Building your next dream home in Geraldton
/Thinking of your next dream home? Looking to build instead of looking around – which could feel like forever? Getting a block of land and building – or knocking down and rebuilding – is fast becoming a popular option for new Geraldton residents. So here are some tips and insights into how to build your next dream home in Geraldton – and avoid some of the more common mistakes! Here’s your first step:
Get a building consultant on board
Get in touch with your nearby builder or tradie mates who will connect you with one of their building consultants. They'll arrange a meeting to chat about your building plans. Your consultant will be there to assist you throughout the entire process of your building project. Alright, let's kick things off by figuring out the type of home you're looking for and the size you're planning to build. This will provide the building consultant with a general idea of your anticipated budget. Remember – you will need at least 5% deposit before approaching lenders (though 20% is ideal, we know that cost of living pressures and land prices make this a tad impractical!)
Getting mortgage pre-approval
Shopping for an ideal block of land can take time. That’s why you should get all your ducks in a row (financially speaking) by getting pre-approval. Instead of taking out a loan for a specific piece of property, pre-approval gives you an amount the bank is prepared to give you when you find your perfect block or block and land package. You’ll be given three to six months of pre-approval. When you find something that suits, you contact your bank and put the settlement into motion.
Assessing your block of land
You need to figure out if your block of land is suitable for your needs, fits within your budget, and will accommodate the home you’re trying to build. Having a block of land in the middle of nowhere may cost you more in trying to connect utilities; as well as driving long distances to get to shops, schools, and doctors. Perhaps a cheaper block now may have infrastructure come with it in the years to come? You also need to assess risks such as extreme weather events, fire, flooding, and cyclones. You’ll also want to conduct soil and groundwater assessments. Your building consultant should also advise you on zoning and council restrictions, which may prevent certain structures from being built.
Choosing a builder
You need to do your homework when choosing a builder. Your consultant can help, but you’ll need to interview different builders first. A good builder will work with you instead of giving vague or evasive answers. They’ll also put you in touch with other clients so you can get a well-rounded view of how they work. Your builder will need to have the right certifications and insurance before they make your short list. Your builder will be the linchpin to a successful home building project.
Don’t accept the first quote!
When looking for builders, materials, and contractors, never accept the first quote or get only one quote. Shop around. Construction is competitive and you can use one quote as a bargaining chip against other suppliers or trades. Haggling may feel uncomfortable, but it could save you thousands of dollars.
Stick to the plan
If you change your mind, you’ll not only upset your builder, his subbies, and your consultant, but he’ll also charge you for the privilege of accommodating these changes. They may have strict timeframes to work with, which means they’ll have to complete other jobs first before they attend to yours. This can add 20% premiums to the work, which can obliterate your budget and leave you out of pocket. If you need time to cross every T and dot every I before signing off on a plan – give yourself that time. Make sure you’re happy, your builder knows what to expect, and that the only cost overruns are accidental and not intentional. The longer your build takes, the longer you are paying for rent or alternative accommodation, too! It all adds up.
Remember to consult professional financial advisers before gaining any type of major credit product, such as a mortgage.
