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Where do you get $1,000/m2. I get double that. Each building is 250m2 (ground and upper floor together) and costs about $500K.
Since I made the original post, I have engaged the services of a building broker called RCI:
http://www.rcibuilding.com.au/
To date RCI have designed the two townhouses I plan to build (I get to own the designs) and have obtained planning approval from the council. We have worked together to do detailed specifications of what fittings and finishes I require, right down to the brand of toilet role holder, so there is little room for the eventually to be chosen builder to screw me on variation charges.
We are currently at the stage where they have sent the designs and detailed specs out to 5 builders and are awaiting quotes to be returned. They have chosen builders who they know to be comfortable with the type of project I am undertaking.
Although we have quite a bit more to do, I am extremely happy with their performance so far. Their initial design of the townhouses was so good that I didn’t really need to make any changes other than increasing some room sizes over and above what I had originally requested. This is in contrast to two building companies I had initially gone with and whom I abandoned after spending several thousand on their designs. One of these builders, Summit Projects, made an absolutely appalling design that was completely at odds with what I requested. It even turned out that they were designing under the constraints of the wrong zoning for my block, even though they had been clearly told what it was by me and in any case was available from the council.
The good thing with using the building broker is that should I decide not to pursue the project for any reason or delay it for a while, I own all the designs and documents produced to date. I am also not tied to any builder, until I sign a contract with the builder.
Thanks once again.
Thanks J4son. That has been a great help.
Just to make sure I have got the correct meaning….
When you wrote “and do just as good a job if not better AS a 3 phase unit” do you mean that the Daiken is better when configured as a 3-phase system or that 1-phase is as good as if not better THAN a 3-phase. I can read it either way, so I’m not sure which you meant.
Try Emma Everett of Momentum Wealth – [email protected]
She specialises in project managing developments. Somebody recommended her on another forum as someone he uses for project managing his developments as he hasn’t the time to do so himself. I have heard her speak at seminars and she certainly is a smart lady. I haven’t used her myself though.
Thanks everyone for your suggestions
Does that 1800 include the pump etc etc plus installation electrician costs if required??
Thanks. Actually no, that is only the item cost. Installation/electrician costs will probably be hidden among the rest of the building costs, so the actually cost difference may well be much more than $1,200. I’ll think I will leave it out. As you say, it will be just one more potential maintenance problem.
Thanks. That’s good to know as it will probably be towards the end of 2011 before the home is completed, but I am in the design phase now, so I need to plan for the energy rating now.
Thanks Andy.
Thanks all, you’ve been great. Just one more question while I’m on a roll.
The builder who has worked closely with me and who I want to deal with has had a change of salesman since I first started working with them. Both have been great. However, the original salesman said that I would pay so much for initial plans and engineers reports etc., and after agreement on the design, they would produce, for an additional fee, drawings to submit to council plus they would undertake all the interaction with council during the approval application phase. These fees would be refunded when I sign the contract.
The new salesman is not asking for this second fee for council drawings and the approval process, but wants me to commit to them as the builder and pay a 1% deposit instead.
Is that normal?
I am reluctant to committing to anything without council approval, as they would have me over a barrel should council demand changes for any reason. They could then insist on fees for revisions of drawings at exorbitant rates etc.
Don’t just settle with one builder because he came and gave you a quote…get a few quotes from a few builders and see what is negotiable on price.
Ryan. I got two builders to quote as I wanted some basis for comparison and started the process about 5 months ago. Each required an upfront deposit of about $2K. One of the builders spent a lot of time working with me on the design to ensure I was completely happy and eventually came up with a design and detailed quote. The other builder literally did nothing for about 10 weeks, then e-mailed me a drawing that was on a 1:400 scale and had no room dimensions with an accompanying note to ask did I want to go ahead to final costing based on that drawing. Of course I didn’t. It took another month for them to come up with a new design, that was again unsatisfactory, missing key elements that I require. I am awaiting their third attempt to get it right. I have no faith whatsoever in that second builder, but I am reluctant to pay additional fees to a third builder to come up with a new design which might set everything back another 3 months.
Thanks RH and Ryan
Thanks. Just the specs I need and explains a design that has been done for me.
If you are completely replacing the fence, then it is not an expense according to the tax office.
A fence is one of the examples given on the ATO website in relation to expenses vs capital items. It differentiates between fence repairs and completely replacing a fence.
Here is the link:
http://www.ato.gov.au/individuals/content.asp?doc=/content/00183233.htm
“park land contribution”
I can only find hits for it in relation to Queensland and then it seems only $500 per lot. I’m in WA.
“park land contributions”
That is something I haven’t heard of before and I will need to check into it. Are you sure this applies to an inner city residential block that is already zoned R60 and can be divided into 5 lots (in my case). I’m surprised no one has mentioned this before, even an expert accountant I consulted.
It’s R60 and the council have already given the OK to subdivide.
He may be a bit far from you, but I have used Michael Prouse in Marmion for some consultation on accounting issues related to investment property and found him excellent. I got his name from elsewhere on this forum.
This is the website…..
I am not aware of a calculator to do all this, but if you are in WA then you can find the info online.
If you download and go to the end of this document, you will see various tables that set building parameters based on the R-Codes
Thanks Terry. Actually you pointed me to that website in answer to another question of mine some months back. As far as I can tell, I should not be classified as a developer. I bought the property to be my home about 4 years ago and only recently decided to develop the rear. My hope is to not sell either of the back 2 properties but just rent out (I will still live in the existing house up front which will remain my PPOR). But as I have very little income other that some share dividends and fund distributions, I don’t think I will be able to service the full loan needed to build the 2 units. Hence my possible need to sell one.
I’ve already run this by an accountant that specialises in property and he assured me that I would not be classified as a developer. Unfortunately I neglected to ask him about previously paid rates etc. when it comes to CGT cost base and would have to book another consultation with him just to address that issue.
When I say I intend to develop the rear, I mean I will be getting a builder to do everything from start to finish with little involvement from me, other than approving the design.
