect or designer to organize the project we usually do this. You may also need to have provisional estimates made at every stage - we can advise whether it is necessary or not.

You use the deposit before making initial payments, after you start to draw your loan.

What documents do you need to provide?

When you apply for a home loan to build or renovate, You'll need to provide:

The sale and purchase contract for your part (if you're construction from scratch).

A registered valuation testifying how much the home will be worth when the building work is finished.

A copy of your signed construction agreement. The contract must be on a fixed price rate basis and allow for construction, finishing, site development and any other works required to get a Code Compliance Certificate. We'll also need rates for these costs.

Evidence that your builder has a Builder's Risk insurance policy in place, and that the interest as pledge is noted on the policy.

Drawing down your loan:

Before you start drawing your loan, you'll also need to provide proof that all the permissions of resources, building permits or other requirements to start building your property were obtained.

Before you can take down any part of your loan, you must provide the manufacturer who will have to pay the bills. You may also need to show the statement of an expert on the costs to complete your property, or that the value of your property 'as is' and once completed (we can advise if this is required).

Before getting the final 5% of the loan amount, you must submit a copy of the certificate of code compliance and a certificate of completion of an expert. You will also need to arrange insurance on the property for an amount sufficient to repair or replace the property in a situation of general loss completely (the insurance must consider our interest in the property as a mortgage lender).

Christchurch properties

If you're buying a property in Canterbury, you may need to file:

Information about any EQC restrictions on the property.

A copy of any Scope of Works statements for the house or land and any EQC or insurance payments made to the present owner.

Sufficient insurance cover to completely repair or replace the property in a total loss situation, with no caps, exclusions or restrictions to do with natural disasters (and noting our interest as mortgagee).

Approval from your lawyer that any EQC claims that haven't yet been paid will be transmitted to you when you buy the property.