Mr. Enthusiast’s Frequently Asked Questions

The building process can be confusing, particularly for those embarking on the journey to building their first home. Often, conversations and paperwork are littered with industry jargon and unfamiliar practices, making them difficult to decipher without the support of a reliable homes consultant. We encourage our clients to approach us with any queries they may have about the building process, and we’ve compiled some of the most frequently asked questions here. While we’ve tried to include as much information as possible (without causing more confusion), there will be topics not covered in the FAQs below, so please do not hesitate to reach out to our team should you have any further questions.

What is construction finance / a construction loan?

When building your own home, you will require a construction home loan. Most constructions loans will allow you to draw funds in what is generally referred to as a ‘progress payment’. As each construction stage is completed, your builder will issue an invoice and you can authorise your lender to make a progress payment to your builder. Many lenders offer construction home loans with interest-only repayment options during the construction period and for a set period of time following completion. Progress payments are generally paid upon completion of the following milestones:

• Once your slab has been poured;
• Once your brickwork has been finished;
• Once your roof is up;
• Once all your doors and windows have been installed; and
• Once your build has been completed.

Should I engage a mortgage broker that specialises in construction loans?

We strongly recommend finding a mortgage broker that has experience in construction loans. They will be best positioned to provide you with appropriate, up-to-date advice and should have existing connections with lenders. These connections will allow them to advise you on the most suitable finance options and negotiate with lenders on your behalf. A mortgage broker who specialises in construction loans will be familiar with all relevant timelines, council permits, zoning requirements relating to construction finance. Your mortgage broker will work diligently to ensure that all the paperwork is completed correctly and on time so it can be submitted to the lender without delay.

Mr Enthusiast has recently partnered with Oui Finance to give our clients the opportunity to work with an experienced, reputable finance broker. Maddison from Oui Finance specialises in construction home loans and has extensive knowledge of both the finance and building industries.

What is stamp duty? Do I need to pay it as a first home buyer?

Stamp (or transfer) duty is a tax that State and Territory governments impose for certain transactions, such as the purchase of a property.
First home buyers are exempt from paying stamp duty on a new property or land provided that:

• the property (home and land) is valued at less than $430,000; or
• the vacant land is valued at less than $300,000.

First home buyers will only be exempt from stamp duty if the property will be used as a primary place of residence.
If you are required to pay stamp duty, the total cost will depend on the value of your land.

Should I engage a settlement agent? What do they do?

A settlement agent will facilitate the transfer of property. This involves ensuring that general and special conditions that are specified in the contract of sale have been completed. For example, such conditions may include searching land titles and any restrictions on the property (such as encumbrances or caveats), which could interfere with your enjoyment of the land or affect transfer of the property. Your settlement agent will ensure that all the relevant paperwork is completed, and will confirm the settlement date and time with the lender and seller’s settlement agent.

Mr Enthusiast has partnered with Alpha Conveyancing, whose team of experienced and expert conveyancers will guide you through the settlement process and ensure that the transfer of property is achieved with ease.

Can you create a custom house and land package just for me?

Absolutely! If you have a particular area in mind, we will locate available land that’s in line with your budget and produce a house design to match.

Can I make changes to your existing home designs?

If you like one of our existing designs but have some changes in mind, then we’ll do our best to work with you to make it happen. If the change is not possible due to the nature of your land, or if it will impact your budget, we can discuss different options to find an alternative solution. Ultimately, we want you to achieve your dream home and will do our very best to facilitate this.

How do I know whether your home design will suit my block of land?

Each of our home designs can be found on our website, along with the frontage (i.e. the width of a lot, measured along the front boundary line). By comparing the frontage of your lot with the details provided with each of our home designs, you can begin to narrow your options. We will then use a to-scale plan to ensure that the home designs you’re interested in will work with your block.