Pros and Cons of Prefabricated Homes
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The cost of building a home has steadily increased over the last few years.
In most modern industries automation has played a big part in reducing the total number of working hours with the intent of keeping a lid on prices, but the housing industry is intrinsically labour-intensive, and on a building site the use of automation has to this point been limited.
To maintain some level of affordability the building industry has begun exploring new ways of constructing homes that are more efficient and ultimately more cost-effective.
Although not an entirely new concept, the off-site prefabrication of homes is one of the more promising developments.
Prefabricating homes in a factory-type environment has the potential to improve construction time and quality control, reduce the impact of environmental factors and control costs.
Choosing to prefabricate your new home will have a number of advantages and disadvantages and it's worth considering them before making a decision. I've outlined the main ones here&#;
What Is a Prefab Home?
In simplest terms, a prefab home is a house that was built in sections inside of a special home-building facility. The sections then get moved to a home site, where they're assembled and prepared for the homeowner to move in.
As you might expect, this type of home is extremely easy to make and move in comparison to a traditional home.
Prefab homes are built in a unique way but, like traditional homes, they must meet basic requirements put in place by the relevant Government Departments. These requirements cover things like strength, durability, energy efficiency, and fire resistance.
Prefab homes come in three main iterations:
Manufactured homes:
A home in this category is built in sections and pieced together by professionals and heavy machinery at its final site.
Kit homes:
These homes are much simpler than manufactured homes, though they follow a similar build to the piecing style. In fact, most homebuyers can build a kit home themselves.
Modular homes:
These homes feature much more personalization, companies will often let you customize the floor plan of your purchase. However, unlike manufactured and kit homes, modular homes have an immovable foundation.
The Pros of Prefab Homes
Exceptional Energy Efficiency
One of the benefits of prefab homes is that they tend to be highly energy efficient.
Prefab homes can save you money during the years you live in these homes because their designs generally have energy efficiency in mind.
In many ways, prefab homes are better for the environment than traditional homes, too. These homes are airtight and designed to minimize energy loss as much as possible.
Their tight seams and state-of-the-art windows keep heat in and reduce your energy bills in the process.
Because a prefab house's individual parts adhere to strict design guidelines, the seams in these homes are usually airtight. This standardized air-tightness helps to avoid leaks and airflows that can increase the energy and economic cost of heating and cooling your home.
As more and more consumers begin to search for ecological and sustainable home features, prefab home architects and contractors are designing several home models that incorporate everything from solar panels to wind turbines to rainwater catchment systems.
As a bonus, modular homes' tight construction has earned them a reputation for being able to withstand natural disasters.
Prefabricated (aka modular) homes go into a foundation like any other home. They can be high-quality, modern and elegant houses perfect for those who want a lower carbon footprint than the typical suburban home has.
Fast Construction
Fast construction is one of the big advantages of prefab homes.
If you've ever built a house before (or know someone who has), you know that it's almost impossible to get the thing built on schedule.
Even if no major emergencies happen, things like the weather or slowed-down deliveries can drag out your building time and make it harder for you to move in when you want to.
Because the parts of a prefab home come pre-made, all you have to do is assemble them and hook up the home to the needed utilities. Hence the name &#;modular.&#;
The prefab goes up much faster because it arrives partially constructed.
The actual time needed to attach the parts on-site is considerably shorter than the time required to build a regular stick-built home. If you have a tight timeline and want to get into your new home on time, prefab homes are usually the quickest type of new home construction available to homeowners.
That means fewer days with labourers on site and less vulnerability to weather delays and illnesses that can extend the construction process by days and weeks.
Still, there's more to consider than just the construction time. Site preparation, including obtaining permits, can be a lengthy process.
Affordability
Many people are turning to the prefab home trend these days because it provides them with an opportunity to save money while still becoming homeowners.
In general, prefab homes are much more affordable than traditional houses.
Building a prefab home is generally less expensive than building a comparable stick-built home. They use fewer materials, and the process of determining how much is needed is much more precise, so you don't have to worry about paying for materials that don't end up getting used.
Part of the savings has to do with labour. And on-site construction generally wastes much more materials that go into the building of the house.
It takes fewer labourers working over the course of fewer days to make a prefab move-in ready.
That saves you money. Plus, as we've mentioned, heating and cooling tend to be more affordable with prefab homes than with stick-built homes.
Compare the costs of what's available on the market with the cost of building a prefab. And remember that various levels of fittings and customization can raise or lower the cost of your prefab.
Healthier
Prefab homes have the potential to be healthier than traditional homes.
When you're building a house on a building site, it's going to be exposed to the elements, including a lot of moisture.
This, in turn, can contribute to mould growth. Mould exposure can cause serious health issues in some people and can even be life-threatening in some instances.
Prefab homes don't totally eliminate the risk of mould exposure, but they do reduce it in a significant way.
Better Sustainability
If sustainability and being environmentally friendly are important to you, consider a prefab home instead.
A prefab builder knows exactly how much material to use and, what's more, extra materials can simply be used on another project.
The home is shipped once, saving on gas and reducing emissions.
Some prefab manufacturers also create homes that are more energy efficient, using solar panels and more efficient windows. This helps you save on utilities in the long run, which could seriously increase your enjoyment of the home.
Some prefab homes use space-efficient designs which take advantage of the space available in a given area. This makes them ideal for little residences that have to be erected in close proximity to each other.
Quick Build
Have a tight build schedule? Prefab homes can definitely help with that.
Prefab builders know how to quickly place all the parts and pieces for a tight schedule, which means you'll get to move in much faster.
The home is brought to your lot and the shell will be complete in as little as one day. Some prefab homes can be delivered with many of the main components installed (think cabinets and flooring).
When compared to the 6- to 12-month timelines of traditional builds, you could be enjoying your home way faster if you choose prefab.
Easy Customization
Prefab homes have the advantage of customizable designs to meet different home buyers' unique needs and preferences.
Other types of modules can be combined to create a customized home that suits the needs and tastes of each buyer.
Low Maintenance
Prefab homes are built to take the kind of wear and tear that a typical house takes, but they are designed to be easier to maintain and repair.
This means they will be more durable than distinctive homes in the long term.
The Cons of Prefab Homes
Land Costs
One of the nice things about buying an existing home is that you're purchasing the land it sits on as well, in addition to the surrounding yard. All of this is incorporated into the negotiated price for purchase
If you want to put up a prefab home you'll need to own the land underneath it.
If you don't already own land you'll need to buy it.
You'll also need to make sure that you're allowed to put up a prefab home on that land, and that you'll be able to hook it up to electricity, water and sewer.
Don't forget soil testing on the land you're planning to call home.
Securing the land, inspections and permits can add up in terms of cost, time and trouble. Some companies that sell prefab homes will help you with this process, securing permits on your behalf and rolling their expenses into the cost of your modular home.
More Up-Front Payment
If you buy an existing home you can make a down payment of around 20% and pay off the rest of your mortgage over time.
While financing and construction loans are available for many prefab homes, you'll need to pay for the home's construction before you move in.
Your contract will include a schedule for paying in instalments while your home is being built.
This pay-as-you-go feature of prefab homes means you need to be extra sure you can afford the prefab before you commit to buying it and putting it up.
Utilities Hook-Up
One of the disadvantages of prefabricated houses is that it can be tough to arrange utilities and other site details.
If your site is uneven you'll need to have it levelled. Then you'll need to lay the foundation and arrange for sewer strikes and electrical connection, not to mention connecting to city water or finding well water.
If this all sounds a little too daunting, look for a prefab home that comes with the option to have the prefab home company take care of these details for you.
Transportation and Assembly Factors
Depending on where you live, the cost of transporting the different parts of your future home can become expensive.
If you live "off the beaten path," transportation companies might very well charge you a hefty fee to get all the parts of your home to the construction site.
It is important to note that if you haven't hired a contractor with experience assembling the specific model of prefab home you've chosen, you always run the risk of faulty assembly.
This could lead to joint failure, leaks, and other issues. If your contractor doesn't have the correct equipment on hand, the different modules or panels of the prefab home run the risk of being damaged during the delivery and assembly process.
Durability or Longevity
Durability and longevity are a significant focus for prefabricated homes &#; partly because they have to be delivered to the building site without being damaged in transit.
This means materials and construction must be robust so as to ensure the home is not damaged in any way while transporting.
Typically prefab modular homes are also built in a controlled construction facility &#; meaning strict quality control is often easier to ensure than when built on-site.
Prefab modular homes can also be constructed to withstand extreme climate conditions, including desert, alpine and cyclone-prone locations.
More Logistics
Prefab homes can mean more work for you, the homeowner.
Unlike traditional construction where the builder or contractor takes care of logistics, you might be in charge of more than you anticipated.
Finding a lot, checking zoning, organizing utility hookups and other details are the homeowner's responsibility.
The prefab builder simply manufactures the home and has it delivered and installed. If you're not comfortable overseeing the details, this could be difficult.
Lengthier Planning Process
While the construction and assembling of the prefab property may not take much time, however, the planning process is usually extensive.
Finding the land, selecting the contractor and preparing the site involves lots of time and energy.
Quality Issues
One of the widely known demerits of a prefab building is that it does not offer the same level of quality as a traditional home.
Risk of Damage
As prefab structures are transported from the factory site to the construction site, the risk of damage in transit is always high.
Depending on how far the modules have to travel could possibly add to the overall cost.
Inefficient Assembling
Precision assembling is also imperative.
Attention should be paid while fixing the modules together. Any assembling failure can lead to joint issues, leakages or void spaces.
In the case of large prefab structures, due heed should be given to the measurements and the positioning of the structure to avoid problems later.
Prefab homes are perfect for buyers who have a strong idea of what they want within a tight timeframe and within a given budget.
Despite assuring several benefits when compared to traditional homes, you need to take the onus of the development of such homes. Do extensive research and talk to the manufacturer to ensure that quality is duly complied with and there are no discrepancies.
Other Reading
https://designbuildexpo.com.au/building-construction/the-prefabrication-debate/
https://ecoliv.com.au/blog/prefab-vs-traditional-construction/
https://stunningtinyhomesandmodulars.com.au/blogs/pros-and-cons-of-prefab-homes/
Whether you&#;re 25 or 55, becoming a home owner is a wonderful feeling.
There&#;s nothing like having your own patch of earth to call your own. Which is why buying your first home is so exciting!
However, it&#;s also common for first home buyers to feel a little overwhelmed. After all, it&#;s likely to be one of the biggest purchases you&#;ll make in your life.
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If you want to learn more, please visit our website Australia expandable homes.
From budgeting and securing a loan, to finding the right land and house, there are lots of considerations and important decisions to make before your dream home becomes a reality.
If you&#;ve decided to buy your first modular home, it can be hard to know where to start &#; so we&#;ve put together this guide to take you step-by-step through the process. To keep it simple, we&#;ve broken down it into six key areas: budgeting, finance, buying land, design, construction and resale.
So, read on to discover our step-by-step guide to buying your first modular home!
Step 1. Setting A Budget for Buying Your First Modular Home
How much you can borrow vs. how much you should borrow
Understanding how much you can afford to borrow is a must before you start looking for your first property.
Lenders will assess your borrowing power by calculating how much you can comfortably afford to repay. They&#;ll look at your wages, savings, debts and living expenses and come up with a figure they&#;re confident you can manage.
However, it&#;s unwise to accept the amount your lender is offering without first doing your own budget calculations.
Be sure to include not only your current expenses, but the added costs you&#;ll encounter as a home owner such as rates, insurance home maintenance and repairs.
It&#;s also a good idea to allow for changes in your circumstances (such as starting a family or changing jobs) and interest rate rises that may occur in the years to come.
How much do first home buyers need to save for a deposit?
The deposit required for your new home depends on several factors. This can include the amount you wish to borrow, your income, employment history, debt, credit rating and the lender-assessed property value.
As a guide, the typical deposit required for a home loan is 20%, however it is possible to obtain finance to buy a home with less &#; even as little as 5% (please note: Anchor Homes is not a finance expert. Please talk to your bank for mortgage lender for accurate information).
With any home purchase, the bigger deposit you have the better. It shows you&#;re a good saver which can increase the chances of your loan being approved.
Your loan, repayments and interest payable may also be less, which gives you a better chance of paying off your home loan sooner.
Plus, when you have a smaller deposit, it can also mean you&#;ll need to pay extra on your loan for lenders mortgage insurance.
What are the hidden costs of buying a house?
When you build a new home, it&#;s important to understand there may be additional costs that you need to pay on top of the purchase price.
For example, if you&#;re building on a sloping site or have rocky soil it can add thousands to your build. Connection to services can also be costly in some locations.
Also, if your block is in an area at high risk of bushfire or covered by planning overlays you may need to spend extra on meeting special requirements.
It&#;s important to look at the list of inclusions carefully. Make sure all the essentials are covered, and the standard inclusions offered are of an acceptable quality.
Keep in mind that any modification to your design or upgrades on fittings and features will also incur additional costs.
Grants and incentives available to first home buyers
The First Home Owner Grant is a national scheme available to eligible first home buyers who buy or build a property to live in.
The criteria differs between states, but it is generally available to first home buyers who are over 18, permanent residents or citizens of Australia, who are purchasing their first home as an individual.
You must also live in the residence for at least six consecutive months and have not received the grant previously or have lived in a residential property that you owned from 1 July .
Depending on the location of your home, you may be entitled to additional benefits when you apply for the grant. These can include discounts on stamp duty or larger grants when your property is located in a regional area.
2. Securing A Loan to Buy Your First Modular Home
Is a pre-approved loan the same as an unconditional loan?
When it comes to finance, first home buyers often opt to get pre-approval (also called conditional or approval in principal) from their lender before starting their search for the perfect home.
A pre-approved loan is an indication of how much you may be able to borrow and is not a guarantee that you will be approved. The pre-approval is subject to certain conditions including the valuation of your chosen property.
Unconditional approval is granted when the lender is satisfied that all conditions of a pre-approved loan have been met. At this point they are ready to sign off on the loan and provide you with the funds for your property.
Can you get a pre-approved or unconditional loan for your modular home?
While modular construction offers plenty of certainty around budget and time frames for first home buyers, some lenders are unsure about how to best service a loan for a modular home.
This means it&#;s important to speak to your lender as soon as possible to explain the process as many do not fully understand how modular construction works.
Some lenders will be happy to offer a pre-approved or unconditional loan for a modular home, while others will refuse as it doesn&#;t fit their criteria for a construction loan.
Our project consultants or a suitably qualified mortgage broker can offer advice based on their experience about which lenders are best to approach.
What do lenders look for when providing pre-approval for modular homes?
When it comes to gaining pre-approval on your loan, choosing a registered builder with a strong track record in modular construction is a definite plus.
Having a deposit of 20% or more to contribute and a solid credit rating is also beneficial. In addition, if you have an alternative equity source it can make it easier to get things started.
Is it easy for first home buyers to get a loan to build a modular home?
Getting finance to build your modular home can be a challenge, as the off-site construction method places it outside the lending criteria of a typical construction loan.
However, hundreds of our clients have successfully borrowed funds to build their dream home through a variety of lenders so it is definitely achievable!
To save yourself time and hassle, be sure to approach your lender well-prepared. If they are unsure how modular construction works, explain things in detail, emphasising that while construction occurs off-site, the end result is a home on permanent foundations just like a site-built house.
Talking to your modular builder can also be a great help. They can offer tips for securing finance and can also provide contact details for mortgage brokers that have previous experience obtaining modular home loans.
3. Finding the Right Land for Your Modular Home
How to choose the right town or suburb for your first home
Finding the right location for your new home is a must, as it impacts everything from your lifestyle to your resale value. Look for towns and suburbs that meet your immediate needs such as being close to school, work and family.
Your chosen location should also be somewhere you feel safe and happy, so spend some time visiting the local shops, cafes and attractions to be sure it feels right.
Importantly, it also needs to fit your budget, so speak to local real estate agents to find out the price range for land. If it&#;s outside of your budget, enquire about neighbouring suburbs that are more affordable.
Always check your land is suitable before purchase
Before you commit to buying any block, make sure you&#;re clear on any additional expenses you&#;ll need to pay on top of your purchase price.
Buying a bad block can blow your budget fast, so be cautious of any land that is super cheap &#; there&#;s usually a good reason!
When you find a block that you like, contact your builder as they can offer expert advice based on their experience.
They can highlight any potential issues and give you confidence that your chosen block will be suitable to build your first home without any costly surprises.
Is it possible to build your modular home on a sloping block?
Modular homes can be built on sloping blocks, however like conventional builds, it can present some challenges and additional costs.
Planning overlays may apply requiring special measures to prevent erosion, access can be difficult and excavation and retaining walls are often required. You&#;ll also need balustrading on your decking if it is more than 1 metre above ground level.
On the positive side, a sloping block can provide spectacular views. Plus, you&#;ll often save money on the purchase price of the land.
If you&#;re considering building on a sloping block, our project consultants can assess your site and explain any additional costs prior to construction to be sure it offers value and is a good fit for your modular home.
4.The Modular Home Buying and Design Process Explained
How do you find the right modular home builder?
Finding the right modular builder can make or break your project, so be sure to do your research. Look for a builder who has a proven track record building quality modular homes, with testimonials from happy clients to back it up.
They should also have an extensive list of inclusions and be open to upgrades and customising your design to suit your exact needs.
Make a shortlist of at least three builders, then meet with them face-to-face to find out more about their homes, process and prices.
Assess their communication methods and willingness to listen to your ideas and involve you in the process.
Go with your instincts when making your final decision, and make sure you&#;re 100% happy.
Working with a builder you trust and feel comfortable talking to gives you the best chance of a successful and stress-free project.
Choosing a modular design and façade that suits you
There&#;s no shortage of options when it comes to modular home designs, which can make it hard to decide.
When choosing your floorplan, start by working out the right size home for your family and lifestyle.
From there, be guided by your budget, preferred layout style and unique living requirements.
Your facade is the face of your home, so choosing one that matches your personal style, house design and surrounds is the key to getting it right.
Each modular home design comes with a facade as standard, but if you prefer a different option, you can always customise your facade to suit.
To help you, we have created a list of 4 modular homes perfect for first home buyers.
Is it possible to customise the floorplan to suit your needs?
Modular designs can be flipped, altered and customised to suit your exact requirements.
From small changes to layouts, to custom designs from scratch, our designers will work with you to make the necessary changes so your home is the perfect fit for you and your family.
Keep in mind that customised designs will generally incur extra costs and will often take a little longer to design and build. However, when the result is a first home that&#;s made just for you, it&#;s worth it.
What are the standard inclusions on a modular home?
The standard inclusions vary from builder to builder, so compare them closely to ensure you&#;re getting good value.
Find out about your choices from within the standard range and the quality of appliances, cabinetry, tapware, fixtures and flooring.
You should also ask about your options when it comes to upgrades, as a few well-chosen special features can really elevate your home to something special.
From preliminaries like permits and warranties, to the finishing touches like painting and floor coverings, make sure the inclusions cover everything you need.
That way, when it&#;s time to handover the keys to your new home it&#;s complete and ready for you to move in and enjoy.
5.The Modular Home Build and Delivery Process Explained
What happens during the design phase?
Before construction commences on your first home, there are some important things to take care of. During your first appointment we&#;ll help you find the perfect design, discussing customisations if required.
We&#;ll then provide you with a cost estimate and once you&#;re 100% happy, we&#;ll move to the pre-contract stage.
At this point a deposit is paid that covers the necessary preliminaries including your working drawings, site survey, soil report, energy rating and BAL rating.
Once the results of the preliminaries are obtained, we&#;ll provide fixed costings for your approval.
Next, the planning application is submitted (if required) and throughout the process we&#;ll keep in contact with your council to ensure your application is processed as quickly as possible. When your planning permit is received, you&#;ll finalise your colours and finishes with our colour consultant. From there, the building permit is obtained and construction can begin.
What happens during the build and delivery process?
Once your design is finalised and you&#;ve obtained all the required permits and approvals, construction on your new modular home will commence.
Modular homes are built off-site in a factory environment, before being delivered by truck to your site for installation.
Homes are built to around 95% before delivery, and this includes everything from the steel floor structure to cabinetry and painting.
During the final weeks of construction, our site team will be on site preparing the footings and connections on your block. When your new home arrives on site, our team will install it and add the finishing touches.
We&#;ll then make a final inspection together to ensure everything is just right, before handing you the keys for your new modular home.
How long will it take to build your new modular home?
The off-site construction minimises delays and makes it possible to overlap with the on-site works.
This means modular homes can be built faster than conventionally built houses.
Once the building starts, construction at the facility generally takes around eight weeks depending on the design.
After delivery, an additional 4-6 weeks are then spent on-site to install your home and bring it all together. This means the total construction time for modular homes can be as little as 12-14 weeks.
Of course, the time it takes varies from project to project, with smaller homes sometimes built faster, and larger custom designs taking longer.
But the good news is, that you won&#;t be waiting many months or even the better part of a year to move in and enjoy your new home!
6.Understanding the Resale Value of Your Modular Home
Is the resale value of a modular home less than a conventional home?
Although modular homes are built off-site, they are placed on a permanent foundation just like a site-built home. This means the resale value is no different to a traditionally built home.
The resale value of your home will depend on a range of factors including your location, house size, design features, presentation and land.
Are modular homes suitable for rental properties?
Modular homes make an ideal investment property, as they offer great flexibility with design, low-maintenance features and faster build times.
They are commonly used as holiday rentals in coastal and rural locations (like this stunning Airbnb property in Rye) and can also be used as a rental properties in urban areas with longer-term tenants.
Modular Homes Are A Great Choice for First Home Buyers
Buying your first home is a huge moment in your life &#; which means it can also be overwhelming! Choosing a modular design for your first home can help to make the process faster, easier and more affordable.
When you build a modular home there is a huge selection of floorplans to choose from, and all are easily adapted and customised to suit your needs.
The range includes options to suit all budgets, including those who are entering the market for the first time.
The design and construction process are both smooth and hassle-free, with less chance of outside influences such as the weather and neighbours causing delays.
And best of all, the build time is fast, which means you&#;ll be in your new home much sooner than if you were to build on site.
Have a question about building your first home or curious to know more about modular construction? Our project consultants are always happy to hear from you! You can get in touch by on 03 or by visiting us on Facebook.
Contact us to discuss your requirements of 20ft expandable container house. Our experienced sales team can help you identify the options that best suit your needs.
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