Browse Forums Building A New House 1 Feb 17, 2015 8:04 am Hi guys, When we do prestart on the 25th this month, I'd just like to know how the payment for it usually goes. I've had some people tell me that as long as it is paid before handover, then it's alright. But the builder, or sales rep for the builder said to me that it needs to be paid in full at prestart. What sort of time frame should I have to pay off any prestart changes/addidtions? I'm with Keystart also at max borrowing so can't add anything into the mortgage. If it is indeed before handover, how do I speak to the builder about this as they have said it's to be before any work is done on the house (before slab down essentially). Thanks Re: Prestart payment 2Feb 17, 2015 8:34 am That sounds strange to me. Why would you pay for anything you have not received yet? Our building contract specifies that prestart variations are billed at the end, ie after they have been done. Our build thread [url]https://forum.homeone.com.au/viewtopic.php?t=71492/url] Prestart: 18/7/14 Final plans: 13/8/14 Building permit: 30/9/14 Re: Prestart payment 3Feb 17, 2015 9:03 am I think it depends on the builder. We are onto our second build and we have had 2 different approaches. 1 automatically built it into the loan (ie we didn't get final finance approval til after prestart) but that was a while ago now. The one we are dealing with now was exactly the same as you wanted payment on the day. We negotiated with them and got it restrosoecticely included in the loan. Bit of a different situation with you as you said you are unable to include it as the loan is already at its max. Personally I can kind of understand then that they would want payment up front as they are ordering the materials and doing the work sit minimises the risk to them to have you pay now. What if they didn't and then in 6-8 months something in your financial situation changed and you couldn't pay? I can understand your frustration though having gone through the same thing, that is why we fought so hard to get it included in our loan. Probably your best option is to minimise your upgrades at prestart or you could ask them about a payment plan which I have heard others mention (but the construction usually can't progress until it's paid). Sorry for the essay! Kat Re: Prestart payment 4Feb 17, 2015 11:24 am payment for us is at the end but we did have to bring in a bank statement to confirm we could pay for it, i think the builder doesnt want to give you $30k in extra stuff if you cant pay for it with the loan. so our last payment will be 2 instead of 1, the bank will pay what they agreed to loan us and we make a payment for the rest. as your with key start they should be happy to pay for drapes, carpets and paint plus some upgrades as my friend did this just last year. most builders require payment within 10 working days of being issued the bill and most of the time at prestart they tell you then and there how much things are so you know if you can afford to add it or not but you dont get the bill until you finalize prestart and state that you are happy with all of the costings. Re: Prestart payment 5Feb 17, 2015 11:29 am Ours is billed at the end Our build thread: https://forum.homeone.com.au/viewtopic.php?f=31&t=70984 Hi Everyone, wondering if anyone has done a prestart lately with summit homes in WA and what kind of costs were associated with adding gpo's and downlights? we are also… 0 3848 regardless, your contract stipulates a payments schedule and SOPA doesn't give provision to that scenario. Your contractual terms appear to stand. Hence get a lawyer, it… 4 11782 There is no reason why building contract reconciliation cannot be done prior to handover, if the builder won't do it get someone to do it for you. Why would you pay for… 3 6632 |