Browse Forums Building A New House 1 Apr 16, 2014 8:09 pm Hi all! Can someone enlighten me please. My husband and I signed our preliminary contract where the price of the house we will build includes quotation for tiling and carpeting and window treatments. Does it mean we can't undo that anymore? We realized we will save some money if we go through one window treatment shop but is it too late? Re: Finance questions 2Apr 16, 2014 10:02 pm We were able to make several changes after prelim contract. In our case we said finance approval was less than expected and we advised them that we needed to make some cuts, because the bank won't fund. We opted to do carpet ourselves post handover at half the builder cost, same with converting melamine benchtops to ceaserstone, etc. Don't pay a variation fee! Re: Finance questions 3Apr 17, 2014 12:08 am Thanks brissyguy..since day 1, our sales consultant has charged us with a variation fee. When we met him, we gave him the amount we can afford (house and land package), what we want in the house etc etc. some fees were credited because there were some features that we didn't like. If only I had an idea how much it takes to build a house in our area so I could compare.. Re: Finance questions 4Apr 17, 2014 11:02 am I have removed a lot of things from the contract at selection stage (when the contract has been signed long ago). I have included laminated floors, birs, air con in the original contract price to make sure that the bank approves the loan with all those inclusions and I knew that it will be more expensive to go through the builder. So after the loan has been approved, I have removed all that items and got the quotes from the shops which came about 30% cheaper. No variation charge at that point but it was the last time any variations were allowed. $500 variation charge after that. First house - Statesman Greenock (modified) https://forum.homeone.com.au/viewtopic.php?f=31&t=66876 Second house - Fairmont Grand Design (modified) https://forum.homeone.com.au/viewtopic.php?f=31&t=100789 Re: Finance questions 5Apr 17, 2014 1:54 pm vladmari I have removed a lot of things from the contract at selection stage (when the contract has been signed long ago). I have included laminated floors, birs, air con in the original contract price to make sure that the bank approves the loan with all those inclusions and I knew that it will be more expensive to go through the builder. So after the loan has been approved, I have removed all that items and got the quotes from the shops which came about 30% cheaper. No variation charge at that point but it was the last time any variations were allowed. $500 variation charge after that. This would not have been possible with our construction loan (with ANZ), they only approve according to the final agreed contract with the supplier(s). So we wouldn't have been able to get approval until the contract was finalised with the builder, and the schedule of payments was made available to the bank. Then the payments get made straight to the builder; so if we DID reduce the amount of the contract after it was all signed & building had started, then the builder would make a request for a progress-payment which was less than the original amount; and the bank would pay them directly, with no ability for us to use the extra unpaid-amount for something else. Now we could have arranged for all the laminated floors, aircon etc to have come from those third-party suppliers; but we'd have to have told the bank up-front, and they'd want to pay those suppliers directly. Basically, there was no way for us to "borrow more" in order to cover extra expenses beyond what the builder invoices us for, unless those extra expenses were also in the original construction-loan agreement. I imagine there are heaps of lenders that do it the way yours is, though; it probably pays to check details like this up-front. Re: Finance questions 6Apr 17, 2014 2:02 pm Forg vladmari I have removed a lot of things from the contract at selection stage (when the contract has been signed long ago). I have included laminated floors, birs, air con in the original contract price to make sure that the bank approves the loan with all those inclusions and I knew that it will be more expensive to go through the builder. So after the loan has been approved, I have removed all that items and got the quotes from the shops which came about 30% cheaper. No variation charge at that point but it was the last time any variations were allowed. $500 variation charge after that. This would not have been possible with our construction loan (with ANZ), they only approve according to the final agreed contract with the supplier(s). So we wouldn't have been able to get approval until the contract was finalised with the builder, and the schedule of payments was made available to the bank. Then the payments get made straight to the builder; so if we DID reduce the amount of the contract after it was all signed & building had started, then the builder would make a request for a progress-payment which was less than the original amount; and the bank would pay them directly, with no ability for us to use the extra unpaid-amount for something else. Now we could have arranged for all the laminated floors, aircon etc to have come from those third-party suppliers; but we'd have to have told the bank up-front, and they'd want to pay those suppliers directly. Basically, there was no way for us to "borrow more" in order to cover extra expenses beyond what the builder invoices us for, unless those extra expenses were also in the original construction-loan agreement. I imagine there are heaps of lenders that do it the way yours is, though; it probably pays to check details like this up-front. We have a construction loan with ANZ... Yup, They definitely wouldnt approve on a pre-lim contract, only the final build contract. We submitted seperate quotes for flooring, landscaping, concreting, curtains and blinds and a deck/pergola. Not because we wanted to, but because the valuation called for a "complete and finished" build. We are getting these extra funds in our account after the last progress payment to the builder, not to the suppliers of those quotes. They will still send a valuer out to make sure they've been completed and we havent blown the $$ on a trip to Europe, but they arent paying them direct - in our lenders words "too much hassle and admin required for that". Thread: viewtopic.php?f=31&t=66299 Slab: 16/6/14 Frame: 4/7/14 Roof: 22/7/14 Lock Up: 20/8/14 Fixing: 26/8/14 PCI: 9/10/14 Handover: 20/10/14 Re: Finance questions 7Apr 17, 2014 2:17 pm deluxes They will still send a valuer out to make sure they've been completed and we havent blown the $$ on a trip to Europe, but they arent paying them direct - in our lenders words "too much hassle and admin required for that". Maybe there's a threshold, under which they just pay you rather than the supplier? Or maybe our lending-manager didn't want us to do it this way. Our builder isn't doing landscaping or driveway, most wardrobes/cupboards are being done afterwards, and there're light-fittings etc that need doing afterwards too; although you could live in it without that stuff I guess. We had to increase the mortgage we already had, so that we had money left over for that stuff afterwards. Re: Finance questions 8Apr 17, 2014 2:21 pm We borrowed on a 95% lend - total quotes at the end were $56k on top of our builders contract & land contract. It's strange how you dont get a consistent result isnt it? One person says no to someone, does it for someone else elsewhere... bit annoying really! Thread: viewtopic.php?f=31&t=66299 Slab: 16/6/14 Frame: 4/7/14 Roof: 22/7/14 Lock Up: 20/8/14 Fixing: 26/8/14 PCI: 9/10/14 Handover: 20/10/14 Re: Finance questions 9Apr 17, 2014 2:40 pm Ours was completely different with ANZ to both of you. We didn't have to get quotes for a complete build and they offered to give us more money on the mortgage to pretty much do with as we pleased, which we said no because we'd planned to spend as little as possible while I'm still at uni. Building the Leabrook with Fairmont Homes in Mallala, SA. Building contract 24/3/13 Council Approval 18/6/13 Selections 29/6/13 & 1/7/13 Site works 21/10/13 Slab 7/11/13 Re: Finance questions 10Apr 17, 2014 2:53 pm ANZ = Consistent Thread: viewtopic.php?f=31&t=66299 Slab: 16/6/14 Frame: 4/7/14 Roof: 22/7/14 Lock Up: 20/8/14 Fixing: 26/8/14 PCI: 9/10/14 Handover: 20/10/14 Re: Finance questions 11Apr 18, 2014 10:15 am Sorry, I did not explain it right. I did submit the quotes as well from the different suppliers for the final approval but, as an example, the builder quoted me on the laminated floors $8,000 and Discount City Carpets quote for similar product with installation was around $8,000 mark too. After the final approval I went out of interest to Carpet Court and the quote to the same product as builders was only $5,000. Of course I will be doing it with Carpet Court. Similar situation with air conditioner and solar panels. I am with Westpac by the way First house - Statesman Greenock (modified) https://forum.homeone.com.au/viewtopic.php?f=31&t=66876 Second house - Fairmont Grand Design (modified) https://forum.homeone.com.au/viewtopic.php?f=31&t=100789 Re: Finance questions 12Apr 18, 2014 10:23 am For the bir it was a bit different. The quote was slightly higher than the builder quote but for $900 builder is only doing shelf and rail and Image Robes for $902 will install 4 draws, 3 small shelves, two short rails, one long rail and two long shelves at the top (I want two shelves as we have high ceilings and the space will be used better) and end panel. After I have received the final plan from the builder, I realised that the builder removed the bir doors but left the end panels as part of the walls. It will save me extra $138 per bir for the end panel so the final price is $764 per bir. First house - Statesman Greenock (modified) https://forum.homeone.com.au/viewtopic.php?f=31&t=66876 Second house - Fairmont Grand Design (modified) https://forum.homeone.com.au/viewtopic.php?f=31&t=100789 Re: Finance questions 13May 29, 2014 6:05 pm our lender (Bankwest) is requesting quotes for Curtains/Blinds(Appropiate Window Treatment, according to its wording) . We are not really sure about what kind of treatment we will give to our windows, also we are planning to do some of the curtains, so only material. Now, the problem is they want the quote and the money in our account now!!! you were just referred to get advice from your solicitor. This is a legal matter. Separately, why would you use a buyers agent for a house and land package? 3 55077 Personally, considering your layout (study/work desks in bedrooms), I don't think you have any other option but to leave NW windows and make them as big as possible e.g.… 7 10455 We had this happen to us last year and got charged a variation. Try and give away as much as you can that is usable to charity otherwise if you are in Sydney I have a… 1 4477 |