Décor & Gardening
Starting from scratch
1 First thing’s first, decide on your total budget (including the cost of land). Be realistic.
2 Sit down and have a serious discussion about your home requirements.
3 Make a list of ‘must have’ and ‘nice to have’ items.
4 Find and buy a piece of land. Try and choose a builder and architect before you buy the land, so you can get their input before you make the purchase.
5 Sketch plans: ideally this should consist of a ground floor, first floor, site layout and one elevation. Once tweaked and you are happy with the sketch plan the builder should be able to give you an accurate costing and detailed finishing schedule.
6 Loan application: applying for a building loan is pretty much the same as applying for a regular home loan. The bank requires the land contract, building contract, finishing schedule and sketch plans in order to evaluate the to-be-built home and supply the client with a bond quotation.
7 Once you have accepted your building loan quotation the land transfer process will start and your building loan will register on transfer of the land. While this is taking place, a full set of working drawings will be drawn up and submitted for estate and council approval, an engineer will be appointed and the property will be NHBRC enrolled. On transfer of the land and loan registration your builder should have everything in position to break ground and proceed with the build. This process should take around three months.
8 A reputable builder will have someone on hand to help you choose floor coverings, kitchen and built-in cupboards, sanitary ware and bathroom fittings and paint colours. You’ll need to make selections at various stages of the build and it is important to finalise them as soon as possible in order to avoid delays in the building process.
9 Draw down schedule: as the build progresses and certain milestones are reached the builder will request you to submit various documents in order to receive payment from the bank for work completed. The bank will send out a valuator who will access the completed work, request the required certificates and ultimately be responsible for the draw being paid once the report is submitted.
10 On completion of the build the bank will require all certificates and a ‘happy letter’ before releasing the final payment to your builder. The bank will now convert the building loan to a normal home loan.
Details: 20 Dunkirk Crescent, Salt Rock / 032 525 4147 / firstname.lastname@example.org / www.derekwarrendevelopments.co.za