The saying is, “timing is everything. But then they say, there is never a perfect time for anything”
And many events in our lives recently may have proved how certain this saying is.
When asking someone for a favour, you can’t ask them when they’re overly busy or when they’re not in a good mood. You need to talk to them at the right time. You need to speak to them when they’re relaxed, so they can think freely about whether to give your requests or not.
So you can see? Timing is indeed everything.
And so its with building the home you ever dreamt of.
Building a new home means stepping up into an important event in your life and we can say that it’s one of the most important investments you’ll ever make. Imagine the effort, the money, and the time you will have to give for your house to be built— it’s definitely a big-time investment!
This is why there are many things to consider when building a home, including the current market conditions. With the constant changes in the economy recently, there is an important question you have to ask before you start your dream home project.
And the question is…
“Is it the best time to build your new home now?”
In this article, we’ll help you determine the best time to build the home of your dreams.
How To Know If It is The Best Time to Build a New Home?
The truth is, there’s no exact answer to the question, “Is it the best time to build my home?”. It’s because there are still some underlying questions and things that we should also check and consider as well.
To have an idea if it’s the right time to build your home, here are the things you should do.
Check the current, house prices.
House prices, like most other markets, are not always stable. There are times that they will rise and there are times that they may fall, but history has shown in Australia that over a period of time house prices will always increase in value, so to know whether it’s the best time to build your dream home or not, you need to determine your long term goals.
When it comes to building a home or purchasing land, people often talk about such things as ‘timing the market’ or the ‘right time’. History has shown that It’s impossible to calculate this, and the reality is actually timing spent ‘in the market’ is always favourable.
Whilst we can only give our opinion and many others it seems, but the property market has shown signs of retracting in the last 6 months, this creates an opportunity for home purchasers to get into the market that perhaps was not an option previously.
History demonstrates that increased prices stemming from inflation never drop back to pre-inflation prices. This means that the rise in construction costs isn’t temporary; they are the new normal.
So, does this mean there is no better time to build your dream home than now?
To better help you with your decision-making, here’s a glimpse of the NSW house construction price movement up until now, and what is forecasted in the coming year.
According to Property Update’s latest property forecasts, New South Wales has seen the construction cost increase by 11.1% over the 12 months to December 2022, compared to 7.0% over the 12 months to December 2021, this has been the fastest pace of annual growth the state has ever seen since December 2000 when construction costs increased by 12.3%.
As you can see construction costs have soared in recent times, but new forecasts give hope for when the crisis could ease.
Construction cost inflation in the greater Sydney region is predicted to slow from 6.9% down to 3.9% over the coming year.
The expectation that costing will ease through to next year also is due to the declining demand for products and services, likely caused by the current inflationary pressures.
Check the interest rates.
If your interest rates are lower, it is possible for you to borrow more money to help you build your home. That’s why it’s one of the things you should consider before making your decision.
Property Update reports show that Australia’s current interest rates have continuously risen over the last 12 months, and now the Reserve Bank of Australia have also announced they are expected to go a little further throughout the first half of the year if required to curb the rising cost in Australia, otherwise known as inflation. However, there is some very positive news that the inflation index is now starting to stabilise and is predicted to slow or even start to come down in the second half of this year. This will result in interest rates lowering and your borrowing capacity to increase.
So with that in mind, the average time to design a home and get council approvals to get to the stage of actual construction is on average 6 months, and possibly longer for more complex designs, then there is the actual construction timeframe for your house to be built, which is typically 6 to 9 months duration obviously this varies pending on your design. So if you dream of being in your home in 2024 or even 2025 you really need to get started on your planning now!!
Be updated with global issues.
You also need to keep in mind that the economy is also being impacted by the things that happen globally, like the global COVID-19 pandemic, or like the Russia-Ukraine war, and other issues affecting the movement of commodities in the market.
COVID-19 did not only affect our health, but it’s also to be blamed for the global supply chain issues we faced for the past three years. It has negatively affected both the pricing and material availability and delivery timeframes, while state and international border restrictions led to unmanageable labour shortages also. The good news is that the borders have all reopened and we are slowly seeing the supply of materials and services going back to pre covid normal timeframes and seeing we are seeing the cost of raw building materials start to stabilise if not reduce in cost to what we have seen over the last 2 years.
Our Final Word
Considering all this information we gathered, we recommend you start on your building journey and seriously consider building your dream home now. If you think you got the budget and your heart is ready to make your dreams come true, there’s no better time to get started than now!
It might seem daunting, but we can guide you through this process and provide you with all the information required to make the best decision for you and your family.
Talk to a luxury home building expert today like CKS Projects.
Building a luxury home can be stressful and we want to help you have a more enjoyable experience. We created a FREE guide you can follow to avoid costly mistakes and ensure your dream home gets built exactly how you want it.
Just click on the link below to download 7 THINGS YOU MUST KNOW BEFORE DESIGNING YOUR NEW HOME.