Buying a home
If you can't buy, build
9 min read
Drive-bys, late nights and scoping out the neighbourhood. Sound like you? You’re either a local crim, or you’re hunting a home. Either way, we’ve got some tips for you.
Finding a home you love is difficult. Many stars need aligning before the property gods shine light onto your ideal abode. And often, our aspirations are bigger than our eyes (everyone can dream, right?). If you’ve been struggling with finding a perfect match, we’ve got some ideas to help refine your search. And, if you still can’t find one, we’ll talk about how to get started with building - so you can make your home, from scratch, the way you like it.
All paths to homeownership are toll roads. You’ll need to be ready to cover the various costs, like stamp duty and conveyancer’s fees, as well as any home loan application fees (unless you’re with Tic:Toc, because we don’t charge any lenders fees). As a rough guide, you may be paying between $995 and $3,825 with other lenders to purchase a home (excluding stamp duty), or between $195 and $525 to purchase with Tic:Toc.
It’s important to be clear with yourself: what kind of property are you looking for? Are you searching for your first home, looking to downsize, or expand? Define your goal early to help guide your decisions.
Then, start looking at more specific criteria. How many bedrooms, bathrooms, and off-street parking spaces (if any) would you like? Do you dream of a butler’s pantry, or a cute city apartment with a balcony garden? Perhaps both? What do you need, and what would be nice to have?
Here’s a checklist of things to keep in mind when considering a property:
These days, in case you didn’t know, it’s easiest to browse available properties online. Use the advanced search features on sites like realestate.com.au and domain.com.au to drill down into property price, type, car spaces and land size, as well as more specific features like ducted vacuum systems and built-in wardrobes.
Still having trouble finding your dream home? It might be time to compromise. Search surrounding suburbs, and look at properties with smaller square metreage, or with fewer bedrooms. Try single, not double, garages or consider apartments with combined laundries and bathrooms. Backyard too small? Perhaps neighbourhood parks and community gardens can help you bridge the gap.
You’ve hunted high and low. Maybe your dream home doesn’t exist…yet.
You may have already considered building, and found it would take too long, be too stressful, or just too difficult. But, building a home can be a great alternative to purchasing, and the process of building isn’t as hard as some episodes of The Block would have you believe. Here are some great reasons to build:
Customisation is key. The extra-deep drawers for the pots and pans; a laundry with plenty of benchtops and storage; the study nook under the stairs. Bring your long-desired home features to life by incorporating them into your build. Pick your own colours, materials, and fixtures. The result can be a home you love, built by – and for – you. And if this means a hidden room behind a bookcase, so be it. You do you.
If you’ve ever lived in a pre-loved house, you’ll know they can come with their own set of peculiarities. By this, I mean there will be signs the house has been lived in previously. Marks on the walls from where frames once hung; the oil patch on the driveway; the fake plastic lattice adorning the veranda. It might give the place a Victoriana feel, but is it really what you want?
A build will give you the chance to craft your own castle, and you won’t have to worry about any pre-existing oddities from previous owners. Better yet, you can sleep peacefully knowing your home is brand-new and structurally sound.
If you’re a first home buyer, you’re in luck. Your state or territory likely provides assistance through their respective First Home Owner Grant when you build or purchase a new home. Quite often, you’ll pay less stamp duty too through exemptions or concessions.
Our friends over at Finder.com.au ran the numbers, and the median price to build is almost always lower than the median cost to purchase (except if you’re in Perth. Sorry Perth).
Tic:Toc doesn’t offer construction loans… yet. But, here’s what to think about when you’re building.
Hold ups are usually inevitable; between progress payments going through, council approvals, and tradesmen availability, you could be waiting additional weeks/months for your home to be finished. Prepare yourself for a marathon vs. a sprint.
You’ll need it. You can purchase an empty or new block of land, or some builders will offer house and land packages. Alternatively, it may be worth finding an existing property in a state of disrepair for easy demolition and clearing.
You’ll need to find someone to design and build your house. If you’ve watched enough Grand Designs to glean some project management skills, you could try managing your own build. But just know Kevin McCloud will not be there to console you when your property is inevitably off schedule and over budget.
If you’re not keen, conduct a search for home builders in your state. When assessing options, check:
Build in customisation buffers when budgeting (sounds obvious). Whether you’re going down a custom build or an off-the-plan, every time you decide to upgrade a finish or feature the costs will add up.
Tic:Toc don’t offer construction loans right now. But here’s how most lenders do it:
First, you’ll need to provide your construction plans as well as your builder’s details and accreditations to your lender. From the plans, your lender will value your future home and determine how much you will need to borrow for the build.
You’ll likely need to provide a few supporting documents, such as council certification of your plans, a detailed breakdown of the builder’s costs, insurance policies, soil tests, building permits, a copy of the contract between you and the builder, and bank details of the builder.
Then, when your loan gets underway, the lender will usually release the funds in stages corresponding to your build. So, you’ll only make repayments based on how much you’ve been lent at each stage, and the repayments are typically interest-only until the build is complete. The stages are commonly defined as:
The site is cleared and the foundation is poured.
Where the wood/steel frame is erected, and the roof structure is put on.
Your windows and doors are installed, internal cabling and plumbing goes in, and the roof and external walls are built to seal off the inside.
Internal walls, skirting, and flooring are all fitted.
Settlement on your home loans occurs. You'll complete a final walkthrough of your home with the building supervisor to identify anything that still needs attending to. Loose ends are tied up, appliances are installed, and all the finishing touches are added. Get excited, this is when you finally get given the keys.
You’ll need to think about a few things:
Finally: move in and enjoy.