Browse Forums Home Finance 1 Jun 22, 2014 9:38 am Hi, while I'm waiting for my land to settle, I've engaged a building company to start custom designing my house. I'm just wondering, if i keep the receipts, can the fees that I'm being charged for design (about 8% of the total project cost, a substantial amount) be used as part of my deposit for a construction loan? In the age of project homes, I'm interested to know if banks still consider custom design fees / architect fees as a crucial part of the build. Thanks for your help. Re: Architect/design fees and deposit 2Jun 22, 2014 9:45 am As an aside- can I ask why you are going down this way. Do you have specific requirements that can't be worked into existing designs ? 8% ($20-30k) is quite a bit. Re: Architect/design fees and deposit 3Jun 22, 2014 9:51 am Mainly because I've been unhappy with most of the 'off the plan' houses I've looked at, I actually think 8% is pretty cheap for architectural design and also includes architectural supervision of the build. Also, we're designing a solar passive home, something most project builders won't touch. Any idea about the deposit question? Re: Architect/design fees and deposit 4Jun 22, 2014 9:56 am Scodan Mainly because I've been unhappy with most of the 'off the plan' houses I've looked at, I actually think 8% is pretty cheap for architectural design and also includes architectural supervision of the build. Also, we're designing a solar passive home, something most project builders won't touch. Any idea about the deposit question? Sorry no - but surely a lender could answer that - almost over the phone (?). Didn't realise this was considered "cheap" ... One idea - the building company may be able to work something out .. they must have done this thing before. Maybe just ask them. If they are building the house - surely the overall price is the key ? But - as I said - I don't know, so can't help - sorry. Re: Architect/design fees and deposit 5Jul 14, 2014 12:29 am It really depends your agreement with your builder and how your contract reads out. Some custom builder will count in fees paid for concept and planning stage towards the final construction contract. I am not too sure how it will work out if you pay for your design and then have someone else for construction. Most likely your bank wouldn't count your design fee as part of the construction loan. Just a side question, your 8% included all the engineering plans and council planning etc? or just concept design? Re: Architect/design fees and deposit 6Jul 14, 2014 10:19 am Hi snowing, thanks for the reply. I'll have to follow up with the company to work out how they treat the design costs. The 8% Is the whole lot, from concept right through to final detailed plans and final costings and contract (if we choose to build with them) Re: Architect/design fees and deposit 7Jul 15, 2014 11:09 pm Our plans became absorbed (deducted) from the construction cost. I think we were only left $2000 out of pocket for the plans. Is it just a report written to give to the bank initially and it is based on what and how your payments are made up for, or is it a full service where they go out and… 2 5599 0 19628 Your build is relatively simple, I believe your job can be easily done by a good building designer, you really do not need to pay for the architect. Remember, architect's… 3 10986 |