Build a house or buy one ????
Oct 22nd 2007, 10:44 pm
#1
Sparky Stu
Thread Starter
Joined: Dec 2006
Posts: 612
Build a house or buy one ????
Id be interested to hear from you guys on how the cost's compare as far as if it is worth building your own home or not??
Im an electrician in Cairns and currently looking at doing a build next year but now iv started doing the sums im just wondering if it is worth it? Land prices are going through the roof and even building costs are going the same way. I would be suprised if when the house was completed it would be worth what it cost to build.
Is this situation heading the same way all over oz???
Im an electrician in Cairns and currently looking at doing a build next year but now iv started doing the sums im just wondering if it is worth it? Land prices are going through the roof and even building costs are going the same way. I would be suprised if when the house was completed it would be worth what it cost to build.
Is this situation heading the same way all over oz???
Oct 22nd 2007, 10:52 pm
#2
Banned
Joined: Jan 2004
Location: Morayfield - The Posh Part
Posts: 10,138
Re: Build a house or buy one ????
Id be interested to hear from you guys on how the cost's compare as far as if it is worth building your own home or not??
Im an electrician in Cairns and currently looking at doing a build next year but now iv started doing the sums im just wondering if it is worth it? Land prices are going through the roof and even building costs are going the same way. I would be suprised if when the house was completed it would be worth what it cost to build.
Is this situation heading the same way all over oz???
Im an electrician in Cairns and currently looking at doing a build next year but now iv started doing the sums im just wondering if it is worth it? Land prices are going through the roof and even building costs are going the same way. I would be suprised if when the house was completed it would be worth what it cost to build.
Is this situation heading the same way all over oz???
A house on LAND is cheaper than the land value alone, so be prepared to pay premium just for land, for lands sake !
A house builder will typically add his 30% markup on the build.
An owner builder can save 30% on the build, but getting a mortgage on this basis is complex and not that obtainable.
We are seriously toying with the idea of Owner Building.. having just Built a home via a builder to our plans.. and im 50/50 at the moment..
On one hand my greedy side, says, fuggit.. do it yourself, do it bigger and save money...
On my sensible side, i am thinking.. bugger it, fixed price, no worries.. get them to have the hassle...
Its difficult huh !!!
Oct 23rd 2007, 11:01 am
#3
I need a beer.....
Joined: Jan 2004
Location: The ville and the beach :)
Posts: 809
Re: Build a house or buy one ????
You are right the house building costs are going through the roof, since we started building our place timber has gone up 15%, blocks went up from $1.20 to $1.90 and the builders used to charge on average $1000 per m2 which is now virtually doubled over the past year.
We have gone owner builder and the end is in sight (started in April so it has been fast). The cost is looking at coming in at around $1000 per m2 so we have saved heaps of money going down this route. The stresses have been ok to live with although the OH has been stressing everyone out recently but if he was out of the picture then it would be running very smoothly
The banks don't like owner builders as much and will only loan 65% of the full amount. We had bought the land years ago when passing through here as an investment so that was paid for (and paid off as a wise move back then) then after selling our caravan and truck we had enough cash for the down payment. The other bit of advice is if you are going to go for owner builder start off as an employee not as a self employed tradesman as you will struggle to get a mortgage as an owner builder.
If you find you are running short of cash just ensure you get at least one bathroom and kitchen finished (forget the pool) so it passes the final inspection from council and the bank will then up the percentage they will offer you to around the 80% mark covering any over spends in your budget.
Shop around for a good carpenter or brickie, OH had worked with a few here so he knew exactly which ones he wanted and struck a great deal with them, in fairness to them they honoured the price even though everything had gone up. We also managed to get an hourly rate out of them which they will never do again as even though it was pretty good hourly rate they could have and would be earning a lot more if they gave a job price as they have killed the job. We also upped the hourly rate from what we agreed once it was evident that one carpenter was turning into the site foreman so we thought it was only fair he was paid more than the others. Then every Friday we take along a load of stubbies of their choice to thank them for their work.........small things but it has helped the relationship between us all and they will go out of their way for us as we would for them.
So would I do it all again, yes I would for sure! This time though I know where the downfalls are, and I would budget accordingly. I also know where the better deals are to be had and where the best materials can be found - cheapest or fastest delivery isn't always worth it!
The only thing I wouldn't do is design such an awkward house with separate buildings linking together as the square houses are far cheaper to build due to less materials required. The design of the house is very important so if you can buy a block now and then take your time to design the best house for that block.
The money that can be saved from going owner builder is just shocking! The downside is that you are not sheltered from the hassles of ensuring deliveries are on time but it is a small price to pay in my opinion.
We have gone owner builder and the end is in sight (started in April so it has been fast). The cost is looking at coming in at around $1000 per m2 so we have saved heaps of money going down this route. The stresses have been ok to live with although the OH has been stressing everyone out recently but if he was out of the picture then it would be running very smoothly
The banks don't like owner builders as much and will only loan 65% of the full amount. We had bought the land years ago when passing through here as an investment so that was paid for (and paid off as a wise move back then) then after selling our caravan and truck we had enough cash for the down payment. The other bit of advice is if you are going to go for owner builder start off as an employee not as a self employed tradesman as you will struggle to get a mortgage as an owner builder.
If you find you are running short of cash just ensure you get at least one bathroom and kitchen finished (forget the pool) so it passes the final inspection from council and the bank will then up the percentage they will offer you to around the 80% mark covering any over spends in your budget.
Shop around for a good carpenter or brickie, OH had worked with a few here so he knew exactly which ones he wanted and struck a great deal with them, in fairness to them they honoured the price even though everything had gone up. We also managed to get an hourly rate out of them which they will never do again as even though it was pretty good hourly rate they could have and would be earning a lot more if they gave a job price as they have killed the job. We also upped the hourly rate from what we agreed once it was evident that one carpenter was turning into the site foreman so we thought it was only fair he was paid more than the others. Then every Friday we take along a load of stubbies of their choice to thank them for their work.........small things but it has helped the relationship between us all and they will go out of their way for us as we would for them.
So would I do it all again, yes I would for sure! This time though I know where the downfalls are, and I would budget accordingly. I also know where the better deals are to be had and where the best materials can be found - cheapest or fastest delivery isn't always worth it!
The only thing I wouldn't do is design such an awkward house with separate buildings linking together as the square houses are far cheaper to build due to less materials required. The design of the house is very important so if you can buy a block now and then take your time to design the best house for that block.
The money that can be saved from going owner builder is just shocking! The downside is that you are not sheltered from the hassles of ensuring deliveries are on time but it is a small price to pay in my opinion.
