This time, we've divided it into 4 days, and it's a summary page of how to buy land and build a custom house. We have listed the flow up to move-in, so please check the contents of each chapter and check them in order.

When you actually search for land and then a construction company, there are many unclear points. If you have any questions, please feel free to contact us. Let's build a dream home together.

It will be the explanation from STEP 10 to STEP 12 "Delivery of the building" on the 4th day today.

STEP10 "About Mortgages"
Here, we will explain the mortgage loan when you purchase land and build a building with a custom house. If you decide on the land and building plan, you can know the specific amount of money you need to borrow. But the first thing to note is when you buy a house that is already completed or when you purchase the land and then build the house, by each cases, the cash flow is different. 
As we mentioned a bit in "STEP6: Land Purchase/Contract", mortgages are generally issued at the time of building delivery, so in the case of custom-built homes, land payment comes first. In some cases, it may not be possible to make a loan for the land and building together, and the construction cost of the building is usually paid in several installments between contract and delivery. Therefore, there are cases where money cannot be prepared at the timing of payment.

In such a case, it is necessary to consider a "bridging loan" that borrows money on a bridge until the mortgage is executed. However, since "bridging loan" are not handled by any financial institution, the point to be considered is whether or not a "bridging loan" can be used when selecting a mortgage. In addition, please note that the "bridging loan" also incurs various expenses and interest when borrowing, and that interest is generally higher than that of a mortgage loan.
And, it is possible for a financial institution to transfer the loaned money directly to a real estate company or a construction company, but before you apply, be sure to confirm with the financial institution that "the money can be transferred by the due date." Depending on the construction company, it may adjust the payment schedule, so please consult in advance. Now let's talk about interest rate types for mortgages. There are two main types: "fixed interest rate housing loan" and "variable interest rate housing loan".

Fixed Interest Rate Housing Loan
A type of loan, where the interest rate of the loan does not change from the time of borrowing to the end of repayment, represented by Flat 35. Interest rates do not change, so if you borrow at a low interest rate, you will not be affected even if interest rates rise in the future.  Also, because the repayment amount is fixed, there is an advantage that it is easy to make a lifelong financial plan. However, even if interest rates decline in the future, you will not receive the benefits of low interest rates. In addition, there are types that have fixed interest rates for a certain period, and are generally called "fixed interest rate selection type" or "fixed period selection type".

Variable Interest Rate Housing Loan
A type in which the interest rate of a loan changes depending on the financial situation. The interest rate is reviewed every six months, but the repayment amount is generally the same for five years, and even if the interest rate rises, the new repayment amount will increase up to 1.25 times the previous interest rate. When the interest rate is low or falling, there is a merit that the interest rate is low, but when the interest rate rises sharply, it will be affected. As we mentioned in the previous “STEP2 Financial Plan”, it is important to think that you can repay easily according to your life plan, but you often have a hard time deciding which one to choose.  Many construction companies are familiar with mortgages, so it's a good idea to consult with them first.
And the key is to make sure in advance that you can prepare properly when you should pay the money.

STEP11 “Construction (Starting → Upper building → Completion)”
Since the construction contract has been completed and the construction confirmation certificate has been issued, the construction work has started, but it is not only waiting for completion.
There are many things to do, such as ceremony of sanctifying ground, framework completion ceremony, and greetings to neighboring residents.
It is also recommended to actively visit the construction site. You can see how your house is being built until it is completed, and your attachment to your home will increase. Also, as a result of being in close contact with the craftsmen at the site, some people said, “I had them create a shelf for my work,” and “I also responded to sudden changes in plans.” By seeing the faces of the ordering side and the construction side, you will be able to create a more satisfying home.

STEP12 "Delivery, Moving In, and After"
Before the delivery after the construction is completed, we will check the building with the person in charge of the construction company, the construction manager, etc., for make sure that the floor and walls are clean and free of damage, and that the fittings move smoothly. If there is a defect, make it clear when to fix it, make sure to confirm in writing to avoid "said or not said".
Apart from that, there is also a "completion inspection" by the specified administrative agency or a third party based on the Building Standards Acts, and if you pass this safely, almost all procedures are completed. After repairs such as defects are completed, it will be finally handed over. After receiving your house key and warranty card, your dream home will begin. However, some problems may occur while living. Don't forget to check after-sales maintenance, such as "when is the periodic inspection" and "how long is the free compensation period?"
In some cases, there may be a request for an "open house" in which the construction company will post the completed property to the general public after construction.
While opening as an open house has advantages such as discounts and services, it may also have disadvantages in terms of damage and dirt when visiting a third party, and crime prevention. It's a good idea to have a discussion in advance to avoid trouble later.
This time, we explained the flow to orthodox move-in, but by knowing such procedures and setup in advance, we think that you could understand where you want to spend time, how to efficiently waste and what you need to be careful about. If you are thinking of building a house in the future, please refer to it.

Today, the third day, starts with the explanation of ​STEP 7: Building Planning and Design, which continued from yesterday.

STEP 7: "Building Planning and Design"
Here, concretely decide the image of the house you want to build. First of all, it is important for the family to discuss what kind of life they want to live in. For example, write down your wishes, such as "I want to put in a lot of sunlight," "There is a stairwell," "Warm in winter, cool in summer," "The kitchen is large," "The child room will be divided into two rooms in the future" . Then, prioritize each of them and consult with the construction company to have them design and plan the building. Also, when deciding on an image or considering a plan, clarifying the following points will facilitate planning with a construction company.
​
Points when considering a floor plan
- Family structure and age structure
- Living and dining area
- Do you need a Japanese-style room, guest room, study room, etc.
- How do you use the children's room? (Bedroom? Study? Both?)
- Besides, request for floor plan of house
- How many cars and bicycles will you park on the premises?
- ​What about the outdoor areas such as the garden and balcony?

Points when considering facilities and buildings
- Would you like to make a house that uses a lot of natural materials such as solid wood and diatomaceous earth?
- Equipment grade such as bath, kitchen and washbasin
- What kind of furniture do you want to have? Is it ready-made or made-to-order such as fabrication?
- What are the specifications and shape of the outer wall?
- Structure (Is there anything particular about seismic isolation and seismic control?)
- ​Heat insulation performance (outer heat insulation, etc.)

STEP8 "Construction Contract"
When the building plan is finalized, it is finally time for the contract agreement. At the time of contracting, four documents will be handed to you: "Construction Contract Document", "Construction Contract Conclusion Form", "Quotation" and "Design document". All of these are voluminous and it is almost impossible to check them all on the contract day. We recommend that you obtain a copy in advance and contact us in advance if you have any questions or questions.

STEP9 "Construction Confirmation Application"​
It is finally the start of construction, but before that, a building plan confirmation review will be conducted. As for the building plan you thought of, whether it complies with the Building Standards Act, etc., the building owner (usually a contracting construction company) applies for a building confirmation to the designated confirmation inspection agency of the government or the private sector, will undergo a confirmation examination.
You cannot start construction work unless you receive a building confirmation certificate.
It also serves to prevent the construction of buildings that are not in compliance with the law.

Tomorrow, we will explain about mortgage contracts, construction, and building delivery.

Today's continuation of yesterday, we will start from the explanation of ​STEP 4 “Look for a Construction Company and Decide”.

STEP4 "Look for a Construction Company and Decide"
Once you have decided on the image of the area or building you want to live in and the approximate budget, the next step is to search for a construction company.
Construction companies include house makers, contractors, and design offices (architects), but the features of each are as follows.

-Home builder (esp. large nationwide company): A sense of security and stable quality that only major companies can offer.
-Construction company: Community-based and easy to respond to detailed requests
-Design office (architect): Unique design based on the wishes of the owner
 
Based on these characteristics, while looking at the residential exhibition hall and the actual construction property, let's thoroughly consider  who will build the house you imagine. If possible, find a construction company and convey the concrete image of "I want to build a house like this" at the same time as searching for the land, so that the house building will proceed smoothly. Because even if you can find the desired land, if there are restrictions under the Building Standards Acts or if the area is designated as an administratively restricted area, even if you can build a building,  you don't know if imagined house will be built or not. By consulting with a construction company in advance and having them look at the land together, it may be possible to select a land with a construction perspective.
Even if you have not decided to build a house with this construction company, you will often be offered consultations such as this. One way is to narrow down the number of construction companies that are attractive to you, look at the land you are interested in, and then make a plan or rough estimate to make a comparative study.
​Other than that, the real estate company may undertake the construction as it is, or the construction company may directly deal with the real estate. In that case, it is not necessary to consider the budget separately for land and building, and there are advantages such as being able to unify them, so you feel it may be a powerful option depending on the plan.

STEP5 "Site Survey and Ground Survey of the Site"
Once the desired land is found and the construction company is decided, we will conduct a site survey and a ground survey to see if a house that is imaged on that land will be built. If you ask a construction company for both, they will investigate for you or arrange an investigation company.
The site survey is to investigate "what kind of house will be built on the land", and the condition of the land, direction, size, shape, height difference, position of the road, grasp of surrounding buildings and trees, It is for understanding electricity, gas, water and sewage, and various legal restrictions. A ground survey is an investigation of whether or not the ground has the properties required for construction, and depending on the results, additional construction such as ground improvement may occur.

Also, regarding the ground, you may be able to judge to some extent yourself at the stage of land search.
・In low land with rivers and ponds in the vicinity, the ground is often soft
・If there are many cracks in the foundation of the surrounding building, the ground may be soft.

The above can be considered, so we think it is a good idea to keep in mind for reference.

STEP6 "Land Purchase/Contract"
Before you sign a contract, a real estate company will explain to you the "important points" of the land you want to purchase. The Building Lots and Buildings Transaction Business Act stipulates that a real estate company must explain important matters related to the purchased property to prospective buyers before concluding a sales contract. For the explanation of important matters, the real estate broker must verbally explain the written document. Please make sure that there are no explanations different from the information you checked, or if you have any other concerns.
And if there is no problem, the contract is finally concluded. Generally, you pay the deposit at the time of contract. The deposit is about 10% of the land price, but it may vary depending on the contract. In addition, if you cancel after contracting due to the buyer's convenience, the deposit will not be returned in most cases, so be careful. In addition to the deposit, various costs such as "brokerage fee" and "contract stamp fee" may be required at the time of contract.
When purchasing land to build a custom-built house, the rest of the payments other than the deposit may be paid in advance just before the delivery of the land (balance payment). 
There are a variety of payment patterns, such as paying with your own funds, or you can not get a mortgage because the building is not completed, use the "bridging loan" to bridge the gap, or if you can make a loan with the land and the building together. 
Also, at the time of settlement of the remaining balance, you will be required to pay "registration fees" and "the remaining broker's commission paid at the time of contract" separately, so be sure to confirm this in advance.

Tomorrow we will discuss STEP 7: Building Planning and Design.

I want to buy land and build a house that I like. Have you ever thought about that? Buying a detached house is one option, but if you can build a house with the desired floor plan and specifications, why not get excited?
I want to build a custom-built house, but I don't know what to do when and what to do. Today, we will clear up such questions and explain the general process for moving in and the setup. If you are considering this, please use it as a guide.

STEP1 "Create an Image of Living"
Let's start by envisioning the lifestyle of the family, "where and what kind of life do you want to live in?" The image of the building and "whether the base of life should be in the city center or the suburbs where a large land can be desired, giving priority to raising children". Let's create an image referring to the following method.

Think from the conditions that are assumed in advance
- Non-negotiable conditions (such as housing performance) and price
- Image of building (design house, imported house, etc.)
- Area you want to live in

Focus on surrounding environment and location conditions
​- Time to the nearest station
- Commuting to school time
- Education facility time and reputation
- Level of medical welfare
- Sufficiency of commercial facilities such as supermarkets
- Market price in that area (comparison with a detached house, price of land, etc.)
- ​Convenience such as transportation

STEP2 "Let's make a Financial Plan"
And the important thing is financial planning. First of all, firmly grasp the current amount of savings, consider how much self-fund can be prepared, and how much money can be repaid each month without difficulty, and make a comprehensive budget such as "land cost + building cost". You can also check the land price in the area you want to live in advance to find out how much you will spend on the land and how much you will spend on the building.
It is important to note here that in addition to the construction cost for the building fee, incidental construction costs for electricity, gas, exterior construction, etc., survey costs, application fees to inspection institutions, moving fees to new houses, various expenses other than construction, such as new furniture costs. Approximately 70 to 80% of the total budget for the building fee is the actual construction cost.
In addition, such expenses are usually paid before delivery, so it is necessary to prepare money in advance. If you use a loan, be careful about that point.

STEP3 "Let's find a Concrete Land"
Once the image of the area or building you want to live in and the approximate budget have been decided, you will begin to search for a specific land. It is common to consult with a real estate company in the area where you want to live and let them know what you have in mind about your budget, size, and specific area, and ask them to find it. However, since there is no land with the same conditions, it is actually difficult to get around to a land that is close to ideal. Even if the condition of the land is a little bad, it is necessary to broaden the range of options such as "land with an old house" and search for a land that is close to your wishes. Here are some points and precautions that you should be aware of when actually looking for land.

Points and notes for land search
- Set a deadline and look for it (otherwise it may never be set)
- Prioritize desired conditions and make compromises according to priority except for conditions that cannot be negotiated
- Make sure the imaged house is built on the land
- As for "with an old house" where an old building is built, it may be necessary to dismantle the building separately or it may not be possible to reconstruct it, so please check in advance.
- Please note that land with "Construction Condition" basically requires a construction contract with a building company designated by the land seller within a certain period of time.

Tomorrow, we will explain about "STEP 4 How to find a Construction Company".