Browse Forums Building A New House 1 Jul 27, 2020 4:43 pm So everyone has been helpful so far hoping i an get some insight again. About to move on to the next stage with out builder and start the process of obtaining a final build price. Do we do things like kitchen and electrical selections before we get to that final price (the price in which we supply to the bank). A good example of what i mean is there are provisions in our tender for 30 x LED downlights. My instinct is that we will need quite a few more than this to cover our house so do we need to get them to include this in the tender or can we work this out during our electrical appointment (assuming this happens before we have a final price)? Basically, do we need to have cash on hand to pay these things or will this all be sorted prior to final approval with the bank (in which case they will all be made up of inside of our loan). Likewise, if we select different flooring that what is provisioned for. Do we pay the difference out of our own pocket or is it included in the price that our loan is based on? Total novice on the whole process so apologies for the ignorance. Follow my build here: https://www.instagram.com/ivy5custom Re: When do the colour selections and other choices happen 2Jul 27, 2020 11:59 pm I guess it comes down to your preapproval amount and how much you add during selections, but all the adjustments you make during the selection process should be covered by the construction loan. I think the only time you might be out of pocket is during the build if provisional amounts dont cover the actual cost or if variations are added. I think the bank has some flexibility on whether it will pay for additional variations and add it to your loan or will ask you to pay the difference. Worth confirming with your bank. You can add things at tender for example "extra 20 downlights" and it gives you the option of negotiating with the builder before signing the contract. If you end up not adding all 20 downlights during the electrical selection you will get a credit for it. Also work out if some things are cheaper done by you after hand over so left out of the construction loan. Re: When do the colour selections and other choices happen 3Jul 28, 2020 9:22 am luxbuild I guess it comes down to your preapproval amount and how much you add during selections, but all the adjustments you make during the selection process should be covered by the construction loan. I think the only time you might be out of pocket is during the build if provisional amounts dont cover the actual cost or if variations are added. I think the bank has some flexibility on whether it will pay for additional variations and add it to your loan or will ask you to pay the difference. Worth confirming with your bank. You can add things at tender for example "extra 20 downlights" and it gives you the option of negotiating with the builder before signing the contract. If you end up not adding all 20 downlights during the electrical selection you will get a credit for it. Also work out if some things are cheaper done by you after hand over so left out of the construction loan. Thanks. That is useful info. I guess where we are getting a little confused is that we did a whole bunch of selections in the process of getting our first tender. While we selected things like "upgraded carpet, bigger kitchen, upgraded tiling" we still have no idea if the available options will be to our liking. I get the feeling we wont find that out until we do colour selections which seems like it could be after we've already paid a deposit on a build price. So to combat that im guessing we just need to keep going through tenders back and forth until we can get to a point were as much as possible is covered. And yes we are doing what we can post handover (a/c for example) but there comes a point where we don't have that much spare savings to spend on these things. Follow my build here: https://www.instagram.com/ivy5custom Re: When do the colour selections and other choices happen 4Jul 28, 2020 5:07 pm Im not sure who you are building with, but in my experience you need to know what you have chosen before the internal/external selection appointments, the builder only allows enough time to record your choices, it wasn't an interior design consultation. The builder can give you a list and price for what each level of upgrade is and you then spend your weekends going from brickyards/carpet and tile shops. Some of the suppliers will let you visit if you have a tender and give you quick explanation of the range, but will schedule a proper consultation/appointment later. It seems the suppliers provide all the consultation services on the builders behalf. It can be surprisingly difficult to select a brick colour/tile finish etc, so give yourself as much time as possible to consider the choices. You might find yourself happy with the standard inclusions. If the builder allows 6 months from tender to commencement, and you think it might take longer (for example going DA instead of CDC) some builders allow you to add in some monthly extensions for cheaper than if you happen to overrun whilst working toward commencement. For example, you could price in a 1 month extension in the tender for say $900, but if you needed to unexpectedly delay the building start, they might charge 1 month at $1k. You'll get this money back if you end up not needing an extension. Typically the builder won't start selections off until you've paid the deposit. If you've found others on this forum using the same builder, they can share the selection list so you can get a head start. Also you want to get as much sorted out up front as they'll often say that its $1k to make changes later on. Again my experience the builders can be pretty reasonable about this, but I guess they've got it there in case they have a owner that keeps on making changes. Re: When do the colour selections and other choices happen 5Oct 07, 2020 10:15 pm Monty85 So everyone has been helpful so far hoping i an get some insight again. About to move on to the next stage with out builder and start the process of obtaining a final build price. Do we do things like kitchen and electrical selections before we get to that final price (the price in which we supply to the bank). A good example of what i mean is there are provisions in our tender for 30 x LED downlights. My instinct is that we will need quite a few more than this to cover our house so do we need to get them to include this in the tender or can we work this out during our electrical appointment (assuming this happens before we have a final price)? Basically, do we need to have cash on hand to pay these things or will this all be sorted prior to final approval with the bank (in which case they will all be made up of inside of our loan). Likewise, if we select different flooring that what is provisioned for. Do we pay the difference out of our own pocket or is it included in the price that our loan is based on? Total novice on the whole process so apologies for the ignorance. Hi, how big is your house? How did they calculate the number of downlights? I'm kind of in the same boat at the moment. my House will be 175 sqm covered. They also included 30 downlights. not sure if that's going to be enough. Re: When do the colour selections and other choices happen 6Oct 08, 2020 12:23 pm Ranti13 Monty85 So everyone has been helpful so far hoping i an get some insight again. About to move on to the next stage with out builder and start the process of obtaining a final build price. Do we do things like kitchen and electrical selections before we get to that final price (the price in which we supply to the bank). A good example of what i mean is there are provisions in our tender for 30 x LED downlights. My instinct is that we will need quite a few more than this to cover our house so do we need to get them to include this in the tender or can we work this out during our electrical appointment (assuming this happens before we have a final price)? Basically, do we need to have cash on hand to pay these things or will this all be sorted prior to final approval with the bank (in which case they will all be made up of inside of our loan). Likewise, if we select different flooring that what is provisioned for. Do we pay the difference out of our own pocket or is it included in the price that our loan is based on? Total novice on the whole process so apologies for the ignorance. Hi, how big is your house? How did they calculate the number of downlights? I'm kind of in the same boat at the moment. my House will be 175 sqm covered. They also included 30 downlights. not sure if that's going to be enough. So basically they worked out the number of lights they think is required and paired them with a combination of standard batten lights. So if for example, your plan has 45 lights on it, 30 of them will be downlights and the rest standard batten lights. When it comes time for your electrical appointment im sure you can swap our the rest of downlights if you wished (it will just come at an extra cost). We included an electrical provisional allowance in our tender to cover this kind of thing. Follow my build here: https://www.instagram.com/ivy5custom I recently went through a similar renovation and move scenario when updating our family home. We also swapped some rooms around and tackled a major… 2 9871 How much are you ahead in payments compared to where the build is at? Have you fully drawn down the loan? 5 11893 Thanks for that! Yeah, I was thinking timber front door. 10 21607 |