Home construction can be complicated especially for first time home builders but it doesn’t have to be that way. Building a home entails several processes and each process can be tedious. Make every process a success by following these simple guidelines.
Planning and Budgeting
Planning. The first and the most important step is planning. Thoroughly plan the details of the house. Details will include the layout, the flow of rooms, the kind of power points to install, and etc. There are also planning tools (Floorplanner, Magicplan, Roomscan, etc) that you can find online to help you design and create a mock floor plan for your house. Look for design ideas that you’d like to copy for your house.
Employ a professional to create the floor plan and design. Based on the ideas you have gathered from your mock floor plan and home design ideas, an architect or a designer can come up with the floor plan and specifications for the house. You will need this plan once home construction commences.
Create a budget. Together with your house plan is your cost estimation. This includes all the materials going to be used and how much it may cost. Estimation and budget will include lot price (if the lot has not been purchased yet), stamp duty, site cost, planning fees, finishing costs, constructions costs, and others. Detailed estimation during the construction costs is also pertinent as this will be required on the financing process.
The actual building process may cost more. There could be items that had been overlooked during the estimation process. For example, costs on gas and electrical, window coverings, and landscaping may have not been included. So it’s essential to budget more than what’s been estimated in order to cover these costs. Apart from overlooked materials, you will also have to put an allowance for unforeseen events.
Employing The Right Builder
Choose the right builder to work with. One of the most critical decisions to make in home construction is choosing the right builder. This is essential because you are going to work with them for a very long time.
When choosing the right builder, here are some factors to consider:
- The builder should have the right credentials, he/she must be insured and licensed.
- Look into the builders’ portfolio by checking into his references. Find out if previous projects the builder has handled were satisfied with the work rendered.
- Have a look at the homes the builder has constructed in the past.
- Other factors to look at is the style of work, personality, and characteristics, as well as the rate or their professional fee.
Read through the agreement/contract. Once you have chosen the right builder, there is a need to seal the deal into a contract. The contract will usually come from the builder, therefore it is important to go through the contents of the agreement before affixing your signature. Look into what the construction costs include and what is not included.
The agreement should include the cooling off period, timeframe of construction, the detailed plans, insurances, warranties, and the payment schedule. It is wise to get a trusted solicitor to look into the contract before signing the document.
Maintain constant communication with your builder. Make it a point that you receive frequent updates on construction development. Don’t rely on words alone, check on the site yourself. Take pictures of the developments on a regular basis to point out problem areas to avoid issues in the future.
Financing your Home Construction
Find out what you are entitled to.
First time home builders could be entitled to First Home Owners Grant and stamp duty concessions. This differs by state or territory so it’s important to check with your local government unit.
Finding the right financing.
Home construction will require sufficient funds. Many people will have savings intended for this project. But the reality is that more people don’t have sufficient funds to finance home construction. The solution is to get a home construction loan.
Construction Home Loans. When you are constructing a house, you will require a construction home loan for proper financing. This type of loan is arranged diversely compared to a standard home loan. In construction home loan, the lender will determine the total amount you need for the entire construction. The funds will be released in periodic payments (known as draws) directly to the builder at the conclusion of each specific stage of the construction.
When applying for construction home loans, the lender will require your detailed plan with complete costing. The assumed value of the property will be based on the estimation of costs that you will provide along with the construction details.
The home construction process is expensive and it can go more than anticipated. You will want to save in areas possible. Look around to get the best price ranges on materials to be used. Acquire multiple quotes and compare prices. Need assistance? Talk to an Intellichoice mortgage specialist today.