Building a new home gives you the opportunity to create a space that suits the way you want to live.
Whether you’re a first-home buyer, growing family or investor, building can give you more choice over the location, layout and finishes of your property.
There can be a little more involved than buying an established home, but understanding the process and getting the right advice early can make things much easier.
Building a home involves a few more steps than purchasing an established property.
From choosing your land and builder to arranging construction finance and making progress payments, knowing what to expect can help you plan ahead and avoid unnecessary surprises.
Before choosing a block of land or looking at builders, think about what you want from your new home and what will work for your budget.
Consider your lifestyle now, what you may need in the future and which features are most important to you.
Before choosing a design or builder, consider:
Finding the right block is about more than just location and size.
The slope, soil conditions, orientation and access to services can all affect what you can build and how much the project may cost.
Doing your research before committing to a block can help you understand any additional site costs and make sure the land suits the home you have in mind.
Take the time to compare builders and find one you feel comfortable working with.
Look at their previous work, visit display homes where possible and make sure you understand exactly what is — and isn’t — included in the quoted price.
It can also help to read reviews, ask for recommendations and understand how variations or upgrades will be handled throughout the build.
Construction finance works a little differently from a standard home loan.
Rather than receiving the full loan amount upfront, the lender generally releases funds in stages as construction progresses. These are known as progress payments.
We help you understand how construction finance works, compare your lending options and get everything ready before building begins. As your build progresses, we can also help manage the progress payment process, submitting builder invoices to the lender and helping make sure payments are processed so your builder gets paid along the way.
Once your finance and building requirements are in place, construction can begin.
As each stage of the build is completed, your builder will issue an invoice, and your lender will generally release the required progress payment once their requirements have been met.
Keeping in contact with your builder and broker throughout the process can help keep everything moving smoothly.
Once construction is complete, you’ll generally have the opportunity to inspect the property and raise any items that need attention before handover.
Once the final requirements are completed and the last progress payment is made, you can collect the keys and move into your new home.
Building gives you the opportunity to choose a layout, finishes and features that suit your lifestyle rather than adapting an existing property.
New homes are generally built to current building standards and may include newer materials, insulation and energy-efficient features.
Because everything is new, you may have fewer maintenance and repair issues in the early years compared with an older property.
There can be a lot to work through, and that’s where we come in. We’ll help you understand what may be available to you and how it could fit into your overall finance options.
You don’t need to figure it all out on your own. We’re here to help you understand what may be available to you and how it could work alongside your finance.
Site costs, landscaping, driveways, window coverings, upgrades and variations can all add to the final cost.
Having some room in your budget can help cover unexpected expenses.
Make sure you understand what is included in your contract, the expected timeframes, payment stages and how variations will be handled.
Your solicitor or conveyancer can review the contract before you sign.
Building timeframes can change due to weather, availability of materials and other factors.
Keeping in touch with your builder and broker can help you stay on top of any changes along the way.
Speaking with your broker before committing to land or signing a building contract can help you understand your borrowing capacity, budget and finance options before you get too far into the process.
Building a home can be incredibly rewarding, but getting the finance right from the beginning makes a big difference.
We can help you understand construction finance, work through your borrowing options and guide you through the finance side of your build from approval through to the final progress payment.
Whether you’re buying, refinancing or just want to know your options, we are here to help make it simple.
Send through a quick enquiry and we’ll be in touch.
Please note we do not provide tax, legal or accounting advice. Any information contained in this article is of a general nature only and does not take into account the objectives, financial situation or need of any particular person and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. We suggest you consult your own tax, legal and accounting advisers before engaging in or considering the appropriateness of any transaction.