Over the past few years, availability of land to develop residential homes has become scarcer within the inner Brisbane suburbs. This together with the high cost of home renovations has seen a rise in the number of home owners preferring knockdown and rebuild projects within their existing pieces of land. These projects are perfect because they provide great value for money invested while at the same time allowing you to enjoy many benefits. Unlike alterations, renovations and extensions, constructing a home from scratch allows you to start from a brand new page which allows you to avoid unnecessary and unpredictable construction problems.
Knockdown and rebuild is perfect for homeowners who wish to own a brand new home yet do not really feel eager about selling their current units in a slow-moving market. If this sounds like you, then it’s time you considered the prospects of this home reconstruction strategy. While not all homeowners would find this concept workable, there are many benefits associated with it that you should consider. Whether you are tired with the way your existing home looks, are seeking to downsize or upsize your unit, embracing this plan will enable you to definitely influence the personality, look and feel of your new home right from the start.
In most cases, the crucial part of the property when dealing with your old home is not getting the construction materials but the piece of land on where the property is built. As a result, many homeowners consider demolishing the existing structures to be the most suitable option available to be able to build a new one from scratch. In many instances, this can be considered as a suitable option when compared to the cost associated with the repair of the old house.
By opting for knockdown and rebuild project, you will be able to avoid the inconvenience of relocating your family and loved ones to another area while at the same time enjoying the prospects of having a new house. Additionally, it is also possible to incorporate modern energy saving features along with other environmentally friendly aspects.
In the process of constructing a brand new home, the first thing that you need is funding for your new home. You therefore need to get an evaluation to determine your borrowing capability and once this is done, it is most likely that your lender will ask for council approval plans as well as a fixed price agreement from your insured and licensed builder.
Once you qualified for a loan, you need to provide your lender with invoices to help control the payments made to your builder. These payments are made in various stages of project completion e.g. flooring stage, framework stage, lock-up stage and completion. You should note, however, that prior to payments being made, your lender’s independent expert must verify that the project has been completed. This provides you the assurance that the builder’s work is perfectly up to standard which gives you a peace of mind.
When your new home is completed and ready for handover, switching your loan from construction to variable rate or fixed loan is possible. As you decide to get a home loan, it is important that to discuss with your broker who will be able to review your construction loan options and assist you to change an ordinary product as soon as the project is completed.
Advantages of a Construction Loan
- It allows you to have control over your finances and budget.
- You pay interest-only throughout the construction period.
- You can have access to a professional to guarantee that the project is managed properly.
- After the completion of the project, the loan can be changed to a normal residential mortgage.