Any hot tips when shopping for a builder?

Hi,

I recently got my subdivision conditional approval for a duplex in Morley, Perth.

I think my next stage is to shop some builders and try and get a good idea of what I can do and what it will cost me.

I've never built or developed before. I want to obviously get good value for my money and am hoping that the current economy for Perth might be able to help me secure a good deal, building 2 at once.

Anyone with experience have any tips? What might be realistic to push for during price negotiations. Any builder you'd like to recommend etc? Roughly budgeting 200k a house build, with siteworks etc additional - if this helps.

Appreciate any advice, cheers!

 

Sounds like fun! You can always just shop around the major project builders who advertise their specialist development arms. Show them your site plot, and basic specs and see what they come back with. Are you demolishing and clearing? Flat block?

The build quality really comes down to the appointed supervisor.. sometimes you get a good one and sometimes you get a dud.

Or you could go the other route and get plans drawn up and put them out to quote..

OR, page @Colin Rice and ask him for details of his building broker? (Note I had a bleh experience with my building broker in Perth, but Colin seems to really rate the one he used)

 

Demolishing and clearing. I figured once I have the house design etc locked in I could go suss out demolition myself pretty easily... the builder could quote but would just slap on an extra 20% or whatever for what would only cost a couple of hours of ringing and quoting.

Be nice to hear from Mr. Colin Rice.

 

@Colin Rice and I use the same building broker which is Home Building Advantage in Balcatta.

They have a good inhouse designer and their tenders are competitive.

With that budget you should get something VERY nice.

 

It's a good time to build in Perth. I can't recommend any builders but I can link to a couple of examples of builders offering a lot of upgrades to get business. Note: examples only, not recommendations.

http://www.redinkhomes.com.au/promotion/whole-kit-caboodle/?utm_source=DMM&utm_medium=display&utm_content=&utm_campaign=Redink_17

http://www.homegroupwa.com.au/perth/home-designs/design/107?storeys=1

 

Yeah I figured the silver lining to missing out on all of these bargain dev blocks that are available currently is that I may be able to save on building.

I thought I would be skimping on 200k, this is good news haha. I'm leaning towards like a small two storey or loft type houses maybe would be a better description. Very entry level at 200k.

I follow your company on facebook Westminster, some very impressive projects completed and currently 'on the go', thanks for taking the time to reply, I'll check them out!

 

Ah well I was assuming single storey when I said you'd get something very nice for that price. I would always go single storey unless it's absolutely necessary to go up as there is very little value for money when you go up. Often the cost increase does not tally with an exponential value increase, ie you spend $50k more and only get $50k more whereas you should spend $50k and get $75k or more in value back to make it worthwhile.

How big are the blocks?

 

Check out brownstones by express two story living.

 

314sqm front, 431sqm rear.

Surprised that there isn't any value to grab when going 2 story to be honest, thought there might be judging from property close by. Maybe I was just looking to mimic what others nearby are doing . I plan to hold long term and lease so wanted to make them as attractive as I can to that particular market.

Perhaps the advantages with going single storey (construction ease/cost/time etc) will outweigh whatever small gain is to be made by going double in terms of attractiveness/value.

 

There is no value gained for two story unless there is a good view or most other houses nearby are two storey.

It will cost 100k more for similar sqm as single storey and return less than 100k in value . Eg maybe sells for 70 to 80k more

 

Crazy, not even given that more yard space would be available per block?

 

You will need to do some specific research in your area.

In City of Belmont, two storey vs single storey, the single storey would usually attract a small price premium. However, that could be because of a larger land component with single storey?

Some research in your area will give you some guidance, just watch for similar lot sizes if you can find them.

 

Crazy at it is, gardens are worth little in terms of $$ but do increase lifestyle. Valuers will look at number of bedrooms rather than liveability.

On a 300sqm block you'll be able to put a single storey 4 x 2 maybe with a small theatre or study as well and still have a somewhat decent courtyard and garden.

If you go up and build a second storey for the same price you'll get a 3 x 2 if you go with a very cheap builder.

Note: this is my experience and in this competitive market it might be different but single storey is the winner for many demographics whereas double storey has less people that can live in it.

 

Very interesting to know, thanks for the information... I'll definitely look further into it also.

 

I should clarify that you have a point in your favour as you have subdivision approval.

When we are shopping for two storey builders we are generally restricted to development divisions of mainstream builders who don't offer many of the incentives that are available to clients who have titled blocks and can say I'll have one of deal X and one of deal Y.

In this market the incentives are still somewhat accounted for in the price but there are some genuinely good prices available to those with titled/subdivided land that are not available to those who want to go Built Strata.

 

As in you're buying house and land packages or just like new land that developers have a tighter leash on?

 

I helped design those - great product.

 

Generally in the bigger companies they have very strict rules about which division can do what. When you already have titles for each block then you can go into their general sales division and get any of their special deals. These aren't available to their development division generally who handle their multiples and built strata product.

 

Even if a it's a strata block, with or without titles, it will still go to the 'development division'.

 

That's not my experience but each company does differ. I've had sales people happy to take on projects if they were titled.