Everyone knows the Great Australian Dream is to buy a property of your own, but there’s something to be said about building your own dream home.
Whether you have major renovations in mind or are planning an entirely new build, there are several factors to consider to not only keep costs low but increase the property’s resale value.
Here are some handy tips and tricks to consider for building your dream home.
1. Build with future value in mind
You may be designing your dream home, but there are still features and additions that you may consider including in your build to help increase your homes’ value for resale (in the distant future, of course).
We live in a sunburnt country, and with this comes our record-breaking summers. Installing an air-conditioning unit may help to not only keep the boiling weather at bay but add value to your home – especially if you install a fully ducted system.
And consider avoiding DIY projects for major areas where you can. While The Block may be an inspiration for a lot of budding home builders, you may actually do more harm than good by not turning to professionals for some of the building work, such as hiring a professional painter. This will save you having to spend thousands to fix your own handy work down the road.
2. Nab a low rate home loan
While this step is less romantic than picking out your dream bathroom tiles or kitchen counter marble, it may save you thousands of dollars over the life of your loan.
Building a home is an expensive process and there’s no two ways about it. One way you can aim to keep costs down is to try and nab a low rate home loan, so your ongoing repayments are more manageable. Building a home takes time, and so does paying off a construction loan.
Reduce Home Loans consistently offers some of the lowest rate home loans in the market. By choosing a Reduce Home Loan product, you can start your dream build journey off on the right foot, knowing your ongoing repayments may be lower than average.
3. Make the most of natural features
When it comes to the design of your new build, consider looking to the natural features on your block for inspiration. This may be able to reduce costs in foundation work and retaining walls. If you’re considering a more environmentally friendly, natural build, there are alternatives to expensive concrete and steel foundations.
Most experts will also recommend designing the home with as much of the living and entertaining space on the north-facing side of the home. Orienting your home towards the sun is a simple way you can not only ensure those areas receive ample sunlight, but potentially means lower energy bills in winter if the sun is naturally warming those spaces.
4. Consider a construction loan
After the home loan deposit, stamp duty and all the upfront fees associated with a home loan, you may find that your building budget has been chipped away at. This is where a construction loan may come in handy for borrowers looking to build their dream home.
Construction loans are a little different to a standard home loan. Instead of having full payment made at settlement, you receive payments as the stages of your building progresses. Before applying for a construction loan, you will need to have your budget and construction plan laid out. You may also need a smaller deposit to get thing started and, as always, a good credit rating is ideal.
As the construction progresses, you’ll typically receive funds at these following stages:
- Slab – The foundation, plumbing and waterproofing.
- Frame – Construction of the frame of home, including windows and roofing.
- Lock up – External walls, doors and insulation.
- Fixing – Internal fixtures and fixings.
- Completion – Final installation pieces, such as painting and fencing.
Choosing a construction loan provider is just as important as choosing a home loan provider. Reduce Home Loans offers competitive construction loan rates with great features on both fixed rate and variable rate loans.
5. Green building
When designing your dream home, you may also want to consider going green to improve energy efficiency. It’s no secret that energy bills in Australia are some of the biggest utilities costs we face, and Green Building can help to reduce this ongoing cost.
A modern method of residential building, Green Building keeps sustainability in the focus. Whether it means using energy efficient appliances and outlets, environmentally friendly materials, opting for a sustainable but comfortable home build can reduce your environmental impact, reduce your energy bills and may even keep building costs down too.