Building vs house and land package

[Of The Vultures]

Some weeks old, but got me thinking:

http://www.cqnews.com.au/story/2012/08/24/outsiders-cash-in-on-building-boom/

I'd like to buy in Emerald QLD within the next 6-12 months or so but I suppose the issue of buying land and building vs buying a ready made H&L package would apply to many regional areas where the cost of building is high(er).

Land in the recent Emerald Highfields Estate release cost somewhere around $180k I believe. I'm not sure how much a full turn-key build cost would be but I assume you wouldn't get much change from $300k. So $480k total (plus stamp duty etc?). Does anyone go down that road when ready H&L packages are available for that price? What am I missing here?

 

[beachgurl]

Is the H&l package one where you only pay 10pc up front then nothing til completion? Or do u still need to make progress payment like you would when doing separate land and house contracts?

Generally it is cheaper to find your own builder to build on your land as the developer needs to make additional profit to cover the holding costs during your build (by you not making progress payments). But then on the other hand you need to factor in the cost of the mortgage on the progress payments during the build to work out if building separately is any cheaper.

Unless it is really tough for developers to offload stick in that area (sorry I don't know anything about emerald) I would expect that buying h&l would be significantly more expensive.

 

[MTR]

Some weeks old, but got me thinking:

http://www.cqnews.com.au/story/2012/08/24/outsiders-cash-in-on-building-boom/

I'd like to buy in Emerald QLD within the next 6-12 months or so but I suppose the issue of buying land and building vs buying a ready made H&L package would apply to many regional areas where the cost of building is high(er).

Land in the recent Emerald Highfields Estate release cost somewhere around $180k I believe. I'm not sure how much a full turn-key build cost would be but I assume you wouldn't get much change from $300k. So $480k total (plus stamp duty etc?). Does anyone go down that road when ready H&L packages are available for that price? What am I missing here?

Hi
I built quite a few homes in Perth and I purchased my own land, shopped the builder during the boom of 2001-6. This worked well, cutting costs as I was able to source the best deal myself.


I think a couple of things I would look at:

How long will it take to build, in Perth at this time it was taking 18 months each house because it was a booming market. This will impact on holding costs. Work out the costings to complete/finish the home, it was costing me about $20-30K to finish the home ie painting, carpets, blinds, landscape etc.m (Home approx 220 sqm)

Building is great as long as there is plenty of fat, at least 20%+ profit after completion. Its always nice when it is a rising market as you can make much more than 20%.

There are some negatives to consider, you are tieing up your money for the duration of project, in particular if you have several on the go. I found that in a booming market this was a pain as I missed out on many opportunites.

Make sure you do lots of research on this area as on completion of the build you don't want to find out that values have dropped and that there is an oversupply and that you could buy a completed house considerably cheaper.

I know nothing whatsoever about Emerald so can not help here.

Cheers MTR

 

[Of The Vultures]

hmm, thanks for the replies guys, interesting things to think about. Maybe it's an issue of quality then. I suppose a personal visit to Emerald will be in order.

 

[NPS13]

hmm, thanks for the replies guys, interesting things to think about. Maybe it's an issue of quality then. I suppose a personal visit to Emerald will be in order.

Yup, get on the ground.

 

[qldpropinv12]

mayfair

Apparently the owner for Mayfair ridge has been knocked back on his DA for other stages and has been requested by Council to resubmit a new D.A, resulting in him having a "blew" with council, the effect of this is that the builders who have acquired this presold stock are now pulling out of their contracts and walking, and that civil contractors have now taken their equipment off site, so be careful if you have purchased in the later stages.

 

[sapan]

In My Opinion Buying House and Land Package is worth to check.

I have no idea about Specifically Emerald QLD as i sign a deal with Manor Lakes(http://www.manorlakes.com.au/house-and-land-packages) in Victoria.

The benefits i can see to buy house and Land Package are fixed site costs, Some time driveway and fencing allowance included and mainly Peace of Mind.

i did some research in Emerald QLD and to me "mayfairridge" looks great to me.