Getting a Home Loan in Australia if you're living overs...
29 Nov 2023
Do you want a home that meets your lifestyle needs perfectly? Do you want more control over what your home looks like? Do you want more flexibility to customise?If your answer to these questions is a resounding “yes!”, then building instead of buying ahouse is the way to go.
Make your home your own.Use these tips as a building house checklist to keep your house construction on track.
A lot of novice homebuyers go into home construction without knowing exactly what they’re getting into. Save yourself from all the common pitfalls of home construction by knowing the basics of how to start building a house.
You can finance your home construction through a construction home loan. Construction loans work a bit differently compared to typical home loans. With a construction loan, the lender will provide funds for the construction in stages. The lender makes payments to the builder or developer after finishing a phase of construction. Once construction is complete, your loan reverts to a standard variable loan.
Take note that different types of construction loans are available. Some lenders offer green construction loans to help borrowers build eco-friendly and sustainable houses. Shop around to see which construction home loan best suits your needs.
You can also seek out home buyer grants to help fund some of your home construction costs. Check out government grants like the First Home Owner Grant (FHOG) or HomeBuilder Grant to see if you’re eligible.The requirements and benefits depend on your state or territory so it’s best to research the guidelines beforehand.
Stay on top of your finances to get the best deal on your loan. This means paying off debt, maintaining a good credit score, and ensuring that your financial situation is ideal.
When budgeting, give yourself a safety net or a set amount that your budget can go over. Home building costs can be unpredictable at times, so setting extra funds aside to anticipate those surprise costs can be a lifesaver.
The location of your property plays a significant role in the construction of your home. The design of your home may depend on the type of land you own, and the accessibility of your property can affect your building costs significantly. Building a house on a slope, for example, poses unique challenges that you need to think about before proceeding with the construction.
Finding a reliable builder is paramount for stress-free home construction. Take your time when researching builders. You want to find a builder that’s within your budget and has experience building houses in your preferred style.
Look at the builder’s experience, expertise, credentials, and any testimonials or reviews from previous clients. Talk to the builders yourself and ask as many questions as you can to ensure that you’re on the same page. Discuss the quoteand timeline, and read up on their warranties as well.
Before you sign off on your home construction, thoroughly review the proposed house design. If there are things you don’t understand, don’t be afraid to ask questions. If you plan to upgrade certain areas of your home, for example, discuss that with your builder to ensure that the current house design can easily accommodate future upgrades.
There are many steps to building a house. Knowing the different stages of home construction will help you understand why the construction takes as long as it does. Even though builders provide an estimated timeline for home construction, setbackssuch as issues with construction or shipping delays could hold up construction.
Get an independent home inspector or consultant to inspect your home construction at every stage of the process. Ask questions and discuss any uncertainties you may have about the building materials or practices used while building your home. Having a home inspection during construction and after the house is built will help ensure that there are no underlying issues with the house.
When figuring out the cost of building a house, don’t forget to include hidden fees such as stamp duty, temporary site requirements, and council fees. Also, any modifications or variations to the contract could end up costing you (depending on the builder agreement).
Building your own home doesn’t have to cost an arm and a leg. There are plenty of ways to save money on your home construction without cutting corners or sacrificing quality. Follow these tips to avoid overspending on your home construction:
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