first time developement -need help

I have an existing block with a house on it in the SE of Melbourne.I want to keep the existing house and build at the back . The frontage is 15.42 wide by 45.72 in length .
After reading all the valuable information posted here and speaking to experts such as builders and designers etc I basically narrowed down the project down to 2 options

1. Engage a town planner and designer/architect to obtain planning permits ,working drawings and DA and then tender to find a suitable builder to build a 3 BV townhouse with ensuite ,2nd bathroom ,double or single garage or

2. Engage volume builder to obtain the planning permits and also build the town house ,sort of a one stop shop. Large volume builders have informed me they do not do subdivisions ,whilst more smaller builders such as stroud homes in berwick,Frenken homes are willing to take it on.

My dilemma is if I go with option 1 and, my budget is $300,000 once the designer or architect draws the plans and working drawings and it goes for tender .I might have to make lots of comprises in terms of quality to get it within budget when it comes to building .I dont want the quality compromised because this a is IP I want to keep for income /yield

Option 2, I know what I am getting up front but ,how will the volume builder charge if there are variations .As we all know ,there homes may not suit my block when it comes to council planning regulations and res code requirements and,I will be up for huge $$ when it comes to variations.

I appreciate any input from anyone who has anything to offer with regards to the steps and process in undertaking a development of this nature and any contacts ,if that is not too much to ask .

 

Firstly assuming it's a "conventional" site, flat (relatively). If you're a first timer, or have little time to manage the project your "home builder" option might be the way to go - fixed fees once you have agreed on the solution. They make their $ out of the build and generally "fake" up front costs to make it look as though they are low cost. BUT you have standard houses, they do the design work. Second house behind the first, so not real impact from a planning/Council perspective. Once prelim drawings are prepared get a town planner to review (eliminate as much as possible issues that the builder may not have picked up upon), and add in a two lot subdivision as part of the application process - alternatively get the planning drawings done by the builder and flick the whole lot over to a planner to manage the process (best of both worlds)

That should keep the budget tight, and process simple

 

How did you come up with a 300k figure? Usually what will dictate the build cost of a project is what the market wants and is the general acceptable level of finishes for an area/stock type. If your area generally sees builds for example ranging from 450k to 500k and you try to do it on 300k, that could be a disaster for end value due to under specking and your house being the worst in the area.

Also don't forget all your soft costs you need to pay cash upfront. These generally include everything from architectural and engineering fees, to legal fees, pre- and post-construction expenses, subdivision physical works, permits and taxes, insurance.

 

Thanks your responses are invaluable .Firstly , I have kept a side $50K for the documentation and planning and any hidden cost that may pop up . I budgeted $300K for the construction after inspecting a townhouse built by a person who I know who did a similar project, not far from me in sea ford Victoria.

A builder based in Geelong(trevor homes) VIC did concept drawings for free and gave me a fixed price of $330k including design & documentation, planning permits to engineering ,chattels for a 3BV 18.92 SQ town house ensuite and 2nd bathroom .They state they are multi unit specialist and also gave me references to check out.

I was not too impressed with the inclusions and wanted a few extras such as stone bench tops etc . The price excludes driveway ,service connectons totaling $34 to 40K . This is my option 2
Will I need a town planner as well if I chose this option ,not to sure tufan by what you meant "flick the whole lot over to a planner to manage

 

Most builders like Trevor Homes will arrange everything for you - but you do loose a bit of control. Be careful of inclusions and exclusions - that's where the unknowns and extras can hit you.
If you "like" the plan from the builder and they offer full service (ie town planning), maybe go with that. It's an easy option. As I say, alternatively get the builder to do the plans etc and have a planner take over the application process and deal with the Council.
If it's not complicated most builders will muddle through
Oh, and don't forget subdivision as well...

 

Can you give me breakdown what you spent that $60K on ? . I have allocated approximately 15K for the plans and permits and approx $15K for DA or building permit including fees and charges and another $20K for civil works .I estimated $300K for the construction ie $1650/SQM for a 20SQ 3BV town house .
I am afraid I have miscalculated or missing something

 

I have some input Frank.

I personally would go for option 2.

I don't think your initial concern is valid. A variation is a post contract change. They can be expensive because you are making the builders job harder making changes mid way through the job.

It shouldn't be hard to find a builder that either has a no example of a floor plan similar to what you need that they can customise or they may be happy to start with your sketch or ideas.

One other aspect - i would consider putting any subdivision related expenses that you don't have cash for into the fixed price building contract that you can.

It sounds like for your knowledge level it will be best to find a well regarded builder who is happy to do as much of the whole project as possible.

I see people in your situation wind up spending all their money on house drawings that don't suit the build budget, expert fees that the builder could have consolidated and subdivision costs and have no money left to build.

Perhaps start with the builder you mentioned who completed a similar project?

Good luck

 

Also, re subdivision, in my area I find a good surveyor to be the best place to start.

I find them the cheapest way to get the right info and put a DA through council. When people start with architects for example for simple subdivision DAs they can get overly complicated and un necessarily expensive quickly.

May be different in other areas, I'm not sure.

 

You are right ,in this soft market i should be able to get a good deal
Keep you posted
Thanks for the input

 

A update on my build progress . Approached a builder called STROUD HOMES in berwick victoria .They requested $605 to arrange a soil test ,contours ,BAL and wind speed . If you decide to take the next step they will arrange preliminary working drawings & preliminary slab design @8.80 SQM & slab engineering for $140 or I can take the soil test report and leave .

If I choose to go ahead I pick one of their homes and the designer( outsourced company ) will adjust or amend to suit my block size . The town Planner I engage will facilitate the application process until the plan & permit is granted .
Stage 3 $2900- is contract preparation -arrange engineering,slab frame ,drainage & lintels ,6 star ,etc
Has anyone been through this process before ? They prices include over 81 inclusions and at $1200 sqm

 

The Stroud franchise near me are good operators. Fwiw

That all sounds reasonable.

Make sure you understand whether the numbers thrown around are gst inclusive or not.
Make sure you understand the inclusions/exclusions. It can sound daunting and it's easy to overlook things but read the list a few times, walk around the place you live in and try and work out what's missing.
Don't assume anything is included until confirmed.

Traps for younger players include:
Energy rating requirements (water tank, insulation etc)
Bushfire (gutter guard etc)
Fly screens
Floor coverings
Driveway
Letterbox
Clothesline
Landscaping
Window coverings
AC
Heater
Hot water system size
Etc etc

Go through a display home with someone in the company who you can hold accountable and ask about what e standard level inclusions are... You might find everything down to the chrome shower drain is an upgrade...

Ask to speak to previous clients and see homes hey have built. Google/Facebook them for reviews.

Specifically you need to get in writing a scope of what they will and won't do for you regarding town planning, subdivision DA, titling service connections etc.

Get a quote from council for contributions too, if you haven't already.

$1200 m2 sounds like very good value to me.

 

@goodtimes some good tips - I recall walking through display home and asking the rep how much the home would cost to build.
They quoted ~$260,000 being close to $1,100 per m2 with bit more prompting, the same house with all the inclusions/upgrades would be around $350,000

 

Thanks good times .STROUD homes quoted $1200 to $1400/sqm including 81 inclusions. All of the above you mentioned ,excluding gutter guard .Down lights ,dishwasher , Westinghouse products .My next question is how much for the design and permits ?

 

NBN
Basix incl glazing compliance
Data
TV points
a rain garden (Hills Shire Council really!!)
Solar provision (some council now want this)
Plumbed fridge provision
Kitchen cabinet specs
Paving and similar
Powerboard - How many circuits ? Will it cater for a split or need extra circuits on load?
Light fittings beyond a bayonet
Fans
Dishwasher point
Laundry and kitchen exhaust vents
Extra coats of paint (yeah kid you not).. eg Two by spraygun . 3rd by roller....Really !!
A specification for a AC or HWS, appliances that is suitable (many may underquote a cheapie and offer upgrades)
AC timer / controls and zoning
Door bell wiring
Alarm wiring
Pergola / alfresco ...Not all are paved
External water taps and power
How many double PPs do you want in a room (1?)
USB charging to power points
Data cabled to power points
Recycled water / irrigation
Roller door / panel - Motors
Brick choice
Tile choice
Fascade choice
Pitch of roof
Site costs
Extra site costs on rock
Fencing
Gate/s

Its far worse than buying a new car.

 

Is $1200sqm inclusive of gst?

 

Its approx $1400 inclusive of GST ,But you accept one of there designs and then panel best it to suit your block
The trick is how much panel beating ?
I have my eyes on the Wilton 209 ,double storey 21 sq 4bv
Have a look at it .
Tell me what you experts think