The idea of taking your dream home and turning it into a reality is an exciting notion no matter which way you slice it. To think that you could actually have the bedroom, bathroom and living space you’ve always wanted certainly does make the whole ‘building from scratch’ thing seem like an attractive scenario.
New build homes are an involved undertaking and knowing the ins and outs can help you to be prepared.. In this article, we go through the ‘need-to-know’ of getting you ready to build your new home.
Pros Of Building From Scratch
Government Grants
To give first home owners a leg up in the real estate market, state governments and territories across Australia have introduced cash grants for first-time buyers looking to build a new property on their piece of land. The rules, eligibility criteria and size of the grant does vary depending on where you live. NSW, for example, offers up to $10,000 for successful applicants, to be paid once construction is in progress.
But that’s not all. The Federal government has also done their part to ease the housing affordability challenge facing first home buyers. The recently announced 2022 federal budget is set to inject millions into Home Loan Guarantee Schemes across Australia. Eligible first home buyers will be able to apply for a mortgage to build or purchase a new home with a small deposit of between 5% and 20%, without having to pay for Lenders Mortgage Insurance.
Reduced Stamp Duty
The great news for first home buyers in NSW, VIC and QLD is that you may be eligible to receive a concessional stamp duty rate on your land purchase, or even receive an exemption from this fee altogether. Victoria, for instance, will waive the duty on land valued up to $600,000 if you meet specific criteria. But even if you find yourself wanting to build in another state or territory, you’ll only be charged stamp duty on the land, not the whole build.
Build The Home You’ve Always Wanted
No longer will you have to spend hours trawling the pages of real estate websites and attending viewings only to be disappointed with the selection on offer. With (almost) full reign over the house designs and house plans, new build homes are a great way of guaranteeing you get an abode that you’ll absolutely love. This is where we come in.Our expert team of New Home Advisors will help you compare and shortlist new build home designs from Australia’s leading and trusted volume home builders based on what you’re looking for. It’s our goal to support you throughout the entire process so you get a new build home that you’ll love.
Environmentally Sustainable
Doing what we can to ease our impact on the planet has never been more important. And as it turns out, building a home from scratch can be a great way to lead a more eco-friendly lifestyle. There are solar panels, passive design techniques like optimised insulation and ventilation, and smart meters. These are just some of the things that can be incorporated into the design process to not only make your home more green, but also save you big on energy bills in the long run.
Cons Of Building From Scratch
Deadlines Set By Lenders
Mortgage lenders know that new build homes can sometimes take longer than expected to reach completion. So you can expect to be met with some time-specific loan requirements. Having to commence construction within 12 months of being issued the mortgage contract (disclosure date), and having the build completed within 24 months of the disclosure date is fairly standard. If you go over the specified timeframe, the loan (or the unused portion of the loan) may be withdrawn, and you may have to apply all over again.
Extra Costs
As nice as it would be to have the price of building a home come down to just the land, labour and material costs, this isn’t quite the case. There are a few hidden extras that can increase the bill when all is said and done. Site costs, soil and contour testing, driveway and flooring costs are just some of the things you’ll want to consider.
Going Over Budget
When it comes to building a new home, delays and cost overruns can happen. Inaccurate development estimates, modifications mid-way through construction, poor site management, design errors and the like can all potentially cause the build to run over budget. This is why it’s best to allow yourself a financial buffer as well some timeframe flexibility.
Construction Loans Require Lots Of Paperwork
Unlike a traditional home loan where your lender is mainly interested in your financial situation, wanting to see bank statements, savings, credit scores and payslips, construction loans go a step further. You’ll need to supply building plans, builder contracts, evidence of council approval and building insurance too..
Understanding The Market
While the process of building a house from scratch is, in itself, an involved undertaking, there’s also the climate of the real estate market to consider. At the moment, Australia is experiencing extremely high demand for residential land. Why? A combination of low interest rates, government incentives like the Home Builder Grant, the affordability of undeveloped land, and increasing household wealth are a few notable reasons. Then there’s the cumbersome council policies that have made it difficult to bring newly subdivided land onto the market quickly. As you would expect, lot prices, especially in capital cities, continue to increase.
With such intense competition between new home builders, it can really pay to have an experienced and well-connected property expert on your side. At iBuildNew, our dedicated team of New Home Advisors are committed to helping you achieve your property goals. From finding the land you want, to matching you with a builder you can trust, our team is here to guide you through every step of your property journey.
Selecting The Right Home Builder
Check Their Portfolio
What comes to mind when you think of your new build? Is it modern? Traditional? Particularly eco-friendly? A medium size home or something more expansive? Whatever you have in mind, it’s important to choose a builder who is geared towards the style of home you want. Having a chat with our New Home Advisors can help you refine your preferred style.
Decide On The Type Of Builder You Want
Project Home Builders
These are the ones who specialise in designing and building homes in bulk. Display homes are a common feature, along with fixed and affordable pricing, with some builders allowing a high degree of customisation so you can tailor the build to your desired taste.
Custom Home Builders
With these builders, you need not rely on pre-made designs. You can start afresh with a plan that’s totally unique and entirely your own (with the help of an architect, of course). Prices for this type of builder are very much contingent on what you want, but you can expect the bill to be a cut above that of a project home.
Experience and Reputation
A builder who’s been in the industry for some time will know the construction process inside out.t. They will know what needs to be done, how to do it, and will be more than ready to deal with common issues . How can you be confident a builder has this industry know-how? Industry reputation. Take your time to read reviews. This is where iBuildNew can help. We’ve done all the leg work for you as we partner with experienced builders that we match with your design needs.
Responsive
From the start you want your builder to be communicative and transparent. They should answer all your questions in a professional and honest manner, while also responding to calls and emails in a timely fashion. Tick this off in the beginning and it’s a good sign that they’ll be responsive the whole way through.
If you’re looking to build a new home, be sure to contact our team of New Home Advisors at 1800 184 284. You can also book a call at a time suitable for you!
Let us do the legwork for you.
- We’ll ask the right questions to better understand your needs
- We’ll create a recommended shortlist ideally matched to you
- We’ll answer specific questions or concerns related to home building, land purchasing or financing
1800 184 284
