Building Options

R

Reality Cheque

Hi,

I'm looking to start my first building development in the next 6 months. So far I've only bought existing houses and done subdivisions so have no experience with building whatsoever.

I have a newly subdivided 5 acre block just outside a regional city and I think the time is right to have a crack at building. The land and finance is sorted, I just have no idea where to start or what the various options are.

As this is an investment property the main concern will be keeping costs down but this will need to be balanced with the fact that I dont have the time or experience to take on too much of the project management myself.

What are my options?

Rgds

RC
 
OK, I probably should be more specific.

Here's a few questions that I have-

What is the process to get several builders to quote on my specific plans?

Do I get a draftsman/ architect to draw up what I want and then get builders to quote?
Would a draftmans plans include all materials so I could then source them myself?

Roughly what does it cost for a draftmans to draw up plans? I can get a standard set of plans from a kit home supplier for around $1000. Would this be cheaper than getting them drawn up. (Assuming that the plans they have suited).

Roughly how much might I stand to save by sourcing the materials myself rather than the builder supplying or buying in kit form?

Thanks

RC
 
Project builders with their own plans already are often the cheapest way to go. Some of the quality can be lacking, others are great.

Other options
Could you get a free removal house and put on it? Or a prefab one?
 
Here are a couple of companies I've talked to in WA about a build i'm in the middle of

http://www.ventura-homes.com.au/

http://summitprojects-px.rtrk.com.au/

These companies have some pretty cheap plans on there websites, if you do the same for NSW builders you will get the same results. You don't need to go to a draftsman if its a basic build for an IP.

The prices don't include site works, which may not be much for you if you have a blank block. and also they don't include window treatments, carpet treatments, painting etc but i think these can be arranged by yourself at a much cheaper price
 
RPI said:
Project builders with their own plans already are often the cheapest way to go. Some of the quality can be lacking, others are great.
Click to expand...

Agreed, exactly what I was going to say. Figure out your target market and find the best value for money builder with plans that will meet your requirements.
 
My preferred option would be a free removal house. Been looking for 3 years now and haven't found anything close enough to be viable.

Have looked at transportable homes and this is definitely a consideration.

I assumed that project builders would be more expensive than other options so will have to look at some of these also.

Generally speaking, which option would be most cost effective-

1. Project builder
2. Kit with plans and get 3 builders to quote.
3. Transportable

I know it's probably an impossible question to answer but I'm trying to narrow things down a bit. I'm not sure whether I should be spending time comparing the different options or focus more on comparing several companies within one of the options if it is usually the cheaper option.

On the surface I would have thought a kit/plans and get 3 prices might be the most competitive way to go?

Thanks

RC
 
I wouldnt go transportable homes unless you want to end up with a trailer park look to your development which would affect your buyers demographic. Do you want to sell or rent. Selling would require a whole different type of fit out than you could get away with if you just want to rent. I would think you would have to do some work on getting quotes for kit homes against project homes. The kit homes might be able to supply builders names who they know will put up their homes, but I doubt whether you will get builders to quote for putting up kit homes as there wouldnt be the margins in it for them. You wouldnt be able to do it yourself without a builders license plus for a first timer you would be out of your depth on kit homes, there are too many trades to coordinate and keep track of pricing, extras etc. Whilst a project home might cost a smigeon (technical term) more, you would know an end figure you have to deal with
 
Reality Cheque said:
Hi,

I'm looking to start my first building development in the next 6 months. So far I've only bought existing houses and done subdivisions so have no experience with building whatsoever.

I have a newly subdivided 5 acre block just outside a regional city and I think the time is right to have a crack at building. The land and finance is sorted, I just have no idea where to start or what the various options are.

As this is an investment property the main concern will be keeping costs down but this will need to be balanced with the fact that I dont have the time or experience to take on too much of the project management myself.

What are my options?

Rgds

RC
Click to expand...

How many houses will the development require?
Did you want to sell them as house and land or completed homes?
 
Reality Cheque said:
My preferred option would be a free removal house. Been looking for 3 years now and haven't found anything close enough to be viable.

Have looked at transportable homes and this is definitely a consideration.

I assumed that project builders would be more expensive than other options so will have to look at some of these also.

Generally speaking, which option would be most cost effective-

1. Project builder
2. Kit with plans and get 3 builders to quote.
3. Transportable

I know it's probably an impossible question to answer but I'm trying to narrow things down a bit. I'm not sure whether I should be spending time comparing the different options or focus more on comparing several companies within one of the options if it is usually the cheaper option.

On the surface I would have thought a kit/plans and get 3 prices might be the most competitive way to go?

Thanks

RC
Click to expand...

Which is cheaper? Which is better value? Which is easiest? each has diferent answers.
 
westminster said:
How many houses will the development require?
Did you want to sell them as house and land or completed homes?
Click to expand...

Just one house.

The rough plan is if there is obviously a good profit margin then build and sell completed.
If the margin looks a bit tight or a bit risky offer house and land package so we can be more certain of the margin before we start.

If all else fails I'd be happy to keep as a rental.

RC
 
tobe said:
Which is cheaper? Which is better value? Which is easiest? each has diferent answers.
Click to expand...

True.

I definitely need easy.

And I'm starting to see the difference between price and value. Early indications are that transportable may be around $60,000 cheaper but the end product would be worth $100,000 less.

RC
 
fernfurn said:
I wouldnt go transportable homes unless you want to end up with a trailer park look to your development which would affect your buyers demographic. Do you want to sell or rent. Selling would require a whole different type of fit out than you could get away with if you just want to rent. I would think you would have to do some work on getting quotes for kit homes against project homes. The kit homes might be able to supply builders names who they know will put up their homes, but I doubt whether you will get builders to quote for putting up kit homes as there wouldnt be the margins in it for them. You wouldnt be able to do it yourself without a builders license plus for a first timer you would be out of your depth on kit homes, there are too many trades to coordinate and keep track of pricing, extras etc. Whilst a project home might cost a smigeon (technical term) more, you would know an end figure you have to deal with
Click to expand...

I'm probably going to have to decide between selling and keeping to rent. As far as rental return goes the transportable would yield a lot better but agree that people may be turned off buying by the trailer park look. Unless I can make some changes to a transportable to disguise the fact. Then it probably wont be as cheap!

Definitely wouldn't consider coordinating a kit build myself. I have heard of people getting builders to quote on a kit construction though.

RC
 
Ah if it's just one house then the world is your oyster with options.

I thought when you said development that you were filling up the whole 5 acre with blocks of land and houses.

I think start by talking to a few project home places to get a feel for the options and costings. If it's regional they may put higher margins on it for travel etc so that may dictate that you are better off going to a smaller local builder.

With extras builders often put a 30% markup on something but they can also charge like wounded bulls if you want to supply it. Say you want to supply your own oven instead of their standard $500 oven. They will credit you $100 for said oven and then you supply your $600 oven. It would have been better to take the oven they supplied.

If you need a mortgage to fund the construction of this a bank will prefer a traditional build by a builder than a transportable or a kit home.
 
westminster said:
Ah if it's just one house then the world is your oyster with options.

I thought when you said development that you were filling up the whole 5 acre with blocks of land and houses.

I think start by talking to a few project home places to get a feel for the options and costings. If it's regional they may put higher margins on it for travel etc so that may dictate that you are better off going to a smaller local builder.

With extras builders often put a 30% markup on something but they can also charge like wounded bulls if you want to supply it. Say you want to supply your own oven instead of their standard $500 oven. They will credit you $100 for said oven and then you supply your $600 oven. It would have been better to take the oven they supplied.

If you need a mortgage to fund the construction of this a bank will prefer a traditional build by a builder than a transportable or a kit home.
Click to expand...

I'll be happy to just pull the one off for a start!

There are 3 project builders locally so there are options. Also not ruling out smaller local builders as well.

No mortgage involved so this may give us a bit of flexability.

RC
 
Reality Cheque said:
All of the project builders that I've spoken to want $3000- $5000 before they can give a firm quote.
This is for soil tests, site survey etc.

Could someone explain to me the best process for conducting a competitive tender?

RC
Click to expand...

A lot of the first tier project builders do this. They then take that off the end contract price if you proceed.

The Metricons and the like do this.

It is more to do with time wasters.

You need to find a design that suits you perfectly, at the right price point and don't change a thing. Start making changes and the price sky rockets.
 
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