Granny flat owner build - need help

Discussion in 'Granny Flats' started by kamran, 11th Sep, 2017.

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  1. kamran

    kamran New Member

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    hi,

    I have seen many threads on internet with no clear responses and I am hoping we can star sharing our knowledge here, I am thinking on building a 60 sqm granny flat (2 bed, 1 bath) in the backyard as owner builder and have few questions hoping someone could help:

    - what would be the estimated cost of frame installation including materials and labours? Would I be better off if I buy the frames myself?

    - cost of waffle pod concrete?

    - anyone has recently owner built a granny flat in Sydney ? How much was spent in total and any tips and tricks?

    Really appreciate your help guys,

    Kam
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Has it been designed? DA approved? Engineer's plans submitted? Soil classification?

    Is the site level? Been excavated? Building to be demolished? Site access?

    Send it to a couple of concretors for a quote.

    Frames - who else is going to buy them or are you visiting random sites to pick a couple of frames which will fit? Send the plans out for a quote supplied and fixed.

    Have you factored in the cost of home warranty insurance for each trade?

    Have you done your owner builder's course?
     
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  3. Archaon

    Archaon Well-Known Member

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    @Brazen is the GF guru around here, and deals alot in the Sydney area.
     
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  4. Gingin

    Gingin Well-Known Member

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    13k for slab. 9k for conventional frames. Did one a year ago. If you have no building experience, use a pro. It'll be cheaper, better and quicker.
     
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  5. kamran

    kamran New Member

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    Thank you all.... I guess I am up for the challenge of building it myself although no experience in building..... I am mechanical engineer and have done project management too so not sure my background would come handy or not....

    Another option I was thinking was to get the builder do it to lock up stage and I do internals by organising the tradies and hopefully saving on the material....do you think I would be saving any money this way?
     
  6. Scott No Mates

    Scott No Mates Well-Known Member

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    Project management skills will be an advantage.

    Will you save money? Can you buy better than a volume builder?
     
  7. kamran

    kamran New Member

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    Thanks Scott.... I am thinking the builder charging me %10 gst and I guess %30 margin so even if I screw the budget up by %40 then I would still break even .....

    I had couple of quotes from builders and giving one of them as an example, they are asking for $65k once the roof tiles installed but before the external cladding !!!...so they are actually collecting their margin at early stage of project, anyway given the numbers from Ginjin above...$13k for slab and $9k for frames so intotal $21k...how much would the initial utility connections cost (sewer, initial plumbing,...)...not $40k for sure !....
     
  8. Speede

    Speede Well-Known Member

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  9. neK

    neK Well-Known Member

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  10. kamran

    kamran New Member

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    Thanks Gingin......can I ask how much the roof costed you?...I am thinking of cement tiles
     
  11. Brazen

    Brazen Member

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    Kamran you can definitely save by doing it yourself BUT you have to ask yourself a few questions:

    1. How much can I save? Around $15,000 to $20,000 BUT you'll take much longer than 12 weeks (up to one year is quite normal I'm told) so you'll lose 9 months of rental income = $15,000 in rental income lost. So you're only $5,000 in front, if that.

    2. Can you get finance? Banks rarely lend to OB's especially for a granny flat.They readily loan if you have a building contract.

    3. Will the quality be as good? Hiring critical trades (slab, framers, tilers etc) means checking that everything is straight, properly sealed/membraned and termite/water protected etc. make a mistake there and you're in real trouble.

    4. Are you best protected? A builder will (and must) provide Home Owner Warranty Insurance in NSW and that protects you better than the DIY route. Having to chase individual trades for dodgy work is a nightmare.

    5. What's your own time worth? If you have a FT job, you'll be doing this every night and every weekend for up to a year. You'll have to organise deliveries, trades, tackle inclement weather and rubbish removal etc. Your time with family, friends and any social life will also be significantly affected. Building is quite stressful. Remember that your time is money too.

    There are lots more things to consider but you get my point.

    I look at it this way: I don't mow my own lawn. Why? Because it takes me 60 minutes and I work my normal job for $80 an hour. So I hire someone who does it for $60 and I don't have to buy and maintain a mower and I don't have to buy fuel etc. It's just not worth mowing my lawn myself.

    So by going OB, you'll save $5,000 and you'll be less protected, stressed out and not much better off (if at all) financially. Now if you were a developer doing this sort of thing every day as a living, yes BUT you're only allowed one Owner Builder Permit every five years.

    Now, if you were building something huge (say duplexes or townhouses) and you took a year off work to do it, it's possibly worth it since you can save $100,000 or more but again, you'll take a year off work. If you earn $80,000 a year, you'll save $20,000 while you put your career on hold.

    Final note on lock-up: Not many builders will go to 'lock-up' nowadays because they don't want to get sued, say, when the plumbing breaks and the fault isn't his. i.e. dodgy internal plumbing and you take him to court. Then there's only the 1/2 profit he makes ($10,000) making it not worth it for him/her.

    I hope that helps you with your decision.

    Brazen.
     
    Last edited: 14th Sep, 2017
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  12. Tonibell

    Tonibell Well-Known Member

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    I'm someone who tried a granny flat owner build with similar confidence - I'm sure @Brazen remembers our North Ryde project.

    One stuff up can quickly see any savings or benefits disappear - I also think the certifiers are a less forgiving for an owner builder.

    In our case we were lucky that Serge saved the day and there was no thought of an OB for the next one (or since).
     
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  13. neK

    neK Well-Known Member

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    One of my friends who used Granny Flats Sydney | Expert Builders, Approvals & Designs for drafting only went down the Owner Builder path.

    It worked out well for him, he saved about $20-30k.... BUT that was because

    1. His father was a retired builder
    2. The trades were ALL of his father's close mates (or the trades worked for his father's mates) so everything was AT COST.
    3. No short cuts were taken by the builders out of respect for the father.
    4. Any screw ups were fixed up by the father.

    So yes, it can work.... if you have that level of connections. Even if I asked my mate to help me out with trades on a owner build there is no way I would get that level of service and would most likely find myself in @Tonibell 's situation.
     

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