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There's no simple answer, but I'll let you know what I know!
- There are different types of building: for the sake of simplification will call these project building and custom building.
- Project building is "mass produced" housing, and is the most cost effective form of traditional building, and plays a very important role in the housing industry. Volume builders control costs by certainty, that is to say all of the labour and materials are known, and they can then negotiate great supply deals in volume.
- Custom building is when a builder builds according to plans provided and doesn't enjoy the supply benefits of a volume builder. There is far more administration involved as well.
In terms of costs, volume builders can build from around $1,000/m2 (some more, some less) and custom building is far more elastic in its pricing, however, the HIA suggests an amount of $1,500/m2 is the average for a "medium level of finish" for a standard type of dwelling.
Because of the town planning constraints involved it is uncommon that a volume builder can supply on "off the shelf" solution for a unit development, therefore these usually fall into the custom building category.
One way to combat price escalation in a custom build project is by designing an outcome that is attractive but uncomplicated. Engaging with the builder early in the process can also help in ensuring the design is builder friendly.
Generally speaking, one would think that a pre-existing building would have an approval in place? So first step would be to determine its status. If no planning or building approvals exist, the next step is to ascertain what approvals are required. Does it require only a building approval, or is a town planning permit also required?
Both building and planning approvals can be sought retrospectively but it can get a little complicated, especially if it is non compliant in some way, or is upsetting the neighbours.
The quote seems reasonable. The cost is however relative to the rest of the project expenses – get the design and documentation wrong and you will keep on paying for any oversights right through the project. Remember that they are working for you, so be clear about what it is you want and what your budget is. Try also this process of triangulation: Assuming the size is determined, what is most important? Cost, time, or finish. If you can answer this for yourself then this forms the top of your triangle and is fixed. This helps you communicate your objectives.
If you are immovable on one point then this will affect the others. For example, if the finish is paramount, then be prepared to give a little on time and cost. If cost is most important, then you may have to give some time or compromise finishes.
No worries, if I can work out how to upload pictures I'll post them for your amusement!
Of my kitchen or Henry's….?
Ideally, a plumber and electrician should ensure the services are isolated. Then it's a matter of commitment and a sledge hammer. And yes, you should have a design, budget and schedule established before you do anything else!
Try this.
http://www.fahcsia.gov.au/sa/housing/progserv/…/nras/…/default.aspx.
Without coming off as too cynical, a builder will want some sort of "exclusivity" if they are charging only $500 for plans and costings. However, getting the advice of a builder at draft stage is a good idea – they'll generally have some good ideas on the major cost items (especially structural) that can be incorporated into the final working drawings.
Think about choosing floor coverings that are suitable for the amount of traffic they will have to cope with as well as the feel under foot. Hard surfaces tend to make you feel colder, carpets are perhaps a little cosier. Also, much easier to mop a hard floor than carpets!
cowenan wrote:for resale purposes, am i better off spending the extra money and putting the second story (to retain the yard) or spending less and keeping it single story?
For resale purposes….this is a phrase we hear a lot!
In my experience a fourth bedroom is more often about having a utility space (home office, hobby room, workshop, guest room) than about actually having four bedrooms. Demographically speaking, there's not much demand for houses with four or more bedrooms, because there aren't so many large families.
So my advice would be to think about alternative methods of incorporating this type of utility space, and here's a couple of suggestions:
- Use the roof space or create a mezzanine for a home office.
- Make the garage bigger to incorporate a utility space there.
- Consider building over the garage as a home office or teenager's pad.
- Connect outdoor and indoor areas in such a way as to blur the boundaries a little.
Good luck with the alt/add.
The part of the driveway to which you are referring is generally referred to as the "cross over" and it's one of those assets that comes under the control of the municipal authorities (council) and they like to have a say in the construction or repair of these items. Generally speaking they will have some specifications to which you will need to comply, some forms to fill out, no doubt the exchange of some cash, and then an inspection. Nothing too onerous, but as always a process to follow! As for cost, allow $100/m2, to cover all bases.
The Federal Government's various Stimulus Package web sites also have a wealth of information.
In (really) short form. You own the property and rent it to low income earners at a discount (of at least 20%) in return for tax breaks of $8,000 (adjusted for inflationary impacts) per year.Hi James,
I'm not sure if you have done this sort of thing before, but if you are intending to be a property developer you really need to treat it like a business and consider how much time and money (yours and the bank's) you need in order to generate the profit you are proposing. Have a plan that sets out what you want to achieve and how you're going to get there.
It may be that a long process is best. It may be that a short timeline is best. have a think about your own motivations rather than the opportunity the block presents. This sort of project is a major commitment of resources (especially time and money) and should be done with as little emotion as possible.
Hope it works out for you.
Henry,
Yes, the IKEA is located in Richmond.
Their stuff is designed to be put together by anyone. I found that there was a lot of repetitive work in putting together the carcasses and other bits and pieces, and the only thing that really needed my carpentry skills was the fixing of the overheads to the wall ( a little bit tricky) and the adjustments of doors and drawers for an accurate fit.
I don't want this to sound like an IKEA add, but the stuff really is quite easy to put together.
Now, I don't want to put you in over your head, but perhaps consider having a go at it yourself and see how it goes. If you're finding it's not working out, then call a carpenter. You might find that you can get all the components together but would prefer a carpenter put them in place and make the adjustments for fit.
There are also other "flat pack" cabinet suppliers.Good luck.
Is this working smart, not hard??
There are more apartments than ever being planned and built, they are just a little more cleverly disguised. Planning for apartments (or other higher density housing) is more likely in certain designated areas near transport and other amenities.
Having said all that, there are changes occurring. For example, I presented a pre-application for a project in Melbourne's northern suburbs last week whereby I suggested we take the two existing houses (on about 600m2 each), aggregate the land on which they are built, build two new units behind, and link the new units to the existing building with car parking that houses small apartments above. So instead of ending up with 4 x 3br units we will end up w 2 x 1br, 2 x 2br, and 2 x 3br dwellings. The municipal planners were happy, and so was the client!
I think we'll need to see more imagination put into higher density housing types.
Are there any floors in the plan?
Potentially you could pay considerably more by building twice. I'd recommend you sit down and do the sums a couple of times in different ways – after all, what you are talking about is an issue of timing more so than exposure or aggregated lending.
As for GST, it comes down to GST in/GST out, in accordance with your intentions. You are talking about developing for a profit so there is a little potential to exploit the GST in the short term to aid cash flow.
Did I miss anyone with the PDF?
If so, please PM me with your email details and I'll forward.Also, to those who did get it, was it helpful, or too simplistic?
Yes, it's reasonable.
It is possible to have work retrospectively permitted, as long as it is compliant with the relative building code. So, first perhaps you could have someone qualified have a look at it for you to determine that it "looks" compliant. If that is the case, and you'd like to sell the house with a clean bill of health, you would need to contact a building surveyor to provide the building permit. He or she may need to see some of the structural work, which may mean cutting a couple of holes!
Good luck.
