Land and Construction

WHAT TO LOOK WHEN BUILDING

Building your own home is exciting as you get to choose everything, from the floor plan to the finishing details. If you want to see your concrete slab go down and your dream house start to take shape, here are some steps to determine if building is the right move for you:

DECIDE WHERE YOU’D LIKE TO BUILD.

You could choose a block in an established suburb, a newly developed area or even a combined house and land package offered by developers. If you are choosing to build in a new area, check out the council website to see if there are any plans for commercial development (such as shopping centres) which may boost your property value down the track.

LOOK INTO SUB-DIVISION.

If you buy the right sized block and are eligible for subdivision, you could build more than one home and really start to develop your property portfolio. You could save time and money by building more than one home at once, or plan your home building in a certain position on your block to allow for future development. Each council will have their own rules and regulations about subdivision, so make sure you do your homework.

DETERMINE THE TYPE OF HOME YOU WANT TO BUILD.

Consider the room types, size and the amount of land you would like. Also think about what you could use extra rooms for in the future. An extra bedroom could also be useful as a study.

 

UNDERSTAND THE FINANCIAL IMPLICATIONS OF BUILDING?

For help to work out how much you can afford, try our borrowing calculator. Knowing exactly how much you can borrow and having the loan amount pre-approved helps when putting in offers, which can save you time and worry. Our Home Loan Specialists can help you get pre-approved for your construction loan.

CHOOSE YOUR BUILDER.

Visit a range of display homes and make sure you do your own research into each builder’s quality of work, service and reputation. Calling the Master Builders’ Association is also a good idea before you choose your builder. It’s a good idea to chat to a few different builders before you decide on one, to ensure you are getting value for money. We have a few builders on our panel which we can introduce to you who can take care of your needs.

FINALISE AND SIGN YOUR BUILDING CONTRACTS.

Always read the fine print and if you’re not sure about something, ask your builder to clarify or seek independent professional advice on what it means before you sign. You may be charged if you need to make changes during your build, so it is best to be certain before you sign.

 

MAKING SENSE OF CONSTRUCTION LOANS

When you’re building a house, banks and financial institutions offer a product specifically for building called a construction loan. When you have a construction loan, you don’t have to make repayments on your full loan amount until your home is completed. Here are some important things to know about construction loans:

There are usually five different stages of construction. These are known in the building industry as slab down, plate height, roofing, fittings and lockup. As your builder completes each stage, they will issue you with an invoice.

With a construction loan in place, all you need to do is pass the invoice on to us. We’ll make payments on your behalf from your home loan to pay your builder. These payments are called progress payments, as the funds are drawn down in stages at your request as the building progresses.

As each progress payment is made from your construction loan, you only need to pay interest until construction is finished. You can then change to principal and interest repayments or you can continue paying interest only for a period of up to five years.

 

BEFORE YOU BUILD: TIPS FOR SUCCESS

Building a home takes time, money and effort but the end result is worth it. There are a lot of things for you to work out before those first bricks get laid. Here are some tips to help get your build off to a good start:

SET A BUDGET

Work out how much you want to spend – and remember it’s not just the home itself that you’ll have to have in your budget. You might have demolition fees, council fees and may need to pay rent for somewhere to live while you build. Your builder can normally give you an idea of what it will cost to finish your home and remember to allow some money in your budget for unexpected costs discovered in the initial site preparation, or dealing with issues not covered in your building contract. You should also budget for items such as landscaping, appliances, window fittings and furniture. To save money, you might like to do some of the work yourself, such as painting or putting down your floor coverings.

PLAN FOR THE FUTURE

Think carefully about the number and types of rooms you’ll need and how you want to use these spaces for living and leisure. Make sure that the features you choose to build into your house will suit your lifestyle and add value to your home. For example, while you might not have kids now, including a bath tub in one of your bathrooms might save you the hassle of adding one in later, or improve your potential re-sale value if selling to a family with young kids.

 

FOLLOW THE RULES

Some local councils and government authorities have certain requirements or regulations that may impact your home design or landscaping choices. Making sure you’re aware of the rules and abide by council regulations to save you money and hassles later.

PICK THE RIGHT BUILDER

Before you sign up to your chosen builder, do your research. Make sure they are licensed and accredited and have an excellent reputation for workmanship and service. Your choice of builder has a huge impact on your overall building experience, so make a careful decision. To help make the decision-making process easier, you might like to speak with a building broker who can help you find the best value for money.

 

4 REASONS TO BUILD YOUR NEXT HOME

Ask anyone who has built a home what they loved most about building. Chances are, they will tell you the best part is getting exactly the kind of home you want. Also, when you build you typically only need to pay stamp duty on the land price, whereas when you are buying an establishing home, you are paying stamp duty on the purchase price. This could save you a significant amount in upfront costs.

Here are four other great reasons to build, rather than simply buy, your next home.

YOU CAN CHOOSE YOUR OWN FLOOR PLAN.

After walking through a display home you love, you may choose to build that design exactly as is. If you want to make your own changes to existing plans or even design your own home from scratch, you can do that too. The choices are endless and you have the chance to create exactly the kind of home you and your family need.

YOU CAN FINISH WITH YOUR OWN FLAIR.

When you look through older homes for sale, there are usually at least one or two finishes that aren’t to your taste. If you buy an older home, you might need to invest in renovations or put up with elements of your home you’re not that happy about. When you build your own home, it’s all up to you: the style of bricks, tiles and carpets, taps and door handles – even where your power points and lights are placed!

 

LESS MAINTENANCE TO DO MEANS MORE LEISURE TIME.

When everything is new, that means less repairs and maintenance around your home. Once you have everything set up the way you want it, your free time can be spent doing the things you like to do.

YOU CAN BUILD AS AN INVESTMENT.

Building and then renting out a new home can be an effective way to invest. You can take advantage of better depreciation with a new home, as you can claim maximum costs. Choosing to build a home or investment property is really exciting. To find out more, read about what to consider when building a home.

 

Like with any home purchase, there are risks involved in building. Some of the risks may include (but are not limited to) the quality of the building not being to your standard and construction not completed on time. It is important to consider all your options, do you research and even seek professional advice before making a decision.