To the uninitiated Investor or Home Owner looking to build a new home, the marketing material provided by some builders might look pretty enticing but when House & land prices and Building prices seem too good to be true then the internal alarm bells should start ringing!
Beware of the dangerous small print! What appears to be great value or even a bargain can be fraught with hidden costs.
Have you ever seen a completed house where the occupants have moved in yet it doesn’t quite appear complete?
I’m guessing the turf, landscaping and even the driveway were not in the original quote, and dismissed in – you guessed it – the small print.
Lets start from the initial glossy brochure. Does the too good to be true quote include site works? If not add up to $40,000 if something hard like a big rock is struck or the land is sloped.
Driveways seem to be optional too in a lot of quotes?! we don’t understand this, what’s the point of a dream double garage that can only be accessed by a 4 x 4?
The list goes on! Light fittings, blinds, floors finishes, and don’t think that the house they showcase is their standard fare, no this I normally fully optioned and costs up to 30% more to construct.
The point is that if you enter into a building contract that is not a turnkey contract with No additional costs, you are exposing yourself to nasty surprises and potentially a lot of costs that the bank probably wont want to fund at that stage.
A better & safer way to build is to ensure your Turnkey contract has all the upgrades and all the important elements that you or your tenants will need to move in
We can then also ensure the bank will finance it all so that when the builder is finished you or your tenants can move straight in. This way there is no surprise and your rental income can start coming in without delay.
It is imprtant to stress that this does not only apply to investment properties! If you are building to move in yourself and you are inexperienced in the building game or od not have any surplus to fall back on to finishe the property a turnkey contract is definitely a great idea as well – this rings particularly true for First home Buyers.
So if you want your building experience to be one to remember and not to loathe have a chat to us. We’ll be happy to help and guide you the best way to seek the finance, a builder and a contract