Why NOW is the perfect time to build

There are many factors that contribute to making the decision to build a house, but underpinning all other decisions should be your financial security.

If you’ve been paying attention to the news lately, you’ll know that interest rates are now at a record low after the Reserve Bank of Australia cut them earlier this month.

With rates at 1.75 per cent, the banks are beginning to pass along the cuts, meaning there’s never been a better time for you to build, whether it’s your first home or a new home.

Which banks are cutting interest rates?

The big four banks – National Australia Bank (NAB), Commonwealth Bank of Australia, Westpac Banking Corp and Australia and New Zealand Banking Group (ANZ) – have all agreed to cut variable home loan rates. Starting this month, these banks will begin rolling out their all-time low rates, check out when your bank’s cuts will take effect here.

What you’ll save

According to Canstar, the typical homeowner will save $72 a month on a $500,000 loan. This brings the average standard variable home loan rate down to 4.52 per cent. For those taking a $300,000 home loan, the cuts will push the variable home loan rate down to 4.4 per cent, introducing a saving of $44 a month.

Now, these savings may not seem like much, but they definitely allow extra breathing room for the bulk of home buyers who are looking to have a larger mortgage. For those who are first home buyers, these savings mean repayments will be similar to rental payments, meaning you won’t be paying “ridiculously above what (you’re) paying in rent” for your repayments.

Things to consider

There’s a few things to consider before diving in. Although the rates are low now, it’s inevitable the rates will fluctuate. While it is possible rates will continue to drop, they will eventually rise. First home buyers should make sure that they can afford repayments even if the rates were to rise.

If you want to make the most of the all-time low interest rates, now’s the time to start talking to Achieve Homes about securing your new home. Achieve Homes offer a whole range of home designs and house and land packages fit for almost any budget.

Disclaimer:  This information does not constitute financial advice and you should speak to a qualified financial advisor and your bank about your individual financial circumstances before buying a property.

What’s holding your house up?

There’s more to a house than four walls and a roof.

Foundations and footings, structural timbers and steel, and load bearing brickwork are all doing their bit to keep your house up for decades to come. So, how exactly does it all work?

Foundations and Footings

Houses sit upon a foundation which transfers the load of the walls and roof through the footings to the earth. A house without foundations would sink or topple over from the weight of other parts of the structure.

Footings are wider than the foundation so it can spread out the load of the rest of the house. They are sized according to the weight of the house, the type of rock/soil, available drainage and budget. The main types of footings you’ll find holding Australian homes up include, strip footings, concrete pad footings, ground injected piles, and timber piles.

Timber and Steel

A large majority of Australian homes are built using a timber frame due to its versatility and cost effectiveness. Steel is used throughout the construction to reinforce concrete and is sometimes used in place of timber.

Roof trusses are responsible for supporting your roof over your head while also holding your walls together. Timber trusses are light, durable and can span 10 metres or more without the need for reinforcement. Framing distributes the load of the roof towards the foundations and footings, again framing is typically a timber product and acts as the skeleton of the house.

Load bearing brickwork

The brickwork is an extremely important detail of any house. Not only do your walls keep you protected from the elements, but they take on the load of your roof, hold up against wind and a support a second storey if you’re house has two levels.

Structural Maintenance

It’s possible for buildings to move, the main cause being problems with the foundation soil. At Achieve Homes we provide new home owners with structural maintenance information to help you take care of your house. The CSIRO Foundation Maintenance and Footing Performance: A Homeowner’s Guide explains how to maintain your foundations and footings. The documents is designed to help home owners identify the causes of soil-related building movement, and suggests methods of prevention of cracking in buildings. If you regularly monitor and actively prepare your house through methods suggested by the CSIRO it’s possible to save yourself a lot of headache in the future.

If you’re interested in building a new house checkout our house and land packages here or contact us to find out more on how we can help you.