Following Reserve Bank of Australia’s decision to increase the cash rate by 0.50%. RAMS will increase home loan variable interest rates by 0.50% for new and existing customers effective 18 Aug 2022
  • The numbers behind building a home

    Older suburbs across Australia are getting an injection of new life thanks to creative property developments.  




    Building a home could be the right choice for some buyers as it can allow you to minimise your stamp duty costs.

    For some states offer government grants and incentives for borrowers to get into their own home.  It's best to check with your local state government on what those incentives and grants could be.

    Building also allows you to build something brand new and custom to you.  Building your own home can also come along with less maintenance as opposed to buying an established property.

    If the property is going to be an investment property, there may be tax depreciation benefits you can take advantage of.  It is best to seek advice from your accountant in relation to these.

    An advantage or disadvantage, depending how you look at it, may be that new build areas tend to be further from the city.  This may mean that you end up with more land or space available in areas like these.  A disadvantage of building your own home is that it can take longer to actually get it built and move into it.  Whereas if you are buying an existing property you can move into that straight away.

    Another disadvantage is it's more complicated to build than buy an existing home but you might find it's worth the effort to build a home exactly as you like.

    Building a home can come with stamp duty and conveyancer costs.  There may also be additional valuation and construction progress payment costs.  You may also want to engage an architect if you're looking to custom build a home.  

    Any changes from your original build contract can result in variation costs and will result in increasing the cost of your overall build.

    It's also important to consider other costs that may not be included in your building contract.  These include things like window furnishings, driveways, letterboxes, landscaping, fencing etc.  If these things are not included in your building contract you'll need to come up with those additional costs.

    Typically if you're building a new home you'll need a home loan tailored for construction.  Great part about these loans is the repayments start out small and they only increase as your build progresses.


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