Hello Everyone
I hope you don’t mind providing some advice/guidance.
My wife and I have been involved in property for several years with a couple of reno’s and more recently, a partial devo under our belt. The devo was sold off just short of the actual building stage. This time we’re keen to go through to completion with a 3-dwelling devo in the Knox, VIC area and have been doing the numbers for a month (since the Sydney 3-day Mega-Conference in fact).
The biggest weak link in out plan is the cost of the actual build. This is where I was hoping some of you may be able to help with some rules of thumb or recent experience. We’ve been told to budget from $180k to $190k for single storey 3/2/2 and about $220k to $230k for double storey 3/2/2. Other sources suggests it may be higher still (it all depends on what is included). At the costs mentioned above the project is viable but if the overall building costs are much higher, the risk-reward ratio is no longer attractive.
Any feedback or recommendation would be very much appreciated.
Hi
There are a number of factors to consider to determine build cost. These are just a few that come to mind after a heavy week so these are not necessarliy the only factors.
1. Size of the unit and the inclusions and finishes you are considering.
2. Design is very important when you are building a double story as you can spend a lot of money on structural costs if you don't design load bearing walls properly.
3. Site conditions are also necessary to consider such as type of soil you are building on and the fall of the land. I have seen a number of projects where the site costs alone can blow the profit in the project.A number of builders can give you a rate per sqm to build but you need to be careful with that as you will find that the bigger the building the lower the rate per sqm.
Hope this helps in some way and good luck with your property developing.
Regards Maurice
Thanks for the advice Maurice, your points are noted.
Its quite difficult to get a builder to give even an indicative price without having plans. From reading other threads it looks like the ranges I quoted above might be about the right ball park.
A town planner recently said that you wouldn't want to go above 15 sq for a townhouse.
Cheers
Hello Myrlin,
I am a registered builder and would be more than happy to have a look at your plans and give you a quote if you would like?
As Maurice mentioned size, inclusions and site will all play major factors especially the later with site costs being the biggie.
As mentioned happy to have a look and give you a price.
PM me if you like,Kind Regards,
Thanks for the kind offer YMG2009. Unfortunately we’re only in the feasibility stage so there are no plans at this stage. Given it’s a flat, regular shaped block, do you think $12k per square for single storey and $15k per square for double storey is about right for budgetary purposes for a medium quality build?
Any thoughts appreciated.
Kind regards
Yes, I think that kind of pricing should cover you.
Site costs are the tricky costs to forecast.
Let me know if I can help in anyway
Thanks mate, appreciate the info. Regards Myrlin
Hi,
I understand that $1,100m2 to $1,400m2 could give you a good approximation of costs. However, this is pretty rough and ready and would not include landscaping and other costs.
There is really no substitute for a quote from a builder.
Modular housing seems to be gaining wider acceptance and could be worth investigating as a means of improving profitability.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
