Join Australia's most dynamic and respected property investment community

Ideal house size of an IP

Discussion in 'Development' started by teetotal, 14th Jan, 2016.

  1. teetotal

    teetotal Well-Known Member

    Joined:
    7th Nov, 2015
    Posts:
    398
    Location:
    Sydney
    Hi All,

    Land is about to settle in next 4-5 months. Thought I'd start preparing for the build now.
    Was thinking what would be the ideal size for an IP home.
    17sq, 19sq, 21sq,25sq etc. etc.
    In your opinion, what size strikes the balance of meeting the demand of majority of the market & being cost-effective at the same time.

    I am aiming for a 4x2x2 configuration on >500sqm land located in Melb. South-west.

    Cheers,
     
  2. Coota9

    Coota9 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    971
    Location:
    Melbourne


    Good video on the subject regarding optimal size and quality
     
    teetotal and Leo2413 like this.
  3. Leo2413

    Leo2413 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    5,852
    Location:
    Sydney
    @Coota9 very good video. Thanks for sharing.

    Its the exact delimma i was having when discussing my Brisbane development with my architect. Realised there was a price ceiling on 'X' size in this suburb/street and no use spending more $$ going bigger. So we reduced the size but kept the same level specs and we expect the outcome not to be negatively affected (fingers crossed).
     
    teetotal likes this.
  4. Veech

    Veech Active Member

    Joined:
    19th Jun, 2015
    Posts:
    34
    Location:
    melbourne
    you wont find much saving between say 21-25sq when building with volume builders. Probably 10k and your end values be 20-30k higher. Land is cheap and people tend to value more for building/specs
     
    teetotal likes this.
  5. teetotal

    teetotal Well-Known Member

    Joined:
    7th Nov, 2015
    Posts:
    398
    Location:
    Sydney
    Thanks for the share
    It does make sense to check the price ceilings of the area. What has others found worked for them ??
     
  6. teetotal

    teetotal Well-Known Member

    Joined:
    7th Nov, 2015
    Posts:
    398
    Location:
    Sydney
    Another thing I got thinking today is that - is it worth building your IP in a way that it supports further growth in future?
    For example, if you only build a small 3×2×1 house on a lot and leave enough land size that can open up option for a secondary dwelling in future.
    What are your thoughts? ?
     
  7. Cactus

    Cactus Well-Known Member

    Joined:
    18th Jan, 2016
    Posts:
    1,002
    Location:
    Melbourne
    Really? Who are you building with. I find a big difference like at least $7-8.5k per square so $30k for your example. Which is kinda why a valuer values it that way.
     
    Leo2413 likes this.
  8. Leo2413

    Leo2413 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    5,852
    Location:
    Sydney

    I would be closely looking at what the demographic want and cater the build closely to that. I think future thinking reflected in the build is good as long as it doesn't screw the numbers up and/or affect cashflow when rented.

    Just my take.
     
    Cactus and teetotal like this.
  9. Veech

    Veech Active Member

    Joined:
    19th Jun, 2015
    Posts:
    34
    Location:
    melbourne
    I took few screenshots @catlan from one of the volume builders. Going by portersavis homes Bermuda,18sq priced at 153k and 23 sq priced at 167k.

    ps just giving an example, not promoting them. There would be plenty of builders much cheaper aka simonds,Burbank or Denis family homes. I built 6 years back , so no recent experience.
     

    Attached Files:

    Last edited: 20th Feb, 2016
    teetotal likes this.
  10. Luca

    Luca Well-Known Member

    Joined:
    28th Jan, 2016
    Posts:
    124
    Location:
    Melbourne
    No bad, must check what`s included in the price, no clear on the website!
     
  11. Cactus

    Cactus Well-Known Member

    Joined:
    18th Jan, 2016
    Posts:
    1,002
    Location:
    Melbourne

    Smoke and mirrors... Have a look at the two floor plans they are completely different not just extension of a different room.

    Option both up completely with floor coverings etc to a turnkey spec and then compare. I would anticipate that the gap between the two will change quite a bit it will not be linear. This is why the strip it right back and price a base level.
     
    Leo2413 likes this.
  12. Veech

    Veech Active Member

    Joined:
    19th Jun, 2015
    Posts:
    34
    Location:
    melbourne
    I thought we are talking about build area cost. Not floor plan or fully specimg the house.
     
    teetotal likes this.
  13. Cactus

    Cactus Well-Known Member

    Joined:
    18th Jan, 2016
    Posts:
    1,002
    Location:
    Melbourne
    Not sure what you mean, but hard to rent a house that has no floor or window coverings...

    The floor plan of a building is important. For example more tiled surfaces cost more than carpeted surfaces, A 2mx10m house has more bricks than a 4mx5m house yet both are 20m2! A house with plumbing all located down one side and close to the tapping is cheaper than all over the place. So many reasons you can distort the price between two difference floor plans.
     
    Leo2413 likes this.
  14. teetotal

    teetotal Well-Known Member

    Joined:
    7th Nov, 2015
    Posts:
    398
    Location:
    Sydney
    Understood your other points but didn't get this one.
     
  15. Cactus

    Cactus Well-Known Member

    Joined:
    18th Jan, 2016
    Posts:
    1,002
    Location:
    Melbourne
    4+4+5+5=18m of brick wall
    2+2+10+10=22m of brick wall
    That's over 30% increase in bricks for the same m2 of floor area.
     
    Leo2413 and teetotal like this.
  16. Luca

    Luca Well-Known Member

    Joined:
    28th Jan, 2016
    Posts:
    124
    Location:
    Melbourne
    What do you think about Carlisle? They have good set out and include landscape in the whole package but on average more expensive than the others.
     
  17. Cactus

    Cactus Well-Known Member

    Joined:
    18th Jan, 2016
    Posts:
    1,002
    Location:
    Melbourne
    They are aimed at upgraders. They are a bit on the expensive side, but have a nice finish. Have you looked at Thiet easy living range which is good for an investor product.

    I find Simonds hard to beat on value with their spend $15k get $45k of value promo. Have also had some success in negotiating some extra inclusions for free.
     
  18. Luca

    Luca Well-Known Member

    Joined:
    28th Jan, 2016
    Posts:
    124
    Location:
    Melbourne
    Thanks @Caltan. Yeah I know, Carlisle look a bit expensive. Still looking around, difficult task is to find a good design when it`s a small lot. Luca
     
  19. Cactus

    Cactus Well-Known Member

    Joined:
    18th Jan, 2016
    Posts:
    1,002
    Location:
    Melbourne

    How small 8.5m 10.5m by 25/28/30/32?

    Whereabouts as well?
     
  20. Luca

    Luca Well-Known Member

    Joined:
    28th Jan, 2016
    Posts:
    124
    Location:
    Melbourne
    Well, looking to different sizes...12.5x21 12.5x28 14x21 14x28....the smaller one is hard to fit a good layout...