What To Know Before You Start To Build A Home

To build a home is one of those exiting things in life most of us only do once or twice.  Many never even experience this feeling as they prefer to buy existing homes.  

If you have never before build a house, then pause for a moment and consider a few things before you rush into it.

Building Your Own House - Then read This

If you will be building your own house make sure to consider and inform yourselves about the following:

• When buying land
  • Find out about flood levels
  • Find out about bushfires
  • What is the slope across the land
  • What is the soil type
  • Which direction will your living areas be facing

• Covenants
  • What covenants are in place
  • How lenient are the developer - will you be able to build the house of your dreams
  • What minimum size houses do the developer specify
  • How long do you have before you have to start building
• Finance
  • Have you contacted a Financial Broker / Advisor
  •  Do you have to pay mortgage insurance
  • Can you absorb "surprises" (extra expenses) that may arise during construction
• Security
  • What is the crime rate like in the area you consider
• Access
  • Do you have access to public transport
  • How far are you from schools, shops and medical facilities
• Builder
  • What type of builder are you going to employ
    • Custom Builder
    • Project Builder
• Timeframe
  • New buildings rarely finish on time.  Have you made arrangements for accommodation should it not happen as expected
• Quotes
  • Getting quotes sound easy.  In reality it hardly ever is.  Builders often quote on their own designs meaning you cannot compare apples with apples.
• Insurance
  • What risk should you be covered for when you buy land and build a house
• Some "hidden Costs"
  • Adding up all the "hidden costs" often surprises people.  Make sure you understand what costs are applicable in your case.  Some of the possible costs include
    • Stamp duty
    • Transfer duty
    • Loan establishment Cost
    • Mortgage Insurance
    • Conveyance cost
    • Clearance, excavation, retaining cost
    • New connections for electricity, gas, phones, television etc.

The above points may not all apply to you.  It is by no means a complete list but rather an attempt to get you thinking.  Most of these will have a financial effect.  Some of these will affect the value of your new house and it is therefore important to spend time before rushing into making a decision.

Look At Brand New Homes For Ideas

When you first start to think about building, make sure to look at brand new homes for ideas.  Not only will you learn all about the latest trends and ideas, but you will also see what designs and plans are popular. 

It will also help you develop a feeling and understanding for what type of house to look for before you start to build a home.