Building your first home is a dream for many of us, however it can also be quite a daunting task, especially if you haven’t done it before.
There are a few simple steps we can help with if you are thinking of buying a block of land and building a new home in Western Australia.
With a little bit of simple guidance you will be throwing a house-warming party before you know it!
The Buyers Process
STEP 1 - Research
Researching where you want to live and the sort of house you want to build, together with your budget, are the first steps in making your dream come true. Choosing the location of your block is super important, taking into particular account what types of amenities you want to be near and make sure you have a clear understanding of your budget and know exactly what you can afford when building. Living in area you love is one of the huge benefits of buying land and then building. At first glance, you may be attracted to proximity to the beach or a beautiful view. Consider the following to ensure you make the best purchase decision: Services – what services will you need now and in the future? Check if the area has adequate child care, schools, medical services, shopping and public transport. If you’re buying in a brand new area, find out when these essential services will become available? Access are there roads going in and out? Before you go any further, it’s important to establish your budget. When working out your budget you’ll need to factor in extra costs such as conveyancing, state taxes, duties and fees. Speaking to a Mortgage Broker regarding the right type of loan to suit your needs and obtaining a pre-approval at this stage, will make things a lot easier once you find your preferred block of land.
STEP 2: The Contract - signing on the dotted line
The contract signing process has four main steps you need to be aware of: a) signing the contract to purchase land with the land developer; b) contract acceptance by the developer (at this point you usually have approximately 7 weeks to gain unconditional approval); c) appointment of your settlement agent (they guide you through the purchase process and arrange the transfer of land titles); and d) signing the contract to purchase a house with your chosen home builder.
STEP 3: Finance – Apply to your bank
Another one of the first steps is applying for finance, which will require documentation to take to your finance broker or bank to prove your identity, income, assets and liabilities and past tax returns. Make sure you also find out if you qualify for the First Home Owners Grant (it can save you a significant amount of money!). Once you receive unconditional approval from your bank loan documents will arrive for you to sign and your settlement agent will then organise the transfer of land documents.