From "Rough Diamond" to First Home: How to Hack the 2026 Market with a Do-Up.

Why Buy a "Do-Up"?

It’s not just about a cheaper purchase price. It’s about control.

The "Entry-Level" Hack: You can often afford a "shabby" house in a great suburb (near the best schools or public transport) that you’d be priced out of if it were brand new.
Manufactured Value: Instead of waiting years for the market to go up, you create value the moment you install that new kitchen.
Staged Spending: You don't have to fix everything at once. You can live in it, save up, and renovate room-by-room as your budget allows.

What Does it Cost in 2026?

Renovating isn't cheap, so you need a realistic "napkin budget" before you bid. Here is what we are seeing for mid-range projects right now:

Kitchen Refresh: $25,000 - $60,000
New Bathroom: $20,000 - $40,000
General Flooring/Paint: $15,000 - $30,000

Golden Rule: Always have a "What If?" fund. Add 20% to any quote a builder gives you for those hidden surprises behind the walls!

The "Money Hack" (The Refinance Strategy)

This is where most first-home buyers get stuck. If you spend some of your house deposit on a new kitchen, the bank might see you as a "high-risk" borrower because your equity is low. This can lead to higher interest rates or extra fees.

Here is a smarter way to do it:

Buy the house with your deposit.
Use a small "bridge" loan (maybe from family or short term loan) to do the big renovations fast.
Get a re-valuation after 6 months. If your $50k renovation added $100k in value, you can often "top up" your mortgage to pay back the initial loan.

It sounds a bit technical, but that’s exactly what I’m here to help you navigate as your Mortgage Adviser.

Three Red Flags to Watch For

Before you fall in love with a project, check these three things:

The "Bones": Is the house damp or sinking? A building inspection is non-negotiable. Cosmetic fixes are easy; structural fixes are nightmares.
The Paperwork: Ensure all previous work has "Council Consent." If the previous owner did a "dodgy" DIY job, it could become your legal headache later.
Flood Zones: In 2026, insurance companies are picky. Check the council maps to make sure your dream home isn't in a high-risk area.

The Bottom Line

Buying a do-up isn't always glamorous - you might be living with a microwave and a toolkit for a few months - but it’s one of the few ways left to fast-track your wealth in the NZ property market.