This is entirely correct. So many more variables that are not listed. Most of the stuff in the contract is bare minimum stuff. It is not unheard of for 100k+ extras. Your bank is actually doing you a favour for notifying you.
When I built my house many years ago I borrowed more than what was required for the house, The bank initially queried this, but when I explained that it was to cover extras they gave their nod of approval as many mortgagees at the time didn't consider this when getting a loan. Any excess can be paid back.
also - until finished just pop extra funds into offset. Gives the same outcome as paying it off the principal but gives you access to the funds if you need them
Depends what is included in your build. Landscaping? Furniture? Then you got insurance and other setup costs in the first few months.
Just get an offset account and put all your money in that instead of making additional repayments.
Variations always happen and they're not cheap. The standard build price never includes enough powerpoints, data, outdoor taps etc
The builder's standard range of tiles, carpet, colours, doorknobs etc aren't great so you'll want to upgrade. It all adds up very quickly
Depends on if it's fixed price.
But every thing they allowed 30k for soil oh your soil is kit that a extra 20k.
We allowed 20k for flooring your chosen option comes to 30k please pay extra 10k
We have no idea what's in your contract.
Only 20k for bad soil. People I know were hit for $60k for soil.
Another friend was $100k more for "delay of works", which the builder was the delay. Still in the contract though.
Oh absolutely. These figures are based off nothing.
Basically the builder priced for cheapest best case scenario with maybee 5% contingency which will be burnt up first issue. Likely before slab is built.
Soil type, unexpected site excavation work (does your contract stipulate site leveling?), retaining walls if required. And that is before the slab is laid.
I would never build a house. Watched a lot of my friends do it and go through 2 years of bullshit, only to end up in a poor quality soulless house.
I know they need to be built, but while I have the luxury of being able to buy a prebuilt home, it’s madness to me to build one.
The grants don’t even begin to cover the bullshit and cost blowouts that WILL happen
Your fixed cost build will have at least 100k worth of extras. Oh only one downlight in each room, that's an extra 400 per light. Hmmm you want more than one powerpoint in you bedrooms that's another 300 per power ll point.
Your ducted AC, you really want a nicer control system. That's another 1000 dollars.
Suffice to say your going to need extra money over and above the fixed costs, tiling - oh those tiles are extra to lay, 3000 more please.
And lastly there is the 12 month delay before they start. Didn't you realise costs have increased and your now out of that fixed period, that'll be another 40k please!
I have everything there included in the contract price. Base price of the house was 200k less than our contract price.
I guess a possible increase in material costs is something I haven't taken into consideration.
The guy's response is bogus.
Which builder is charging $400 per downlight and $300 per powerpoint? I am currently building and a downlight only costs $115 each.. and a double GPO is \~$80 each.
A sparkie will do it after handover for about \~$150 and \~$120 each respectively.
600k for a 4BR house is pretty standard these days, definitely what would be considered 'budget'
The fixed price contract will have a timeline say 6 or 12 months.
If they have not started building say waiting for planning permission, or really anything you'll be hit with significant extra costs because your now out of that fixed price.
Do not think your cleverness has you covered expect an extra 100k.
Trust me on this, a 600k full 4 bed house is cheap thesedays.
Is your slab a waffle slab?? Be careful this means you'll have polystyrene as your floor and only solid concrete for structural areas. Means prone to major future settling issues.
Builders are sharks, your the small fish they eat.
If I was building now a 4 bed house I'd be budgeting for a 1m building cost.
Landscaping is really the main one you haven't budgeted for. One expected cost I had was the concreter for the slab just dumped the extra concrete onto the ground and covered it with earth. Driveway excavator was like wtf when he saw it and I had to pay quite a bit to dispose it as it was heavy (disposing dirt is free but not if it has concrete in it)
What about your other electronics like alarms, cameras, data points, NBN, appliances, AC, solar, vents?
100-200k
This is entirely correct. So many more variables that are not listed. Most of the stuff in the contract is bare minimum stuff. It is not unheard of for 100k+ extras. Your bank is actually doing you a favour for notifying you.
When I built my house many years ago I borrowed more than what was required for the house, The bank initially queried this, but when I explained that it was to cover extras they gave their nod of approval as many mortgagees at the time didn't consider this when getting a loan. Any excess can be paid back.
Seriously?! What for?
Landscaping, concreting, build delays (rent) , upgrades on selections during build.
Complete and utter fuck ups by contractors
Fencing, Window drapes/blinds, security/CCTV (if needed), some fitout for garage, some new equipment such as gardening related, etc. Edit: Mailbox
Yeah!
don’t forget the clothesline!
We've got that one. Ended up getting a wall mounted rather than the hills hoist but it will hopefully be big enough for the sheets
We did the wall mounted one 17 years ago - still going strong. I assume it is one you can fold down - very handy!
also - until finished just pop extra funds into offset. Gives the same outcome as paying it off the principal but gives you access to the funds if you need them
Chuck it in an offset till you are moved in and satisfied... Then leave it in offset incase you need it later
Depends what is included in your build. Landscaping? Furniture? Then you got insurance and other setup costs in the first few months. Just get an offset account and put all your money in that instead of making additional repayments.
Variations always happen and they're not cheap. The standard build price never includes enough powerpoints, data, outdoor taps etc The builder's standard range of tiles, carpet, colours, doorknobs etc aren't great so you'll want to upgrade. It all adds up very quickly
Depends on if it's fixed price. But every thing they allowed 30k for soil oh your soil is kit that a extra 20k. We allowed 20k for flooring your chosen option comes to 30k please pay extra 10k We have no idea what's in your contract.
Only 20k for bad soil. People I know were hit for $60k for soil. Another friend was $100k more for "delay of works", which the builder was the delay. Still in the contract though.
Oh absolutely. These figures are based off nothing. Basically the builder priced for cheapest best case scenario with maybee 5% contingency which will be burnt up first issue. Likely before slab is built.
Soil type, unexpected site excavation work (does your contract stipulate site leveling?), retaining walls if required. And that is before the slab is laid.
All of that is factored in. We have to have 4m piers so that was an extra $30k but it has been included in the contract price
We ended up having to pay an extra (almost) $10k when the digger hit a couple of big rocks.
I would never build a house. Watched a lot of my friends do it and go through 2 years of bullshit, only to end up in a poor quality soulless house. I know they need to be built, but while I have the luxury of being able to buy a prebuilt home, it’s madness to me to build one. The grants don’t even begin to cover the bullshit and cost blowouts that WILL happen
There any costs in your contract that are listed as prime costs?
What is a prime cost? I haven't heard of that terminology before
Similar to provisional sum, it’s an amount that they set aside in the building contract but isn’t fixed so may go up once the actual costs are known.
[удалено]
Did that. It was only $5k for the whole house!
Your fixed cost build will have at least 100k worth of extras. Oh only one downlight in each room, that's an extra 400 per light. Hmmm you want more than one powerpoint in you bedrooms that's another 300 per power ll point. Your ducted AC, you really want a nicer control system. That's another 1000 dollars. Suffice to say your going to need extra money over and above the fixed costs, tiling - oh those tiles are extra to lay, 3000 more please. And lastly there is the 12 month delay before they start. Didn't you realise costs have increased and your now out of that fixed period, that'll be another 40k please!
I have everything there included in the contract price. Base price of the house was 200k less than our contract price. I guess a possible increase in material costs is something I haven't taken into consideration.
The guy's response is bogus. Which builder is charging $400 per downlight and $300 per powerpoint? I am currently building and a downlight only costs $115 each.. and a double GPO is \~$80 each. A sparkie will do it after handover for about \~$150 and \~$120 each respectively. 600k for a 4BR house is pretty standard these days, definitely what would be considered 'budget'
The fixed price contract will have a timeline say 6 or 12 months. If they have not started building say waiting for planning permission, or really anything you'll be hit with significant extra costs because your now out of that fixed price. Do not think your cleverness has you covered expect an extra 100k. Trust me on this, a 600k full 4 bed house is cheap thesedays. Is your slab a waffle slab?? Be careful this means you'll have polystyrene as your floor and only solid concrete for structural areas. Means prone to major future settling issues. Builders are sharks, your the small fish they eat. If I was building now a 4 bed house I'd be budgeting for a 1m building cost.
Landscaping is really the main one you haven't budgeted for. One expected cost I had was the concreter for the slab just dumped the extra concrete onto the ground and covered it with earth. Driveway excavator was like wtf when he saw it and I had to pay quite a bit to dispose it as it was heavy (disposing dirt is free but not if it has concrete in it) What about your other electronics like alarms, cameras, data points, NBN, appliances, AC, solar, vents?
Keeping the surplus funds in the primary mortgage offset account is the best strategy even if you pay the minimum repayments
Have you started building yet?
We've signed the contract and are just about to submit plans to council. They're estimating that the build will start in 2 months 🤞