How to Start Building a Custom Home in New Zealand
We spend more time than ever in our homes—raising families, entertaining friends, and even working remotely. So it makes sense to want a home that fits your lifestyle perfectly. From the layout to the finishing touches, every detail should reflect your needs and vision. The best way to achieve this is by building a custom home.
But how do you start the process? Building a custom home involves many steps, and understanding each one is crucial before diving in. This guide will help you navigate the process of building a custom home in New Zealand, from concept to move-in day.
How to Start Building a Custom Home
Building a custom home is rewarding but complex. It’s important to set realistic expectations: there will be delays, unexpected costs, and challenges along the way. However, with the right team and preparation, you can create a home that’s uniquely yours.
Setting a Time Frame
The first questions people often ask are: How long will it take, and what will it cost? Building a custom home typically takes around 12 months from start to finish, although this can be shortened with the help of a knowledgeable building partner. During this time, you’ll need to secure land, get financing, obtain necessary permits,and finalise your home’s design.
What Does It Cost to Build a Custom Home?
Building a custom home is generally more expensive than buying an existing property. However, providing a square metre rate is misleading for custom builds. We get asked this a lot, but the reality is that no two projects are ever the same—each one involves different site conditions, client preferences, and unique design elements.
A proper quote requires a builder to fully understand the plan, scope of work, site conditions, and time constraints. Just like assembling a complex Lego set, every component is priced individually before coming together into the final figure.
At Modern Barn Living, we focus on optimising your budget without sacrificing style or quality. Our designs are crafted to be both functional and beautiful, and we help streamline the building process by recommending widely available materials and providing detailed plans that reduce surprises and delays.
Financing Your Custom Build
Financing a custom home build is different from securing a traditional mortgage because there’s no existing home to back the loan. Instead, you’ll need a construction loan. When financing a custom home build, most banks in New Zealand will lend up to 90% of the total construction cost, meaning you'll need a minimum of a 10% deposit. Additionally, it’s prudent to set aside a contingency fund to cover unexpected costs, such as increases in material prices. Once your loan is approved, funds are released in stages as the builder invoices you, with the bank typically paying the builder or supplier directly, simplifying the payment process. During construction, you'll be charged a floating interest rate on the drawn amount, which shifts to a fixed rate once your home is completed, reducing overall interest costs. You'll also encounter various construction contract types, such as turn-key, build-only, partial contracts. If you’re unfamiliar with these, a guide from mortgages.co.nz can offer clarity.
Making Design Decisions
Designing a home that fits your lifestyle is the heart of the custom building process. Here are some questions to guide your design decisions:
What’s the Purpose of This Home? Is it your primary residence, a holiday home, or a rental property?
How Big Is Your Family? Do you need room to grow, or are you downsizing?
Will You Work from Home? Consider whether you need a dedicated office or a flexible work area.
What’s the Climate? Your design should reflect the local environment—whether that’s extra insulation for a colder region or maximizing outdoor living for a warmer climate.
What’s Your Style? Do you prefer open-plan living, rustic charm, or sleek modern finishes?
What Are Your Must-Haves? Whether it’s a chef’s kitchen, a workshop, or extra storage, identifying your non-negotiables early will help streamline the design.
Build with Confidence
Building a custom home in New Zealand takes careful planning, the right team, and a clear vision.
At Modern Barn Living, we offer more than just house plans—we provide comprehensive support to help you get started we’re here to make your dream home a reality.