Compare Home Loans

Building Your Own Home

Building a home is always a tough process. However, it shows some advantages. Figures show that the expenses for building from scratch is 20 to 30 percent cheaper than renovating on a per square meter basis. Also, there is a sense of achievement once you have seen that the house has been finished. You can build your own home in a number of ways and one of them is via house and land packages.

The house and land package is the all-in-one aspect of buying a property. In this package, you will buy the land and the house from the developer. The developer will offer various house designs and allotments within his developed community. Once you are sure in purchasing the house, a ten percent deposit must be paid and the balance will be paid via monthly repayments.

When deciding on a loan for your new property it is important that you know how much you have and how much you can afford to borrow in real terms. Finding the right loan is as important as finding the right home.

Then, you would have to sign a building contract. This contract contains the architectural blue prints for the property, quotations and the actual building contract document itself. Any labour job that is above $200 must always have a written contract. Before signing, make sure that a lawyer has checked the contract first in your behalf.

The warranties for the project must also be contained in the contract. These warranties include the materials used for construction, the project’s legal compliance, the builder’s quality of work, the completion time for the property and the physical qualifications of the builders for the job. This warranty will protect you from fly-by-night construction work.

However, be mindful of the fact that uncontrollable delays can come as the property is being constructed. Some of these uncontrollable circumstances are price blowouts, construction delays due to lack of manpower, bad weather, price blowouts and even disputes with building authorities or neighbours. To avoid disputes, you should get a fixed price contract from the builder.