More and more Australians seem to be getting homes constructed rather than buying new ones, according to recent Australian Bureau of Statistics data. In its Building Approvals figures for October 2014, it was noted that private sector house approvals increased by 12.7 per cent in seasonally adjusted terms over 12 months. In trend terms, this was an increase of 9.7 per cent.

So clearly, people are eager to build from scratch. With many first home buyer grants available, they could be incentivising Australians to get their own piece of paradise. But when you decide totake out a construction loan and do this, it can be difficult to know which piece of land to pick. Here are some guidelines on choosing the right foundation for your real estate.

Picking the right kind of soil

There are many types of different soil in Australia, and they can all have different impacts for the foundations of your property. Sandy compositions are more susceptible to erosion, according to CSIRO, while many clay types can be stable. It all depends on the exact composition, and the type of foundations and building you want to construct.

Getting the right soil advice is important, which brings us to the next step.

Get it surveyed

If you are overseeing construction yourself, make sure to get the land you choose surveyed before the first sod is turned. This way you can move ahead confidently, knowing the plot is suitable for the type of construction you want. Otherwise, you may be making a costly mistake.

Check the connections

The cost of hooking a new construction up to water, electricity and phone lines may be more than you think. Check with experts again before you choose a block of land to build on, and factor these costs into your construction loan planning.

You can contact a Smartline Mortgage Adviser on 13 14 97 for home loan advice. Or complete our call request form and we’ll call you!