Finding your way in the construction industry as a first home buyer is an exciting but sometimes stressful and confusing process. Here are some things to help you on the way to your new dream home:
- To accomplish getting into the market sooner we recommend broadening your search in relation to the land location to get your foot in the door. That might mean looking in a wider radius than you initially expected. This will only be for a short time, most people move every 5-7 years and having a home to sell or use as equity means you can move into your desired area later with a much bigger budget, to build your dream home sooner.
- Household budget calculators available online can help, and loan calculators on bank and finance company websites are general guides and useful tools. Use these regularly to see. What your realistic saving potential is.
- Carefully budget for the future. While your current finances might be stable things can change, budgeting for your deposit and home loan repayments is essential to determine whether you can afford your home loan.
- Remember there are extra costs that can increase the size of your deposit, keep in mind that bank fees and mortgage insurance can be expensive.
- The government offers a First Homeowner Grant (FHOG) and stamp duty concessions to first home buyers. Check out the FHOG section of the state revenue office below. https://www.sro.vic.gov.au/first-home-owner
- Be sure to talk to a Finance Broker who can give provide you with your most affordable options. Ask brokers if they receive commissions from credit providers and whether they will also be charging you a fee.
- Once you have a firm idea of what you can afford, make sure you explore your full range of options in terms of where you will live, as well as the kind of house you can afford.
- Consider local amenities; both existing and planned. Are there train or bus services? Where is the closest shopping centre or local shops? What are the education and recreational facilities like? What are your travel times to and from work? Think about what you need for your lifestyle now and in the future.
- Decide on the style of house you want by looking at a wide range of display homes and floorplans. Be realistic about the size and the number of rooms you need, and check cost-saving options with your new home advisor.
- Ensure the land you choose will suit the design of the home you want to build or vice versa. Review any planning provisions or design guidelines that may apply to your chosen lot. Ask the land agent for the engineering documents and research the best options for you.
- Find out if there are any extra or provisional costs. For example, some blocks may incur additional costs for retaining walls, excavation or additional slab engineering and ensure these costs have been accounted for by your chosen builder.
- Make sure you find the right builder. Check out display homes, research builders online, and get recommendations from friends or family who have built a home recently. Product Review offers a range of customer reviews independent of the builders, sorting the reviews by the lowest ranking shows you the issues other customers have had and the pressure points to worry about.
- Check the building specifications, inclusions and terms and conditions in the quote and contract. What fittings, fixtures are included? What are the energy ratings? What are the terms and conditions you need to be aware of?
- Shop your consultants. If you walk into an office and are treated poorly or feel like the consultant is not being transparent, regardless of the price, they’re not the builder for you. Keep in mind that your initial appointment sets the tone for the whole process and can be indicative of the companies’ values and strategies.
- Set a bit of money aside for landscaping, fencing and blinds. If you build a new home, you will also need a little bit of extra money as a buffer in case something does go wrong during and after the build process.
Doing your Due diligence in the first place can and likely will save you a headache, not to mention quite a bit of money in the future. Make sure you research, compare and decide on the best option for you.
If you need more advice, consider getting in touch with Dulger Homes, and one of our highly skilled consultants can assist you further.