Hi Guys
A quick question: if i go down the path of owner building my house, what is the potential savings one should expect. would it be in the ballpark of 15 – 20 % compared to getting it built by the builders out there.
Of course i realise the answer is not that simple and is dependent on many things i.e. quality of the material used, finishing of the house, size of the house etc. therefore my specifications are as below so that i can help obtain a reasonable idea from you in terms of savings.
I want to build a single story (22 sq house), double garage, 4 bedrooms (one ensuite) and a separate toilet + bathroom and kitchen with ceaser stone (everything else standard). basically, everything about the house is standard as a builder would give you standard house without any upgrades.
Also, does anyone know how much a granny flat cost to build?
your feedback will be greatly appreciated.
You save money from owners builders only if you can mange the project well in term of timing and planning…
Ie Contractor A is not waiting for some Contractor B to finish before they can start etc…it’s like a puzzle…you can do it step by step and take forever to build and potentially leave some steps out?
or get an experienced builder / project manger involved ( essentially that what project home or custom builders are… project mangers) and do it in a shorter period of time ( hopefully).
Some would argue and say how much are you willing to pay someone to project mange your build? 10-20%? less headace, time, set cost backing and better LVR etc…
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Granny flat – $70k total for a standard 2 bedder (weather board at this cost of course..+ non-pitch roof.)
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
To add to Michael’s post… Planning, planning, planning.
Time is money ie delays will cost you extra interest on your loans & extra rent. On a dcf basis it will slso impact on the irritable & npv of the project.
If you cannot devote your time (& when needed on site) then it soon becomes apparent that the savings vanish.
My dad built some major extensions to his property a few years ago, saved about $40k in management fees and did a very high quality job even by professional standards. In saying this he is pedantic and well organised, I manage projects for a living and am still learning my fair share from him doing a project together right now.
A man living down the road from them has been building his house since 1998 when we moved to the area, it's still a work in progress and has now completely run out of money.
From experience, i'd say the latter story is an extreme version of what is most likely to happen. If your up for the challenge (and with out a doubt, plenty of stress) it can be very rewarding, on the other hand, leaving one loose thread in the project timeline will cause it to quickly unravel with budget blowouts and poor quality finishings running rampant.
Don't some States require the owner builder to have done some TAFE course before being given an owner builders number? Also I think that there are additional requirements if the property were to be sold within a period of time. I understand that Bunnings now have 'granny flats' that you can purchase to build yourself or can use their registered builders to assemble. Some of these homes are being used in mining areas in WA.
thank you guys. appreciate your opinions and sure understand the key to be successful in the project is planing and time management. need to sit down and analyse all the work involved carefully before i commit.
Once again, thank you guys
I truly agree to most of the opinions but however ,I would recommend a project manager to oversee the whole project in a
professional manner.appointing a project manager saves your time of managing the project and saves you money
I recently did a project of house building and I saved almost 100,000 dollars by appointing. A Melbourne based company
cax building services .i would highly recommend them.they are professional in their dealings and manages project with passion
you could talk to roschy who would help you through ,his email is [email protected].
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