One alternative to buying an existing property in Australia is to have your new home built. Choosing to build your own home allows you to design a home to meet your specific needs and wishes. It is important to be aware that this can be a time consuming process and that there are often hidden costs.
People who are not yet permanent residents of Australia need to obtain permission from the Foreign Investment Review Bureau (FIRB) before buying or building a home. New Zealand citizens are exempt from this requirement.
Rules and regulations
There are strict rules for building houses in Australia and you will need to adhere to local and state government regulations. Only licensed contractors and builders are permitted to construct houses.
If you are purchasing vacant land with the intention of building on it at a later date, you will have two years before you are required to have built and moved into your new home.
House and land packages
The availability of plots of land will vary from region to region. Some building companies offer house and land packages. This means that the price includes both the land and the cost of the building construction. Generally, a few specific house designs are offered, with the option of different upgrades.
The South Australian Office of Consumer and Business Affairs can provide you with a guide to house building with information on finances, location, plans and specifications and insurance.
Being environmentally responsible
Australians are becoming increasingly aware of the need to build environmentally responsible homes. The Australian Government’s Energy Division focuses on the creation of energy efficient housing and ecological sustainability.
Stamp Duty
When purchasing land or property in Australia you will need to pay Stamp duty. This is a general tax payment that is used to fund public services such as law and order, health, education and public safety. The Stamp duty fee is relative to the cost of the property, and while the percentage varies from state to state, the fee usually amounts to several thousand dollars. It is important to take this additional cost into account when budgeting for your new home.
Permanent visa holders may be eligible for a $7000 first-time home buyers grant, which helps to cover the Stamp duty fee.