Everything you need to know

Consider where you want to live, what sort of house you want to buy and how much you can afford. Building a new home is an exciting adventure, but choosing the location of your block of land is just as important as choosing what to build on it. Start considering where you want to live and what you want to be close to. Finally, make sure you have a good understanding of your budget and what you can afford. Speak to a bank or finance broker and find out how much you can borrow. Get pre-approval from your lender too so you can move quickly when have found the dream block.

There are four main stages in the contract signing process you will need to consider: a) signing the contract to purchase land with the land developer; b) contract acceptance by the developer (at this point you usually have approximately 7 weeks to gain unconditional approval); c) appointment of a Settlement Agent (they organise the transfer of the title into your name and will guide you through the purchase process); and d) signing the contract to purchase a house with your chosen home builder.

You will need to apply to your bank for finance, which will require documentation to prove your identity, income, assets and liabilities and past tax returns. Make sure you also find out if you qualify for the First Home Owners Grant. You will then receive unconditional approval from your bank and loan documents will arrive from the bank for signing. Your Settlement Agent will then organise the transfer of land documents for signing.