I've Built 8 Homes – Here’s My Advice to You

16th September 2024

Finance & Budgeting Pre-Construction First Home Buyer Investor

This article dives into the experiences of Ben Stewart, who has built eight homes, sharing valuable lessons, mistakes to avoid, and expert tips for home buyers and investors. It also explores current market opportunities and strategies to maximise success in property investment.

I've Built 8 Homes – Here’s My Advice to You

Introduction

Building a home is one of the biggest investments you’ll make, and for those who go through the process multiple times, the lessons learned are invaluable. In this episode of the Home Building Hub podcast, hosts Colin Bischof and Darren Brennan sit down with Ben Stewart, who has built eight homes. Ben shares his experiences, mistakes, and top tips for home buyers and investors alike.

If you’re planning to build your first home or considering property investment, this episode is packed with practical insights to help you avoid common pitfalls and make informed decisions.

The Journey of Building Eight Homes

Ben Stewart has built a diverse range of properties, including traditional house and land packages and investments through self-managed super funds (SMSF). His journey started with a modest three-bedroom, single-garage home and has since expanded into more strategic investments.

Key Takeaways from Ben’s Experience:

• Start with a clear strategy – Whether it's an investment or owner-occupied property, define your long-term goals.
• Do your research – Understanding market trends, land availability, and builder reliability is essential.
• Build a reliable team – Work with professionals, including a mortgage broker, financial planner, and builder, to make informed decisions.
• Be mindful of timing – Consider factors like market cycles, interest rates, and personal financial stability before committing.

Common Mistakes and Lessons Learned

Ben openly shares some mistakes he made along the way, ensuring others can learn from his experience.

1. Not Reading Variations Carefully

Ben signed a variation on a home’s facade without realising that part of the render would be removed. His advice: always check every document carefully before signing.

2. Underestimating Costs

Many buyers don’t factor in costs like landscaping, fencing, and other finishing touches. Ben recommends:

• Keeping a contingency fund for unexpected expenses
• Ensuring all inclusions (fencing, blinds, etc.) are covered in the loan

3. Failing to Account for Market Changes

Market conditions, such as interest rate fluctuations or changes in property demand, can impact your investment. Ben stresses the importance of long-term thinking rather than reacting to short-term trends.

Off-the-Plan Purchases: Risk vs. Reward

Ben has built multiple homes off-the-plan, meaning he purchased land before it was titled and matched it with a house design.

Benefits of Buying Off-the-Plan:

• Lower upfront costs – Only a deposit is required initially.
• Time to save – Buyers can have 12-18 months before settlement (on untitled land), allowing them to build equity and improve financial standing.
• Potential for capital growth – If the market increases, buyers can benefit from appreciation before construction is even completed.

Risks to Consider:

• Land delays – Some developers may take longer than expected to deliver titled land.
• Market fluctuations – Ensure you can financially withstand potential downturns.
• Serviceability concerns – Consider where your finances will be when the land is ready to settle.

The Best Opportunities in the Current Market

Ben highlights current market trends and where buyers can find the best deals:

• Titled land is a major opportunity – Developers are offering significant discounts and rebates on ready-to-build land.
• One-part contracts – Ideal for SMSF investors, these allow buyers to secure a home without holding costs until settlement.
• Self-Managed Super Funds (SMSF) investments – A great way to build long-term wealth with tax advantages.

Tips for First-Time Buyers and Investors

If you’re just starting out, here are some of Ben’s key recommendations:

• Don’t wait for interest rates to drop – The best deals on land and home packages are available now, and waiting could mean paying more later.
• Avoid overcapitalising – Stick to practical upgrades that enhance value rather than unnecessary luxury features.
• Understand the difference between wants and needs – Focus on what’s essential rather than emotional attachments to minor upgrades.
• Think long-term – Property investment requires patience and resilience, so plan for where you'll be financially in 2-5 years.

FAQ (Frequently Asked Questions)

1. What’s the biggest advantage of buying off-the-plan?

Buying off-the-plan allows you to secure a property at today’s prices while delaying settlement, giving you time to save and potentially benefit from market appreciation.

2. Is now a good time to buy land and build a home?

Yes! With current rebates and discounts available on titled land and builders offering incentives, now is a strategic time to enter the market before demand surges.

3. How do I minimise risks when building my first home?

• Work with reputable builders and developers
• Understand all costs and potential delays
• Get independent building inspections
• Seek financial advice to ensure affordability

Key Takeaways

• Building a home requires thorough research, planning, and financial awareness.
• Investing in titled land now offers great opportunities due to developer incentives.
• Avoid common mistakes by being detail-oriented and working with experienced professionals.
• Always plan for long-term success rather than short-term market trends.

For more expert insights, listen to the full episode here: I’ve Built 8 Homes… Here’s My Advice to You.

About the Home Building Hub Podcast

The Home Building Hub podcast, hosted by industry experts Colin Bischof and Darren Brennan, is Australia’s premier resource for new home buyers. With weekly episodes featuring special guests, the podcast provides objective, high-quality insights into the home building process—completely free and without sales pitches. From understanding financing options to navigating the complexities of building a new home, each episode is packed with actionable advice and tips.

Explore more episodes at www.homebuildinghub.com.au and join our growing community of informed home buyers.

Disclaimer

Whilst we’re all about providing value to you, this article should not be considered as legal or financial advice. It contains general information only and is based on the content discussed during the podcast episode. This information is relevant to the episode’s release date and may not be applicable at the time of reading. Always seek independent professional advice tailored to your personal situation before making any legal or financial decisions.