If you’re a first-home owner building a new property, you may be entitled to the first-home owner grant (FHOG). The amount for this one-off grant varies by state.
You may also be eligible for stamp duty exemptions or concessions, so be sure to check what’s available in your state. Remember, stamp duty can run into the tens of thousands of dollars, so an exemption or concession could save you a lot of money.
You can find details about state-specific incentives for first-home buyers here: http://www.firsthome.gov.au.
DIY vs Using a contractor
Being a DIY owner-builder can potentially save you money. However, mistakes may be time-consuming and costly if you don’t know what you’re getting into.
Before going down this road, check out the requirements for becoming an owner-builder with your local building authority. Keep in mind you’ll be responsible for obtaining building permits, supervising or undertaking the building work, and ensuring the work meets building regulations and legal codes. You’ll need to know how to:
If it all seems too hard, it’s probably best to hire a contractor. These professionals can take care of the entire building process for you.
Types of builders
Tips for choosing a builder/contractor
Financing your new home build
Most home builders require a construction loan. Construction loans are different from regular home loans. Instead of getting the money in a lump sum at settlement, the lender releases portions of the loan in stages as the property is built.
During the construction phase, you usually pay interest-only. Once the property is completed, the loan converts to principal and interest.
Building your own home is exciting and nothing compares to finally seeing it finished! If you’re ready to get started, talk to your mortgage broker about the right construction loan for your needs. They can help you find a competitive option that fits with your particular construction plans and maximises any grants you may be eligible to receive.