Hi all, This may seem like astupid question but I want to know how much it costs to build ahouse and what other costs are involved apart from buying the block of land?
Thanks in advance
censor me and bar your kids from the lessons I learned – makaveli
I`ll make him an offer he can`t refuse – Vito CorleoneDepends on where you build but budget for around $800-$1k per square mtr for the house. Can’t help with other costs sorry.
I have crunched the numbers for owner builder. It is a goer if you have the time and skills, but a huge commitment. I think unless you are after something specific, to buy and renovate is a far more cost efficient option. Ther are heeps of hidden costs in finishing a house. Establishing gardens, turf, letterbox, clothes line, light fittings. all these costs add up as do plans and council fees. ther is also a lot of down time in building a house where you have money tied up and no income from it. A house can be renovated fairly fast and tennants put through before it is even finished. I have often lived in a half finished house…semi built not too comfortable. second toilet is always good…use one while the other is being renovated
we’re building now and you need to watch very carefully what is going on. When you find a plan (assuming project builder) add adout 15% for finishing costs, and yes time, depends on the block but we signed up for the block in september 03, then went gung hoe with finance and building Co. and we still haven’t seen a contract to build yet. The only reason we’re doing it is for the instant equity ie: spend 220K up front make interest payments for 12 months then finished product should be around 260K – 300.
check out why you want to build.If you have a block of land, you can get some great “kit” homes. Quite a few people are doing this now and you cant get good kit homes from say $150K. Im Nooooo expert on this, but it can be a great saver!
I mean you CAN get them from $150K. I miss the edit option once your message is posted. Where did that great feature go?
Be aware that most banks are not keen on owner builders. It can be done but does give extra problems.
They are not keen on kit homes either.
The way around these issues is to have the kit erected on a fixed price contract by a builder.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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