Browse Forums Building A New House 1 May 12, 2013 10:45 pm Hey Guys! So i was hoping for a little insight and advice as a first home buyer/builder. The low down: At the end of the year we will have saved around $10k for a deposit and are looking to hopefully build a house and land packaged in Geelong at the Warralily estate (in between Geelong and Torquay). We have come to realise that a 20% deposit is going to take us a LONG time to save at the moment and so the idea of buying an established house and renovating might be a little too far off for our liking. Seeing as the house and land packages often offer such a low deposit starting out. So i guess our second house will most likely be an established renovator. (chime in if i am wrong about the whole deposit thing too anyone!). Mainly we figured that building a HALP would benefit us more financially because we would be able to afford to jump into the property market sooner and save on rent! As opposed to renting for the next 4 years to save for a huge deposit for an established home. As far as building, we are looking to build with Porter Davis with the Regatta 23. Mainly because we felt the floor plan made alot of sense. The 2nd living room (rumpus room) is up the back next to the would-be kids rooms and could double as a study for them and what would be my office (as i am a graphic designer) is the version where the study comes off the living room. I never really get the idea when homes have the second living room RIGHT next door to the main living room? But anyways... each to their own! My main question is about the whole building process and the kind of money we are going to need to have upfront. I know alot of them claim for us to only need like $5k for the initial deposit etc, but in terms of costs i don't want us to get caught out right as we are committing to a build. So what kinds of money would we realisticly be looking at to have to save and be ready to purchase? (Prior to being accepted for a house loan from the bank) Also, this is probably a question for PD, but if i was looking to get the regatta 23, is there options to have either a bath in the ensuite or a larger walk in robe? For anyone building with PD previously, How flexible are they generally and does it come with a hefty pricetag? Any help would be wonderful! Thank you! http://kateandnathsblog.blogspot.com.au/ Carlisle Homes Addison 24 - Warralily, Armstrong Crk, Geelong • Colour: June 1 Tender: June 9 Contract: July 3 • Site Title: Dec 2015 • Site Start: March 1 2016 • H/Over: June/July Re: First Home Buyer - Build VS Buy 2May 12, 2013 11:16 pm http://kateandnathsblog.blogspot.com.au/ Carlisle Homes Addison 24 - Warralily, Armstrong Crk, Geelong • Colour: June 1 Tender: June 9 Contract: July 3 • Site Title: Dec 2015 • Site Start: March 1 2016 • H/Over: June/July Re: First Home Buyer - Build VS Buy 3May 13, 2013 12:48 am do you get different amounts for the first home owner grant for build vs buy? if you don't have 20% deposit then you will have to pay mortgage insurance regardless of whether you build or buy. there would be less risk for you buying established as you will know the value of the property straight up whereas with building you run the risk of a poor valuation and not having the funds to finish the house. with buying you don't really need to spend much when you move in....with building you need to account for washing line, lawn, plants, letterbox, flooring, painting, curtains, driveway, lighting fixtures, security alarms/screens?, aircon/heating? some of these may be included in the building contract but if they aren't make sure you keep track of what you are spending so that you can pay for them after handover as the bank may not allow them to be included in the mortgage. First thing you need to do is find out how much you can borrow and comfortably pay off Re: First Home Buyer - Build VS Buy 4May 13, 2013 7:06 am talk to a broker, they will tell you what you need to save, how much you can borrow etc. we are first home builders, originally we were looking at buying established but with the government grants for new houses going up in sa we worked out it was better for us to build. we figured with building we were paying for what we wanted but if we bought established it would be likely that we would have to do some sort of rennovations costing more money. we only payed a low deposit whilst we had money saved whilst we arent paying rent otherwise we would never have got out of the rental market. if your property that you are building comes back undervalued which it did for us you may be required to pay a higher deposit(as stated above)luckily for us we had enough money saved to add to the deposit but it means there goes money for fences, gardens, curtains etc which we now need to try and save. some people choose to challange the undervaluation of a property but we didnt have time to do that so just paid the extra money asked of us as we were already behind schedule. when you sign your contract to build also if you do go the building option you will sign the contract but building probably wont start for 6 or so months. hope someone who has built and bought established can shed some more light on your question. Re: First Home Buyer - Build VS Buy 5May 13, 2013 8:52 am Our first home was established. Buying established for your first home is a great idea. Honestly there are so many extras with building most of the time its hard to determine the exact cost of your build and the time waiting means you could already be in enjoying your home! Of course if renovations are required Id be looking at how in depth the reno might be....are you moving walls and ripping out kitchens or simply repairing some small things and painting as you go? With a new build you also have to factor in the gardens/flooring/window coverings/fencing?/ letterbox/ washing line/site costs- there's a lot to consider. Re: First Home Buyer - Build VS Buy 6May 13, 2013 8:53 am You may also want to wait till after July if you are going to build. The grant for buying exisiting established house will be scrapped and the grant for building a new house will be increased from $7k to $10k. Re: First Home Buyer - Build VS Buy 7May 13, 2013 4:31 pm Here is a breakdown of what we needed: 1. 1k for builder (initial deposit) 2. 11k for developers deposit + 1k to conveyancer fees 3. Stamp duty & government fees ~5000k 4. Deposit to builder 5% of contract value So, all in all we needed around 30K to get started. Then once the build is complete you need to take into consideration, driveway, lanscaping, telephone connections, insurance etc etc wow, now that i think about that is a lot haha Re: First Home Buyer - Build VS Buy 8May 13, 2013 5:43 pm nickvee Here is a breakdown of what we needed: 1. 1k for builder (initial deposit) 2. 11k for developers deposit + 1k to conveyancer fees 3. Stamp duty & government fees ~5000k 4. Deposit to builder 5% of contract value So, all in all we needed around 30K to get started. Then once the build is complete you need to take into consideration, driveway, lanscaping, telephone connections, insurance etc etc wow, now that i think about that is a lot haha A couple of other expenses that may apply to your purchase - 1. Council Rates - check this with your Conveyancer or Local Authority. 2. Bank fees - loan application, valuation, loan establishment, loan settlement - your broker will be able to direct you to the best deal. Building in Brisbane with Vernal-Corner & Buchanan https://forum.homeone.com.au/viewtopic.php?f=31&t=73636 Re: First Home Buyer - Build VS Buy 9May 13, 2013 5:55 pm Kate, I can't see $10k deposit getting you into a new house, I guess with FHOG your stamp duty and conveyancing will be covered though. How much are you looking to spend total? I just did a quick calcuation on a house and land worth $400000, you will still need $20k as a deposit on the mortgage alone (5%). To be accepted for a home loan you will need at least 5%... also, I have found PD to be very flexible and reasonable, not charging us to move a wall and robe. But the ensuites on smaller houses like the Regatta I would think don't have room in the ensuite for a bath. I know the Montrose wouldn't! Our build: viewtopic.php?f=31&t=64705 Re: First Home Buyer - Build VS Buy 11May 14, 2013 12:17 am We were keen to buy established and hated the idea of building - but after our chat with the mortgage broker it seemed more logical (financially speaking) to build our first home - especially since (NSW) govt has the $15k grant and waived stamp duty for new homes. Our broker basically showed us that if we buy an established property worth $400k - we will end up with a mortgage $10k more than if we build brand new worth $425k (due to stamp duty fees etc.) - and this was not even including renovation costs needed for the established property!! And to top it off he calculated that we will need to give $28k deposit for the brand new home as opposed to $48k for the established home. Needless to say we are now on our way to building I will have to wait awhile to get my swimming pool this way but I suppose that's life hehe Re: First Home Buyer - Build VS Buy 12May 14, 2013 5:43 pm Thanks so much for all the help guys! It is really helpful hearing from a range of different people! It just seems to be so misleading when the builders say "only $5k deposit and you're in your new home!" argh. I just want to know how much! Really all in all i want to get into a place as soon as possible. Which i know is wishful thinking. So i guess majority of you are saying i will still need about a $30k deposit? Is that including the 10K grant? All of these fees you are including with the fences, council fees etc, are they things that are going to be able to come out of the Bank Loan or is that something else i need to ad on? I am hopefully getting a better job soon, so perhaps i will just wack all of my money in our joint account for the next couple of years and hopefully i will have enough! So frustrating, i just want to stop renting and giving someone else my money! It seems like we have mixed responses over which is the cheaper option starting out (i'm not fussed about the long term costs) just the initial "get me into the market" amount. I guess i will just have to go talk to a broker and then talk to the banks to let them know we are interested and see what they think about how long it will be before we can realistically look at it. Thanks guys!!! Keep the comments coming! They are really helpful for a first timer like me! http://kateandnathsblog.blogspot.com.au/ Carlisle Homes Addison 24 - Warralily, Armstrong Crk, Geelong • Colour: June 1 Tender: June 9 Contract: July 3 • Site Title: Dec 2015 • Site Start: March 1 2016 • H/Over: June/July Re: First Home Buyer - Build VS Buy 13May 14, 2013 6:11 pm You are welcome, just be aware the grant isn't paid until the slab is laid, ours was late and we got it when the frame was up...so my recommendation is dont factor that into your deposit... Also fences are not included in what you can borrow, not for us anyways, our bank would only give us what was stated on the building contract minus our deposit, but luckily fences were included in the cost of our land. Re: First Home Buyer - Build VS Buy 14May 14, 2013 8:39 pm We're first home builders, we decided to build on the bellarine peninsula. We found the land was much more affordable here, plus we already have all the amenities like schools etc up and running which was important to us as we have kids of school and pre school age. We've purchased the land and will be bundling the construction with it after July 1st. So far it's cost 15900 (10% land deposit) an allowance of 5k for stamp duty which we may get back/reduced, 1000 initial builders deposit, then we will need to chip in the difference of at least 5% of the contract (which is looking to be about 9k) For that we're getting a 4br 2living on a 512m2 block, and we're still only 10 minutes to go surfing at ocean grove! Re: First Home Buyer - Build VS Buy 15May 20, 2013 4:42 pm staceyd We're first home builders, we decided to build on the bellarine peninsula. We found the land was much more affordable here, plus we already have all the amenities like schools etc up and running which was important to us as we have kids of school and pre school age. We've purchased the land and will be bundling the construction with it after July 1st. So far it's cost 15900 (10% land deposit) an allowance of 5k for stamp duty which we may get back/reduced, 1000 initial builders deposit, then we will need to chip in the difference of at least 5% of the contract (which is looking to be about 9k) For that we're getting a 4br 2living on a 512m2 block, and we're still only 10 minutes to go surfing at ocean grove! So did you buy at Warralily as well or is that a different estate? Also what builder did you go with if you don't mind me asking? So you're also saying all up we will need between 25-30k initially before the home loan is approved. Eek looks like we wont be able to build for a while! http://kateandnathsblog.blogspot.com.au/ Carlisle Homes Addison 24 - Warralily, Armstrong Crk, Geelong • Colour: June 1 Tender: June 9 Contract: July 3 • Site Title: Dec 2015 • Site Start: March 1 2016 • H/Over: June/July Re: First Home Buyer - Build VS Buy 16May 23, 2013 2:11 pm I think your best bit is to talk to a mortgage broker and they will answer all your questions about deposit, costs, and all that stuff. There are sooooo many options, and a quick chat with a broker will break that all down for you and let you know what you can do, and what your time frames are. Re: First Home Buyer - Build VS Buy 17May 30, 2013 1:26 pm Sorry! Missed the reply! No, we're in Curlewis Parks in Clifton Springs/Drysdale (Well Curlewis according to our new address!) It was much more affordable for us than anywhere in Armstrongs creek. We had that much deposit but there might be ways around it (ie. I know if you use PD's broker "choice" you don't have to pay them as much of a deposit to get the ball rolling. Definitely go chat to a broker though, they'll let you know where you need to be Re: First Home Buyer - Build VS Buy 18Sep 06, 2013 2:40 pm staceyd Sorry! Missed the reply! No, we're in Curlewis Parks in Clifton Springs/Drysdale (Well Curlewis according to our new address!) It was much more affordable for us than anywhere in Armstrongs creek. We had that much deposit but there might be ways around it (ie. I know if you use PD's broker "choice" you don't have to pay them as much of a deposit to get the ball rolling. Definitely go chat to a broker though, they'll let you know where you need to be Oh great! That sounds like a nice spot. We didn't think that the Armstrong Creek estates were too bad in land price for what you get! Yeah we are definitely going to talk to some brokers next year when we have a deposit. We have now worked out by June 2013 we will have about $20k. So hopefully that is somewhere for us to start! http://kateandnathsblog.blogspot.com.au/ Carlisle Homes Addison 24 - Warralily, Armstrong Crk, Geelong • Colour: June 1 Tender: June 9 Contract: July 3 • Site Title: Dec 2015 • Site Start: March 1 2016 • H/Over: June/July Re: First Home Buyer - Build VS Buy 19Sep 21, 2013 8:25 pm Hi Katerg88. I was going to build in warralily with low deposit home loan with loan assist. Now that it has the Armstrong creek process it has thrown a spanner in the works. We had the $3000 deal with a builder and has turned out to be a fare bit more then that . Just a suggestion if you surf at o.g then have you looked at the oakdene estate ? Also I haven't really looked into it but the estate near drysdale bellarine something it's called. They have an offer going there for low deposit . Re: First Home Buyer - Build VS Buy 20Sep 23, 2013 1:24 pm Kate I can totally empathise with you about misleading advertising and just wanting to start spending on your own home. It's so difficult to get your head around it all and it really takes loads of research and chats with your broker to know what you need and what you can borrow. If I can give some advice based solely on my own experience it would be: - Take what your broker says with a grain of salt. Remember they are also trying to "sell" you a product (ie the loan) so no matter what they tell you always go back, work out the repayments, do a budget, allow for interest rates rising etc. It's one thing to get approved for the loan but you have to be able to to live with paying it for the next 30 years! - Work out a budget and don't go over. With building this can be really difficult because even those house and land packages you are looking at will probably require some upgrades. Don't forget all the things you will need to add ie driveway, landscaping, fences, lawn, plants, curtains etc. I know it's a hard pill to swallow, but a lot of financial experts say that if you don't have a 20% deposit you shouldn't be buying. Hey - no judgement from me - we don't have 20% and wanted to kind of get in to the market. But it is something to keep in mind - the less deposit you have, the more you borrow, the more insurance you pay on the mortgage, and the more your repayments are. Even though it seems like hell trying to save, try to think of it as another $100 off the mortgage. It's worth it to be able to sleep at night! Anyway, I'm by no means an expert that's all just my opinion/experience. Just try to get yourselves in the best financial position possible and remember that throughout this whole process it's mainly you that has to be on your own side - the broker, builder, developer etc all have their own agenda and they're not the ones who will be paying off your mortgage! My build thread: viewtopic.php?f=31&t=70636&p=1161767#p1161767 Not much in this responce. My suggestion is, what are you looking to build and why. This will all be impacted by the local councils planning scheme. Familiarise yourself… 6 5859 So it looks like we finally have some movement on site! Definitely later than expected, but I'll take any progress at this point. I'll drop by over the weekend to get… 5 27689 hi guys. Please be nice. First time home builder in Qld. I would like some feedback please on whether I should build my granny flat first before my main house at the… 0 4587 |