Browse Forums Building A New House 1 Jan 13, 2017 1:43 pm Anyone that's getting sub-contarcters to complete their own carpet, main flooring tiling/floorboards, alfresco, driveway, landscaping, fences ect after handover how did you go about your loan? Did you add the amount that your finishes will cost after handover to your loan all in one at the start OR did you have to get your property revalued at the end and get in after completion from your bank? We are not having troubles being able to loan the amount we want just that our property value has not gone up yet (according to the bank) as we haven't started building so therefore they will only let us loan 80% of what the land/house cost us. Our scenario is: Lets just say the purchase price is $500,000 to make it easier ($250, 000 tender + $250,000 land) and we are borrowing 80% which is $400,000. This does not currently have finishing costs in it as mentioned above. The bank has given us 2 options Option A Borrow 80% of the purchase price (400k) When it is completed, get the land revalued (the value of the land has already increased at least 50k and we are expecting it to go up much more upon completion). Our new value would be say $550,000. This means that we can redraw to 80% again which would increase the loan to $440,000. We would use that extra 40k to finish the house (only need about 25k). We aim to have the cash to do it ourselves but it will be borrowed so the redrawn amount will be taken out as one payment. A revaluation costs $300, and to draw the money costs $80. Option B Get quotes for all the finishing costs as listed above BEFORE the loan commences so that is can be added to the purchase price. We are not going through our builder so we would have to use individual sub-contractors. This would make our purchase price lets says $525,000 (increase 25k roughly from finishing quotes). If we do it this way then there is money allocated in the loan but the bank is going to control the payment so we are going to have to get accurate quotes for work 6 or so months in advance. The contractors need to do that work then bill us, in which we then go and give that information to the bank and they pay the contractor. For each contractor it is an $80 payment (will need to pay about 5 different people) and the contractor will not get paid until a period of time after the work is complete which I'm unsure how they would feel about this. I feel that option B is the messiest option as we may find a different company in 6 months time with a better price, or a company may fold or can’t do that work. Then we have to get new quotes than anyway ect.. I'm interested to see how other people went about it all if they did finishes/work after handover like we are going to. Any help would be great!!! Re: Home Loan questions 2Jan 13, 2017 2:33 pm Depending on your lender if you give quotes they at the end of your construction will give you surplus funds which total upto those quotes previously supplied. You can engage whoever you want after that quote and pay a cash price and what ever you don't spend you pocket Re: Home Loan questions 3Jan 13, 2017 5:56 pm We increased our build tender. Eg allocated $15k for flooring upgrades , $20k electricial all knowing that we were not spending it with builder however funds are there for our extra expenses post build sich as blinds, landscaping, new furniture etc. All would depend on your lender though. Re: Home Loan questions 4Jan 13, 2017 9:36 pm $300 for a revaluation.... I'm sure once you're finished another bank will value it for you for free Re: Home Loan questions 5Jan 13, 2017 10:39 pm We got a quote for our air con & driveway separate from our builder. We got the quotes and submitted with our loan application. (Air con is over exaggerated as partners work is doing so when the real invoice comes through we have surplus funds in our loan) Building with Perry homes: viewtopic.php?t=84756 The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 13537 Hi, you've probably already resolved this, however, Commbank will probably pay the funds to you after you send evidence the work is done regardless the change in the quotes. 1 31784 Hi Suku18 In NSW the statutory required insurances are: 1. HBCF ( Home Building Compensation Fund) - This is if the builder dies or goes broke. But this only covers 20%… 1 1280 |