Browse Forums Building A New House 1 Aug 08, 2017 9:28 pm Hi, We're relatively new to Australia, having migrated here earlier this year and maybe I'm being a bit foolish, but we're already thinking about building our first home. The way I see it, I'd rather pay my own mortgage than someone else's. I secured a land in the upcoming Newgate Estate in Tarneit. Since the land doesn't title till end of next year, we have the option of waiting out till mid of next year before getting into a contract or start getting fix price quotations right now, locking onto a price. With prices of houses rising every quarter, or even before, the latter sounds like a better choice. What has me torn is how much of a luxurious build/inclusions we want to go forward with. For example, we love floorplans that fit on our land from Henley, Porter Davis, and Boutique Homes and are getting quotations prepared for them. From the looks of it, my current borrowing capacity covers us for the payment of the land + build, with the added benefit of being able to save a larger deposit over the next few months before the land titles... Question is; is it worth it stretching out your budget to go for a luxurious build than a standard one that could save you some serious dough? For instance, the Henley plan I loved is from their Henley series, and another from their Henley Reserve series. However, there is another plan from their Henley Essence series which seems to tick off all the right spots as well. Even with the Essence Luxury Upgrade at 10k, it is considerably cheaper than the other options. Similarly, Boutique Homes' designs are superb and I loved their build. But I'm sure there are a few HomeBuyers' designs that will meet all the right requirements as well. Moreover, is it really worth it to lock in on a contract this early on? Prices will probably go up, but I may be able to make more of a proper decision down the line based on how much I actually have saved up in the next few months. Any first home buyers' here that can share their wisdom! Best Regards. Re: First Home - Play it safe of stretch the budget? 2Aug 08, 2017 9:33 pm It will cost you way more then you expect, so I would be wary of spending all my money upfront on a 'fancy' house, because youll find heaps of unexpected costs down the track. I budgeted 30k, 15k for deposits and 15k for furniture/landscaping.. I'm moving in next week and have so far spent 80k over the last three years on this house, and haven't finished landscaping or furnishings yet.. Re: First Home - Play it safe of stretch the budget? 3Aug 08, 2017 9:37 pm aloenyx It will cost you way more then you expect, so I would be wary of spending all my money upfront on a 'fancy' house, because youll find heaps of unexpected costs down the track. I budgeted 30k, 15k for deposits and 15k for furniture/landscaping.. I'm moving in next week and have so far spent 80k over the last three years on this house, and haven't finished landscaping or furnishings yet.. Yeah, that's what I'm concerned about... Unexpected costs. I am aiming for a high budget upfront with a little bit of a cushion amount. Hopefully I'm planning it out right. Deciding on the builder/series is one thing, but the biggest decision would be to decide on either waiting out a little before getting into a contract, or fix the costs right away! Re: First Home - Play it safe of stretch the budget? 4Aug 08, 2017 9:44 pm Just beware some builders will sting you with a price rise if you don't start building in a certain amount of time after signing contracts, so you may be penalised even if you lock in early.. and youll probably change your mind a million times. I had an extremely long wait (about 18months till land settled), sometimes wish I hadn't locked in so early, as I had more money closer to settlement but had already locked in my upgrade/colours/pricing. First Home - Play it safe of stretch the budget? 5Aug 08, 2017 9:51 pm Why build? You get far more surety out of buying an established home, and more variety too. As others have said, building will cost you more in money and time than expected unless you know how to keep a rein on the process of getting to your outcome. Unfortunately by asking the question you have, I suspect you could be one of those that will be drawn in by the temptations of adding a little here and a little there. Re: First Home - Play it safe of stretch the budget? 6Aug 08, 2017 9:53 pm aloenyx Just beware some builders will sting you with a price rise if you don't start building in a certain amount of time after signing contracts, so you may be penalised even if you lock in early.. and youll probably change your mind a million times. I had an extremely long wait (about 18months till land settled), sometimes wish I hadn't locked in so early, as I had more money closer to settlement but had already locked in my upgrade/colours/pricing. Thanks for your input. It's really invaluable. Re: First Home - Play it safe of stretch the budget? 7Aug 08, 2017 9:53 pm I think you will find that most builders wont lock in a price now and not increase it before your ready to build at the end of next year. New designs might also be released while you're waiting for your land to title. Re: First Home - Play it safe of stretch the budget? 8Aug 08, 2017 9:59 pm arcadelt Why build? You get far more surety out of buying an established home, and more variety too. As others have said, building will cost you more in money and time than expected unless you know how to keep a rein on the process of getting to your outcome. Unfortunately by asking the question you have, I suspect you could be one of those that will be drawn in by the temptations of adding a little here and a little there. We want to build as it'll be our first home and we'll get to pick and choose things as we move along. I understand the process can be daunting and extremely overwhelming, but I'm sure we'll get through it without issues. As far as the question goes of being drawn in by temptations, I don't know why you would think that? My wife and I have already discussed it in detail and we're going to stick with most of the standard inclusions during the selection process and not get tempted by options that will cost us additional. We're mainly going to stick with the standard floorplan with minor tweaks, if any, to the plan to avoid additional costs as well. Our budget fortunately allows us to consider builds from the likes of Henley or Boutique Homes, but I've always led life with a little bit of caution, and this here certainly is not a small decision. I probably wouldn't have considered Henley over Henley Essence had it not been due to a few inclusions in the Henley series that add value to the place. Furthermore, the floorplan that we're interested in, is not one of the pricier ones. Re: First Home - Play it safe of stretch the budget? 9Aug 08, 2017 10:02 pm NicMac03 I think you will find that most builders wont lock in a price now and not increase it before your ready to build at the end of next year. New designs might also be released while you're waiting for your land to title. I thought that too originally, but I've been talking to a few builders and they are offering to lock price right now, with validity upto 18+ months. Two of them said they'll charge $500 per month after that, capped at 3000, if the land title gets delayed further than 18 months, which doesn't sound too bad. New designs may be released, true... Re: First Home - Play it safe of stretch the budget? 10Aug 08, 2017 10:13 pm msalmank NicMac03 I think you will find that most builders wont lock in a price now and not increase it before your ready to build at the end of next year. New designs might also be released while you're waiting for your land to title. I thought that too originally, but I've been talking to a few builders and they are offering to lock price right now, with validity upto 18+ months. Two of them said they'll charge $500 per month after that, capped at 3000, if the land title gets delayed further than 18 months, which doesn't sound too bad. New designs may be released, true... Wow that sounds pretty good. When we signed our contract we had about 3 mnths to begin the build or they would charge admin fees. Good luck with your decision! Re: First Home - Play it safe of stretch the budget? 11Aug 08, 2017 10:21 pm NicMac03 msalmank NicMac03 I think you will find that most builders wont lock in a price now and not increase it before your ready to build at the end of next year. New designs might also be released while you're waiting for your land to title. I thought that too originally, but I've been talking to a few builders and they are offering to lock price right now, with validity upto 18+ months. Two of them said they'll charge $500 per month after that, capped at 3000, if the land title gets delayed further than 18 months, which doesn't sound too bad. New designs may be released, true... Wow that sounds pretty good. When we signed our contract we had about 3 mnths to begin the build or they would charge admin fees. Good luck with your decision! Thanks mate! Some of the builders that I talked to do 12 months max, but some of them said they'd get extension if needed as well. Especially if I go with their financing partners... Re: First Home - Play it safe of stretch the budget? 12Aug 08, 2017 10:53 pm I wouldn't be planning to stretch until you understand some of the additional costs. There is a link below that shows the additional costs for a house in the Werribee area around 5 years ago without spending up on extras What will It cost You will need to add in inflation plus any expensive extras. Don't forget that intrest rates are fairly low. . . .how would you cope if the rate goes up 2-3% The Harder You Try - the Luckier You Get ! Web site http://www.anewhouse.com.au Informative, Amusing, and Opinionated Blog - Over 600 posts on all aspects of building a new house. Re: First Home - Play it safe of stretch the budget? 13Aug 09, 2017 6:23 am msalmank As far as the question goes of being drawn in by temptations, I don't know why you would think that? My wife and I have already discussed it in detail and we're going to stick with most of the standard inclusions during the selection process and not get tempted by options that will cost us additional. We're mainly going to stick with the standard floorplan with minor tweaks, if any, to the plan to avoid additional costs as well. Well, good luck with it then. Re: First Home - Play it safe of stretch the budget? 14Aug 09, 2017 6:43 am arcadelt msalmank As far as the question goes of being drawn in by temptations, I don't know why you would think that? My wife and I have already discussed it in detail and we're going to stick with most of the standard inclusions during the selection process and not get tempted by options that will cost us additional. We're mainly going to stick with the standard floorplan with minor tweaks, if any, to the plan to avoid additional costs as well. Well, good luck with it then. I'm sorry mate. You made a very good suggestion, might I say. But I've really done my due diligence and am sure on what path we want to take. Honestly, I didn't really pose my question on this thread properly. My main intention was to ask whether going for a simple series like HomeBuyer's or Henley Essence, over. Henley or Boutique has any downsides from a structural/build perspective. My wife & I believe that at the end of it all, it's more or less how you set up the place and settle into it to make it call home. If you can enjoy it, that's something! Re: First Home - Play it safe of stretch the budget? 15Aug 09, 2017 6:47 am bashworth I wouldn't be planning to stretch until you understand some of the additional costs. There is a link below that shows the additional costs for a house in the Werribee area around 5 years ago without spending up on extras What will It cost You will need to add in inflation plus any expensive extras. Don't forget that intrest rates are fairly low. . . .how would you cope if the rate goes up 2-3% Thanks for sharing that. I've read it before after coming across it as per the recommendation of my friend Google. We've taken into account extra costs and all. It's the interest rate that has me worried a bit. That's why I'm planning to as high a deposit as I can and keep the mortgage payments as low as possible to allow for inflation down the line. Which got me thinking about the different build options in the first place and led to this thread... For instance, I have received two quotations that I've gone over in detail. One from Mimosa and the other from a very popular builder. The latter is easily over 40k and doesn't include driveway and landscaping in its quote, which Mimosa included. That 40k with interest, with inflation, translates to some serious bucks. Re: First Home - Play it safe of stretch the budget? 16Aug 09, 2017 7:23 am We left an $80k leeway for finishing off. However this is for shed window coverings landscaping and upgrades in flooring. Re: First Home - Play it safe of stretch the budget? 17Aug 09, 2017 11:13 am I would strongly recommend to go for the basic plan then add the upgrades that you specifically want (prior to signing the contract). We initially signed a contract with the 'luxe' version, and when it came to the bank approval they wanted an extra $20k of LMI (money upfront, out of pocket). We basically said no chance. So the builder downgraded our plan to the basic - it was the same build, all the same upgrades we wanted, but missing a couple MINOR things we didnt need like stone benchtop in the ensuite. The difference between the contracts was $30k. :/ I think once they realise you want to spend big, they go to town on you. I'd suggest looking like you're on a tight budget, but saying you want the high ceilings and quality kitchen etc. Re: First Home - Play it safe of stretch the budget? 18Aug 09, 2017 11:28 am You need to price the upgrades before you fall in love with them, otherwise you'll be incredibly disappointed at contract. Every single thing in a display home is pretty much an upgrade. You can still have a nice build by cherry picking what is important to you. Not everything has to be premium. We had a very long laundry list of upgrades, and we knew the prices before we went into the showroom and selected everything. No surprises on the day, or at contracts. You also need to cover the following costs that aren't included in the base price house: Site costs Letterbox Fencing, driveway (if not done by developer) Curtains / blinds Landscaping inc. any retaining walls. Our site costs were off the charts, but we were expecting that because of the complicated site. I expect our landscaping will come in at approx 80k (paving, concreting paths, retaining walls, rockery, plants, turf), but that will be done progressively over a few years. We'll also do as much as possible ourselves. Re: First Home - Play it safe of stretch the budget? 19Oct 19, 2017 4:57 pm Hi msalmank, I was also in a similar position to you. I moved to Australia early last year, and we were thinking whether to buy or build. Finally we decided to build a Henley Essence home; basically there isn't any structural difference in the homes (all have the 50 year structural guarantee) but the upgrades are better in Collection & Reserve. We also wanted to build a 2 storey house, so our final decision was based on a lot of factors, and cost was one of the primary ones. 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