ARE YOU READY TO BUILD A HOME?
If you’re like most people, you dream of building your very own home someday. And it’s an excellent goal, indeed, because not only does a home give shelter, it’s also an investment whose value will grow over time.
But how do you know if you’re ready to build your dream home?
You’ve outgrown your house
Your current place may have been your dream home at some point, but your housing needs have changed. Perhaps you’ve had more children and need more space. Maybe you own an older home and the maintenance costs are starting to pile up. Or maybe its design and aesthetics are stuck in the past and you want a more contemporary home.
Whatever the reasons, if you’ve been daydreaming of building a new home, perhaps now is the best time to do so.
You’re tired of wasting money on rent
Chances are, your landlord took out a mortgage to pay for the property you’re renting. And guess who’s paying for that mortgage? YOU.
There comes a time in every renter’s life when they will wish to build their own wealth rather than their landlord’s. When you build a home, you also build equity as you pay off your mortgage. You can borrow against this equity later on to finance other things, such as a new car or a business.
Once you’ve paid your rent, however, you’re never going to see that money again—and your landlord will be laughing all the way to the bank.
You’re financially ready
You may be ready to build a house of your own, but are your finances ready for it, too?
To begin with, ask yourself if you have enough money for a down payment. While you can get a mortgage for as little as a 5% down payment, most experts suggest putting down at least 20%. The more cash you pay upfront, the better the interest rate you get, and the smaller you’ll pay in interest over the life of your loan.
You should also compute your anticipated housing costs per month. This tally should include all home-related expenses, including your mortgage payment, home insurance premium, and maintenance costs. The figure should not exceed 30% of your pre-tax income.
If you’re worried about costs, however, the Federal Government has programs to help make owning a home more affordable.
Those buying their first-ever home can apply for the $15,000 First Home Owner Grant. There is also the recently launched HomeBuilder scheme, which gives qualified individuals a $25,000 bonus (read more here).
On top of all this, Preferred Homes is also giving its own $25,000* construction incentive—even if you don’t qualify for the HomeBuilder grant! Book a call with our consultant to know if you qualify.
You’ve got land
The next big question is whether you’ve secured the land on which to build your home.
Of course, Preferred Homes also offers house and land packages, but if you wish to build a custom home, you’ll need to have the land ready before construction begins.
The shape of your lot determines the layout and design of the home you build, so it’s important to pick the best one possible. If the land you bought is on a sloping lot, don’t fret—as we discussed in a previous blog post, building a home on such terrain is definitely possible.
You should also consider the location of the land you buy. Is it near good schools, business districts, green spaces, and places of worship? Is the land located in an up-and-coming area?
If you love your home’s location but not the house itself, you should consider a knockdown and rebuild.
You’re ready to settle in one place
If you’re renting, you sign a lease for a specific period of time and you can move elsewhere when the contract lapses. Once you’ve built your own house, however, you won’t have that same flexibility.
To really build good equity in your home, you have to live at least 5-10 years in it. That’s why it’s crucial to choose a neighbourhood where your family can thrive and be happy. This also means you’ll have to commit to staying at your current job for the immediate future.
But if you’re ready to settle down anyway, these things shouldn’t be a problem for you.
You’ve got the right builder
Building your very first home is a milestone you shouldn’t entrust to just any builder.
At Preferred Homes, our extensive experience in the building industry has allowed us to help build thousands of wonderful homes for Gold Coast and Brisbane residents.
Our team specialises in designing and constructing custom homes as well. We will work closely with you to craft a house design that meets your every want and need. And unlike other builders who guarantee satisfaction, we put our money where our mouth is. If you are unhappy with our customer service, construction timelines, or build quality, we will pay you $5,000.*
If you’ve answered ‘yes’ to most of these questions, Preferred Homes will be more than happy to build your dream house for you. Get in touch with us today to get started.