Hi All,
I am currently in North Queensland meeting with our builders and visiting our builds up here.
In this article I have included photos from a completed SDA that has participants ready to move in, as well as some at frame and enclosed.
I have also included photos of Slab, Frame and Enclosed so you can see stages before the internal work or Fit-out can start. The fit-out involves some of the costly inclusions like the Kitchen and the electrical appliances, bathrooms and baths, Showers and tiling, air-conditioning etc In North Queensland you can see we build in block as the building code requires this due to the possibility of cyclones, of which we have had three in Cairns this year.
In Victoria we use brick or Hebel concrete panels as they represent the most durable and best finish for the exterior.
Please see below the stages you will pay at when you purchase a PIP SDA, and remember that these drawdown payment by you by cash or from you bank loan are after each stage is reached, and the builder has supplied proof they work has been done.
In an Australian residential build, the payment milestones typically follow a structured schedule based on the progress of the construction work. Here’s a breakdown of common milestones for payments:
1. Deposit/Down Payment
Upon signing the contract, the homeowner usually pays a deposit of5% of the total building cost to secure the services of the builder. This deposit allows the builder to start the delivery of the required council and in some cases such as SDAs the building section of SDAs.
2. Base Stage
- The first payment milestone is often tied to the completion of the base stage, which includes excavation, foundation, plumbing and then pouring of the concrete slab.
- Typically, this payment covers around 10% to 15% of the total contract price.
3. Frame Stage
- The next payment is made upon completion of the framing stage, including the installation of the structural framework, walls, and roof trusses. If the property is built in brick the payment is due once the walls reach the height of the roof trusses.
- This payment typically represents around 15% to 20% of the total contract price.
4. Lock-Up Stage
- Payment at lock-up stage is made when the building is enclosed, including installation of external walls, windows, doors, and roof covering. This is the stage that once reached allow the build to continue even while it is raining.
- This payment stage typically accounts for around 20% to 25% of the total contract price.
5. Fixing Stage
- The fixing stage involves the installation of internal fixtures and fittings such as plumbing, electrical wiring, cabinetry, tiling, and flooring.
- Payment at this stage usually represents around 20% to 25% of the total contract price.
6. Completion/Final Stage
- The final payment milestone occurs upon completion of the construction project, including finishing touches, final inspections, and obtaining relevant certifications.
- This payment typically covers the remaining balance of the contract price, minus any retention amount agreed upon in the contract.
It’s important for homeowners to review the payment schedule outlined in the building contract and ensure that payments are tied to specific milestones as outlined above. Additionally, keeping track of progress through regular site inspections can help ensure that payments align with the actual progress of the construction work.
As a Full Service business Positive Income Properties deliver turnkey completed property with property management in place and tenant ready.
Call or email us to discuss you goals in owning a passive income property investment.
Gil Elliott is the Managing Director and Founder of Positive Income Properties. Gil has a rich background in business consulting and property investment. All of these he gained in his nearly four decades of experience in the real estate and marketing industries.
