Hi there,
Am after some help with considering to buy a block and build a property on it.
I live in Canberra and there are blocks for sale down the road for about $140,000 for a 400m2 block, this is 15min/10km from the CBD. Does this sound like a fair price or slightly on the dear side?
Also, am I better off dealing with a display home place, which does a fixed price contract? Is $185,000 reasonable for a 3brm+DLUG+ensuite, 13.5sqr living to be built or is this a bit cheaper or dearer than other capital cities? I did see an ad for low income earners a builder was building a house for $116,000, but I cant find it again!
How much should I expect to pay to get the house built on the land? and does anyone know roughly how long it takes from start to finish for building a property on a block of land (general question i guess and depends on a lot of things but just looking for more information to get my head around this and start doing some sums!!)
Thanks heaps for your help!
Dammit
Unsure about the property market in Canberra, but I would say you will need to do some research or have a valuation done on the property to determine if $140K is a fair price. It would definately rely on property sale prices in the area.
With the fixed price contract price you will always find a cheaper price that would be available. I had a friend who was researching homes to build for himself and he was quoted around $185K to $200K for a 30m2 and then went to a few display villages and managed to get a bigger house at 33m2 for $140K, which includes the carpets etc. Also if you speak to some builders in your area they may be able to provide a better price for you in building something that they may have available.
You must ensure you have some equity to purchase the land and to start construction or the buildiers may offer something were you do not have to pay for the stage of construction until it is complete. Such as the builder arranges the slab to be laid and then bills you for the costs, which you can then obtain from the lender in progress payments.
It is impossible to determine how much you will pay as there may be additional costs that may occur, but the contract is usually an accourate estimate of what you will pay. It can take anywhere from 2 – 12 months to construct on a property.
Also, whatever state you are in make sure you get a conditional approval prior to proceeding and they will advise what is required in order to receive the loan and if it is affordable for you. Maybe even see a broker to assist.
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