Building Your Dream Home on a Budget

Building Your Dream Home on a Budget

Building your dream home on a budget
Building your dream home can be a reality. There are good options out there for people who have time to wait for a home to be built, and plenty of home designs to choose from for people on a budget.
Development companies offer home and land packages, and most cater for people with little or no savings for a deposit. Typically the house and land packages are away from the CBD, so if you are looking for something closer-in you might want to consider finding the land yourself and hiring a builder.
Most lenders will offer construction loans for people who want to build their own property. These are basically home loan mortgages that allow gradual payments to builders at agreed stages.
However hiring a builder direct is not without risk and requires good planning and sensible handling of your construction budget.  You can usually have a say in the layout of the apartment provided you identify the changes you want early enough.
Just be sure to put everything in writing so you can determine what extras you need to budget for.
Here are some other tips for building your dream home.

Buy your land from a reputable seller
If you are not going to get a house and land package, you have to find a vacant block to purchase before you build.
Beware sellers offering blocks with old homes on them that are suitable for bulldozing because they may be protected by the local council or state government.
Bulldozing an old home that is under a protection order is a recipe for disaster and will usually lead to fines or a prosecution that will drain your funds and delay construction.
Do your homework and get advice.
Choose your builder wisely
There are builders are everywhere, so how do you choose a good one? The key is to do your research long before you even buy the land.
Look for those with a good reputation for building homes within a given budget and providing an acceptable level of standard features.
Form a short-list of reputable builders. Ask to see examples of their work and get testimonials from previous customers.
Most builders should finish work on your house in six months but beware the ones that claim they can do it in weeks or a few months.
Ask about insurance and warranties. Clarify who is obtaining the building permits (usually it is the builder) and establish an agreed system of payments as each stage of the build is complete.
Most importantly, do a background check on your builder. Most states in Australia offer a service for people to check builders’ licenses to ensure they have the proper credentials. If you can afford it, choose a master builder.

Hidden costs
This is often the hidden danger when it comes to building your first home.
Countless people have been faced with stamp duty costs after buying land to build on. Duties can be in the region of thousands of dollars.
Some states have levies on new land, but not on established homes.
Depending on your financial situation you may also need to pay mortgage insurance, and loan establishment fees. Remember to not overstretch you budget and always keep something in reserve for emergencies.
Look for government grants
Government grants are a great way to save on costs. Some governments offer first home buyer grants and grants for people who buy new properties.
Ask your local council state and federal representatives what grants are available to you.

By Marie Mortimer. You can follow Marie on Google+

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