Building cost - Question for Sue78
- Thread starter soyabean
- Start date
That's what Home Owners Warranty partly covers SB. The builder will have to take this out before construction. As Sue says, there are no real guarantees but I know that your positive nature will help you out. If you aren't dependant on borrowing or have a large buffer then interest holding costs aren't such a problem.
From memory I don't think you've had the experience of building in the past? If it is your first development it may be safer to do one at a time. On the other hand you are working to a deadline if the FHOG is coming into play and you are leveraging off this market.
You also need to consider the marketing aspect of the project. Your competition will probably have a lot more experience than you which may put you at a disadvantage. Have you allowed for commissions and CGT in your calculations?
Keep asking the questions and sharpening your feasibility study SB. We are here to help in whatever way we can.
So no one is likely to make any profit by build/sell ?And do not forget after all of your hard work if you are lucky enough to not end up in court with builders disputes.
Actually make a profit after real estate commissions.
Then you will be up for GST .
Then later capital Gains tax.
Good Luck
SB,
You will profit if you play it safe and ensure your margins are carefully calculated. Go through the obvious costs, Land (+purchase costs, SD on land and mortgage, legals to purchase, etc.), consultant costs (geotech, contours, etc), Construction costs - (contract to build, landscaping, fencing, etc), selling costs, finance costs and interest, your labour costs to organise and oversee, cgt, and finally contingency costs, (normally 5%).
Go to a local agent or two and show them the planned development and get an appraisal of what the finished product would sell for in the current market. Then make your own judgement on the viability of the development based on the profit margin.
Do you already own the land?
Thanks Rockstar.
The blocks are from a small development, I am contracting to buy them at the moment. I think the land price is good, so as a my first house/land package venture the worse case is I won't make as much money as i would hope (and take it as a learning process) but I don't believe I will loose. Stage 1 got sold within 2hrs of release.
BTW I have built a number of times just that they were not project homes.
Hi Sue, I saw Andrew of Coral Home this morning and mentioned your name .
The blocks are from a small development, I am contracting to buy them at the moment. I think the land price is good, so as a my first house/land package venture the worse case is I won't make as much money as i would hope (and take it as a learning process) but I don't believe I will loose. Stage 1 got sold within 2hrs of release.
BTW I have built a number of times just that they were not project homes.
Hi Sue, I saw Andrew of Coral Home this morning and mentioned your name
.Yes SB,
I believe you will succeed with that mindset. I exceeded my own expectations upon completing my first development which was carried out with only a rough feasibility calculation. I wish you all the success and hope you benefit from the learning experience.
Would appreciate being kept informed on your progress.
I believe you will succeed with that mindset. I exceeded my own expectations upon completing my first development which was carried out with only a rough feasibility calculation. I wish you all the success and hope you benefit from the learning experience.
Would appreciate being kept informed on your progress.
he's a nice guy. you may get $1k off per house plus another $500 from my referral discount if you do decide to go with Coral. I keep telling him I only choose Coral because of him coz Coral's kitchens are just horrible.
But why are you all the way in Calamvale when they have a display in Heathwood?
I agree with Rockstar. It's all in the mindset. It's a good learning experience, you should be able to clear min $50k per house and anything above is a bonus. That's what i always tell myself and each time it has exceeded my expectations. The sales guy at Stylemaster Homes in Heathwood said to me that I should aim higher rather than $50k and if that was all I was after then I shouldn't even bother doing H+L packages. He was really rude and talked down to me the whole time when he realised I wasn't going to build with them for this particular project coz it didn't fit my block.....the silly guy tried to convince me to buy another block of land in a totally different location just to build that house!
But why are you all the way in Calamvale when they have a display in Heathwood?
I agree with Rockstar. It's all in the mindset. It's a good learning experience, you should be able to clear min $50k per house and anything above is a bonus. That's what i always tell myself and each time it has exceeded my expectations. The sales guy at Stylemaster Homes in Heathwood said to me that I should aim higher rather than $50k and if that was all I was after then I shouldn't even bother doing H+L packages. He was really rude and talked down to me the whole time when he realised I wasn't going to build with them for this particular project coz it didn't fit my block.....the silly guy tried to convince me to buy another block of land in a totally different location just to build that house!
I normally stick to projects around $360k lowsets but I need to build close to home this year.
The land is on Benheim St, close to Woolies and Calamvale College. It's I think about 530sqm. They are all advertisedfor $268k except they had a special on one block for $260k (exactly the same as the others) and I talked them down to $255k which is ok for Calamvale. The developers are asians actually from Sunnybank, maybe I could have got more discount but I did get about 10 weeks settlement.
I have to do 2 storey to have a nice sized garden. Single storey is only about $40k less.
For $520k as u know, there's no way you can get a big brand new 2 storey in that area.
$520k is inc everything +$maybe $20k for interest and miscellaneous...oh it may not inc ducted a/c. I'm getting quotes. It's not a budget house either. I plan to do the sandstone and metal fencing with gate but it is a brick house with part rendering. I want more a colonial yet modern look but thinking of using polished timber instead of polished porcelain. I love the look of houses in melb and adl...really sick of full render. If u drive through kuraby, dbl storey, full render houses are starting to mould and looks yuck. But I did pay for brick upgrade and flushed offwhite mortar. Brick and brick laying choices in QLD is shocking..probably coz most ppl go for render.
I would live there myself if I wasn't just out of the dragon triangle lol If I only I could build for that price in Kuraby, 8 mile plains.
The land is on Benheim St, close to Woolies and Calamvale College. It's I think about 530sqm. They are all advertisedfor $268k except they had a special on one block for $260k (exactly the same as the others) and I talked them down to $255k which is ok for Calamvale. The developers are asians actually from Sunnybank, maybe I could have got more discount but I did get about 10 weeks settlement.
I have to do 2 storey to have a nice sized garden. Single storey is only about $40k less.
For $520k as u know, there's no way you can get a big brand new 2 storey in that area.
$520k is inc everything +$maybe $20k for interest and miscellaneous...oh it may not inc ducted a/c. I'm getting quotes. It's not a budget house either. I plan to do the sandstone and metal fencing with gate but it is a brick house with part rendering. I want more a colonial yet modern look but thinking of using polished timber instead of polished porcelain. I love the look of houses in melb and adl...really sick of full render. If u drive through kuraby, dbl storey, full render houses are starting to mould and looks yuck. But I did pay for brick upgrade and flushed offwhite mortar. Brick and brick laying choices in QLD is shocking..probably coz most ppl go for render.
I would live there myself if I wasn't just out of the dragon triangle lol If I only I could build for that price in Kuraby, 8 mile plains.
Can you break it down any further, I still can't see how you can do it for 520k
255k land
242k house (From previous posts i take it that it's a coral home, so to be 42sq I assume its the Bondi)
10k stamp duty
15k holding cost
12k floor coverings (couldn't tell from the coral site if these were included)
10k a/c
10k landscaping
1k legals
I still see how you could make money if you can sell for the low to mid 600's but I'm interested as to how you got the figure of 520k
255k land
242k house (From previous posts i take it that it's a coral home, so to be 42sq I assume its the Bondi)
10k stamp duty
15k holding cost
12k floor coverings (couldn't tell from the coral site if these were included)
10k a/c
10k landscaping
1k legals
I still see how you could make money if you can sell for the low to mid 600's but I'm interested as to how you got the figure of 520k
I estimate $520 to $540k. May not have high holding costs coz I might move money into the land loan.
It's not Bondi, the house is $220k or less I think it's 37sq + patio of 4 squares. Patio will be half under main roof and the rest timber pergola. It's the one where each bedroom has its own ensuite and wir.
If you take the block to a builder and ask them to price it all up for you, the builder package is roughly $520 to $539k turn key but probably a smaller house like 34 sq. I think Clarendon can do it.
The lowsets in Calamvale are not moving over $550k. It's a bit worrying. If the bank valuation on completion comes back above $650k then I probably won't be selling. If the valuation comes back $700k+ then I'll be ecstatic.
You just need one rip off builder like Ausbuild doing H+L packages in there to push the prices up for a good valuation.
It's not Bondi, the house is $220k or less I think it's 37sq + patio of 4 squares. Patio will be half under main roof and the rest timber pergola. It's the one where each bedroom has its own ensuite and wir.
If you take the block to a builder and ask them to price it all up for you, the builder package is roughly $520 to $539k turn key but probably a smaller house like 34 sq. I think Clarendon can do it.
The lowsets in Calamvale are not moving over $550k. It's a bit worrying. If the bank valuation on completion comes back above $650k then I probably won't be selling. If the valuation comes back $700k+ then I'll be ecstatic.
You just need one rip off builder like Ausbuild doing H+L packages in there to push the prices up for a good valuation.
Thanks, Calamvale varies a lot as there are so many different areas, yours on the other side of Beaudesert road and I assume close to the Montrose estate area and not back towards Algester have higher values. I do some friends that brought one of the display homes in Montrose estate, large high set including all the display furniture for 690k.
Also if you want any contact's for your a/c PM me, I can put you in contact with people that just do work for project builders and don't advertise. They do budget lowset ducteds for around 6.5k. I'd give you a quote myself as I live just round the corner but my days of climbing around on building sites are behind me.
Also if you want any contact's for your a/c PM me, I can put you in contact with people that just do work for project builders and don't advertise. They do budget lowset ducteds for around 6.5k. I'd give you a quote myself as I live just round the corner but my days of climbing around on building sites are behind me.
Hi Sue & James
House/land package for sale on Benheim :
http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=105612053&rsf=emailalert-propdetails
House/land package for sale on Benheim :
http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=105612053&rsf=emailalert-propdetails
Interesting....I try not to do any research now until completion coz I don't want to stress out lol The builder isn't making any/much money, well still profit from buildingand maybe an extra $30 from H+L. I think for a 27sq house, I priced up about $480k.
Chances are I will get rid of this house coz renting out big houses is a nightmare. PPl don't want to pay $650p/w and most ppl don't need such a big house. I don't have the energy to rent it room by room.
I have only been to Benheim st twice. About 1 mth ago and there was only 1 completed house which is a bit worrying!! But I know quite a few ppl who send their kids to Calamvale College, apparently it's a good school so I would imagine it's a good location being close to a big school.
With 2 storey houses in this area I think parklane by Clarendon is the most popular design. I see it everywhere. But for value I think Plantation has excellent deals last time I checked. But the house we wanted did not fit the block. Though we have built with them b4 and the quality was bad.
http://www.realestate.com.au/cgi-bi...r=&cc=&c=72542017&s=qld&snf=ras&tm=1237248834
this is a nice house but the garden is a huge no no...it won't appeal to the asians. there's no privacy.
there's only 4 pages of houses for sale over $500k with 5brs+ which is a bit of a relief.
http://www.realestate.com.au/cgi-bi...r=&cc=&c=72542017&s=qld&snf=ras&tm=1237248834
lots of overpriced houses. that's very expensive for a small house.
tbh, I'm not happy with this project. Having to spend $530k to make the same amt of $$ I would if I spent $340k. oh well...we'll see.
this is a nice house but the garden is a huge no no...it won't appeal to the asians. there's no privacy.
there's only 4 pages of houses for sale over $500k with 5brs+ which is a bit of a relief.
http://www.realestate.com.au/cgi-bi...r=&cc=&c=72542017&s=qld&snf=ras&tm=1237248834
lots of overpriced houses. that's very expensive for a small house.
tbh, I'm not happy with this project. Having to spend $530k to make the same amt of $$ I would if I spent $340k. oh well...we'll see.