Why Now is the Perfect Time to Start Planning Your Build or Renovation
The dream of stepping into a newly built or beautifully renovated home is powerful. But as any homeowner knows, bringing that dream to life requires timing—and right now, the stars are aligning.
If you’ve been waiting for the perfect moment to begin planning your dream build or renovation in Auckland, the end of 2024 offers an opportunity. With interest rates dropping, construction costs stabilising, and less pressure on the industry, now is the time to start turning your vision into reality. Here’s why acting sooner rather than later can save you both time and money.
1. Falling Interest Rates Create a Prime Opportunity
The Reserve Bank of New Zealand (RBNZ) has taken another bold step in its monetary policy, reducing the Official Cash Rate (OCR) by 50 basis points to 4.25%. This marks the third consecutive rate cut in recent months, following a 25 basis point reduction in August and a 50 basis point cut in October.
For homeowners and those looking to build or renovate, the impact is already being felt. Banks have responded quickly, lowering home loan rates, which is making it more affordable to finance new builds and major renovations. This trend is expected to continue as borrowing costs decrease, offering welcome relief to many Kiwis planning their dream homes or tackling large-scale projects.
For anyone looking to build a custom home or renovate here in Auckland (or anywhere in New Zealand), this means you could lock in a mortgage at a significantly lower rate, allowing you to stretch your budget further without increasing your repayment load.
But here’s the catch: as rates drop, demand is likely to pick up again. By getting ahead of this trend, you’ll be in a stronger position when rates fall further, avoiding the rush of last-minute borrowers and ensuring you get the best possible terms.
2. Less Pressure on the Industry Means More Availability
The construction industry has also seen some relief from the overwhelming pressure it faced over the past few years. With demand cooling slightly, many top builders have more availability, allowing them to focus on delivering high-quality, personalised projects.
As one industry expert puts it, “Success doesn’t happen by accident—it’s the result of preparation, hard work, and learning from failure.” By starting your planning process now, you position yourself to work with the best professionals at a time when they can give your project the attention it deserves. Later, when interest rates fall further and demand surges, finding the right builder could become more competitive, leading to potential delays.
3. Construction Costs Are Stabilising
The pandemic saw construction costs skyrocket, but we’re now seeing more stability in pricing. While costs haven’t fully returned to pre-pandemic levels, they’ve steadied enough to offer homeowners more predictability when planning a build or renovation. As inflation in New Zealand stabilises within the RBNZ’s 1-3% target range, construction budgets are becoming easier to manage. This means your dream custom home or renovation is more financially achievable than it might have been just a year ago. However, as demand grows alongside falling rates, we could see costs start to creep up again. Planning now lets you secure your materials and labour at today’s more favourable prices, before the market heats up.
4. Planning Takes Time—And That’s a Good Thing
Even with interest rates dropping and builders more available, it’s crucial to remember that a new build or major renovation takes time. The process involves several stages, from initial design concepts to obtaining the necessary consents, which can span months before construction even begins.
By starting now, you’re giving yourself the time to make well-informed decisions without rushing. You’ll also avoid the frenzy of the busy season and be ready to move forward just as interest rates hit their lowest point. Think of it as planting the seeds today so you can enjoy the harvest tomorrow.
Start Today, Enjoy Tomorrow
The key takeaway here is simple: the stars are aligning for those ready to start planning their build or renovation in Auckland. Interest rates are falling, builders are more available, and construction costs are stabilising. By starting your planning now, you’ll position yourself to take full advantage of these favourable conditions and be ready to move forward when rates drop even further.
As the famous saying goes, “The best time to plant a tree was 20 years ago. The second-best time is now.” Don’t wait until everyone else is scrambling—get ahead of the game today.
Ready to take the first step?
Download our free eBook “Master Your Build: 7 Strategies to Control Costs and Ensure Quality.”
If you would like to speak to us about your plans, click contact us now.
