Post Contract Variation (PCV) 002, 003 and 004

Going back to our issue with the articulation zone setback, we had decided to keep the balcony and reduce the Meals area by 530mm.  This reduction gave a a credit.  Since we are having the an extra credit, we thought of using it to get some upgrades, see PCV 003 below.

Here are the additional PCVs;

PCV 002 - Michelle (Colour selection consultant) informed me that there were two new stain colors for our upgraded staircase - dark chocolate (walnut) and black.  I visited Elderton's office and had a look.  Sadly, these weren't the colors that I was looking for.  Despite that, I was very thankful that Elderton had provided new darker shades for the stain colors.  We ended up choosing the dark chocolate.  This was then entered as a variation.  Details - Quantum Microclear Walnut stain colour.

PCV 003 - Items included here were;

• Credit for meals area reduction by 530mm -$1,157
• Waterfall edges 2x 1000mm $1,215
• Sliding door to laundry $210
• External hot/cold and drainage points $325

PCV 004 - We decided to close off the study room.  Requested for a hinged door and to delete the square set openings $163

That's about it!!  All our designs were locked-in. Plans should now be submitted to Stockland for design approval.  Also, Elderton should be on their toes around this time as land registration was imminent.

Imminent Land Registration

Kudos to Stockland for having the land registrations on time.  They had informed land owners that it will happen within 2 weeks. Elara sales consultants were also giving courtesy calls to remind us that our land will be registered in the next few weeks.  Target dates were early first week of June.

Upon land registration, there will be 14 days to settle.  If not settled, Stockland will provide 10 days more but with a hefty 12% interest per day.  If not settled, Stockland has the right to take away the rights.

Bank Loans

Financial stuff here.

One thing we learned from our accountant Munzurul - it is best to leverage the bank's money.  This is done by getting the equity from your property and use it for a purchase for another property.  As we continue our journey in building our new home, we had consulted him and asked what is the best strategy for the loans on our new home and for the next investment property.  He said that before going on to our next investment property, it is best to get the loan for our new home first.  In the meantime, we should also get the equity ready from our current home and current investment property.  This could be used for the deposit on our new home loan.  A lot more to talk about here but I won't get into the details...

Our next move was to contact our broker, Reg.  We were very pleased with his service.  Reg, from CBA, was just fantastic to deal with.  During this time, interest rates for home loans were in all-time low.  Most probably, Reg can set on loans on an interest rate of 4.25% (or even less).  

The Sydney market had moved heaps and this affected the current value of our properties.  We asked for a valuation on our current home and the existing investment property.  After a couple of days, the valuation from CBA came back way beyond our expectation.  Our broker also offered us interest rate discounts and a 90% LVR with no LMI.  How good is that!!! Since the equity we got were more than enough, we will have no problems in using the extra equity for our next investment property.

Now moving into our new home loan, we were set for a 80% LVR (no LMI).  The valuation of our land sky rocketed after 10 months!! It came back with $110K more than the purchase price.  This could mean that we will pay less deposit. 

Articulation Zone Setback and Contract Signing

Days before we signed the contract, I had a review of the setbacks from the Elara Design Guidelines - front setback must be 4.5m and the articulation zone should be no less than 3.5m.  I had a look at our drawings and ALAS!!... our articulation zone was 2.9m.

I reported this to Elderton and they acknowledged the error.  This needs to get fixed, our land registration was just weeks away.  This could be easily remedied by moving the whole house 560mm back.  But the current rear setback is only 4030mm.  As per the guidelines, it should be no more than 4000mm.  This could mean that the length of the house will be reduced or cut off the balcony.

..............................................

The day of the contract signed came.  Helena greeted us with her warm smile.  Apparently, John (our previous tender presentor) was already working 1 day a week and Helena took over the job 3 months ago.

Firstly, we discussed the issue with the articulation zone setback.  As a solution, it was suggested to change the facade (no more balcony) or reduce the meals area.  Fair enough, we had no choice but to choose from these options.  But we thought we needed to sleep on it.  It was hard to let go of the balcony.  Equally, we don't want the meals area to be reduced.  So we asked Helena to request to put the two options in a Variation sheet and show the corresponding credit.  Settled!

We went on to the contract.  We were happy to go with Elderton and we signed the contract and paid the 5% deposit.

Electrical Appointment

Heavy storm hit Sydney during this week.  Roads were wet and flooded... but didn't stop me to meet with Costa Electricals since I am looking forward to this appointment.

Jessica was very accommodating. She showed me the sample powerpoints, switches, smart hubs, intercom and alarm systems, ceiling fans and kitchen lights upgrades.

Apparently, Costa was subcontracted by Elderton.  Any upgrades that we add will be separately payable to Costa and will not be a part of home loan.  This was a surprise, but not a big deal.  Since we already have some previous costs of electrical items in our tender, Costa was happy to price match and use that cost in our quote.

I had arranged some extra double powerpoints and light battens all over the house.  LED downlights to be installed after handover.  We also included some external wall lights, TV points, data points, ceiling fans and intercom provisions.  I was also happy that Costa was ok to arrange the NBN wiring provision from the front of the house going to the WIR of the main bed, where all the data point will be terminated in a patch panel.  I really hope that this would work.

I've seen other builders hike up their prices for electrical items. For our case, the prices were reasonable.  Overall, I was really pleased.

At the moment, we haven't finalized our electrical quote.  I will try to upload some prices in the following weeks.

Variations 001-004 + PCV001

Here are the first part of our variations;

Variation 001 - This was the alternate entry feature that Elderton had provided.  It was an extension of the porch with roof with piers.  This thing costed a hefty $10,500.  The standard balcony only costs $8,500 to upgrade so the balcony was obviously the smarter choice.

Variation 002 - We requested to revert the facade to Akora since the Orana balcony wasn't as large as the Akora.  Another item in this variation was the change of sizes of the 2 bedrooms.  All of which costed us nothing.  We had decided to remove the Smart Hub (worth $1,650).  I would be setting up all my ethernet connections and patch panels in the WIR.

Variation 003 - Well... thankfully, all the woes for this one were over. There were discussions on the bag&paint finish for the balcony and balcony piers.  Very grateful to the people in Elderton, Adam and Lisa.  Other items in this variation were the following;

• Golden Oak Timber-look garage doors $385
• Upgrade of tapware, shower rail and bathtub spout $548
• Scyon Matrix cladding in facade $284
• Relocation of rainwater tank and aircon unit to the left side, No Charge

Variation 004 - Since we will be having light battens installed (for downlight provisions), a credit for 28 light fittings was given worth $448.

Post Contract Variation 001 - Remove the letterbox (worth $924).  We will deal with this post handover.