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What you should know when building a house

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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.

Things to consider when building a house in Australia

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.

Home construction loans and grants

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.

Get your finances in order

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.

Location, location, location

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.

Choose the right builder

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.

Review the proposed house design

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.

Understand the building process

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.

Have the house inspected

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.

Hidden costs and fees

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).

Money saving tips for your house construction

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:

  • Source your own materials. Shop around for materials that aren’t bought in bulk and ask for quotes. Compare these with what your builder is proposing and see which is more economical. You can also source your own appliances if you find better deals elsewhere.
  • Negotiate with the builder. Get in touch with different contractors and builders to see what the going rate is on the market. Knowing the market price will help you better negotiate with the builder.
  • Do the final touches yourself.Not everything requires an expert hand. Paint your bedroom walls yourself or screw in the handles on cabinets on your own. These simple tasks could save you hundreds in construction costs.
  • Don’t stray from the plan too much. It may be tempting to add some amenities or change certain features. However, these changes, no matter how small, could cost a lot, especially when construction has already begun.
  • Find a low-rate construction loan. A great way to save money when building your own home is by getting a good low-rate construction loan. Get a construction loan that provides you with the best interest rates and other incentives.

Get a construction loan that’s perfect for you

At loans.com.au, we provide great construction loans to help you build the home of your dreams as soon as possible. Contact us today or apply online!

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About the article

As Australia's leading online lender, loans.com.au has been helping people into their dream homes and cars for more than 10 years. Our content is written and reviewed by experienced financial experts. The information we provide is general in nature and does not take into account your personal objectives or needs. If you'd like to chat to one of our lending specialists about a home or car loan, contact us on Live Chat or by calling 13 10 90.

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