Frequently Asked Questions

You should start by understanding your budget. This will give you a realistic idea when it comes to deciding where you can buy land and the type of house you can build. 

If you are planning to build you need to have a clear picture of all of the costs involved in buying the house as well because there may be costs that aren't considered from the start.  

Buying land in new estates has numerous advantages, such as being able to choose the street type, house location, solar aspect and size of the lot. 

In addition, many estates prepare lots so they are ready for building and require minimal siteworks. This can save significant amounts of time and other expenses when compared to buying vacant land in existing neighbourhoods.  

No, you generally do not have to pay the full amount at once. Instead, you will need to pay progress payments.

Progress payments are instalments that are paid to a builder during the house construction phase. The first payment is usually a deposit that is made before the commencement of the build. The next payment usually then occurs when the concrete slab goes down on the block. By using Progress Payment, the money required for the building project does not need to be paid up front.

The value of the land being sold, the location and whether it's an investment, established home or newly constructed home will determine the amount of stamp duty that you will have to pay.  

First home buyers can receive significant reductions in the amount of stamp duty required.  

You can refer to REIWA's Stamp Duty Calculator to get an idea. 

You should speak to your Mortgage Broker or bank about your specific circumstances.

Keep in mind that a deposit of less than 20% may require the additional expense of a Mortage Protection Insuruance. 

Yes, it’s a good idea to speak to a Mortgage Broker so you can get a clearer idea of your budget. You will also get assistance and advice with the financial process of buying land and building your new house. This will include finding the best loan options, completing various financial documents and submitting applications correctly.

Mortage insurance protects the lender in case a borrower is unable to pay their loan.

You will generally need to pay Mortgage Protection Insurance when a deposit of less than 20% of the purchase price of the property is made.

You should speak to your Mortgage Broker for specific advice on your personal circumstances.

Settlement refers to the point of time in which the buyer officially becomes the owner of the property.

A settlement agent is the person who deals with the legal issues surrounding the transfer of ownership of a block or house from one person or company to a new person or company.

A Settlement Agent is therefore the person who handles the process of that land becoming yours on the nominated day. That can only be achieved once you've got your finance approved, your titles are issued and it becomes what we call unconditional.

Your contract will state that your settlement date will be 14, or 21 or 28 days from these trigger points or on this certain day and that is the process of that land finally becoming yours.

That is the day when your mortgage will start if you are borrowing money. Your settlement costs can range anywhere from a few hundred dollars up to $2000. 

Zoning places a restriction on what land can be used for.

In Western Australia, zoning falls within the following categories of residential, commercial, industrial, mixed use, public use and agriculture.

Local governments use these zoning laws to regulate what type of construcution can happen on specific areas of land within their jurisdiction. 

You should consider how many bedrooms and bathrooms you need for your current situation, as well as your future needs.

It's a good idea to visit the websites of a number of residential construction companies in WA. These websites will show floor plans to help you choose the layout of your new home. 

You can download our Checklist that can help you answer a number of important questions. 

In many cases, the floor plan should be used as a guide. You can then make adjustments to the size of particular rooms, and add your own details that suit your needs.  

Display homes can help you get a sense of different floorplans and sizes.

However, most display homes feature top end design specs that will cost more than the advertised price. 

Buyers should be clear on their budget before making any purchasing decisions based on display home visits, because the additional costs of extras such as high ceilings and expensive flooring can quickly add up.

When considering a block purchase, make sure you check that the house layout (orientation) is permitted on the site. You also need to check the clearance distances that are required and the percentage of your block that must remain unbuilt.

Before construction can start, the buiding plans need to be worked on and finalised between yourself as the owner and the building company representative.

This is the time to modify and confirm the floor plan, including the location of windows, power outlets, garden taps and so on.

Once agreed upon, the plans will be submitted for approval. It is worth keeping in mind that any adjustments to plans once they have gone through steps in the process can be expensive.

Siteworks includes the work that needs to be done on your land before the house construction can begin. This can include:

• removing obstacles such as rocks and plants
• improving the sand quality in areas with high clay content
• digging and installing soakwells
• building retaining walls
• installing plumbing and sewerage
• installing water, gas and electricty

In some cases, siteworks can be 'hidden costs', so it is worth asking your builder and land developer many questions about the siteworks phase of construction before you sign off. 

The construction phase includes the following:

1. Concrete slab down

2. House frame and ceilings

3. Lock up

4. Fixtures and fittings

5. Completion and final inspection

6. Key handover and move in