Howdy doody Home One community
So just a little background, I’ve been considering buying my first home over the last 16 months within the Newcastle area. Throughout this process I started to gain a much better understanding of the market and good area’s around the region, but have had a bit of trouble finding a place that would suit my needs.
Now unfortunately 3 months ago when I was in the thick of going to open houses my partner kind of took me by surprise said she wanted to end the relationship and move state. This honestly has been a big personal blow for me but now starting to finally move past some of it, I’ve taken a step back to consider what I really want for the foreseeable future.
My partner had heavy influence on our original reequipments which lead us looking at properties closer to the CBD due to where she worked and her lifestyle preferences. Although I had no issues with this, I was turned off by the fact that house prices increase significantly the further into Town you go. So, the houses we were looking at were generally older, dark and not very accessible. The main problem here is I’m visually impaired (legally blind actually) and wasn’t feeling so comfortable with a lot of the “fixer uppers” we were looking at. I’m a hard worker and don’t mind putting in effort into a house but my sight limits the kind of jobs I can do and I’ve heard all kind of wild card stories when buying existing homes. Who knows what I’d have to do/pay someone to do.
While I’ve been looking I had a good friend secure a block of land about 20 minutes out of town (Cameron park) when the intention to build. When I asked him a bit more about it, there appeared to be some interesting points he brung up that really made me think that building a house might be more suitable. Mainly due to the flexibility to achieve an accessible home design and can implement any adaption for myself into the house instead of trying to tack onto an existing house.
So at this point I’m just tyring to lay my finances down and work out if this is something I can do or not.
Timeframe - hoping to try and get this done within 2018, but the worlds not going to end if I don’t hit my .timeframe. More of a guide.
The idea is to build on a pretty firm budget with the idea to essentially go with a base design, upgrade anything that can’t be done efficiently over time (EG ceiling height) and save money by doing upgrades and work myself over the first few years of living the property. I have family friends (a bit older than myself, I’m 28) who build in the same area with this philosophy a few years ago and I believe it is a bit of extra work but worth it. I’m not in any big hurry and as long as the house is “liveable” at the start, I’m happy chipping away.
Current savings/Deposit: 55K
Currently pre-approved: 500K (I believe I may be eligible for more but would only cross that road if it is absolutely required, half a million dollars is a lot of debt for a young simpleton like myself)
Expected saving till guesstimate build date: $9600 @ $400 a week currently achieving)
Expected tax back before build: 10K (forgot to claim tax free threshold this year, woops)
Income: $75K AFTER tax (roughly $1550 in pocket weekly)
First home builder/buyer: 10K + exempt from stamp duty.
Okidoki so here is where I need some insight/advice/guidance. I’m at very initial stages of this process and obviously need to speak to some builders and professional to get a clearer idea of prices but online is never a bad place to start.
Between a financial adviser and builder would i be able to confirm if I can get this done on my budget or there are too many variables and I’ll just have to bite the bullet, get a block and soil tests done?
Land: 240k-260K (budgeted for 260K)
Build example: base price $289K (McDonald Jones home Milano 16 - Saw the display home, loved the design but obviously open to different options as not sure i can really afford this?)
Upgrades: $5k ☹ (this will probably go into the promotional upgrade package most volume builders offer as they seem very good value)
Contingency/unforeseen: $30K (This is my biggest point of unknown. The base price for a house does seem to include site fee budgets for 30K but the majority of posts I see seem to suggest wack another 30-50K on top of the base price for a house to consider for sloping blocks or if you hit rock ETC)
Although I think my calculations seem OK for a rough estimate I don’t have a lot of personal resources to pull on here for information.
When going to Display home I was getting some mixed opinions on my budget from the reps.
The other financial factors are obviously paying rent and a mortgage while this is being build. All my calculations seem to suggest once the bank has release the full amount for the builder I’ll be at 50% of my income which is quite high financial stress. I don’t have dependants, debt (outside hecs) or any large expenditures so I believe given a estimate of 6-8 months in this situation I should be able to cope just fine.
Any information would be greatly appreciated. I’m sure there’s plenty I’m not thinking of or haven’t mentioned and would really appreciate some one with any experience or in a similar situation (budget/new to building) who could lend any advice.