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Top 10 things first homebuyers must know
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Entering into home ownership is such an exciting time! Many first homeowners are choosing to build rather than buy an established property. Building gives you the ability to customise your home and eliminates the need for costly renovations – in many cases it also allows you much more value for money!
 
To help make your entry into first home ownership as smooth as possible – we’ve put together a list of the top 10 things you must know before you build your first home.

1. Budget

Prior to stepping foot into a display – it’s a good idea to determine your budget, nothing worse than finding the home of your dreams and then realising you can’t afford to build it. A licensed mortgage broker can help you obtain a total cost analysis – an essential breakdown of fees including: settlement agent and bank loan. You should also consider creating your own budgeting breakdown, which will help you to determine how much you can afford to spend, ask yourself;
  • What is my current Income?
  • What household expenses do I have?
  • Do I have any pre-existing debt/loans repayments?
  • Where will I live during the build?
  •  

2. Builder

Selecting a builder for your dream home doesn’t need to be overwhelming. We recommend you consider the following when choosing a builder;
  • Reputation: Ask your family, friends and colleagues who they built with – don’t just rely on online reviews
  • Pricing: Consider the price range of various homes
  • Agreement of fixed cost contract: Sounds logical enough, however some people get caught out and go well over budget by not securing one of these
  • Flexibility of designs: A driving factor of building a new home is having the ability to customise your home design

Viewing a completed home in person is one of the best ways to gauge quality, check out our display villages here.

3. Home design

Understanding your home’s needs and working out your “must haves” can help you to determine what sort of home design will suit you now and into the future, consider;
  • Style of home
  • Single or double storey
  • Level of energy efficiency
  • Open plan living
  • Number of bedrooms
  • Other areas (e.g. activity, office, outdoor)
  • Storage areas

4. Land

The size of the block will generally influence the design of your home and the maintenance required. Our communities feature a wide variety of block sizes including;
  • Flute or Terrace: 140sqm to 225sqm, with frontages of less than 8.5m (rear-loaded).
  • Cottage: 225sqm to 450sqm, typically with frontages of 8.5m to 12m (front or rear-loaded).
  • Traditional: over 450sqm, typically with frontages of 13m or more (front-loaded).
  • Homestead: 1000sqm or more.

Find your perfect block today
If you’re looking to build in one of our Victorian communities you should check out our Vision360 Virtual reality technology.


5. Land Developer

Believe it or not we didn’t just throw this one into the mix! Developers are responsible for planning, designing and ultimately creating the community you will live in. Look for a developer who has;
  • A good reputation/history
  • Positive word of mouth
  • Values which align with yours
  • Industry Awards recognising their work – whether it be how they create a community or their approach to sustainability
Driving around communities can be a great way to understand a developer and get a feel for how they plan and contribute to their communities.

6. Location

Choosing a location which suits your lifestyle needs is really important – being surrounded by family and friends may also be a driving factor when it comes to selecting somewhere to nest; we’ve written a whole other blog here about how to find your perfect community.

7. Inclusions vs expected inclusions

These days homebuilders have a pretty comprehensive list of inclusions and added extras when it comes to building, however it does pay to clarify exactly what is included – this will help you to avoid any unexpected additional costs. Some common misconceptions about inclusions include;
  • Site costs
  • Driveways and cross overs
  • Light fittings and floor coverings
  • Fencing and landscaping

8. First Home Owners Grant

The first homeowners grant is a great way to assist you with getting into your first home if you meet the eligibility criteria – It can vary from state to state.
Find your state below;
NSW
VIC
TAS
SA
WA
ACT
NT
 

9. Deposits

Banks generally like you to have a between 5% and 20% deposit of genuine savings (depending on your individual circumstance), this shows them that you are capable of saving.
Banks have varying requirements depending on your deposit amount, such as; Lenders mortgage insurance (LMI) which is an insurance premium that the banks charge, allowing them to cover their costs should you default on repayments.  


10. Repayments

It's best to pay your repayments according to your pay cycle , ie. If you get paid fortnightly – set your home loan repayments up to deducted fortnightly. You don't want to be holding onto extra repayments for an extra fortnight when you don't have to – you want to try and reduce the interest as quick as possible. Throughout the whole construction process, loan repayments are interest only and are generally only payable monthly. Once you physically move into the home you will then have more flexibility over the repayment structure.


We hope that we’ve helped you on your way to owning your first home – you can always visit one of our Sales Centres for more information. We love to see all of your new homes taking shape – don’t forget to tag your pics on social media using #peetlife or your community hashtag so we can follow your building journey.
 
 
All content within 'Peet's Advice Blog' (Blog) is for information purposes only. While Peet endeavours to ensure all information is current and correct, Peet makes no representation or warranty as to its currency or accuracy. It is recommended that you obtain your own independent advice before taking any action following reading any of the contents of the Blog. Please read the full disclaimer here.

 

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