Do mum and dad – or auntie and uncle – have spare land? They may be able to help you into your first home.
There is a growing trend of building on family land as a cost-effective and smart solution for first home buyers. And done right, it can be a win-win for both parties.
At Able Spaces we are familiar with this process and we can tell you how it can work well for everyone.
What Are The Benefits?
Being Close To Family
Many parents love having their children (and potentially their grandkids) living close by and if you are a parent, you may benefit from some extra help with the children.
On the other hand, if your parents also need a little help, it can be good for them to have you close by. Perhaps they won’t need to move into a retirement village or care so early on. Or maybe they just need a bit of help with odd jobs here and there.
Many parents also appreciate reducing the amount of maintenance and upkeep of extra land they no longer need, by selling some of their land, particularly in residential areas.
Building New For Less
You can usually expect to get the land for a good price when dealing with parents instead of buying on the open market. (You will also avoid the stress of bidding wars and unfavourable terms.)
Couple that with buying a brand new house from Able Spaces, and you will find you will get your home for a better price than buying a house and land package from a developer, or an existing house.
With your parents help and Able Spaces on your team, not only will you get a new home at a good price, but you will get a new home which you can customise to suit your taste and your lifestyle.
Benefits of A New Home
A new home with Able Spaces comes with a host of benefits:
No unexpected costly repairs or maintenance – which you often inherit with an already existing home. (Rest assured we use only quality materials in our builds.)
Able Spaces homes meet (and often exceed) New Zealand’s current building standards, so you know you will be safe, warm and dry.
Reduced running costs and greater comfort levels, with double glazing, inbuilt ventilation and above standard insulation in our homes.
Your new home is fully customised to suit your lifestyle – this includes colour choices, layout, cladding options, flooring, size – we can even build your home to two storeys if you wish.
Ideas and suggestions from our complimentary interior design service, on hand to help, should you wish.
A choice of building on site (our kitset option) or having your completed home transported to your site (when we build your home in our factory, your home is completed in a matter of weeks).
Keen to Get Started? What’s Next?
Satisfying the Bank
For first home buyers, the key is to get the lending as it’s not likely you have been able to save up enough money to pay for your house in cash.
Banks will lend on a transportable home (or on one of our homes built on site (our kitsets)). The bank will be looking for security so will take security over the land. This happens in one of two ways: either you need to be on your parent’s title (if your parents don’t want to subdivide), or your parents need to subdivide a portion of their land and you have your name on the section title.
Subdivision
The benefit of subdivision is that each party has their own legal title and owns their own home. Without going through the subdivision process, you won’t own your own land and your home ownership is entwined with your parents. If going this route, be sure to work out appropriate legal agreements between you all before you begin, should you wish to go your separate ways later.
If subdividing, it will take around 12 months to complete the process. Of benefit to parents, the subdivision stage can be useful for making boundary adjustments (particularly if your parents are on a rural property).
If you work with Able Spaces and we do the plans for your house during the subdivision process, you’re only looking at around an extra four months for your new home to be ready. Then in just a few weeks our transportable homes are built and ready.
At Able Spaces we don’t do the actual documentation for the subdivision but we can recommend great people you can work with who can do that for you. Once the paperwork side of things is done, we can liaise with the contractors and get pricing for all of the services for you.
We're Here To Help
No-one wants to rent forever, so if you’re stuck for options, consider this one and start the conversation with your rellies. You don’t know what the answer might be until you ask, so good luck!
Talk to us when you’re ready. We understand the subdivision process and we love helping people into their very own brand new home.
To find out more give us a call at 0800 277 223 or email sales@ablespaces.co.nz.
