It is every person’s dream to own or build a home. This is an experience that renters or first-time home buyers very much look forward to. Although sometimes, the excitement gets replaced by anxiety, especially if people don’t know much about the process.
While there are many things to consider. You won’t go wrong starting with these six things:
1. Knowing the Cost for Home Building in Brighton
If you asked the experts, the first thing they would suggest you consider when building a house in Brighton is the cost of the land. Housing Industry Association’s (HIA) latest data shows that the cost per sqm in Sydney is $933 and $223 in Hobart. According to RealEstate.com, “The average house in Australia is 243sqm, so the HIA puts the cost for the build portion at just under $300,000.” Now you have an idea of the cost of the land. Keep in mind that you will also need to look at the price of constructing the house itself – labour and materials.
2. Understanding Land and Construction Loans
Since residential property costs continue to increase, knowing how to apply for land and construction loans can help you to buy something you might otherwise be unable to afford. A land loan is a type of loan that a borrower obtains from a lender or a bank in order to buy an empty block. A construction loan on the other hand, sets a period in which the house must be totally constructed. When checking your loan options, it’s best to contact an expert to help you with the approval process and other requirements.
3. Getting Conveyancing Services Only From Experts
There are many conveyancing services offered online and offline. It’s important that you only acquire the services from a professional. A trusted conveyancer will help you prepare a section 32, review your contract, liaise with banks and lawyers, ensure your documents are intact, and guide you in preparing for critical dates. While getting a conveyancing service isn’t required, it is safe to say that it will make property transfer easier and quicker.
4. Finding Great Custom Home Designs in Brighton
Before building anything, get into the habit of listing your preferences. From the neighbourhood in which you would want to belong – to the house design. It’s always better to have something prepared than rushing yourself into choosing something for your home. In addition, if you’re living with your family, be sure to ask for their preference. For sound advice on designing a beautiful, original, and elegant home, it’s highly recommended to seek the help of a custom home builder in Brighton.
5. Choosing Quality But Easy-to-Maintain Furniture and Fittings
When building a house, it’s also the best time to choose easy-to-maintain furniture and fittings, such as your windows, doors, and cabinets. You’d also need a quality shower, vanity, and mirrors for your bathroom. If you fail to pick good furniture from the start, you would need to replace items after a couple of years, which is expensive. Remember, you will have bills to pay as well as loans to service. Don’t pass up the opportunity to save on replacement and housekeeping costs.
Hopefully, these six things will help lay the foundation for your new building. There are more elements and factors to cover but consulting the experts, as suggested above, will point you in the right direction. Have a great time building your new home!
6. Home Loans for A First Time Buyer
There is nothing quite like the joyful anticipation of applying for your first home loan, buying your first home, your first block of land to build on or a house and land package. This is something you’ve probably been dreaming of for a very long time and have finally saved up what you thought would be a sufficient amount of money to put down as a deposit to qualify for a home loan. Typically, that might be the case, but sometimes you may need to borrow a bit more and other times you just might happily realise that you have even saved up more than is required.
What many first-time home buyers aren’t aware of is that there are different loans for different levels of residential property, whether that’s a new custom home, land or a housing package and so it’s hard to say exactly what kind of percentage you might be able to borrow. Yes, your credit history will most definitely factor into the equation, but that isn’t the only consideration to bear in mind. This first-time buyer’s guide to home loans is meant to help you understand the varying amounts you may be eligible to borrow.
General Guidelines for Conventional Home Loans
Sometimes first-time buyers look for new homes or those that need little to no repairs or renovations. However, with the cost of real estate continually on the rise, most prospective buyers are looking for a home that has been lived in and may, or may not, need a bit of work before moving in. Amounts you may qualify for are typically based on the condition of the home as well as the location where it is situated so it is difficult to give exact percentages. As a general rule of thumb, most lenders will approve:
- Up to 80% of the home’s value when you don’t intend to renovate.
- Usually you can borrow up to 90% of the value if only a minor renovation is needed.
- When major renovations are necessary – up to 95% of the value plus costs of renovation if a licensed Brighton builder is involved.
- Knocking down and rebuilding a home can net you a loan up to 90% of the land value but if a licensed builder is utilised, you can often borrow as much as 95% of the total cost of land and rebuilding.
- If you intend to do the renovations yourself without a licensed builder, the general amount lenders will approve is 60%.
So then, as you can see, there are different types of loans for very specific needs and this is something every new home buyer should understand. Whether you wish to include a home extension in your home loan or are simply looking to move in “as is,” the amount you can borrow is based loosely on the above variables.
Hidden Costs to Plan For
Sometimes you have no intention whatsoever of doing any repairs or renovations to the home but as you begin moving house, at a cost you may not have anticipated, you realise something is lacking. This is why it is always recommended that you save an amount of money greater than the initial deposit you calculate you will need based on the price range of homes you can afford. For example, one of the leading issues many first-time home buyers encounter is a lack of storage space.
While that empty home looked quite spacious when you toured it, moving in with all your belongings is another story altogether. Suddenly you find that the wardrobe in the master bedroom doesn’t have sufficient space to hold your clothing. Here is where you’ll need a Brighton builder that accounts for interior design; one who is able to easily limit the amount of floor space lost.
It All Adds Up
Buying your first home may add up to more than you had reckoned for, but with proper planning, it is possible to arrange the home loan that meets all your needs. Every little thing adds up, so it is necessary to account for more than the cost of the purchase price. Always take time to plan well in advance so that you can have the money on hand to handle any issues you may have missed when making an offer on that home.
There are different kinds of home loans open to you based on the above variables, but you must know what you are looking for before applying for that home loan. It’s always better to have too much than too little when it comes to buying a home, so keep that in mind and you will finally have the home you’ve been dreaming of for so very long.