Another kick in the guts.......
Westpac have come back with an evaluation on our Kurmond Homes house being $30,000 less. This is another kick in the guts and strange seeing that to build similar homes from the likes of Eden Brea, Zac Homes or Metricon we would be paying 100k for the same style and size home.
With all the maths worked out this means we need to find another $16k to $20k now to build our home, before our grant runs out in 4-5 months. If you've read all my blog you would know the debacle with the land we had to use some of our own money for the construction deposit to get the land, roughly $25k. So if the bank/mortgage insurer evaluators didn't screw us in the first place we would be fine. But thanks again to the evaluators where now going to jump through some magic hoops again to get our home built. Taking the house down by 30k wont help either as the value from the bank will come down. We would have to drop $100k to have no issues which means going for a much smaller home, not something where willing to do for a difference of $16k. Keeping in mind we can afford the repayments easily and the bank was happy to lend the full amount until the evaluation came back.
After all this keep in mind we've already paid so much out of our savings. For the house and land so far we have paid out $60,000 of our savings, and we have about $30,000 left for our construction. So by the end of it if we find this $16,000 we would have paid out $106,000 of our own money up front.It's so crazy I should have not paid LMI at all once it's all done.
The bank manager (Aloka) is arguing our case because of everything we've been through and is escalating and trying to get us a better deal. We're expecting to hear something over the next few days. Oh well, off to figure out how we find 16k to 20k now in case this doesn't work. Next stop first though will be to another bank.
Hi I'm building with Eden Brae at Jordan Springs Lot 1003 we went with Commonwealth Bank St Marys (Debbie Nusco)Phone 91202601 she's awesome really know's what she's talking about
ReplyDeleteRegards Isabel
OMG Luke that's crazy. You shouldn't have to go through all this. They really screwed up so they better fix it for you. I hope everything will be ok for you guys, try to stay positive!
ReplyDeleteHi, we too am building with Kurmond and as a first time builder I have been following your blog to see how your progress has been.
ReplyDeleteWe went through some finance issues, for different reasons though, but actually ended up going through a broker Peter from Kurmond recommended. We had success with him and we have gone with NAB after about 16 years with Commbank. Speak to Peter to get Aaron's details. He's in Bankstown but will come to you if you need. Being a broker he can try all the banks on your behalf and get you the best rate. There are no fees to pay, the bank pays his fees not you. We ended up with a great rate, much cheaper than any of the other major banks. Good luck
Mate give me a call... I am the lending mgr at BOQ Penrith... I will do you a valuation for FREE and if I can get a higher number I am happy to help you out... I use a local valuer NOT one from the CITY... Drew 0427998111
ReplyDeleteThanks guys - I'm given her to tomorrow otherwise I'll start the other bank process. Drew - will call you to discuss for sure, that would be great. I think the city guys have no idea what's so ever. I will look into the others suggestions too.
ReplyDeleteI need to stop bending over forking out money to reach the bank's requirements, instead I need to find a bank that reaches mine.
Just to add - I've been waiting 3 weeks just for this decision, I'm over that too.
ReplyDeleteNo problem... At least if I order a valuation for you you know where you are at without jumping through the hoops for an approval that with a major bank can take weeks.
ReplyDeleteFeel free to call me anytime so we can get my valuer on site and give us a figure.
I know Peter @ Kurmond and have done at least 10+ construction loans for their customers.
Also whatever happens... make sure she doesnt submit the valuation to LMI. If she does and then another lender submits a higher one LMI will still use the lower one!
ReplyDeleteThanks for that important tip mate. Yeh the valuation is only for the construction so it's good if you have worked with Kurmond Homes then. Our house was also evaluated $25k less but we paid that difference out of our savings.
ReplyDeleteWhat a bugger mate! I hope you have some luck soon! Just wondering what you meant by "Before our grant runs out in 4-5months" mate? Do you mean the Gov stamp duty concession?
ReplyDeleteCheers,
Ian
No - the HAF grant for Jordan Springs. First 250 lots bought get $22,600, but I was told by Delfin you had 6 months to get it. To get it you need to submit a signed building contract.
ReplyDeleteSpoke to Westpac this morning, they're onto it and I've been told I'll have my answer by 2pm, if it's no good I'll be ringing Drew. I told them what Drew mentioned and they're worried now.
ReplyDeletehttp://www.jordansprings.com.au/ArticleDocuments/1630/HAF_FactSheet.pdf.aspx
ReplyDeleteHi Luke I have been reading your blog it's actually 18 months from purchase date for the HAF boost and I have a fact sheet from Nancy. We around the corner from you 1179. We are hoping to start building in the next few weeks.
ReplyDeleteHi Luke,
ReplyDeleteFor the $22,600 we needed three things...
1. Signed Stat Dec
2. Sustainability check list from Kurmond Homes
3. Signed building contract from Kurmond Homes
When you have these 3 things, you submit them to Delfin.
Just to let you know we asked for the signed building contract before we even paid our deposit on the house and they were willing to do it so we already received the HAF grant when we settled on the land. I would suggest if you want the signed building contract and you are happy to sign it before you get the loan (that’s what we did) speak to Kurmond Homes. We may be telling you something you already know however this information might help you.
Regards, Ursula
Yeh I think for some reason I was listening to the wife to much, you're right 18 months from land settlement.
ReplyDeleteDeon - aware we could do that, I just don't like signing without funds being 100% ok, delays my build obviously and the process but I just want to make sure.
Westpac came back and valued the house correctly today. Looks like it's all going to be ok. I told them I was going to take ALL my business with me and they had a change of heart it seems.
Tile appointment tomorrow.
Sorry Ursula....
ReplyDeleteGlad you got it sorted out..!!!
ReplyDeleteHave fun tomorrow choosing your tiles :))
good news mate.... !! let the progress begin
ReplyDeleteHow does that work? I am feeling Kurmond are working out about $30,000 more than others like eden brae and wisdom,what is your final tender for the strand 39 coming in at? $340,000 ish?
ReplyDelete