Building a new home can come with some challenges, including financing the project. In this blog we look at the best ways to finance your new home build.
The decision to acquire a new home is one of the biggest financial decisions most people ever make. And whether this home is built from scratch or bought as a pre-existing structure can also be influenced by several factors.
The idea of having complete control over the design, construction and budget by building a brand new house is appealing to many prospective homeowners. If you’re one of them, here are some of the best ways to finance your new home build.
1. Government aid
A number of financial schemes are designed for first-time home buyers, and they’re ideal if you decide to build your own home. Get in touch with your state government to find out more and establish which one will work best for you.
2. Two loans: land first, house later
Buying land is the first essential step in your home-building journey. One way to counter the two-fold challenge of the expense of building from scratch is to acquire your land in advance. If the planning is done well in advance, you would have made some headway in repaying your land loan by the time you take on a loan for construction.
Discuss loan options with the financial advisor at your bank to make sure you choose the right product.
3. Paying in instalments
Many prospective homeowners are unable to pay a large lump sum before any construction work is done. The Housing Industry Association provides a standard plain English contract, this enables progress payments in instalments with a reputable new home builder like Kaplan Homes to get the project going smoothly and also saving you some bank interest along the way.
4. Capped Price
A huge advantage when building with Kaplan Homes is that there are no hidden extra costs, all of our pricing is upfront and clear to understand and see, therefore included in the quote and contract.
Please note: Kaplan Homes are not licenced financial advisors and customers should seek professional financial advice before acting or investing.