Need your help in finalizing the builder

Discussion in 'Investment Strategy' started by Anil Kumar, 4th Sep, 2018.

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  1. Anil Kumar

    Anil Kumar Member

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    I am planning to build a house for me to live in. For the same size house and layout, with the same inclusions, I got a quote of around 270K from Metricon and around 245K from a custom builder. I came to know about this custom builder from two of my friends who built their houses with them. I went and saw their houses and found no issues with their workmanship. The only difference between Metricon and this custom builder is the structural warranty. Metricon is giving 25 years of structural warranty whereas the custom builder is giving only 7 years of structural warranty. Can you please help me out answering the following question

    [Q]. Is it really worth to go with Metricon and pay 25k more to get 18 more additional years of structural warranty?

    If yes, why?

    Thanks,
    Anil
     
    Anil Kumar, 4th Sep, 2018
    #1
  2. mikey7

    mikey7 Well-Known Member

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    mikey7, 5th Sep, 2018
    #2
    Silverson likes this.
  3. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    Interesting that the customer builder is cheaper, but that's not what I'd base a decision on either way.

    If your friends are happy with the process and results they got, there's where I'd go.

    We're currently building in Melbourne's east with a small builder. There's been some challenges in the site and construction itself, but the builder has worked with us and has been great to deal with.
     
    Peter_Tersteeg, 5th Sep, 2018
    #3
  4. Otie

    Otie Well-Known Member

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    No don't go with Metricon for the warranty- it is only on the structure, and they will likely get out of ever honouring it. The structure is basically only the frame. Nothing can really go wrong with that unless it is not built properly to begin with- if you get a building inspection done this would find any defects during the build if you have an inspection done at each stage. I built with Metricon and their finish left a lot to be desired. We went through about 6 different supervisors (they seem to have a quick turnover) and each new one would blame the last one for the shocking work (walls being bent etc).
    The only think I don't like about the smaller builders is the security (i.e. if they go bust)- the smaller ones seem to go under a lot more often than the large ones that have been around for years. Having said that I think that is unlikely, and as long as you don't pay for work that hasn't been done and don't handover progress payments until that stage is complete you should be okay
     
    Otie, 5th Sep, 2018
    #4
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  5. samiam

    samiam Well-Known Member

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    That’s a pretty good price for Metricon. How many bedrooms are you building?
     
    samiam, 10th Oct, 2018
    #5