Building your dream home can be a rewarding experience when you see the plans go from on paper to real life. It can also turn into a disaster if you’re not careful in considering intangible risks like choosing a location and the susceptibility to bushfires, certifier or council fees or the fluctuation in material costs. In this blog, we’ll discuss the risks and hopes of building from scratch, as well as turn-key inclusions that could save you time and money down the road.
While you’re carefully reviewing the turn-key inclusions of your new home, it’s important to consider the following risks and elements that might not be included in your contract.
Fluctuation in Material Costs
2021 has seen a huge backlog for building and construction materials globally. Fuelled by the Covid-19 pandemic supply chain issues, border restrictions and trade interruptions had significant impacts on the industry. When demand is high but supply is low economically prices inflate and rise. We saw this happen with price increases to total building material costs across the wider construction industry. The pandemic or any future supply issues can arise seemingly out of the blue and may lead to a situation of having to re-negotiate terms with your builder or stagnation and delay in the building of your turn-key home.
Council Fees
While paying taxes in Australia is a chore to some taxation in Australia is used to fund a wide range of programmes, services, and infrastructure by all levels of government for the benefit of all citizens. Council rates are a form of property taxation and unfortunately, unavoidable. Before building it’s important to look up the local council of the area and familiarise yourself with the fees and rates that may be applicable to your new home that won’t be listed in a contract as a turn-key inclusion by your builder.
Building Certifier
A building certifier is a trained professional who is familiar with all of the construction industry’s laws, building codes, and local regulations. As a result, a building certifier is a person in charge of ensuring that any construction, whether new or renovated, meets council approval. Without their assistance, your turn-key build will not be able to obtain a permit or permission to occupy the premises once completed. Building certifiers offer competitive rates, so seek quotations from a few and choose the one that provides the greatest service at the best price. Compare their quotes to ensure that you’re getting the same level of service.
Property Position Risk
With any new turn-key home build, it’s important to do your due diligence when considering what risks might come with the property. Consider the risk profile of the location with questions like – Is it located in a valley prone to flooding or falling rock? Or at risk of bushfires in the summer? Be prepared to accept the level of risk you are comfortable with before signing any contracts to build your new home.
At Haverton Homes, we avoid budget surprises. If you are wondering what kind of contract best suits your home build, get in touch with a member of our team. We will run you through our contract structure, estimates and make sure you have all the information you need to confidently sign a contract and start your new home build.
