Building your first home

You may decide that rather than buying an established property as your first home, it would suit you better to build. 

Building allows you to customise your home from the outset, creating a property that perfectly suits your needs without having to renovate. 

You’ll probably have lower maintenance costs on a newly built property than an older home and you may be able to incorporate energy and water efficient features that save on utility bills. 

In addition, government grants are more widely available on newly built properties. Check what’s available in your state or territory. 

But there are some points to bear in mind if you’re planning to build: 

• Building your own home may take longer than finding an existing property to buy. There may be delays due to bad weather or council approvals taking longer than expected. 
• You may need to factor in the cost of paying rent while you’re building.
• Standard building packages often include only basic fixtures and finishes. You may have to pay more for higher quality options.
• In some cases, particularly when you’re buying off-the-plan, there may be charges for services such as site preparation, laying foundations, and connecting to water and electricity mains. Make sure you’re aware of all the extra costs and have funds available to pay. 

If you’re building, it might be worth considering a construction home loan rather than a standard mortgage. These loans allow you to draw funds progressively as needed up to an approved credit limit. Interest is charged only on the portion of the loan you’ve used. The lender may be able to make payments directly to the builder. 

Quick tip: Confirm the builders and contractors you’re hiring are licensed and insured. Keep a close watch on construction to make sure they are delivering the high quality results you expect. 

TO FIND OUT HOW RAMS CAN HELP EASE YOU THROUGH THE PROCESS, GET IN TOUCH WITH YOUR LOCAL RAMS HOME LOAN EXPERT OR DROP IN FOR YOUR FREE FIRST HOME BUYERS’ GUIDE.

For more great property advice and tips on buying your first home from RAMS subscribe to The Great Australian Dream property series.

For your free Property Observer eBook from RAMS, 12 tips for first-time buyers, covering everything you need to know when it comes to purchasing property, click here.

Disclaimer: Information in this material is general and does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. You should also obtain independent professional advice relevant to your financial circumstances.