Building a new home can be daunting for many home buyers.
You may only go through the process a handful of times throughout your life, so knowing all the ins and outs can be difficult. Read our top 6 things you need to know before building to arm yourself with the knowledge to get started!
1. Know all the numbers
Once you have a contract price for your house and land, you can work out how much you will need to borrow from a bank or finance lender, as well as your mortgage repayments. However, just because a bank says you can afford the loan, doesn’t mean you can. You need to consider additional costs such as the initial deposit, stamp duty, transfer duty, conveyancing costs, loan establishment costs and lenders mortgage insurance. There are also living expenses including gas, water, electricity, phone and internet bills, and if this is your first home, you may need to purchase new furniture and appliances. Know ALL the numbers when it comes to living in a new home before you commit.
READ MORE: SAVE MONEY ON YOUR BILLS IN 5 SIMPLE WAYS
2. Reputation of your builder
Do your research and find a builder with a good reputation. Better yet, if you have family or friends who have built a home you love, ask them for a recommendation. Always speak to your builder about what you want in a home, what your expectations are and how they can help accommodate this. If required, get them to run through the entire build process so you know what to anticipate. Get to really know your builder, and find someone you can trust – this is a huge commitment!
3. Know your land
Aside from the obvious including the price of your land and its proximity to essential amenities, schools and family, there are a few other points to consider when looking at your land. If your land is in a bushfire zone, there can be additional costs associated when building your home to adhere to the appropriate regulations. If your land has a significant slope, retaining walls or excavation may be required, again, which again can cost you more. You may also find the estate you have bought in has certain requirements when it comes to landscaping, façade choices and even letterbox options! Speak to your land agent or builder to find out if any of these are applicable to you.
4. Build to resell
No matter how much you love the house you are building, you need to consider a time when you may need to sell or possibly rent it out. In particular, if you are a first home buyer it is ill-advised to make too many upgrades to the home, especially if it puts your home in a price bracket above that of your neighbourhood’s. It may not actually increase the value of your home. You should also be careful on your colour selections – ask yourself if what you are choosing will be appealing to others.
5. Green your home
Take the opportunity to upgrade any appliances you have to a higher star rating. This can include washing machines, dishwashers, fridges, taps and light globes. Any step you can take to reduce your carbon footprint and your energy bills is a positive one.
6. Passive design elements
You can also consider building materials and other passive design elements to reduce the cost of your bills. Ensuring your main living areas are orientated north allows the sun to naturally heat your home in winter and cool it in summer, as well as provide natural light. Installing eaves, good insulation, glazed windows and other such devices will all contribute to a better home.
Do you have any other things you think you need to know before building? Let us know in the comments!