Small Development: Kit/Pre-Fab or Normal Build

M

MmmGarlic

Hi,

I'm interested in buying a small block sub division in an inner suburb of Melbourne to build a small townhouse on. Minimum size is around 200sqm's. The block would have permits or be fairly easy to obtain them, as the type of townhouse is standard to the area. These don't seem to come on the market, but there are lots of companies that will do the subdivision and the complete development.

Maybe I need to door knock or ask agents, then use options like the big boys do, to get one of these.

The townhouse could be 90sqm's single level with 2br's and an attached garage, or up to 150sqm's double storey with 3 br's, extra living space and an attached garage.

Based on this type of small townhouse, I need to know the merits of building using a kit/modular/pre-fab type property or doing a normal build. I'd expect a bigger cost difference with a bigger build.

Could someone please tell me the complete turn key cost estimate for this type of development in the current market?

This property would be for me to live in.

Thanks
 
one townhouse? Id guess your starting at $200k or so in terms of price.

Finance can have an effect on what sort of build you choose. Most lenders shy away from kit homes/modular etc and stick to a fixed price building cotnract paid in 5 stage payments.
 
Which councils allow a shed to be constructed ?? (A shed + garage)
Pre-fabs are often found in relocatable home villages for a reason.
 
Thanks. The finance point is a good trap for young planners. The way I understand the kit/modular/pre-fab type property is that the process is potentially quicker as there's less to do from scratch on the construction site. The end product can be just as good as a normal build. They are starting to get better here. Grand Designs loves a good modular home.

I'm looking at these types of places that can all be customised (there's too many to list):
http://www.imaginekithomes.com.au/plans.html
http://www.archiblox.com.au/designs/
http://modscape.com.au/residential-projects/
http://www.prebuilt.com.au/index.ph...gue&prodcat_id=806&pageID=6504&sectionID=6485
 
MmmGarlic said:
Thanks. The finance point is a good trap for young planners. The way I understand the kit/modular/pre-fab type property is that the process is potentially quicker as there's less to do from scratch on the construction site. The end product can be just as good as a normal build. They are starting to get better here. Grand Designs loves a good modular home.

I'm looking at these types of places that can all be customised (there's too many to list):
http://www.imaginekithomes.com.au/plans.html
http://www.archiblox.com.au/designs/
http://modscape.com.au/residential-projects/
http://www.prebuilt.com.au/index.ph...gue&prodcat_id=806&pageID=6504&sectionID=6485
Click to expand...

run the kit thru a builder so the bank will finance it
 
How can there be all these kit builder / supply companies but very few real case studies (actual builds other than high rises) in the inner suburbs of the main city? Traditional builds seems to be the stable rule of thumb.

Are they mostly built in regional centres and on farms?
 
Current findings:

- big labour saving with modular
- onsite work is often weather dependant etc
- in controlled factory repetitive tasks can be given to lower cost workers (carpentry frames are done in factories for this reason too)
- overall build time is shortened from say 1 year to 10 weeks in a factory
- therefore lower holding costs / interest repayments during construction

- it seems like-for-like quality with modular compared to normal build is potentially similar.
- modular is probably better value with architectural / premium design.
- I think modular quality should be better at the base level too, as there's a higher minimal standard and consistency
- Otherwise if you only care about cost you can get poor quality either way

- I'm still not sure about the building depreciation / longevity of such a property in comparison (after 10, 20, 30 years?)
- Resale values?

You can choose any type of cladding, even bricks, so the end build can look like any other house ...

This company builds the whole thing in a Chinese factory:
http://factorybuiltmodularhomes.com/about

Please add any other comments.
 
I'm a tad late getting onto this thread but here's my two cents anyway...

I've been looking at the modular home vs on site build also. From what I have found, I agree entirely!

The foundations in a modular home are identical to a 'normal' build. The frame and roof trussing is also identical but with some extra piece to allow for them to be connected to the adjacent framing piece onsite. The end result is the same as a normal build. Build a modular home next door to a 'normal' build with the same floorplan and I doubt you'd be able to tell the difference without ripping Gyprock off the walls.

The concept of a modular home build is no different to making the cabinetry for a kitchen on site at a premium price vs making the same cabinetry in a workshop with dedicated machinery and workers that you can pay less, then delivering them to site and fitting them. The end result is the same and you can still have whatever design you like.

Many moons ago I was a design draftsman, then an engineer (design and site), then moved into procurement and supply chain. This kind of innovation has been my bread and butter. Every other industry is trying to make what they do as efficient and cost effective as possible...except the building industry.

Personally I think modular homes is the way home building should go. Particularly the McMansion type builds. We're a nation with a falling manufacturing industry and a building industry that is being propped up with grands and subsidies...too many manufacturing workers with not enough work and not enough builders to go around in some areas. Bring the building work inside and call it manufacturing. An added plus is it's better for the environment...less waste and less transport required

For myself, I decided it would be best to run the home purchase through a builder for three reasons. Firstly, to get finance. Just be sure the builder only adds their labour to the price and no mark up. Some of the prefab companies can put you in touch with sources of finance. I haven't investigated these. Secondly, to have the build covered under the builders warranty. Thirdly, you need a builder anyway to get the foundations and connections in place so why not get them to do the whole thing. Then if they've stuffed up the connection points they can wear the cost of fixing it. I'd also want a fixed price from the foundation up. Given the type of build that it is I don't think this is unreasonable. I'd also want a separate estimate for the foundation.

I'd love to hear how this works out for you if you go ahead with it.
 
I'm curious about this too. Have been looking at a few companies.

Builtsmart seems to come on the top of the list on Google but I have had a horrid time trying to get a hold of someone to talk to from there.

I was shown a prefab house Sydney's inner west which was built for a very small block of land. Its one of those houses that's built using environment friendly materials, so there was definitely appeal there. I would've never guessed that it was pre-fabbed so to speak, and the quality looked good on the outside. Inside was very nicely done, but I was more curious about the actual structure. Was impressed.

The valuation came in at over 700k (couple of years ago) so that tiny little house, so I don't think prefab houses are valued less than traditionally built houses.
 
And so.... 6 months later - has anyone gone ahead with a pre-fab home?
I can't find many designs that I like, but I also do not want to immediately write them as "ugly" "low quality" etc. So I'd be open to the idea...
this Brissie company sounds pretty awesome.
http://www.proofyourlife.com.au/
 
aaron or anyone else going through with modular homes

Can you tell us please more details eg
prices, and learning curves you went on to do this please.
Whats included and which company you ended up choosing and why.
what are you building, size, rooms, and is it to rent out or for yourself to live in please.

Its meant to be a faster build but how is it for price please.

Thank you.
 
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