Can you build 2 townhouses for $180k

Ive never done a subdivision, and was looking to do one recently,

and I started a thread on how much an actual budget townhouse would cost to make, I got various responses from $150k-$200 k each,

well in my travels, I have met this quite young talented builder/carpenter/tradesperson

and he claims to have built 2 townhouses for about $110k each or $180k for 2 for a few of his clients, by using his family members and paying them normal rates, and him billing himself out per hour/per day rates, and not making any extra. so basically a mates rates price......

to me I thought it would cost somehting like at least $340k for 2 townhouses on a budget, and hence I didn't pursue it that far,

however, if you really can do it for $180k for two then that is really encouraging, I may even offer this young guy a deal down the track...

is this young guy dreamin' ? initally I thought he knew of someone who claimed the above, but ive asked him to bring in some photos, and he says he has done a few of them already.....
 
There's 2 components that make up the cost. All the materials you need, and a labor component.

If he has some way of sourcing materials way below cost and knows people that don't value their time very well, then anything's possible. Assuming he does quality work, I'd be getting him to build a few. Chances are the same rate won't be available when it's for someone other than himself though. Probably wouldn't forgo the 'cream' for another.

Same as anything really. A mechanic will charge you $169 to service your car but it's just a $20 oil filter and a 'check over'.
 
Look PM, let's say 1 x townhouse costs $160K retail.
Most builders margins are 25-30%. So let's go with 25% because this is down the cheaper end of the scale of buildings. The builder is making $40K gross profit max.

This is getting the cheapest subbies and materials he can get. So the builders raw cost is $120K for 1 x townhouse.

So for your guy to do it for $90K, he has to save an additional $30K (by giving his own labour way free??). I cannot see how he could do it or why he would want to at a loss or making 0%. :eek:

Unless he is using dodgy materials - oh you wanted cement in that mortar, or do you really need reo in that slab? ;)
 
Ive never done a subdivision, and was looking to do one recently,

and I started a thread on how much an actual budget townhouse would cost to make, I got various responses from $150k-$200 k each,

well in my travels, I have met this quite young talented builder/carpenter/tradesperson

and he claims to have built 2 townhouses for about $110k each or $180k for 2 for a few of his clients, by using his family members and paying them normal rates, and him billing himself out per hour/per day rates, and not making any extra. so basically a mates rates price......

to me I thought it would cost somehting like at least $340k for 2 townhouses on a budget, and hence I didn't pursue it that far,

however, if you really can do it for $180k for two then that is really encouraging, I may even offer this young guy a deal down the track...

is this young guy dreamin' ? initally I thought he knew of someone who claimed the above, but ive asked him to bring in some photos, and he says he has done a few of them already.....

is he a registered builder?
 
Actually the Comfort range with colorbond roof is $181,100.00 ;)

I would call it a villa being single storey. Aren't townhouses dble storey?

Townhouses, also sometimes called row houses, can be built as single or multi-storied structures. They can be attached to other houses with one or both sides sharing common walls, depending on whether the unit is in a center or end position. Townhouses can be grouped together as small units, such as duplexes or triplexes, or they can be a part of a huge townhouse complex. If your townhouse is located within one of the larger complexes, you may be required to pay fees for the upkeep of common areas, as well as taking care of your own yard.
 
i think it varies depending on which State you're in...in SA Townhouses are typically 2-storey but unit-sized homes....row dwellings are are 3 or more homes all with street frontage but attached...you get where i'm going...different names depending on State.

that build cost seems rather cheap but then again that all depends on the size of the homes. If they're 80m2 homes then yes it would be possible :D

we've done our fair share of getting homes quoted in SA and generally the cheapest we've been able to find that builds decent homes in a decent time frame (for a builder) is around $820/m2 for a complete house. But generally they come in at around $1000/m2 on average. If the townhomes you're referring to are 2storey well then this increases significantly (extra things like scaffolding etc)

hope this helps
 
Top