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Construction Home Loans for Building and buying off the plan.

Building your new home

There are several advantages in building from scratch. You can customise your home to your own tastes and needs, ensure it has higher levels of sustainability and energy efficiency than older homes offer, and lower maintenance costs. Plus, you have the protection of a new home warranty.
On the flip side, building can be a drawn-out and stressful process, and can come with hidden costs and greater levels of uncertainty. You’ll also need to navigate the multiple relationships and costs involved with employing an architect, draftsperson or project home developer, the builder and tradespeople.

Click here for your Free Guide to getting your finances sorted for Construction Loans 

To get the RIGHT lending advice for your situation, please contact Alex McAllum on 0435 725 410 or email Alex HERE:  

House and land packages come with the advantage of a fixed-price contract that includes all major costs. But you need to be wary of issues such as ‘site variations’, which add to the cost. A sloped block, for example, may incur higher site variation costs than a level lot.
Longer term, buying into a housing estate can limit the short-term capital gains on your home.


Buying off the plan Buying off the plan allows you to buy a home, often an apartment, that either hasn’t yet been built or is under construction.
One of the major advantages is the potential savings on stamp duty, which may be based on land value only. And the deposit may be as little as 5–10% of the purchase price, with the balance payable on completion. This could help you save money and give you extra time to arrange loan finance.
But there are possible downsides. If the property market cools after you sign the sale contract and before your home’s complete, you may end up paying above market price for your property. This could affect your loan approval. Similarly, interest rates can change in the intervening period, making it more difficult for you to afford the repayments. Buying off the plan involves a leap of faith in the developer and the quality of construction. 

To get the RIGHT lending advice for your situation, please contact Alex McAllum on 

0435 725 410 or email Alex HERE: 

Tip: Make sure you have all the facts
It’s common for unexpected expenses to come up when building or renovating. Your building contract should offer a fixed price, but it’s worth speaking with your lender to see whether you can vary the loan amount if costs change unexpectedly. Otherwise, these costs may need to be paid from your own funds.

You need a Mortgage Broker like Alex, to answer all of these questions and support you through the process of building your new home whether through construction or a home and land package. 

To get the RIGHT lending advice for your situation, please contact Alex McAllum on 0435 725 410 or email Alex HERE:  

 

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