building a new house

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I'm just wondering if someone can tell me whats involved in building a new house.

I have seen houses advertised on sites like AV Jennings for $130,000.

Now if I purchase land for say $220,000 what other expenses are there?

Also what if the block isn't flat?

Does it mean a new house would cost $350,000 all up?

 

[NOT 2 L8]

I'm just wondering if someone can tell me whats involved in building a new house.

I have seen houses advertised on sites like AV Jennings for $130,000.

Now if I purchase land for say $220,000 what other expenses are there?

Also what if the block isn't flat?

Does it mean a new house would cost $350,000 all up?

No not necessarily.

Most builders will advertise a "come on in and talk to us" price which will exclude a lot of things such as internal painting, light fittings, floor coverings, window treatments, fly or security screens, soakwells, landscaping, fencing, airconditioning, gas points, probably only half the powerpoints needed and a myriad of other things. Once they have you sitting down for a chat, the hard sell starts and you end up signing up for double where you started.

Our first build was a nightmare and a very steep learning curve but learn we did and from then on we were a lot smarter and played the game to our rules.

You will have to go through the process to get the experience and if you are not the type of person that enjoys a bit of argie bargie, you should appoint a project manager to do the leg work. It will save you money and agro in the long run.

These days we use an architect who who designs the house, draws the plans, liaise with the council, engineers, quantity surveyors etc. He draws up the very detailed specification and project manages the build. We happily pay him handsomely for his expertise, knowledge, experience and network of professionals and we get a great result at a reasonable price.

You have an exciting road ahead and you will make some blues and as long as you pay attention, seek advice from those in the know and learn, you will be all the better for it.

Good luck and enjoy the ride.

Cheers.

Chrisv.

 

[NBS]

I'm not sure what you will get for $130000 all I can say is get all the information on the construction and time line and (what IS NOT included) and go away and sit down and go over the whole project from site preperation to hand over.

Think about each room in turn, floor covering type, skirting and architraves doors styles, built-in, light fitting etc etc. As for the kitchen look at appliances and get model numbers etc and write them down.

When complete you can hand it back for your price update. When you get the price back take it away and ensure all the items you asked for are included, including checking the appliances model numbers are the same.

While all due care and attention is done there may still be variations if changes are made during construction if at all possible try to avoid these as they can cause delays and possible price hikes.

The best advise I really can give is don't sign anything till you are confident you have covered all the bases and don't be pushed into signing.

I think I have a list for construction process hereabouts if you want it just PM me and I will email it to you.

Thanks
Brian

 

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so how much would it cost to build a 18sq home these days to lockup and living?

here you can see a house starts at $124k

http://www.avjennings.com.au/VIC/HomesToBuild/SingleStorey.aspx

 

[RumpledElf]

You'd probably have to talk to the builder, better to go straight to the horse's mouth to get all the extras.

Not many builders do houses just to lockup. Wouldn't recommend it and doesn't end up cheaper unless you're doing the plastering etc yourself.

The house we are building is listed at $86k BUT then you add on a bunch of compulsary government stuff dictated by location, we made the ceilings higher, and we haven't got as far as overhead cupboards in the kitchen, rainwater tank, floor coverings, carport, gas stove not electric, aircon, window treatments connections to services etc and we're already up to $104k. If we'd tried to get the house at the listed base price it wouldn't have even been POSSIBLE, it wouldn't comply with the 5 star energy rating system and it would have no water/phone/electricity and while you can live with bare floors you can't sell or rent like that. We're looking at closer to $120k to get it to 100% liveable standard.

Our prices are for about a 150sqm 4x2, no garage, on stumps not a slab.

 

[Harry75]

No not necessarily.

Most builders will advertise a "come on in and talk to us" price which will exclude a lot of things such as internal painting, light fittings, floor coverings, window treatments, fly or security screens, soakwells, landscaping, fencing, airconditioning, gas points, probably only half the powerpoints needed and a myriad of other things. Once they have you sitting down for a chat, the hard sell starts and you end up signing up for double where you started.

Our first build was a nightmare and a very steep learning curve but learn we did and from then on we were a lot smarter and played the game to our rules.

You will have to go through the process to get the experience and if you are not the type of person that enjoys a bit of argie bargie, you should appoint a project manager to do the leg work. It will save you money and agro in the long run.

These days we use an architect who who designs the house, draws the plans, liaise with the council, engineers, quantity surveyors etc. He draws up the very detailed specification and project manages the build. We happily pay him handsomely for his expertise, knowledge, experience and network of professionals and we get a great result at a reasonable price.

You have an exciting road ahead and you will make some blues and as long as you pay attention, seek advice from those in the know and learn, you will be all the better for it.

Good luck and enjoy the ride.

Cheers.

Chrisv.

Does the "come and talk to us price " usually include council fees and contributions, or are these extras to allow for as well. allso if buying a block of land in a new estate will the soil tests already be done or is will the builder do this in site prep.

 

[devo76]

Going down this road at the moment. List price was $132,000 for a 20 sqr 4 bedder.
Sounds good but it only goes up.

First they waived the $14,000 fixed site costs which also sounds good but only the most perfect block would come in under this. My slab had to be upgraded as all slabs would. Plus scaffolding,water tanks and hook up blah blah blah it generally adds about $25,000 plus. Also then add tiles,carpet,fittings,grass,driveways,fencing,

long story short my $132,000 property is going to be closer to $190,000.

 

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long story short my $132,000 property is going to be closer to $190,000.

sheez that much more! how can they advertise such a low price if no one can actually purchase at this price! thats false advertising.

 

[mja]

It's in the fine print and also in the building contract. Read it thoroughly.

 

[WinstonWolfe]

Don't forget holding costs, like interest on land and progress payments, rates, and mowing while you are waiting for building to start and during.

Ensure you get copyright on any plans drawn up to your spec.

Ensure you include costing for
draughtsman's plans
soil tests
site leveling
ba submission
council building approval
construction
if turnkey, ensure inclusion of fences, landscaping, driveways, fixtures and fittings, pergolas, andn wired water tanks.
make sure your neighbour pays 50% for fences too, even if they haven't built yet.

It is important to plot cash flow properly on these things, and allow a buffer for additional costs that many builders try and impose.

If you can get your builder to agree to a contract with penalty clauses for runnning overtime, that would be good, but most won't because they can't control the rain or building supplies etc. It is all bs though....usually they just want to get you signed up, then split their time between your job and several other more profitable jobs, so as to keep their profit margin maximized.

Two builders around Brisbane were quoted 22 weeks 18 mths ago when I last looked into it, but they may be quicker now as work is scarcer.

I have a spreadsheet that plots cash flow if you want to use it.

edit: if you are building a ppr, include rent for living elsewhere until completion.

 

[RumpledElf]

Does the "come and talk to us price " usually include council fees and contributions, or are these extras to allow for as well. allso if buying a block of land in a new estate will the soil tests already be done or is will the builder do this in site prep.

Ours they were included, but they want them upfront BEFORE you can do much else and aren't refundable. $2000 for ours to cover soil tests, engineer's reports etc to get to a fixed price contract, then another $2000 to cover council approvals. Both deposits come off the listed price.

We're stuck with our own fence costs as we own the double block the house we live in is on and the new house will go on, and there's no existing fence. We're going to get someone to dig the holes for us with a borer thingy and do the rest of the fence ourselves. Neighbour behind is happy to pay half though - rear fence is 30+ years old and falling down.

Worst is the house we are in now we own, and this house is going to finance the build so we're in a serious bind for finance - we won't have the rental income until we move out of it but we need finance before it arrives, and trying to sell it so we can move to the new house on settlement is going to mean bridging finance, which apparently doesn't exist. I'm hoping a bank will accept anticipated rental income, since the equity in our current house covers the new build 100% and the rent will cover the payments 100%.