PPOR Build Perth - Kit home builder or custom builder

J

justlearning

We've made the decision to knock down our place and build a new bigger family home. We have a 676 sqm block in Kensington.

We've been speaking with a few builders (Aveling, Red Ink, Dale Alcock) and are in the process of getting rough plans sketched up and costed (modified quite a bit from their standard plans). We really love Dale Alcock display homes, although it seems you pay a premium for the name.

However, I think it will be really hard to compare apples with apples. Each plan will be slightly different and of course all the inclusions will be different.

I'm thinking we'd be better off getting our own draftee to draw up the plan, specifying all the inclusions we'd like and then shopping around for a builder (not necessarily one of the big builders). Budget is 300k for the build.

Would any of the Perth developers on here recommend their builders for their own PPOR? Or anyone gone with one of the big builders and would recommend them?

thanks
 
^^^ - geez, nasty much?

i don't recommend owner builds for your first build - i've done a fair few and i still wouldn't do it myself. i know you're not proposing it, but sometimes it "just seems easier" - but the truth is, it's far from it.

I've had great experience with good builders - it really depends on your spec and your level of finish.

have a chat to the likes of Amano Homes, Inspired Homes, Perth Home Builders etc - or an even better proposition, speak to Michael Clarke at New Home Building Brokers - he'll find you what you need and he's a straight up kinda guy.
 
I've used Inspired Homes to design and build - not my PPOR - but I would be happy living in a home built by them for a PPOR - it would be a lot better than my Perceptions home.

It is hard to compare apples with apples when shopping around with builders. One of the advantages for going with a smaller builder is that there is less layers to go through when you want to get a problem fixed. I remember distinctly trying to find someone at Perceptions to fix a major fckup and it being near on impossible - no one seemed to care. Finally we weaseled our way up the line to the construction manager, threw a tanty and got someone onsite to inspect and agree that a wall needed tearing down and replacing.
 
on 300 k in perthit may be really really hard to get around the volume considerations of using a one man band.

just make sure you choose one with sound financial stability..............................


9 mths it took a client to sort out a failed builder... and guess who was paying interest most of that time.

ta
rolf
 
Off to see the red ink show room this morning. One advantage of the big builders is they have all their stuff on show so we can visualise it. Quite exciting really. Our last build was for investment only...took us about 5 min to make colour and tile and carpet choices for the whole house.
 
Another thing I've been wondering is if we're under capitalising for the area. Is there a rule of thumb for how much to invest in a home compared to land value? Block is prob worth around 700k.
 
for a $700k block you are in danger of under capitalising but it depends on your obejctive, if you just want holding income and deductions then who cares. $700k block would, without knowing detaisl, suggest more like a $500k 2 storey with an end value of $1.4m - $1.6m
 
interesting story i heard yesterday - developer goes for a lock up claim with his big 4 lender at the height of the gfc. lender reluctant to part with cash and lookign for any excuse, so knocks back claim on the basis of a very minor part of the lock up not done, one thing leads to another, builder terminates, new builder appointed, 2 years go by. has resulted in a multi million $ claim against the bank which it looks like they will be up for. crazy stuff going on out there

losing your builder half way thru is fatal
 
Rolf Latham said:
on 300 k in perthit may be really really hard to get around the volume considerations of using a one man band.

just make sure you choose one with sound financial stability..............................


9 mths it took a client to sort out a failed builder... and guess who was paying interest most of that time.

ta
rolf
Click to expand...

So how do you make sure that the company is financially sound?? I could do a background check on their business I guess but not sure how useful this will be.

MTR
 
justlearning said:
We've made the decision to knock down our place and build a new bigger family home. We have a 676 sqm block in Kensington.

We've been speaking with a few builders (Aveling, Red Ink, Dale Alcock) and are in the process of getting rough plans sketched up and costed (modified quite a bit from their standard plans). We really love Dale Alcock display homes, although it seems you pay a premium for the name.

However, I think it will be really hard to compare apples with apples. Each plan will be slightly different and of course all the inclusions will be different.

I'm thinking we'd be better off getting our own draftee to draw up the plan, specifying all the inclusions we'd like and then shopping around for a builder (not necessarily one of the big builders). Budget is 300k for the build.

Would any of the Perth developers on here recommend their builders for their own PPOR? Or anyone gone with one of the big builders and would recommend them?

thanks
Click to expand...

I used Ventura Homes for all my builds but this was some years ago now, though I have heard they are still very good.

What I am currently doing now is getting my own plans drawn up, I will include a wish list as far as my specs go and will shop it with small and larger builders and work through this process.

I am sure some of the larger builders will be OK, however they are not flexible so anything outside the square seems to be an issue.
 
justlearning said:
Another thing I've been wondering is if we're under capitalising for the area. Is there a rule of thumb for how much to invest in a home compared to land value? Block is prob worth around 700k.
Click to expand...

I really don't worry about the rule of thumb as I think most is nonsense, look at what people want in this area in terms of size, design and quality. Also what is on the market and phone a couple of RE agents to find out what sells/what is in demand.

Under capitalising for any area IMO is a mistake and as this is a blue chip area I would want to get it right to make sure I can achieve the best outcome.
 
justlearning said:
Another thing I've been wondering is if we're under capitalising for the area. Is there a rule of thumb for how much to invest in a home compared to land value? Block is prob worth around 700k.
Click to expand...

About 20yrs ago there used to be a rule of thumb that you did 60:40 house:land. But now there is no rule of thumb.

But for Kensington I would probably go a bit upscale for spec. Was the $300k the total budget for everything finished or for just the house then finishing costs.

I would be inclined to spend about $400k finished for a house in that area at least. A nice 250-300sqm 4 x 2 with theatre with nice finishing - ie 31/32 course ceilings, stone bench tops, wooden floors or porcelein tiles etc etc

And then hope that there are no heritage constraints on your block!
 
That's exactly what I was thinking Westminster. Roomy 4 x 2 with high spec. 300k for house plus 100 k for landscaping and any other unforeseens.

Sales rep at red ink just said yes to everything we asked. Seems they'll be as flexible as you want as long as you pay for it. We're really not looking at anything out of the square though. Their show room was nice. I thought their cabinetry was superior to aveling.

Have been spending too much time on pinterest...I want an outdoor fireplace now!
 
700k land with a 300k house sounds like a massive undercapitalisation but I don't know the area that well. For comparison, my own house would have a land value by itself of about $800k. If I put a 300k house on it it would probably only sell for $1m. People know what's good and what's not.
 
justlearning said:
Off to see the red ink show room this morning. One advantage of the big builders is they have all their stuff on show so we can visualise it. Quite exciting really. Our last build was for investment only...took us about 5 min to make colour and tile and carpet choices for the whole house.
Click to expand...

Thats one of Dale Alcocks big selling points also, the show-room and Pre-Start process

westminster said:
About 20yrs ago there used to be a rule of thumb that you did 60:40 house:land. But now there is no rule of thumb.
Click to expand...

I wonder if it was ever 50:50 way back when..:confused:
 
redwing said:
Thats one of Dale Alcocks big selling points also, the show-room and Pre-Start process



I wonder if it was ever 50:50 way back when..:confused:
Click to expand...

most houses in the immigration period on the 50s and 60s cost about 20x what the land did.

so if your land was £30, your house was about £600.
 
had a look through an almost finished peter stannard home today. Am convinced I want 34 course ceilings in the living areas now...so much for our original budget. I want a nice home but I don't want to completely max us out borrowing wise as I'd like to think we'll still be able to buy more investment properties.
 
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