Building your first home?
Getting a foothold on the property ladder gets easier once you've got your deposit saved.
Home design and land
Design
Should be an easy place to start. Think about your needs now and into the future – what do you want from your new home? Size, design, functionality – these are all things to take into account, which should help you decide whether going for a house and land package or project home or getting something custom designed.
Each of these options has different costs associated, so knowing what you can afford from the outset is a must.
Land
If you’ve chosen not to build on your existing block, make sure your new land into account when thinking about your new home design.
Having to make site changes retroactively to accommodate an irregular design can really set you back, so be sure to have a site inspection before you commit on both land and design.
Choosing a builder
Making sure you have the right builder for your project is key. Luckily, it’s not something you have to do alone. If you’re going with a house and land package through a developer, they may be able to recommend a selection of builders to complete the project. If you’re building a custom home, get some recommendations from friends who’ve gone through this process successfully, or talk to the Master Builder’s Association and get some quotes from local builders.
When selecting your builder, ask for as much info as you can before committing. You should be able to request plans and costings for each aspect of the build and an accurate completion timeline.
Before you sign, have a solicitor or conveyancer look over the plans agreement, home indemnity insurance, building contract and contract variations agreement.
Getting a home loan
The two most important factors in staying on top of your build finances are knowing the full cost, and having your loan approved and in place before you break ground.
Knowing the cost
Firstly, calculate how much your deposit will need to be, and have your solicitor or conveyancer determine how payments will be made. If you prefer to have more control, you may like to ask if you can make progressive payments only after work is completed and inspected in stages. If you prefer to pay all in one go before the home is built, as for ‘price on completion’ in your initial quote gathering process.
Getting your home loan approved
Speak to your bank sooner rather than later, and be sure to keep them updated on any deadlines in place during your build process. When applying for a home loan, be sure to take into account costs like Stamp Duty and Legal Fees.
Contracts and cover
Signing contracts
If you’ve agreed on costs, take the time to go over your contract with your solicitor or conveyancer. Don’t make the mistake of keeping quiet here – changing contract details after signing can be costly.
Local knowledge
Get in touch with your council and make sure your contract complies with local laws and requirements. Ensure your builder is responsible for securing the required licences and permits.
Insurance
You’ve come this far, so make sure you have insurance in place before construction kicks off to cover your land, property and site visitors.
Build and handover
Now comes the exciting/stressful part – the build.
Your builder will usually invite you to a pre-build meeting, but don’t let this be the only time you speak with them throughout the process. Staying involved and in touch means you’re able to make decisions on design and budget should they arise.
If life gets a bit hectic and you’re struggling to keep up with the project, you can always call in some help in the form of an independent building consultant to manage the build.
Soon after the build is complete (usually within 7-10 days) you’ll be ready to collect your keys, make any final payments. Make sure you collect a copy of all relevant warranties as agreed in your contract, and get written authorization from your builder that it’s safe to move in.
After that, it’s all yours!
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++ $2,000 cashback for loans ≥$250,000 with LVR of less than or equal to 80%, or $3,000 cashback for loans ≥$500,000 with LVR of less than or equal to 80%,. Applications must be submitted by 31/05/2024 and funded by 31/08/2024. Only one (1) Cashback Payment per eligible loan, and for first eligible loan only. Not available in conjunction with any other promotional payment. Offer may be varied or withdrawn at any time. See the full Cashback Offer Terms and Conditions. Terms, conditions, fees, charges and credit criteria apply.
~At the end of the fixed rate period customers can chose to re-fix their loan for another fixed rate period or let the loan revert to the applicable variable interest rate based on the loan and repayment type.
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#Discounted rates include a discount on Home Loans of $150,000 or over and for owner occupied Home Loans with an LVR 80% or below and for investment Home Loan with an LVR 80% or below and apply to new borrowings only. Discounted rate not available for Line of Credit facilities.
+Additional costs may apply if your loan has a fixed rate.
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