Construction cost in north west(Newman, Karratha, etc) part of WA is extremely high about $ 430k for building less than 200 sqm house.
Any views or in puts to reduce the cost
It's mostly to do with a) getting the construction items out there and b) the shortage of labour right?
Get a kit home. Some of them have free delivery, if not negotiate a reasonable price. Then find yourself a handy man or two, hire them for 2 weeks, fly them out there yourself and get it setup. You'll obviously need all of the usual gas, water and power connections to be performed by the local authorities, however I imagine by doing the above yourself you could save some coin.
Bear in mind I have no idea if this is feasible, it's just the first thing that came to my head!
It sounds like a ridiculous cost because you could get a house built for so much cheaper in a capital city.
Some reasons for high cost:
– High costs in transportation of materials
– Labour more expensive as less people willing to work out there
– Higher margins…they can charge it because there is no one else
– Subcontractors – Harder to get subcontractors at late notice as there are less of them. So they may cost more.
A kit home could be a good solution. Did you know you can also buy old pre-built homes.
Like if someone wants to demo the home to build a new one they might just sell it off instead. You can buy them really cheap sometimes and then you just have to pay for transportation and installation.
Would be worth looking at buying one as close to the location as possible. Or in the closest capital city (eg. Perth or Darwin). You wouldn't want to buy one from Sydney.
Ryan McLean | On Property
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