Hello Everyone,
I recently paid a deposit for a land (544sq m)in Wyndham vale. The title of the land is not expected until next year September, which is good as I don't have to get a loan immediately and can watch the price go up. I have this biggest question of whether to enter into a contract now to avail the FHOG and settle with an average square house or to wait for a year to be in a better financial position and build a bigger house.
Option 1 – Sign the contract for a decent size house before 30 June to get the FHOG
Option 2 – To wait a year and have a better choice of building plans.Option 1
Pros – Extra 13k towards construction.
Cons – To settle on an average sized house (15 or 17 squares); Rush to look for a builder and plans.Option 2
Pros – Better financial position to choose a bigger house and peace of mind to choose the best builder and plans.
Cons – Loose extra 13k; Construction cost might have gone up by 20-30% in a year.You can see where I am coming from. Both sorta have equal weights of their own. So if you guys can throw some suggestions/advice on what would be a wiser option, it can save me from a regret.
My advice would be to look at the area and what buyers and renters are looking for in the area. Do they want a big house? Can they afford a big house? Or does the majority of the market want a smaller more affordable house?
Giving the market exactly what it wants can pay big dividends. There are pros and cons to both your ideas, so find out which one has the best chance of making you more money.
Also depends if you want to sell straight away or not.
Idea: I don’t know if you can do this but seeing as you have paid a deposit on the land maybe you can see if you can build on it before September? That way when you finally settle you will have less time spent building the house. I don’t know if this is possible but it may be worth a look.
Ryan McLean | On Property
http://onproperty.com.au
Email MeThanks for your reply,
I forgot to add, this is my PPOR and I am looking at building anything over 17 squares.
Your idea sounds good if it can be done that way, but I guess not , as the construction cannot commence until the land is titled.
It all comes down to how desperately I need the extra 13k grant. I am not too sure if the construction cost would escalate too much in a years time. If so, id be better off signing the building contract now and locking it up at the current price.
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