Browse Forums Building A New House Re: Deposits via cash or bank loan, what is the difference? 5Jul 29, 2019 11:41 am 6.5% Deposit 15% Slab 25% Plate Height 20% Roof Cover 18.5% Lockup 15% PCI Re: Deposits via cash or bank loan, what is the difference? 7Nov 25, 2019 6:29 pm domwild Just getting quotes from builders and also ask them the questions re initial deposit followed by percentages of build price and the results vary. The deposit where you commit to the builder runs from $2000 to $5,000. Then each builder has different ideas despite the fact they all in WA claim to be using the "standard HIA" contract. "Housing Industry Association", a gov. body and one builder claims that HIA contract lays down the law re deposits. That builder wants 6.5% before he even starts after a $3,000 deposit, this means with my $15,000 I am pre-paying the site works plus drive way, insurance and engineering, shire fees, etc. and no slab to be seen. However, my mistake was to say "cash" as I cannot see the banks pre-paying a builder anything as they like to go broke. Another builder wants $5,000 and 10% on slab down, but productreview.com.au tells me 10% of the count of 5-star glowing reviews give that builder a "do not build with him" 1-star review! The government tells me one should definitely not pre-pay a builder anything and I suspect the magic word "cash" in my case made the salesman too cheeky. My architect justified his horrible charging by saying those sales persons/designers receive a 3-5% sales commission; is he correct? Looks like most of your questions have already been answered but in terms of sales commission, yes they get paid a commission but its more like 2-3%, however that is generally all they get paid, ie. no sale, no pay at all, no salary, no holiday pay, no sick pay, nothing but that 2-3% commission, so yes they get paid quite well for each individual contract but they do countless hours for other clients that never go ahead & essentially don't get paid a cent for that time. Thanks. I called VBA today and they said it was a Consumer Affairs issue, the old handball. Seems like the government organisations don't want to do their job at the moment. 2 7555 How much are you ahead in payments compared to where the build is at? Have you fully drawn down the loan? 5 11906 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 19096 |