For many entrants into the New Zealand housing market, buying a home in the currently competitive environment can prove a challenge. Many first-time buyers are, therefore, considering investing in relocatable homes. These homes – also referred to as prefabricated, modular, or transportable homes – are generally good value for money. They offer buyers a variety of choice, can be made within a given budget, and can be located on any desired piece of land. These factors have made relocatable homes an increasingly attractive option for buyers who may otherwise feel like they are compromising too much and still not getting the home of their dreams when investing in a more traditional option.
However, for the longest time, financing a relocatable home was hard to do, as most NZ banks would only provide loans for homes secured on the land. Since relocatable homes are built almost wholly off-site, this meant many new homeowners had to pay for much of the initial build without financial assistance from the bank. Despite these builds being cheaper, those initial outlays could still prove difficult to come by.
With relocatable homes’ continued popularity, however, more banks are beginning to understand that expecting buyers to fund initial costs in a way that they would not have to do for more traditional housing options is not sustainable. Many banks are, thus, looking into offering viable financing alternatives. On the one hand, buyers can opt to gain a personal loan. A newer and potentially better option, however, is to seek a loan that is specifically designed for relocatable homes. Such loans function very similarly to traditional construction loans, but take into account that the building of the home takes place off-site.
With financing seemingly finally catching up with the times, it may not be long before even more New Zealanders begin investing in relocatable homes.