In my investigations I’ve found a couple of blocks of land near Brisbane to build a house on… each with its own set of challenges.
Block 1: ~ 1500 sqm @ $185k
– views out to some fantastic bushland
– at the top end of a sloping cul-de-sac, so views won’t be built out
– has a slope/drop of 6 metres
– looks tricky to build on
Block 2: ~ 820 sqm @ $205k
– backs out onto a highway, so noise is an issue, despite a noise ‘barrier’
– has a slope of 0.5m (more or less flat). The agent refers to this block as a ‘dream’ for build ers to build on.
– Doesn’t have any discernable views
Now the first block is 20k cheaper, but may blow costs out when it comes time to build a house on it. The second block would probably cost a lot less to put a similar house on it.
> Are you buying the block to put an IP on or a PPOR?
PPOR for a couple of years and then IP.
> Who are you building with and have you spoken to them re both blocks?
Haven’t decided on a builder yet – waiting for a response from a ‘designer’ who could give rough suggestions as to what would work on the block and also a rough figure.
> Have you got quotes for leveling the block, improving drainage/runoff?
Not yet. Anyone take a guess what this could cost?
> Obviously you’ve looked at neighbouring properties, re the unlevel block- how have they dealt with it?
This is a fairly new area, so there’s only one immediate neighbour in the process of building. They have a driveway meandering up from the road about 20 metres that makes a sudden right turn such that the double garage sits at the base of the house. You then walk up one flight of stairs to get to the ‘ground’ floor. You then walk up another flight of stairs to get to the second floor. The house is going to be built into the land. Not sure of much else – only the framework is up!
> What are the prices of comparible sized ‘established’ properties in both areas?
In the flat area, prices range about $450k-$600k. In the area with views, probably $600-$800k. It’s still fairly new, so I’m not sure of the sales history!
My first thought that comes to mind is can the sloping (large) block be subdivided into two properties?
As for my other thoughts on the points above:
Designers can cost extra, as many of them lack the construction experience to understand ways of minimising building expenses. Designers usually want their ideas done no matter what the cost.
If you’re going to rent it out on a couple of years then I would look at getting a draftsperson and a builder together and nut out some plans. It’s cheaper than a designer, and builders know how to minimise expenses yet still get the same desired outcomes of design. Bounce ideas around on ways to come up with great designs that aren’t going to cost a fortune!
Get quotes of levelling the block. If a neighbouring block has had something, then approach the owner/builder and ask a few questions! How did they do it? How much did it cost? Who did they use to do the earth moving? What problems did they face?
Also check with the council on the latest regulations involving water runoff/tanks/etc, etc.
You may even wish to get an inspection from a quantative surveyor on how much the likely cost is to build…
Sloping blocks can be cash flow positive fromn day one if you get the right price. Level the block before any neighbors build, try-link retaining walls are a sound investment. Use rendered foam to build the house as this will reduce costs and consider using pile and beam style footing arangements. A floating garage slab could be used at the front to park the cars. Before you sign up get out the dumpy level and shoot some levels. Hope this helps your decision making.
> My first thought that comes to mind is can the sloping (large) block be subdivided into two properties?
Not at this point in time.
> As for my other thoughts on the points above:
> Designers can cost extra, as many of them lack the construction experience to understand ways of minimising building expenses. Designers usually want their ideas done no matter what the cost.
I’ll keep that in mind. This designer is part of the land estate that is employed to approve/deny home plans. Their services are free.
> If you’re going to rent it out on a couple of years then I would look at getting a draftsperson and a builder together and nut out some plans. It’s cheaper than a designer, and builders know how to minimise expenses yet still get the same desired outcomes of design. Bounce ideas around on ways to come up with great designs that aren’t going to cost a fortune!
Here’s a question: Does anyone have suggestions for good builders in the Brisbane area? Any builders to stay completely away from, whatever the reason?
> Get quotes of levelling the block. If a neighbouring block has had something, then approach the owner/builder and ask a few questions! How did they do it? How much did it cost? Who did they use to do the earth moving? What problems did they face?
Sounds like a plan!
> Also check with the council on the latest regulations involving water runoff/tanks/etc, etc.
This is Ipswich shire, so I’ll do some checking.
> You may even wish to get an inspection from a quantative surveyor on how much the likely cost is to build…
Also a fantastic suggestion – does anyone have a preferred (cheap!) quantitative surveyor in the Brisbane area?
> Sloping blocks can be cash flow positive fromn day one if you get the right price. Level the block before any neighbors build, try-link retaining walls are a sound investment.
What’s a try-link retaining wall?
> Use rendered foam to build the house as this will reduce costs and consider using pile and beam style footing arangements. A floating garage slab could be used at the front to park the cars. Before you sign up get out the dumpy level and shoot some levels. Hope this helps your decision making.
I am personally a big fan of the sloping block mainly because you simply cannot buy and install a view!
You mentioned a fall of 6m however what is the distance of the fall? If it is 6m over 200m it is easier to build on than say 6m in 50m! This will predominantly determine the overall cost of levelling if you want to go that way.
On that note, do you have to level much at all. I love the Queenslander style of home either stumped or on poles and, if this is a bush environment, maybe suitable. There are companies out there that specialise in this although wouldn’t know about Queensland.
> I am personally a big fan of the sloping block mainly because you simply cannot buy and install a view!
Yeah, some people pay a premium for a view. I guess this would be the motivator for going ahead with this land.
> You mentioned a fall of 6m however what is the distance of the fall? If it is 6m over 200m it is easier to build on than say 6m in 50m!
True! There’s a frontage of about 10 metres, and the left hand side of the block has about 40 metres. So it’s 6 metres over about 40. That’s about 1 metre slope for every 7 metres of dirt. In the back right hand corner, it slopes 9 metres, but across 55 metres of dirt.
> This will predominantly determine the overall cost of levelling if you want to go that way.
I think we’ll have to build the house into the land, gradually getting higher the further into the block we go. The driveway is going to be ‘interesting’ I think .
> On that note, do you have to level much at all. I love the Queenslander style of home either stumped or on poles and, if this is a bush environment, maybe suitable. There are companies out there that specialise in this although wouldn’t know about Queensland.
Oh, my wife and I don’t like Queenslanders. We’re biased to the ‘older’ style Queenslanders we’ve seen (30+ years old), and prefer the good old brick/timber style home.
I know a good builder/roofer/plumber/jack of all trades in Brisbane. He renovated our property and taught me a lot about renos at the same time.
Not sure if he builds from scratch but he is an old bugger and knows the industry well so could point you to the right person if he could not do the job.
Send me a private message if you would like his phone number.
Learn What It Takes To Instantly Access All The Partners, Money, Deals and Strategies You Need, To Truly Make It In Property Investing and Leave Your Day Job Behind...
Or you could do what I did and build a pole house?
My block is a 1500m2 block of subtropical rainforest with a 30 degree slope. We opted for a pole house with bearers and joists with weathertex cladding. You gotta watch the costs though as the house component ended up costing us around $350K. But we did build a gucci house with all the latest stainless steel fittings and blackbutt flooring throughout etc… What do you expect, it was our PPOR!!
Cheers,
Michael.
PS. Resi, oh yeah we have water views too [biggrin]
> Or you could do what I did and build a pole house?
A home on poles is kind of what I had in mind.
> My block is a 1500m2 block of subtropical rainforest with a 30 degree slope. We opted for a pole house with bearers and joists with weathertex cladding. You gotta watch the costs though as the house component ended up costing us around $350K. But we did build a gucci house with all the latest stainless steel fittings and blackbutt flooring throughout etc… What do you expect, it was our PPOR!!
Michael – how did the valuation go after you finished building?
To be honest we haven’t had it valued yet as its our PPOR. I do intend to do this soon though so I can lock in an LOC on a good valuation before prices drop too far through 06/07.
The land cost me $272K and the house was around $350K, so all up it was around $620K. I know that its currently worth around the $700K to $750K mark conservatively so we’re ahead. We could have built cheaper too and have probably over-capitalised a bit but we love those gucci additions like the $7K spa shower from Kohler and the blackbutt flooring throughout.
If I can be of any help please PM me or post again if you think others could benefit from the answers too.
Cheers,
Michael.
Viewing 15 posts - 1 through 15 (of 15 total)
You must be logged in to reply to this topic. If you don't have an account, you can register here.