Hi folks, can anyone recommend a comprehensive book or "bible" that lists all the "hidden" extra costs that can be incurred when building a new home? OR perhaps one of you experienced investors/developers that has a list they use already.
We are first home buyers/builders (i.e. full$21k eligible and stamp duty exempt in qld up to $500k) and have just agreed to purchase a block of land. I think we negotiated a good deal and now I am busy looking through home designs and builders here in south-east queensland. I would like to form my own independent opinion of the total costs as I am trying very hard to keep the price under $500k to avoid paying as much stamp duty as possible. We are more than happy to forgoe cosmetic niceties to ensure we get a good structure built on the land that we can add to over time. (i.e. The house has all the basics we will ever need but we are happy to add the pool, fancy landscaping, air conditioning, granite benchtops, alfresco area, fancy driveway, fancy gate etc later as we get the funds to do it.)
The land is "largish" (~1200m2), zoned residential "A", in an established area with access to all standard amenties (power, sewers etc). The land is flat and the soil seems to be a standard "M" class but I will need to wait on the actual test results. It is not in an estate and their are no covenants on land other than the standard council rulings. I have reviewed these and don't see anything that rings an alarm in my head.
I have picked up bits from forum searches, but nothing that I would consider definitive. So if anyone knows or has anything I can use, please do point me in the right direction.
FYI- I am tempted to just build on half the land and just "light" landscape the other half until I can subdivide and build townhouses. I don't think this will fly with the missus, but I will post a separate forum topic on this to get some thoughts. So don't worry about the extra costs with this.;
As a quick note to those "negative nellies" that may be reading –> Anyone that has anything negative to say about buying and building new in the current financial climate…please don't waste your time on me, just keep it to yourself or another thread. I have done my homework, am cashed up from years of saving, am a natural "contrarian" and totally confident with my purchase. I am jsut rolling up my sleeves for the real hard work.
Thanks in advance for any assistance, I am keen as mustard to learn , emptyvessel
Asking what hidden extras there are in building is like asking how long a piece of string is. There is an unlimited list of what might not be included, or unanticipated or unexpected costs. I'm sure that even the most experienced property developer occasionally gets hit by a cost that he/she didn't anticipate. I expect in that case there would be an allowance for contingencies, but the hidden costs are everywhere.
I know that a lot of builders these days do a "turn key" package which essentially means that on completion you can walk into the house and live in it. As far as I am aware, there are no hidden costs. Someone on the forum who has had experience with a "turn key" house might be able to confirm this though.
Good luck with your property investing. I think that the best time to get into property investing is as soon as you can.
I found a forum one homeone dedicated to First time builders and home builders. There are excellent blogs in there showing pictures and stories of the entire build process. Anyone new or clueless to building, I highly recommend joining up and reading, there are some really big eye openers.
By working through these I am putting together a list of all the "extras" to look out for an take into account. Seems to me that there is a vary large set of common extras to every new home being built.
In further reference to this, see this thread, it is excellent. Also includes comments from various folks that have actually finished building and what the various "finishing" costs were;
I recently built a house a year ago in SE QLD and asked myself the same questions! I recommend Hallmark homes. (single story only) These guys tell you everything you need to know and tell you the exact costs too! They have a 30 year structural guarantee and is the third lasgest builder in SE QLD. They also have a good work ethic and they always build on time! If you have any questions just message me.
Cheers
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