Building Design, Prime Time
We are building designers from Prime Design. We created the Building Design, Prime Time podcast, to provide valuable information for anyone looking to undertake a new build or extension project. We share our tips, tricks and stories from a building designer's perspective.
Building Design, Prime Time
E109. New policy for financing modular homes - with guests Carrie and Eliza from Uploans
Are you considering a modular home but aren’t sure where to start? In this episode of the Building Design, Prime Time Podcast, hosts Amelia and Frank are joined by mortgage brokers Carrie and Eliza from Uploans to discuss the latest policy changes for financing modular homes. Together, they unpack the evolving world of modular housing, providing expert insights for homeowners, investors, and first-time buyers alike.
you will gain valuable knowledge on navigating loans, understanding evolving bank policies, and the practicalities of deposits, loan-to-value ratios, and approvals. Carrie and Eliza share real-world examples of common challenges financing modular homes and the complications of using the five stage building contract to fund them with banks
Carrie and Eliza break down the latest (and newly released) bank policies for modular home loans, including deposit requirements, loan-to-value ratios, and how lenders like Commonwealth Bank are changing their approach. They share strategies for navigating finance, protecting your investment, and understanding lender requirements so you can confidently move forward without surprises. They also share how lending can work using equity and highlight how using this construction method can affect property valuation.
From checking building contracts and approvals to understanding how modular homes are valued and insured, this episode gives listeners practical, actionable advice to make informed decisions about modular home builds. Whether you’re a first-time buyer or looking to upgrade with a modern, efficient modular home, this episode is packed with expert insights, tips, and stories to help you avoid costly mistakes and successfully finance your dream build.
This is an episode not to be missed! Be sure to subscribe so you don't miss an episode. We release one each week!
If you loved this episode and want to learn more about what mortgage brokers check out episode 66 & 67 when we last spoke with Uploans about financing options for your home or investment.
About us
Prime Design is a building design company locally owned and operated in Tasmania since 2004. Our goal is to share as much valuable information as possible about the process of building design, extensions, and more. We will talk about a different topic each week. To suggest a topic you would like us to talk about contact us at info@primedesigntas.com.au
Disclaimer
The information provided on this podcast is for educational and informational purposes only and is not intended to be a substitute for professional advice, individual circumstances, or remedy. We strongly suggest you consult a qualified professional before taking any action based on the information provided in this podcast. The views, opinions, and information provided in this podcast are those of the hosts do not necessarily reflect the official policy or position of any other agency, organisation, employer, or company. All content provided on this podcast is provided “as is” without warranty of any kind. We make no representations as to the accuracy, completeness, currentness, suitability, or validity of any information on this podcast and will not be liable for any errors, omissions, or delays in this information or any losses, or damages arising from its use. We reserve the right to change content or delete any information provided on this podcast at any time without prior notice.
E109. New policy for financing modular homes – with guests Carrie & Eliza from Uploans
[INTRO] (0:08 - 0:24)
Hello and welcome to the Building Design Primetime podcast, focused on providing valuable information for anyone looking to undertake a new build or extension project. We'll share our tips, tricks and stories from a building designers perspective.
[Amelia] (0:26 - 0:47)
Hello and welcome to the Building Design, Prime Time Podcast. I'm your host, Amelia. And once again, we're joined by Frank Geskus.
[Frank]
Hey Amelia.
[Amelia]
Oh, happy Friday.
[Frank]
Happy Friday.
[Amelia]
We've got some special guests here today.
[Frank] (0:47 - 0:47)
We do.
[Amelia] (0:47 - 2:19)
Yeah, welcome Carrie back again from Uploans.
[Carrie]
Great to be back.
[Amelia]
And Eliza as well.
[Eliza]
Hi, thanks for having me.
[Amelia]
Your first podcast, Eliza.
[Eliza]
First podcast, we'll see how we go.
[Amelia]
Very exciting.
[Carrie]
We won't put too much pressure on her, okay?
[Amelia]
No pressure at all. It's just a little chat, that's all. Little chat. So if you remember from episodes 66 and 67, we actually had Carrie and Kirsty come in and have a chat to us about what a broker does.
But we thought this time we would have a little bit of a different chat. We've discussed modular homes before, and there's some new systems in place now with certain banks where financing can be done a little bit differently. Is that right?
[Carrie]
Yes, it seems to be a space that is evolving. When I first started broking about 12 years ago, banks just didn't want to touch it. It was something that was incredibly difficult to fund, and there was a lot of pushback in this space.
And there are a few banks that have gradually got their minds around this. And also, there's just such a demand for it now. People are looking for affordable ways to build homes, and this is a space that seems to be growing.
It started off that banks such as My State and Commonwealth Bank started to get a little bit more flexible. And Commonwealth Bank has actually come out recently with a brand new policy around this, basically saying they're open for business and ready to go.
[Frank] (2:20 - 2:36)
Which is an interesting shift because it's such a different... For one thing, it's a different way to construct. So you bring the whole building to site, foundations, plumbing's already in place, put on top, connect everything, power, good to go, power, water, happy days.
And I can see the problem for the bank.
[Carrie] (2:36 - 2:36)
Yes.
[Frank] (2:36 - 2:46)
Because you haven't got stages. It's a lot of risk. Because all that money's tied up in some shed that will get transported from A to B, then lifted on a crane.
[Carrie] (2:47 - 2:47)
Correct.
[Frank] (2:47 - 2:51)
Hopefully they don't drop it. No, they're pretty good. These guys are slick operators.
[Carrie] (2:51 - 2:53)
Have you ever heard of one being dropped though?
[Frank] (2:53 - 2:53)
No.
[Carrie] (2:54 - 2:54)
Great. Me neither.
[Frank] (2:54 - 2:56)
I've only ever heard of them damaged during transport.
[Carrie] (2:56 - 2:57)
Right.
[Frank] (2:57 - 2:59)
And usually not their fault.
[Carrie] (2:59 - 2:59)
Okay.
[Frank] (2:59 - 3:10)
Mind you, they're pretty big, some of these. So look, accidents happen. And that could happen with any builder. Like the trusses turning up and they get cleaned up travelling. So yeah.
[Carrie] (3:10 - 3:43)
So typically one way around this has been that some banks will allow you to cash out up to 80% of the value of your land. So if you don't have a debt against that land, then there has been instances in the past where we've been able to cash out for the purpose of one of these homes, but they won't essentially lend against it. There's also been ways to fund these homes before if someone has an existing property that has a lot of equity and then we're able to cash out against it.
[Frank] (3:43 - 3:44)
Which makes a lot of sense.
[Carrie] (3:45 - 4:13)
So if you've got a $350,000 modular home and you've got a house that's worth $800,000 that has minimal debt against it, we've been able to cash out against that established property as an example and fund it that way. But now we've got lenders such as CBA saying that they will fund up to 60% of the value of that property once it's on the land, but provide those funds while it's still offsite.
[Frank] (4:13 - 4:17)
That's the really interesting part, providing the funds offsite.
[Carrie] (4:17 - 4:46)
The only thing you've got there though is they're still wanting a fixed price building contract. So they've been working on the mainland of course with some bigger builders, working out ways to make this work so that they can still have a fixed price building contract in place. So they've got some security around what will be the end result, but that they will fund it right up to 60% of the value as complete prior to it being taken to site.
[Frank] (4:46 - 5:07)
They must have some guarantees though from the builder or the company fabricating this too because obviously they've got to have all the insurances in place which of course any good business would. But it's also what's the financial position of that building business as well because they might have, you know, there might be 30, 40 they're all working on at the same time.
[Carrie] (5:07 - 5:07)
Correct.
[Frank] (5:08 - 5:16)
And stretch their credit is stretched and all the rest of it. And this is no different to any other builder which I always believe you should ask for financials to see if they're viable.
[Carrie] (5:16 - 6:01)
The thing that I'm finding interesting and I haven't actually got as much information as I'd like to have on this so far is Commonwealth is actually working with some bigger companies so that they can have some approved builders that they'll actually fund up to 80% of the value of the property prior to it being attached to the site, you know, plumbed in and onsite as complete if they are a certain builder. So there's still some things happening in that space as well.
So 60% in general still needing a fixed price building contract, builders insurance, etcetera, up to 80% with these sort of approved builders that they're working with. But that's still a work in progress.
[Frank] (6:01 - 6:37)
How does that work with the builders? So say from 60%, then they're going to transport it, which in most cases, there may be a certain allowance allowed in the total cost of the build before it gets to site. If it goes to the first, someone's going to pay for the extra cost.
The works on site, which I believe would be easily funded because it's onsite, it's attached and all the services that come in. How do the manufacturers and the builders who make these, they're only going to get 60%. And there must be a guarantee in place when it goes to onsite fixed, then they get the final 40%.
[Carrie] (6:37 - 7:15)
So the way that they're doing it is still working off a five stage fixed price building contract.
[Frank]
Can't get past that, can they?
[Carrie]
No, they cannot. And the only way really around that is the cashing out against vacant land, depending on, but again, only up to 80% or cashing out against existing equity, in which case, then you've got the cash to pay directly. Even in this way, and please Eliza step in and correct me if I'm incorrect, they'll pay up to 60%. Once it is onsite, they will then treat it exactly as a standard build contract. So they will pay the builders in stages right up to the end.
[Frank] (7:16 - 7:16)
Okay.
[Carrie] (7:16 - 7:18)
So there will be some cash flow for them.
[Frank] (7:18 - 7:23)
Basically they don't have that. They've got to take a bit of a hit until it gets onsite.
[Carrie] (7:23 - 7:48)
Correct. But the issue has been, in my experience, I know of quite a few builders doing modular homes, offsite relocatable homes that have gone under because most people have been unable to get access to any funds beyond their initial 5% deposit, say, or any funds that they're contributing until that build is complete.
[Frank] (7:48 - 7:49)
And then their cash flows cactus.
[Carrie] (7:50 - 7:50)
They're gone.
[Frank] (7:51 - 7:53)
Yeah. It can't work.
[Carrie] (7:54 - 7:58)
Nope. It's just too much for them to carry and then wait for those funds.
[Frank] (7:58 - 8:04)
Yeah. Oh, it's wonderful to hear that they're looking at it quite differently, but I still can't get over they still want to do this five-step process.
[Carrie] (8:04 - 8:05)
I know, I know.
[Frank] (8:05 - 8:07)
Which it is what it is.
[Carrie] (8:08 - 8:56)
I think it's really important to watch this space too, because typically you see a larger lender like Commonwealth Bank adjust a policy and then you start to see other banks follow. And it typically will be that it's not too far away. So I think we're very likely and I will keep you updated to see further changes in this space purely for the fact that there is such a demand. And if the banks don't step into this space, they're going to be missing a lot of business because the amount of inquiries we get at Uploans at the moment for first home buyers wanting to purchase land and do a modular home, relocatable home, something simple and affordable for them on going. It's unbelievable. It's every single week.
[Frank] (8:56 - 9:30)
Because it's attractive. I've had a look at this myself, from granny flats and all sorts of stuff like that. There's some really good companies out there doing some great products and it's not bonkers expensive as long as it meets all the compliance issues.
I think we did one from one company just recently for a client. And what I found is we still do what we have to do. But it's the logistics from the finance.
But then the money has to be spent on site. But the clients still have to be aware that there's still a lot of cash to outlay before you even get on site. Modular doesn't actually reduce that massively.
[Carrie] (9:31 - 9:36)
But I think that's something that's overlooked by many people that don't do their research with any build.
[Frank] (9:36 - 10:29)
Well, that's true. We've come across that too. And I'll be straight up because you could be spending between $12,000 to $20,000 to get your permits, depending on the size, type, complexity, and depending how many reports you have to get.
And people will call that red tape, but look, some of it isn't. It's just basic common sense. And some people choose to buy a really shitty piece of land.
And we've had to deal with lots of those and they're super expensive to deal with. And we talk about choosing the right piece of land before you buy it. Everyone does it with emotion.
And this is no different when we look at buying a house or getting plans or extensions. It's a lot of emotion and you don't know the whole cost all the way through. And this is where you've got to engage, work with the builder very closely and they take you through steps of how much it's going to cost or you get a quantity surveyor to do it for you.
[Carrie] (10:30 - 10:30)
Yes, I agree.
[Frank] (10:30 - 10:39)
It's come up just recently with a client and we have it in our systems. We use a quantity surveyor. You want costings. You've got to follow this process and so many people don't do it.
[Carrie] (10:39 - 11:35)
But Eliza, haven't you been seeing some changes with what banks will accept now in needing a contingency? So it used to be when I first started broking that you had a fixed price building contract and that's what the banks funded against. And in many instances now because fixed price building contracts are adding in clauses to give them some flexibility on being able to change due to fluctuation of materials.
And so now banks aren't happy to say just that you've got enough funds for the build. Particularly for the more higher end builds they're ensuring that the clients have further funds and access to funds to be able to cover a contingency. Are you seeing a bit of that?
[Eliza]
Yeah, so at the moment what we're seeing really is most builds over a million. It's nearly impossible to do it from a bank's funding perspective without a quantity surveyor and a 5% contingency for overruns on the build.
[Carrie]
Yeah, which hasn't really been in our space before.
[Frank] (11:35 - 11:49)
Which is interesting because we always tell customers allow 10% don't matter what build you've got give you 10% up the sleeve. So if they tell us hey we've got a $450,000 budget we'll pair it back $45,000 that's our target. Some don't agree with us.
[Carrie] (11:49 - 12:22)
But not many people do that and I think that's incredible and kudos to you. It's a great business practice because I can tell you now there aren't many people doing that out there and it's hurting a lot of people.
[Eliza]
I think even like a lot of people we find they'll go and sit down with a builder and go oh great this is how much we're going to be spending we'll get them pre-approved and then they'll realise that their kitchen is very very basic they've got plain melamine cupboards they want to upgrade that they want stone bench tops but when you're not fully experienced in building you don't really take a lot of notice of the spec of everything.
[Frank] (12:23 - 12:24)
Because it's all in words.
[Carrie] (12:24 - 12:25)
That's right.
[Frank] (12:25 - 12:33)
We do with one building company and they show a picture of every item of your selections in the contract it's very good.
[Carrie] (12:33 - 13:29)
The amount of times though that we've got people pre-approved for a build based on they've gone and done their research they've found a builder they've found a plan that they're happy with they have a budget and they say to us absolutely without a doubt we don't need to get pre-approved for any more than 450. Okay excellent. All comes together we make sure they've got some surplus put aside just for overruns in case there are any issues when it comes to I don't know rock found on the block things like that.
So many things can happen. We get them pre-approved and they come back to us three months later and their build contract is 550 and it's just it's unbelievable the amount of times that happens and then we're the ones that have to say we haven't got the serviceability for that or hang on a minute that's going to take our build up over 90% and most lenders won't go over 90% at the moment there's only two that we work with in Australia that will go over 90% for a build.
[Frank] (13:29 - 13:45)
Because everything's so tight now because we actually had a podcast just recently talking about budgets
[Amelia]
We did yeah
[Frank]
We based it on one email from a customer we did interesting and it was my budget is not your business really? yeah
[Carrie] (13:45 - 14:06)
it's not very helpful I think I need to listen to that podcast because that might actually be something really helpful to send to our clients when they're talking about it because people don't understand if you haven't done it before and we give them as much information as we can but essentially we're finance brokers so being able to give resources to clients that are thinking about building is really helpful to us
[Frank] (14:06 - 14:53)
well yeah in this case we're not experts on the budgets either because we're not involved in their selections unless they want us to that's fine but what we were talking about this is if we don't know what we don't know we can't advise but also we have a process to be able to work that out with the quantity surveyor of our choice who's really really good, and yeah it takes time to do that or we work with the builder we love working with builders and they do budget costings on the way through are we on track? are we not? let's and we try and we want to do this before we even go for planning approval get you know rough figures and we were talking about we're not trying to be busybodies we're not trying to oh here's an award winner maybe you know I could do something that's a lot of crap it's not how we work
[Carrie] (14:53 - 14:53)
yeah
[Frank] (14:53 - 15:04)
I get no joy and I don't think any of the team in here does has any joy of documenting something for someone and their budget goes over because they haven't told us and it doesn't get built
[Carrie] (15:04 - 15:06)
yep what's the fun in that? I know and it happens so often
[Frank] (15:06 - 15:39)
I'm afraid it does and we've just had one recently but the builder actually led him astray on some costings and he didn't actually do proper costings on it so we're helping him out doing some tweaks to you know drop a few bucks on this project for them but that is a big side of it and maybe we've got to develop a step-by-step process for people that they can use because I've just had another client recently and we went around there consulted with them yep want to do this oh I reckon I get about a quarter of a million dollars for the extension no worries he actually went to the bank or broker I'm not sure and he says I can only get 180
[Carrie] (15:40 - 15:40)
Right
[Frank] (15:40 - 15:42)
Right we're going to work on 180
[Carrie] (15:42 - 15:43)
Okay
[Frank] (15:43 - 15:49)
and bit of contingency pull it back a little bit and then look we're going to keep this really simple
[Carrie] (15:49 - 16:23)
Okay, it's good to know that you can do that because the thing that we're finding too is valuations on renovations are coming in really low why is that? I don't know and I think the problem is let's just say you've got a house and it might be worth 500,000 fixed price building contract for a renovation if they don't have enough equity just to pull the cash out might be say 250,000 therefore you're thinking that the end value would be 750,000 it's coming in at 650 so it's constant with renovations
[Frank] (16:23 - 16:40)
You know it's interesting though in all my years in building design that has hasn't changed a lot because I tell people don't expect to flip or do anything you're going to be minimum five years before you get your value back in it subject to your cycle you know
[Carrie] (16:40 - 16:41)
in the property cycle yeah
[Frank] (16:41 - 16:46)
Property cycle and says you're going to be here for you know five to seven years minimum to get your return on it
[Carrie] (16:46 - 17:13)
But people think that by doing a significant renovation it's going to add a lot more value onto the home than say what the build costs they just most of my clients assume you do $250,000 worth of renovations it's going to add $350,000 worth of value and instead they're absolutely gutted when they get the valuation back and it's a hundred grand less than what you know it's costing them to do it
[Frank] (17:13 - 17:44)
that's exactly right and I actually think right now that gap is worse than it was like literally five six years ago and that's really tough if there's a particular client we're working with the location is perfect for their family it is so good get rid of a car type stuff so they're now re-evaluating everything so whether we do this but we might have to pair it back to make sure it sticks within under that $180,000 and then the builder's got to work really closely with us because $180,000 is really really tight
[Carrie] (17:44 - 17:45)
really tight
[Frank] (17:45 - 17:55)
But that's a whole new living room and a bedroom and it changes the whole house and the whole family life but it's whether they can get that done for that kind of money
[Carrie] (17:55 - 18:10)
and then you're looking at borrowing capacity as well as equity is it going to value up are we still staying under that 80% mark as complete and serviceability is showing as well which is such an issue in our current environment
[Frank] (18:10 - 18:24)
Yeah, yeah okay random question how long do you reckon that it's going to take for the change for the actual build cost to buy cost difference to close up? did you bring a crystal ball with you?
[Carrie] (18:24 - 19:28)
No I’d love a crystal ball could you tell me that the amount of people that come to us that that ask that question is incredible so I think the answer is…I don't know no and that's fine it's hard because people will say to me at the moment and I think with first home buyers the answer has kind of been made for them because if they're buying an established property they're getting no stamp duty at the moment as a first home buyer they can purchase up to $750,000 and not pay any stamp duty which is a saving of over $33,000 if you've got the top end and over $20,000 if you're going you know towards that bottom end but if you're to build a brand new property at the moment it's just a $10,000 grant whether that will flip when it's legislated the new $30,000 grant
[Amelia]
I did see that advertised
[Carrie]
Yeah so it's been promised it was an election promised it just hasn't gone through the what's it called?
[Eliza]
it's legislated it's not through royal assent
[Carrie]
There we go legislated it hasn't been through royal assent so it's on its way so we do understand and have been told that it will be backdated
[Frank] (19:28 - 19:28)
Oh interesting
[Eliza] (19:29 - 19:33)
all build contracts from the 1st of July 2025 is what we've been told
[Frank] (19:33 - 19:34)
Wow
[Carrie] (19:34 - 19:36)
kind of watch this space on that as well
[Frank] (19:36 - 19:53)
but what's interesting that $30,000 compared to that COVID sugar hit that they did which ended up with the fed one was about $45,000 $45,000 because my son and his wife were in that and that was a really good sugar hit considering the build was $320,000
[Eliza] (19:53 - 20:10)
It was me to a tee $45,000 second home
[Frank]
There you go.
[Carrie]
Eliza was one of the first to jump on it in fact she was our guinea pig so it was fantastic it was awesome because what happened is these and a little bit off track here but these grants were brought in so quickly without any consultation from the banks.
[Frank] (20:10 - 20:12)
No it was bonkers
[Carrie] (20:12 - 21:37)
So it's crazy you couldn't actually use part of the grant as funds to complete so there was a federal grant and a state grant and the state grant you could use as funds to complete but the federal grant you couldn't use as funds to complete because the bank wouldn't recognize it because of when and at what part of the build it was made and so as brokers we went in and were using those as funds to complete and then all of a sudden the banks are declining applications we've got clients racing to parents grandparents everyone they can to temporarily get those extra funds until they were then paid to them it was a crazy time but it will be interesting to see what the $30,000 first homeowner grant does for builds because I can say we have slowed down significantly so in the last two years in the amount of construction loans we do during that COVID time it was astronomical how many we were doing and we have absolutely seen a pickup in what would you say Eliza the last three to six months
[Eliza]
yeah probably the last three months I think it's gone up at least 50% from what we were doing the 12 months prior.
[Amelia]
Wow, yeah that's a big change do you think it's because of the rate drops?
[Carrie]
yes I think building is again becoming more affordable because of these rates easing back it was out of reach for a lot of people. They couldn't afford to build they couldn't do it
[Frank] (21:37 - 21:39)
Yeah because the numbers didn’t stack
[Carrie] (21:39 - 22:18)
Like the amount of people that were coming to us that had the equity to build but the inability due to borrowing capacity was huge but also yeah as they've eased back but also some confidence has come back in the building industry because the media grabbed hold of it right so you know this company was going under and this company was going under and this and then we had we had a few in Tassie going under and so I think there was a real fear around building on top of the inaffordability and what we are seeing from our clients is a little bit more confidence coming back they're being a lot more careful about their builder selection
[Frank] (22:18 - 22:18)
As they should
[Carrie] (22:18 - 22:36)
yeah and a lot more across building contracts so quite often in the past clients would just sign building contracts without reading them it just is what it is but people seem to be taking a little bit more time asking a few more questions but we are definitely seeing confidence come back in building
[Frank] (22:36 - 22:59)
but they should be they should be getting professional advice on any of those contracts so yeah we've certainly noticed it especially in Hobart where it went off a cliff come October last year it just dropped and then Launceston just stayed pretty consistent then kind of dipped off a bit during March, April and then really August went off and Hobart it went off as well
[Amelia] (22:59 - 23:05)
we had a period I think where we were doing a lot of renovation extensions
[Frank] (23:05 - 23:09)
yep still are . Very few new first-time builders
[Carrie] (23:09 - 23:17)
I was going to ask you about that because I think we will see first-time buyers come back into that market as soon as that $30,000
[Frank] (23:18 - 23:21)
It'll be interesting because I think like you get that sugar hit but is it going to be enough?
[Carrie] (23:22 - 23:24)
correct borrowing capacity is still going to be an issue
[Frank] (23:24 - 23:30)
exactly right for first-time buyers the serviceability of that loan and they're all going to be reliant on two incomes
[Carrie] (23:30 - 23:42)
yes you are correct because a lot of people don't understand that single borrowers at the moment it's almost impossible for them to purchase a home on their own in the current environment and it's really disheartening
[Frank] (23:42 - 23:56)
I've got two friends of mine they're two kids and one of them just recently purchased a two-bedroom unit now a two-bedroom unit now is not exactly a cheap purchase but she's been working hard saving her doh.
[Carrie] (23:56 - 23:56)
Yeah
[Frank] (23:56 - 23:58)
And she's done that by herself
[Carrie] (23:58 - 24:06)
yep it's really deflating for them but it's also pushing people to purchase with partners sooner than they would usually
[Frank] (24:06 - 24:08)
which then leads to further risk
[Carrie] (24:08 - 24:08)
yeah
[Frank] (24:08 - 24:09)
Yes
[Carrie] (24:09 - 24:27)
Also seeing more siblings purchase together which again leads to further risk if you know one meets a partner and someone else gets involved and things like that so we're seeing a lot of different scenarios that weren't really around when were more few and far between when I first started broking
[Frank] (24:27 - 24:34)
Yes I agree because that's a really question that makes it really really tough
[Carrie] (24:34 - 24:42)
but when you sit down with someone and they're on $70,000 a year and their borrowing capacity is $250,000 they can't do it
[Frank] (24:42 - 24:42)
No
[Carrie] (24:42 - 24:45)
as soon as you add a second salary in there
[Frank] (24:45 - 24:46)
They can
[Carrie] (24:46 - 24:52)
it just you know your capacity goes up by not quite 50% but quite a lot more
[Frank] (24:52 - 24:58)
yeah but then you've got to start looking at it differently is it going to be a residence or is it going to be a investment property
[Carrie] (24:58 - 24:59)
yeah
[Frank] (24:59 - 25:10)
Because if you do as an investment property and you still rent and if you can make the numbers stack it may actually be a better way of doing it but everyone wants to own their own castle and I 100% agree with that
[Carrie] (25:10 - 25:38)
The first home buyer benefits I think are quite good at the moment in terms of no stamp duty there's just been changes that are coming into play as of the 1st of October for the first home guarantee scheme the income caps have been taken away the price caps on purchasing established dwellings is being extended so in Launceston for example in regional Tasmania it was $450 that's going up to $550
[Frank]
Even then that's a bit…
[Eliza]
Doesn't get you much
[Carrie] (25:38 - 25:41)
doesn't get you much does it?
[Frank]
Oh you get some dungars out of that
[Carrie] (25:41 - 25:42)
I know
[Frank] (25:42 - 25:44)
You know if you're looking at a proper house
[Carrie] (25:44 - 25:51)
I know but $450 was almost impossible for people to purchase
[Frank]
What were they thinking?
[Carrie]
I don't know
[Eliza]
Oh honestly
[Frank] (25:51 - 26:02)
but on the flip side to this this is something else we discussed in previous podcast is I'm noticing where people do not want to renovate as in do up a house
[Carrie] (26:02 - 26:04)
Agree
[Amelia]
Themselves yes
[Frank] (26:04 - 26:25)
yeah whereas my era where we had cardboard boxes bedside tables we didn't have a lot and we renovated we painted we made up, we learned how to do stuff, made mistakes and all that but then you get to love your house a lot more because you've put all this…
[Amelia]
Blood sweat and tears into it
[Frank]
yeah all of that yeah yeah literally
[Carrie] (26:25 - 26:33)
There is a different expectation of what a first home looks like in this current environment I absolutely agree absolutely
[Frank] (26:33 - 26:48)
Because I just think you could do yourself a lot of favours by doing that and it's painful you're living in squalor sometimes or without a kitchen for three months and you're saving up for this stuff but I'll tell you what it makes it more worthwhile saving hard
[Carrie] (26:48 - 27:02)
What were the changes on the scheme around building a home Eliza?
[Eliza]
So you could always build on it but for us in Launie obviously $450 for land and build kind of possible. Can you buy a block of land and build for $450 in Launceston? probably not.
[Carrie] (27:03 - 27:04)
Combined
[Amelia] (27:06 - 27:14)
I've looked at a few house and land packages just around the place and I don't think I've seen anything under $500,000
[Frank] (27:14 - 27:16)
Unless it's a strata unit
[Eliza] (27:16 - 27:26)
Yeah maybe yeah maybe but then that being the case you would buy them as complete because it's very very hard to sell off a strata block without the house being built from what I found
[Frank] (27:26 - 27:30)
No, no it is that is very true it has very special circumstances
[Carrie] (27:30 - 27:38)
Yeah in which case clients would then only get the $10,000 grant they're buying as complete and it's brand new $10,000 grant isn't it
[Frank] (27:38 - 27:48)
That's right but you can't buy a vacant strata lot and then build on it or it is rare it can be done and not all councils accept it
[Eliza] (27:48 - 27:54)
yeah I've seen a few kind of in my time in the industry but the plans for the build have to be done they've got to be on the strata title it's already got to be done
[Frank] (27:54 - 27:57)
yep and it's got to be exact and you can't change the colours no windows anything
[Carrie] (27:57 - 28:01)
Really no I don't have a lot of experience around that
[Frank] (28:01 - 28:04)
We've done I think we've done four or five of them
[Eliza] (28:04 - 28:06)
I think I've seen three in my 11 years
[Frank] (28:08 - 28:17)
But it can be done and it could be attractive to some people because the strata land is going to be a heck of a lot cheaper than this
[Eliza]
Absolutely it is yeah
[Amelia] (28:17 - 29:47)
so what are some misconceptions people have about financing modular homes or pre-fabricated homes is it still classed as a construction loan or?
[Carrie]
So unless we're doing what I mentioned earlier in cashing out against existing property or cashing out against vacant land in which case you can fund it yourself pay the builder directly or you could still have a fixed price building contract and do the drawdowns yourself yes it is still seen as a construction loan the other way that we've seen them do it seen them done is that clients have found funds elsewhere say from family waited until the home is on the land and as complete and then the bank doesn't then differentiate between an established home that was built in stages on site or an established home that was built off site and relocated they won't they won't at all, so what would happen is once that's complete we can then subject to serviceability and also end valuation cash out up to 80% against that property so that they could then pay parents back or family back I saw a lot more of that when these sort of modular homes were less expensive many years ago but they seem to have gone up in price because they've gone up in quality as well you know some of them that I saw years ago were sheds but there's really good quality ones around now
[Frank] (29:47 - 30:38)
About to touch on that because it can only be of the minimum standard under the National Construction Code I don't know how some of the previous ones got their permits or whatever we've spoken about this with a couple of our other podcasts where don't buy a prefabricated home from another site, just don't do it, as soon as you move it to a new site it has to comply with the current code and we're not going to touch it with a barge pole because it's near impossible we're going to tear the thing apart to be able to get it to comply it's not much different of converting a shed into a house what we call a shouse you know because that is hard it is really hard an existing one and it's usually around the frame and the footings and the waterproofing of the slab. It is really really difficult people think it's easy they see sheds and they think they're already converted but no they'll planned that way
[Carrie] (30:38 - 31:19)
And that's the thing that we've come up across in Tassie in particular and we do lending all over Australia but Tasmanians seem to do this more than anyone else I swear is they just go in and put a bathroom and a kitchen in and get the plumbing done and do all of these things that aren't council approved don't have permits and then they put the property on the market and they sell it and all of a sudden a valuer walks in and says nah this is not approved and then the contract falls over, or the value will walk in and only allow land value only and not attribute any value to this unapproved dwelling because they can't and then the banks won't fund it.
[Frank] (31:19 - 31:32)
That's if they know that's if they know because also people that don't have to have a value come in they don't do the proper searches and there is a specific way it's got to be done and they're buying a dud
[Carrie] (31:33 - 31:35)
We've seen that happen a couple of times
[Frank] (31:35 - 31:49)
it is awful absolutely awful and dodgy and chonky people think it's worth something and it's not worth anything at all and it's really really sad we've dealt with a few of these in here and it's brutal
[Carrie] (31:49 - 31:59)
And typically would you find you'd have to rip it down and start all over again or are there or can they make changes to then comply?
[Frank] (32:00 - 32:03)
It's hard, we've had to do some but also there's ones look we can't help you
[Carrie] (32:03 - 32:05)
Yeah we've had situations like that as well
[Frank] (32:06 - 32:41)
It's so wrong on so many levels it makes me really mad and this is where I believe open disclosure laws and keeping it really simple not like what Queensland have just done, that is insanely difficult so it's just keeping it really simple because with the information you provide you are liable it should be as simple as that but there's easy ways to be able to check that because we do checks for ourselves when we're doing construction we can go into the council obtain all previous permits drawings plumbing building everything we go to site have a look and go hello
[Carrie] (32:42 - 32:43)
That's not on there
[Frank] (32:43 - 33:03)
yep or classic example a guy rang me from Hobart oh look I've got this problem with something on the back of my house and they've extended only 600mm to increase the size of the ensuite anyway I was doing my search on it and checking stuff it says mate your deck isn't not in here too and your shed's a problem why is that you've built over a sewer main
[Carrie] (33:03 - 33:03)
Oh no
[Frank] (33:03 - 33:05)
It's like 30 years old
[Carrie] (33:05 - 33:06)
Oh no
[Frank] (33:06 - 33:11)
Never had a permit but he didn't know that but I found it while I was doing my searches yeah
[Carrie] (33:11 - 33:15)
I think it's a lot more common than anyone realises
[Frank] (33:15 - 33:20)
I've spoken to some insurance companies and they said Tasmania's the worst yeah yeah
[Carrie] (33:20 - 33:41)
and we see it pop up in Tasmania way more than we do in any of our interstate transactions and we do write a lot of interstate loans now COVID opened that up yes so we can write all over Australia and we do but Tasmania seems to be we're special where it keeps popping up you've got your backyard builders going in there and having a crack but it causes all sorts of trouble.
[Frank] (33:41 - 33:51)
well I suppose it's just doing your thing and the classic thing is turning a shed into a man cave which then turns into a spare bedroom and rumpus and then turns into a granny flat
[Carrie] (33:51 - 33:52)
Yes, yes it develops over time.
[Frank] (33:52 - 34:03)
And it's built on a boundary, needs a firewall
[Carrie]
Yes
[Frank]
you know it just goes on and on and on we've just had one oh there's an example of a concrete block garage turned into an Airbnb.
[Carrie] (34:03 - 34:17)
Oh really? Insurance would be a thing there too though because if it's built as a dwelling it's not insured if it's built as a shed and then acting as a dwelling it's not insured yeah that would be my lord it's just a whole can of worms
[Frank] (34:17 - 34:25)
and this is what worries me and like whatever you do you go with new stuff if you're doing a transportable building you don't get it from some guy make sure they've got a license
[Carrie] (34:25 - 34:26)
Yep
[Frank] (34:26 - 34:36)
Make sure they've got all this it's had all the inspections all this type of stuff that are a legitimate company and there's a lot of good modular building companies out there do your research and make sure they're fair dinkum
[Carrie] (34:36 - 34:43)
and so that we know what to tell our clients and listeners as well what sort of things would you look for frank in someone that's doing modular homes
[Frank] (34:43 - 34:45)
First do they have a building license
[Carrie] (34:45 - 34:45)
okay
[Frank] (34:46 - 34:50)
first and foremost because as soon as they've got a building license they should have a level of insurance
[Carrie] (34:50 - 34:51)
Yep
[Frank] (34:51 - 35:22)
Because that has to be proven as part of your license second part is when they are selling you, you know a what a two-bedroom transportable building okay you want to look at the drawings is it done by a licensed person is the engineering done by a licensed engineer and had the thermal assessments been done because they would have done a lot of work on establishing their base designs they should be able to produce that and produce you a list of your designer or engineer your thermal all that type of stuff who's the plumber that signed off on that modular building
[Carrie] (35:22 - 35:22)
Interesting
[Frank] (35:22 - 35:30)
Because it all has to be done inside the factory and the inspections should have been done specifically on the frame
[Carrie] (35:30 - 35:36)
yeah I think that's not happening in a lot of cases okay the big ones are good yep
[Frank] (35:37 - 35:39)
Because the builders should be able to produce yep all this is done
[Carrie] (35:40 - 35:40)
Excellent
[Frank] (35:40 - 35:49)
and this should be signed off but they might be building you a custom one they should be able to provide you or to you this is what we're going to do because the building surveyors insist on it as well
[Eliza] (35:50 - 36:20)
I think probably while we're thinking about kind of misconceptions as well a lot of people will think you can do it with a five or ten percent deposit which you can in the banks eyes but then you end up with the problem that the builder has to carry the build until it's on site a lot of the time obviously with the new cba changes it makes a bit of a difference but it's very, very hard to convince a builder to carry the build right the way from all the way through from the deposit from the customer until it's on site if they've only got a five to ten percent deposit
[Frank] (36:21 - 36:26)
Oh can't be! Yeah I don't see how they could possibly do it because certainly they run 30-day accounts
[Carrie] (36:26 - 36:26)
yeah
[Frank] (36:26 - 36:33)
and then you've got all that material sitting there so say if it's a $180,000 build it has to be at least 100 to 120 gram worth of material
[Eliza] (36:33 - 36:43)
Yeah and that's kind of where we find the most that aren't able to go ahead because it's the conception that it's cheap and you don't need much of a deposit but then they can't afford to actually carry it
[Frank] (36:43 - 36:48)
No because that's where the funder comes in to be able to be able to do that there's a big gap there isn't it
[Carrie] (36:48 - 36:49)
there's still a really big gap
[Frank] (36:49 - 36:57)
and finding a solution for that gap look I believe that we going forward there'll be modular home companies that can carry that
[Carrie] (36:57 - 36:58)
yes
[Frank] (36:58 - 37:14)
Because they'll build the cash equity in their business they can sell more they can do the 5% deposit they get CBA to do their part they're just holding onto their money a lot longer and then they may even have one pre-fabbed ready to go exactly what you want off you go off to site
[Carrie] (37:14 - 37:28)
yeah and I think we will see those companies come into play more and more and I think this is where CBA are doing their research with companies that are able to have that lower risk just in case
[Frank] (37:28 - 37:38)
Could it be a bit like how the new car yards car yards work with their new cars where they've got holding stock because there's an element of loans of holding that isn't it
[Carrie] (37:38 - 37:39)
yeah yeah yeah
[Frank] (37:39 - 37:42)
could it be something like that going forward
[Carrie] (37:42 - 37:47)
interesting to see because certainly we've never seen more inquiry in this space ever
[Frank] (37:47 - 38:04)
and I don't think it's great the challenge is putting modular homes on and we'll talk about this is about how do they value up compared to normal homes
[Carrie]
Yes
[Frank]
Because sometimes they can look like a dog's breakfast
[Carrie]
Yes
[Frank]
Because they just look like trailer park if not done right
[Carrie] (38:04 - 38:04)
Yes
[Frank] (38:04 - 38:12)
yet if they've done well and it's no different with a shouse you can make a shed turn to a house still looks like a shed
[Carrie] (38:12 - 38:13)
Yes
[Eliza]
Yeah.
[Frank] (38:13 - 38:25)
yet if you put the effort in it doesn't look like as much as a shed you know so I think those things need to be considered too because from a valuation and a resale point of view how have you guys seen that
[Carrie] (38:25 - 38:49)
They don't value up as well as an actual build yes they don't and I think the reality is they don't tend to sell as high a price as an actual build so it makes sense that the valuers are coming in lower we've had instances where valuers have refused to add them into the value and they've just come back with a land value when something's not been done well so
[Frank] (38:49 - 38:52)
oh when it's been poorly done oh which I understand because they go…
[Carrie] (38:52 - 39:25)
Let's just say your land value is 350 000 it's a nice big land size and someone's put a transport portable home on there and it's a slap job and it might have tank water and it just and you know it has electricity but it's slap bang I've had valuers turn around and say that could literally just be put back on a truck and taken off elsewhere I'm not going to allocate any value to that regardless of the fact that it is a home that is lived in I'm not going to and so the land value might be 350 and the improvements value is nothing
[Frank] (39:25 - 39:28)
and the problem is what you're probably describing is what we call a humpy
[Carrie] (39:28 - 39:30)
Yeah, yeah absolutely yeah
[Frank] (39:30 - 39:33)
because there's no way it could build a be an approved build
[Carrie] (39:33 - 39:33)
Yes
[Frank] (39:33 - 39:45)
I remember a family was in a really bad spot they went and bought one put on their property and it was our Mole Creek way and they really needed this for the space anyway the best we could do was call it a shed
[Carrie] (39:45 - 39:46)
Okay
[Frank] (39:47 - 40:04)
That's what we could do so we ended up calling it a studio still had a sink in there had a bathroom in there but we just wrote on there non-habitable got it passed so they couldn't live in it but there was already a house already on site that's the best we could do because they bought this from I think it was off gumtree
[Carrie] (40:05 - 40:07)
There's a lot of them on Gumtree
[Frank] (40:07 - 40:09)
Don't buy off gumtree
[Carrie] (40:09 - 40:19)
no we've also repeated that many times out loud Facebook and Gumtree you'll see a lot of them yeah
[Frank]
Don't do it!!
[Carrie]
No, no do not
[Frank] (40:19 - 40:38)
it's just bad buy caravan no seriously caravan you can legitimately put on site because it's got a registration it's licensed to go on the road you can put it on your site and you don't need a permit other than a plumbing permit there's different ways to do it there's a trick to it though because I actually did it for the government once
[Carrie] (40:38 - 40:38)
Okay
[Frank] (40:38 - 40:40)
Did a whole series of all over Tasmania
[Carrie] (40:40 - 40:47)
But just so your listeners are aware if there's a caravan and there's plumbing it's still not an improvement on that land
[Frank] (40:47 - 40:52)
It's actually a detriment sadly that's what it is
[Carrie] (40:52 - 40:53)
it is though yeah, yeah
[Frank] (40:53 - 40:57)
you know you can't it's not worth anything which then makes it hard to insure too
[Amelia] (40:57 - 41:01)
yeah anything on wheels doesn't really add value does it
[Frank] (41:01 - 41:03)
No and nor should you expect it to
[Amelia] (41:03 - 41:04)
No
[Frank] (41:04 - 41:05)
It's more of a convenience
[Carrie] (41:05 - 41:05)
yeah
[Frank] (41:05 - 41:31)
You know and this is where they talk about the tiny home revolution that's fine if you want to do that and I think it's great if it's a temporary thing save a heap of coin got your independence but I think it's gonna be a different type of insurance different type of living and if you want to do that for a period of time until you build something more permanent I think it's a good idea and to be fair I think it's a good solution where people are really desperate to find housing a caravan or a tiny home or something like that on wheels is a good solution
[Carrie] (41:31 - 41:56)
and we've had clients that have purchased land used a tiny home for a period of time saved paid down the land built their equity and then in three four years time built and it's been a great solution for them especially if it's just a single person or a couple with no children it has been a stepping stone for them and it's worked because they haven't been paying rent while they've been…
[Amelia]
on their property yeah
[Carrie]
So it's been a solution so it does work sometimes
[Frank] (41:56 - 41:57)
It's a long-term plan
[Carrie] (41:57 - 42:04)
But those tiny homes my clients have had have never been council approved, it’s just something they live in temporarily and then they have…
[Frank] (42:03 - 42:09)
But as long as it's registered and you've got correct plumbing set up it is possible
[Carrie] (42:09 - 42:10)
yeah right excellent
[Frank] (42:10 - 42:16)
In certain circumstances you've got to do your research with each council but they may only give you one year to two year permits
[Carrie] (42:16 - 42:17)
Yep
[Frank] (42:17 - 42:27)
In some cases the ones I did were an extension to an existing house where they needed extra room for the teenager and we were able to do that with these caravans
[Carrie] (42:27 - 42:30)
could you do that for my 10 year old who's a bit of a misbehaviour
[Frank] (42:30 - 42:36)
So what you're saying is get you a caravan that's padded, lined inside no one can hear them scream
[Carrie] (42:38 - 42:40)
I do love her very much just so you know
[Frank] (42:40 - 42:42)
Maybe a smash room
[Carrie] (42:42 - 42:49)
Might be there has been three meetings at the school in the last three weeks but we'll park that for a minute
[Frank] (42:50 - 42:53)
Oh wow that's impressive
[Amelia]
That is very impressive
[Carrie] (42:53 - 42:53)
excellent right
[Frank] (42:55 - 42:57)
yeah we've got nowhere to go no right
[Carrie] (42:57 - 43:01)
I'm scared someone's gonna write in and be like that finance broker we're gonna be…
[Frank] (43:01 - 43:03)
Is that your kid?
[Carrie] (43:05 - 43:21)
if you see a caravan parked did someone say our backyard
[Eliza]
Oh that's so funny
[Amelia]
Right where we go with this Amelia
[Frank]
That’s great
[Amelia]
Let's get back to the topic modular homes
[Carrie] (43:21 - 43:22)
Yes
[Amelia] (43:22 - 44:18)
Is there any special documentation buyers need to prepare when applying for a modular home loan?
[Carrie]
The home loan itself not so much other than a fixed price building contract if it is going to be funded in CBA's new way of being funded up to 60% loan to value ratio off-site and then bought onto site it would need a fixed price building contract if it's through doing this via accessing equity elsewhere i.e cashing out against your vacant land or cashing out against another asset another property there doesn't need to be a fixed price building contract for the lender I would strongly suggest there was some sort of contract involved though so that you're protected
[Amelia]
you have some figures
[Carrie]
Yeah, yeah but it's interesting because the documents that Frank mentioned earlier when I said you know what should our clients be asking for they aren't…the banks don't need to see those which is…
[Frank]
Are you kidding me?
[Carrie] (44:18 - 44:36)
No, no they do not no they do not and this is why I asked you and I thought this is great I'm going to send this off to my…any client that mentions they want to go down this path because it isn't a lender requirement to see those things so they'll want to build as insurance if it's something that's a fixed price building contract and their funding against…
[Frank] (44:36 - 44:37)
Doesn't ask for their license
[Eliza] (44:38 - 44:42)
No they want their contract works insurance stamped plans and
[Frank] (44:42 - 44:43)
so building approved plans
[Eliza] (44:43 - 44:43)
yeah
[Frank] (44:43 - 44:45)
That means they have got a license
[Carrie] (44:45 - 44:48)
okay then we're okay that's good
[Eliza]
There you go that ticks everything off
[Frank] (44:48 - 44:49)
Yeah it does
[Eliza] (44:50 - 44:55)
You can’t have anything funded without the stamped plans
[Carrie]
I'm just frightened we’re shooting people off down a path of destruction
[Frank] (44:55 - 45:10)
but I think you'd still use that when they're investigating looking at different companies because like I said there are guys on Gumtree and Facebook marketplace that are selling or will build you one same thing ask the questions
[Carrie] (45:10 - 45:10)
Yeah
[Frank] (45:10 - 45:21)
do you have a license does your engineer have a license your thermal performance all the rest of it because it's like buying a modified car without knowing what you're getting
[Amelia] (45:21 - 45:36)
so what about lenders mortgage insurance does that still apply for modular homes is it still sort of the same as any other home loan contract
[Carrie]
What's commonwealth's policy around I think that they'll only go to a max of 80 percent
[Eliza]
No 90
[Carrie]
They will go to 90 now?
[Eliza] (45:36 - 45:37)
I've checked it before I came here yeah
[Carrie] (45:37 - 45:41)
So that's their updated policy so
[Frank]
That's pretty good
[Eliza] (45:41 - 45:41)
Yeah
[Carrie] (45:42 - 45:44)
so this is brand new policy just released
[Frank] (45:44 - 46:05)
wow
[Amelia]
That's pretty good
[Frank]
Because I can see what's coming what I'm scared of is you get these modular homes and as I said can look trailer park like if they're not designed right other thing you've got to be aware of too when you do modular homes because they're up in the air you've got to have decks and landings and staircases make sure that's included in the build
[Carrie] (46:05 - 46:11)
Yeah that's good to note
[Amelia]
Yeah you'd want to hope so
[Carrie]
Yeah yeah
[Eliza]
You'd be surprised
[Amelia]
Really? Wow
[Frank] (46:12 - 46:16)
Yeah so you've got to get a little step ladder to get up to your front door
[Amelia] (46:16 - 46:17)
that's a bit ridiculous
[Frank] (46:17 - 46:24)
yeah well you'll never get a permit a finalised permit because it has to be a compliance stair and landing to get to the door
[Amelia] (46:24 - 46:36)
yep yeah
[Eliza]
off topic a little bit but I cannot tell you the amount of times matt has gone to one of those and had to jump in with his carpet so to jump up into them yep he's like I don't have a ladder I work on the floor but he can't get into the house
[Frank] (46:36 - 46:38)
Is this while like after the complete
[Eliza] (46:38 - 46:41)
uh when he's doing the flooring so like obviously oh yeah
[Frank] (46:41 - 46:42)
No they don't care about tradies
[Eliza] (46:42 - 46:47)
no that has built oh my god it's insane
[Frank] (46:47 - 46:49)
that's weird that's an OH&S problem
[Eliza] (46:49 - 47:00)
like he he's gone to a few and sent me a picture he's like the you get in up there and he's like I don't have a ladder and I'm in St Helens like what am I meant to do I'm like uh I don't know that's your problem that's not my problem what do you think that's?
[Frank] (47:01 - 47:04)
yeah I've got my thinking of that
[Carrie] (47:05 - 47:06)
Right, not very good
[Frank] (47:06 - 47:09)
Oh I know most builders we deal with they go out of the way making sure it's all safe
[Carrie] (47:09 - 47:10)
Yeah, good
[Eliza] (47:11 - 47:14)
Some of them not so much
[Frank]
It seems a bit odd doesn't it
[Amelia] (47:14 - 47:21)
I guess the other note there to make is to make sure you check all of your inclusions
[Carrie]
correct
[Amelia]
In your contract
[Frank] (47:21 - 47:24)
I think it's easier with modular ones because they're limited on inclusions
[Amelia] (47:24 - 47:25)
True
[Frank] (47:25 - 47:30)
compared to doing a like a reno or brand new build because you just go shopping
[Eliza] (47:30 - 47:30)
Yes
[Frank] (47:30 - 47:32)
and that's where the budget goes
[Carrie] (47:32 - 47:34)
that's when it blows for everyone yeah absolutely
[Frank] (47:34 - 47:37)
it does it is don't worry I've just had that experience
[Carrie] (47:38 - 48:06)
but it's also difficult because often it's not until you've decided to proceed that you find out that only one power switch is allowed in per room within your budget and you start to find all these things that oh well I need two in that room okay well that puts it up this amount and there's another 150 200 dollars yeah and it all adds up so yeah I think for people to try and really gauge what's included to the most detail they can
[Frank] (48:06 - 48:12)
That’s interesting because we do electrical plans we give to the client well where do you want power points you write it on there so at least when they get a price that's what they're going to get
[Eliza] (48:12 - 48:17)
I had an electrical plan actually I did as part of the…
[Speaker 2] (48:17 - 48:18)
no not all not all, it's not a requirement
[Carrie] (48:18 - 48:19)
no
[Frank] (48:19 - 48:27)
it's not a requirement to get your permit yeah so I actually think it's a bit foolish because you need to show where everything goes and you know what you're getting for your money on the price
[Amelia] (48:28 - 48:36)
Makes a lot of sense
[Carrie]
It does but I've seen a lot of doozies honestly where homes have been complete and it hasn't been picked up on until that home's finished
[Frank] (48:36 - 48:45)
see that's really interesting because a lot of quality builders I know they actually get them to come in and check all the electrical positions before you know the plastering happens all that
[Carrie] (48:45 - 48:56)
yeah not a lot of the bigger ones really
[Eliza]
yeah the big ones don't your big cheaper ones will not work from what we found
[Frank]
There you go
[Amelia]
So the project type homes
[Frank] (48:57 - 49:04)
Is that so? because I know project home companies we work with and they do we do full electrical plans from every time
[Amelia] (49:04 - 49:05)
Yeah right
[Frank] (49:05 - 49:06)
there you go I didn't know that
[Eliza] (49:06 - 49:19)
like you say like when I built my house it's like okay come in we've got all the wires in and there was um a spray paint on the floor yeah blue for powerpoint pink for switch and it was like are you happy with this are you happy with that yep yep yep put another one here but obviously not everybody's…
[Frank] (49:19 - 49:20)
Double checking it
[Eliza] (49:20 - 49:21)
Yeah make sure you're happy
[Frank] (49:21 - 49:22)
Because it's hard to visualise
[Carrie] (49:22 - 49:32)
then you have some builders that will not allow site visits clients in at all for site visits at all yeah but that's a whole another topic of conversation it is isn't it
[Frank] (49:33 - 49:34)
I could go on about that one
[Carrie] (49:34 - 49:46)
So could I and I've you know I've had clients in tears and the and the process of building has just been made
[Frank]
Horrible
[Carrie]
Really awful for them because of that…yes another podcast I feel
[Frank] (49:47 - 49:50)
I've had clients go in break in change the locks and sack the builder
[Carrie] (49:50 - 49:54)
yeah okay
[Eliza]
wow
[Carrie]
I could see why
[Frank] (49:54 - 49:58)
This was just so they didn't have to pay and then they'd go get it finished off themselves
[Carrie] (49:58 - 49:58)
oh really
[Frank] (49:58 - 50:01)
That was el shonko that was a shocker
[Carrie] (50:01 - 50:03)
right yes I haven't had that one
[Frank] (50:03 - 50:13)
I remember that one the builder goes what do I do and he had to get legal advice and all that but they actually broke in and then they got their own builders into finishing because they claimed going into dispute
[Amelia] (50:14 - 50:15)
Wow
[Speaker 2] (50:15 - 50:27)
And we saved them I think we worked out it probably saved them close to back then because it's about 10 12 years ago it was really dodgy but it's gonna save about 50 grand on the build it was just plain nasty.
[Amelia] (50:27 - 52:00)
Wow. so where can listeners reach or learn more about financing options through Uploans?
[Carrie]
Well you can either give us a call or you can email the best way would be to email team at so team at uploans.com.au or if you go to our website www.uploans.com.au there actually is a submission form you can pop an inquiry on there and then someone will get in contact with you straight away.
[Amelia]
I've noticed too on your website you have a lot of resources available too for people that are wanting to learn more about just financing in general and different types of loans and how they work
[Carrie]
We try to keep up regular blogs and stay ahead because there's always changes there's changes to loan products there's changes to policy you know there's just been a whole upgrade to the first home buyer grants throughout the country federal and state there's also been recent policy changes to assist in borrowing capacity around help debt there's there's things that are changing all the time and it's really hard for people to get that information so we do try to stay quite relevant in terms of updating blogs updating information all the time so that that information is relevant in fact Eliza one of her jobs when she came in this morning was an email from me to completely redo the grants page because they're changing throughout the country so yeah it is a good it is a good resource point
[Amelia]
Yes and I like your calculator on there too
[Carrie]
It's good isn't it
[Amelia] (52:00 - 52:02)
It's really good yeah definitely
[Carrie] (52:02 - 52:03)
if you're a numbers person
[Amelia] (52:03 - 52:04)
if you're a numbers person
[Carrie] (52:04 - 52:36)
but if you're not it's okay I'll calculate it for you
[Amelia]
All right so take home points I guess from modular homes and financing for that is it's I guess it's a continuously revolving door at the moment because it's changing
[Carrie]
It's changing constantly and I think as I mentioned earlier when commonwealth bank tends to change policy and update other banks follow and so sometimes they try to outdo each other actually once a new policy is released so I think that it will be a constantly evolving stage
[Frank] (52:36 - 52:37)
Do you send them the policy
[Carrie]
No!
[Frank] (52:39 - 52:43)
Guys have you seen this, you guys are pretty shit! Do you want to get this sorted?
[Carrie] (52:43 - 53:09)
I think I'd be banned from writing with that particular lender if that happened…but no
[Frank]
Don’t they like constructive criticism?
[Carrie]
They must have insider information though because when the recent…Commonwealth Bank were the first lender to change policy around serviceability and help debt and it was only what two weeks after that nab followed so they must have some leakers in there somewhere I mean
[Frank] (53:11 - 53:12)
there's a mole
[Amelia] (53:14 - 53:17)
stay tuned for the next podcast
[Carrie]
yeah
[Amelia] (53:17 - 53:19)
moles within banks
[Frank]
What’s that got to do with building design?
[Carrie]
Anyone from Comm who is listening it’s not me!
[Amelia] (53:23 - 53:28)
what a great place to wrap up
[Carrie] (53:29 - 53:30)
I am not the mole but anyway
[Frank]
There’s a lie detector test here somewhere. Sorry I got to let you finish
[Amelia] (53:32 - 53:41)
Stop Frank, stop! Thank you so much for coming in Carrie and Eliza from Uploans.
[Carrie] (53:41 - 53:49)
Thanks for having us
[Amelia]
it's been great we've been chatting for an hour can you believe it
[Eliza]
where does the time go?
[Frank] (53:49 - 53:50)
I apologise now
[Amelia] (53:51 - 53:55)
Thanks Frank…anyway thanks for listening to the Building Design, Prime Time Podcast
[Frank] (53:55 - 53:56)
Catch ya’s later
[Carrie]
Bye
[OUTRO] (54:06 - 54:09)
you're listening to the Building Design, Prime Time Podca
