Browse Forums Building A New House Re: Metricon and 5% Deposit? - Finance Denied 4Jun 19, 2019 11:31 pm Renman What was the justifcation of the $75k given that there's a contract value in place and the banks knows what you are getting? Quite a poor justification actually. The valuation report was a small two pager that basically just compared it to a few other houses in the area and said our upgrades shouldn't cost this much. They missed a lot of details in our upgrades and even said strange things like we had things that we didn't have (like towel rails as we plan on doing them ourselves). Re: Metricon and 5% Deposit? - Finance Denied 5Jun 20, 2019 6:58 am Chaz that is unfortunate, at a guess I would say the $75K Devaluation is reflective of current climate & economic Statistics coupled with over priced Variations. It wasn't that long ago you wouldn't get a valuation report. You also might consider next time doing your own assessment & valuation report before you choose a builder. Goodluck in getting most of your deposit back after builders costs & expenses are deducted Banks are rejecting a thousand a week australia wide. Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Metricon and 5% Deposit? - Finance Denied 6Jun 20, 2019 7:25 am chaz Hey all, We were supposed to be coming up to our build with Metricon after a year and half wait (waiting on land to title), and the bank has come back to us saying the valuation of the build has come back as 75k less than the contract price. We would need to put in this extra deposit to go ahead, which we can't afford. We're still waiting to hear back from another bank on valuation but if this comes back the same then we won't be able to get the loan to meet the contract. What happens in this situation? We're definitely not going to sit idly by and let a 5% deposit get away from us. We would hope that comes back to us. I do know that Metricons terms say that the contract is subject to unconditional finance. Have you tried a loan broker? As there might be other financial institutions that are willing to value the build better. Re: Metricon and 5% Deposit? - Finance Denied 7Jun 20, 2019 7:33 am StructuralBIMGuy @Chaz that is unfortunate, at a guess I would say the $75K Devaluation is reflective of current climate & economic Statistics coupled with over priced Variations. It wasn't that long ago you wouldn't get a valuation report. You also might consider next time doing your own assessment & valuation report before you choose a builder. Goodluck in getting most of your deposit back after builders costs & expenses are deducted Banks are rejecting a thousand a week australia wide. In this case how would we get a valuation before having the building contract ready? Don't they use this to do the valuation? Also if we were to reconttact would a new contract be reflective of the current markets prices? Re: Metricon and 5% Deposit? - Finance Denied 8Jun 20, 2019 9:35 am chaz In this case how would we get a valuation before having the building contract ready? There are many real estate apps that value Properties, Search for new completed houses in adjacent suburbs and compare them with your House and land Package prices chaz Don't they use this to do the valuation? Banks Use valuation experts...Unfortunately, they don't see value in upgrade, Giveaways and Builders Slogans/Gimmicks chaz Also if we were to reconttact would a new contract be reflective of the current markets prices? Absolutely, markets are dropping (like lead balloons) prices are not, Builders are retrenching workers, But they will offer gimmicks to sign you up and make you wait...Like $30K in Giveaways but Valuers aren't taken in.... valuers would prefer to see the builders price drop $30K OT The Last person they sack is a good salesman (if he doesn't sell he doesn't survive), unfortunately everyone else is expendable. Those of us that have been in the industry long enough have seen boom-bust cycles I would see it as a blessing, it's a pity though you may have lost a lot of money Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Metricon and 5% Deposit? - Finance Denied 9Jun 20, 2019 9:44 am StructuralBIMGuy Banks Use valuation experts...Unfortunately, they don't see value in upgrade, Giveaways and Builders Slogans/Gimmicks If this is the case what's the point in going through a new build process with these major builders? We've chosen Metricon because obviously don't know about building a house and we've chosen upgrades that we can afford. If banks don't see the value in upgrades, whats the point? Should we all just buy the base house then and do renovations ourselves later? That seems a bit ridiculous. Re: Metricon and 5% Deposit? - Finance Denied 10Jun 20, 2019 9:50 am You have answered your own question Most have realised that new houses are overpriced and discounted real Estate offers better value and potential for growth That's why renovations are going crazy, trades aren't dropping rates, etc,etc You need to pick the markets. hth Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Metricon and 5% Deposit? - Finance Denied 11Jun 20, 2019 10:06 am StructuralBIMGuy You have answered your own question Most have realised that new houses are overpriced and discounted real Estate offers better value and potential for growth That's why renovations are going crazy, trades aren't dropping rates, etc,etc You need to pick the markets. hth Is there value in recontracting to a base model house through them and then doing all our own renovations after the build? Our land value is still valued well. Re: Metricon and 5% Deposit? - Finance Denied 12Jun 20, 2019 10:31 am chaz Is there value in recontracting to a base model house through them and then doing all our own renovations after the build? \ You need to compare the base model with other builders base models, Chances are the base Model may also be over priced? I did discuss this on a previous post and referenced my analysis app on google+. Unfortunately, google + has shut down and gone commercial.. I was warned off commercialising it. If you require a "how to" leave a PM..LOL hope you are good with maths, (Search) python and spreadsheets chaz Our land value is still valued well. Glad to hear you bought the land at the right price. Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs you were just referred to get advice from your solicitor. This is a legal matter. Separately, why would you use a buyers agent for a house and land package? 3 57820 In NSW the maximum deposit for building work is 5% until the builder provides HBCF insurance 1 4831 Hi, First of all, thank you to this community for sharing your thoughts and opinions. We are in early days of our pre-contract stage for Metricon Doulton and we are… 0 10759 |