Every year thousands of New Zealanders build their dream home with the help of group builders.
These companies with household names such as Classic Builders, G.J. Garner Homes, Mike Greer Homes, Signature Homes and others offer clients economies of scale and the ability to handle the entire build from dream to fruition.
Stephen Hape, construction manager at Classic Builders in the Bay of Plenty, said the sheer volume of homes being built sets group builders apart from other smaller builders. Classic Builders alone builds hundreds of new homes across the country every year.
Group builders typically offer a one-stop shop, from the birth of a dream to after-sales care. “With Classic Builders that means planning, design, building consents, the build, and then handover at the end,” said Hape.
Start your property search
Even before a client buys a section, Classic Builders can help. That includes providing support at the stage of investigating and buying land. The team can investigate potential issues such as drainage or services.
House and land packages
Group builders are best known for house and land packages on new subdivisions. That’s where first-home buyers, investors and others sign up for a build on sections owned by the group builder. They get to choose a design from a selection of pre-designed typologies for the subdivision, but can still personalise a wide range of elements of the build.
Larger group builders such as Classic Builders do much more. “If you want to go with house and land packages, we can do that. We can also do design and build [to the client’s specification] on land for you.”
When it comes to house and land packages, the builder and developer are often the same company. Photo / Getty Images
Hape said Classic Builders works with clients who build higher end homes as well. Clients may have bought sections, or subdivided land they own already and are looking for a cost-effective build. “We can design a house from a hand drawing on a napkin. That’s how simple it is. We do what’s called a ‘create session’ where we take their build outlines, then design and build from that.”
Hape cited an example of a sloping site in Redwood Road, Rotorua, that he was involved in. The 300sqm home was anything but ordinary. Classic Builders organised the designs and supported every step of the process, even helping to import bricks and floor tiles from Italy, to meet the client’s requirements. The advantage of a group builder in this scenario is more affordable building rates, he said.
Whether it’s house and land packages, designer homes or anything in-between, the main difference between group build and using a third-party architect for a similar home is that the plans are ready to be built as drawn, said Hape. The plans tend to be more practical than architect plans. That’s thanks to experience when designing and building a house.
Economies of scale
Typically group build construction is faster than independent builds, said Hape. “We have specific timelines that we meet through all of our builds.” Classic Builders uses a four-step process to ensure clients get accurate pricing to build the home of their dreams and ensure a smooth build, said Hape.
Thanks to economies of scale, larger groups such as Classic Builders can afford better systems, processes and software, not necessarily available to independent builders. “For example, we have our own project management system called the Classic Hub that is linked with our suppliers and contractors,” said Hape.
Construction on group build projects is typically faster than independent builds. Photo / Getty Images
“We get the best rates from our suppliers. From Carters, Plumbing World, Steel & Tube, and all the big suppliers. We pass on the savings, so our customers save thousands of dollars.”
He said that a larger presence meant the team could build relationships around the country and be on top of council and government regulations in every region.
“For example, our designers understand council processes in each region. That means we can get plans through building consent stage a lot faster,” he said. Instead of multiple resets of the clock in the council planning departments, most consents are approved within the initial 20-working day period, he added.
The business also had a network of connections with local and national professionals for specialised advice and services.
A personalised home
One common misunderstanding about group builders is that plans are fixed. To the contrary, clients can personalise just about anything about the build, even with standard plans, said Hape. “We rarely build straight off the plan. I would say about 95% of clients want to make changes to personalise the build,” he said. Clients can even choose a unique design from scratch.
Clients get as much or little personalisation as they want. Typically investors require very few personalisations, but design and build clients, however, will often tailor much more to their personal tastes. Classic Builders can advise on the finer details, trends and practicality to deliver a modern home suited to the site.
Most group builders allow buyers to customise their homes. Photo / Supplied
Hape said Classic Builders has product rooms that clients can visit to see all the options available. “In our product room, we show the roofing styles you can choose from, the colours, the bricks, garage door types, window, joinery, handles, colours, different types of floorings: tiles, timber, laminate flooring, internal. We have doors, different cladding types, appliances, tiles, plumbing hardware. It’s pretty much the whole house in one room.”
Quality control and after-sales care
A big difference with group builders is checks throughout the entire process. “We have 11 quality assurance inspectors, who provide stringent quality assurance,” said Hape.
They visit the build three or four times a week in a subdivision to ensure quality. That’s over and above council inspections, which instead of quality assurance, are focused on builders sticking to specifications.
At the end of the build, once keys are handed over, there is ongoing aftercare service and warranties, said Hape.
Financing a group build
Financing a group build home for buyers who meet standard bank criteria is usually straightforward, said mortgage adviser Helen Stuart, of Compass mortgages. She has had clients buy everything from group build apartments to standalone homes.
“Generally, they put 5% down for turnkey [house and land packages] and pay the balance on settlement,” said Stuart. “It’s a nice small amount and when your house isn’t going to be [completed] for a year you have time to plan and save more.”
A smaller percentage of buyers with design and build homes get construction loans for their build, which require progress payments, she said.
Stuart said she warns clients to not change their financial position before settlement, to ensure they still qualify to borrow. That, for example, may mean avoid changing jobs or going on parental leave.
Do your homework
Kiwis looking to build a home should do their homework before choosing a builder, said Hape. They want one who is reputable, has a good company behind them and has withstood the peaks and troughs of multiple property cycles.
Word of mouth is a good starting point, said Hape. That can include social media. It’s a good idea to get out and drive around to see who is building in the region, not just those pumping marketing out. They can also check with local councils which companies are lodging the most building consents.
- This article was produced in partnership with Classic Builders
