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  • Bullion
    Participant
    @bullion
    Join Date: 2005
    Post Count: 7
    June 13, 2008 - 2:31 pm
    RichLee wrote:
    We paid $113,500 for our 1 acre block and built a 4br + study home, we have also put up a large tradeys shed and a large undercover entertaining area. Total cost to do all this $216,500 – so $330,000 in total. It is now on the market for $460,000. With the market being a but up and down at the moment due to interest rates it may take a little longer to sell, but in answer to your question it can be done
    We also put a lot of thought into the house itself and saved money by using a very basic floor plan from a cheaper design but then created out own facade so that it didnt look cheap and nasty.
    Be patient to, we have had our land for a few years now, but the current price for the same size block is $150,000, and we have built our house 18 months ago, so it all takes time.
    Your venture sounds exicting! Good luck with it all

    Thanks for your response Richlee,

    Mind if I ask where you are located and the which company built your home? any advice on spec builders would be appreciated.

    Cheers

    Bullion
    Participant
    @bullion
    Join Date: 2005
    Post Count: 7
    June 13, 2008 - 4:53 am
    kum yin lau wrote:
    Hi, what's the end value after building?

    Cost of land = $75000 +
    Building = $160000
    Total cost = $235000

    Can you sell for $430000? or more? Any less means it's silly to build.

    The other more interesting/exciting idea is to build two. Does your zoning allow 1000m2 blocks?

    Then you have:
    Cost of land = $75000
    Cost of construction = $380000 [$20K more for holdingcosts & contingencies. You can increase this number for safety]
    Total cost = $445-450000

    Each house sells for $350000 = $200+K profit.

    Don't forget GST & tax.

    Good luck,
    KY

    Thanks for your response KY

    Really appreciate your feedback, Your first suggestion is the very idea that I have been fumbling around with in my head for 6 months or so now, I am thinking the experience I would gain from such a project would be invaluable too.

    Your figures unfortunately do sound a little "pie in the sky" in terms of whats realistically achievable, there is an average house on the same st  on 4000m2 with a barn advertised at $380k.

    My Math would be as follows:

         $90k  Block owes me (inc interet paid to date)
         $180k  25sq approx spec home inc fences and landscaping.
         $10k Interest and incidentals.

    Your second suggestion re:sub divide into 2 block is also a thought I have wrestled with and hav emade some enquiries, it is close to the township and that could certainly be an option, however it would need to be a battleaxe style setup and with only 22m frontage i'm not sure how much that may devalue the blocks, and whilst we are entering such a period of uncertainty with respect to the housing market maybe I see this as too higher risk? i dunno… maybe I should just hang them out there and have a go.

    thanks for your thoughts anyway.

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