WHY WAITING TO BUILD COULD COST YOU MORE

You’ve probably seen the headlines - or if you’ve landed here, you’ve no doubt been served a few ads from agents, brokers, or other builders - all shouting that the Reserve Bank has dropped the cash rate to 3%.

When this happens, the established housing market usually goes a bit mad. Buyers flood in, auctions heat up, and suddenly you’re bidding against six other people for a 1970s do-up with a “quirky” pink bathroom.

Not exactly the Kiwi dream.

Why new builds move differently

The good news? New builds don’t react in the same overnight frenzy.

Demand doesn’t spike at tomorrow’s auction. You’ve got a bit more breathing room to plan properly - check out your options, run the numbers, and figure out what really works for you.

But (and this is the important bit) that breathing room isn’t the same as a free pass to sit back forever.

Why waiting can still cost you

While you’re weighing things up:

• Build costs creep: Materials and labour don’t tend to get cheaper.

• Land gets snapped up: The best sections always go first.

• Your money withers: Parked in the bank, it’s just treading water. Put it into a build and it’s working for you - compounding as equity while your home takes shape.

Too many buyers get caught up chasing the perfect rate - stressing over a few percentage points. But mortgages are a long game. A slightly sharper rate today won’t beat years of equity you could’ve been building if you’d started sooner.

Now's not the time to faff about

We’re not saying rush in blind. But you should make the most of the window you’ve got. Right now, rates are friendlier, contracts are fixed and new builds are still holding steady. 

Leave it too long and you won’t just be paying more, you’ll be stuck listening to Uncle Kev bang on about how much cheaper he could’ve got your place “back in the day.”

At Classic Builders, we’ll help you lock it in without the runaround:

✅Fixed-price build contracts (no budget blowouts)

✅House + Land packages to keep things simple for Kiwis

✅Flexible finance options

Take a breath, but don't hit snooze

👉 Check out our house + land packages.

Because the sooner you start, the sooner your money’s working for you.

FAQ's

Is building more expensive than buying an existing home?

Not always. With a fixed-price build, you avoid auctions, reno surprises, and paying through the nose for a leaky roof. Plus, new homes are energy-efficient and lower maintenance, which saves money long term.

What’s the difference between buying at auction and building new?

At auction, you’re competing in real time (and often blowing past your budget). With a new build, you know the price upfront. No gavel, no panic, no pink bathrooms.

If rates are low now, should I wait to see if they drop further?

You could - but while you’re waiting, land and build costs are still creeping up, and your money’s sitting idle in the bank. Even with a slightly higher rate, getting started sooner usually means you’re ahead in the long run.

What finance options do Classic Builders offer?

We’ve got flexible options to suit different setups. Some buyers prefer turnkey (pay a deposit now, nothing else until you get the keys). Others go with progress payments (pay in stages as the home is built). Both keep things predictable and lender-friendly.

Can I really build with just a 10% deposit?

In many cases, yes. It depends on your lender and income, but 10% is a realistic starting point, especially with fixed-price contracts that make the bank happy.