Browse Forums Home Finance 1 Feb 16, 2013 6:46 pm I am a first buyer, i have 40k deposit and 320k preapproval, I was after a house and land package, i enquired to a building company and they found me a block which was pretty good for 218k, i had pretty much one day to decide on it so i went for it. They sent me to the the land agent and ive signed up for the land, with 2k deposit requried. So what happens next? I guess the offer goes to the developers and once approved i pay the deposit.. If its meant to be a house and land package, do i only have one loan? Re: just starting out - Need help to understand the process 2Feb 16, 2013 10:38 pm It is only one loan, but can depend on the bank. It's better to have it in one loan coz less fees etc. GOODLIFE - Bravo - BUTLER http://getmistyfied.blogspot.com.au Display 20/02/2012 PPA 01/04/12 Prestart: 25/07/12 Settlement: 31/07/2012 Contracts:August Slab 19/11/12 BRICKS 10/11/12 Roof 16/01/13 Re: just starting out - Need help to understand the process 4Feb 17, 2013 1:47 am Just make sure you have enough for the build! Depending where you are building and the block site works can also be a large additional cost. We ended up needing a retaining wall built, which added about $10,000 to the build because the retaining wall meant extra safety gear for the roofers. Our starting cost for our build including land was $375,000. After site survey and upgrades it is sitting at about $415,000. If I take out the major upgrades we made (nicer flooring, stone bench tops, some extra paving) it still ended up at $400,000. Our land was $220,000 and we are building a modest 3x2. Re: just starting out - Need help to understand the process 5Feb 17, 2013 1:50 am To answer the question about the loan ours was done as a construction loan. You apply for the full amount you need for the house and land. When you settle on the land the bank draws down the amount needed for the land and you pay interest on just the amount drawn down. Once construction starts the bank makes payments to the builder at different stages which progressively draws down on the loan and in turn increases the repayments till you make the final payment which in most cases will draw down the last of the loan amount. I hope that makes sense. Re: just starting out - Need help to understand the process 6Feb 17, 2013 8:56 am I'm in a similar position at the moment. Although ours isnt house and land package. I think I have a handle on it now and I have been told the same as fmac describes. Fmac just wondering what inclusions you got for your house. Seems like a great price. Could you share your opinion on a recent post of mine? 'We are first home builders and buyers and have a contract on a 620m2 in QLD. We have seen the builder (see link) and requested a preliminary quote so we can send it and the land contract through to the lender (via a broker). Looking at the quoted price of the house only (see link) would you expect the price to be what's listed. We have requested some changes, cheaper style roof, smaller media room, larger living room width 600mm and walk in pantry to the kitchen. (See custom plan) So would be saving money on some aspects and increasing cost on others. The inclusions seem generous with AC, landscaping allowance (we only want absolute basic at this stage), floor coverings, blinds, security screens and site costs included. We have visited the display home nearly ten times and love it as is with the inclusions offered. Is this price too good to be true or does it seem ok? Thanks for any advice.' http://www.mystylehomes.com.au/fileadmi ... Mirage.pdf[/URL] Custom plan. Like ⋅ Add a comment ⋅ Pin to Ideaboard ⋅ Re: just starting out - Need help to understand the process 7Feb 17, 2013 12:10 pm I'm in WA so I am not sure how similar it is in QLD. We had a provisional sum for site works included but once we had paid the deposit and they did the survey of the block that is when we discovered due to the fall of the block we would need a retaining wall which increased the price. Does you package include what is on display in the display home or will they be upgrades? Our biggest expenses in upgrades was the kitchen (stone bench top, pot draws, And cupboards over the fridge recess). We also didn't want tiles in the living area so it was another $1500 for the wood look flooring we wanted. The other major cost was our tiling, while we picked tiles in the builders standard range they weren't the standard size they allowed so had to pay extra labour cost. As I said I am no expert on this whole thing but that package seems to probably be more realistically priced then ours was to start with (our land was much more expensive). The important thing is to ask what is included and what is extra, particularly yours compared to the display you love. That will give you a good idea. The extra costs come when you want things not in the builders standard range. If you can live with what is included with the package they only extra you might be stung with is site works. Good luck. The house looks great!! Re: just starting out - Need help to understand the process 8Feb 17, 2013 12:30 pm Thanks for the feedback fmac. Some aspects of the display aren't included such as mini bar, decking, fancy garage door and glass Louvers to living room. We are fine with that and are only adding the Louvers x 4, about 2000mm x 800mm. The WIP, extra 600mm width in living room and the Louvers are the only changes to the advertised inclusions. Our block isnt in the advertised estate but looks ready to build on. Hopefully the site costs allowance is enough to cover it. Thanks again. Re: just starting out - Need help to understand the process 9Feb 17, 2013 12:47 pm I just saw your other post, the location of your block looks lovely. I would think if you have asked about the inclusions and are happy with them your only chance for increased cost is site costs. The only big change we made to our plan was to make the house 1m longer (to make the kitchen bigger) and that came in at just under $4,000 but I think that included the extra kitchen cabinets to fill the space as well. Re: just starting out - Need help to understand the process 11Feb 18, 2013 2:14 pm i just spoke to my bank, im even more confused now. They said that if the contract to build is not available at the time of buying the land then i get charged stamp duty...which i can then reclaim after getting fhog.. Re: just starting out - Need help to understand the process 12Feb 18, 2013 5:53 pm Jayboy, I'm assuming you are talking about stamp duty concessions for first home buyers for the state you will be building in? The reasoning behind that is that vacant land is not classified as being a home so it isn't eligible for a stamp duty concession. So if you buy the land separately then you will be charged stamp duty for it (like any other property purchase). However if a home was built on it then it becomes eligible for the grants and concessions, hence you can claim a refund on the stamp duty. That's my reading on it. Cheers Tom Re: just starting out - Need help to understand the process 13Feb 27, 2013 2:47 pm Thanks for that, your correct. My land contract has 60 days for finance on it. Ive been told by the builder its 6 weeks for contracts to come out. So hopefully that's enough time. I just worry the about how long the bank will take.. Re: just starting out - Need help to understand the process 14Mar 02, 2013 11:11 pm jayboy I'm assuming you're in WA seeing as you're also building with Goodlife. If you make the application for FHOG you should be exempt from Stamp Duty AT settlement - this is what I was told by my settlement agent. (PM me if you want the best and cheapest settlement agent details) In my situation, I hadn't applied for FHOG by settlement but once I had applied and had it approved, the stamp duty was refunded back to me immediately, before I even had a slab. The $7000 grant was given to me once slab went down. Hope that helps. GOODLIFE - Bravo - BUTLER http://getmistyfied.blogspot.com.au Display 20/02/2012 PPA 01/04/12 Prestart: 25/07/12 Settlement: 31/07/2012 Contracts:August Slab 19/11/12 BRICKS 10/11/12 Roof 16/01/13 Re: just starting out - Need help to understand the process 15Mar 02, 2013 11:14 pm Have you got preapproval yet? Are you dealing with a broker or directly through bank? They shouldn't take more than 2 weeks at the very most to get your finance sorted, provided you give them all the documents they want straightaway. GOODLIFE - Bravo - BUTLER http://getmistyfied.blogspot.com.au Display 20/02/2012 PPA 01/04/12 Prestart: 25/07/12 Settlement: 31/07/2012 Contracts:August Slab 19/11/12 BRICKS 10/11/12 Roof 16/01/13 Re: just starting out - Need help to understand the process 16Mar 13, 2013 1:01 pm Hi, thanks for that info I have pre-approval and i am am going directly through the bank. When the building contract comes out do i sign it immediately or do i submit it to the bank for approval first? Im sure ill get told all this but i like to look like i know what im talking about before it comes up Re: just starting out - Need help to understand the process 17Mar 24, 2013 10:50 am Take the time to read the contract. It'll be subject to finance so doesn't matter whether you sign it first or after the bank has read it. If you've got the time, it's worth seeing if the bank has any advice about it, but if you want to hurry the build up, obviously signing the contract sooner is better. Make sure the plans are EXACTLY how you want them. Make sure you know whether you have colorbond or tiled roof, which design of roof tile, all the windows are where you want them, maybe you want them to the floor or halfway, the windows don't get blocked once you put a wardrobe in, that they open the way you like them to. GOODLIFE - Bravo - BUTLER http://getmistyfied.blogspot.com.au Display 20/02/2012 PPA 01/04/12 Prestart: 25/07/12 Settlement: 31/07/2012 Contracts:August Slab 19/11/12 BRICKS 10/11/12 Roof 16/01/13 Re: just starting out - Need help to understand the process 18Mar 24, 2013 10:12 pm Thanks for that also! Ive emailed them last week to see when the contract might be ready, they originally told me about 6 weeks and it would be ready weeks before the finance was due, but now they are saying 8-10 weeks and im not sure even roughly when it will be ready... So now i need to get the finance on the block extended, the builder said they would attempt sort it out on my behalf but knowing my luck there will be some fatal problem... Re: just starting out - Need help to understand the process 19May 25, 2013 12:20 am Posting to follow your thread.. We're about to sign with Goodlife on Sunday. Our block deposit happens on Monday. Which goodlife design are you building? Our home building & decorating blog - http://www.rocknsoul.com.au/blog That drawing’s in the old units. The sewer tie is 1.44m deep and 4.5m offset from left boundary however the levels were taken ages ago so the surface level will have… 1 3547 The time to heat is purely a function of the distance between the hws and the faucet. 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