What should I know before building a house? (Part 1)
Wished you had a magic wand to ensure your custom home build is smooth?
Building a house doesn’t have to be a daunting task. Although we don’t have a magic wand, here are some handy tips to make sure your home construction project is smooth and stress-free.
With over 30 years of experience and countless projects, the experienced home builders at Symcorp know what to focus on, how to avoid pitfalls and build a dream home for our clients.
This article is a part of our 2-part series of "Building a New Home Guide".
Building a new home guide - Part 1
There are many costs associated with a new build. When you make a budget, consider different expenses like:
- Stamp duty
- Land price
- Builder costs
- Materials and fixtures like tiles, taps, showerheads etc
- Council Fees
- Doors, Flyscreens and Windows
- Security cameras and alarm systems
- Finishing costs - Landscaping, Fencing, NBN cabling installation
- Electricity and Gas Meters
- Eligibility for home loans and government rebates
Consider the resale value and the average cost of properties in your area and ensure your expenses don’t go over the expected value.
Also, make sure you have some money reserved for emergencies. As a rule of thumb, keep 10-15% money for unexpected expenses.
If you are building a new home or renovating your home, you may need to apply for a construction home loan.
Home loan can be taken to purchase a land and house package from a licensed builder or for major home renovations.
Banks prefer to give loans to buyers who are using licensed builders for their construction project. If you are a qualified tradesperson or have a building license you can apply for a home loan as an owner-builder. You can also take pre-approval for your home loan. It allows you to know how much you can borrow from the bank and shop around for suitable home and land packages or an existing home.
Note: Final approval from your lender would be needed to commence the project.
How to select the construction home loan?
- Compare the interest rates offered by different lenders.
- Check the fees charged by the lenders to check the property at different stages of the construction.
- Check the fine print - construction terms, time-frame for construction process, accessing funds, etc.
- Read the contract carefully before you sign it.
Find out more about the loans process - How does a construction loan work?
Check your eligibility for First Home Owner Grant and stamp duty rebates.
If you meet the eligibility criteria, you can get a one time grant from the government when you buy or build your home.
- How much can you get - $15,000*
- Property Valuation - Building or buying a new home valued less than $750,000*
- Stamp Duty Concessions - Available for first-time buyers for property valued up to $550,000.*
- Regional home building boost grant - If you meet the eligibility criteria, you can receive $5,000 after the purchase or construction of a new house or unit valued less than $750,000.*
Note: Regional home building boost grant is valid for homes built in regional Queensland.
HomeBuilder Grant - This grant provides individuals and couples with $25,000 for building or renovating a home. *
For more information, check this link: Queensland Government
Note: You can apply for multiple grants if you are eligible.
New South Wales
- You can get $10,000 for a new home valued less than $600,000 or valued less than $750,000 (if you are an owner-builder or contracting someone to build the house)*
- No-transfer duty for first-time buyers for homes valued less than $800,000 or existing homes valued less than $650,000.*
For more information, check this link: Office of State Revenue NSW
*correct at time of pubishing
Pick the right builders
When it comes to the builders, consider the following:
- Credentials - Are they licensed with organisations like Housing Industry Association (HIA), Queensland Building and Construction Commission (QBCC) or Master Builders?
- Check their references - Ask your builder for references and contact the previous customers. Are they happy with their work? Check if they have had any complaints against them.
- Past projects - Check the quality of their past work and if it meets your style and personality.
- Personality - Do they click with you? Your builder will be working closely with you for months. It is important to hire a builder with whom you can build a good relationship.
- Price - Does their price meet your budget?
- Contract- Check the warranty and support they offer. Read the contract carefully and understand the fine print before you sign anything.
To read the next article in this series, click What should I know before building a house - Part 2.
References - https://www.qld.gov.au/housing/buying-owning-home/financial-help-concessions/qld-first-home-grant/apply-first-home-grant