What is Involved With Building a New Home: The Process Explained

Launch Finance - What is Involved With Building a New Home: The Process Explained

Building a new home can be an exciting and a rewarding path to home ownership, as you will be able to live in a property that suits your exact specifications. However, the entire process can be overwhelming due to the number of steps involved, from performing your initial research until the construction of the property is finally completed. Below we have outlined an overview of the steps involved in building a new home to make the process clearer for you.

1.     Initial research. This first step in the process is research! This includes nailing down details such as your preferred location, your specifications when it comes to the home, professionals whose services you may need throughout the construction process, and most importantly, the regulations that you have to adhere to when constructing a home in your location of choice.

Take as much as time as you can during this stage as this will help minimise the likelihood of problems arising later on.

2.     Secure finance. Another important step you have to take at the beginning is to secure financing for your project. It is recommended that you have a pre-approved loan even before you choose a location, a builder and a design. This is because a pre-approved loan will tell you exactly how much you will be able to afford. This makes budgeting for your project easier. Knowing your budget will also help you make money-related decisions faster.

3.     Choose a home design and builder. This is where you will either work with an architect or builder to come up with a design based on your specifications. Often these two processes can happen simultaneously, as many people first choose a preferred builder and then a home design that they like. Following this, you can then make alterations to the home design to customise it to your own individual needs.

During this process, you should visit your chosen site with the designer or builder. This will help them come up with a design not only based on your specifications, but also based on the site itself, such as the type of soil you have to build on, its orientation and access.

Regardless of whether you are choosing a designer and builder, or just a builder, ensure that they have the proper qualifications and adequate experience to handle the project.

Finding the right builder in particular is extremely important, as they will oversee the entire construction project. They will, for example, choose the materials to be used for the home, check the quality of the project, and ensure the timely delivery of materials and the completed property.

4.     Contract, approvals and prestart. Once you’ve chosen a builder, ensure you sign a contract with them to help ensure that your role and that of the builder are clearly defined, and any disputes in the future will be resolved easily. It is recommended that you have a solicitor check the contract before you sign it.

This is also the stage at which you can further customise your home, during prestart. This is when you can choose all of the finishing touches that will help turn your house into a home, including the style and colour of your bricks, tiles, cupboards, taps, bench tops and much more. There is usually a standard range of fittings that you can choose from, plus a more expensive range of fittings, so make sure that you keep your overall budget in mind throughout this whole process.

5.     Construction. This is where the actual construction begins. Although the builder will be responsible for overseeing the entire project, make time to regularly visit the site yourself. This will give you an idea on how well the project is progressing.

There will also be inspections at certain stages of the project. These inspections will help ensure that the construction being done is in accordance with the approved plan, as well as Australia’s Building Code and the regulations of the local council. This is also important in helping ensure that any problems found at any stage of the construction are remedied immediately before any more work is done.

It is best to confirm with your builder during the ‘contract’ stage of the process who is responsible for any construction issues should they come up during the building stage or be discovered at a later date once you have moved into your new home. Outlining this up-front will reduce the likelihood of major issues further down the track.

Also be prepared for any problems that may arise when it comes to the budget and the timeline of the project. Make sure that you have contingency plans for these beforehand.

Depending on the type of home you wish to construct, the designer, the builder, and the number of problems that may arise during the construction, it may take around 10 to 12 months to build your dream home.

Ready to Build Your Home?

Before you proceed with hiring a designer and a builder, it is important that you seek financial advice first. This is where a professional mortgage broker will be able to help you. They can assist you in comparing loans so you can find one that suits your needs and your budget.

To find out what type of loan may suit you, please send us an enquiry today.

Written by Joe Del Borrello.