Browse Forums Building A New House 1 Apr 18, 2013 8:21 pm Hi Everyone I am new to this forum and new to this whole process of demolishing and rebuilding. It is all very daunting and exciting at the same time. We are building a house in Melbourne and have signed to build the Monaco Nouveau Q1 Mk2. So far the process has been relatively smooth and the sales guy was very helpful and informative. We have been going to Cosham Interiors over the last 4 weekends and last night had our colour appointment. I am happy with everything we picked but am worried about the quality of the carpets and flooring. We have chosen the UTF Artesan collection in Cream. It is a 12mm laminate and then upgraded our foam under the carpets to 10mm. I am concerned we are paying to much for all the flooring (just over $10 000) and wonder if we would be beter off doing the flooring after the build. Our tender is booked in for mid May. One of the things I am not sure of is that we have been pre approved by the bank for the build but they are asking for the contract which is obviously still months away. What worries me is that we have to demolish our house between tender and contract stage because they have to do a second soil test and we have to get underground electricity installed prior to build. What is concerning me is f we demolish the house, go to contract stage and then there is some unexpected costs or problems and the bank says they will not finance. I just find it a really weird way of going about things. Is there any advice that anyone can give me to help us on our way? Thanks in advance Re: Demolish rebuild Monaco Nouveau Q1 Mk 2 with Henley 2Apr 18, 2013 8:53 pm Hello, Doing the exact same thing as yourselfs, demo and build with Henley. In regards to the bank, the pre-approval really does not mean much. You need to consider that once the house is demolished its worth much less in the banks eyes. some examples: say the property as it stands now is worth $500K, once demolished it will be maybe $380K (land value). Say you spend $300k with Henley, bank may only think it is worth $280K. So they add up $380 + $280 = $660K , but then they will only let you borrow up to 80% of that $660K , more if your going to be paying LMI. So you must do your sums now and see if the bank will lend you an amount based on reduced land and house value, then make sure you have some extra $$$ to cover yourself if the valuation is really bad.... Also order your underground power now!!! it takes a very very long time to get done!. Re: Demolish rebuild Monaco Nouveau Q1 Mk 2 with Henley 3Apr 18, 2013 9:43 pm Thanks for the reply. We have had our land already valued by the bank and we have that part of the loan already in place even though we are still living here for a little longer. That is what is concerning me where you have written that the bank will only think the value of the house is $280K and we have spent say $300. This is why I am concerned about demolishing the house before we get the valuation from the bank but the bank is asking for a contract. I guess we may just have to hope they value it for no more than 20% of the total so we can avoid LMI. Maybe when we get the tender documents I will talk to the bank further so we have more of an idea. I have spoken to the company about the underground power and they told me it takes 20 working days. I will look at getting this sorted very soon. Re: Demolish rebuild Monaco Nouveau Q1 Mk 2 with Henley 4Apr 18, 2013 10:39 pm Seems a little odd - we're doing a knock down rebuild but I didn't move out and demolish until AFTER I'd signed the contract. I wasn't about to knock it down and have some unreconcilable problem occur prior to contract! Had everything lined up ready to go and we moved out once we'd signed and gave the demo guys the go ahead. They did a soil test after demolition and we actually ended up with money back in our pocket via variation as site costs ended up being less than the PC allowance they used for the contract sum. Underground power took the full 20 days to get done - thought it was going to be fast as the guy was out measuring up the day after I submitted the paperwork...but they didn't turn up to actually do the work until bang on day 20. Completed a knock down and rebuild in northern Melbourne. Handover completed 27/09/2013 and now moved in. We've had the offer of a short term tenant whilst waiting for CDC/DA home approval and demolition for our knock down rebuild. It would achieve a pretty low rent as it's… 0 13850 5 6867 if the original house is in good condition most of what you listed could be added in stages without the need for KDR and costs and disruption of having to live elsewhere… 1 13807 |