Hi all,
Forgive me if this has been asked before, but couldn’t find too much using the search…
I’m looking at building my PPOR in the coming 12 months, on a vacant block of land (obviously). When a builder quotes say $200,000 to build a home, I realise this doesn’t include everything required to make it liveable, such as floor covering, landscaping, air-con, etc.
Is there a general rule for working out how much extra these costs will be? I spoke to a friend of mine who had their house built by the same builder, and said 30-40% would cover these costs. Would anyone agree or disagree… Or have any input to help estimate this?
Obviously the best way would be to speak to building company, but at the moment, I’m looking for everything to look out for and be wary of.
Thanks heaps in advance,
DanielHi Daniel,
The cost involved really depends how you want to finish off your house (granite tops or laminate?..tiles or floorboards? etc etc ). Personally, i would finish it all off yourself, rather than getting the builder to do it. Simply because, as you said, builders dont include these items as a standard. It is because of this that everything they do for you, they will put a big margin on top. Sure, they may get the price for curtains carpets etc cheaper than you can in the first place, but i still think its better off done by the owner after handover!
These are just my thoughts, and there are always many reasons why people do things certain ways…you just have to work out which way will work best for you!
cheers
Lyndon
Hi Daniel,
Basically, you can get what you ask for. With one of my IP’s – I asked a builder for a price on a house that was ready to rent and had landscaping, fencing etc all completed. He gave me a price that I was happy with, he built it, I paid archicentre to inspect it, the bank paid the builder and my tenants moved in shortly after. [biggrin]
Todd Burns
http://www.freepropertyhelp.com.auHi Daniel…
$200K is too much if you are looking at a small size house.I am building a standard 3 br, 2 bathroom, double garage brick home from Beechwood for $112,000 (plus carpets etc). For reference sake, it’s called a Vogue 2001… and it looks great!
Generally for investment properties, you are better off getting a “kit home”… (ie. the ones they build all the time).. from reputable builders. Beechwood, AV Jennings, Masterton, Allworth homes are the way to go.
I can tell you that their prices normally include standard fittings…
ie. laminate bench tops, tiles (in wet areas – bathroom and kitchen splashback), all windows, neutral paints, sometimes door handles and light fittings, etc…Normally you will have to pay for carpet, tiles and blinds…
For a three bedroom house, u can do this for under $8K or better if you negotiate.the more research you do, the more you will $ave…
Always ask for a few quotes for similar building works / services…
they can differ several hundred.Call those companies and ask for brochures and prices on their kit homes… Good way to start.
I hope that this has been helpful.
All the best…[exhappy]
Anthony.Hi guys,
Thanks heaps for the replies. Before I’d even come back to the thread, I took my own advice last weekend and went and saw a sales consultant for the house I want. For the record, this isn’t going to be an investment property (at least, to begin with), it will be my PPOR, so it’s not necessarily “small” or “3 bedroom”.
What Anthony said is correct regarding what’s included in the base price. Floor covering, Air con, along with curtain/blinds are the big costs on top of this. Of course, along with Land Site fees, basix, and other essential “costs”. As mentioned, depending on how much you shop around, quality you’re interested in, and negotiation skills, prices for these added items may vary significantly.
As far as builders go, I actually also went to homeworld after I’d spoken to my builder of choice, and saw display homes for most of the builders you recommended. All are nice home. For the record, has anyone had any experience with Domaine Homes? These guys have the design I’m interested in.
Cheers and beers,
Dan
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