Tuesday, March 3, 2009

Naïve, poor research, incompetence of 3rd parties or just bad luck?

Hi All.

What a week it has been.

I don’t mean to sound pessimistic but the hopes of our Dream home the Stanford 24 on lot 888 Henty Park at Pakenham is not looking good.

In saying that I’m still trying to stay optimistic about the situation and many thanks to all on the homeone forum that have given great advice re the situation.

Well where do I begin?
Three factors have been brought to my attention which could very well cause the collapse of building the home.

1. First Home Owners Grant
I have give credit to the big chief (bigred) on bringing this to my attention. The first home owners boost states that:

Taken from the SRO VIC website (http://www.sro.vic.gov.au/sro/SROWebsite.nsf/taxes_firsthome_boost.htm)

New homes being built under a building contract To be eligible to receive the
$14,000 Boost for building a new home, first home buyers must have entered into
a contract to build a home between 14 October 2008 and 30 June 2009 (inclusive).

In addition:

construction must commence
within 26 weeks of the date of the contract

the contract
must specify a completion date for building work within 18 months of the date of
construction commencing or construction must be completed within 18 months of
the construction commencing.

In limited circumstances the Commissioner
may approve an extension to the commencement and completion date where the delay
was outside the control of the parties and could not have been foreseen at the
time of entering into the contract.

This is going to be an issue. The reason being so is that our land does not get titled until August 2009. Porter Davis has set the site start date as October 31st. So unless we hold of on signing the contract which is expected to be ready in 6 weeks then we will be over the 26 weeks and not be eligible for the FHOG.

A condition of the banks approval is that eligibility for the FHOG is a criteria before completely approving the loan.

The only way I can see around this is to ask Porter Davis if we can change the Site Start Date to September which will bring us in line with the 26 weeks. In all honesty I don’t care if they don’t start by then as its beyond my control according to the SRO, so long as it is the earlier start date in my signed contract.

2. Land and Loan Approval Timing.
Our land contract states that we must have full approval for the land by 13/3/09. With the contracts 6 weeks away, guess what? Up sh!t creek. We can apply for a 30 day extension on the approval date, but even that will be tight unless PD get there gear in order. And this is taking into account they can move the site start date to an earlier date.

3. Soil tests and Contract
This is an issue I didn’t think of until a member from homeone forums went through the same situation and told me that it may be an issue if Porter Davis does not do a soil test until the land is titled. This would mean that if they need a soil test to have the complete contract ready, then we would not be able to sign the contract until August and therefore be completely ineligible for the FHOG. This issue is not been confirmed with Porter Davis yet, and am awaiting a reply from them re the above. The block we have put our deposit on was a block that has been verified by PD for fixed site costs so I am hopeful this would not be an issue.

I am still slightly hopeful that we will be able to resolve the issues above, but in the case of it falling through it could have been worse. I could have lost thousands on deposits, or I may have been informed of these issues when it’s too late to pull the plug.

In saying this if this does fall through, and the unfortunate circumstance arises that I will have to pull the plug on our building dream I won’t give up.
I’m also thinking if this is the case, then I will buy an already build home (built in the last 2 years), and we won’t be able to choose the floor plan and customise as much as building, at least we will have a home of our own.

I will keep you all updated with any developments


1 comment:

  1. I've spoken with my builder regarding the soil test concern, and we're just going to pull a submarine move in regards to 'Fixed Costs' on the contract.

    I've also spoken with my builder regarding the build contract, and I'm signing away on the 30th of June.

    Porter Davis will be able to do the same, no doubt. If not, tell them to fuck off, and look at other builders.