Browse Forums Building A New House Re: Porter Davis Summer Promotions- Is it too good to be tru 3Feb 03, 2019 8:54 am Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Porter Davis Summer Promotions- Is it too good to be tru 6Feb 17, 2019 10:51 am mazum Hello all, I am building my house in Melbourne. I am still in the phase of finalising a builder. Porter Davis is giving $40K to $60K on it's base prices. However, they don't want to mention it in the quote. I am just wondering, if it is too good to be true and is there a loophole. Other mass builders are comparatively giving away nothing. What could be the reason? Should I be worried or go ahead with deposit with Porter Davis? https://www.porterdavis.com.au/special- ... ummer-sale Hi Mazum We also got quote and are confused whether to go further or not.. have you done deposit? Re: Porter Davis Summer Promotions- Is it too good to be tru 8Mar 20, 2019 10:30 am Yes I did. However, they are overbooked and taking lot of time to respond and schedule Tender appointment. I got 2 surprises related to site cost. Initially they fixed it to $13,500, then they increased it to $14,500 and now an additional $5000 for enhancing the windows as the wind rating is N3. Re: Porter Davis Summer Promotions- Is it too good to be tru 9Mar 26, 2019 9:05 pm I am also confused with this Ad and asked consultant, he said that I will get *offer money in post contract variation. For ex: if I choose a lifestyle house with 350k base price and with 70k upgrades = 420k, I need to get loan for 420k. At the end they will adjust offer money. Is my understanding correct? Re: Porter Davis Summer Promotions- Is it too good to be tru 11Mar 27, 2019 1:39 pm The only down side which I think is that PD will get most of the payment before the last stage completion as the stage instalment will be calculated on the bigger amount than the actual lesser amount. Re: Porter Davis Summer Promotions- Is it too good to be tru 12Mar 27, 2019 2:24 pm luxbuild Exactly, its not a guaranteed discount (there are conditions) so you need to be capable of paying the full price. What conditions? Could you please point me? Re: Porter Davis Summer Promotions- Is it too good to be tru 13Mar 27, 2019 2:27 pm mazum The only down side which I think is that PD will get most of the payment before the last stage completion as the stage instalment will be calculated on the bigger amount than the actual lesser amount. Does it mean PD won’t give discounted money back? Re: Porter Davis Summer Promotions- Is it too good to be tru 15Mar 27, 2019 10:44 pm Sidhartha mazum The only down side which I think is that PD will get most of the payment before the last stage completion as the stage instalment will be calculated on the bigger amount than the actual lesser amount. Does it mean PD won’t give discounted money back? They will, but understand the staged development model. Let me explain it with an example. Assume the contract price is $450,000 and we are getting $50,000 discount. So, essentially we are paying only $400,000. Stage 0: Contract Finalising Stage: We need to pay 5% of the contract amount. If the contract value was $400,000, then at this stage we should pay $20,000. But, the contract price is $450,000, then we need to pay $22,500. Extra payment is $2,500. Stage 1: Base Stage: We need to pay 20% of the contract amount. If the contract value was $400,000, then at this stage we should pay $80,000. But, the contract price is $450,000, then we need to pay $90,000. Extra payment is $10,000. Stage 2: Frame Stage: We need to pay 25% of the contract amount. If the contract value was $400,000, then at this stage we should pay $100,000. But, the contract price is $450,000, then we need to pay $112,500. Extra payment is $12,500. Stage 3: Lock-up Stage: We need to pay 20% of the contract amount. If the contract value was $400,000, then at this stage we should pay $80,000. But, the contract price is $450,000, then we need to pay $90,000. Extra payment is $10,000. Stage 4: Fixing Stage: We need to pay 20% of the contract amount. If the contract value was $400,000, then at this stage we should pay $80,000. But, the contract price is $450,000, then we need to pay $90,000. Extra payment is $10,000. Stage 5: Completion Stage: We need to pay 10% of the contract amount. If the contract value was $400,000, then at this stage we should pay $40,000. But, the contract price is $450,000, then we need to pay $45,000. But, now they will add the discount of $50,000. In actual we'll get $5,000 as refund. So, if we add all the payments we made till stage 4: $22,500 + $90,000 + $112,500 + $90,000 + $90,000 SUB-TOTAL = $405,000 Stage 5 Refund = -$5000 TOTAL = $400,000 So, actually there is no Stage 5 payment. We have no leverage at the end. PD has no financial interest to finish our Stage 5 soon. Check with anyone who built the house, Completion stage is always the most time consuming phase. In this case, PD has no motivation to finish it, except the penalty clause which will kick in after ~10 Months (I guess). Hope this clarifies. Re: Porter Davis Summer Promotions- Is it too good to be tru 16Mar 27, 2019 11:00 pm I can point out 2 major points in the TnC of the offer (with my limited legal understanding): 1. "To be eligible for this sale offer your land must title within 400 days of the date of your initial deposit." - Land should be titled within 400 days. 2. "Client must meet all milestone appointments set by Porter Davis to ensure site start date is met. (Refer to Procedure of Purchase Document). Any factors causing delays to the nominated site start date that are outside of the builders control, may result in the voiding of this offer." - All the staged payments are made timely. So, financial institution should not delay payments being made to PD. Rest looks alright to me. Re: Porter Davis Summer Promotions- Is it too good to be tru 18Mar 28, 2019 10:24 am mazum Sidhartha mazum The only down side which I think is that PD will get most of the payment before the last stage completion as the stage instalment will be calculated on the bigger amount than the actual lesser amount. Does it mean PD won’t give discounted money back? They will, but understand the staged development model. Let me explain it with an example. Assume the contract price is $450,000 and we are getting $50,000 discount. So, essentially we are paying only $400,000. Stage 0: Contract Finalising Stage: We need to pay 5% of the contract amount. If the contract value was $400,000, then at this stage we should pay $20,000. But, the contract price is $450,000, then we need to pay $22,500. Extra payment is $2,500. Stage 1: Base Stage: We need to pay 10% of the contract amount. If the contract value was $400,000, then at this stage we should pay $40,000. But, the contract price is $450,000, then we need to pay $45,000. Extra payment is $5,000. Stage 2: Frame Stage: We need to pay 15% of the contract amount. If the contract value was $400,000, then at this stage we should pay $60,000. But, the contract price is $450,000, then we need to pay $67,500. Extra payment is $7,500. Stage 3: Lock-up Stage: We need to pay 35% of the contract amount. If the contract value was $400,000, then at this stage we should pay $140,000. But, the contract price is $450,000, then we need to pay $157,500. Extra payment is $17,500. Stage 4: Fixing Stage: We need to pay 25% of the contract amount. If the contract value was $400,000, then at this stage we should pay $100,000. But, the contract price is $450,000, then we need to pay $112,500. Extra payment is $12,500. Stage 5: Completion Stage: We need to pay 10% of the contract amount. If the contract value was $400,000, then at this stage we should pay $40,000. But, the contract price is $450,000, then we need to pay $45,000. But, now they will add the discount of $50,000. In actual we'll get $5,000 as refund. So, if we add all the payments we made till stage 4: $22,500 + $45,000 + $67,500 + $157,500 + $112,500 SUB-TOTAL = $405,000 Stage 5 Refund = -$5000 TOTAL = $400,000 So, actually there is no Stage 5 payment. We have no leverage at the end. PD has no financial interest to finish our Stage 5 soon. Check with anyone who built the house, Completion stage is always the most time consuming phase. In this case, PD has no motivation to finish it, except the penalty clause which will kick in after ~10 Months (I guess). Hope this clarifies. Thanks Mazum for clarifying. Have you signed with PD? what plan are you building? Wow that is terrible about the insurance! I guess ideally proof of insurance should be provided prior to first deposit but I'd imagine they would refuse to be out of… 17 14247 There isn't any need to. As I wrote previously, there isn't a set term, there is just commencement based on earlier of contract signing or building permit issue and… 24 13408 Three options 1 Ask the liquidator 2 Find another PD customer and ask the source of their report 3 Pay for new report 3 6508 |