Build a house

• You can design and build it how you like, deciding on the features you want without having to spend money to change existing fixtures.
• With low maintenance, all new appliances and walls freshly painted, your newly-built house should require less maintenance in the first few years than an established home.
• High energy efficiency ratings are legal requirements in newer houses, and will help you to potentially reduce your power and water expenditure.
• Improvements to building codes in recent years have improved the quality of construction and other safety standards.
• Modern housing estates often have strong, well-planned infrastructure to meet the needs of the community and are often located in high growth areas, helping to increase the value of your property over time.

Buying a block and designing your home

It can be worthwhile hiring a professional to survey the block and make sure it’s suitable to build on before you decide to buy.

Your block can greatly influence the style of house you’re able to build and how much it will cost. If you’re designing your own home, you may want to consider adjusting the design to suit the shape and contours of the block to reduce the environmental impact and potentially save you money.

While design choices can be limitless, it’s important to consider your goals and what you can afford to borrow. Gather ideas from existing houses, display homes, magazines or website and speak with an architect, designer or draftsperson to bring your dreams to life.

A house and land package

Developers often have display homes for you to walk through and get a feel for the space and, importantly, get an idea on the quality of the workmanship.

Buying a house and land package can minimise the paperwork and simplify the decision-making and building process, and can provide peace of mind for those possible (and likely) cost blowouts.

Before you sign a contract, it’s important to do your homework on the developer and be very clear about what you’re getting, and monitor the build closely. 

Buying off the plan

Buying off the plan means signing a contract to purchase a house or apartment that is yet to be built. You can view the design and building plans but there is no physical property to see or inspect.

As you can’t physically walk through what you’re buying it’s important to do your research about the developer, understand the timeframes and get independent legal advice before you sign the contract.

It seems logical that if you were to sign a contract to purchase a property that was for sale at today’s prices, it should be worth more when construction is finished in a few years’ time. While this is generally the case, real estate prices are not always a certainty.

For first home buyers, buying off the plan can provide you with more time to get your finances in order while the property is being constructed, and can often provide easy and convenient payment terms.

How much do I need for a deposit?

An ideal deposit is at least 20% of the total purchase price – house and land. If you need to borrow more than 80% of the value of the property, Lenders’ Mortgage Insurance will usually be payable to protect the lender in the event that you default on your loan repayments.

Get saving

You don’t have to go it alone

If a 20% deposit seems out of reach and you want to avoid paying Lenders’ Mortgage Insurance, there are other options available to you, such as:

• Family guarantee - With your family acting as guarantor, you may be able to borrow 100% of the purchase price.²
• Property share - Pool your borrowing power with family and friends and co-own a property, while retaining control over your own mortgage.

Government grants

Your State Government may be offering Housing Construction Grants and stamp duty concessions to help reduce costs of building new homes, so be sure to check what you’re eligible to receive.

You may also be eligible for the First Home Owner Grant, a one-off payment established by the Federal Government and funded by the States and Territories, to offset the impact of the GST on home ownership.  Visit firsthome.gov.au to find out more about the grant and the eligibility criteria in your state or territory.