Browse Forums Building A New House 1 Sep 28, 2009 9:54 pm I will eventually start a proper thread for our build, but for now:
As you're probably aware, the First Home Owner's Grant steps down a level ($5,000) on Thursday, and so we're in a bit of bind at the moment. We're happy with the plans, the estate has approved the design and setback (which we thought wouldn't happen - i'll tell you another day), and the banks/conveyancers are primed. We've been told the land titles on October 8, so settlement isn't too far behind. All good so far. The issue is (and has been) that the soil test was done fairly late in the piece, and because of that, the engineer has obviously been pushed to get a lot of work done (there are about 6-7 Rawdon Hill homes in our street alone) before the deadline. As of today, we still haven't been given a correct and final estimate of the site costs. As it stands, there is a nominal amount (provisional) in the contract to cover it. The only issue we're facing with this is - if we sign the contract on Wednesday morning (as is going to happen) and there is no final cost, then we DO get the $'s back and it increases says $6K (conservatively), we're going to have to source that money after the contract either through the bank or of our own funds (which we don't have, it's all being saved to get the land going). Tied in with that is the fact that if we leave the provisional sum as is and it increases, the builder can ask for that money PLUS a 20% premium as it was post contract. We're not too keen on finding $1200 more on top of that. What were planning on doing is either: * On contract signing day, if the amount is not finalised, suggest to the builder he increase it in the contract to $10K to cover all the costs in case it happens, and whatever doesn't get used gets credited back to us to use elsewhere. * We bite the bullet and hope the costs don't increase much (more a decrease would be preferred !) * We tell the builder we don't wish to continue as he couldn't supply a fixed cost by the time of signing (more a scare tactic, we're too far into it now to muck around, but hey...). I'd love to hear suggestions - not abuse about what the right course is. Of course, this might all resolve itself by Tuesday night, but it's an unknown value. BTW, the land is quite flat (has about a 30 deg rise from the road, but only a short run and the acutal house land looks pretty good), and the preliminary gauge of classification of soil was "P", and we've been told it may be a modified "M", which is what we've been quoted so far. Hope all this makes sense ! *** EDIT : If you're building with or have built with Rawdon Hill, what were your site costs (rough, don't need the exact dollar) ? Re: We're THAT close..... 2Sep 28, 2009 10:35 pm I think if cash flow is the issue, ie: you won't have the funds available if you're hit with a big variation after construction starts, then you should definitely include 'a worst case scenario' cost in your contract now. Talk to the builder about what they think is a realistic site cost based on 'P' site, with a little bit of fat in it, to be included within your contract. It may not be as much as $10k (or it could be more). I don't think there is much point in telling the builder you don't wish to continue as a scare tactic, as you want to work with them and not against them at this stage (especially as it is 'last minute' for the bigger FHOG amount) Hope this helps? Re: We're THAT close..... 3Sep 28, 2009 11:35 pm Thanks Popp....nice to have another set of eyes on the issue - not so much a problem, just something to be solved
We're thinking along the bigger site cost size too as a last resort - unless of course tomorrow morning the engineer pops his head up and says "all done !" - it's down to the wire In terms of valuation - it's going to be hard to tell that too .... we're near (a) a primary school (b) train station (c) parklands - so hopefully that'll keep the numbers up - but we'll worry about that when the time comes. Not sure what other properties in Marriott Waters are being valued at in a similar size, etc. WOOHOO - 100 posts - oh well, little things Re: We're THAT close..... 4Sep 28, 2009 11:40 pm perhaps ask other people on this forum who have built with your builder if they found your builder's site costs excessive. If you get positive feedback about your builder's integrity (and believe me, if they aren't good with site costs, people won't hold back telling you so!!) then move ahead with your contract with an extra $10K, you could probably eat that up in finishing the property if you had to anyway... A thankful person is a happy person. [/color]My hobby design blog: http://aviewondesign.blogspot.com/ Re: We're THAT close..... 5Sep 28, 2009 11:43 pm Good idea AnnieTom......it's not really preferred to be adding an extra $6K to the loan value in the end, but if the builder goes for the re-credit, we can push it towards an exposed agg driveway or something noice ! Re: We're THAT close..... 6Sep 28, 2009 11:44 pm I think i would be getting the extra added to the contract now, and like Annietom said im sure you will find another way to spend it hehe . V Howdy all. I am looking for feedback on what people would do to maximise and make an area as flat as possible. First, out the front of the house is a sloping hill, pretty… 0 20152 I brought terry road box hill in June 2022 House was meant to be completed Nov 2023 That did not happen I had to chase them so much to the land Registration and… 0 2511 Hi there, I'm a conplete newbie to this, but I'm looking to put a floor down in my 6x9m shed. It's currently sitting on a 100mm thick concrete perimeter (dirt floor… 0 6467 |