Buying land - building costs

Discussion in 'The Buying & Selling Process' started by Joeban1, 28th Jul, 2020.

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  1. Joeban1

    Joeban1 New Member

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    28th Jul, 2020
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    Location:
    Perth
    Hi, my partner and i are looking to buy some land and build. It will be our first home. We are located in Perth for reference.

    We have a budget of about 650k, and have found a block of land of 400sqm in a decent area we are interested in. The block is listed at 400k, we are looking at purchasing for between 380-400.

    As this is our first build, we have no idea of the cost to build. The land will need clearing, and other sitework costs i’d guess. As such, is it feasible to expect that we can build a home on this block whilst keeping under our budget of 650k?

    We want to put an offer in soon. Is it possible to put an offer in ‘subject to finance’, then speak to a builder and find out if we can build for a cost in our budget? If the builder tells us its not possible, could we then cancel our offer?

    We would be looking to get this all done ASAP to get the current grants on offer.
     
  2. spludgey

    spludgey Well-Known Member

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    Sydney
    Is it flat and accessible? No easements, etc?
    You may just be able to get a project home for that price. Really depends what you're after though.
     
  3. Curious2019

    Curious2019 Well-Known Member

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    That sounds like a pretty expensive block in Perth for a relatively small size.

    What kind of house do you want to build? 250k isn’t a huge budget to build. Don’t forget you need allowances for site costs, landscaping and driveways which are often not included in the base price of a build. You might be able to do a basic 3bed house for that price.

    Why don’t you speak to some project builders and get some quotes before you commit to buying a block. You might also have a better idea of the specs that you want.

    It took us months to get final quotes on our build. The initial price you get when speaking to the sales people is nowhere close to the final quotes you get from the builder.
    Before you commit to a block, I’d suggest getting the plans from the vendor and showing them to a builder to see if there are any issues with slope or soil type.

    We had to pay an extra $15k for concrete piers because of our soil type.
     
  4. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    I think it would be possible but it would be tight and if you have access to the grants on top of that it would be helpful. You will need to manage your expectations very carefully and if it's a narrow block (under 10m) it will be more expensive to construct than a 12.5m ++ block. Hopefully it's a flat, regular shaped block that's wide enough so that you only have minimal building on boundary (ie a garage wall and nothing else)

    When you say the land needs clearing - how much? Does it have trees or structures on it or just grassy weeds?
     
  5. Joeban1

    Joeban1 New Member

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    Perth
    No, its just shrub/weed all over it. It is a subdivided lot that was demo'd and split in two a few years ago so i would imagine the land shouldnt need to much work as it previously had a house on it? For reference both of the new lots are on the front (ie - its not a battleaxe).

    Its also a narrow block (10.04m wide) :( which i didnt realise is going to be more expensive. Any idea how much more and why?
     
  6. thatbum

    thatbum Well-Known Member

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    Perth, WA
    Have you looked into what you can build on the lot? What if you can't build what you had hoped? Either because of the cost but also just the planning rules.
     
  7. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    The main reason is because when you build on a block that is let's say 10m wide then you have more building which on the boundary which is generally more expensive. However 10m wide is a common width so there is a lot of designs already done and costed which does help. Your budget will be only for a single storey house.

    If the lot is in an established area you may wish to try and protect yourself against unknown contaminants. For example I know someone who bought a block that previous owners had buried asbestos fence and when the builder started digging for earthworks it was discovered. It's not common but it is something to be wary off so you may wish to find out from the current owners if they will warrant that the demolition of the old house included raking to 400 or 600mm and no contaminants were found etc.
     

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