With median dwelling values running high, and a clear need for new buildings, putting your dream home on a new plot of land is a great option. Why buy an existing house if it's too expensive? Building can be more cost-effective, not to mention giving you the freedom to tailor the place to your own specifications.
Before you start building a home, you'll need to have the right financing arrangement in place.
Of course, before you start building, you'll need to have the right financing arrangement in place. Building might be cheaper than buying a home outright, but it's certainly not free. You'll need to take a careful look at the market and evaluate your options before making any decisions.
A growing market for home construction
If you're mulling over the possibility of building a home in Australia in 2017, you should know that you're not alone. According to the Australian Bureau of Statistics, there were a total of 17,639 new dwelling units approved in February alone, which represented a 0.8 per cent increase over the previous month. Building is on the rise.
With this steady growth comes a more competitive market for construction. New building companies are sprouting up, offering their services with all sorts of projects. This complicates the equation for families. Who will you build your home with? What price will you pay? Answering these questions has become a lot more complicated.
Getting a feel for the building process
Are you wondering when it's a good time to build a new home in Australia? Here's one sound answer: Not until you fully understand the process involved. As YourHome correctly noted, building a home tends to be a long and complicated ordeal.
It begins with choosing a builder. You need someone not just good with their hands, but also skilled with project management – setting and following a budget, coordinating smaller sub-projects and working with employees and contractors. You also need to be savvy about drawing up legal agreements and enforcing them fairly, as well as making sound financial decisions.
Preparing for the costs that lie ahead
It's only natural to have concerns about how Australians can build new homes. After all, it's difficult and expensive. Research from Allianz found that the average cost of a building project has more than quadrupled within one generation – it was $65,000 in 1988, and $282,000 now.
One way to make the process a little easier, however, is to enlist financial help. At Mortgageport, we offer land and construction loans that are easily customised to meet your needs. Talk to us today about how we can help get your next building project off the ground.