Custom Homes

How can I get a home loan?

When applying for a home loan, one of the most pressing questions you’ll have is ‘how much can I borrow’? Once you have applied for a home loan, the banks and lenders will assess your circumstances against a number of criteria to determine the answer to this question.

While each bank or lender may be different, many will consider similar factors and information that will be used in determining the final figure that you can borrow. Here we take a look at some of these deciding factors, how you can prepare for them, and also what could influence banks or lenders.

 

Size of your deposit

It’s a given that having a good amount of money behind you is vital if you wish to borrow a large amount. Put simply, the bigger the deposit, the more you stand to receive.

If you are prepared to make a reasonably sized deposit, it is well implied that you have a healthy income coming in. Bear in mind that even if you do have an especially high income and a good credit score, you may be limited if you do not have a reasonable deposit in place.

Employment Status and Income

Your employment status can also play a crucial role in determining how much you may be able to borrow. From a bank’s perspective, an individual who is self-employed, for example, may be perceived to carry more risk as sick days and time off must be accounted for.  Shift workers are also assessed differently by banks and lenders as overtime can be a factor in determining the income of an individual.

Whilst it isn’t necessarily about how much you earn, your employment status may determine how much you can borrow, meaning a steady income is often more favourable.

Type of Loan

The amount you can borrow will also depend on the interest rate and term of your home loan. Put simply, the lower the interest rate, the lower your repayments will be. If you have a longer-term loan, this will mean lower repayments. However, a shorter-term loan may see you saving on interest.

 

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Your Living Expenses

The banks or lenders will also factor in your living expenses and the costs that go into maintaining your lifestyle. The reason they will look into this, is to find out whether you can still maintain it after making your repayments.

If you have applied for a hefty home loan amount, you may need to make slight adjustments to your lifestyle in order to meet your financial commitment.

 

Meeting these Factors

If you can prove that you are truly reliable, someone who can meet financial obligations within a time frame, you will be well on your way to borrowing a high amount. The biggest downfall you could likely face is if late payments are mentioned in your credit history. This will very likely work strongly against your case.

If you believe you’re worthy of a substantial home loan, but want more information regarding the banks or lenders’ decision-making process, then be sure to contact our industry experts on 843-399-4299. You can also book a call online.

Emily Felton

Digital Marketing and Editorial Executive at Carrell Group

Latest posts by Emily Felton (see all)

About Carrell Group:

Carrell Group is the market leading aggregator dedicated to residential home construction and land development. As an independent platform, Carrell Group helps Australians identify and compare new home designs, house and land packages and land estates. It’s the smart way home buyers, who are considering a new build, can find the ideal options to match their individual needs. Home building is a big decision, we make sure you get it right.

Custom Home Builder

What Happens to Property Investment Under a Labor Government? : Carrell Group Blog

With the recent turmoil witnessed within the federal Liberal party that led to the very public change in leadership, and with the current 8% gap in the polls for the two party preferred vote in favour of the ALP, we should all be starting to think about a world governed by Labor in Australia.

While the timing of the next election is largely up to our newest Prime Minister, Mr Scott Morrison, most commentators are now tipping it to be May 2019, at the latest. By no means a slam dunk that the ALP will win the next election with the Liberal party still enjoying preferred PM status in the polls under its new leadership regime, it remains a very high probability we will see a change of government.

parliament-house-canberra

Policy Changes

There are two key policies that will impact property investment that Bill Shorten has been consistently firm on in order to minimise the federal budget deficit. The first is negative gearing, and the second is the Capital Gains Tax (CGT) discount. These two policies are currently costing the nation around $10 billion a year to maintain according to the ALP (and Treasury), which as Bill Shorten has highlighted on many occasions is simply not sustainable on a long run basis. Most would agree something needs to change. So what do the ALP propose to change?

With respect to negative gearing, the ALP propose to abolish the claiming of investment loan costs on property against rental and other PAYG income. Essentially, the interest you may currently be claiming on a property investment loan will no longer be deductible, for properties purchased after the effective date (which is yet to be determined, but likely to be around 1 July 2019).

The exception to this rule under the ALP proposal is when the investment is made into newly constructed housing, which means that if you buy off-the-plan (such as a house and land package) you will still be able to claim interest on your investment loan. Don’t stress if you already have an existing investment property, these rules won’t be retrospectively applied. However, if you are thinking about investing in property moving forward, investing in established property will get a whole lot less tax effective if the ALP policy is enacted.

The CGT discount change is the other major policy change that will impact all asset classes, including property. Currently, if you hold an asset for more than 12 months, if you make a gain on sale you can reduce the taxable gain by 50%. The ALP has proposed to reduce this 50% discount to 25%. So if you make a capital gain of say $100,000 on an asset you have owned for more than a year, rather than paying tax on $50,000 of the gain, you would now pay tax on $75,000 of the gain. Again, investments made before the effective policy date will be grandfathered, meaning you will still be entitled to the 50% discount when sold, but it’s certainly a consideration moving forward for all investors should this policy be enacted.

What’s the Impact on Property Investment?

The proposed negative gearing change is the most significant one, and it’s really the yield on the property that takes the biggest hit. Rental yields on established properties on a gross basis may indeed be 2%, up to perhaps 3% on the odd occasion. However, on a net basis they are often break even or up to about 1% once you factor in the after tax benefit of the currently allowed interest deductions.

Moving forward however, the rental yield on established properties purchased after the effective change date will be negative, meaning you will be out of pocket every month without the tax benefit (which can be realised monthly with a PAYG variation). Given the carve out for newly constructed housing being proposed by the ALP, this will further strengthen the benefits of investing in off-the-plan properties, such as house and land packages, which can generate net yields of 4-5%.

While the ALP is hailing improved affordability for first home buyers from this change, the reality is it will only soften demand for established properties that are already under valuation pressure in most markets across Australia. First home buyers may see some benefit, but the reality for most is median house prices are already so far out of reach (especially in Sydney and Melbourne) that some 5-10% cooling of prices on established homes probably won’t move the dial for most.

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If you are a first home buyer and do want to get into the property market, rent-vesting into a newly constructed property would be a no-brainer under the ALP policies (and arguably already is), where you will still be entitled to claiming interest deductions – and more importantly depreciation at favourable rates on fixtures and fittings (relative to established properties).

The impact on capital values from the proposed changes is a fascinating one. The benefits off-the-plan properties will enjoy in terms of access to negative gearing won’t be able to be passed onto subsequent buyers of the property, so the benefit there on face value is just improved net rental yield. However, should interest rates remain relatively low and the supply picture doesn’t change significantly, new properties will see greater investment demand for the reasons above, and this may continue to fuel capital growth.

Arguably capital values could soften in the short term due to sentiment alone, but property investment has always been about the long-term game, and with supply and demand fundamentals solid in most markets across Australia on a long-term basis it’s unlikely to hit capital growth for those that stay the course. As for the CGT discount changes, well we are still better off than we were pre September 1999 when the discount was first introduced.

If you’re an investor or first home buyer and looking to get into the property market but aren’t sure where to start, speak to a consultant at Carrell Group on 1800 184 264, or book a call.

Alternatively, you may wish to attend one of our property investment seminars, find out more details at www.ibuildnew.com.au/investment-seminars.

Daniel Peterson

Daniel Peterson

CEO at Carrell Group

Daniel is CEO of Carrell Group, after building 3 homes himself including dual villas in Bali he has plenty of personal experiences that makes him a strong advocate for the new home building industry.

Daniel Peterson

Latest posts by Daniel Peterson (see all)

About Carrell Group:

Carrell Group is the market leading aggregator dedicated to residential home construction and land development. As an independent platform, Carrell Group helps Australians identify and compare new home designs, house and land packages and land estates. It’s the smart way home buyers, who are considering a new build, can find the ideal options to match their individual needs. Home building is a big decision, we make sure you get it right.

Custom Home Builder

Moving Interstate? Ask your removalist these 8 questions

Piece by WridgWays.

 

When moving interstate you want to make sure you’re fully prepared. If you’re planning on moving with removalists, you’ll want to find out that they know what they’re doing and are qualified to move all your belongings safely interstate. How do you find this out? By asking them the following questions!

  1. Are they accredited and insured?

It’s good to know that the company you are using when moving interstate is well qualified. You don’t want to end up moving with a company that is not insured or accredited as if your belongings are lost or stolen there is no way you’ll get them back.

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  1. Can they give you an accurate quote?

Early on you need to make sure they give you an accurate quote for how much your move will cost. This will help you to budget accordingly and ensure you have enough money set aside for emergencies. This will also help you to find the best removalist for your move.

  1. Are there additional charges not included in the quote?

Before moving interstate and signing the contract with your removalist you need to check that there aren’t any hidden costs. You don’t want to find out later that you’re being charged for services that you didn’t know would cost extra.

  1. What do you need to do before moving day?

In the lead up to moving interstate, there are lots of things to do. It may be worth asking the removalists what they expect you to do before you move as they might have a specific list of tasks that need to be done. This will help you save time and effort on moving day, so you can get to your new home faster.

  1. Are there any prohibited items?

Some items may not be able to be shipped if they are too dangerous or risky. You’ll need to talk to your removalist if you think you have anything that may be considered a risk to transport to find out what your options are.

removals

  1. Do they do the packing and loading themselves or use a third party?

Some moving companies use third parties to load your belongings into shipping containers. If this is the case, you’ll need to look into this third party as well. You need to make sure they are accredited and a legitimate business as you don’t want to put your belongings at risk with a company you don’t trust.

  1. Are there any quarantine restrictions for where you’re moving to?

When moving interstate you need to consider the quarantine restrictions in the state you’re moving to. Some states have stricter policies than others, so ask your removalists what items are banned from the state so you know to avoid bringing them.

  1. What is their cancellation policy?

It’s good to check what the cancellation policy with the moving company is in case you do need to cancel your move. You don’t want to find out later that you’ll be charged a large amount of money to cancel your contract. It’s much easier to find out before it’s too late!

Want to build your own home but aren’t sure where to start? Contact our expert consultants on 843-399-4299 or book a call online today!

Emily Felton

Digital Marketing and Editorial Executive at Carrell Group

Latest posts by Emily Felton (see all)

About Carrell Group:

Carrell Group is the market leading aggregator dedicated to residential home construction and land development. As an independent platform, Carrell Group helps Australians identify and compare new home designs, house and land packages and land estates. It’s the smart way home buyers, who are considering a new build, can find the ideal options to match their individual needs. Home building is a big decision, we make sure you get it right.

Custom Home Builder

Are We Moving Towards a Buyer’s Market?

With falling markets in Sydney and Melbourne and analysts such as Louis Christopher from SQM Research expecting further declines, do these property cycles now point in a direction favourable to buyers – making it a good time for investors and first-home buyers (FHBs) in Victoria and NSW?
According to latest Core Logic data, October’s auction clearance rates hover at around 50 per cent for Melbourne and Sydney. QBE’s Australian Housing Outlook for 2019 also predicts further respective falls of 4.2 per cent and 3.5 per cent.

Many commentators seem to agree there’s no rush right now for investors, while the FHB contingent does more heavy lifting and becomes active in the north-west fringe of Melbourne and mortgage lending increases 74 per cent for FHBs in Sydney.   

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Are we in a Buyer’s Market?

Terms like “buyer’s” and “seller’s markets” are used by property commentators to convey an idea that one party holds negotiating power over the other in the interest of a residential sale property, such as when seller supply overwhelms buyer demand (Buyer’s Market) or vice versa, when supply can’t keep up with demand (Seller’s Market) giving sellers the negotiating edge. The sound of “buyer’s market” becomes loudest as a cycle’s heat ripples from the inner ring towards the outer suburbs – latest data figures suggest only 17 suburbs across metropolitan Sydney and Melbourne are still gaining value, while regional NSW and VIC have 59 and 42 growth suburbs respectively.

Typically, the majority of house purchasers enter during a rising (Seller’s) market, when property prices are nearing their peak and about to flatline. In Melbourne and Sydney, this was between 2015-2017. Buying in today’s falling (Buyer’s) market presents a less experienced buyer with greater uncertainty and possible negative equity until 2020 (as AMP’s Shane Oliver recently predicted) but often more opportunities, depending on how advanced they are in their financial preparation and knowledge of the property and its suburb’s historical growth trajectory.

What does this mean for investors and first home buyers?

When making rational buying decisions, it can be beneficial to momentarily tune out the commentary and ask, regardless of the market conditions, does a property purchase, be it house and land or investment, align with your specific and longer-term goals?

For instance, professional investors tend to buy properties (and land to develop or subdivide) below their intrinsic, or historical value, with scope to renovate or manufacture value often in a gentrifying precinct – usually, if timing is ideal, just before the peak rush of a buyer’s market as seller sentiment further declines and prices approach cyclical lows. Such investors have a knack for capitalising on a vendor’s desire to sell quick in busy middle-ring areas. First home buyers can stimulate the next phase of the cycle as it’s more generally declared a buyer’s market – low auction clearance rates, higher number of houses passed in, rising interest rates, and tighter lending conditions for investors albeit more government stimulus packages and incentives for FHBs. Even applying a broad term like “property cycle” can be misleading when considering every capital city is at different growth stages and within that, has dozens of suburbs all at different cyclical stages.   

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What should you consider as a purchaser?

Gradually, confidence pours back into the market as the cycle reboots, and recent Australian property booms have lasted five to seven years followed by falling asset periods of between two to three years. So, knowing when the time’s right to buy can often be less about fixating on where the market is at and more about a focus on personal circumstances to buy at a price you consider fair and in line with your knowledge and expertise. Things to consider would be:


Stress testing your budget with a mortgage broker and taking into account unforeseen events that may impact your ability to service a loan

Consulting with preferred builders found on Carrell Group to firmly cement ideas and compare quotes and construction periods and/or discover what new areas have planned gentrification and development activity or oversupply issues

Thoroughly researching a postcode and street you intend to build or invest in to ascertain it’s lifestyle amenities/facilities, demographics and neighbourhood character

Investigating whether government or council grants and concessions may help further your investment or FHB goals

Asking yourself where you see yourself in a decade or more and how the property may fit this vision. Are you buying a house to make your home and wanting to invest in other asset classes during that time as opposed to buying a house that will be someone else’s home?

If you’re thinking of investing in property or taking your first steps towards entering the property market, book a call to find out how Carrell Group can help.

Mark Bunker

Mark Bunker has an honours degree in Communications, Film & TV. Alongside a background in journalism, his interests include script writing and photography.

Latest posts by Mark Bunker (see all)

About Carrell Group:

Carrell Group is the market leading aggregator dedicated to residential home construction and land development. As an independent platform, Carrell Group helps Australians identify and compare new home designs, house and land packages and land estates. It’s the smart way home buyers, who are considering a new build, can find the ideal options to match their individual needs. Home building is a big decision, we make sure you get it right.

Custom Home Builder

Kitchen Renovation under $5000 : Carrell Group Blog

Some might say that a $5000 budget is unrealistic when it comes to kitchen renovation.  But there’s a lot you can do to have it on trend in 2018 if you stick to a simple, classic approach. Aside from potential plumbing and electrical work, most people can undertake a low-budget kitchen renovation with minimal hassle providing it doesn’t need a complete layout overhaul.

The Bordeaux by Metricon

Experience sleek kitchen design with The Bordeaux by Metricon.

First Things First

One kitchen renovation idea to consider is updating your cabinets and cabinet lighting, paint, hardware, flooring, storage, appliances, and countertops.

Look first to replacing damaged or dated cabinets. Colours trending this year are whites, greys and blacks. Budget $1500 but factor in additional expenses for hardware such as handles, which could cost an extra few hundred dollars, as would new kitchen faucets and sinks. Pendant lights are also worth considering.

Don’t forget making the most of wall cabinet storage. Slimline cabinets are worth considering placed over a freestanding fridge and enclosed with two pantry end panels for a sleek look and extra storage space. Have at least two sets of drawers with inserts. Kitchen islands for storage are increasingly doing the heavy lifting in 2018 and are getting larger in open plan areas as a result.

Resurface Your Benchtops

Look next to updating countertops to enliven the kitchen’s feel. Look to materials that compliment your cabinets such as laminate, which can present the look of stone. Other styles are vinyl, bamboo, concrete and tile. For a few hundred dollars you can resurface benchtops, tiles, and cupboards with specialty paints from White Knight Paints and Rust-Oleum.

The Stanley by Masterpiece Homes

Embrace stylish, open-plan living with The Stanley by Masterpiece Homes

Consider Upgrading to a Smarter Kitchen

Replacing appliances will significantly increase one’s budget so consider a bargain appliance package of between $1000 and $2000 or look for products that can revitalise the appearance of aged appliances and bronze rangehoods. Consider an upgraded dishwasher, refrigerator and stove— all with matching character. Smart kitchen technology is also trending in 2018, so consider what you can get away with and consider on trend grey-toned appliances in a dark brushed metal finish.

 Refresh Your Flooring  

Flooring costs depend on square meters and material. Consider less expensive popular options such as linoleum and vinyl which, for average sized kitchens, can cost under $2000. Floorboards can be costly so if you intend to update a tiled floor, consider Gerflor’s DIY stick-on vinyl flooring for a fresh floorboard look. Ceramic tiles are increasingly popular in 2018.

We hope this guide provides food for thought when tackling your next budget kitchen renovation. Don’t forget to book a call with our phone team to find out how Carrell Group can help!

 

Mark Bunker

Mark Bunker has an honours degree in Communications, Film & TV. Alongside a background in journalism, his interests include script writing and photography.

Latest posts by Mark Bunker (see all)

About Carrell Group:

Carrell Group is the market leading aggregator dedicated to residential home construction and land development. As an independent platform, Carrell Group helps Australians identify and compare new home designs, house and land packages and land estates. It’s the smart way home buyers, who are considering a new build, can find the ideal options to match their individual needs. Home building is a big decision, we make sure you get it right.

Custom Home Builder

Suburb Profile: Ballarat – Carrell Group Blog : Carrell Group Blog

Once a thriving gold rush town, today Ballarat is the third largest inland city in Australia and the fourth fastest growing in the country. It’s the commercial capital of the Central Highlands and has been dubbed the capital of Western Victoria, populated by 106,000 residents growing at 1.9% per annum.

Unlike other mining towns, the Ballarat fields experienced sustained high gold yields for decades, seen today in the city’s architecture. Increased interest in the history of Ballarat has enabled its surrounding gold mining villages to be re-energised with tourists. In addition to the heritage trails and outdoor walks, Ballarat’s surroundings are known for gourmet food and fine wine estates.

Ballarat’s real estate hubs have become talking points for property buyers looking outside Melbourne for value, lifestyle, and growth. Recent figures from Core Logic show the city’s median house price at $433,000 with annual capital growth of 6.34% and the median apartment price $235,500, growing 9.19% on the previous year. Period homes remain popular with investors as first-home buyers look to new housing estates in Alfredton, Delacombe and Lucas town centres. Also, Ballarat city council is one of the municipalities where first-home buyers are eligible to receive $20,000 when building or buying a home valued at up to $750,000.

The Neighbours

Ballarat’s demographics are established couples and families (18%), independent youth (16%) and older couples and families (16%), while older Independents (11%), maturing couples and families (10%), maturing and established independents (10%), elderly singles (9%), elderly couples (3.9%) 2.3% elderly families (2%) and young families (2%) round it out.
Predominant occupations include healthcare/social (19%) education and training (11%) and retail trade (11%).

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The Commute

Ballarat lies 110 kilometres northwest of Melbourne, about 75 minutes via car on the Western Freeway and 90 minutes via train from Southern Cross station.
The city is accessed via four major highways namely the Western Highway leading to Melbourne, the Midland highway which links to Geelong, the Glenelg Highway which leads onto Adelaide and the Sunraysia Highway, which links to the Calder Highway. A V/Line train from Southern Cross arrives at the 19th century-built Railway station in the centre of town.
A plus for locals, most cultural events in Ballarat can be accessed on foot without the hassle of public transport or road traffic.

Shopping for the family

Other employment hubs are found in and around the CBD’s busiest thoroughfare Sturt Street, which includes a shopping mall, restaurants, and the Visitor’s Information Centre.
Major supermarkets are Coles, Woolworths and ISC all nestled within a stone’s throw of Sturt St, as are Target and Big W. There are also plenty of galleries and museums within striking range surrounding the CBD.

The school run

It’s been said by local estate agents that young families are attracted to the area’s education options, with a good mix of private, Catholic and government schools for them to choose including Ballarat Clarendon College (private co-ed), Ballarat High School (government co-ed), Loreto College (Catholic girls) and St Patrick’s College (Catholic Boys). There are also two special development schools and nine primary schools. There’s also Federation University Australia SMB campus in the CBD.

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What’s going on?

There’s a lot to check out in Ballarat for families, whether it be a day out in Sovereign Hill, or extended stays at BIG4 Ballarat Goldfields Holiday Park or a getaway to the Winter Festival.
Popular with locals and visitors is the Mitchell Harris Wine Bar, Red Duck Brewery, The Forge Pizzeria, and Yellow Espresso Café.
Festivals held in Ballarat also include the ‘BOAA – a Visual Arts Festival’, showcasing over 150 of Australia’s most innovative contemporary artists, there is also ‘The Ballarat Cup’ at the end of the Spring Racing Carnival. Next month the city holds ‘The 72nd Australian Jazz Convention’ across venues in the historic quarter of one of the gold mining icons from Boxing Day until New Year’s Eve.

For more information on land estates and house and land packages in Ballarat, book a call with the friendly team of experts at Carrell Group.

Mark Bunker

Mark Bunker has an honours degree in Communications, Film & TV. Alongside a background in journalism, his interests include script writing and photography.

Latest posts by Mark Bunker (see all)

About Carrell Group:

Carrell Group is the market leading aggregator dedicated to residential home construction and land development. As an independent platform, Carrell Group helps Australians identify and compare new home designs, house and land packages and land estates. It’s the smart way home buyers, who are considering a new build, can find the ideal options to match their individual needs. Home building is a big decision, we make sure you get it right.

Custom Home Builder

Are you ready for a custom home building project? : Carrell Group Blog

Are you thinking of embarking on a custom home building project? Throughout the process of a house building project there are many advantages of using a custom builder. Before committing to a custom home building project there are many things you may wish to consider. Things can get tricky when building a custom home, and one of the main advantages of building with a custom builder is the amount of support you will receive from professionals along the way.

Flexibility & Customisation

Contrary to popular belief, volume builders do allow for customisation. They often offer a wide range of inclusions and upgrades so you can fix your home to your needs and budget. Ultimately, however, the more modifications you add on, the more your custom home building project could cost.

This is different when acquiring a custom builder. If your project requires a unique, personalised touch with higher levels of customisation, a custom builder will be an apt choice. It is important to make this consideration well before you make any commitments toward one or the other.

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Sunbury Custom Build, ZESKON Homes

Land Dimensions

Whether you already own the land or are contemplating a knockdown/rebuild, consider the land’s dimensions and location. Both factors may influence what type of builder you should be working with.

It is also important to consider that a volume builder’s home designs won’t take into consideration your block’s orientation to natural light, nor bushfire regulations in particular areas. Custom builders will take these factors into account and build accordingly.

Your Budget

Put simply, project homes can be cheaper, and are generally less risky if you are uncertain and working cautiously toward a strict budget. Custom homes, on the other hand, can be tailored exactly how you would like them, right down to the minor detail. You will need to weigh up whether the extra costs equal the value of customisation.

Uncertainties

There is a certain unknown that comes associated with building your custom home. In the case of project builders, they typically have 50-100 pre-set home designs to pick from. The majority of these volume builders have a diverse selection of display homes which are on display for you to check out.

The advantage in this is that you walk through a display and get a genuine feel of what your home may end up like. Things like space, how the house flows, if everything is how you pictured it well before you make your final commitment.

With custom builders, you will only be able to view previous work they have completed to get a sense of how they work, and their capabilities. You won’t be able to experience the design itself, apart from going over floor and layout plans.

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How can Carrell Group help?

For more information regarding financial options when building, or investing in a house and land package, or other investment opportunities, be sure you speak to one of our home building experts on 843-399-4299.

They are independent and motivated to see you achieve your property and investment goals. You can also book a call online.

Latest posts by Emily Felton (see all)

About Carrell Group:

Carrell Group is the market leading aggregator dedicated to residential home construction and land development. As an independent platform, Carrell Group helps Australians identify and compare new home designs, house and land packages and land estates. It’s the smart way home buyers, who are considering a new build, can find the ideal options to match their individual needs. Home building is a big decision, we make sure you get it right.

Custom Home Builder

Should You Consider a Rebuild Project : Carrell Group Blog

If you’re well settled in the location you’re in, but feeling like a home overhaul, then a total knockdown and rebuild may some something to consider.

The rising costs of renovations in recent years has resulted in knocking down and rebuilding becoming the smarter, safer option. Building a new home takes time, resources and money, but more than that – it takes copious amounts of planning and discussion. What to build? How to design it? What to spend? There are so many big questions to address.

A knockdown and rebuild project may be an option for those living in more outdated homes.

The modern home has become a far cry from older models – rooms have become more spacious and windows have become larger allowing more natural light, while other areas of the house have surpassed their traditional functions and transformed into greater general living spaces.

It can be tricky to know where to start with a knockdown and rebuild project. To make things easier, here’s our list of things to consider before getting started.

 

Consider your family’s wants and needs

This kind of project allows you to consider the needs of your family and tailor your new home accordingly. After formulating your budget, you can create a design that will meet these needs, be it space for playtime for the kids, or a place to escape to for the parents.

Floor plans will vary from builder to builder, there are a healthy variety of diversified home designs. Space is often a priority when rebuilding a house as families grow and change.

 

What are the costs of maintaining your current home?

High maintenance costs can be part of the package when living in an older home. Fixtures and features can become outdated and need overhauling and unavoidable touch-ups to the house can become expensive when factoring in the cost of contractors and renovations.

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What are the other costs you need to be aware of?

Knockdown and rebuild projects often come with unexpected costs which can add up considerably throughout the duration of the project. We’ve put together a list of the costs that you can expect to help remove the element of surprise.  

 

Demolition

The cost of demolition will vary based on a range of factors including the amount of work involved, the materials used, and site accessibility. You should be prepared to pay anywhere between $10,000 to $20,000.

 

Asset Protection

As the owner, it will become your responsibility to contact your local council regarding the asset protection needed. This type of protection will give you cover for any damage to council assets during the construction process. The firm undertaking the demolition of your home will require a copy of your documents before proceeding with the project. This type of protection will give you cover for any damage to council assets during the construction process.

 

Site Feature Survey

This includes the crafting of a scale drawing of your build site – including depicting easements, and falls on the land, service connection points and other site fixtures.

 

Site Preparation

There will be costs involved before you are able to commence building on your site. Again, these will vary in accordance with features on your block. These may include – fences, trees, soil classification, and slope. Once this information is obtained, you can begin to work out your site costs.

 

Contact Us!

If you’ve come to the big decision and want to go through the processes of knocking down and rebuilding your home, we can help you. We can help you find the right professionals for the job, along with the right builders who are willing to take on your challenge.

For more information regarding brand new investment opportunities, including knockdown and rebuilding a new home, be sure you speak to one of our home building experts on 843-399-4299. You can also book a call online.

 

Emily Felton

Digital Marketing and Editorial Executive at Carrell Group

Latest posts by Emily Felton (see all)

About Carrell Group:

Carrell Group is the market leading aggregator dedicated to residential home construction and land development. As an independent platform, Carrell Group helps Australians identify and compare new home designs, house and land packages and land estates. It’s the smart way home buyers, who are considering a new build, can find the ideal options to match their individual needs. Home building is a big decision, we make sure you get it right.

Custom Home Builder

What does Capital Gains Tax mean for you? : Carrell Group Blog

 

Capital gains tax can be a complex thing to wrap your head around, especially when you’re first introduced to it. Like most tax and accounting related topics, it is a matter of unpacking and making sense of everything slowly and surely. This is our guide to what capital gains is and how it applies, as well as how it will impact on your property transactions.

What is capital gains tax?

The capital gains tax is a government levied tax on the profit made from selling particular types of assets, including property. In very simple terms, a capital gain is calculated through determining the total sale price minus the original cost of the asset, less any selling costs.

When does it apply?

Capital gains tax applies in the financial year a capital asset is sold. The date of the contract is deemed to be the transaction date for capital gains, not the settlement date, so be conscious of this depending on which tax year you want the gain (or loss) to be attributable. This can be particularly important when transactions are being completed around the June or July timeframe, ie. close to the 30 June financial year end.

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How much is it?

Unlike some tax jurisdictions, in Australia there is no set rate applied to capital gains tax, but rather an individual’s marginal tax rate applied. Capital gains are calculated as the difference between sale price, less associated selling expenses, agent commission, solicitor fees, building inspections and so forth, less the original purchase price. If you are an investor and have been claiming building allowances and depreciation on the fixtures and fittings of the investment property, the amounts claimed also need to be deducted from the original cost (or cost base) of the property when calculating the taxable capital gain.

A 50% discount on capital gains tax is then applied if the asset is held for more than 12 months, although a new proposal by Labour could see this reduced to 25%. The discounted gain is included in the individual’s tax return as assessable income, along with their employment income and any other income, with normal marginal rates of tax then applied.

Are there any exceptions?

The main exception is in relation to property, which is the principal place of residence exemption. This means the sale of your family home is capital gains tax-free.

If your home is built on land over two hectares, not all of the gain will be exempt. Providing a property to a member of your family will, in most cases, not exempt you from capital gains tax. Exceptions to this would be circumstances, such as a via a will, or family trauma. A property which has been ‘gifted’ will be declared to be the market value at the time of the transfer of the property. We recommend you always seek tax advice from a certified accountant if you face any of these more special cases.

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Can capital gains tax be minimised?

Yes, your capital gains tax can be minimised over time, specifically if you hold the property for more than 12 months where you get access to the 50% CGT discount. You will need to ensure you maintain all records of every cost in relation to the purchase of your property, and sale of your property. You will also need to provide records for any improvements to the property while it’s yours that you may be claiming depreciation on.

How can Carrell Group help?

For more information regarding investment opportunities, be sure to speak to one of our home building experts on 843-399-4299 or book a call online.

 

Emily Felton

Digital Marketing and Editorial Executive at Carrell Group

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About Carrell Group:

Carrell Group is the market leading aggregator dedicated to residential home construction and land development. As an independent platform, Carrell Group helps Australians identify and compare new home designs, house and land packages and land estates. It’s the smart way home buyers, who are considering a new build, can find the ideal options to match their individual needs. Home building is a big decision, we make sure you get it right.

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Create Your Dream Master Bedroom Design With These Tips

The master bedroom design is among the most important in the home – whether great or small, it can be transformed into so much more than you think.

Before you begin creating or revitalising your own space, our premier tip is to maintain focus on the room’s basics, and work from there. Typically, the master bedroom is the most spacious in the house, and there are certain elements which help define it, or help provide essence to the concept.

The bedroom contains the basics – in the case of the master bedroom, there is so much more wiggle room for flexibility in design, a versatility that offers you so much more. Let’s go through concepts and pieces that could be on offer for your most comfortable, deluxe and personalised haven.

Consider Your Needs

Before you start the design and decorating process, map and measure out your space and ask what you want for the bedroom. Would you prefer to keep your room exclusively for relaxation? Do you enjoy winding down at night by watching TV or reading a book? By addressing these questions, you will be able to determine what kind of furniture, lighting and other features you’ll need.

Lighting Choices

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The influence of lighting in a room cannot be understated. It is important for both function and mood setting. Typically, a bedroom has a singular light fixture (or fan/light) in the centre of the ceiling that functions to illuminate the entire room. Given the size of the master bedroom, you can make an upgrade on this.

It doesn’t necessarily need to be ceiling lights, adding lighting which is fixed into ceiling or the walls can really brighten up the room. Also, consider upgrading your bedside lights to a fresher design, or simply purchasing the same, but bigger.

Focus on Storage

Provide your master bedroom with a sense of practicality and convenience. If you find there’s too much clutter around the place, it’s time to bring the concern to the forefront of your design.

Don’t just rely on your closet, wardrobe and bedside table, use the most of all your bedroom’s space. Choosing storage fixtures that are versatile and can be customised to cater to your space and needs. If you feel like you will be re-designing and re-jigging your bedroom down the line, install open shelving that can easily be moved.

Seating

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If you consider your bedroom more than just a place of rest, and more a place of relaxation, then consider making it a room where you would want to spend your free time. One sure-fire way of doing this is adding a seating area, away from your bed, for when you feel like the alternative.

There are many different seating options, so you will be spoilt for choice. If your favourite relaxation activity is reading a book, then perhaps a more traditional armchair is the right choice. If you are more into catching up on a TV show, or going on your laptop, then consider a two-seat couch or smaller lounge sofa.

How can Carrell Group help?

For more information regarding property renovations, be sure you speak to one of our home building experts on 843-399-4299 or book a call online.

Carrell Group

As a South Carolina and Myrtle Beach custom home builder for over 31 years, the Carrell Group has helped thousands of happy homeowners build the new custom-designed home of their dreams.

Latest posts by Carrell Group (see all)

About Carrell Group:

Carrell Group is the market leading aggregator dedicated to residential home construction and land development. As an independent platform, Carrell Group helps Australians identify and compare new home designs, house and land packages and land estates. It’s the smart way home buyers, who are considering a new build, can find the ideal options to match their individual needs. Home building is a big decision, we make sure you get it right.

Custom Home Builder