Whether you are planning to purchase a house and land package, or first buy land then build on it, the process is largely the same. Conceptually, both acquisitions combine the cost of the land and the cost of the home, with two contracts; one for your mortgage on the land and another for the construction loan.
Whichever method you choose, according to Shelford Quality Homes Sales Manager Martyn Ferris, the most important thing to remember is to take your time and do your research.
“Equip yourself with as much information as possible from reliable resources, so you can make an informed decision,” he said.
The first step is assessing your financial situation. It is arguably the most important step, as it will determine your ideal location, home, size, specification and design.
When setting up a budget, Mr Ferris recommended considering the elements of land, site works, the house build itself and all finishing costs.
“Work with your financial institution or mortgage broker,” he said. “Many Perth building companies have affiliated mortgage brokers. We suggest choosing a mortgage broker who’s not affiliated to a builder, so your power of choice and negotiations are not taken away even before you start looking at your options.”
Mr Ferris said a pre-approval could simplify the process by giving you the confidence in knowing what you could spend.
“You may also be eligible for rebates and government grants in Perth,” he said.
The next step is choosing your land, which, with so many new land developments, can be overwhelming. Mr Ferris encouraged buyers to consider five factors – location, block, orientation, contours and soil conditions.
“Where would you like to live? Close to the city, beach, river, north, south, or near the hills? Think about if you would be willing to compromise on size for the location or if you want a bigger block down the freeway,” he said.
“Consider your personal preferences, including lifestyle, family and work commitments – both now and in the future.”
Shelford Quality Homes can help you choose the best value blocks and solar orientation in compliance with design guidelines, so you can have an energy-efficient home, according to Mr Ferris.
Contours, or the slopes of the block, will impact both the home design and your building costs. Finally, your soil conditions should be assessed as this can affect the site works required.
Mr Ferris said once these factors had been determined, choosing your builder was the final decision and one which was just as important as finding the right home design.
“We suggest having a list of potential builders and getting to know each of them, so you can compare later,” he said. “To narrow down the list and find the right one for you, ask yourself, what are you looking for in a builder?”
Mr Ferris said quality, value, service, flexibility, inclusions and limits should all be taken into account when selecting the builder of your dream home.
CONTACT Shelford Quality Homes, 9599 1500, www.shelford.com.au