The financial benefits of building new

At Journey2 we recommend our clients enter into a full contract construction agreement with our recommended building company, and also enter into a separate Sale and Purchase Agreement on the land. We recommend this rather than purchasing a “spec build” or “turn key”. By doing this it
ensures our clients are purchasing everything at true cost and gain the margins for themselves. With either of the other two options the margins would go to the middle man.

 
Our pledge to you. Any discounts Journey2 and its Building Partner can negotiate with developers due to our volume or existing relationships will be
passed directly onto our clients.
 
This is a “real life” case study demonstrating the financial benefits of entering the construction phase from the beginning.
1 Okoreka Road, Kahawai Point, Glenbrook Beach.

 
Land Cost
$270,000

 
House Cost
$375,000

 
Total Cost
$645,000

 
Valuation Prior to Construction
$677,500

Valuation Day of Completion
$730,000

Equity gain through Construction
$ 85,000

Rateable Valuation 18 months from contract signed
$780,000

Paper equity gain 
$135,000

Rental per week
$661

 
Per annum
$ 34,372

 
Which equates to 5.3% yield This gain is only possible from our clients selecting new homes and engaging in the construction process.
Interested in learning more? Book a free, no obligation consultation to discuss what we can do for you.

PO Box 9321

Waikato Mail Centre

Hamilton 3240

116 Main Highway, Ellerslie 

0800 677 777

info@journey2.co.nz

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