How Payments Work When Building vs. Buying a House

overview.

Paying for a build works nothing like paying for an existing home. Dad explains construction loans: how payments are released in stages, what interest you pay during the build, and how the cost really compares to buying established.

On with me is Dad, John Kefalianos, finance broker and property developer. He explains construction loans and how paying for a build really works.

"With a build you pay as the house rises, not all at once. Understand the stages and the interest stops being a surprise."

John Kefalianos

what you'll learn.

• The stages of a build and how a construction loan pays them
• What interest you actually pay while the house goes up
• How building compares cost-wise to buying established
• The paths in: house-and-land, off the plan, or land then build

Prefer to read? Grab the free first home buyer guides.

part of: building and new homes guide.

chapters.

Tap a chapter to jump the video to that point.

1. 00:00 Introduction
2. 01:32 Stages of a Building Process
3. 02:28 How Construction Loan Payments Work
4. 03:41 Interest Costs During Construction
5. 04:17 Comparing Costs: Building vs. Buying Established
6. 06:02 Options for Getting into a New Property
7. 07:05 Buying Off the Plan
8. 07:26 Buying Land in an Established Neighborhood
9. 08:25 Buying Land in a New Land Division
10. 09:38 House and Land Packages
11. 10:50 What If My Build Gets Delayed?
12. 12:07 Conclusion

links Nicola & John mentioned.