3 December 2019
KiwiBuild joins the Waikato Property Market
Reigniting the dream of home ownership is no small claim, but as KiwiBuild officially joins the Waikato Residential Property Market, we can’t deny they’re opening new doors for first home buyers to enter.
For first home buyers, it can be tricky to understand the pros and cons of an initiative where there has been so much publicity and mixed messages.
So, we are here to help you sort myth from fact and give you our top pros and cons for joining KiwiBuild.
London Central and beyond
Earlier this year, KiwiBuild announced 18 new apartments would enter the Waikato property market – the first of its kind in Hamilton Central. Boasting practical and stylish architectural design the two-bedroom, single story apartments, they are said to offer a unique city lifestyle never before seen in Hamilton. And, with the mix of up-market townhouses and apartments on the development site, it’s hard to disagree.
One month into sales (at the time of publishing), only three of the 18 apartments are still available. We call this a success for KiwiBuild, following the highly criticised Northern Waikato Te Kauwhata Development, which still has homes available for sale. Speculation is now high on future upcoming developments; however, nothing has been set in stone past London Central. What does that mean for first home buyers and their prospects? Only time will tell.
KiwiBuild Pros
- KiwiBuild creates affordable solutions for first home buyers, without investor competition. Basically, the price you see is the price you pay
- With KiwiBuld you can move into a brand-new home. This is almost unheard of for first home residential property buyers
- KiwiBuild homes are located in high-need, desirable areas
- The 10-day due diligence period associated with KiwiBuild gives you the opportunity to do your research, before signing on the dotted line
KiwiBuild Cons
- KiwiBuild can give you tunnel vision in terms of what’s available on the market, and it should only be viewed as an alternative option – not the be all to end all
- At 75m2, the site footprint of the Waikato KiwiBuild sites are… small. These homes won’t be viable for a people with young or growing families
- Traditional capital gains are made from the land value. If you’re in a small site footprint or in an apartment complex where there is no land, your capital gains can be restricted
- With KiwiBuild you must sign a deed, legally binding you to live in the home for 3 years (for a two-bedroom apartment, like at London Central) from your settlement date. If you don’t last the term, you are required to pay 30% of the capital gains or rental income to the government. There is a change in circumstance clause, but this is subject to approval from KiwiBuild.
How Lugtons can help
Here at Lugtons we like to work in partnership with prospective buyers, to understand your needs and how we can help you get into the right property.
It’s simple once we have sat down and discovered your needs and wants, we will send you all the properties that fit (or are close to) your criteria, before they hit the market – so you’ll have the inside scoop from the get-go. Our approach goes above and beyond the one size-fits-all, which KiwiBuild buyers can sometimes get stuck in.
Contact Lugtons today
If you’re trying to get on the property market, contact the team at Lugtons today to discuss how we can help you hit the ground running and find your winning property.
