Choosing the right builder for a new home build is one of the most crucial steps in the process to ensure the property performs well in the long term.
There are a few key things that all investors and homebuyers should take into consideration before selecting a builder to proceed with, many of which are often overlooked.
It is always best to start by knowing precisely what your budget for the build is. Builders tend to specialise anywhere from entry-level finishes and mid-range projects to the top-end or custom finishes.
Is this purchase a stepping stone to get you to where you want to go? Or is this your forever home?
It is important not to overcapitalise or undercapitalise if the long term objective is to sell.
2. Turnkey Solution.
Builders will often use a low price as a “hook” to get a purchaser motivated, however it is very important to know exactly what is included in the package you are paying for.
Assess if the price provided by the builder provides everything, this is known as a turnkey solution - meaning there is nothing left to do besides move into the property.
The total price must include everything from landscaping and window coverings to post boxes and more.
You would be astounded at what extras or variations can cost which could leave you with an unfinished property.
The builder must have significant experience and must hold the appropriate license required to undertake the construction as detailed in the contract of sale.
For example, if you are planning to build a house and the builder has never built a house before, but are experts in units, simply put, look elsewhere. Spend the time inspecting their past projects and speaking to those who live there about their experience and the end product.
Like everything in life, a good referral goes a long way, especially when you are purchasing a property for yourself to live in or for investment purposes. Good builders should encourage you to speak to their happy clients.
5. Sourcing A Good Lawyer.
On the contractual side of the build, you will want to understand every element of the contract. A lawyer experienced in property is essential.
A new home build is a large decision, therefore the proper due diligence on all aspects of the process must be conducted to avoid disappointment.
To stay up-to-date make sure you join our Property Market Pulse Newsletter here.
Warren Jacobs - Senior Property Investment Consultant at Meridian Australia
P: (02) 9939 3249
Disclaimer: When considering purchasing a property, it's always prudent to seek the advice of an appropriately qualified professional to determine which strategy is most appropriate for your individual circumstance.