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>>> SARA JOINS US FOR MORTGAGES
AND MORE.
THANK YOU FOR BEING WITH US HERE
THIS MORNING.
TODAY WE'RE TALKING ABOUT
FINANCING A NEW BUILD.
TELL US A BIT ABOUT WHAT GOES
INTO FINANCIAL A NEW BUILD?
>> THERE ARE THR
EE MAIN WAYS TO
FINANCE IT.
PROBABLY THE EASIEST WAY IS TO
PURCHASE A FINISHED PRODUCT AND
TO HAVE THE BUILDER CARRY THE
COST TO COMPLETION AND THEN
PURCHASE THE HOME AS A HUNDRED
PERCENT FINISHED PRODUCT AND
THEN IT'S JUST LIKE GETTING A
REGULAR MORTGAGE.
IF YOU CHOOSE TO BUILD INSTEAD
OF PURCHASING A FINISHED PRODUCT
THERE ARE TWO WAYS THAT YOU CAN
DO THAT.
FIRST AND FOREMOST YOU CAN DO A
SELF-BUILD.
THAT'S WHERE YOU WOULD BE THE
CONTRACTOR.
YOU WOULD BE RESPONSIBLE FOR
ORGANIZING ALL OF THE TRADES AND
ENSURING THAT IS PROCESS GOES
SMOOTHLY.
YOU COULD ALSO HIRE A CONTRACTOR
TO DO ALL OF THAT WORK FOR YOU
AND MAKE SURE THAT THAT PROCESS
GOES SMOOTHLY.
AS A BUYER THAT'S PROBABLY THE
EASIER WAY OF THE TWO WHEN
YOU'RE LOOKING AT BUILDING.
>> IT SEEMS LIKE IT COULD GET A
LOT COMPLICATED.
WHAT IS THE PROCESS LIKE FOR
PEOPLE GOING THIS ROUTE?
>> OKAY, WELL, THE PROCESS I
GUESS FIRST OF ALL WOULD BE TO
UNDERSTAND THE COSTS, TO MAKE
SURE THAT YOU UNDERSTAND WHAT
THE FINAL AMOUNT IS GOING TO BE.
SO WHETHER YOU'RE BUILDING
YOURSELF OR WHETHER YOU'RE
TALKING WITH THE BUILDER
UNDERSTAND WHAT IT IS YOU'RE
LOOKING FOR, WHAT SORT OF
UPGRADES YOU MIGHT BE INTERESTED
IN BECAUSE THOSE CAN ADD A LOT
OF EXPENSES ALONG THE WAY, FOR
EXAMPLE, ARE YOU LOOKING AT
LAMINATE OR HARDWOOD, ARE YOU
LOOKING AT GRANITE COUNTERTOPS
THAT CAN ADD A LOT TO THE BUILD
AND MAKE SURE YOU HAVE ENOUGH IN
YOUR BUDGET TO COVER IT.
YOU'LL ALSO WANT TO MAKE SURE
THAT ANY BUILDERS THAT YOU'RE
DEALING WITH ARE ENROLLED UNTIL
A NEW HOME WARRANTY PROGRAM.
THAT'S EXTREMELY POSH.
ANY OF THE --
IMPORTANT.
ANY OF THE LEARNED OUT THERE
WILL BE LOOKING FOR A SURRENDER
WELL ESTABLISHED AND COVERED BY
ONE OF THOSE PROGRAMS.
>> Sherri: IT SOUNDS LIKE THE
COST CAN ADD UP QUICKLY.
WHAT DO YOU RECOMMEND TO PEOPLE?
SHOULD SHE MAKE THEIR DECISIONS
RIGHT OFF THE BAT OR ARE THERE
THINGS THEY CAN DECIDE ON AS THE
PROCESS GOES?
>> I WOULD SUGGEST TO COVER OFF
AS MUCH AS YOU CAN RIGHT OFF THE
BAT AND JUST ALLOW FOR
ADDITIONAL EXPENSES ALONG THE
WAY.
WHAT WE TRY AND DO IS START WITH
A REALISTIC BUDGET AND THEN WE
USUALLY TRY AND APPROVE SOMEBODY
WITH A LITTLE BIT OF A MARGIN
FOR ANY ADDITIONAL UPGRADES
ALONG THE WAY.
SO WE'RE MAKING SURE THERE'S A
BIT OF A CUSHION THERE IN THE
APPROVAL SO THAT IF YOU DECIDE
TO UPGRADE CERTAIN THINGS ALONG
THE WAY AND THERE ARE CHANGES
THAT IT'S NOT GOING TO AFFECT AN
APPROVAL DOWN THE LINE BUT IT'S
BEST TO HAVE A GENERAL IDEA
UP-FRONT OF WHAT YOUR EXPENSES
SO THERE ARE NO MAJOR SURPRISES.
>> Sherri: STICK TO THE
BUDGET.
>> YEAH.
>> Sherri: WHAT DO YOU SEE IN
TERMS OF FINANCING NEW COM
PARED
TO EXISTING HOMES?
>> I'VE SEEN A DECLINE IN THE
SELF-BUILDINGS -- SELF-BUILDS
THAT WE'RE LOOKING AT.
I'M SEEING A TREND TOWARDS
DEALING WITH THE CONTRACTOR.
THAT'S EXCELLENT.
HAVING SEEN BOTH SIDES OF THE
EQUATION, IT TAKES A LOT OF TIME
AND A LOT OF EXPERIENCE IN ORDER
TO DO A SELF-BUILD.
I'VE SEEN A LOT MORE PEOPLE
DEALING WITH CONTRACTORS THAN I
HAVE IN THE PAST AND I'VE SEEN A
LOT MORE PEOPLE PURCHASING HOMES
THAT ARE COMPLETE RATHER THAN
GOING THE ROUTE OF THE BUILD.
JUST BECAUSE THE
PROCESS SEEMS
TO BE A BIT EASIER.
SOMETIMES YOU CAN GET BETTER
RATES BUT THE NICE THINGS ABOUT
DOING A BUILD WITH A CONTRACTOR
IS THAT YOU GET SOME SAY IN WHAT
IT LOOKS LIKE ALONG THE WAY.
YOU CAN CHOOSE COLOURS AND MAKE
MODIFICATIONS TO THE PLAN AND
PERSONALIZE THINGS MORE.
>> Sherri: MAKE IT YOUR OWN.
THANK YOU FOR BEING HERE THIS
MORNING AND HELPING US TO
CLARIFY MORTGAGES AND FINANCING.
FOR ANYBODY WHO WOULD LIKE TO
SUBMIT A QUESTION SEND AN E-MAIL
TO
tmgon23rd.com.