Introduction

Advantages of building

• Brand new means a blank canvas
  Building a brand new home means you can create your own style and character from the outset. There are countless designs and sizes to choose from so you can select the home that perfectly matches your needs.
• Built to suit modern lifestyles
  New homes today are designed to use every inch of available space and provide flexible living options to suit people at all stages of their lives. They are also likely to higher quality fixtures and fittings than older homes.
• Be part of a new community
  Moving into a brand new home is a great opportunity to join an emerging community and make new friends who are also starting fresh.
• Enjoy peace of mind and stay safe
  New homes are designed to meet today’s high building standards for structure, ventilation, sound insulation and fire safety so you enjoy an safe and secure environment. Most new homes also come with an insurance-backed warranty for a specified period for added peace of mind.
• Help the planet and save money
  New homes are designed to be more energy and water efficient than ever before. Improved energy and water efficiency is great for the environment and also saves money on your household bills.

Visa Considerations

Finance

Before you set your heart on a particular home design or location, it is a good idea to work out exactly how much you can afford to spend. Your bank or a mortgage broker will be able to help you determine exactly how much money you can borrow, how much repayments will be, and how much deposit you’ll need to have saved. As a guide, most Australian lending institutions will require at least 5-10% deposit (i.e. they generally lend as much as 90-95% of the purchase price).

It is also necessary to take into account the additional "hidden" costs of buying. In Australia these costs include:

• Government charges e.g. stamp duty on land
• Loan application/establishment fees
• Mortgage insurance
• Legal expenses e.g. conveyancing fees
• Inspection expenses

The table below provides an example of the typical costs associated with buying a $500,000 property. These numbers are approximate and should be used as a guide only.

Total Purchase Price	$500,000
Settlement Fee	$1,500 - $2,000
Stamp Duty	$20,000
Transfer Fee	$178

Loan application fees and mortgage insurance will be dependent on your individual loan requirements and your lender. You may not be required to pay mortgage insurance if you have a significant deposit amount.

Some concessions and grants are available to certain purchasers in WA. For example, first home buyers (permanent residents only) may be eligible to receive the governments First Home Owners Grant of up to $21,000 and may also be exempt from paying stamp duty if the total purchase price is less than $500,000. You should speak to your bank or mortgage broker about whether these and other benefits apply to you.

Some developers, such as Stockland, employ their own finance brokers that may be available for you to speak with at the sales offices. This can be an easier alternative than seeking out another broker.

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Choosing Your Block

Location

A land estate generally incorporates several hundred or sometimes thousand home sites and a number of community amenities such as schools, shops, parks, playgrounds, community centres and cafés to name a few. Some major areas of development currently include:

• Baldivis and Rockingham to the South e.g. Settlers Hills;
• Forrestdale, Armadale, Byford and Southern River to the South East e.g. Newhaven and Vertu Private Estate;
• Landsdale and Ellenbrook to the North East e.g. Corimbia (new Stockland community coming soon);
• Burns Beach, Butler, Jindalee and Yanchep to the North.

Vacant land in established areas, particularly close to the city or in coastal suburbs, tends to be much more expensive than in new developments, as it is generally quite scarce. New developments are not only more affordable, they also usually have brand new infrastructure such as schools, shops, parks and other amenities.

It is important to choose an area that suits your lifestyle. Some things to consider include:

• Travel time/distance – to your friends & family and work, public transport links;
• Important amenities – shopping facilities, medical centre etc;
• Education – childcare, preschool, primary & secondary schools, universities, technical colleges (TAFE);
• Recreation – beaches, parks, sporting facilities, entertainment etc; and
• Environment – do you like the existing homes in the area and are you drawn to the natural features e.g. natural bushlands, wet lands, mature trees etc?

Your Land

• Frontage – blocks with frontages of under 15m are suited to cottage style houses, whereas frontages of over 18m fit larger "traditional" houses;
• Corner vs. regular block – corner blocks can be advantageous if you would like side access;
• Orientation – it is preferable in WA to have living areas facing north, to make the most of the sun;
• Shape – while regular rectangular blocks are normally preferable, an irregular block may create additional space for your backyard or pool, and
• Privacy – check whether neighbouring blocks will overlook your backyard.

Some great places to start looking for land are websites such as realestate.com.au and reiwa.com.au or Aussiemove's Residential Developments Page. Once you have chosen a home site, or at least the area that you would like to live in, the next step is to decide what sort of house you would like to build.

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Choosing Your House

When looking for a suitable house to build some things to consider include:

• How many bedrooms do you require?
• Do you need a home office (study)?
• Would you prefer single or double storey?
• How many vehicles do you need to park?
• Do you want a large alfresco/entertaining area?
• Are you willing to sacrifice living space for a larger backyard?

Once you have found the right house to suit your needs you will need to make sure that it will fit on the block of land that you have in mind. Many people find the house that they want first, and then choose a block of land that suits. You will need to consider how much space you want in your backyard, and whether you would like to install a pool. Land and builder sales consultants will be able to help you with this. Many developers and builders also offer house and land packages, providing an easier solution.

When you have decided on the house that you want to build and found a suitable block, you can proceed to purchase the land and sign a building contract. If you happen to find a block that you like, but aren’t sure what or when you want to build, you can buy the land and build at a later date. Some new communities do however impose building time restrictions on the land e.g. house to be completed within 2 years of land purchase.

Display homes & specifications

Some examples of specifications that may vary from the display include:

• Kitchen fixtures – bench top material, dishwasher, sink, faucet etc.
• Bathroom & kitchen fixtures – bath, shower rose, taps, mirrors etc.
• Paint – colour, type & quality
• Floor coverings – type & quality of carpets, floorboards, vinyl, tiles etc.
• Electrical fixtures – type & number of power points, light fittings etc.
• Windows & doors – materials, locks, trim etc.

Outdoor specifications that may be necessary to check include driveway & paths, garage door, patio, mailbox etc.

Positioning the house on your land

• Take advantage of summer and winter sunlight by positioning rooms appropriately
• Make use of WA’s cooling Westerly sea breezes (Fremantle Doctor), and protect the house and outdoor areas from strong prevailing winds
• Have enough privacy from the street and your neighbours without compromising visual appeal
• Take advantage of any views over parklands, waterways or hills to the east

Your builder will also be able to help you ensure that your house design and positioning complies with all of the relevant building regulations in your council area and meets the criteria of any design guidelines or covenants set by the developer.

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The Building Contract

As a guide, your building contract should specifically contain:

• Building plans & specifications;
• Warranty details (builder insurance);
• Builders written quote (contract price);
• Financial lenders requirements (e.g. approvals and inspections);
• Details on the impact of variations or late completion; and
• A listing of construction standards.

You will normally pay a deposit once your building contract is signed, by law this deposit must not exceed 6.5% of the total cost of the work. Usually you will also be liable to pay progress payments throughout construction, these payments must be stipulated in the contract and must only be claimed for work actually completed or materials already supplied. Contract price rises under ‘Rise and Fall’ clauses are prohibited under the Home Building Contracts Act 1991, meaning that the contract price must be ‘fixed’.

Consumers are also protected in the case of workmanship defects. Builders are liable to make good defects in home building work where notified in writing within 4 months of practical completion. This is to be at no extra cost to the homeowner. The Builders’ Registration Act 1939 also gives power to the Building Disputes Tribunal to issue an Order to Remedy on a builder where work is found to be faulty or unsatisfactory up to six years from completion.

For more information about builders and building contracts, visit the Builders Registration Board of WA’s website.

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The Purchase Process Finance – pre approval

Your mortgage broker will be able to determine exactly how much money you can borrow, how much repayments will be, and how much deposit you’ll need to have saved. As a guide, most Australian lending institutions will require at least 5-10% deposit (i.e. they generally lend as much as 90-95% of the purchase price).

Online calculators are also a good starting point for your finance research, try an example on the Stockland Home Finance website.

When you have determined the right finance option for your purchase your mortgage broker should be able to provide you with pre-approval. Having pre-approval for a home loan will give you confidence and security when you make an offer on a property.

Choosing your property

Offer and Acceptance

Once the contract is formed you will normally be required to pay a deposit within a specified period (commonly 7 days). The deposit amount is usually between 1% and 10% of the purchase price.

In the O&A you will need to specify a settlement agent (conveyancer) who will act on your behalf and see the contract through to settlement (transfer of ownership). The vendor of the property will also nominate a settlement agent.

Finance Approval

If you are making a "cash" offer (where you don’t need a mortgage) then the finance approval period will not apply.

Settlement

On the day of settlement you will become the new owner of the property. If you are buying an established house the keys to your new home will be handed over. If you’re buying a block of land, your builder will be able to start the construction of your new home.

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The Building Process This flowchart is based on the construction of a standard single-storey, double-brick house and should be used as a guide only.

Pre-Construction

Preparation of plans & specifications Sign building contract Finance approval Developers approval Building licence application & approval Settlement on land (see also purchase process)

Site Works

Commence construction Earthworks – clearing & preparing the land Foundations – footings & slab laid

Brick Work

Delivery of bricks and windows Construction of walls – each row of bricks is called a "course" Fitting of door frames Fitting of window frames and windows

Roof Structure

Delivery of roof timber or steel Roof carpentry Fitting of gutters & downpipes Installation of electrical wiring & plumbing Roof cover

Plastering

Plaster "float" coat – internal grey render Installation of ceilings & cornices Plaster "set" coat – internal white plaster, ready for painting

Lock-Up

Lock up external doors & windows Fitting of internal doors & shelving Cabinetry Installation of bath, shower & toilets Wall & floor tiling

Finishes

Painting Electrical & plumbing completion Site clean & internal clean Paving (if included) Floor coverings Window treatments

Key Handover

Practical completion inspection (pre-handover) Completion of pre-handover items (if any) Handover & key collection

Fencing & Landscaping

If a fencing & landscaping package is provided by your developer, these works will be completed once you have given notice that building is complete.

Moving In!

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Glossary The following terms, relating to the process of buying land and building a house, may be unfamiliar to many new migrants.

Block
A parcel of land is commonly called a "block" but may also be referred to as a "lot" or "home site".

Settlement
The process of transferring legal title/ownership of real estate from vendor to purchaser – what would be called conveyancing in the UK. This is normally carried out by a settlement agent – someone qualified and licensed to perform the transfer.

Real Estate Agent / Realtor
A person representing the vendor (seller) of property (real estate) and negotiating on their behalf – an "estate agent" in the UK.

Offer & Acceptance (O&A)
The contract of sale. A potential purchaser makes an offer to the vendor (seller) via the real estate agent, and the vendor can accept, reject or counter-offer.

"Subject to Sale"
Where an offer is made to purchase a property subject to the sale of another property. Allows buyers to enter into a contract before they have sold their current home.

Certificate of Title
The document which details ownership of land. It is kept by the Land Registry Office (Landgate) and the land owner usually has a copy. Mortgages and other encumbrances are normally registered on the Certificate of Title.

Green Title
The common name given to the traditional block of land, which is not linked to or directly affected by adjoining blocks. The opposite of this would be a Strata Title.

Strata Title
In a strata title, there is some area of land which is shared with other strata title holders. This normally applies to two or more units or townhouses which have been built on a subdivided block and share some land – commonly a driveway.

R-Codes (Residential Zoning)
A set of rules which determine the minimum size a block of land must be in order to have a single dwelling on it. Put another way; the maximum number of dwellings allowed in a hectare (10,000sqm). Each locality will be allocated an R-Code. For example, if an area is set as "R20" then a maximum of 20 houses may be built in a hectare, so each block must be a minimum of 500sqm. Higher R-codes (R40, R80 etc) indicate that higher-density housing is allowed.

Easement
A right that a party has to use a piece of land owned by another party – most common example being a right of way. Easements will be specified in a Certificate of Title.

Setbacks
The distance which must be retained between a building and the boundary of the block it is built on. Setbacks are defined in the Building Code of Australia (BCA). Typically, the "front setback" (minimum distance the house must be from the front boundary) may be 6 metres, whereas the setback from a side boundary may be 1.5 metres.

Subdivision
If a block of land is large enough, it may be possible to subdivide it into two or more smaller blocks and build a separate dwelling on each. This will depend on the Residential Zoning in the locality.

Duplex
If a subdivided block has two dwellings built on it, each dwelling is known as a duplex (three dwelling = triplex, etc). Duplexes may be unattached or attached to some degree, typically by adjoining garages. A block described as a "duplex block" or "duplex potential" is large enough, within it's zoning, to host two dwellings.

Battle Axe Block
Refers to a typical duplex subdivision, where one house is built behind another and there is a common driveway along one boundary – thereby producing the shape of a "battle axe" for the rear block.

Unit
In real estate, the term "unit" can have several meanings. It could mean an apartment (what may be called a "flat" in the UK), or possibly a small single-storey house in a group of two or more, built on a subdivided block and usually with a similar appearance. It could also refer to a "granny flat" - a small dwelling on the same block as the main residence.

Townhouse
A townhouse would normally be a two-storey house on a small block, with a small outdoor area – possibly a courtyard.

"4x2" – "four by two"
When describing a house, this means four bedroom, two bathroom (normally one shared bathroom and an ensuite bathroom off the master bedroom). Similarly, you will see 3x2's, 4x1's, 3x1's etc.

Theatre Room
A formal lounge room set up with the main focus being a television or projector screen. This type of room is very popular in new home designs.

Webzone
A dedicated room or area for computer use. Used to be called a "computer nook".

Ensuite Bathroom
A bathroom located directly off a bedroom. It is common for houses to have an ensuite bathroom off the master bedroom, comprising a toilet, shower and vanity/basin. The main bathroom shared by the other bedrooms would normally comprise a shower, bath and vanity/basin and a second toilet could be in this bathroom or separate. Another option is to have a "semi-ensuite" which is located off a bedroom but with a second entrance accessible to the rest of the house.

Eaves
The part of a roof which overhangs a building's walls, thus providing shade to windows below. Traditionally, in WA, eaves have been constructed around 600-900mm wide, which provides shade in summer and allows winter sun into the house.

Patio
The traditional meaning of a patio is a paved outdoor area, usually without a roof. However, in Australia, "patio" has come to mean the roofed structure over the outdoor "entertaining area". The patio is typically a timber or steel structure with a flat, gable or arched roof.

Alfresco
An outdoor meals area, usually paved and situated under a patio.

Slab
In the building sense, the "slab" is the concrete pad which forms part of the foundations of the house. "Slab down", meaning the slab has been laid, is the first major stage of house construction.

Lock-up
In the building process, once the roof is on and windows and external doors in place, the building can be locked up. Normally, internal work such as tiling, kitchen & bathroom furniture etc, will not take place until lock-up.

Practical Completion Inspection
Once your builder has completed the construction of your house, you are entitled to a practical completion inspection before the keys are officially handed over. Any items of repair can be raised at this time. This is also referred to as pre-handover inspection.

Progress Payment
Builders will normally require you to finance the construction of your home in the form of progress payments. This means you will need to make payments at certain stages of construction. Progress payments normally coincide with the following stages of home building: signing of building contract (deposit); slab down; plate height (walls constructed); lock-up; and practical completion.

Reticulation/irrigation
A watering system for the garden. When you build a home in a new development typically a landscaping package is given as a bonus which will include your "auto retic" (automatic reticulation) system. Usually this system will have a control unit at the side of the house or in the garage which allows you to set times for the garden to be watered, according to WA’s water restrictions. For more information on water restrictions visit www.waterwisewaysforwa.com.au.

Scheme Water
Drinking-quality (tap) water that comes from the pumped water supply.

Bore
Most houses water their garden from scheme water (see definition) - not the best use of a very valuable resource. In many areas of Perth, there is a natural source of water underground, which can be accessed by drilling a bore and pumping out the water for use on gardens. A significant number of houses have bores, saving the householder money on water consumption charges, as the only cost is the power to run the pump (plus any maintenance costs). Some houses have shared bores, whereby two or more houses use water from the same bore and share the running costs.

Grey water
Installing a grey water tank allows you to recycle the scheme water that you use in your Laundry into the reticulation system for your garden. This can help to significantly reduce the amount of water your household consumes, helping the environment and saving you money on bills.

Passive Solar Design
A house design methodology in which the aim is to use natural resources (sun, wind, plants) to their best advantage in order to maximise the comfort in a house and at the same time minimise the amount of energy used in heating and cooling. A major element in this design is to orientate a house so as to shade the living areas in summer and allow winter sun to penetrate. Passive Solar Design not only helps the environment by minimising energy usage, it can also contribute to significant savings in household bills.

Common House Plan Abbreviations:

BIR: Built-in Robe

B/G: Below Ground (Pool)

BRM: Bedroom

BTH: Bathroom

ENS: Ensuite

F/Dining: Formal Dining

F/Lounge: Formal Lounge

FAM: Family room

GDNS: Gardens

GGE: Garage

L’DRY: Laundry

LNGE: Lounge

L/UP: Lock up (garage)

SHR: Shower

V’DAH: Verandah (porch along the outside of the house)

WIR: Walk-in Robe

WIL: Walk in Linen (closet)

WC: Water Closet (toilet)

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