Page 7 - CBA_construction-loan-guide-Oct2020

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Before you begin ask yourself: Reasons to build your home u
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Y Your home, your way

Design
Do you love your Do you want to stay Are you ready for a You can choose the model and layout of your home, then work with a builder or
neighbourhood and where you live? change from your architect to tailor each room to your needs – from the floorplan to the lighting fixtures
where you are? current neighbourhood? and tap fittings. Plan your build

Do you like the Do you have a good
style of your block of land but the Can you commit to Lifestyle
home is old or not to
existing home but your style? the time needed for
need more space? a new construction? You have the freedom to build your home in your chosen location. This could include
choosing to keep your existing home and renovating it to suit your lifestyle or starting
Do you want the Do you want the fresh in a different location. co
Do you have a budget flexibility to design flexibility to design and If you’re buying land at the same time, your new home may be built in a planned
you want to stick to? and choose the choose the features you community, with other people in a similar situation. Planned communities often have
features of your want in a home? recreation, retail, transport and healthcare facilities with safe roads and pathways, nstruction loan Finalise your
new home? giving you access to services you may need now and in the future.
When your home is finalised, you can move in straight away and won’t have to wait for
tenants to move out or deal with damage from previous owners.

You may consider You may consider knocking You may consider Budget
renovating your existing down your existing place purchasing a block of land
home by extending and and building a completely in a different location and A new home will have all the latest construction techniques, modern materials and
adding bedrooms, new home. This may be building a new home. environmentally sustainable elements that may save you money down the track.
bathrooms and living financially beneficial as These may include lighting, planned workspaces, entertainment areas, insulation, Ready to build
spaces. you already own the land. and energy efficient heating and cooling systems.
You can choose the features of your home according to your budget and won’t need to
spend as much on repairs and maintenance for many years.
Key benefits If it’s your first home and you meet the eligibility criteria, you may be able to apply for
government grants and/or schemes in some states, such as the First Home Owner’s Grant
and the First Home Loan Deposit Scheme.
• You can choose exactly what • If you love your • You have the opportunity to
you want to renovate in your neighbourhood, you get to customise your home to suit There may be financial benefits for buying off the plan that give you more time to
home without needing to stay where you are. your lifestyle. save a deposit.
knock it down. • You can choose a home • For the first few years, there’s and repayments Managing your build
• You usually don’t need to design to suit your needs less likelihood of regular Considerations
move out while renovating, and everything is brand new. repairs and maintenance.
which could save you • You may need to pay rent while your new home is being built.
money by not paying for • Building your new home gives • You can benefit by having a • There can be unexpected costs discovered in the initial site preparation,
storage or rent. you the opportunity to plan sustainable and energy or dealing with issues not covered in your building contract.
• It can add value to your for your future (e.g. building a efficient home by
existing home, so if you do bigger home with more incorporating newer designs • Many housing packages don’t include the high quality finishes you would like,
bedrooms or having a two
and technology (e.g. solar
decide to sell later you may storey home instead of one). panels or placement of which means you’ll need to pay more for anything other than the basics.
get a better price. windows). This may also be • You’ll need to monitor the construction as it progresses to ensure the builder
financially beneficial as you completes works and delivers to what you’ve agreed.
may save money on your • There may be delays with building due to bad weather and other unforeseen factors, Enjoy your new home
utility bills. so you may need to be flexible with agreed delivery timeframes.

KEEP IN MIND: It’s important to understand the market conditions, overall value of your TIP: Choosing your home design may seem daunting, so to make this process easier it’s a
property and location when deciding your budget and the scale of your renovation or new build. good idea to get a better idea of the type of home that will suit your lifestyle. You can visit
This is to ensure that your renovation or new build doesn’t outweigh the value of your home if display home centres to help you choose a builder and/or architect who can make your
you decide to sell it later (also known as over capitalisation). dream home a reality. Additional resources

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