Posted on September 02, 2021

If you feel daunted by the thought of building a new home, you’re not alone.

The home building process is complicated, but by learning what the steps are, you can make it easy and stress-free.

In this guide, we’ll show you the home building process and some helpful tips for working with a builder.


Steps for building a new home


Step 1: Work out your budget

A lot of people don’t know the true costs of building a new house.

Aside from the cost of the land and the house, you’ll have other expenses.

So one of the most helpful tips to building a new home is to tally the costs before you start so you don’t get any surprises.

Costs of building a new home include:

  • House
  • land
  • stamp duty
  • legal fees
  • bank fees
  • mortgage insurance
  • loan interest
  • conveyancing
  • asset protection
  • community infrastructure levy

Depending on your land, you could also have extra site costs.

For example, a sloping block will add the expense of more materials, so you might prefer flat land which is cheaper.

We recommend working out your ideal budget for repayments so you know how much you can spend on the new home.


Step 2: Get pre-approval for a loan

Once you understand your budget and costs, it’s time to get a bank loan.

With a pre-approval, the bank agrees to give you a loan, but the agreement is not set in stone. If your circumstances change, your loan could be declined.

A pre-approval guides you in your budget when choosing your land and home design.


Step 3: Apply for grants

If you’re a first home buyer, you could be eligible for the First Home Owner Grant of $10,000.

You could also get a discount on your stamp duty with a concession or exemption.

Read more in Everything You Need to Know About the First Home Owners Grant.


Step 4: Find land

Choose land in an area of Melbourne based on the lifestyle you want.

Look for amenities like shopping centres, transport links, hospitals and public transport.

New estates can be more affordable than established neighbourhoods and have excellent master planning.

Another option is to choose a house and land package, which lets you choose your favourite home design while the builder takes care of the rest.

If you like an established area or want to stay in your current location, you could do a knock-down rebuild.

This lets you knock down an old home to build new on that block of land.

If you build on your own land, make sure your block is compatible with your home design.

Curious about life outside of Melbourne? See 8 Irresistible Reasons to Choose a Newly Built Home in Victoria


Step 5: Get an expert inspection

One of the most essential steps for building a new home is getting an expert site inspection.

The site inspection makes sure the land is okay to build on.

By choosing a house and land package, you can skip this step because your builder will already have approved the lots.


Step 6: Choose a builder

One of the best ways to find a builder is by asking friends and family to give you a trusted recommendation.

Another great way is to contact the Master Builders Association and Housing Industry Association who can recommend builders with sustainable designs.

You can also research reputable builders like JG King Homes online.


Step 7: Choose a home design

Once you’ve bought a block of land, it’s time to find a home design you like.

Quality builders like JG King Homes will have a huge range sizes and styles to choose from to fit your block.

View our stunning home collections and when you’re ready, make an appointment to visit a display home where you ask questions.


Step 8: Create a building contract

Once you’ve chosen your builder, they’ll prepare your building contract.

The contract needs to be very detailed to avoid building mistakes.

If you choose a trusted builder like JG King Homes, you can rest assured that your contract complies with local building laws that the builder has the right licences and permits.

Note: The contract should follow the Master Builders Association of Victoria (MBAV) or Housing Industry Association (HIA) guidelines.


Step 9: Get your loan & sign the contract

Now’s the time to sign your building contract so that you can lock in your home loan.

Review your loan with a conveyancer or solicitor, sign it and start building!


Step 10: Get insurance

You’ll need insurance to protect your land and new home during construction.

If you’ve chosen JGKing Homes for your builder, we’ll take care of this for you.


Step 11: Monitor the build

One of the best tips for building a house with a builder is to keep an eye on the building process.

Not every builder lets you make site visits, but JG King Homes organise scheduled visits with a site supervisor.

Watching your home get built is exciting and we keep you updated every step of the way.


Step 12: Finish construction and move in

Once the builder has finished, they’ll let you know your home is ready for move-in.

You’ll get the builder’s written authority that the building is complete plus a few warranties and certificates.

Your builder will walk you through a final inspection of your new home and then hand over the keys.

Congratulations, it’s time to move into your new home!