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Planning to build a house youll generally be faced with two options a turnkey contract or a progress payment contract were going to talk today about progress payment contracts thanks for watching if youre watching this on YouTube dont forget to hit subscribe below all of the ad revenue that will generate from these videos will go to local New Zealand charities so youre looking to build and your two main options are generally turnkey and progress payment the key difference is when you settle on the property when you take ownership of the property with the turnkey the developer builds the property and at the end of the development you purchase it from them with a progress payment you buy the section and the builder comes and builds the house on the land while you own it typically if you compared two identical contracts you would find that the progress payment contract is cheaper than the turnkey because the developer is paying the interest on the loan whi