What does your dream Australian home look like? Many people go their whole lives never finding it, but it could be right around the corner. It could be on that empty piece of land down the road. All you have to do is build it.
Building a home can take some time, and there are a few expenses that you have to take into account.
However, building a home can take some time, and there are a few expenses that you have to take into account. It can end up being cheaper than buying an existing house, but you'll still have to budget for more than the cost of the land and the build.
What costs do you need to consider when constructing a new home in Australia?
Building your dream house means paying for every single aspect of the project. This includes:
- Buying the land.
- Stamp duty on your property.
- Loan settlement costs from a previous mortgage (or transferral fees).
- Cost of preparing the site for a build.
- Planning fees, including going to council for approval.
- Finishing costs (account for approximately 25 per cent of your total budget).
- Cost of the build itself.
Some of these costs might end up being small, but they certainly add up. If you don't have a home loan adviser who understands every aspect of a build, and how you'll need to structure your loan to keep on top of necessary payments, you could end up having to go to a third party lender for more financial help.
If you buy a particularly tricky plot of land that needs a lot of site preparation before the build begins, for example, it could cost you around $40 per square metre to grade. That includes removing surface rocks that would get in the way of laying foundations, ensuring the topsoil is sufficient to lay a foundation on, and flattening the entire site.
What does a construction loan include?
Getting a loan for home building is more than just taking out a regular mortgage from a bank or broker. You should only work with a lender with experience in providing construction loans, and that's where Mortgageport comes in.
If you decide to build your own home, you should take out a construction loan from Mortgageport, not just a regular bank loan from a lender who doesn't understand every aspect of home building.
With the ability to have a 100 per cent offset account and the option to split your home loan up to four times, Mortgageport is the obvious choice for a construction loan. Our Loans Consultants will customise the loan to your specific needs, so it works for your build. For more information, get in touch with our team today.