Prime Costs and Provisional Sums
Prime Cost (PC) items and provisional sums (PS) are two items in a standard building contract which cause great confusion among homebuyers. Most building contracts are called “fixed price contracts”, but the final contract sum can vary due to fluctuations in PC and PS items. A PC item is an amount of money included in […]
Home Finishes
Home finishes When you build or renovate, the finishing touches are the ones that make the house into a home, the personal choices made of the furniture, decorative pieces, the wall colours and floor finishes can make a stark space into a welcoming cosy room or a modern energising area. The dilemma is that there […]
Investment Properties and Tax
When purchasing an investment property, the choice of ownership structure is important to ensure you minimise the effects of taxation. Available structures include Self Managed Superannuation Funds (SMSFs), family or unit trusts and companies, as well as holding the property individually or in joint names. When a rental property is purchased in your own name […]
Buying a Display Home
Investment in a builder’s display home may be a sound decision depending on your circumstances. Many builders sell and rent back their display homes to recover some of the capital construction costs. Usually a display home will have a limited life until a new development area is built out, so the lease back option can […]
Charging for Quotes: Builders and Subcontractors
Charging for quotations is not a common building industry practice. But builders can pick and choose their jobs, and charge for quotes and in order to discourage “check pricing” by some consumers. A problem can arise when some financial institutions require three quotations before approving a loan amount. Many builders particularly in regional areas are […]
Construction Costs
Construction costs have risen strongly in recent years and it is important that your building is accurately valued at replacement cost for insurance purposes. If you have not reviewed the “sum insured” on your home recently, then you should do so. To give you a general guide as to recent trends in building costs, you can […]
Deposits for Plans
Under a Preparation of Plans Agreement or a Preliminary Work contract homebuyers sometimes pay a small deposit on signing these contracts, which does not commit either party to build the home. The agreement covers the builder’s costs of plans being drawn up, application fees, and the like. Usually if the contract goes ahead, any deposit […]
Earthworks
Risk of Owner Earthworks Some home owners take on the task of organizing the earthworks and their certification themselves, rather than the builder charging for the responsibility. The aim of this is often to reduce building costs, removing these works from the contract with the builder. This in theory sounds fine, until you […]
First Home Buyers & Incentives
There is a lot of assistance available to first home buyers from Governments. It is worth spending some time to carefully investigate the rebates and assistance available to you. First Home Owner Grant The WA Government’s First Home Owner Grant currently offers $10,000 to first home owners who purchase or build a new home, the […]
Financing a Renovation
The first thing to consider when you decide to renovate is exactly how you want to enhance your home. It seems obvious, but making sure you have a clearly defined vision from the start will minimise the risk of getting carried away and allow you to stick to a budget. Once you decide on what […]