Browse Forums Home Finance 1 Apr 07, 2015 11:39 am Just wondering if it is just expected by banks that client will go over budget? Seems everyone I have spoken to has gone over their initial budget.. most times by around 10K, and from what I have seen from the major builders this is just a given thing. Go in, pick your design, get a quote that is suppose to include the things you want. Agree to this price then all of a sudden you have extra costs for upgrades from one colour to another, upgrades for a extra light or more power points. I think it must be near impossible to know what you need from the bank until the very last minute, which must make it hard for banks as well as the purchaser. Cheers, Paul (& Lisa) Parkhill 36 by ClarendonHomes in Coomera Retreat H1 Build Thread And Blog Building Blogs List - Go Ahead And Add Yours!! Re: Does Everyone go Over Budget?? 2Apr 07, 2015 11:50 am Hi Paul & Lisa, Yes it's very difficult and yes almost everyone spends money in upgrades. My advice is ask the builder what the typical increase is and ask them to include a provisional allowance for this in the quote / tender and in contract - if you don't spend it it can be varied out post contract but almost impossible to increase once a valuation is done. I've written about it here if that helps: http://homeloancomparison.com.au/gettin ... -building/ The other thing is to be very clear about what is fixed in your fixed price contract - I've heard of a builder who advertises heavily they're fixed price site costs - but not if it requires piering or anything else. Just a little bit unclear if you don't know what to look for. Best of luck with the build! Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Does Everyone go Over Budget?? 3Apr 07, 2015 12:01 pm Thanks heaps Rebecca. We have approval from the bank for our land and also have a pre-approved amount. this amount is probably 10 to 20K under what I expect our house contract to come in at. Just not too sure how the bank is going to handle that lol. I have spoken to another Lender who has informed me over the phone that they would lend us well above what our pre-approved amount is but want to stay where we are if I can. Cheers, Paul (& Lisa) Parkhill 36 by ClarendonHomes in Coomera Retreat H1 Build Thread And Blog Building Blogs List - Go Ahead And Add Yours!! Re: Does Everyone go Over Budget?? 4Apr 07, 2015 2:22 pm We were pretty close to our budget as the main upgrade being limited to extra power points. This link gives an ide of our spend http://www.anewhouse.com.au/2012/01/what-will-it-cost/ The Harder You Try - the Luckier You Get ! Web site http://www.anewhouse.com.au Informative, Amusing, and Opinionated Blog - Over 600 posts on all aspects of building a new house. Re: Does Everyone go Over Budget?? 5Apr 13, 2015 5:11 pm Funnily enough we came in under budget, only by about $500 but still under. It was on account of the builder over estimating what was required like they estimated we'd need an H1 slab but we ended up only needing an M class slab. Paddington 29 @ Blue Horizon Estate (Lot 105, Wattleridge Crescent, North Kellyville) Our Build Progress Blog: http://light487.wordpress.com/ Coming back to your old stomping grounds, huh? Renovations on a budget can be quite the journey. It's like giving your house a new lease on life. The twist of not knowing… 1 4056 Hi everyone, Looking for some advise. We are about to build an above ground pool in our backyard. There is a private sewer line running under the pool at 1.6m… 0 12948 Much a do about nothing. You can see the fall heading to the actual drains. Stormwater ingress will be minimal and it's far better to have the top sitting flush rather… 12 6795 |