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The building process

Building your own home is an exciting process, but it can also be long and sometimes complicated. And unless you have first-hand experience, it can at times be daunting.

When you’re building your own home it’s important to have an overview of the building process. Ask family, friends and colleagues who’ve built their own homes about the pros and cons and their own home-building experiences.

Even if you haven’t yet decided whether building is the right option for you, some simple research and basic information gathering can help you make your decision. You can make a start right here and, for more useful information and advice, talk to:



What do you want?

Building your own home means you can choose the features and styles you’ve always wanted. However, it’s not to be rushed into. Take some time to think your project through, considering your likes and dislikes and deciding on the features and styles that suit your life.

  • From a practical perspective, think about the lifestyle you want to lead in your new home, now and in the future. For example, do you need room for vehicles, outdoor living areas, entertaining areas, space for children, room for guests, a workshop or a home office?
  • From an aesthetic perspective, collect ideas from magazines, trade shows, open homes and show homes to piece together a picture of your dream home.

The more research you do, the clearer your ideas will be and the easier it will be to explain them when you need to get plans drawn up.

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How much will it cost?

Setting a building budget is one of the most important steps in the building process, and one that you should address early on.

Firstly, make an appointment with an ANZ Mobile Mortgage Manager or ANZ home loan specialist to help you work out what you can afford.

Then ask a builder or architect for an estimate or a quote. Until detailed plans have been drawn up, they’ll only be able to give you a rough estimate, so be prepared for changes. Even when you have final plans, ‘hidden’ costs are almost inevitable (unless you negotiate a fixed price contract), so it’s a good idea to allow an extra 10%-15% more than you originally anticipated.

By comparing the cost estimate with what you can afford, you can adapt your plans if necessary then decide on your building approach. Our expertise will help you through this process.

Timing and delays

Even with the most thorough planning, your building project is likely to take longer than expected. Ask your builder or architect for an indication of the likely time involved, but be prepared for delays due to bad weather or late starts while your builder or architect finishes work on other projects. It’s a good idea to have alternative accommodation arranged in case your new home isn’t ready for you on time.

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Building options

You have three main options when it comes to building:
  1. Custom design.
  2. Group housing companies.
  3. Design and build companies.
Deciding which is best for you will depend on your budget, your knowledge of the building process, the time you have to oversee the project, and your personal preference.

Custom design

Custom design means designing your home from scratch, giving greater scope for incorporating your personal tastes and preferences. Three types of building professional can help you draw up your plans:
  1. A builder: with this approach you’re committed to using the builder for the duration of your project. While it’s ideal if you have a builder you like, you won’t be able to put your building plans out for tender to obtain competitive quotes.
  2. A draughtsperson: a draughtsperson may be able to bring some design flair and technical expertise to your project and may be a cheaper option than an architect. However, their job begins and ends with drawing the plans. Draughting isn’t currently regulated in New Zealand, so anyone can call themselves a draftsperson regardless of qualifications or experience. Check that your draughtsperson is a member of a professional body and has enough experience before they start work on your project.
  3. An architect: an architect will translate your requirements into a range of design options. Their creative flair and professional expertise can add considerable value to your building project. Consider using an architect who’s a member of the New Zealand Institute of Architects – this gives you an assurance that they’re registered and qualified and have relevant experience.

Group housing companies

Group housing companies offer a range of standard house designs for you to choose from. This is an affordable way to build your home with minimal stress, as many of the details are decided for you.

Most companies will have show homes that give you a good idea of what your new home will look like. Another advantage is that you know the cost of your home and the time it’ll take to complete, before building begins.

Design and build companies

Design and build companies can co-ordinate the entire building process from start to finish, including buying the land, drawing up plans, arranging building consents and sourcing materials and labour. They often work under fixed price contracts, which mean that the price of building your home will stay the same even if labour and material costs increase during construction.

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Choosing a builder

  • The important thing is to choose a builder you feel comfortable working with. Benefit from the experience of others and ask family, friends and colleagues for the names of builders they would (and wouldn’t!) recommend.
  • Approach a number of builders about the job and be sure to obtain more than one quote.
  • Ask when the builder can start and how long it will take.
  • Ask prospective builders for references from previous building projects that are similar to yours.
  • Set specific deadlines and expectations in your building contract and ensure the builder sticks to them as closely as possible.

Choosing a building contract

If you’re hiring a builder, discuss the type of contract you’ll have. Whatever you choose, make sure you both understand your responsibilities and have agreed in writing what the job entails, how much it will cost and the payment schedule. Always seek legal advice before signing a building contract.

Under a full contract it’s the builder’s responsibility to oversee the entire project, including sourcing all materials and organising any subcontractors. This type of contract offers the greatest protection by eliminating the chance of cost overruns.

Under a labour-only contract, you’re responsible for managing the project, including sourcing materials, organising subcontractors and obtaining building consents – the builder is there just to do the building. Managing a labour-only contract can be a full-time job, so make sure you know what you’re doing and have enough time available before you commit to it.

A managed labour-only contract is a cross between a full contract and a labour-only contract. You’re responsible for sourcing and buying materials and organising subcontractors, while the builder is responsible for managing the day-to-day building process.

Be aware that you may become the head building contractor with both types of contract. This means you may unintentionally be liable for anything that goes wrong with the house for 10 years, even if you sell it to someone else. Talk to your lawyer about these risks before you sign anything.

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Consents, controls and compliance

To avoid frustrating delays and complications later on, consider the required building and planning controls early in your building project.

Your local council can provide information and advice on the consents you’ll need and how the application process works. They’ll also be able to advise on the rules and regulations for additional building projects on your property, such as fences, pool fencing, garages and carports, decks and paving, earthworks and excavations.

Changes are being proposed to building legislation, so ask your council about the current regulations and how they may affect you.

Checklist: consents, controls and compliance

  • Project Information Memorandum (PIM): PIMs are required for all building work and can be prepared on request by your council. Among other things, a PIM will confirm (subject to various conditions) whether you can start your building project. Except for internal alterations and minor building projects, you should apply for a PIM before applying for a building consent, as consent usually can’t be granted unless a PIM has been obtained.
  • Resource consent: resource consent will be required if your building plans may affect the environment, and is available from your council. If you need resource consent, make sure you get it before applying for a building consent, to avoid having to make costly changes to your proposal.
  • Building consent: building consent is required by law for building work and can be obtained from your council. ‘Building work’ covers any internal or external renovations to your home (or any other buildings on your property), as well as the construction of a new building.
  • District plan compliance: you are responsible for ensuring your building plans comply with the district plan – a building consent is not enough. Contact your council or planning advisor for help.
  • Additional controls: additional controls may apply to building projects on properties that have known hazards such as flooding, are near the coast, contain protected buildings or are subject to special height controls.
  • Compliance certificates: once building is underway, you’ll need to arrange inspections at various stages to ensure that your project complies with the Building Code. Once building is completed and it’s passed a final inspection, you’ll be issued with a code compliance certificate stating that the minimum requirements of the Building Code have been met.

Buying land

Before you buy land it’s a good idea to apply for a Land Information Memorandum (LIM) from your local council.

A LIM includes all current and historical information held about the property and is useful for identifying any problems and potential building restrictions. A registered surveyor or geo-technical engineer may also be able to help you identify any potential problems with building on the land.

Remember, if you’re buying land for your building project, you’ll need to consider things such as access to the property, property boundaries, land contours, sun and views, and whether any excavation or retaining is required before building can start. If you’re thinking of buying land in a subdivision, check if there are any restrictions on building style – or other covenants, such as whether you must build a fence of a certain height and quality on your boundary.

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For more information on the building process, order one of our free ‘Getting ahead with home ownership’ CDROMs right online, by contacting an ANZ Mobile Mortgage Manager or visiting any ANZ branch.

This material is for information purposes only and you should obtain professional advice relevant to your individual circumstances. While ANZ, part of ANZ National Bank Limited, has taken care to ensure that this information is from reliable sources, it does not warrant its accuracy, completeness or suitability for your intended use. To the extent permitted by law, ANZ does not accept any liability arising from your use of this information.

ANZ lending criteria, terms and conditions and fees apply to all loans.

You can ask for more information, including full terms and conditions for all of ANZ's lending products and a current Disclosure Statement, published by ANZ National Bank Limited, at any ANZ branch.

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