Better to build or rent?

Question from Vishal updated on 10th January 2018:

I am planning to build a house in Auckland. I have got the pre-approval and have selected a few sections. Total EMI comes to 40% of our household income. With the talks of property crash, do you think we should go ahead with a new build or should we just continue renting?

Our expert Kris Pedersen responded:

I think Auckland long term still has good fundamentals. Just understand that things are in your favour to an extent with it being more of a buyers market and take your time. Make sure that you engage a good lawyer who you use to look over any purchase agreement and in particular the build contract. Note that there can be some quite large variances in between the banks in regards to the build products offered so feel free to get in touch if you want to discus the different options.

 

Kris Pedersen of Kris Pedersen Mortgages is a commentator on property and finance. His team sources top finance strategies. www.krispedersen.co.nz

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