Building a new home is an appealing option for many first home buyers. It gives you the opportunity to customise the design, choose your location and potentially take advantage of government incentives available for new builds. While the process differs from buying an established property, with the right planning and support, it can be a smooth and rewarding path into homeownership.
Here are seven key considerations to help you get started with confidence.
1. Understand Your Budget Early
Before you begin looking at display homes or land estates, it’s important to know exactly what you can afford. Building costs can include more than just the construction price – you’ll also need to consider the price of land, site works, connection fees, and any upgrades or variations you choose along the way. Getting pre-approval for finance gives you clarity on your borrowing power and helps you set realistic expectations.
A Loan Gallery Finance broker can guide you through this process and help you build a finance plan that suits your needs.
2. Explore Government Incentives
If you’re building your first home, you may be eligible for a range of government schemes that are specifically designed to support new buyers. These can include:
- First Home Owner Grant (FHOG)
- Stamp duty concessions
- First Home Guarantee (for eligible low-deposit borrowers)
These incentives can significantly reduce the amount you need upfront, so it’s worth exploring what’s available in your state. Your broker can walk you through the eligibility criteria and ensure these benefits are factored into your finance strategy.
3. Choose the Right Land
Not all blocks of land are the same, and your choice of land can influence your building costs, design options and long-term lifestyle. Consider factors like block orientation, slope, size and any estate guidelines that may impact your home design. For example…
- A South-facing block with living areas to the rear can improve natural light and energy efficiency.
- A sloped block may attract higher site costs.
- Future infrastructure plans in the area, such as schools, parks or transport links. These will not only affect your day-to-day living but also the future value of your home.
4. Select Your Builder Carefully
Choosing the right builder is a critical step in the process. Each builder offers different designs, inclusions, price points and levels of customer support. It’s worth comparing several builders to find one that aligns with your goals and budget. Look at their reputation, the quality of their standard inclusions, their warranty policies, and estimated build times.
It’s also important to ensure the home design suits your land and lifestyle needs. Small design choices early on can make a big difference to comfort and functionality once you move in.
5. Know What’s Included – and What’s Not
When walking through a display home, it’s easy to fall in love with the finishes – but not everything you see is included in the base price. In many cases, upgrades such as stone benchtops, flooring, driveway, or landscaping come at an extra cost. Builders offer varying levels of standard inclusions, so it’s important to get a detailed list and understand what’s covered in your contract.
Being informed about these potential extras helps you budget more accurately and avoid unexpected costs as your build progresses.
6. Be Aware of Timelines
Building a new home involves multiple stages and can take longer than buying an established property. Delays can occur due to factors like land title registration, council approvals, weather, or material availability. It’s important to have a general understanding of the process and allow some flexibility in your planning, especially if you’re renting or managing another property during the build.
Your builder will give you a projected timeline, but it’s wise to plan for contingencies just in case things shift along the way.
7. Plan for Additional Costs
It’s easy to focus on the headline price when building, but there are often additional costs that come up during the process. These can include:
- Site preparation
- Soil testing
- Fencing
- Retaining walls
- Landscaping
- Utility connections.
Some of these costs may not be finalised until after site inspections are done, so having a financial buffer in place is a smart move. Your broker can help you estimate these costs as part of your overall budget planning, so there are fewer surprises down the track.
Building with Confidence
Building your first home is a big decision, but with the right advice and preparation, it can be an exciting and achievable goal. Taking time to understand the process, ask questions, and work with trusted professionals will help you feel more confident every step of the way.
At Loan Gallery, we’re here to help you navigate the financial side of building, from loan pre-approval to settlement and beyond.
Thinking of building your first home? Get in touch with our team to speak with a first home finance specialist today.
