Frequently Asked Questions￼
Frequently Asked Questions￼
While these might not answer all of your questions, below are some answers to the most common question I get asked (or think people should be asking) when they meet with someone to look at planning their building journey.
I’m building my first home; how will Mr Enthusiast support me through my building journey?
Mr Enthusiast is a one stop service that will support your journey from finding land and a house design to keeping you in the loop at every stage of the journey including regular onsite visits and updates throughout construction. We don’t sign and run. The whole Mr Enthusiast team will be there for every stage at all times answering your questions or to help celebrate the milestones.
What is construction finance?
Unlike getting a loan for a property in a one lump payment, construction finance is paid to the builder in smaller progress payments throughout your build. Usually, these payments are made at;
- Slab down (when your slab gets poured)
- Plate Height (when the bricks are finished)
- Roof stage (when your roof is finished
- Lockup (all doors and windows are on)
- Completion (last payment before you get the keys)
During construction, banks will only ask you to pay the interest on the progress payments. For example, if your total loan is for $400,000 and the first payment for slab is $50,000 you will only pay the interest on the $50,000 until the next payment is drawn. Once the final payment is made and the house is all yours you will take over the full repayments of the loan amount either as principal and interest or continue to keep it as interest only, depending on the agreement you have made with your lender.
The difference between a mortgage broker that specialise in construction and an everyday mortgage broker.
A mortgage broker that specialises in construction will know all the ins and outs of building here in WA. They know which banks to ask for loans depending on the suburb and your financial situation. These brokers know all about the timelines involved in getting contracts ready, plans done up, valuations, council permits needed, zoning requirements and everything else that goes on behind the scenes to make sure that your paperwork is correct before it is submitted to the lender for approval. An everyday mortgage broker however may not have the most current information about the builder or suburb you are looking to build and may run into issues with valuations of your new build, meaning the banks won’t lend you the full amount needed to build and you will need to come up with the rest of the funds.
What’s stamp duty and do I need to pay it on my new home?
Stamp duty is tax that state and territory governments charge for certain documents and transactions, in this case it would be for the purchase of property. When you build a home, you only pay stamp duty for the land component and not the home construction component. As a first home buyer in WA you don’t pay stamp duty for the property up to $430k. Then you get a discount for properties valued between $430,000 and $530,000. The home purchased must be used as a primary place of residence. If the property is worth more than that you pay full stamp duty rates.
What is a settlement agent, do I need one and where do I find one?
A settlement agent is there to assist you through the process of transferring the ownership of the property from the seller to you. They are the only people that have the qualifications and license to make sure that the whole process is legal and that everything is done right to transfer the titles of the property over to you.
Settlement agents have a very important role in the building journey right from the start when they check to make sure that the land you will be purchasing has no encumbrances, caveats or any other restrictions that may limit the use and affect the transfer of the property or the sale of it. Among everything else that they do along the way they coordinate the settlement date and time with lender and the seller’s settlement agent and will let you know of any potential delays, including your rights when it comes to compensation.
Mr Enthusiast has partnered with a great settlement agent that helps you through the whole process (so you don’t have to shop around).
Can you create a custom house and land package just for me?
Absolutely! If you have an idea of where you would like to build, we will find land available in that area that fits in your budget and the house design to match.
Can I make changes to your home designs?
Just ask, super simple. If there is something that you would like to change on one of our designs, we will work with you to make it happen. If the change will impact your budget too much, then we can talk through different options to find one that works for you. We are all about finding and making a house design that you can turn into your home.
How do I know whether the home design will fit on my block of land?
Every design we can build can be found on our website with the frontage included so you can start the progress narrowing down lots based on that. When you have a rough idea, we do the rest. Using a to-scale plan we can lay your block over it to make sure that you have all the space you want and need for your home.