Posted 27th Apr, 2022

Ultimate Guide To Building Your First Home

Ready to take that first step towards homeownership?

Building your first home is an exciting and rewarding experience that ensures you end up with a home that fits your unique vision. But it can also be a daunting task, especially if you’re not sure where to start.

Our First Time Home Builders Guide will walk you through the entire process from start to finish, so you can become familiar with the steps to consider and navigate your first building experience.

How Much Of A Deposit Do You Need?

One of the biggest decisions when it comes to buying a house is deciding on your budget and the necessary deposit to obtain a home loan. Having a budget in mind will also help to manage your expectations and avoid overspending on extras that you might not necessarily need, such as an additional bathroom or living area.

Once you’ve decided on a number, you can then figure out how much you’ll need to save.

This can vary quite a bit depending on the house you’re looking at, as well as the mortgage lender you’re using. Generally speaking, you’ll need to have a deposit of at least 5% of the purchase price of the house. So, if you’re looking at a house that costs $595,000, you’ll need a deposit of at least $29,750. However, it’s always worth trying to save as much as possible for your deposit, as this will make it easier to get approved for a mortgage and get a better interest rate. With a 20% deposit, you’ll be able to avoid paying lenders’ mortgage insurance (LMI), which can add a considerable const when building your first home.

If you’re a first home buyer and saving a 20% deposit is not feasible, it may be worth applying for the First Home Loan Deposit Scheme, which is an Australian Government initiative to support eligible first home buyers to purchase their first home sooner by eliminating the need to pay lender’s mortgage insurance with as little as a 5% deposit.

Move Into A House And Land Package

When you buy a house and land package, you’re essentially getting a house and a piece of land bundled together into one neat little package. And there are plenty of benefits that come along with that. For starters, you’ll only have to make repayments on a single loan, rather than a separate loan for a house and land. That’s more cost-effective in the long run. Plus, you won’t have to worry about finding the perfect piece of land to build your dream home on. The hard work has already been done for you!

In addition, house and land packages often come with other benefits, such as a fixed price for the land and a construction timeline that can help to avoid costly delays. So if you’re looking for a cost-effective way to buy a new home, a house and land package may be the right choice for you.

Choose Your Home Design

Now for the exciting part — choosing your home design. Finding a home design that suits your lifestyle and seeing it come to life is so exciting. There are so many beautiful options to choose from, and it can be hard to know where to start. Do you want a single storey or two storey home? Do you want a traditional or contemporary design? What about an acreage? The possibilities are endless! But don’t worry, we’re here to help. Take a look at our impressive home designs to get inspired. And if you still can’t find what you’re looking for, our team can customise a design to suit your lifestyle.

Sign The Paperwork

Once you’ve chosen your home design, it’s time to sign the builder’s contract. This document contains everything you’ve agreed upon in regards to the home design, expected time drames and the terms and conditions of payment. With a deposit paid on the building, your builder will arrange for a soil test and land survey in order to ensure that your block of land is suitable to build on. Keep in mind that, while your builder is responsible for building your home, they are unlikely to cover things such as pools, driveways, fencing, landscaping, and more. So be sure to factor those costs into your budget before getting too far into the homebuilding process.

At this stage, you’ll also be signing paperwork from your mortgage broker – including loan approval documents and progress payment forms for the lender. A solicitor will then organise land settlement on your behalf, and once the settlement of your land purchase is complete you’ll officially own your land.

Building Process Gets Underway

If you’re in the process of building your first home, there’s a lot that you need to keep track of. It can be easy to get overwhelmed with all of the different stages and details that need to be taken care of. One thing that you may not know is that you are usually required to pay for your home in instalments, rather than paying for the full cost upfront.

These stages are:

  • Stage one: deposit (5% payment)
  • Stage two: base (10% payment)
  • Stage three: frame (15% payment)
  • Stage four: lockup (35% payment)
  • Stage five: fixing (20% payment)
  • Stage six: finishing (final 15% payment).

Typically, you will need to pay a deposit when you first sign the contract, and then make additional payments as the building progresses. Once the building is completed, you will then be able to move in and start enjoying your new home. So, if you’re building your first home, make sure to ask about the payment schedule so that you can be prepared.

Take Your First Step With Emerald

Congratulations on making the decision to build your first home! You’re about to embark on an exciting journey that will see you grow as a person and come out the other side with a place to call your own. There are a few steps involved in getting started, but we’re here to help make the process as smooth as possible. With a stunning selection of home designs and a commitment to customer experience, you can trust us to bring your vision to life.

Browse all of our house designs today, or contact us to talk about the future of your new home.