Using land as collateral to build a new home?

Question

We bought a home with a section large enough to one day build on the back yard. We do not have much, if any equity in the home at present as we have been there under a year. Is there a way to build a new home, and use a portion of the land as collateral to do this (I do realise this could involve subdividing the section into seperate titles).We live in New Zealand. Thanks :)

Answer 1

Could you take out a home equity on the existing home and classify the 2nd building as a guest house and home office?

Unless land values and rental demand are that high to justify construction, may not be much of a point to justify construction unless you put a large amt of sweat equity in it. In the US, framing is around 8 to ten dollars a sq foot, and total 100 to 150 a sq ft. So you could have the home framed, plus plumbing and mechanical done, and do the rest yourself (siding roof interior carpentry).

You could also, build equity and save, then build.