If you’re thinking of building a home here in WA, before you start considering the floor covering and the paint colours, you’ll need to do your sums and calculate your budget.
Before you start designing, you need to calculate realistically what you can afford and talk to a builder about all the real costs involved. Then you’ll need to talk to a bank or a broker to check that you can afford the loan and can afford to live in your dream home once it’s built.
You need to consider all your income, assets and liabilities and determine how comfortable you will be with servicing the loan and the regular interest bills. Doing a detailed annual budget of all your income and expenses will help too.
Consider not only the advertised price of a home, but also the additional costs such as furniture and window dressings and don’t forget outdoor areas and gardens.
You can use a home loan calculator on websites like bankwest.com.au to work out your borrowing power and repayment costs.
There are many more questions you may have, so check out Master Builders A to Z at their website, mbawa.com
