Purchasing a section in New Zealand is an exciting first step toward building your dream home. However, securing the necessary funding can seem daunting. Fortunately the team at constructionloans.co.nz understands how to navigate the process of section funding, and can help you manage your goals.
Understanding Section Funding Basics
Most banks in New Zealand require a minimum 20% deposit to fund the purchase of a section. This prerequisite is standard for traditional residential lots within urban areas. The appeal of owning a section is widespread, offering a tangible foundation upon which to design and build a custom home that meets your unique preferences and lifestyle needs.
For sections that fall outside the typical urban residential category—such as rural or lifestyle blocks—the funding landscape changes slightly. These properties often require a longer due diligence process due to their unique characteristics and potential for additional complexities, including access to services and infrastructure. In these cases, non-bank lending options emerge as viable alternatives. Non-bank lenders frequently offer more flexible terms, accommodating the distinct needs of rural or lifestyle block purchasers, albeit with a trade-off of slightly higher interest rates when compared to the main banks. This flexibility can be particularly advantageous for those looking to invest in property that may not meet the stricter criteria of traditional banks, or if you do not fit the typical borrower profile of mainstream banks. Here at constructionloans.co.nz, we can help you to identify non-bank lenders with competitive rates and terms that align with your project's unique requirements.
Preparing for Your Section Purchase
Before diving into the process of securing funding for your section, it's essential to conduct thorough research and consider all aspects of the property you intend to purchase. Understanding the specific requirements of your chosen section, including any additional costs associated with rural or lifestyle properties, will ensure that you're well-prepared to navigate the funding process. Make sure you have good access to the necessities such as water, sewerage, fibre, and drainage when looking at more rural or hilly sites. Residential sites should be more well-equipped but it may still pay to undertake your own due diligence for peace-of-mind.
Purchasing a section in New Zealand is a significant step toward creating your dream home. Whether you're looking at a conventional urban lot or a more unique rural or lifestyle block, understanding your funding options is key. With a minimum 20% deposit typically required by banks and a range of flexible non-bank lending options available, securing the right financing for your section is achievable. For more detailed guidance and to explore your funding options, get in touch with our team on 0800 100 300 or visit our website, www.constructionloans.co.nz where expert advice and resources are readily available to support your home-building journey.
