“Cost to Complete” Not Always the Option

NewBuild Plan™ sets out a predetermined payment schedule based on the total contract price. A ‘retention’ is paid upon completion to ensure the home is finished to your satisfaction.

Traditional financial arrangements are calculated on a ‘cost to complete’ basis, which can be unsatisfactory in many cases. You are required to provide progress valuations (at considerable expense) to determine how much it would cost to complete your home.

Building a home has a greater level of risk – manage this risk through good preparation and professional management.

The valuation may not reflect the actual costs incurred by the builder resulting in a miscalculation of costs to complete. The lender may then fund 75-80% of the valuation figure, which may not be enough to pay the balance owed.

Such shortfalls may jeopardise the completion of your home or delay the process as the builder waits to be paid. NewBuild Plan™ manages the progress payments to the builder – not too much, not too little

image10Manage the Cost of Building

Because we help you manage your funds, NewBuild Plan™ is available from as little as 5% deposit.

Building costs of your home can creep upwards, even with a fixed price contract. You may need to make changes or choose upgrades from the original specifications – cost overruns can exceed budgets by up to 5-10% if they are not monitored carefully. Make sure you and your builder keep a running tally of extra costs so you don’t get caught short. NewBuild Plan™ will provide you with advice and guidance on how to stay within your budget.

Can You Afford Progress Mortgage Payments and Rent?

A major benefit of the NewBuild Plan™ is the interest reserve fund. One of the biggest hurdles many face is funding the progress interest costs during construction. Most people rent or pay an existing mortgage while their new home is being built – these additional costs can make the building process prohibitive. With NewBuild Plan™, deferred interest payment dramatically assists in managing your cash flow.

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