Browse Forums Building A New House 1 Feb 03, 2019 1:59 am Hello all, I am building my house in Melbourne. I am still in the phase of finalising a builder. Porter Davis is giving $40K to $60K on it's base prices. However, they don't want to mention it in the quote. I am just wondering, if it is too good to be true and is there a loophole. Other mass builders are comparatively giving away nothing. What could be the reason? Should I be worried or go ahead with deposit with Porter Davis? https://www.porterdavis.com.au/special- ... ummer-sale Re: Porter Davis Summer Promotions- Is it too good to be tru 2Feb 03, 2019 7:21 am It seems odd that its applied as a post contract variation, so you presumably have to sign up for the full price (and get finance approved for the full price etc ?) and they will adjust it at some time after. Cynically, I could also see them inflate prices before applying the discount. You also have to satisfy their requirements during the process so you might not end up getting a discount either. I would definitely make sure its written in the contract as a condition since marketing material, emails etc are not part of the contract and as they say the offer may be withdrawn at any time. Re: Porter Davis Summer Promotions- Is it too good to be tru 3Feb 03, 2019 7:54 am Pricing is retracting & dropping,some Salesman try gaining deals by means of inflated giveaways They do not form part of a contract Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Porter Davis Summer Promotions- Is it too good to be tru 4Feb 03, 2019 7:57 am mazum Hello all, I am building my house in Melbourne. I am still in the phase of finalising a builder. Porter Davis is giving $40K to $60K on it's base prices. However, they don't want to mention it in the quote. I am just wondering, if it is too good to be true and is there a loophole. Other mass builders are comparatively giving away nothing. What could be the reason? Should I be worried or go ahead with deposit with Porter Davis? https://www.porterdavis.com.au/special- ... ummer-sale Late last year metricon, cArlise home and another builder I can remember was giving 40-50k off. Now is PD turn. So it already happened last year. Re: Porter Davis Summer Promotions- Is it too good to be tru 5Feb 03, 2019 10:47 am One of the reasons it is a post contract variation is that the discount is conditional on the site start date being met. You will be given a separate document outlining this, and I would get another form of confirmation in writing as well. With the royal banking commission biting hard it is to be expected that the sales incentives will be much higher. I believe they also did something big during December too so the promotion itself shouldn't be suss, although you need to do your due diligence on Porter Davis as a whole as you should with any builder Re: Porter Davis Summer Promotions- Is it too good to be tru 6Feb 17, 2019 9:51 am mazum Hello all, I am building my house in Melbourne. I am still in the phase of finalising a builder. Porter Davis is giving $40K to $60K on it's base prices. However, they don't want to mention it in the quote. I am just wondering, if it is too good to be true and is there a loophole. Other mass builders are comparatively giving away nothing. What could be the reason? Should I be worried or go ahead with deposit with Porter Davis? https://www.porterdavis.com.au/special- ... ummer-sale Hi Mazum We also got quote and are confused whether to go further or not.. have you done deposit? Re: Porter Davis Summer Promotions- Is it too good to be tru 8Mar 20, 2019 9:30 am Yes I did. However, they are overbooked and taking lot of time to respond and schedule Tender appointment. I got 2 surprises related to site cost. Initially they fixed it to $13,500, then they increased it to $14,500 and now an additional $5000 for enhancing the windows as the wind rating is N3. Re: Porter Davis Summer Promotions- Is it too good to be tru 9Mar 26, 2019 8:05 pm I am also confused with this Ad and asked consultant, he said that I will get *offer money in post contract variation. For ex: if I choose a lifestyle house with 350k base price and with 70k upgrades = 420k, I need to get loan for 420k. At the end they will adjust offer money. Is my understanding correct? Re: Porter Davis Summer Promotions- Is it too good to be tru 11Mar 27, 2019 12:39 pm The only down side which I think is that PD will get most of the payment before the last stage completion as the stage instalment will be calculated on the bigger amount than the actual lesser amount. Re: Porter Davis Summer Promotions- Is it too good to be tru 12Mar 27, 2019 1:24 pm luxbuild Exactly, its not a guaranteed discount (there are conditions) so you need to be capable of paying the full price. What conditions? Could you please point me? Re: Porter Davis Summer Promotions- Is it too good to be tru 13Mar 27, 2019 1:27 pm mazum The only down side which I think is that PD will get most of the payment before the last stage completion as the stage instalment will be calculated on the bigger amount than the actual lesser amount. Does it mean PD won’t give discounted money back? Re: Porter Davis Summer Promotions- Is it too good to be tru 15Mar 27, 2019 9:44 pm Sidhartha mazum The only down side which I think is that PD will get most of the payment before the last stage completion as the stage instalment will be calculated on the bigger amount than the actual lesser amount. Does it mean PD won’t give discounted money back? They will, but understand the staged development model. Let me explain it with an example. Assume the contract price is $450,000 and we are getting $50,000 discount. So, essentially we are paying only $400,000. Stage 0: Contract Finalising Stage: We need to pay 5% of the contract amount. If the contract value was $400,000, then at this stage we should pay $20,000. But, the contract price is $450,000, then we need to pay $22,500. Extra payment is $2,500. Stage 1: Base Stage: We need to pay 20% of the contract amount. If the contract value was $400,000, then at this stage we should pay $80,000. But, the contract price is $450,000, then we need to pay $90,000. Extra payment is $10,000. Stage 2: Frame Stage: We need to pay 25% of the contract amount. If the contract value was $400,000, then at this stage we should pay $100,000. But, the contract price is $450,000, then we need to pay $112,500. Extra payment is $12,500. Stage 3: Lock-up Stage: We need to pay 20% of the contract amount. If the contract value was $400,000, then at this stage we should pay $80,000. But, the contract price is $450,000, then we need to pay $90,000. Extra payment is $10,000. Stage 4: Fixing Stage: We need to pay 20% of the contract amount. If the contract value was $400,000, then at this stage we should pay $80,000. But, the contract price is $450,000, then we need to pay $90,000. Extra payment is $10,000. Stage 5: Completion Stage: We need to pay 10% of the contract amount. If the contract value was $400,000, then at this stage we should pay $40,000. But, the contract price is $450,000, then we need to pay $45,000. But, now they will add the discount of $50,000. In actual we'll get $5,000 as refund. So, if we add all the payments we made till stage 4: $22,500 + $90,000 + $112,500 + $90,000 + $90,000 SUB-TOTAL = $405,000 Stage 5 Refund = -$5000 TOTAL = $400,000 So, actually there is no Stage 5 payment. We have no leverage at the end. PD has no financial interest to finish our Stage 5 soon. Check with anyone who built the house, Completion stage is always the most time consuming phase. In this case, PD has no motivation to finish it, except the penalty clause which will kick in after ~10 Months (I guess). Hope this clarifies. Re: Porter Davis Summer Promotions- Is it too good to be tru 16Mar 27, 2019 10:00 pm I can point out 2 major points in the TnC of the offer (with my limited legal understanding): 1. "To be eligible for this sale offer your land must title within 400 days of the date of your initial deposit." - Land should be titled within 400 days. 2. "Client must meet all milestone appointments set by Porter Davis to ensure site start date is met. (Refer to Procedure of Purchase Document). Any factors causing delays to the nominated site start date that are outside of the builders control, may result in the voiding of this offer." - All the staged payments are made timely. So, financial institution should not delay payments being made to PD. Rest looks alright to me. Re: Porter Davis Summer Promotions- Is it too good to be tru 18Mar 28, 2019 9:24 am mazum Sidhartha mazum The only down side which I think is that PD will get most of the payment before the last stage completion as the stage instalment will be calculated on the bigger amount than the actual lesser amount. Does it mean PD won’t give discounted money back? They will, but understand the staged development model. Let me explain it with an example. Assume the contract price is $450,000 and we are getting $50,000 discount. So, essentially we are paying only $400,000. Stage 0: Contract Finalising Stage: We need to pay 5% of the contract amount. If the contract value was $400,000, then at this stage we should pay $20,000. But, the contract price is $450,000, then we need to pay $22,500. Extra payment is $2,500. Stage 1: Base Stage: We need to pay 10% of the contract amount. If the contract value was $400,000, then at this stage we should pay $40,000. But, the contract price is $450,000, then we need to pay $45,000. Extra payment is $5,000. Stage 2: Frame Stage: We need to pay 15% of the contract amount. If the contract value was $400,000, then at this stage we should pay $60,000. But, the contract price is $450,000, then we need to pay $67,500. Extra payment is $7,500. Stage 3: Lock-up Stage: We need to pay 35% of the contract amount. If the contract value was $400,000, then at this stage we should pay $140,000. But, the contract price is $450,000, then we need to pay $157,500. Extra payment is $17,500. Stage 4: Fixing Stage: We need to pay 25% of the contract amount. If the contract value was $400,000, then at this stage we should pay $100,000. But, the contract price is $450,000, then we need to pay $112,500. Extra payment is $12,500. Stage 5: Completion Stage: We need to pay 10% of the contract amount. If the contract value was $400,000, then at this stage we should pay $40,000. But, the contract price is $450,000, then we need to pay $45,000. But, now they will add the discount of $50,000. In actual we'll get $5,000 as refund. So, if we add all the payments we made till stage 4: $22,500 + $45,000 + $67,500 + $157,500 + $112,500 SUB-TOTAL = $405,000 Stage 5 Refund = -$5000 TOTAL = $400,000 So, actually there is no Stage 5 payment. We have no leverage at the end. PD has no financial interest to finish our Stage 5 soon. Check with anyone who built the house, Completion stage is always the most time consuming phase. In this case, PD has no motivation to finish it, except the penalty clause which will kick in after ~10 Months (I guess). Hope this clarifies. Thanks Mazum for clarifying. Have you signed with PD? what plan are you building? Three options 1 Ask the liquidator 2 Find another PD customer and ask the source of their report 3 Pay for new report 3 13733 It will be neat but you won't have much freeboard. At least they are not weep holes. Are you in a high intensity rainfall region? The regulatory slope is only required… 3 8498 Firstly, if your house is still under builder's warranty (10 years in Victoria) you should have no need to crawl into roof space but let the builder handle it, unless you… 3 5757 |