Instead of buying an established home, which might require some expensive DIY and repair work, have you ever considered building a brand new home or purchasing a house and land package? Not only is this a very rewarding experience, but it also means you can get the home you’ve always dreamed of, in the location you want to live. However, building your new home can be a stressful experience, so it’s essential that you do your thorough research beforehand to ease the pressure and make this process as easy as possible.
So, before you get stuck in and start building, what do you need to consider first? Here are our Top 8 tips for building your new home with ease.
The first thing you need to do when building your new home is to make a firm plan. You need to plan where you want to live and whether you want to build this home yourself or buy a house and land package and get a builder to do all the work for you. When buying a new house and land package, you need to decide where you want to buy (in a boutique estate or a large master-planned estate), and the house style you require. Builders will tend to have various house facades you can choose from as well as floor plans, allowing you to choose the home that’s right for you.
As well as deciding the type of home you want to buy, you also need to consider your budget and find out how much you can afford to borrow from the bank and a Mortgage Broker can assist you with your borrowing capacity. This will help you narrow down your house options, making it easier to make a decision. It’s best to buy a home that comfortably sits within your budget, to ensure you have some spare capacity if required.
If you purchase a house and land package, then these are generally a fixed price so you know exactly what you are paying. By building a home on your own, costs can easily escalate due to unforeseen circumstances.
When building your brand new home or buying a house and land package, there are various Government incentives that you might be eligible for. Firstly, if this is your first home, you might be eligible for the First Home Owner Grant (FHOG), The HomeBuilder Grant or the many other State and Federal government grants and incentives out there.
You might also be eligible for stamp duty concessions when building your new home. Again, this differs per state, so it’s worthwhile checking the Government’s website to review the latest incentives.
When building a new home there are a whole range of builders throughout Australia you can choose to build your home, but who should you use? It’s important that you choose a builder that is reputable and has good experience building new homes to avoid problems later down the line.
To help you choose the right builder, you should take a look at their credentials to make sure that they are adequately licensed and insured. You should also double-check that the builder is a member of the Master Builders or the Housing Industry Association (HIA).
To provide you with peace of mind, then we recommend you take a look at the builder’s past work, where you can examine the quality of the home yourself.
When building your new home, financing works slightly differently compared to buying an established home, so it’s important that you are aware of the process first. A lender or bank will still undertake the same checks as a standard mortgage for an established home. Usually, a lender will provide you with two loans: one loan for the land component and the second loan to build the house.
The first loan for the land is similar to a mortgage loan, where the land settles first with a mortgage registered on the title. The construction loan finances your build of the home. Funds are drawn down in stages, which offers some protection to the lender, and also means you will not have to pay the full amount of interest until the home is built.
Before signing the contract of sale, you should read through this carefully and make sure you fully understand it. You should also check whether there are any other hidden costs or anything that has been missed. The contract should specify the construction timeframe as well as include detailed plans and the payment schedule.
Like any other contract, you should get a solicitor to read over this for you. Any changes to the contract needs to be well documented and mutually agreed upon.
It’s important that you regularly receive updates about your new home’s construction to determine if everything is on track. You should receive regular updates from your builder or Property Consultant about how construction is progressing on your home. You can also visit the home yourself if you live close by to view it for yourself.
Before you enlist a builder to build your brand new home, it’s important to get independent advice to make sure your builder is up to scratch. Fortunately, at iBuyNew, we work with reputable home builders right across Australia and can show you past examples of their work. Our Property Consultants can also assist you in finding the best place to build or buy a new home that suits your circumstances and budget.
If you want to learn more about building your own home or how house and land packages work, we recommend that you speak with one of our iBuyNew Property Consultants who can discuss this with you in more detail.
Give us a call today on 1300 123 463 to find out more.