Construction loans have been a recent popular option that customers tend to lean towards when getting a new home. Rather than buying a home that has already been built, construction loans are for people that are going to build a brand new home.
What options are available?
There is a variety of different types of construction loans available. The most common type of construction loans is house and loan packages. This is where you would visit a display centre and talk to a building consultant. The building consultant will then proceed to help you source the land, put a package together for the build as well as design the house.
Another option is where you source your own land. After sourcing your own land you would then proceed to find a builder and then design your new house. This option is suitable for people who love the location of their house but want a new house.
Another type of option is off the plan options. For off the plan options, normally a 10% deposit is firstly paid and no construction is involved on your end. Once the property is built the rest of the contribution is paid. Purchasing off the plan options is when you buy a property that has not been built yet. The purchase made from the plans and designs of the building. This option however does come with a lot of risk.
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