Having a comprehensive checklist for your next house and land purchase is a crucial element for you to keep on top of a complex, multi stage process with a litany of moving parts. This checklist as set out below will guide you through what can a complex field helping you avoid missing crucial steps, making costly mistakes and keeping you in control and a step ahead.
INITIAL PLANNING
- Set a realistic budget (including loan pre-approval)
- Decide on location (suburb, commute, amenities, schools)
- Choose the type of home (single story, number of bedrooms/bathrooms)
- Research government grants (First Home Owners Grant, stamp duty concessions)
- Assess your borrowing power with a mortgage broker or lender
TIP: Look beyond just interest rates when comparing lenders. Look at types of loans such as Fixed, Variable, Split or Line of Credit. What fees are the lenders charging – application fees, monthly, annual, early exit fees? Are you able to make extra payments? Can you refinance? Is there a redraw option? If pre-approved how long is it valid for? Review the loan carefully and make sure it aligns with what was discussed. Use a solicitor to review before signing.
LAND SELECTION
- Choose a registered or unregistered block of land (registered land has fewer uncertainties when it comes to delays)
- Review the title and zoning information
- Check for easements, covenants, or design guidelines
- Understand land orientation, slope, and soil type (may affect building cost)
- Verify services connected to the block (water, gas, electricity, sewer)
- Check proximity to infrastructure (roads, schools, public transport)
TIP: Consider the contours and slope of the land before purchasing as prices can quickly add up before your build even starts. Drop edge beams, additional and deeper piers, reinforced slabs or stepped foundations can all add thousands to your build, likewise the costs involved in removing excess soil. Whilst sloping blocks can add to construction costs the end build product can often prove to be aesthetically pleasing and more character filled – buyers often favour homes with elevation and interesting layouts over generic flat-block builds.
BUILDER AND HOME DESIGN
- Select a reputable builder (read reviews, check credentials, licenses)
- Compare inclusions vs base price of the build
- Review floor plan options and customizations
- Understand what’s included in site costs
- Ask for a detailed tender or quote (in writing)
- Clarify inclusions (driveway, fencing, landscaping, air con etc.)
- Review build timelines and potential delays
TIP: Ensure the builder includes as much as possible in the original tender as this will help to avoid budget blowouts towards the end of the build, premium variation costs after the contract is signed, and will give you locked in fixed prices which is essential in the quickly changing build industry.
FINANCE AND LEGAL
- Get a formal loan approval for both land and construction
- Use a conveyancer or property lawyer to review contracts
- Understand split contracts (land + build separately) or turnkey packages
- Check for hidden fees (council contributions, inspections, extras)
- Ensure appropriate insurance (during and after construction)
TIP: Split contracts save you money on stamp duty as you only pay the stamp duty on the land component. Land must settle before building starts so if you are eager to start building your new home make sure your land is registered to avoid potential registration delays.
CONTRACT AND PAPERWORK
- Review and sign the land purchase contract
- Review and sign the building contract (HIA or MBA standard recommended)
- Understand progress payments schedule (e.g. deposit, slab, frame, lock-up, completion)
- Ensure all variations or upgrades are documented in the contract.
- Check cooling-off period and cancellation clauses
TIP: Check your contract for liquidated damages as this section of the contract can often be left blank or be set at a very low daily rate. Negotiate a realistic amount with the builder to cover storage, additional rent and other inconveniences around the unforeseen.
PRE-CONSTRUCTION PREPARATION
- Soil test and contour survey completed
- Finalise home design and colour selections
- Obtain building permits and approvals
- Confirm build start date
- Ensure builder’s warranty insurance is in place
TIP: Colour selections or your Selections appointment day can be a little overwhelming if you aren’t prepared. Have a vision before selections day by creating a vision board from platforms such as Pinterest and Instagram and decide on a general style you want to achieve. If you lack confidence in colour it is best to stick with neutral colours as your furnishings such as lounges and artwork will ultimately add the interest and pop that will create your home.
CONSTRUCTION PHASE
- Regularly inspect building progress
- Stay in touch with site supervisor or building coordinator
- Approve any variations in writing
TIP: Although an additional outlay it can be a good idea to use a private building inspector for at least one stage during the build. Whilst builders have their own site supervisors, private inspectors work for you and are less likely to miss key defects. A home will be one of your biggest investments so protecting your investment is a smart step towards ensuring a build that meets all the Australian standards for a home that will last for generations.
COMPLETION HANDOVER
- Final inspection and defect list (practical completion inspection)
- Ensure all council compliance certificates are provided
- Receive keys, warranties, manuals, and handover pack
- Confirm occupancy certificate is issued
- Final payment made (if all conditions are met)
TIP: You are often issued a temporary occupation certificate (temporary OC) upon handover of the home. This is a short term approval and allows you to occupy the home legally. A temporary OC will be issued if non critical items are still to be completed such as driveways, landscaping, fencing etc. You will be given a certain amount of time by your certifier to finish these pending items whilst you live in your newly build home.
ADDITIONAL TIP: Always check with your lender if they will release final funds upon Temporary OC as some may require the Final OC for this release.
POST HANDOVER
- Arrange utilities connection
- Consider landscaping, driveway and fencing, if not included
- Lodge for builder’s maintenance period (usually 3-12months)
- Register for builder’s warranty and structural insurance
TIP: Utility connections can take days to finalize so it is best to aim to arrange them before handover where possible. Utilities include Electricity, Gas, Water, Sewerage/Wastewater, Internet and Phone (NBN), Pay TV or free-to-air, and Council Services (Bin collection).
For more information about steps for your next House & Land package purchase or for suggestions on areas for your next build please reach out to us at 756Group Pty Ltd – we are here to help.
