Kit Homes – Dispelling The Myths
There are still a few preconceived ideas surrounding kit homes. Some are positive and some are negative. As with everything kit homes have advantages and disadvantages but it is important to understand that this industry has come a long way.
Yes, a kit home can save time and money in many instances, but that is not the only focus for companies today. People are choosing these homes for convenience, flexibility, and suitability to Australian conditions.
It’s not always about doing it for less money, it’s about value for money, and getting everything provided on one package, for a set price, and you can see exactly how it will look. This type of time saving aspects are a strong draw card for kit homes. You get to see a good picture of the home you will get and you can tailor that to your individual personality.
Kit Homes Are Not Prefabricated Homes
It’s important not to lump prefabricated homes in with kit homes. Prefabricated homes are pre-built and trucked to the site. You are responsible for the footings and organizing tradesmen to connect water, power and sewerage, and then the already constructed building arrives and is situated on your footings and made secure. Larger buildings come in sections. There are some excellent quality prefabricated homes.
Kit homes refer to homes that arrive in numbered kit form that need to be constructed from beginning to end.
Not just for Owner-Builders
These homes are popular with owner-builders but they are by no means limited to owner-builders. Kit homes are designed to help those interested in constructing their own home and appeal to the do-it-yourself person. But if you don’t have that inclination, you can still have the convenience of a kit home.
It may seem unusual to buy a kit home and then employ a builder who could have sourced the materials himself, but there are still advantages in price and time by doing this. Those who appreciate the convenience of kit homes, but without the time, skills or confidence in being a solo owner-builder can learn a lot by project managing and being a builder’s assistant.
The Same Standards Apply
There is not one set of rule for kit homes and another set for other builds. All houses must follow the same strict guidelines in regulation for the local councils and the state.
Being an Owner-Builder is Easy
Owner-building is not an easy job. There are a lot of things to be taken into consideration and organized apart from the build itself. Consider you skills carefully and seek expert help in those areas you may not be confident in. It might be quite rare for complete novices to building to attempt an owner-builder role alone, but you can learn a lot from assisting a builder and observing the process of the construction. In time you may feel confident enough to do this alone.
Owner-building can be a very satisfying achievement if everything goes to plan, or even with a few hiccups along the way. Be prepared with a few back up people to call on along the way if possible. Get your preparation and planning done in every area to help this be a less stressful time.
They Are All Cheap to Build
Being more cost effective is not the same thing as being cheap. There are a lot of excellent, cheaper choices in the basic range offered by kit homes companies. Any good kit home company will offer upgrades and choices for you. What you final selections are will determine whether your home is a cheap build or not.
You must compare your overall spend including your land, and other services needed to build a home with the prices existing houses are on the market for in the area. Will you still make a profit if you sell the home against what you will spend? Are you looking for the perfect home to stay in for the rest of your life regardless of price? These are the type of questions you must ask yourself to determine what is cheaper for you.
Challenges in Securing Finance
Lenders in Australia take a slightly different view of kit homes to buying an existing home. The reason for this is simple, the banks like to secure their loans against assets. If they lend you money to buy the materials (parts) of a house, then you don’t build the house, they don’t have an asset to secure the loan against. If you have other equity or cash you can show them, then you shouldn’t have any trouble securing a loan against those assets. Once your kit home is at ‘Lock-Up’ stage, you will be able to have the bank valuer asses your home and if you need it release more funds for you to finish the project.
They All Look the Same
Anyone who has looked into kit homes lately know this simply isn’t true. There are many, many designs already created for you, and then you can customise those into something unique if desired.
Be sure to do your own research if you have any doubts about kit homes. You might find they are the perfect solution for your home building needs.
