How to begin a career in developing
- Thread starter GaryK
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- build development invest
How does anyone accurately price construction costs? I would say quotes is your only option for accurate. But could be too late to wait for quotes, especially without plans etc. So I would be leaning off a mentor/friends/SS as much as possible. For my development I'm looking to use a building broker who's paid only if go through there builders, I will still own the plans and can go elsewhere. But they are confident there builders will come in below my quotes (including there cut) that I'll be getting elsewhere.
Refer to link for BMT Australian Construction Costs http://www.bmtqs.com.au/construction-cost-table
Refer to link for BMT Australian Construction Costs http://www.bmtqs.com.au/construction-cost-table
It's the only place to start. If you don't know what you don't know how do you expect a positive outcome.
Do you have plans? What are they quoting on?
I've found when I've done this in the past some people hold me to this (???). You may find builders very reluctant to do this for you.
When you are at the pre-plan stage and looking at blocks and deciding which one to buy it can be a mine field.
Things you need to know to help rough out the feasibility are
- how much is it approx to construct a single storey dwelling per square metre in your state at a suitable level of finish. For example I know in Perth it is roughly $1500/sqm
- how much is it approx to construct a double storey dwelling per square metre in your state at a suitable level of finish. Again I know for Perth and the areas I target $2500/sqm is ok
- how slopey is the land, how much will that impact on earthworks costs
- how much does getting sewer, power, gas and water cost for 1, 2, 3, 4 etc dwellings
- how much does it cost to get Council approval - DA, Building Permit, Council contributions etc
- how much will it cost to finish off the project, titling etc
Many of these things you can learn on here by people sharing their development threads or asking. You can also seek help from mentors, quantity surveyors and builders. However remember that most advice is general and you need to adapt it to your site and your project. ALWAYS include a contingency amount of 5% (at least) to cover the things you don't know, don't expect and general rises of the market.
Things you need to know to help rough out the feasibility are
- how much is it approx to construct a single storey dwelling per square metre in your state at a suitable level of finish. For example I know in Perth it is roughly $1500/sqm
- how much is it approx to construct a double storey dwelling per square metre in your state at a suitable level of finish. Again I know for Perth and the areas I target $2500/sqm is ok
- how slopey is the land, how much will that impact on earthworks costs
- how much does getting sewer, power, gas and water cost for 1, 2, 3, 4 etc dwellings
- how much does it cost to get Council approval - DA, Building Permit, Council contributions etc
- how much will it cost to finish off the project, titling etc
Many of these things you can learn on here by people sharing their development threads or asking. You can also seek help from mentors, quantity surveyors and builders. However remember that most advice is general and you need to adapt it to your site and your project. ALWAYS include a contingency amount of 5% (at least) to cover the things you don't know, don't expect and general rises of the market.
