When building your new home, it may not be all plane sailing – especially if you take everything you are told at face value. The building industry is highly competitive, which can lead to some reps, builders or companies playing less than fair. For a better experience of the market, avoid the following mistakes when building your new home.
Financing Pitfalls
There are a number of stages you will go through when building a new home; however, financing is an ever present concern. Before you even begin construction, your budget may have already been exceeded due to misjudgments that are commonly made by inexperienced buyers.
The first thing you need to be wary of is underestimating site work costs, which are usually the result of a sales rep playing fast and loose with the numbers. To avoid this potentially costly mistake, ensure that you are provided with a detailed site works provision sum. If the costs seem too low or you simply don’t know what you are looking at, seek out a second opinion before signing a contract. When it comes time to secure finance, shop around as there are a number of potential lenders for home builders. It is also important to carefully read the terms of any finance agreement before settling on a provider. You should meet with your own bank and compare deals with other mortgage brokers to make sure you get the best deal for your needs.
Site & Construction
A number of factors are considered when it comes to how long it will take to complete your new home. Unfortunately, many companies spread their workforce too thin in an attempt to deliver on unrealistic timeframes. It pays to find out how many builds a company is working on at any given time, as well as requesting references from previous clients. Don’t fall into the trap of overestimating site space based on dimensions you are provided by building companies. There is more than one way to calculate area. If you do not understand what each calculation represents in terms of space, consider asking for advice from a friend or family member who works in construction.
Whether you are opting for a ‘turnkey’ or ‘design and build’ home, it is important to think about fittings. In the case of the former, you will want to ensure that the property specifications are truly ready to live in. That means features such as TV antenna, floor and wall coverings, landscaping etc. are included in the initial build. Some companies may only include a limited number of features, leaving you to take care of the rest. You can also end up overspending with your own design by adding way more fittings that you actually need.
If you are buying as an investment and do not plan on settling in a property for life, choose a property design and location that maximizes your potential return. Building in a thriving, popular community is a sound investment. However, if you go overboard when building your new home it will take a chunk out of your profits when you rent or sell. Stick to your budget and aim for a build that matches similar properties on the local market.
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