This week, we’re diving into a topic that’s on the minds of many of my clients – Is building new the right choice? We’ve got some crucial advice to help you make an informed decision.
We often hear about the complexities of construction in the media, but there are steps you can take to ensure a smooth and successful new build.
1. Fixed Building Period and Penalty Clause:
When you’re in the process of negotiating your build contract, make sure it includes a fixed building period. A reputable builder will also have a penalty clause in place. If they exceed the agreed-upon timeframe, they’ll be responsible for a building penalty. This clause ensures they stay on track.
2. Turnkey Fixed Price:
A comprehensive build contract is a must. It should cover not only the construction itself but also elements like driveways, landscaping, curtains, blinds, letterboxes, clotheslines, soil tests, retaining walls, and fences.
These seemingly small additions can add up to a significant cost. Make sure everything is included in the contract before you proceed.
3. Licensed Builder:
Verify that your builder is licensed with the appropriate licensing board in your area. For instance, in Queensland, we have the QBCC.
Licensing boards oversee builders, checking their financial accounts, trading history, and any defaults against them. Having a licensed builder offers you an added layer of protection and assurance.
4. Check Builder’s Previous Work:
Take the time to look at your builder’s previous builds and construction projects. This can give you insight into their track record and help you make a more informed decision.
5. Have an Independent Expert to Oversee the Build:
Consider having an independent expert oversee your build. As a property buyer’s agent, I’ve managed numerous builds for clients, my family, and my own properties over the years.
An independent overseer can keep an eye on the project, ensuring it stays on track and meets your expectations. It’s a wise investment to have a professional monitoring the construction process.
One of the significant benefits of building new properties is the added value and equity you gain. In the current market, a brand new finished property often commands a higher price than a house and land package off the plan. This can make new construction a financially rewarding choice.
I hope these tips have shed some light on the process of building new properties. If you’d like to delve deeper into this topic or have any questions, please don’t hesitate to reach out. You can book a time in my calendar to chat by clicking here.
Thanks for tuning in, and I’ll see you in the next edition of Top Tips Tuesday.
Regards,
Geoff Tomkins
Buyers Advocate
PH: 0404 852 781
