Different Types of Builds

Finance-what-to-expect Financing can become over complicated when handled poorly.

Lenders are very cautious when it comes to construction finance. They carry an increased risk while your house is being built as they could be left with an unfinished project as security for the loan. NewBuild will work with you every step of the way to make sure there is sufficient funding to finish the build and keep you, the builder, and the lender happy.

The three ways to build a home:

1. A Self-Managed Build
A self-managed build means you take care of all aspects of the new home build yourself. This is more suited to those with building and project management experience.

2. A Fixed-Price Contract
A fixed-price contract is when a builder is contracted to build a house based on approved plans and can cover as much or as little as you specify. This is the most popular way to build a home.

3. A Turn-Key Contract
Turn-key contracts generally cover all aspects of the build including earthworks, construction, appliances, landscaping, etc. This is a “no surprise” way of building your home, making it easier for your lender to understand how much money you need to complete the build. NewBuild employ this method for their projects.

NewBuild also takes care of the stress and complication of making sure your builder is paid as the project progresses, and will schedule all progress payments throughout the build so that there are no unnecessary delays or frustrations. On completion of the build, and once final payments are made, our financial advisors will make sure your loan is set up so that you can continue the repayments without a hitch. It’s as easy as that!