All Topics / Value Adding / How to make my townhouses cheap…..

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  • Profile photo of alfrescodiningalfrescodining
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    @alfrescodining
    Join Date: 2012
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    Good morning everyone.

    I'm just about to contact my architect to commence the initial design process for two townhouses (behind an existing house on the land).

    After I get the DA approved, I will be seeing a few builders and hopefully going with one of the cheapest quotes. My site is in a low-income area so I won't be building anything flashy.

    From everyone's experience, how can I, at this early design stage, make sure that the construction costs are as low as possible?

    Thanks

    Profile photo of TheFinanceShopTheFinanceShop
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    @thefinanceshop
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    Hi There,

    You normally engage an architect if the end product is going to be high standard. 

    I did a development in Sydney's west (we had to work with smaller resale value) and hence we engaged a builder that did everything for us. It was much cheaper than engaging an architect. 

    Is there a specific reason you are engaging the architect before a home builder?

    Regards

    Shahin

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    Profile photo of DWolfeDWolfe
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    Hi Alfrescodining,

    While it's important to be a cheap as possible just make sure you are still working with what the end buyer expects.

    Building single level is generally cheaper, however you maybe still want to do double storey, if the return is worth it. Think about how many bathrooms etc and how big the actual buildings need to be. If the market expects 15sq, then don't build any bigger as the buyers wont pay. If you have a good architect they will make the most of the space to create something that is economical to build. Give them the brief that it needs to be cheap to construct.

    Cheap on the finish, in the right ways, like laminate kitchens, pavers and small plants in courtyards, cheap carpets. You can still get a pretty good look with builders range items.

    Negotiate with the builders, spell out everything in the contracts, and get them to pay for as much as you can. If they don't included the driveways or the landscaping or fences get them to do so.

    Good luck hope it all goes well.

    Cheers

    D

    DWolfe | www.homestagers.com.au
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    Profile photo of DWolfeDWolfe
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    Must have been typing at the same time Shahin!

    I found my architect has always kept the construction cost at the back of his mind when designing. They make sure there is no wasted space. Just what I have found in the past.

    Cheers

    D

    DWolfe | www.homestagers.com.au
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    Profile photo of TheFinanceShopTheFinanceShop
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    @thefinanceshop
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    Great minds type at the same time!

    What I was getting at specifically was that I bought a property with DA to build 2 houses (in an area where it is close to impossible getting DA's) and they were custom houses. I found that builders charge much more for custom designed houses than 'project homes'. 

    When I did a development on another site – we built 3 TH's and we did it through a builder who had townhouse project homes and we found that the cost was significantly lower than if the builder was quoting on a custom design.

    My personal rule is that for lower resale values stick with project builders as much as possible. For upper areas stick with custom design.

    Regards

    Shahin

    TheFinanceShop | Elite Property Finance
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    Profile photo of alfrescodiningalfrescodining
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    @alfrescodining
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    Thanks everyone for your replies.

    The reason I was going to go to an architect is so that I can have the plans and have full ownership of them then go to several builders and get multiple quotes. Whereas if I get the builder to do the plans, I can't get another builder to build off them, and their costs may come in high.

    Plus, I've talked to a few project home builders who will build off client's plans.

    Shahin can I ask which project home builders you used for your developments?

    Profile photo of alfrescodiningalfrescodining
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    @alfrescodining
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    And I'm doubtful as to whether project home builders would have a standard design to fit my site, which already has a house on it so I need to build behind it, single storey only.

    But I do think I will get a project home builder to do the actual building.

    Profile photo of alfrescodiningalfrescodining
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    @alfrescodining
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    Also what should I expect to pay an architect for plans for 2 townhouses?

    Profile photo of TheFinanceShopTheFinanceShop
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    @thefinanceshop
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    You so need to go with a project builder. Building a house behind an existing house isn't complex for the display home builders. 

    I can assure you that any builder building a custom home will charge you plenty more than a project home design (obviously from the project builder himself/herself).

    TheFinanceShop | Elite Property Finance
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    Profile photo of TheFinanceShopTheFinanceShop
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    I deal with Wincrest homes. They have built on 3 sites for me. I have an investor currently building townhouses with Metricon. Very few will build off client's plans (Wincrest is one of them).  

    TheFinanceShop | Elite Property Finance
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    Profile photo of TheFinanceShopTheFinanceShop
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    Again I wouldnt suggest using an architect for this type of a project but if you are going to use one regardless have you considered a good draftsperson instead of an architect?

    Regards

    Shahin

    TheFinanceShop | Elite Property Finance
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    Profile photo of alfrescodiningalfrescodining
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    @alfrescodining
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    Hi Shahin what happens if I get one of the project builder to design my plans and then they tell me its gonna cost me $2200 per square metre then they tell me, nope, no other builder can build off these plans. I wouldve watsed time and money and effort.

    I just can't imagine a project builder would have standard single storey townhouse designs for my site.

    Profile photo of alfrescodiningalfrescodining
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    @alfrescodining
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    Shahin if you dont mind me asking what did you end up paying per square metre with Wincrest?

    Were your sites flat or problematic?

    Thanks for your excellent help.

    Profile photo of TheFinanceShopTheFinanceShop
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    It depends on the size of the dwelling (i.e. the larger the dwelling, potentially the lower the per sqm charge). Wincrest charged me $1,300 per sqm. I have 1 flat site and 2 'problematic' sites. 

    TheFinanceShop | Elite Property Finance
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    Profile photo of TheFinanceShopTheFinanceShop
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    I wasn't suggesting getting the home builder to design – I was suggesting to use the existing home builder designs than getting a custom one done up. Also when you say a single storey townhouse – how many sqm are you talking about?

    TheFinanceShop | Elite Property Finance
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    Profile photo of alfrescodiningalfrescodining
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    Hi Shahin does that 1300 include everything like landscaping/fencing and their margin, or just the raw building cost?

    Profile photo of Scott No MatesScott No Mates
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    How do you make it cheap – look at cheap construction methods (not in any particular order)

    • cladding/timber frame
    • concrete floor/carpet
    • low ceilings (2400 mm, less in service/utilities rooms)
    • steer away from glitzy finishes (caesarstone/granite benchtops)
    • "builder's package" appliances/fixtures
    • single glazed windows (standard glass) with locks
    • no air-conditioning, heating (only if really needed)
    • insulation blanket/sarking to roof/walls
    • low pitched metal deck roof
    • no skirtings/basic cove cornice
    • hollow core flush doors with passage sets
    • simple/single colour scheme
    • standard garage doors no remote operators (or preferably carport/open parking)
    • framed glass shower screens
    • tiled skirtings to bathroom, minimal splashbacks, no listello, feature tiles or capping tiles

    That should drop the construction cost – get your specification and schedule of finishes right.

    Profile photo of alfrescodiningalfrescodining
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    @alfrescodining
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    Thanks Scott – that's excellent advice.

    And Shahin, thankyou mate, I've contacted Wincrest.

    Profile photo of TheFinanceShopTheFinanceShop
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    @thefinanceshop
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    Ok would be interested to see how you went so either PM or email me.

    Regards

    Shahin

    TheFinanceShop | Elite Property Finance
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    Profile photo of TheFinanceShopTheFinanceShop
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    @thefinanceshop
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    It included everything except for driveway, landscaping, fencing and retaining walls.

    Regards

    Shahin

    TheFinanceShop | Elite Property Finance
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