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Before you build

before you build There’s plenty to think about well before building begins. Follow our top tips to ensure your build goes smoothly.

What can you afford?

• Have you calculated your total budget, including legal fees, the cost of the land, land evaluation fees, rates and taxes, stamp duty, site works, landscaping and moving expenses?

• Do you qualify for finance and, if so, how much are you eligible to borrow? Find out if a bank, building society, mortgage broker or an independent financial adviser is the best option for you.

The Australian Securities and Investment Commission (ASIC) consumer website, MoneySmart, is a great resource for people who need more information or advice about home loans. Go to www. moneysmart.gov.au.

• Have you allowed an extra 15 per cent to cover any unplanned additional expenses such as price increases, delays or changes to your plans after building has begun?

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• Are you eligible for any financial assistance from the government to build your new home, such as the First Home Owner Grant Scheme (all states), benefits for building in regional areas or stamp duty concessions or exemptions? To find out whether

you can take advantage of these benefits, contact the relevant government body in your state: Office of State Revenue (NSW, WA and Qld), the State Revenue Office (Victoria, ACT, Tas), RevenueSA or the Territory Revenue Office (NT).

Before you build

the local authority to see whether or not there are any special building requirements?

•A re you informed about the availability of gas, water, sewage and electricity?

•A re you fully aware of the extent of site works needed (such as tree removal, levelling, retaining walls, removal of clay or rocks, extra drainage etc)?

• I s your block located in a high bushfire risk zone or flood-prone area? If so, certain building requirements may apply.

Choosing the land •D oes the area you’ve chosen to build in meet the needs of your family? Find out about schools, transport, shops, parks, medical services etc. If you are building in a new residential development, find out whether these amenities will be available in the future.

•H ave you checked with the Land Titles Office in your state to find out if the land has any 3 | BUILD HOME | www.completehome.com.au

encumbrances, easements or restrictive covenants, or whether there is likely to be any delay in subdivision approvals that might prevent the builder lodging plans with the local authority?

•C heck with the local authority to see if there are any future subdivisions, road changes or any special building conditions that apply. If it’s a Strata Title block, have you checked with

Before you build newspaper. It is usually helpful to introduce yourself to your neighbours and advise them of your proposed plans before lodging your DA. If your DA is approved, council will issue a development consent, which is usually subject to conditions.

• I n some states, once development approval has been granted, you may also be required to obtain a Construction Certificate, Occupation Certificate or similar. Contact your local council to find out exactly which documentation you need.

Building on a Strata block

Council approvals • I n all states, most residential building work requires an approval before it can begin.

Before you enter into a contract, and well before any work begins on your site, you must check if your work needs an approval with your local council or other building professionals such as town planners or accredited private certifiers.

• Some residential building work requires a development application (DA) to be lodged with your local council. A DA covers the use of land, subdivision of land, erection of a building, the carrying out of work or demolition of a building.

Information on how to lodge a DA is available from your council’s website and customer service centre. Your council can also tell you if your proposal is permissible and what planning controls apply to your site.

• Once a DA is lodged, the council may notify your neighbours and advertise the DA in the local or regional 4 | BUILD HOME | www.completehome.com.au

• The growing shift toward high-density housing means two or more homes are often built on single blocks of land.

Developments of apartments, townhouses and duplexes are increasingly common in most capital cities. These developments often have Strata Title land ownership, which means at least two owners share in common the land not included in their respective dwellings.

•U nder a Strata plan, the boundaries of a unit are defined by the structures in a building, such as the walls, floors and ceilings, rather than by the land. There must be an area of common property, which is administered and maintained by a strata corporation. All unit owners are automatically members of the corporation. trata Title owners may share •S some building maintenance and repair responsibilities.

Before signing a contract, make sure you understand your responsibilities and the financial contribution you’ll be required to make to maintain common areas.

Before you build

Choosing a builder • Do your research before choosing a builder. Ask friends and family for recommendations, search trade directories, or contact industry associations such as the Master Builders Association (MBA) or Housing Industry Association (HIA) for a

list of reputable builders. Be sure to obtain at least three quotes from different builders, see examples of their work and try to speak with past clients.

•C heck with your relevant state body to ensure your chosen builder is properly licensed: NSW Fair Trading, the Building Services Authority in Queensland, the SA Office of Consumer and Business Affairs, the WA Building Commission, the Office of the Director of Building Control in Tasmania, Building Advisory Services in the NT or the Building Commission in Victoria. efore you sign the contract, •B your builder should give you the required supporting documents and checklists. If you are building a new home in NSW,

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for example, check you have received a copy of NSW Fair Trading’s Consumer Building Guide and contract checklist.

Other states’ building authorities have similar guides available.

Do not sign the contract unless you answer ‘yes’ to all of the questions in the checklist.

•R emember, the builder has a legal responsibility to ensure the work is carried out in a proper and professional manner. If necessary, there are government departments and bodies in each state that help consumers and builders resolve building disputes, and also offer advice on how to prevent building disputes from arising. However, you should try to resolve any problems or disputes directly with your builder in the first instance.

Ready, set, GO!

Getting ready to build •S et up a simple filing system to keep track of the building process. You need plans, permits and invoices at your fingertips.

• Visit a number of display homes, kit homes and customdesigned homes to gauge the different options and to clarify special offers.

• Think about what features are must-haves and what’s on your wish list. This will ensure your new home suits your needs, desires and lifestyle, as well as making it easier to cut costs if need be.

• Are you happy with the type and dimensions of the materials used, such as the thickness of the wall slabs, type of brick to the inside walls, roof framing, roof tiles, wall plaster or finish? Ask an independent expert for an opinion.

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• I f buying a display home, have you checked that the model you are purchasing includes all the features you expect? Remember to check the contract and specifications.

•D o you fully understand what is – or is not – included in the price?

Make sure you have everything in writing, including features such as driveways, fencing, hot water service, light fittings etc.

Ready, set, GO!

• If the plans were prepared to your instructions, ensure no copyright laws have been infringed by using any part of someone else’s designs. If in doubt, check with the Australian Copyright Council on (02) 8815 9777 or www. copyright.org.au.

ready, set, GO! With construction of your dream home set to begin, do your homework to make sure the build is hassle free.

Checking your plans • Check all the plans and specifications thoroughly. Make sure you fully understand the plans and all the symbols used.

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If plans are drawn up in advance of a building contract, check with your local authority that they will be approved without any major amendments.

• If you have chosen a display home, take the plans along and check the features, measurements of rooms and furniture installed.

Check any changes or extras are included.

• Ensure all your selected materials and design changes are included in the drawings and/or specifications. Variations made after the contract is signed may incur a fee.

• Check that your plans comply with the Building Code of Australia’s six-star energy efficiency standard.

Ready, set, GO!

Before you sign the contract • I nsist on using a recognised form of building contract, such as those published by the HIA or MBA. Some state building authorities also offer a range of contracts; for example, the BSA’s Major Works Contract for residential work worth more than $40,000 complies with Queensland’s Domestic Building Contracts Act 2000.

• Read, check and make sure you understand all contract documents thoroughly. You should strongly consider seeking legal advice from a solicitor who specialises in home building matters to review and help make your contract clear before you sign on the dotted line. They will also offer advice on any areas that require changes. Remember, rights such as implied warranties and other rights under state and Federal domestic building acts cannot be signed away.

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•H ave you received a valid certificate of home warranty insurance from your builder?

•H as the builder confirmed that they have obtained and reviewed the foundation data?

•D oes the contract require the release of progress payments at various stages of construction and, if so, are the terms satisfactory to you and your finance provider?

•D o you intend to provide any materials for your home, such as a spa, kitchen equipment or light fittings? If so, check whether the builder’s insurance covers the loss or theft of these materials from the site or damage after installation. heck the dates or time periods •C that the fixed-contract time is scheduled to start and finish.

Establish what your rights and builder’s rights are if the builder

runs over the original contract construction time.

•H ave you filled in the liquidated damages clause? Is the amount sufficient to cover your losses if the home is not finished on time? Take into account the cost of rent, storage and other outof-pocket expenses.

• Ensure the contract documents are fully complete. There should be no blank spaces and the contract should include everything that has been discussed.

Ready, set, GO!

Once construction starts •H ave you been given the name and phone number of your contact person in the builder’s office?

•A rrange to confirm all important agreements or comments in writing throughout the entire building period.

• Ensure you have received a claim from the builder for a progress payment – do not make payments in advance!

Carefully check that the work is properly completed up to the appropriate stage or secure the services of an independent 9 | BUILD HOME | www.completehome.com.au

building consultant to do this for you.

• Purchase a diary to record all the day-to-day happenings with regard to your build, including discussions with your builder.

• Your builder will advise you when the home has reached ‘practical completion’, which means the property is now habitable. Check every aspect to ensure you are satisfied that your new home is fit to live in before handing over the final payment. Remember, you have made a financial commitment to your builder to pay in accordance with the conditions of the contract before obtaining your house keys.

Finishing touches

finishing touches You’ve got the keys, your boxes are packed – all that’s left to do is move in and make the house your home.

Moving in •M ake a note of any minor defects and arrange to provide a list to the builder.

•A rrange connection of the telephone and internet (you can organise for cabling to be carried out during construction), gas and electricity.

•A dvise the water board, local council and post office that you have moved. Arrange for your mail to be re-directed to your new address. pdate your address details •U with the electoral office, banks, employers, Medicare, insurance companies, schools and professional associations.

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Ask the experts

Ask the experts Questions about your build? Our experts are here to help.

Going green Q: How can I minimise the carbon footprint of my new home?

A: “Most Australians building or renovating their own homes take an interest in issues like energy efficiency, water use and the carbon footprint of building materials,” says Master Builders Victoria’s Dr Philip Alviano. Reduce your property’s impact on the planet by: • Maximising heating and cooling through building orientation, ventilation, glazing and other mechanisms.

• Choosing energy- and waterefficient appliances.

• Choosing building materials that minimise embodied energy.

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• Retaining and re-using stormwater and grey water.

A Master Builders-accredited Green Living Builder can help you make the best eco-friendly choices for your new home.

Stumped for storage Q: We’re building a very sleek, modern home. It’s beautiful, but there’s not a lot of storage space.

What can we do?

A: Good storage facilities are essential in any home, but they’re especially important in small spaces, such as townhouses, duplexes and apartments. This means that every corner and every piece of furniture should be scrutinised for its storage potential.

Today, we are blessed with an

abundance of modular, integrated and built-in storage options. Wall shelving integrated into any room, whether it’s the living room, kitchen, bedroom or bathroom, will never be money wasted. If the space in the room is limited, paint shelving and support brackets the same colour as the walls so you don’t create ‘visual opposition’ between the wall and the shelves.

Window seats are always a good idea, while freestanding wooden chests and blanket boxes can be more useful than coffee and side tables.

Never underestimate the potential of the ceiling to provide storage solutions. Hang metal grids or even an old window frame on short chains to hold basketry, utensils and gadgets.

Useful contacts FINDING A BUILDER Housing Industry Association hia.com.au 1902 973 555 (calls charged at $2.75 per minute) Master Builders Australia (02) 6202 8888 www.masterbuilders.com.au

UNDERSTANDING YOUR RIGHTS AND GENERAL ADVICE NSW Fair Trading 13 32 20 www.fairtrading.nsw.gov.au ACT Planning and Land Authority (02) 6207 1923 http://www.actpla.act.gov.au/

home hounds Need more information? Look no further than our handy contacts guide.

HOME LOANS

www.osr.qld.gov.au

MoneySmart 1300 300 630 www.moneysmart.gov.au

State Revenue Office Victoria 13 21 61 www.sro.vic.gov.au

GOVERNMENT BENEFITS FOR NEW-HOME BUILDERS

Office of State Revenue WA (08) 9262 1400 www.finance.wa.gov.au

NSW Office of State Revenue 1300 130 624 (First home owner benefits) 1300 139 814 (Stamp duty enquiries) www.osr.nsw.gov.au ACT Revenue Office (02) 6207 0028 (First home owner benefits, stamp duty enquiries) www.revenue.act.gov.au Office of State Revenue Queensland 1300 300 734 12 | BUILD HOME | www.completehome.com.au

State Revenue Office Tasmania (03) 6233 3100 www.sro.tas.gov.au RevenueSA (08) 8226 3750 (First home owner benefits) (08) 8226 3750 (Stamp duty enquiries) www.revenuesa.sa.gov.au Territory Revenue Office (NT) 1300 305 353 www.revenue.nt.gov.au

Queensland Building Services Authority 1300 272 272 www.bsa.qld.gov.au Consumer Affairs Victoria 1300 558 181 www.consumer.vic.gov.au Building Commission (Vic only) 1300 815 127 www.buildingcommission.com.au Consumer and Business Services (SA) 131 882 www.ocba.sa.gov.au WA Building Commission 1300 489 099 www.buildingcommission.wa.gov. au Office of the Director of Building Control (Tasmania) 1300 366 322 (inside Tasmania) (03) 6233 7657 (Outside Tasmania) www.wst.tas.gov.au/industries/ building/director NT Building Advisory Services (08) 8999 8961 http://www.lands.nt.gov.au/building/ about-us

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It is intended to provide general news and information only. The content does not take into account your personal objectives, financial situation or needs.

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All information is current as at publication release and the publishers take no responsibility for any factors that may change thereafter. Readers are advised to contact their financial adviser, broker or accountant before making any investment decisions and should not rely on this e-book as a substitute for professional advice. This information is to be used as a guide only and is subject to change at any time. ©2013 LJ Hooker Corporation Limited.

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