All Topics / Value Adding / Stages of building costs?

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  • Profile photo of waynel2waynel2
    Member
    @waynel2
    Join Date: 2004
    Post Count: 311
    March 14, 2005 - 2:33 pm

    Hi Guys,

    I’m looking into buying a block and building a new house in the northern suburbs of Perth.

    I’m just doing some number crunching and have heard that you can expect delays ouf up to 12 months before your house is built.

    With this in mind, I wanted to find out how the mortgage repayments work whilst the house is getting built?

    Eg, If I by the block now, obviously I would start paying interest on the block straight away – though when do I start paying for the house?

    Are the payments at different stages of the building?

    If so does any one know what stages are involved and how much you pay at each stage?

    Thanks

    Wayne

    Wayne Leech

    *Below are links to my websites – any feedback, comments would be appreciated:)
    http://www.landsearcher.com.au – List your land for FREE (Private sellers only)
    http://www.homesearcher.com.au – List your property for FREE (Private sellers only)

    Profile photo of RamRam
    Member
    @ram
    Join Date: 2005
    Post Count: 5
    March 14, 2005 - 4:07 pm

    Wayne
    If you have a pre approval from a bank to buy your land and a construction loan to build your new house your bank would settle on the land first. The initial payments would be I.O. When your construction loan starts the breakdown is usually
    10% deposit, 15% slab/footings, 10% frame, 35% lock up, 15% fix and a final 10% final payment. All payments are interest only until the final progress payment then it reverts to a i.e 30 year variable loan Regards Ram

    Profile photo of AUSPROPAUSPROP
    Participant
    @ausprop
    Join Date: 2003
    Post Count: 953
    March 14, 2005 - 5:58 pm

    12 months would be if everything went well (tho you may strike it lucky and do it in less) – allow up to 18 months just in case. the skills and materials shortage will only get worse as well.


    http://www.megainvestments.com.au

    Extensive list of ‘Off The Plan’ property available for sale in Perth.

    John – 0419 198 856

    Profile photo of waynel2waynel2
    Member
    @waynel2
    Join Date: 2004
    Post Count: 311
    March 15, 2005 - 5:36 am

    Thanks for your replies!

    This helps me get by figures alittle more accurate!:)

    Ausprop, can I ask why you think the materials and skill shortage will only get worse? I thought it would get slightly better with not as much activity in the market…?

    Saying this though, I did hear that National Homes just laid 150 slabs – though now they don’t have the materials or employees to complete the houses to 2007!

    Wayne Leech

    *Below are links to my websites – any feedback, comments would be appreciated:)
    http://www.landsearcher.com.au – List your land for FREE (Private sellers only)
    http://www.homesearcher.com.au – List your property for FREE (Private sellers only)

Viewing 4 posts - 1 through 4 (of 4 total)

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