Browse Forums Building A New House 1 Oct 08, 2009 1:07 pm We have "bought" a house and land package with PD in Mernda Villages. Site start is due to start in December. Developers have indicated that the block may not be available for a December site start - although we were initially advised that land would be titled in September. We are wondering what happens in this instance? Do PD then simply start building as soon as land is available after December, or do they knock you to the back of the queue? We would love to hear from anyone who may have had this experience. Re: PD - House and Land Package 2Oct 08, 2009 1:27 pm Hi Venga, I am also building with PD but a different estate. The way it works is this. PD commits to a site start Month. Normally its based on the volume of builds in your area. Your land is a seperate issue. Settlement will normally take place 2 weeks after title. PD cannot start building until you have settled the land and also got the building permits issued by the council. Normally this takes about 4 -6 weeks post settlement. In your case this would push you our about 2-3 months across the Christmas Holiday period. You will need to be shifted to the next available site start month, which may be March 2010. Hope this helps Re: PD - House and Land Package 3Oct 08, 2009 6:35 pm Hey eve just to your reply , so basically you do get pushed right back into the queue , i hope our land settles on time if thats the case but i have my doubts .... in that case i hope PD will be on the ball as we are also waiting till feb-march next year for land to title and settle in our name ... Re: PD - House and Land Package 4Oct 08, 2009 6:50 pm THe builder cannot proceed till the land is titled, and all estates are running behind. THe issues are as follows: The builder can push up the price of the contract and PD do, then you can end up taking longer than the 26 weeks allowed to qualify for the grant after contract signing to get to site if you are relying on the first home owners grant, you will need to apply for dispensation from the State Revenue Office. The delay is out of the builders hands... Re: PD - House and Land Package 5Oct 09, 2009 9:48 am Would really appreciate hearing from someone who has had this experience so we know what we may be facing. Have asked developers and builders but they are quite vague with their answers. Re: PD - House and Land Package 6Oct 09, 2009 9:55 am Is it one of PD's new house and land packages, where you only pay 5% upfront and the rest on completion? Or is it a standard buy-the-land first and then make progress payments deal? That might make a difference to where you end up in the queue. Re: PD - House and Land Package 7Oct 09, 2009 1:03 pm kek Is it one of PD's new house and land packages, where you only pay 5% upfront and the rest on completion? Or is it a standard buy-the-land first and then make progress payments deal? That might make a difference to where you end up in the queue. Its a construction loan, not off the plan. 5% is to contract then the rest is drawdown by stage. 10% Slab, 25% Frame and so on... You basically have to pay them at each stage to progress. If you are borrowing the money from a lender, you will be making interest only payments on the balance borrowed monthly until you take possesion. You need to calculate the run time costs of interest over the construction life time to work in your total budget. The interest on a $400k house and land package can be up to $12,000 over 9 Months etc. Re: PD - House and Land Package 8Oct 09, 2009 3:12 pm Eve Dweller kek Is it one of PD's new house and land packages, where you only pay 5% upfront and the rest on completion? Or is it a standard buy-the-land first and then make progress payments deal? That might make a difference to where you end up in the queue. Its a construction loan, not off the plan. 5% is to contract then the rest is drawdown by stage. 10% Slab, 25% Frame and so on... You basically have to pay them at each stage to progress. If you are borrowing the money from a lender, you will be making interest only payments on the balance borrowed monthly until you take possesion. You need to calculate the run time costs of interest over the construction life time to work in your total budget. The interest on a $400k house and land package can be up to $12,000 over 9 Months etc. Yes, I have built a house, so I understand how progress payments work. But as I mentioned, there are two types of house and land "packages", and these new ones PD are offering are exactly as I said: no progress payments. Which is the same way we bought our first home 24 years ago. http://www.porterdavishomes.com.au/#/homesunderconstruction_intro Re: PD - House and Land Package 9Oct 09, 2009 4:52 pm Hi Again, I work in new home sales and understand the process pretty well. Developers sell land with an expected title release, in your case December. Then the site works are delayed for any number of unforseen circumstances, which then will delay your site start as you cannot proceed to build on a vacant paddock or with out the pegs being in to be able to identify the exact lot. Even if the pegs ARE in the site may not be ready for soil testing as the land may still be in the process of leveling, so the builder cannot give you a site start until he knows the date the land will be ready. Once the land is ready although not yet titled, but physically compliant, (all works are done and just waiting to get the ok from the titles office) the builder can proceed to soil test. He cannot yet proceed to site as the title needs to be transfered into your name. Once this occures the builder can varify you own the land and proceed to site. They will not proceed to site until you own the land. The issues you are facing: 1.THe delay on the land may require you need to get an extension from the State Revenue office(SRO) for the FHOG (first home owners grant) as you only have 26 weeks from the date you sign your contract to get the slab down. If you sgned before the 30th of June you will be in real trouble getting the full grant as you would need to be on site slab down by end Dec. If you signed by the end of September you would still have till March 30th to get to site. It would be helpful for you to make sure you have the expected date of title release from the developer IN WRITING, as this will enable you to present the case to the SRO, you see if you bought land with a title release date well in advance which would prohibit you having any chance of a 26 week site start you will not get the grant. Your developer providing proof that the delay is their fault and not the fault of you or the builder, you can get an extension. 2. THe builder has the right to increase the contract price if you take longer than the allowable time frame to get to site nominated on the contract...(the builders terms all vary) I hope this helps.... Re: PD - House and Land Package 10Oct 09, 2009 5:01 pm See my thread in the Homeone Advice forum, on builder specific threads. Sorry to say, but threads and questions such as these are quick questions (usually) and could be asked and answered in a single PD info thread. If we keep on creating new threads on small questions, the forums will be packed of repetitive and unnecessary threads. With these threads, once the question is answered, thats probably the end of the thread. But with a General Info Thread, it will continue and go on, as all builder-specific info will be found there. Cheers Re: PD - House and Land Package 11Oct 09, 2009 6:18 pm Salt&PepperMkII See my thread in the Homeone Advice forum, on builder specific threads. Sorry to say, but threads and questions such as these are quick questions (usually) and could be asked and answered in a single PD info thread. If we keep on creating new threads on small questions, the forums will be packed of repetitive and unnecessary threads. With these threads, once the question is answered, thats probably the end of the thread. But with a General Info Thread, it will continue and go on, as all builder-specific info will be found there. Cheers I have to disagree with you Salt & Pepper, as if the forum did this we could end up with a builder thread for every builder in Australia... plus I feel this is a very good question that deserves disscussion ... and a problem that a lot of could be facing ... Also this seems to be not a builder problem .. maybe it is because they direct there client to the land because it is a house & land package.. Or may be it is a Stockland problem because the land is not titled when the said it would be ... Then the forum would need 1000's of threads for the developers and 1000's for the builders it is just not realistic ... Plus I am more happy to read thread like this then "what colour coffee cup should I have and here is 15 pictures help me decide". Re: PD - House and Land Package 12Oct 09, 2009 6:25 pm Salt&PepperMkII See my thread in the Homeone Advice forum, on builder specific threads. Sorry to say, but threads and questions such as these are quick questions (usually) and could be asked and answered in a single PD info thread. If we keep on creating new threads on small questions, the forums will be packed of repetitive and unnecessary threads. With these threads, once the question is answered, thats probably the end of the thread. But with a General Info Thread, it will continue and go on, as all builder-specific info will be found there. Cheers Sorry, but the thought of you complaining that "the forums will be packed of repetitive and unnecessary threads" is a bit rich. How many polls and love fest Carlisle threads have you got going? ROTFPMSL!!!! I leave you to fend for yourself, figure things out yourself. Terrence Malick Re: PD - House and Land Package 13Oct 09, 2009 6:31 pm Salt&PepperMkII See my thread in the Homeone Advice forum, on builder specific threads. Sorry to say, but threads and questions such as these are quick questions (usually) and could be asked and answered in a single PD info thread. If we keep on creating new threads on small questions, the forums will be packed of repetitive and unnecessary threads. With these threads, once the question is answered, thats probably the end of the thread. But with a General Info Thread, it will continue and go on, as all builder-specific info will be found there. Cheers I'm sorry but I have to ask, are you serious? I couldn't really care how many threads there are, but you may need to take your own advice - there is a thread in the Coffee Break area about TV Shows, but yet you always create new threads for each show you want to talk about so I don't see how this can be serious. 'A bottle of wine contains more philosophy than all the books in the world.' Louis Pasteur Vegie garden: viewtopic.php?f=19&t=27637&start=0 My Backyard Adventure 13 6632 2 5503 Scientists have used random matrix theory to demonstrate theoretically that the neutrino mass hierarchy can be explained mathematically. When a substance is fragmented… 21 20669 |