WEALTH HUB JOURNAL

Property Construction — All Your Questions Answered

When you’re building your own home, it’s normal to have questions. Understanding the timeline, what goes into each stage of construction, and exactly what’s expected of you can be confusing.

In this article, we’ll look at each construction stage and how long you should expect it to take, and we’ll answer some of the most common questions homebuilders have.

Let’s get started.

What Happens Once I Pay My Deposit?

After you pay your deposit, all necessary building permits and drawings will be gathered by the builder. When the permit certificates are issued and construction on your new home is set to begin, our client services team will contact you.

What Goes into Each Stage of Construction?

As your new home goes through the seven stages of construction, our client services team will send you photos of the progress. They’ll keep you up to date as the build progresses through the stages, so you’ll know what’s happening with the construction at all times.

While the time for each stage will vary depending on the design and size of the project, generally total construction will take 6-8 months.

Here is what each stage of construction involves and how long it generally takes to complete each stage:

Stage 1 – Clearing the Site

What’s required at this stage, and how long it will take, varies for every construction depending on the land. Often, this includes site levelling and clearing, as well as soil testing. This all takes place before construction on the home commences.

Stage 2 – Creating the Slab (2-4 Weeks)

This is where the foundation of your new home is established. To lay the slab or base, the builders first will measure out the design of the home. Then they will:

• Pour footings
• Construct the under-slab drainage to prevent water from ponding beneath the concrete
• Establish a moisture barrier
• Place a protective mesh to discourage termites.

Stage 3 – Building the Frame (4-6 Weeks)

In this stage, the builders will establish the internal and external support structure for your new home. This includes walls, the roof, insulation, and gutters, as well as conduits for electrical and plumbing.

Stage 4 – Lockup (6 Weeks)

By this stage, your home will be coming together. The last walls will be built, and the doors and windows will be in place. You can actually turn the key in the door at this point, securely locking up your new home.

Stage 5 – Installing Fixtures and Design Features (6-8 Weeks)

At this “fixing” stage, you’ll see plumbing, lights, and power points go into your home. You’ll also see design elements like architraves, reveals, tiling, cabinets, cornices, and shelving. Various other details will start to be filled in as well.

Stage 6 – Practical Completion (8-12 Weeks)

At this stage, the rest of the details have been added to your home. Up until this point the build has been a rough shape of the home you’ve been envisioning, but now it’s a detailed reality. The walls are painted, all the fixtures and fittings are in place, and there’s nothing left to add except you and your personal belongings.

Stage 7 – Handover

This stage includes compliance certification and the physical handover of the keys to your new home. Now you can move in!

FAQs

We’ve covered what must take place before the build can begin and what goes into each stage of construction, but you likely still have questions. Here are answers to the most frequently asked questions about building a new home.

When do I make progress payments?

Progress payments occur when the build advances through each stage of construction. The “progress claim” schedule will be detailed in your building contract. You’ll be invoiced upon completion of each stage.

Simply sign the tax invoice you’re given and return it to us at Wealth Hub Australia. From there, your signed invoice will be passed on to the next bank so the next drawdown for your construction loan can be authorised.

Upon payment, the builder will proceed to the next stage.

How much do I have to pay at each stage?

This varies for every construction, as it’s based on a percentage of the total costs of the build.

Do I pay this out of pocket?

This is all funded through the loan, so you don’t have to pay anything out of pocket. In circumstances where we settle on the land component only, we’ll need to make shortfall payments from your equity release.

What’s a shortfall payment?

A shortfall payment comes from the equity release loan, and it’s the sum contributed at each construction stage.

Do I pay the interest during construction?

Your equity release includes a buffer that will cover the interest component while your home is being built. For instructions on how to do this, simply call our finance department at any stage.

How do I release the payment?

To release the payment, we create a progress payment authority form. Our finance team will prepare this form and send it to you for your signature. When we have your signature, the inspections will be performed, and the bank will be told to release the funds.

Wealth Hub Australia Can Help You Build Your Home

There’s a lot to navigate when building your own home, and the process can be stressful and full of questions. This is especially true with recent construction delays, inflation, rising interest rates, and uncertainty around property prices. Despite the unpredictability today, numerous Australians are undertaking the home-building process for the first time.

At Wealth Hub Australia, we’ll get you to the finish line. Through our results-driven process, our referral network will help you maneuver Australia’s complicated tax landscape, reach your goals as a property investor, retire well, and achieve financial security.

Contact Wealth Hub Australia today for a free assessment.

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