Ahhh dear, well after umming and ahhing over what to do house wise, we've decided to take the plunge (and a mortgage) and build. This is all new to us. We haven't got a clue where to start! We've looked at land, looked at some display homes and we've more or less decided on a company. After securing the land, what then happens? The sales rep for Plantation Homes said we have to be realistic and allow at least 12 mths for a build (start to finish inc all the admin, planning etc). She said financially we have to make sure we can afford the build and 12mths rent - its going to be really tough. The alternative is to buy a house a few years old but we just can't get what we want. We are being slightly fussy but then we left a bloody nice house in the UK that we renovated for 10 yrs! We just don't want to compromise and buy something that needs 'doing up' having been there done that. We don't have savings and will need finance for the whole project.

Be grateful of an insight into building, the pitfalls, how much extra to allow etc The house build we're looking at is $225,000, land $199,000 gently sloping so will need extra groundworks/reinforcements of up to $30,000 (just a quote tho).

do it but allow atleast 15% on what youve been quoted. where in qld do you live as your figures sound very reasonable. where in cairns and youd be lucky to get a specky for that.

We were faced with this as well. When we realised you have to pay stamp duty on houses, we decided to go for our own build. We have bought an 1100 ($230k) block and having a 255 sqm house built on it ($202k after prestart).

We know we will be paying rent and mortgage at the same time but decided, at the end, we will have what we want and like you, we couldn't find anything that had large bedrooms for the boys.

Good luck

Debs

Hi there the lands in Eumundi, one of the cheapest blocks around (real estate quote)!!! If we don't go for that block then the next plot we're looking at is $280k!!!!! Way out of our price league. Will sit and work the figures out with the 15%, have busy brains cos of the whole thing and therefore cannot sleep!

Glittababe - just go for it!!!! You wont regret it.

If its your first house here you will get the first time homeowners grant, $£7000 you get this when the slab has been pored. This is the same time as the builders will want their first wad of cash.
As the average build only takes 5 months an your not paying full mortgage, just the interest on the progress payments until you move in, the $7000 should cover all the payments.
So no mortgage and rent to worry about.

I'm guessing the OP is buying the land outright first.

Thanks for that and nope, we need a mortgage for the land! We'll have to pay the rent, mortgage on land and the mortgage for the build. We were under the impression we had to pay it all outright first. The fact it's done in stages is great. Many thanks for that.

Not sure how its done with the land , but I guess you will pay for all of it before the build starts. There is normally 5 or 6 stage payments for the actual build.

Just thought I'd add , they ask for cash after the work is done, which is good because if something isn't right you can withhold payment until it is.

you ask the bank for an INTEREST only mortgage until after the house is complete, therefore you will be paying the interest on the land payment and then progress payments as the house gets built. Ours was 5% for the slab, 15% for the frame and so on, it will all be detailed out in the contract you sign. It is still tough to pay mortgage and rent but its worth it. Once the house is complete then you move onto the normal mortgage payments. I hope this helps. Also make sure that there is a clause in the contract that the builder pays you a daily amount should the contract run over its time...we got $35 a day from ours

Thanks for that, makes it a lot clearer. We have a fairly hefty rent of $400 p/w so it may be worth our while moving into a cheap unit for however many months it takes - or we could live in a van!

thats a good idea...a cheaper unit would be the way to go....cos you know its only for a short while and then you would have your fab new hoose to go to, and not be so finacially drained.

Hi. that is exactly what we did. When our house was being built, we didn't see any point in wasting money on rent, so we found a really basic, and I mean basic, 2 bedroom unit for $150 a week. We were also contemplationg renting a van, but so glad we didn't as it would have drove us nuts, and as it turned out, to hire a van I think worked out about $180 a week. We were in our unit 12 months, and although we were so fed up with the place, we persesrvererd, as it was worth it when we moved into our new home. Good luck with your build, hope it all runs smoothly.

Just on the subject of the first home owners grant, someone said you get it after the first stage payment. In Queensland, you don't get it until the end of the build as you have to supply a copy of the Completion Certificate that the Council provides.

Sorry to butt in.

We purchased our block cash. We are on a 457 but application for PR being considered as we talk. I know we have to wait for PR before we can claim the first homebuyers grant but do we also have to wait for the house to be completed or can we claim just on the block? I know it has to be within 12 months so that is why I am fretting a bit as 12 months from buying the block would be a bit tight for time but completion of build would be good.

Debs

Looks like the rules are different in different states, In SA its after the slab is pored.

Just off to look at some alternative blocks as the Eumundi one is 'gently sloping' - if we have to reinforce and do extra ground works it could be $$$'s extra. We're looking at paying extra for a flat piece of land. Its confusing and exciting. Not quite sure hubby's as enthusiastic as me! He's worried that if we rent a small unit we'll have to pay storage for all our stuff. Ah well, difficult choices to make but it'll be worth it in the end (I hope)