Browse Forums Building A New House 1 Feb 04, 2013 8:06 am So we have finally decided to take the plunge and start the journey to build our home. The first stage of the process is the finances followed by selecting the block of land. We are already speaking to a mortgage broker to work out how much the banks/credit unions are willing to lend us. We used the online borrowing power calculators and they came back with some ridiculous high figures with which we are not at all comfortable. In the meantime we are looking at possible blocks of land which we might be interested in , trying to find the block size, price etc.Is it okay to negotiate with the broker for the land price or is it considered rude? There is this block of land, which we like but it 4-5k a little above the budget, which we have for the land. We are looking at a H& L price of 350-360k for a 3bed house on a land size of around 480-490sq.m. Is this a good budget to enter with for a first homebuyer? We have around 40-45k saved for the deposit for the balance we need to take a loan. Hope we are able to get that. Are there any other extra costs, which we should consider, I know there will be stamp duty, land transfer fee, solicitor fees, bank processing fees & site costs.How much should we budget for these extra costs? Sorry if my questions sound stupid or naive. Regards mpp Re: Building the first home 2Feb 04, 2013 10:48 am I am fairly new to all of this too, but those figures seem low? 350/360 for house & land - is that right? or is it 30/360 for ^^ + the rest?? Im not sure about bargaining. We didnt. But we were happy with the price of the land we bought. (we've just put a holding deposit on our block). If your are first home buyers there will be no stamp duty too? Re: Building the first home 4Feb 05, 2013 7:05 am Forg Room2Breathe I am fairly new to all of this too, but those figures seem low? 350/360 for house & land - is that right? It completely depends on where you are; mpp, where are you looking? @ Room2Breathe- Yes it is 350-360k for a house and land package @Forg- we are looking at Geelong. Is this a really low figure? then we need to reconsider and wait a bit longer as we do not want to go overboard with our loan repayments at the moment by increasing the budget. Mpp Re: Building the first home 5Apr 23, 2013 11:49 am There really isn's such thing as a right amount to spend... Its very indvidual and should always be only what you can afford to repay, not what is expected or what everyone else is doing. Everyone's situation is different, first home buyers included. Put your blinders on with all that, and just look solely at the repayments. You don't want your first home dream to turn into a nightmare noose around your neck! I dont know much about the area that you are looking to build in so I cant comment on what is a low or high price, but what you might want to look at is, what that $360k actually includes. It may not include the upgrades or finishes you want or any siteworks allowances. Best of luck, keep your eyes open... and dont fall in to the (very easy) trap of getting carried away with wants... they quickly add up, and you begin to justify it more and more. Anyway, Building is a dark mistress who tempts! haha. Do what YOU can comfortably afford and you will enjoy everything that much more Thread: viewtopic.php?f=31&t=66299 Slab: 16/6/14 Frame: 4/7/14 Roof: 22/7/14 Lock Up: 20/8/14 Fixing: 26/8/14 PCI: 9/10/14 Handover: 20/10/14 Re: Building the first home 6Apr 23, 2013 12:21 pm Wise words deluxes - we got tempted, but not too bad, we forgo'ed recessed ceilings and walls, bulkheads and fancy cornices. When was the last time you looked up when visiting someone's home? Re: Building the first home 7Apr 23, 2013 12:27 pm donna61 Wise words deluxes - we got tempted, but not too bad, we forgo'ed recessed ceilings and walls, bulkheads and fancy cornices. When was the last time you looked up when visiting someone's home? ha! Thank You, unfortunately these words come from experience. Got very carried away and the first 18 months of my new "dream home" were being chained to it and not being able to finish it because of how much was spent. If you cant enjoy it and live your life, it's just not worth it. It all worked out fine, but some major adjustments financially had to happen (long story and 9 years ago) but it wasnt fun and if i can help anyone avoid the same trap, I will! I 100% agree with you on the ceilings! Jeez they look great, but when you look up at them (rarely as you said) and just see $$$ signs and not gorgeous raised ceilings, you know it wasnt worth the spend! Thread: viewtopic.php?f=31&t=66299 Slab: 16/6/14 Frame: 4/7/14 Roof: 22/7/14 Lock Up: 20/8/14 Fixing: 26/8/14 PCI: 9/10/14 Handover: 20/10/14 Re: Building the first home 8Apr 23, 2013 2:29 pm Congrats Mpp. Building (particularly your first home) can be a long, frustrating experience - but ultimately a very rewarding one. As other have pointed out, we can't really comment on budget because everyone has a different financial situation. However it seems that you have a good idea about what you can afford. I always found playing around with loan repayment calculators and punching in interest rates like 10-12% to see if I could still afford my repayments, helped put things in perspective. You need to also think about whether this home is going to be a stepping stone, or something long term. If the former, be sure not to over capitalise, otherwise you will find it difficult to flip @ a profit in the short term. We did this with our first home - built a modest place 30kms from the CBD. 3 years later, after building equity, sold at a tidy profit and are now building our 'Forever' house 9km from the city. A cost that you will likely incur and hasn't yet been mentioned is Lender's Mortgage Insurance (LMI). You will have to pay this if you are borrowing more than 80% of the property value. In my experience I have found bank valuations to be quite conservative and more often than not come back undervalued - meaning you need to stump up more of a deposit or pay a higher LMI rate... Good luck! A quick update, we didn't have site start before Easter. Summit can't seem to give me a day when they are scheduled to begin, so I'm left with a vague "within 10-20… 4 26724 Can anyone give me any onfo on New Homes WA? Good or bad, hopefully good just need to know if my choice was good or not? Thanks ❤️ 0 8855 That is a really good attitude Akin to you catch more flies with honey than vinegar. I do enjoy watching that tik tok inspector from Victoria but he does go a little… 12 81766 |