First Home Buyer/Builder Questions

• 

  MS Paint on 23/02/2020 - 01:39

  +6

  please no keyboard warriors, I know I am asking a lot OzBargain but please.

  Then I will not be providing a response to your request.

  So… Go nuts everyone, tell me how I am wrong and the only suitable investment is clearly Holden Commodores.

  But this contradicts your initial request.

  • 

    JustASmoothSkin on 23/02/2020 - 01:46

    +1

    Just kinda assumed most people would ignore the top plea, Been on OzBargain a good while.

    • 

      HighAndDry on 24/02/2020 - 11:49

      Why do you have two kids that aren't yours when you're single (if you want savings, that's low hanging fruit right here), and if you want to avoid headaches, avoid builders.

      Not that they're even bad (some are), it's that the building process is far less certain and definite and most people in my experience don't appreciate the inevitable changes and revisions and delays.

      • 

        JustASmoothSkin on 24/02/2020 - 12:23

        +1

        Kids don't deserve to be stuck with their parents, want to give them a chance to shine.

        Certainly looks like established is the better option.

• 

  miwahni on 23/02/2020 - 01:48

  Curious about the older established houses on larger blocks of land - are they suitable for subdivision? Could you buy one of these and then subdivide and build a second house for rental / sale?

  • 

    JustASmoothSkin on 23/02/2020 - 02:39

    In theory, yes. But would have to ask the council to be positive. But regardless even if the land could be sub divided, I wouldn't feel right or safe having my first loan be more than $400K. And to subdivide that block for 2 houses I would certainly be looking at the $600K mark at minimum and that's a guess from me so likely missing alot of other costs. ($230Land/$50Works/$150House/$150House)

• 

  spackbace on 23/02/2020 - 02:28

  Go VZs, much classier Commo

  Though cmon OP, FIFO in Baldivis? The question is, why haven't you already got a Commo?!

  • 

    JustASmoothSkin on 23/02/2020 - 02:42

    +2

    Haha, Actually got a 2006 Toyota Crown Athlete from Japan. Was the last forum post I put up and got shredded on. Was going to buy a BMW 335i originally, Crown cost more upfront but so far I can agree that a import was the better option.

    At this point, OzBargain more or less acts as a think tank for me. And I can use it to easily get rid of the worst ideas. Kinda like panning for gold, Takes forever, feels like I am going to get shot for trespassing but in the end I will barely get enough gold to actually justify the effort.

• 

  ms_caz on 23/02/2020 - 04:07

  +3

  I know nothing about Perth. I have bought established homes (including my first home), and I have built homes.

  Established property: large land size -room to extend or modify should you need to do so at a later stage. Subdivision may be possible at some stage in the future should that be something you are interested in - nobody says you would have to borrow so you could do it immediately. The house might not be exactly what you want but it doesn’t have to be perfect first up - if you can live with it as it is then you can always make modifications later, or include certain features in subsequent homes. Established homes are in established suburbs with all of the convenience of public transport, shopping and other infrastructure. They probably also have established gardens and other external features. Do your due diligence and make sure you have the property thoroughly checked before purchase to discover any defects.

  New build - exciting to see a new building with ideally exactly what you want BUT all those new features you want are expensive! That display home you look at will have all the upgrades and will be much more than the list price. Building is stressful and subject to delays and hidden costs. Budget extra for changes, problems and things like landscaping, soft furnishings, security features, fly screens, clothesline, paving, tv antenna, fences… some new builds have some of these in their package but it will still cost you extra, and will take longer after you have moved in to have these completed. Land size - 400sqm or less might be the average these days but it is tiny. Most new suburbs are all house and no land. You are right on top of your neighbours, limited space for kids to play, pets etc. Around here, garages are overflowing with things that have no storage space in the house, so two or three cars per household are crammed into tiny streets. New suburbs/ housing developments might be built around a central park but do they have the other facilities that you might need?

  I would say don’t think about selling/ renting etc at this stage. Build / buy for yourself and what you need, but bear in mind that something re-saleable will be well located, of good size and proportion, and solidly built.

  I’m not sure what your FIFO job involves, but if you are going to be “ out of the loop” for periods of time, then you might not be able to keep a close eye on what is happening with a new build. My experience is that there were lots of times when we needed to make decisions, consult, liaise etc, as well as just generally keep an eye on things with the build, and we had overall positive experience both times. I’d hate to be in a situation where I couldn’t be reached if there was a problem, question, delay etc. Purchasing an established home SHOULD be a lot more straightforward than a new build.

  Good luck with it.

  • 

    RockyRaccoon on 23/02/2020 - 10:53

    Very well put.

    Only add is that when building, you think it has everything you need, living in it can prove otherwise. Which is also true of an existing build. The OP has recognised wisely, that its best to live in the house, then look at renovations when finances are better AND you understand how you use the house.

    Building new often means you will be living in an area where every other house can look the same, cost the same and when selling the buyer has many to choose from , which can keep prices down.

    Buying existing also means you can do some of the renos yourself (painting at least)

  • 

    JustASmoothSkin on 23/02/2020 - 11:49

    Thanks, Established definitely seems like a much better investment in the long term.

• 

  TheBilly on 23/02/2020 - 08:04

  +1

  Buy established for $100k less on a big block. I am in the same boat as you. I have a very high stress job but the pay to match, I feel like it is eating away at me day by day. When it came to buying a house, it wasn't about the house, I just thought I need to buy what I can pay off as quick as possible before the stress kills me and that equaled less debt. Perth is a cyclical market which has only undergone 1 major boom, the thoughts of becoming a millionaire are slim from here on so buy established.

  • 

    wittyusername on 23/02/2020 - 13:16

    +1

    I just thought I need to buy what I can pay off as quick as possible before the stress kills me and that equaled less debt.

    How's this going for you? I had that exact thought driving to work this morning. I figure once I have a house paid off, that's my major debt in life sorted. I can take a lower paying job and essentially relax a bit. Assuming I don't have kids.

    • 

      TheBilly on 24/02/2020 - 17:06

      Not good unfortunately, I had a plan which failed. I'm now working on a plan B. Plan A was to start my own business in my area of expertise to increase my income for 5 years and also operate as a contractor so I can control my money more as opposed to being an employee, however compliance and regulation beat me down before I could even get started. It was meant to be a get in work hard for 5 years with a 10 year exit strategy. Couldn't get through the first hurdle.

• 

  elgrande on 23/02/2020 - 08:31

  +1

  NOT " I bought my 2000m2 property 40 years ago for a pie and sauce and…" 

  What about a sausage roll?

• 

  bobbified on 23/02/2020 - 09:15

  Ignore comment

• 

  Almost Banned on 23/02/2020 - 11:52

  I am currently building in a suburb about 10km from the city and not far from the airport (and DFO and Costco).
  I wouldn't touch anything near Baldivis or north because it will be a million years before it regains value.
  You can buy large blocks in this area for around $400-450k, build on one for about $250,000 and you are sitting pretty. Or you subdivide it and sit even prettier.

  • 

    JustASmoothSkin on 23/02/2020 - 12:11

    That's a bit too expensive for me at the moment, even with a FIFO job that amount would take the better part of a decade to pay off and I doubt I could rent it out for more than the mortgage repayments which would be over 500 p/w.

    • 

      Almost Banned on 23/02/2020 - 12:16

      When I said you can buy large blocks - that meant with a house already on it.
      You don't need to demolish and build - at least not straight away.
      You might even get lucky and find one you can subdivide now and keep the existing house.
      Either way I wouldn't be buying on the fringes of Perth - unless you were right on the beach.

• 

  Blue Cat on 23/02/2020 - 21:52

  +1

  Marital Status: Single
  …
  2 Children (Not mine)

  Uhhh, what's the story?

  • 

    JustASmoothSkin on 23/02/2020 - 23:02

    +3

    Parents don't parent, Moved out when I was 15, Other brother did the same. Decided to let my youngest siblings have a fair shot at being kids and teens. Something we feel we got deprived of.

    • 

      Blue Cat on 23/02/2020 - 23:17

      All good, sounds fair.
      Was afraid of "raising my ex-wife's boyfriend's children" scenario.
      I hope the siblings appreciate what you are doing.

      • 

        JustASmoothSkin on 23/02/2020 - 23:30

        +1

        Haha, Yeah they are happy. They get spoilt as well. Hoping to get a trust set up for them soon, Give them a little push when they are ready to strike out on their own.

• 

  Banana on 24/02/2020 - 09:27

  +1

  If you would like to live a long and happy life, for the love of Christ, buy an established home. We built our own family home a few years ago and I vowed to never go down the same route again. Here's why:

  1. Most builders are scums.
  2. Every little bolt and screw will cost you arms and legs. The builders WILL up-sell you, "Would you like to add $3k for roof tiles that wouldn't fade in 10 years?"
  3. You might think your house design is brilliant, tailored and made to suit your need….Not! I sometime look at our 'custom-built' home and think "Why do we have so many doors that lead to the back of the house, next to each other?!".
  4. New houses move like crazy in their first 2-3 years. You would just be utterly disappointed to see new cracks on your beautifully rendered walls and thinking about how much it would cost to cover them up, and whether the house is still structurally sound.
• 

  [Deactivated] on 24/02/2020 - 19:06

  Baby daddy

• 

  jimdotpud on 25/02/2020 - 12:22

  Don't know Perth or the areas you are talking about.
  We've bought established, renovated,and built 2 homes

  If you can find an established with good bones, go for it… usually less headaches and you can try to mold it afterwards if you're not 100% happy with it (can be more expensive than new build though, depending on what you want to do) We partially renovated our first home to live in, then after we had kids, we investigated extending, found it was more cost effective to build a new house.

  First built home was through a volume builder. not a good experience…delays, delays, stuff not completed, chase up, unforeseen costs.
  Second build (which we are living in now), custom build, so got everything we wanted. great experience, completed on time, but rather costly.

  So if I had my time again, think I would opt to build fresh from start, noting the obvious longer lead time to get into the new house over an established one, if your circumstances can cater for this.

• 

  sim0an on 28/02/2020 - 13:32

  I've built three times and I really enjoy the process. I'm in Queensland though.

  The first thing that springs to mind when reading your post is.. you earn 130k p.a. and have nothing to show for it. The banks aren't going to look at that positively, regardless of your apparent squeaky clean debt record. They will want ~3+ months of genuine proven savings the majority of the time. Have you actually gotten a written pre-approval?