Things you should consider while buying your first home

Buying a new home?

 

Budget 

You may have two options for your new dream home.

  • Buy home and land package
  • Buy separate home and land.

Buying home and land package is good for your budget while separate home and land package give you the freedom to design your dream home your way.

 

Design

Home design varies according to your need and budget.

  • Single story
  • Double story
  • Duplex with partition/subdivision
  • Townhouse

 

Dimensions

First of all, you need to decide your requirements. Area for your home is described in meter square or squares. I recommend you to stick to any one unit of measurement whichever suits you, for easy comparison. In addition to this, there are some other terms like frontage and depth. Frontage is the width of your home at front. There are various standard frontage options like 10, 12.5, 14, 16 and more. Depth represents the length of your home. Many real estate agents offer you irregular blocks with random dimensions at cheaper rates. Please go to the possibilities of designing a home in that area before making any decisions. It is recommended to go for standard rectangular blogs.

If you are planning to buy land, ask your real estate agent to provide you engineering report before making any decision. This engineering report may be helpful to estimate site cost as it varies from location to location. You can submit this report to the home builder who can easily get you estimate of site cost. This will help you finalize your final budget. Typical site cost varies from 5k to 50k depending on location to location.

 

Other Charges

Building a home include various costs.

First home buyers are eligible for the grant. In Victoria, you are eligible for first home buyer grant only if your overall budget is 600k including deposits and everything. (Oct 2018) However, this may vary from state to state.

  • Site cost: This includes rock removal and other site preparation charges for building home
  • Carpeting and driveway
  • Curtains and garden
  • Council fee (one time)
  • Furniture and others

Your home building cost does not include the cost of carpeting on the floor and cost of driveway construction. Moreover, counsel fees and other charges sum up to 50k or more in most cases.

There may be an annual membership fee for accessing club and other recreation activity if you have planned your new home in the township.

 

Finance

You may be required to submit 5 to 10% deposit while signing the contract. Rest amount can be settled by the bank loan. Make sure you get your copy of the contract. There may be 3 to 7 days of cool off periods after signing a contract. You may withdraw your decision during this period. However, you will be charged nominal fee for this cancellation, usually 100$ approx.

 

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