Hi Guys
I was looking into building a spec home for investment purposes. I see alot of builders offer packages for their homes as cheap as 120k . After to speaking to a couple I can see things like carpet tiles etc arent always included although I was wondering what other fees are associated with building. I was looking to build in the gosford area. I have looked at a block that has a slight slope to the road and is a nice rectangle block.
Thanks for you help
Typically you’ll add site costs ie site levelling, footing design and site works up to floor level, external concrete eg driveways & paths, front fence, mailbox, roof sarking & insulation to walls/ceiling, air cond, light fittings, exterior power & taps, landscaping….
They leave out just as much as they include.
There are lots of costs that are associated with both the dwelling itself, the site as well council costs. Demolition by itself will cost at least $15k.
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Great. Thanks for all your replies. My concerns which prompted my questions is if there is extra costs will the builders include this if need be in there quote and will the bank finance this or do u need the extra cash to cover all these associated costs. Thanks again
Most builders would have a 'fact sheet' style brochure/flyer which outlines what your contract price includes.
Just be aware on most occasions the level of fit out is only moderate.
You will also need to look for site cost allowances, water connection, power connection, landscaping, taps, clothes lines and so on.
You can borrow up to 95% however things that are not included in the building tender, lets say demolition costs and fencing to keep things simple then you will need to give quotes for these and present them as part of the loan application. These costs are generally also factored into the construction cost when the valuer values the property and more specifically the building value. Are you doing 2 dwellings on one title or are they on separate titles?
Regards
Shahin
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Great. Many thanks again for the replies. It would only be one house on a vacant blok offend. I guess I was leading down the path of finding out if it is possible with a small deposit to build without having to find cash to pay for hidden costs. Thanks for your info. So from my understanding as long as I take all the extra work in quotes to the bank they will fund the construction ?
Hello Woody,
We built our home 4 years ago and I tell you that there are a lot of costs that are involved. And what is included in a basic build varies from builder to builder. As stated by others, there is a fact sheet that the builder supplies that will outline what is included in the build. It gives all of the specifications. A very important thing is that if your builder has a display home, most everything in the display home will be an upgrade!! One builder does actually have a "what you see is what you get" display home, but the majority are not that way. It is very important that you read your contract and spec sheet very carefully to understand what is included.
Some builders have turnkey packages for investors that include the house, landscaping, fencing, mailbox, driveway, and clothesline. So basically nothing is required of the investor except to find a tenant. If your builder doesn't have a turnkey package, watch out as costs for some items can be substantially higher than you anticipate.
Even with an spec sheet, costs can increase. Site costs can be a nasty surprise because if you have a slope it increases. We wound having to pay a few thousand dollars more on site costs. A friend of ours got slugged with site costs of $25,000! As everything varies from builder to builder, I have listed a few charges below. Some of the items can be supplied by your builder and included in your building contracts, it just depends on the builder. Some items you will have to pay for after settlement;
Site costs
driveways
fencing
landscaping
flooring
window treatments
light fixtures
Telephone connection
Because we were building our PPOR we upgraded heaps of things that I wouldn't suggest that you do for a IP. But be aware of things as power points and light switches because even with a IP you want to have enough power points.
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