Newspaper article The Morning Bulletin (Rockhampton, Australia)

The Benefits of Building a Home

Newspaper article The Morning Bulletin (Rockhampton, Australia)

The Benefits of Building a Home

Article excerpt

TO BUILD or not to build; that is the question.

The idea of building your perfect home can be quite appealing for some people but the process can sometimes be daunting and complicated, even for those who have done it before.

But it doesn't have to be if you do your homework, plan thoroughly and realise that everything may not go exactly according to that plan.

There are many benefits to building your own home.

The fact that you don't have to wait for a suitable house to come on the market means you may get your home sooner.

You get to design the house exactly the way you want it, so no more putting up with bad paint choices and dated tiles.

And you may even save money, as building can sometimes be cheaper than buying a new home.

Construction of a house can usually be divided into seven steps: buying the land and paying a deposit to the builder followed by the base stage, frame stage, enclosed stage, fixing stage and finally, the practical completion.

This corresponds with seven stages in your lending process starting with the initial land purchase and six progressive payments from your construction loan to your builder right up until your house is complete.

Because you are paying the builder in instalments you will only be paying interest on the amount that has been drawn down, meaning you will not pay the full repayment amount until the builder has received the final payment.

If you decide to build, your lender will require a copy of your fixed price building contract, specifications and house plans.

Any changes you make that increase your fixed price contract amount after your loan has been approved will need to be paid from your own funds.

This is because to make any changes to the loan after approval, the lender would need to fully assess the deal again and this could cause significant delays.

Partial contracts can also be tricky and some lenders may be more conservative when approached about these types of deals.

This is where people have hired contractors to complete some of the work such as landscaping or fencing and want it to be included in the construction loan amount. …

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