I have used a building broker to design two 2-storey townhouses (side by side) and to go out to some builders to get quotes. It is at the rear of my existing home (which I will retain), so no land costs are involved.
The building broker has come back with 4 quotes ranging between $930K to $1.03M. These amounts include kickback to broker (but I do not know how much he gets), but do not include sub-division costs, air-con or water authority headworks. Pretty much everything else is included. Location is Subiaco area of Perth. Each townhouse is about 250m2, inclusive of garage and alfresco, and has 3 large bedrooms (2 each 20m2 and one 16m2), ensuite, bathroom, upstairs living and family/meals/kitchen downstairs. Also downstairs powder room, laundry and entrance hall. Nothing much outdoors except for blokpave paving. Rendered with colorbond roof. Highish Ceilings. Medium quality fittings.
The quotes seem way over the top to me and doing the development and selling would probably return me no more than just subdividing and selling as vacant lots.
you’re talking $1000/m2 & that’s just the building area.
Now that’s $250k/dwelling, add your extras & land value & deduct from sales price. Does the gross profit meet your requirements?
If it is not a project home, it sounds reasonable but check it against a QS website like bmt etc who have a free online construction priceguide or get your consultant’s feedback whether it represents value.
Where do you get $1,000/m2. I get double that. Each building is 250m2 (ground and upper floor together) and costs about $500K.
From the post I thought that the total area of each town house is 250m2 not 250m2 on top and bottom.
Sorry, I misread the size of the build (2 townhouses not 2 x 2 townhouses). Sounds a bit rich for my liking (you're not going to make money if each t/h is going to cost $500k + land.
Get the consultant to reengineer the price down to below $300k each (or some other figure which would work for you).
have you contacted a quantity surveyor to get costs…instead of using this broker?
i would definitely get someone else…
i would not use a broker like this find a builder
A quick phonecall to a mainstream builder such as Metricon or Pioneer to enquire the build cost of one of their spec townhouses in your area would tell you. $500k sounds well out of order to me. Max $300k.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
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i suggest getting a couple of your own quotes. i’m sure most of the building brokers suggest you do that to.
Yes it takes a bit of your time but then you have something to compare what your broker has given you.Hi,
It is dependent on the area,
However as mentioned above, the rule of thumb would be $1000/m2 for your typical house with no fancy furnishings.
With higher quality furnishings you can use $1200/m2 etc. as a starting point.
Then depending on the area, there are contribution costs, land subdivision costs, etc. to include.The total area is 2 x 250m2 (top and bottom floors included?) then $1M certainly sounds way overpriced.
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