Buying Options & Lingo
If you’re thinking about building your dream home, there are various options to consider. Take some time to do your research that way, you can make an informed decision and build the home of your dreams! To simplify the research process, we’ve put together a useful glossary of lingo that you may come across as you explore your building options.
Buying Options
Buy Section + Engage Builder
Buying a section and engaging a builder offers flexibility and control over the design and construction of your home. You have the freedom to select a design and customise it to your preferences or create a completely unique, architecturally designed home.
Financing for this option usually involves two loans: one for purchasing the land and another for the construction of the house. Progress payments are required during the construction phase, and your mortgage increases as the work progresses.
While this option offers greater flexibility, it requires more effort and planning to ensure everything runs smoothly.
House & Land Package
A house and land package is a convenient option, where you can buy a house and land all in one package from a builder.
With a house and land package, you have a wider range of options and opportunities available, from selecting the perfect location and house design to customising the fixtures and fittings to your personal taste.
Progress payments are required during the construction phase, and your mortgage increases as the work progresses. This option provides a hassle-free way to buy a new build and ensures that everything is taken care of for you, from the initial design to the final touches.
Turn-Key
Package
A turn-key package is a favourable option for first-home buyers and investors, that delivers a finished home ready for immediate occupancy.
With this type of package, a fully fixed-price contract requires only a 10% deposit before the build starts, with no additional payments required until completion.
The package covers the cost of both the land and the new home, with the builder handling construction management, minimising risk for the buyer. Banks tend to prefer this type of loan as the risk is completely with the builder until the house is complete.
Lingo
Building Consent
A building consent is approval from the Waimakariri District Council to carry out building work.
Build Contract
A Build Contract is a legally binding contract between you and the building company involved in building your home, confirming that they will complete the work and you will pay for it.
Code Compliance Certificate (CCC)
A CCC is issued by the Waimakariri District Council at the completion of your build, once it is satisfied that it complies with the building consent.
Covenants
Covenants are rules that apply to land and affect how you can use the land.
Geo-tech Report
A geo-tech report looks at the ground conditions of your section and checks what is underneath the surface.
Land Information Memorandum (LIM) Report
LIM is a report of information that the Waimakariri District Council has about your section. You can request this report at your own expense.
Loan-to-Value Ratio (LVR)
LVR is a measure of how much a bank can lend against mortgaged property, compared to the value of that property.
Master Build Guarantee
The Master Build Guarantee covers homeowners for loss of deposit, non-completion, materials and workmanship, and structural defects for ten years.
Rateable Value (RV)
RV is a valuation undertaken by Waimakariri District Council and is used to set annual rates.
Sales & Purchase Agreement
A Sales and Purchase Agreement is a legally binding contract between you and the vendor.
Settlement
Settlement is when the property officially changes hands and the title gets put in your name.
Technical Category 2 (TC2)
Technical categories help engineers determine the type of foundation required for buildings to withstand damage from seismic activity.
Property Title
A property title provides information about a property’s ownership, boundary and access.
Zoning
Zoning is Waimakariri District Council’s guidelines for the permitted use of your land.
Ready to start looking for your dream home? Explore our FAQ page to learn more.
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