Purchasing Your Section

You have probably heard the saying “location, location, location”. If you want your next build to provide great capital value, that starts with purchasing your section. Our advice is to purchase the best section you can afford. It may have a great view, north facing, great neighbourhood…something  that others may be willing to pay a premium for. 

If you already own your section, then your equity (the difference between your mortgage and the value of that land) becomes part of your deposit. If you only have equity and no cash to pay a deposit to your builder, don’t worry, NewBuild will help by ensuring some of your equity is transferred as a cash deposit so you can build. 

Inherent Equity
If you purchase a section and you paid less than its value, you will be allowed to include that extra value as part of your deposit after you have owned the home for a minimum of six months (some lenders require 12 months). We refer to this extra value as "inherent equity" (the value of the land or property above what you paid). Inherent equity can be used immediately only if you use our non bank funding facility.  

If you have yet to purchase a section, you need to ensure you have sufficient funds to purchase your section, and that you also have sufficient funds to build. You will need to pay between 20-25% of the land price to settle on the land. If your deposit does not meet this criteria you may still be able to build, but you need your building contract to coincide with the land settlement.