Building your new home is a great way to ensure you find exactly what you’re looking for in a property, but what’s the best way to go about it? When it comes to building new, there are generally four options you can choose from to help create the home of your dreams.

1. House and land packages

Pros:

• Keep it simple:  A design and build company with a dedicated project manager will usually manage the whole process from conception to completion. The land is also included in the deal which makes financing a lot more straightforward than trying to buy a section and fund a new build separately.
  
  
• On time and budget: The prices for home and land packages are usually fixed, and because the same contractors have built a number of very similar houses, the construction time can sometimes be a little shorter. Homes are therefore generally more likely to be completed on time and within budget.

Cons:

• Limited locations: House and land packages generally come as part of a subdivision, so where you can build may be restricted to the locations of available subdivisions in your area.
  
  
• Customisation options: Design and build companies generally give you a choice of pre-approved floor plans and styles based on your budget and the size of the section. While saving you money on architect fees, it limits what you can customise. There may be some room for personalisation, but changes to the blueprint are likely to cost you extra. Still, it’s a brand new home built the way you want.

2. Kitset homes

Pros:

• Faster construction: A kitset home comes with all of the plans and materials you need to construct a house. The framework is made elsewhere, parts are brought onsite, and everything is made to interlock and connect together so construction is generally quick and easy. Similar to ‘house and land packages’, you choose a kitset home based on a selection of pre-approved plans which limits the amount of customisation. Most building companies involved in kitset home construction have showhomes available for you to walk through so you can see exactly what you’re getting.
  
  
• Choice: With plenty of pre-fab or kitset building companies to choose from, you have an opportunity to shop around to see which plans will best suit your section. Talk to a few building companies, compare designs, quotes, and how much customisation each building company will offer. A little haggling or negotiation could work in your favour.

Cons:

• Not all companies are equal: How much do you want to be involved? Some builders project manage everything and supply all the subcontractors. Sometimes project management and picking the contractors is up to you. Project managing is a tricky job that requires organisation and coordination skills and should not be attempted lightly. Talk to a number of kitset building companies and make sure you know up-front who is responsible for what.
  
  
• Securing finance: Unlike a ‘house and land package’, the section isn’t included in the deal. It can be more difficult to arrange a loan to buy the section, and adding the costs of building later. Before any money changes hands, it’s best you first talk to your bank or mortgage broker.

3. Architecturally designed homes

Pros:

• Made to your specification: You have complete control of customisation, from the number and sizes of rooms, right down to the handles on your kitchen cupboards. Everything just the way you want it. You work directly with an architectural designer and builder to create a house that meets your exact specifications.
  
  
• Level of involvement: Many building companies will take care of the architectural and design component, as well as supply the contractors and tradespeople necessary to get the job done. Plus they will project manage it to completion. In other cases you may have to shop around for builders, project managers and other contractors separately in order to find the right people for the job.

Cons:

• Affordability: Of all these options, building an architecturally designed home is generally the most expensive and takes the longest amount of time to complete. From designing the plans, gaining consent, importing new materials, and finding contractors with the expertise to fulfill your specific requirements, everything takes a little bit longer and, in this case, time really is money.

4. Owner built homes

Pros:

• Total control: You can do things exactly the way you want them done. You still need to apply for building consents, all work must satisfy council regulations and building standards, and regular inspections will still be required.
  
  
• Control costs:  Family and friends can help you during the construction process. If you have a good relationship with a supplier or can get a good deal on building materials, you can avoid paying the surcharge added by building companies onto time and goods.

Cons:

• Not everyone can do it: Building your own home is not an option available to everyone. You must meet certain criteria and sign a statutory declaration that proves to your local council that you’re capable of doing the work. You don’t have to be a Licensed Building Practitioner, but you do need to know what you’re doing.
  
  
• Resale value:  Your local council will record who did what work on your property’s LIM. This may not be an issue if you’re a Licensed Building Practitioner, but a file note disclosing the DIY origins of a property could put-off potential buyers when the time eventually comes to sell.
  
  
• DIY can only get you so far: Some work is best left to the experts. Plumbing, electrical, gasfitting or drainlaying work must be carried out by a professional and the appropriate certification obtained. There is no way around this.

When it comes to choosing the best way to build a house, what are your ‘must haves’ and ‘would likes’? Have you found a section already or are you still deciding where you would like to live? How much control would you like in the process? Plus the all important question, what’s your budget? All these factors influence whether an architectural build, home and land package, kitset deal, or doing it yourself is the right option for building your new home.

If you are thinking about building a new home, then download our home build guide to help you on your journey.