Browse Forums Building A New House 1 Nov 14, 2014 11:43 pm Hi there, We are currently in the process of a house and land package and so far we have been in the process for over a year and yet still not building. At the start we paid a $3,500 deposit for the land and the build, was asked what deposit we had which was $12,500 not including the FHOG we have now ended up paying $26,000 and have just had our settlement and now have been slammed with another $3,000 bill for the builders. We were on their backs constantly with extra cost and were always told no. I have now become extremely worried wether this is right.... Re: New home and land 2Nov 15, 2014 7:33 am Hi Shanj, I am also starting to build my first home with home and land package. Who are you building with? I havent been asked for extra deposit: Our Step currently 1. $1000 Securing the Lot 2. $9900 Securing Tender 3. Now about to exchange on the land which require 10% of deposit. 4. In the middle doing variation before finalising building contract. Thornton23 Aug-Oct 2014 Deposit Tender April 2015 Land titled Jun-Jul 2015 Final Tender &Clipsal Aug 2015 DA approved Jan 2016 Slab Feb 2016 Frame Apr 2016 Brick June 2016 Roof July 2016 Lock up Re: New home and land 3Nov 15, 2014 1:39 pm We are building with summit homes it has been a horrible experience as our first home it seems to be becoming more and more not including water,power, gas rates etc it's a constant fight with the. To understand why the need for the money we had no warning of the extra $9k we have had to pay ontop of the $23k even after consistently asking if the will be any sudden cost that we will need to be aware of. We had out deposit down last year and have been through our variations but they are now saying because the land wasn't ready for building 4 months ago we have to pay them another $4k. New home and land 4Nov 15, 2014 2:56 pm Are you meaning you're concerned that many things aren't included in your build on top of rates etc? When you buy land you will become responsible for rates (annually or maybe you can pay quarterly), water bills (any water the builder uses on your site), electricy (any power the builder uses during the build), and also any damage your builder or their contractors might do to the kerb and /or footpath outside the lot, unless the local council accepts what is called a verge (or kerb) bond where they require $ from you to guarantee if you don't repair the damage they have $ to go towards it. Often, this "bond" is a fee the builder will include as a line item in your site works costs so you pay them (eventually, as its included in your contract costs) and the builder will pay it to the council, and if no damage occurs it should be credited back to you by builder at end of build. Check the details of all your contract docs, probably the general specifications or addenda. In relation to water, the builder should organise for contacting Watercorp to get a tap installed. Ask them if they are doing this. If it's not included in your contract you will have to organise it. Also, it would pay to check with builder if they are doing it, as to where it's likely to be located. This will be somewhat up to the engineers plans for the development (which the builder probably has had no involvement with). For example, it needs to be reasonably close to the water mains in the streets underground utilities, but it would be handy if you have it near your side boundary perhaps? It sticks out above ground (quite high!) so after the build you may choose to apply online to Watercorp for them to put in a cast iron box so it's lid is flush with ground level. For example you may want to do this if its in your driveway paving area (as mine is!), as then you can pave right around it and drive over it. If it's located in what will be garden then no problem. Applying to watercorp to sink it costs about $600 from memory. To move its location more than half a meter almost doubled the price, so I'm just sinking mine! Sorting a power account is the same as if you move into a new house. Ring up synergy and they create you one. Builder should be responsible in your contract to organise the actual connection from mains to your house. Check contract, but id be very surprised if someone like summit group isn't doing this. Same applies for gas (except you can choose Alinta or Kleenheat). In terms of deposits, sellers often ask for about 10% of the land price. The housing institute Australia HIA contract only allows builder to take no more than 6% of the build value as a deposit. So maybe check the money you are paying is for land and the build or just the build and get them to itemize it in an email. Sounds like they are charging you an extra $4k as a price increase because your land wasnt settled (ready for building) 4 months ago. If this is the case (and you will need to carefully check detail of your contract ) then they are within their rights to charge a price escalation. Good luck!!! Re: New home and land 5Nov 15, 2014 6:03 pm Yes this is what the $4k is for but when we were told this we asked about it further and was told not to worry about it. It's very worrying it's the third time we've been asked for more money over doubled what our original deposit was. We're not worried about the gas, electrical and water etc as we can understand this. Thank you New home and land 6Nov 15, 2014 7:41 pm Well Id say keep worrying about it and get your contract out and check out all your costs and ask why are you charging me an extra $4k and where does the contract allow this? You don't want to "not worry about it" you want and answer now. And be clear in your mind about what the other amounts were for, that you have paid. If you're not clear ask for an email outlining what each payment covers. Builders will bring this $4k up again and again they won't forget about it. It'll be in your build final payment. Re: New home and land 7Nov 22, 2014 9:19 am I dont think ours in that step yet as our land not yet register and settle Thornton23 Aug-Oct 2014 Deposit Tender April 2015 Land titled Jun-Jul 2015 Final Tender &Clipsal Aug 2015 DA approved Jan 2016 Slab Feb 2016 Frame Apr 2016 Brick June 2016 Roof July 2016 Lock up 13 6636 2 5503 Is it just a report written to give to the bank initially and it is based on what and how your payments are made up for, or is it a full service where they go out and… 2 5607 |