Hi Guys ,
Need your advice regarding the process of buying off the plan ( if my understanding of the definition is correct) .
I've spoken with a developer on Saturday .
The block is approx. 600 m2 , however there is a huge gum tree on a left hand side of the block ; the tree is covering approx. 25% of a lot and cannot be removed due to council conservation requirements .
The developer claims that he can build a 25 sqr. double storey house .
After checking the site , I have concerns that it could be an issue to
erect this size house , therefore he will have to reduce the footprint or to
minimise the back yard .
Please your brief explanation regarding the process of buying the land and building a house .
My understanding as per below :
1) Sign a contract to buy a lot.
My concern is that after I purchase the block he will tell me that I cannot fit a 25 sqr. house , so it will be 21 sqr. or the costs might be higher etc
I intend to bring a contract to my solicitor prior to sign it .
2) House construction .
I haven't seen the contractfor the house , however my concern is about the timeframe and penalities if the deadline has been postponed.
I asked him this question, he said that if they unable to meet the final deadline , they will pay a weekly compensation of $250 .
I understand that the payments are made on a progressive scale according to milestones . What would happen if they don't achieve the milestone on time ?
The inclusions list that he's specified is quite impressive , however right now my concern is about his ability to fit the house on this block . The other lots are 470-500m , however the presence of the tree diminishes the idea of a big size block.
This is a small developer , so they don't have a display house. I've asked him to provide one -two references and contact number of his previous projects , he said to me that they usually build investment properties and he can demonstrate the houses without any issue . I don't care about the apperance of his previous jobs ; what is important for me is to speak with people who's used his services . How hectic and difficult the process was etc
To be honest , I am not sure if it will be feasible ...
Please your advice and my appologies for the inconsistent and long explanation .
Finance are OK , no issue at all.
This is PPOR
Kind Regards
gprp
Need your advice regarding the process of buying off the plan ( if my understanding of the definition is correct) .
I've spoken with a developer on Saturday .
The block is approx. 600 m2 , however there is a huge gum tree on a left hand side of the block ; the tree is covering approx. 25% of a lot and cannot be removed due to council conservation requirements .
The developer claims that he can build a 25 sqr. double storey house .
After checking the site , I have concerns that it could be an issue to
erect this size house , therefore he will have to reduce the footprint or to
minimise the back yard .
Please your brief explanation regarding the process of buying the land and building a house .
My understanding as per below :
1) Sign a contract to buy a lot.
My concern is that after I purchase the block he will tell me that I cannot fit a 25 sqr. house , so it will be 21 sqr. or the costs might be higher etc
I intend to bring a contract to my solicitor prior to sign it .
2) House construction .
I haven't seen the contractfor the house , however my concern is about the timeframe and penalities if the deadline has been postponed.
I asked him this question, he said that if they unable to meet the final deadline , they will pay a weekly compensation of $250 .
I understand that the payments are made on a progressive scale according to milestones . What would happen if they don't achieve the milestone on time ?
The inclusions list that he's specified is quite impressive , however right now my concern is about his ability to fit the house on this block . The other lots are 470-500m , however the presence of the tree diminishes the idea of a big size block.
This is a small developer , so they don't have a display house. I've asked him to provide one -two references and contact number of his previous projects , he said to me that they usually build investment properties and he can demonstrate the houses without any issue . I don't care about the apperance of his previous jobs ; what is important for me is to speak with people who's used his services . How hectic and difficult the process was etc
To be honest , I am not sure if it will be feasible ...
Please your advice and my appologies for the inconsistent and long explanation .
Finance are OK , no issue at all.
This is PPOR
Kind Regards
gprp