PROJECT BUILT HOME
Here I've outlined my personal experience working with a Volume Builder.
I chose the area I wanted to build in. It was a 95% owner occupied estate. There was a large playground and plenty of public open space.
I chose a block which had been on the market for some time.
I put my choice block on hold while I undertook further investigations.
I choose a floorplan I like from the volume builder I'd chosen to work with.
The advertised price - $203,400.
It was 4 bedrooms, 2 bathrooms, 2 living areas and a double garage. It was 28sq.
I visited the block with the sales consultant and asked them to prepare a quote.
They estimated $20,000 worth of site costs.
Knowing the block had been on the market for some time I went back to the developer and negotiated the block for $135,000 (which had an asking price of $140k)
I negotiated further and had the block levelling included in my price. I chose a straight site cut that could be bevelled down in the back corner to avoid any retaining wall costs.
I went back to the builder who only made a $5000 allowance for the site levelling and dropped the site costs to $15,000 which they stated was for slab upgrade, drainage and temp fencing.
Happy with how things were progressing I had another appointment with the volume builder for the purpose of preparing a formal quote.
During that initial consultation I added $53,908 worth of upgrades.
Here's what I added:
- Promotion Item – A driveway pack $2500
- Promotion Item – Flooring Pack $3990
- Promotion Item – Kitchen Pack $2990
- Site Works – $15,000
- Bushfire requirements - $4,611
- Colourbond Roof - $3,120
- Infills (replacing fibro cement sheet with brick above windows) $1900
- Infills (replacing fibro cement sheet with brick above garage) $1130
- Flush tiled shower base X 2 (rather than insert) $860
- Stainless Steel single bowl trough in laundry $380
- Laundry Benchtop Extension $353.10
- Laundry Base Cupboard $236.00
- Alfresco Area $16,838
Total of Initial upgrades: $53,908
Initial Consultation Price: $257,308
Then I take a visit to the Showroom to choose my Electrical Inclusions.
- Upgrade to 4 star ducted central heating unit
- Evaporative cooling
- Upgrading all batten lights to downlights
- Pendant lights over kitchen bench
- Extra lights
- Nicer switches
- Outdoor lighting
- Data Point Package
Total of electrical upgrades: $10,226
Electrical Consultation price sits at: $267,534
Following my electrical inclusions consultation it's time to choose my particulars, including colours etc.
Total of particulars upgrades: $7226
Here's what I chose to upgrade at this stage:
- Obscured safety glass to wet areas $346
- Brick Mortar Colour $747
- Obscure glass to front door sidelight $88
- Master Bedroom Walk In Robe shelving $526
- Wider vanity cupboards in 2 X bathrooms $132.80
- Chrome Flush Plug in basin X 2 $22
- Extension to width of Island Bench cupboards $73.80
- Extend width of ceasar stone benchtop $162.30
- Add glass splashback to kitchen $1122
- Upgrade kitchen mixer tap $125
- Upgrade Ramgehood $603
- 3 X bedroom robe shelving $789
- Towel Rails and toilet holders $378.00
- Hinged door $260.00
- Internal door lock $78
- Curtains & Blinds Upgrade $1815
Particulars Consultation Price: $274,760
I then get fined with a price increase for the contract not becoming unconditional within 270 days of the initial deposit being made $1017
Time Extension Price : $275,777
ADVERTISED PRICE $203,400
CONTRACTED PRICE $275,777
Then the home build begins and the home is completed.
Further Costs upon completion equate to another $26,621
That price includes:
- Driveway, Cross Over, Paths $5152
- Fencing and retaining $6964
- Landscaping $14,505
Total cost of landscaping, paths, crossover and driveway $26,621
Total Cost of Block $135,000
Total Overall Costs: $437,398
I upgraded to a driveway pack for $2500. However when they completed the home I realised that only accounted for one single driveway despite that I had a double garage.
I also had to pay for a crossover.
There were no practical paths included. There was one from the front door to the footpath but I needed to then add one from the driveway to the front door, along the side of the house and from the laundry door to the clothesline.
House upon completion I sold the home for $485,000
Equity Created: $47,602
If you’d built this home as a Victorian first home owner, you’d also have received the $20,000 first home owners grant adding another $20,000 to your equity position.
First Home Owner Equity $67,602
Note - FYI
The existing home owner who purchased this home paid $21,000 in stamp duty tax on top of the purchase price.
Had they been an investor they would have paid $24,000.
An existing home owner who built this home would have paid just $3120 in Stamp duty on their $135,000 block of land compared to $21,070 saving them $17,950
Stamp Duty Saving for existing home owner who built this new $17,950
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