Podcast

The Ultimate New Home Building Guide: Step By Step Process

Building your dream home can be extremely overwhelming, especially if you are a first home buyer. There are so many different options out there, that it can feel like you are flailing around trying to figure out your first step. Who do you speak to? How do you work all this out?

That’s where Boss Building Brokers come in, and we are going to break down the process to make your homebuilding journey feel like a breeze.

Breaking Down the Building Process

When you picture your new home it can seem like a very long road between now and the finish line. That’s why I tell my clients to break the process down step by step. Looking at one step at a time can make your goal of building your home much more manageable and help reduce the stress on your plate.

Step 1: Understanding Your Budget

The first and most crucial step is getting a handle on your budget. Whether you’re ready to build now or in the future, knowing your finance eligibility is essential.

It’s not just about being ready at this moment, it’s about setting goals and working towards them. Educate yourself on what you can afford, your eligibility, and your deposits. It will help you determine if you should be looking at land and house packages at 800K or 500K. This knowledge will guide your entire process, and help you build your savings to a realistic goal.

Step 2: Choosing Your Location

Once your budget is clear, it’s time to think about where you want to build. Do you enjoy being near the coast, close to schools, or perhaps near friends and family? Consider your future plans, investment potential, and the lifestyle you desire.

Knowing where you want to build and your budget will help you narrow down your options so you can find the perfect block.

Step 3: Finding the Perfect Block

With your location sorted, it’s now about finding the right block of land. Work backward from your budget, ensuring your block size aligns with your financial goals.

Before sealing the deal, don’t forget to check for any hidden costs in your site works. Hidden costs are often overlooked and can significantly impact the overall budget.

This is where I help my clients through the process to ensure nothing is missed before the paperwork is signed, and I thoroughly recommend that you have someone to help you in this step.

Step 4: Designing Your Dream Home

Now comes the fun part – designing your home! Look for builders and designs that match your block’s specifications. Remember, a 15-metre wide design won’t squeeze into a 12.5-meter block. Take it step by step, ensuring everything aligns with your budget and preferences.

Step 5: Securing Your Builder

Once you’ve fallen in love with your home design and are ready to proceed with the quote, it’s time to sign your preliminary paperwork with your builder. This crucial step signals your commitment to move forward with the chosen design and builder. Only sign when you’re happy with the sketch, floor plan, and quote.

Never underestimate the importance of this stage, it’s not just about signing paperwork. Do not hand over funds until you’re satisfied with every detail of the quote, the sketch, and the price breakdown. Take the time to review all paperwork meticulously to avoid any regrets down the road.

Step 6: Building Contracts

With your preliminary paperwork signed and sealed, you’ve given the green light to your builder to commence the real action. The period between signing the preliminary paperwork and receiving your building contract is typically four to six weeks. This duration is crucial for your builder to get your working drawings and building contract ready.

Packed with crucial information, your building contract outlines specifications, working drawings, and adheres to either HIA or MBA standard builders contract norms. It’s this comprehensive document that your bank will need before giving the green light for your finance.

Step 7: Pre-Start & Variations

In the Pre-Start phase, you get to add your personal touch to the design. This is the moment to choose taps, cabinetry colours, and every non-structural detail. Remember, structural changes are a no-go at this stage. Ensure your preliminary paperwork and building contract cover all structural aspects. Pre-Start is your final opportunity to tweak and customise anything non structural before moving to the next steps.

Following Pre-Start, you’ll receive a variation document detailing any upgrades or changes you’ve requested. Depending on the extent of modifications, this phase can take one to three weeks. It’s your chance to review, approve, or make further adjustments to your variation. Once finalised, your builder will update these changes into the final plans and working drawings.

Step 8 : Formal Finance & Settlement

Once the bank has given the green light on formal finance, settlement follows within 21 days after. This is the transactional phase where your land and certificate of title officially transfer into your name. Congratulations, you’re now the proud owner of your block of land! Once settlement has taken place, your builder can start construction once your final plans have been signed off and building permit has been issued.

Step 10: The Beginning of Construction

Construction, on average, takes 10-12 months, from the slab being laid to receiving your keys. The entire building process, from paying deposits to getting your keys, typically spans 12 to 15 months. This usually depends on your finance and land titles.

As construction progresses, you’ll make progress payments. This involves paying for completed stages, such as the slab being laid or reaching roof cover. Importantly, your first full repayment occurs only upon receiving the keys.

You’ve Got This!

And there you have it, a quick run down of the homebuilding process. Remember, the key is to break it down into manageable steps and stay informed.

If you have questions or need a more in-depth exploration of your situation, feel free to book a call with me. As your go-to building broker, my role is to guide you through each step, providing support, advocacy, and a helping hand throughout the entire process.

Stay inspired, stay informed and stay confident on your building journey!