Browse Forums Building A New House 1 Apr 28, 2012 5:40 pm Hi there, We have just joined up today and are very new to this so will have lots of questions too! My hubby and I have bought a block (with a pretty ordinary house that we will demolish). We plan to build but because we are so new to building we are trying to get our heads around everything. There is so much to think about our heads are spinning. We have looked at a few builders but am getting a bit confused. We spoke to our bank (but really need to see them again) and they say that we need to get a builders contract and quotes so that they can do a valuation on the final house (once it is built). The thing is we do not want to sign a buidling contract at this stage as it is too soon. I understand that you can get pre approval but this is not a guarantee. We are quite sure that we should be able to get finance to build but are also needing to sell our current residential property before we can take out the loan to incorporate the current mortgage on the block of land and the funds required to build the new property. Some builders like Dechellis homes have preliminary service agreements whereby you pay $2K to begin the process but this does not appear to be something that the banks accept? They want the full building contract. The issue I have is that we have not even got any council approval or anything as such and so why would be sign a buildingn contract so early in the peace? We do not want to be bound by it as yet. I might sound a bit naive but entering into a building contract is quite scary. Are you guys able to tell me your experiences with obtaining finance for construction loans and whether you have any advice for me? Would be so much appreciated. Also, the bank wants a building contract but what about things like demolition and paving and boundary fencing etc - that the builders do not include in the contract. Will the bank lend us money for these items even though they are not included in the builders contract? i.e. these items we need to get separate contractors to sort out...ahhh so many more questions but will ask these later. Thanks so much in advance Lynne Re: We are looking at building and have lots of questions! 2Apr 28, 2012 5:55 pm Do you have a rough idea in mind that you expect/want to pay. Most banks should be able to provide a preliminary approval to use as a guide I would think. Maybe you could try a mortgage broker who could plug everything in and see what options he/she comes up with? We used a broker for our build and quite liked him. Re: We are looking at building and have lots of questions! 3Apr 29, 2012 1:00 pm Thanks Greenfish for the reply. I think we will nee to have more in depth discussions with our lending person/broker and hopefully that should clear a few more things up. Re: We are looking at building and have lots of questions! 4Apr 29, 2012 1:12 pm Hi there, Yes, I agree with greenfish, speak to your finance guys and get an indicative amount they would lend you, or a pre-approval note of some sort, builders will not build anything for you until you prove that you can pay for it anyway. As for getting a contract, once you have a pre-approval, shop around for your dream home and get the contract written, every contract should only be valid 'subject to finance approval', so don't stress too much. Good luck and may your build be a smooth and enjoyable journey Re: We are looking at building and have lots of questions! 5Apr 29, 2012 1:19 pm Thanks Jimnsal. I like the sound of the 'subject to finance' bit. I am stressing less now. I thought as much but just wanted to check what other people's experiences have been like. I assume you have built before? Would you recommend it to others? My hubby and I are very excited but its a bit daunting at the same time. Re: We are looking at building and have lots of questions! 6Apr 29, 2012 1:32 pm Hi Lynne, Yes we moved in Nov2010, happier than ever. I can't believe I am saying this, but yes, we would do it all over again if we find another nice piece of real estate. It is at times frustrating, enjoyable, crazy and fun, but the end result is unbelievable and you'd be thinking, hey that was not so bad and wonder what all the fuss was about. A word of advice, if you think dealing with the bank is a pain, wait till you start dealing with the council Check out my blog if you want to see in advance the joyride you're about to embark upon good luck, relax and enjoy the ride Re: We are looking at building and have lots of questions! 7Apr 29, 2012 3:01 pm Thanks Jimnsal. I know building will be interesting - look forward to all the drama! LOL I figure that when you are building you are getting everything you want so there will have to be a little bit of sacrifice and drama and fuss! It makes life interesting. I have heard that councils can be a bit of a pain in the backside.... not looking forward to that bit but so many other people have built so I guess many have dealt with it. I have checked out your blog - thanks so much for sharing that with me. thanks once again. Re: We are looking at building and have lots of questions! 8Apr 29, 2012 10:58 pm Welcome Lynne! To sum up building, I would describe it as a roller coaster: ups and downs, ups and downs. We are in the middle now, but so far so good. H1 is an amazing resource, so research as much as possible - designs, builders, things to remember etc. It's all on here! Good luck. SunshineT's Build: viewtopic.php?f=31&t=34585 Designs start: 4/12/09 DA: 5/7/11 Demo: 22/12/11 Slab: 24/2/12 Keys: 31/8/12 Re: We are looking at building and have lots of questions! 9Apr 30, 2012 9:59 pm Hi Sunshine T, Thanks for that. I am not very good with roller coasters but just need to go with the flow hey! Good to hear that your experience has been pretty good so far. I really hope the final result for you is what you have always dreamed of. I am so excited about eventually embarking on the building journey. Ciao My land is 260m2 (10m x 26m) located in claymore NSW. Under campbelltown council. I know in general the following setbacks would apply ground floor side setback =… 0 7056 Check Grantham from Firstyle homes. We wanted to have void area and opted for Grantham 1 1668 You should check your detail drawings, it may show downpipe within brick pier. 14 14354 |