If you’re planning on building a new home, first and foremost contact your bank/mortgage broker and find out how much you can borrow? Next have a good, hard, honest look at your finances and ensure you can afford to repay what they are willing to lend you – even if it is an investment property there will be times which it may be unoccupied for a variety of reasons and you may need to contribute to the mortgage!
There is no point in heading off to display homes or contacting builders if A: you don’t have enough deposit and or equity in your current home for the bank to lend to you and B: if you don’t have the income to cover the repayments.
Once you have determined how much the bank is willing to lend you, you then need to work out where you want to live and what sort of house you want and then what your budget will let you have! You may desire to live inner city with river views but will your budget let you! Be realistic! Saves a lot of people a lot of time and you a lot of heartache…..
How much you spend on the land will affect what design home you can build – and how big! So do your research because that big house will not fit on a small block.
Ok so to start, the basic cost of building a house can begin at approximatly $1200m2 + depending on a lot of factors, but the larger the house generally the cheaper the per m2 price.
When you are sourcing your land remember that a flat block will cost a lot less to build on than a sloping block- even a slight slope will cost $$$$$ – averaging about $8000 for every metre of slope on your land, and some builders wont build unless the land is flat or you have done the earthworks and retaining yourself – and this can be tens of thousands of dollars.
Choose your builder carefully – cheap builders build cheap, often unfinished homes! and some of the most expensive builders charge you more to cover their overheads such as their expensive branding and fancy, high spec display home designed to get to you emotionally.
Check what is a standard inclusion. Unlike OJ Pippin Homes many builders do not include driveways, landscaping/turf, fences, carpets, tiles, blinds, site costs etc and these can cost you tens of thousands of dollars above your contract price – OJ Pippin include these in your price and you know up front what you are getting so that you can move right into your home on handover! A lot of builders leave these out and quote cheaper to get your signature on the dotted line, but you end up having to pay for these out of your pocket because they are then not included in your build contract and that is what the bank is lending you – what is on the build contract not what you want on top of it!
The level of inclusions you want can send your budget spiralling out of control, so check all of this carefully. This is why it is so important to know how much you have to spend.
To get an accurate price from your builder you will need to be honest about how much money you have, where your land is, what type of house you want and what standard of inclusions you want – a builder cannot give you an accurate price if you don’t give them honest information. Identify what you want and have it included in the contract so that it forms part of the contract price and is not a variation which you will be charged extra for as an out of pocket expense will save you a lot of time and money in the long run – and make for a smoother build!
Every builders prices are different, they all have different overheads, they use different trades and suppliers and they charge different profit margins – you need to get in writing what will be included for the price of the contract not look for the cheapest contract price. So when you are ready to talk the talk call OJ Pippin Homes and let us help you to discover if you can afford to build a new home.