Things to be Aware of

When working through your finances for your project, whether it be a new home purchase, build or renovate, there are various extra expenses that may be incurred and require inclusion in your funding budget. Examples of these are as follows:

Home Purchase (existing house or investment property)

  • Mortgage Application Fee *
  • Property Valuation *
  • Solicitors Fees/Legal Disbursements *
  • Mortgage Insurance
  • Moving Expenses
  • Incidentals & Other Expenses
  • Property Inspection Reports
  • Builders Reports
  • LIM/PIM Reports (Land Information Memorandum/Project Information Memorandum)

*In the current market, we will most likely be able to have all fees waived plus achieve 'cash back' contributions sufficient to cover your legal costs and often much more!

Home Build

As above, however a Property Inspection Report and Builders Report will not be necessary.

If you are building a GJ Gardner Home, you will have an 'agreed contract price' for the entire build including driveways and paths. One thing however to be aware of, there is a small risk that if unforeseen issues are experienced during site excavation and additional cost incurred on ‘site works’, this cost can be passed on. Generally your GJ franchisee will have a good knowledge of local soil types and be able to predict if any issues are likely but it is always something to be aware of.

Check out this Link – Comparing Apples with Apples Builders Checklist


The same funding costs will potentially be incurred as with ‘Home Purchase’ above (1st three items) depending on how far you wish to go with restructuring your existing mortgage facilities. Given the highly competitive mortgage market we are in, it could be a good time to talk to us for a review of what you have versus what may be on offer. It is very likely we will be able to achieve a $0 cost of transfer and provide you with a more efficient and cost effective banking facility providing significant savings to you.

The greatest risk with home renovations is ‘the unknown’! It will be hard to find a builder that will fix price a home renovation, unless it is very straight forward. In most cases the builder will work on an hourly rate basis and you pay for the materials or they will supply and invoice you. They will often put a mark-up on the materials if they supply them. This obviously makes it difficult to cost.

For smaller projects, we may be able to work on a written ‘itemised’ cost estimate from your builder for the purposes of satisfying the bank during the application process, they may even provide the funds in a lump sum where you have a good level of equity in your property. However for larger projects, it will be likely that we will be required to have a quantity surveyor (QS) assess the project to determine a build cost, then the QS will monitor the drawdown process.

One thing is for sure, no matter how much homework you will probably have a cost overrun! It is therefore important you have plenty of contingency up your sleeve to deal with any overruns.

Other costs you need to consider (if applicable) are:

  • Design and drafting fees
  • Possible engineering fees
  • Resource Consent fees (if a Resource Consent is required)
  • Building Consent Fees
  • Council Bond
  • Project Management costs