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.
Upgrades included:
- 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
Plus
Total Cost of Block $135,000
Total Overall Costs: $437,398
Unexpected Costs
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
Disclaimer
We value the privilege of sharing what we’ve learnt from our own home building successes but please understand that by signing up for the Building Home Masterclass you acknowledge that your experience could be different to ours and Build In Oz, its founder, director or associates do not take any responsibility for your experiences, relationships or outcomes both personally or financially, that you may have as a result of engaging with Build In Oz or it's associated content.
