Category: Starting

Protecting Underground Pipes

One of the problems that happen all too often during a new house build is that Sewers and Drains get filled with concrete.

Its normally happens on:

  • A knock down and rebuild project where the sewer connection wasn’t sealed during demolition.
  • A Battle Axe block subdivision where the new home is built close to the pipeline.

During the pouring of the foundations the concrete gets into the pipeline through the unsealed connection, or a cracked pipe, and then flows along the pipe.

Our company then gets brought in to remove the concrete using a hyraulic impact cutter like this.

Don’t think its cheap though . . . . . . It normally takes a team of three plus a high pressure jetting truck so the costs is upwards of $200 an hour, and its not unusual for one job to take 2-3 days.

To understand more issues when purchasing land see: Buying a Block

 

Construction Loans

Guest post by Callum Scott of Scott Finance

Before looking at the difference between a construction loan and a standard mortgage, it is important to realise that the criteria for obtaining a construction loan are pretty much the same as those for a mortgage.

Therefore you need to approach the borrowing process in the same way. The amount you can borrow will depend on your deposit, income, assets, liabilities and savings or investment history.

A finance broker or lender will help you assemble the necessary documents and make the application for the loan.

The important difference between a construction loan and a standard mortgage is that whilst the home is being constructed, your only payments are for the interest being charged on the amount you currently owe at any given time.

Payments start with the purchase of the land, and then the amount you owe would gradually increase as you pay the builder for the completed stages of the build. Usually the interest is charged monthly or fortnightly.

A good guide to  fair stage payments is found in a Victorian Government Act which lay down the following percentages of the full contract price:

    1. Deposit 5%
    2. Base 10%
    3. Frame 15%
    4. Lock Up 35%
    5. Fixing 25%
    6. Completion 20%

See How Much Should Stage Payments Be for more information

Once the loan is fully drawn down, the construction loan is converted to a mortgage. This may still be interest-only if negotiated, or more likely a principal and interest mortgage at the standard variable rate or a fixed rate.

 

For no cost advice about your housing contact: Scott Finance

Garden Photo – Fail

One of the rules of getting your house Ready for Sale is to remove your pets, and hide their baskets food bowls etc.

If you don’t you might find your house advertised on the internet with a photo of your dog ‘leaving a deposit’ like this!

Its amazing how people miss these ‘interesting details’ when they are rushing round taking photos.

This is a real photo used to advertise a house that I found on the very funny American website uglyhousephotos.com

Staging Your Old House

Presentation of your existing house, or staging as its now known, is important to make sure you get the most money for your new house.

Probably the best look is a de-cluttered home. If you remove all the homely touches it can look a bit sterile

Here are some more tips to make sure it looks the best for the photographs, and for Inspection Days.

  • Outside Keep cars out of site, mow lawns, remove weeds, bottle & glasses for an  outdoor setting.
  • Kitchen Remove all fridge magnets,  no dirty or clean dishes in sight, i.e. not like this photo!

  • Bathrooms  Matching bathroom towels, remove toiletries.
  • Bedrooms Beds made neatly with clean linen, Just a light and a clock on bedside tables.
  • Living Rooms Get Fresh flowers and fill the  fruit bowl, remove any bright cushions.
  • Pets Remove pet basket and bowls and make sure the pet is somewhere else.
  • General De-clutter including removing toys and perhaps some of the furniture
  • On The Day Turn on Heating in Winter and air conditioning in Summer. All lights to be on.

If you want professional help there are quite a few people offering to provide staging assistance. A basic service will cost $2-3,000 rising to more than $10,000, which will include loaning different furniture.

 

To find out how builders stage their display homes see this link: Show House Tricks

 

Love the Display Home

BUT CAN YOU AFFORD IT?

When you visit a Builders Display home you will probably be given a price list which quotes the Basic Price for the house you are looking at.

Don’t be fooled!……… The feature you see in the Display Home will add much more to the cost.

The following table provides examples of the value of upgrades added to Display Homes around Melbourne.

Builder

House

Base Price

As Displayed

Percentage Increase

Burbank

Prescott 1900

$152,200

$205,489

35%

Carlisle Homes

Illuka 25

$179,900

$248,895

38%

Dennis Family Homes

Hastings 241

$177,900

$251,400

41%

Hallbury Homes

Vogue 39

$314,900

$484,900

54%

Metricon

Delta 22

$169,200

$253,262

50%

Porter Davies Homes

Montague 21

$161,900

$255,563

58%

Simmons

Villa Vitoria

$294,600

$479,038

63%

All figures as published in the Melbourne Herald Sun 17 August 2013

You can see figures for 2017/18 prices here: Display Home Upgrades

Additional Costs

In addition to the displayed costs you might have to pay extra for:

To get some idea about how the costs can add up follow this link: What Will It Cost.

Also see

 

Different Soil Classification Results

When you look at a new house block its always worth asking the Developer’s Agent what the Soil Classification is ……….. Only don’t take what you are told too seriously!

Usually the developers opinion is going to be that the site is going to be better (lower site costs) than your builder.

To understand why you need to consider the differing situations of the Developer and the Builder.

The Developer

  • May have done 20 or 30 tests over the whole development.
  • Is mostly interested in selling blocks
  • Since the tests were taken has had sewers and drains constructed on the site.
  • Probably done some spreading of fill from roadworks construction and site leveling

The Builder

  • Has had 3 tests done on your block.
  • Knows that even with the three tests the information represents less than 0.01% of the soil under your block.
  • Want to be sure the foundations are strong enough.
  • Want to avoid claims, from you, for foundation movement causing structural cracks.

If I got a soil classification from a Developer I would ask the Builder what extra site costs would be required for that soil, and then budget for at least another $5,000.

 

For lots more information why not get the Guide to Buying a Block only $4 at this link: Buying a Block

Small Strata Developments

A small strata development is a way of retaining an existing house and providing a rear Block. It is an alternative to a Battle Axe Block. This plan shows a typical Small Strata Development.

With this type of development there are 3 Titles as follows:

  • A block title, of reduced size for the original house
  • A block title for the new block shown in red on the plan
  • An area of common title which is jointly owned by the owners of both blocks

So what  are the issues if you are thinking of buying the back block for you new home?

Driveway

  • If the common driveway is completed it may well get damaged during construction.
  • Getting agreement about driveway repair can be difficult.
  • Getting agreement from your neighbour to use the access for during construction can be difficult.
  • Sharing a driveway means that your parking options are limited and can lead to disputes.
  • Looking after the shared driveway is like some of the
    Community Title     issues.

Additional Service Costs

You will be need to bring in some, if not all, of the following service for an extra 20-30m.

  • Power.
  • Phone.
  • Water, could be two services if you want recycled water.
  • Gas, if it is available.
  • Storm water drainage, can be a problem if property drains to road.

The sewer is usually at the back of the block but check before you buy.

Additional Building Costs

I have heard additional building costs of more than $15,000 for these blocks because they are Restricted Sites

 

Lots more information in the anewhouse Guide to Buying a Block for only $4

See Blocks for more information on buying land.

 

Buying a Block

anewhouse GUIDE  – E book

 Aimed at making sure you consider a wide range of issues to ensure you get the right block for your new home!

Posts from this Blog and Much More.

In pdf format so you can read it on your tablet computer.

82 pages packed with advice  including Comprehensive Checklists that can be printed out.

Reduced . . . Now Only $2

 

CLICK HERE for more details

 

Drop Edge Beams

If you want to build your new home on a slope you may need to have the additional cost of needing drop edge beams on the low side of the slabs.

These are a sort of retaining wall to hold the fill under the house slab as shown in the drawing below.

Here is a photo of a typical drop edge beam before the brickwork has been started.

Costs (2013) are in the order of $500-$700/sqm of beam, plus the cost of the fill under the slab.

Say. . . $12,000 to $18,000 for a 20m long house with a 1.5m drop beam so a significant extra!

The photo below shows the same wall after the brickwork has been completed.


If you are building on a slope you may also want to know about Retaining Wall Fairness

Thanks to Grumblebum54 for the photos

Advice – Fail

When I saw this Billboard the other day I had turn round to drive past it again, as I didn’t believe it the first time!

They are making it appear that it’s a big deal that they are selling what are the worst blocks on the estate!

A North Facing Block mean that the house gets very little warming sun during winter, as half the front of the house will probably be garage door.

A typical house will also have lots of East and West facing windows which will really soak up summer sun making the house a real sweatbox. With winter there will be no sun coming in but lots of heat going out through those windows.

It just goes to show that if you want honest advice don’t rely on Real Estate Agents or Land Developers.

 

To find out which way to face is best see Orientation

For more fails and unusual houses go to What the………………….?

 

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