Construction

Building your dream home can be a fulfilling and complex experience so it's important to take the right steps and be well organised.

The building steps

Plan your budget. You need to set up a budget so you have a clear idea of how much you can spend on building your new house. Speak to Praesidium Life to work out your borrowing power.

Before you sign a contract for land, you can make an appointment with Praesidium Life to receive a pre-approval for finance, which means you know exactly what you can afford. This will also give you more credibility when talking to your developer.

Choose your location and house. When you are looking for land to build on, you can either choose your land then design a house to be built on it. Or you can go through a developer who is selling house and land packages. This means that the developer organises both the land and the house.

Most developers will be able to take you through their range of display homes. From here you can get a good idea of what the house feels like and also the quality of the workmanship. Most designs can be varied to suit you once you find something you like.

If you are organising the build yourself, you will need to get the land surveyed (a Contour Survey) to make sure it is suitable to build on, and then select an architect or builder to design and organise the construction of the house. Research the designer of the house as well, to make sure you will be happy with your home.

Once you have purchased your vacant land and settled on your loan, building will commence. There are three to five stages at which your builder will invoice you and you will need to make a drawing on your loan. At these stages your lender will revalue your property, draw on your loan and pay your builder.

Loan repayments need to be paid during the construction time. This is a good time to use the interest only feature, which can free up your cash for any extra costs.

Find a home loan to suit you

Praesidium Life have access to home loans that are purposely designed for buying land then building on it. We also have some tips to make sure you are confident through the process of building your home.

These loans can include the following features, specific to building your home:

  • progress draws - you can progressively draw funds, as required during the construction, which minimises your interest
  • interest only payments - you only pay the minimum amount due on your loan, which frees up your cash for other expenses
  • additional repayments - you can make additional repayments at any time
  • redraw availability - you can access your additional payments, if you need them at a later date (once the loan has been fully drawn down).