So, your builder has shown you a design, confirmed it fits on your block, and provided a price estimate that you’ve accepted. What’s next?
Here are 5 Key Steps in the SDA Housing Construction Process that all SDA home buyers need to know.
Step 1: Reviewing Your Building Contract
You’ll receive a building contract. Before signing, take the time to understand it. Make sure you know exactly what’s included and excluded. Are the provisional cost allowances reasonable?
Note: This contract is only the start. It won’t include final details like engineering, which could affect the price.
Once signed, send a copy to your finance broker.
EXPERT TIPS!
Tip 1: The contract is written to favour the builder. Read it carefully. If something isn’t clear, ask questions or consult a solicitor.
Tip 2: Record all important dates somewhere you’ll see them often.
Step 2: Finalising Construction Drawings
To finalise the construction drawings, the builder will require payment. Here are your options:
- Pay the building deposit: This enables the builder to proceed with:
- Soil report
- Engineering drawings
- BASIX report
- This is the fastest option if you don’t require finance or are certain you’ll get it.
- Wait for finance approval: Once approved, pay the deposit.
- Pay for a soil report only: Soil reports are inexpensive but can take up to a month. If you’re confident about finance, this can shorten the pre-construction timeline.
Note: Final construction drawings can change costs. Speak to your broker about including these changes in your loan.
EXPERT TIP!
Get a copy of the electrical plan and sketch your furniture placement. Make sure power points and TV points are in the right spots. Don’t skimp on outlets.
Step 3: Building Approvals and Certification
Once you’ve obtained building approval, gather all your reports, drawings, and the SDA preliminary certification. These are vital for registering your home with the NDIA, particularly the SDA compliance certification.
Request a DWG file of the floor plan and facades. This will be useful for creating artist’s impressions for marketing. Don’t forget to get a copy of the builder’s insurance documents for your finance broker.
EXPERT TIP!
Monitor each stage of construction. Don’t assume everything is progressing on schedule—check regularly.
Step 4: Getting Marketing Underway
As your SDA housing construction process progresses, it’s time to market your property. List it on platforms like Nest or Housing Hub. You’ll likely need to sign a contract with an SDA provider, so review the SDA provider agreements thoroughly.
EXPERT TIPS!
Tip 1: Understand any marketing costs. Get a breakdown of how the money will be spent and ensure agreed tasks are completed, like uploading ads to portals.
Tip 2: Check your ad regularly to make sure it’s accurate and up to date.
Step 5: Nearing Completion
As your project nears completion, update your SDA provider with expected timelines. These may change, so maintain communication with the builder and provider.
Here’s what to consider:
Make last-minute decisions about fixtures and fittings.
Arrange for window coverings: measure, quote, and install.
Address special requests from care providers or SDA providers.
Plan for white goods and furniture selection and installation.
Important: Unexpected costs are common. Budget for white goods, furniture, and a $20,000 contingency fund.
Certification Note: Obtain the final SDA compliance certification and provide it to your SDA provider. Without it, your property cannot be registered as an SDA home with the NDIA.
EXPERT TIP!
Hire a building inspector. They can spot issues early, making fixes easier before participants move in.
FAQs
Q: What is a provisional cost allowance?A: It’s an estimated amount in the building contract for items that aren’t fully detailed yet, like soil conditions or fixtures. Review these amounts to ensure they’re reasonable.
Q: Can construction drawings affect costs?A: Yes, they can. Work with your finance broker to ensure your loan can cover any changes.
Q: Why is an SDA preliminary certification necessary?A: It confirms your home meets the NDIA’s standards for SDA properties. Without it, your home won’t qualify as an SDA.
Q: How can I ensure my marketing is effective?A: Regularly review your ads on platforms like Nest or Housing Hub for accuracy and updates. Confirm your SDA provider completes agreed marketing tasks.
Q: What should I budget for unexpected costs?A: Set aside $20,000 for contingencies, plus funds for white goods and furniture.
