When you’re ready to buy property to build your home, it’s important to be aware of what not to do in the process. That way, you can avoid making any costly mistakes that could cost you time and money in the long run. The New Home Builders In Canberra are aware of these mistakes, but only if you consider consulting them would you be saved.
For example, it’s generally best not to jump into buying before all of your plans have been drawn up and approved by all necessary parties—if this step is skipped, you may find yourself having to bring in expensive contractors at a later date, when they may already be too busy to accommodate your schedule or even willing to take on the project at all.
Knowing what not to do when buying property to build your new home will save you money and heartache in the long run so that you can start living in the house of your dreams sooner!
Do not buy in the flood zone.
Ask your builder if he is a licensed and registered contractor. Find out what type of experience he has. Ask for references from previous clients, and make sure that you inspect their homes when you visit them.
You will be living in your home for at least several years; it should last that long. If a new home builder does not have much experience, ask him about his ideas for making future renovations to add square footage or amenities.
But before signing any paperwork, read your builder’s contract carefully and know exactly what you are buying.
Avoid teardowns or dilapidated properties.
One of the most expensive mistakes New Home Builders In Canberra can make is purchasing a teardown property or one that needs major renovations. While renovating a property can be done on a tight budget, tearing down and building from scratch is almost always prohibitively expensive for new home builders.
If you’re able to build in an area where no one else is doing it and then sell at market value (or higher), you’ll probably do well—but even if your real estate agent tells you that’s possible, it isn’t necessarily true.
It’s better to wait and find property in decent condition with a reasonable price tag than spend tens or hundreds of thousands more than necessary on demolition and construction when there are plenty of other options available.
Buy when you can afford it.
Most people think they need a down payment when buying a house. This isn’t exactly true. To buy any home, you will likely be required by your bank or lender to have equity in it. The equity is based on how much you owe on your mortgage compared with how much your house is worth.
Typically, it should be 20% or higher for most mortgages (but each lender can set its own requirements). The larger your down payment and equity, however, often means lower monthly payments and shorter loan terms, which can save money over time.
If the building isn’t in the cards right now, there are ways to build home equity without actually buying a place.
Conclusion
Don’t build your home on an unstable foundation. If you want to build a strong foundation for your new home, consider what makes a great New Home Builders In Canberra.