Now does your calculations for $1500 m2 differentiate between garage and balcony. I.e. What would be the costs say for a 3 bdr, 2 bathroom double garage, attached double story townhouse be for the following size:
T'house = 135.15m2
Garage = 36.56m2
Balcony = 15.59m2
TOTAL = 187.30m2Thanks,
Also what do you think about the design size, i.e .is the balcony too big in proportion to the THouse (12% of the Thouse).From the above posts it is seen to be approx 1500 pm2, however does that price include for the entire hosue including garage, i.e. 187.30 x 1500?
thanks,In the context of budgeting I would include all built form. This allows some slip.
The more technical answer is that there are different build rates for the elements you have listed.
And those build rates are almost infinitely changeable.For example a tanked and tiled balcony, with glass balustrade, over a living area will be considerabley more expensive than say a cantilevered timber-decked balcony.
At risk of flogging an ailing horse, these issues are best sorted out at the design stage.
Would you know the very rough range for both garage and balcony? I understand they would vary however just a basic modern garage as you would see in many places around the country.
Thanks
No, as I said, it starts getting too particular, and I don't want to give you advice that is inaccurate.
I know some people apply a percentage of 75% for garaging and 50% for balconies, but I don't concur.AALLII wrote:Would you know the very rough range for both garage and balcony? I understand they would vary however just a basic modern garage as you would see in many places around the country.Thanks
It is important to have reliable figures when working out feasability of a project. But it is equally important to have a decent buffer for when things dont go as planned. Working out the possible costs in too much detail is often dangerous as you become convinced you have done a very accurate job of your estimate, which is still just that, an estimate. This can result in you thinking the project can suceed on a lesser than average margin.
Christians advice appears to be very realistic.
Work out your costs on sqm basis on a high / low range and then factor in the other unknowns. You can then make a call on how much risk you want to take.
You will rarely get an exact figure on any costs or returns, thats why development is risky and thats why you can get high returns.
But you are on the right track by getting as much info as you can, Good luck.
Thanks guys,
You are right, its important to have a buffer and I will likely include a buffer for risk in my calculations. however I'm intending to do a development with an overall total sqm's of over 860 which in turn means for every $100.00 it is likely to impact my margins by 86,000 (of-course net of GST).
Thats why I'm wanting to know what rates are likely to obtain before I begin negotiations etc so that I can have a better understanding of my buffer to negotiate.
Thanks Christian, while you are indemnified
on that advise, its a good starting point to understand that garages and balconies should attract lower costs.Thanks again
Your negotiations will be driven by the various tender responses you receive for your build from each builder, not by what the posters at Somersoft forum have estimated.
They should be able to provide you with a breakdown of the cost drivers and you can reference the cost base of each component of all of the builder's offers to negotiate the best deal.
For example I am currently negotiating with builders for townhouse construction. One of the better priced builders had a high price for concrete compared with the other quotes, so I got him to go back and find a better deal for concrete. Seeing a breakdown of the cost components also allows you to understand whether paying $x for security screens or sprinkler system or stone bench tops adds enough value to include it in the final build.
Note that the objective in negotiations isn't to screw the builder, it is to work with them to find the lowest cost possible to maximise your sale value.
Mattnz thanks alot, thats very helpful. The problem is I’m not at the stage of discussions with builders as yet, but its great to have an understanding of the process before hand.
Thanks everyone
jazz77 wrote:If you dont have a builders licence you will have to go owner builder.
You cant do multi unit work as an owner builder anymore.Yes you can. For example, buy a block with your brother/sister etc. You can owner build 2 dwellings on the block where each individual has one each.
oscar wrote:jazz77 wrote:If you dont have a builders licence you will have to go owner builder.
You cant do multi unit work as an owner builder anymore.Yes you can. For example, buy a block with your brother/sister etc. You can owner build 2 dwellings on the block where each individual has one each.
I agree there is always a loop hole
Hi everybody,
I am new in this field. I read all the useful comments. I still did not get the point. When we estimate 1500$ per square meter for construction , it means that it includes the " margin" , "stamp duty", and all other costs?
I mean , if I buy a land for 500,000 and built 300 meter , the whole costs for me will be :
500,000 + ( 300 x 1500)= 950,000
or still I have to add other costs?
Thanks,
Susan
Hi Susan,
Yes, there would be some other costs as well.
Without the full details of your projects, I am going to throw in a few assumptions here and there:
1. Consultancy fees – You need to make allowance for a group of consultants to get your townplanning / building permits and other approvals.
2. Approvals – There would be some fees associated with councils and authorities.
3. Utilities – assuming that we are talking about a multi-unit development, there would be additional fees for connections and possibly construction fees if needed.
4. Financier – Unless you are able to fund the entire development with your own source of funding, you will need to pay interest incurred for the duration of the construction phase.
5. Selling fees – I am assuming that you will be selling your project, so commissions and campaigning fees for your real estate agent.
6. Solicitor / Conveyancer fees – This will be needed if you are selling your properties off.
The rule-of-thumb for $1,500 is purely for the construction costs, which would be excluding the fees I mentioned above.
If you'd like, PM me and I can give you a bit more details around these costs.
David
Hi Matt,
I'd watch the costs of the concrete here. If there is a massive variance in costs between the tenderers for the concreting component of tender, you should look at the full specifications of what is being provided, to ensure you are comparing apples for apples. There is a massive cost difference between different strength rating and the specifications of the reinforcements being nominated in their tender.
Cheers,
David
The proposal should be robust enough to absorb some overrun.
A budget of $1,500/m2 is an adequate starting point.
Here is a simple equation that will account for roughly 20% margin after expenses:
1/3 for land (including stamps and purchase costs)
1/3 for development (including documentation, building and peripherals)
1/3 gross margin
For example:
Buy for $500,000
Develop for $500,000 (maybe two dwellings, or three small ones)
Sell for $1,500,000
If you find something that fits these rough parameters, you can then finesse the figures.
on that advise, its a good starting point to understand that garages and balconies should attract lower costs.
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