Buying a block of land and building your dream home can sometimes seem like a daunting process, but it doesn’t have to be!
At Springwood, our team will guide you through the entire buying process — from choosing the perfect block, meeting potential builders, and financing your new home, to becoming a resident of our friendly community.
To get started, take a read through our step-by-step guide for buying land and building your new home in Springwood.
Step 1: Seek financial advice
Before making the final decision to buy, speak with your bank, mortgage broker, or financial advisor to understand your options. They’ll be able to let you know how much you can afford to borrow while being able to live comfortably with the repayments.
Step 2: Secure your block or house and land package
When it comes to choosing your block of land at Springwood, the best place to start is by contacting Springwood’s friendly Sales Team, to arrange a tour of Springwood and learn more about our community and the range of blocks on offer.
When you’ve found a block you like, our Team will put this block of land on hold for you.
Although this process differs slightly depending on what you’re buying, generally, once you’ve found your dream block of land and it’s been placed on hold, you will purchase the land directly from Springwood.
This involves signing a contract of sale and providing a deposit.
It may be a little while before your block is ready for you to start building, which is why seeking good financial and legal advice before you purchase is essential.
A contract of sale is a legal document that outlines the terms and conditions of the sale, including the price and settlement date. It will become legally binding once you and the vendor (in this case, Springwood), have both signed it.
It’s important that you understand the contract and are comfortable with your obligations. Before you sign, our Team will take the time to explain all aspects of the contract to you.
You will need to pay a deposit once the contract of sale has been signed. Usually, this is five percent of the purchase price. It is your responsibility to organise for the transfer of the funds to Springwood’s agent, who will hold it in trust until settlement.
Keep in mind that there are other fees involved in buying a property too, including government stamp duty, property searches, legal fees, mortgage insurance, and finance loan fees. Our Team can also help you understand which extra costs you need to pay.
As part of the buying process, you will probably want to speak to different builders about the type of home you want to build and to ensure the block you’re choosing works for your perfect house.
Generally, builders will also ask for a commitment from you too, in the form of a deposit, when you’ve chosen a house.
What happens if I want to pull out of the sale?
Once you have exchanged contracts and paid a deposit on a property, you can walk away from the contract if you provide written notice during the cooling-off period.
In South Australia, the cooling-off period is two business days beginning from either the date the contract of sale was signed by both you and Springwood, or from the date you received confirmation that the contract has been executed by Springwood.
The consequences of pulling out of the sale during the cooling-off period will depend on if your contract is conditional (subject to finance) or unconditional.
If you have a conditional contract, which is subject to finance, your deposit will be fully refundable if you provide a finance decline letter from your lender. If you do not provide a finance decline letter from your lender, any holding deposit you paid will be forfeited to Springwood.
If you have an unconditional contract, your deposit will not be refundable.
Step 3: Proceeding with the purchase
Once all conditions of your contract are met, and the cooling-off period ends, your contract becomes ‘unconditional’.
This means you’re able to proceed with the purchase. Your solicitor or conveyancer now needs to inform our solicitor of this on your behalf.
At this point, it also means you will no longer be able to back out of the contract without potential loss of deposit and/or other costs. Your contract of sale will outline what you will be required to pay Springwood as compensation for pulling out of an unconditional contract.
If your finance has been rejected and you have already paid a deposit and signed an unconditional contract on a block of land at Springwood, we recommend you seek legal advice.
Step 4: Design support
Springwood offers a complimentary design support service, independent from your builder, to help you develop ideas for your new home!
It’s best to reach out to us early in the design process to maximise the free design assistance we can provide.
Step 5: Design and siting requirements
When you move to Springwood, you’ll be living in a neighbourhood carefully designed to fit the character of its stunning natural surrounds.
Design and siting requirements ensure that your home and landscape complement and contribute to the character of the community, and protect your investment. The Springwood team will take you through the building guidelines step-by-step and help you understand the design requirements for your dream home.
Spec homes and house and land packages can be pre-approved, but generally, your builder will need to submit your plans to our Design Support Team for approval.
Step 6: Keeping you in the loop
The time between when you sign your contract and settlement can vary. We’ll send you regular project updates via email to let you know how things are progressing.
During this time, we’ll also send you updates about Springwood and invite you to events to help you get excited about your new home and community!
Step 7: Settlement
Things are really happening now! Make sure you put your settlement date in your diary.
On the settlement day, you need to pay the remaining balance of your purchase. To avoid any disappointing delays, make sure that funds are available from your financial institution before your settlement date.
Once all the relevant mortgage documents are signed, the land title will be transferred into your name.
Step 8: Construction
Now that your block of land is registered and your plans are approved by our Design Support Team, your builder will then submit the plans for building works and planning approval. Once approved, the builder can start construction.
Most builders require progress payments, usually at five stages: slab down, frame up, roof on, lock-up, and practical completion. Your financial institution can arrange these payments for you.
Safety is very important during the construction process. Your builder must comply with workplace health and safety regulations, and they’ll let you know when it is safe to go on-site. It’s important that you don’t take a sneak peek during construction without your builder present!
Your builder should keep in regular contact with you during the build, but you can always contact us if you have questions.
Step 9: Welcome to Springwood!
The day has arrived! Your home is now ready, and it’s time to move in and join the Springwood community.
To discuss any aspect of the buying process at Springwood in person, stop by our Discovery Centre, or give our team a call on 1800 224 551.
Explore the range of blocks and house and land packages available — including in our new Village at Springwood release — here.