What Should I Know Before Buying a Project Home?

Buying a home is the biggest dream for many people. And while it is reportedly getting more difficult for younger people to purchase their first home, it’s not entirely out of reach. You need to be spending savvy, save up a deposit, have a steady job and be able to make mortgage repayments. Once you’re in a position to purchase, you’ll have to choose between an established home, a semi-detached home or an apartment. But what if there was another choice?

Buying a home from project home builders is a fourth option. A project home is essentially a house built to a ready-made design by a construction company. This can be built on existing land, where you knock down the older, run-down dwelling and build a brand new home on the land. Or it can come as part of a house and land deal where you buy a package of land and the project home together in a new housing development. So, if you’re considering this approach there are a few things to learn first. Read on to discover them:

Know Your Budget and Lending Limit

No home purchase is possible without the funds. Most people aren’t in a position to buy a home outright, which means they will need to approach a lender. Before you even call up a bank or click on a website, you need to know that you can afford the mortgage repayments. And you also need to know how much you can borrow depending on your household income. Most financial institutions will have calculators where you can work out these two things. If the calculators show that you can lend enough for a project home and that you can afford the repayments, go for it. Interest rates are at record lows making repayments affordable for most households currently.

You Are Buying Brand New

One thing worth noting when discussing purchasing a project home is that you are guaranteed a brand new home. When you buy established homes you often need to make minor, and sometimes major, repairs before they are habitable. It can be a real pain to go to the effort of buying a house only to discover it needs restumping or rewiring, adding thousands to your expenses. A project home comes built new, with all new materials, meaning that your upkeep bill will be kept lower for years to come.

Do Your Research

The property market is filled with lots of players, and not all of them are scrupulous. Before choosing a building company make sure that you do your research on them. Read customer reviews on Google and other pages, don’t just rely on website testimonials. Ensure they’ve been in the game for a while and they haven’t popped up overnight. After all, this is the most expensive purchase you might ever make, so you want to know your money is in good hands.

Carefully Consider Inclusions

Most project homes come with standard inclusions and optional extras, which cost more on top of the quoted price. Consider what you’d like to include. For example, solar panels might cost more on top of the price of the home, but you will save money in the long run as well as reduce your carbon footprint. Instant hot water is a nice convenience to have too, but it may not be included in a basic home package.

Summing Up

Know your budget and lending limit before you begin to investigate lenders and builders. Buying a project home means everything is new and you will spend less on upkeep for the first few years. Do your research into the building company, and carefully consider your inclusions.

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