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Discussion in 'Introductions' started by Scotty, 21st Aug, 2006.

  1. Scotty

    Scotty Member

    Joined:
    6th Aug, 2006
    Posts:
    18
    Location:
    Pheasants Nest,NSW
    Hi all.

    Just introducing myself. I'm a fairly typical investor - I like property but acknowledge the importance of diversification hence super and am now involved with Navra.

    Does anybody have any ideas on building costs? I have almost paid out my home mortgage and am looking at extending the existing home. Probably adding a couple of rooms. I am right at the initial stages i.e only thinking about it. I realise it would be best to get quotes and then consider if it is worth doing ,or even demolishing and starting all over again.

    Has anyone experience of a similar nature and ballpark figures for cost per square metre?

    Thanks.

    Scotty
     
  2. Jacque

    Jacque Team InvestEd

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    Location:
    Sydney
    Hi Scotty :)

    That's a difficult question to answer without knowing so many other variables about your property.
    Are you planning to go up or out?
    If out, is the land level that you're extending out onto?
    What construction materials will be used?
    How many squares are you intending to add?
    Will the current roofline be altered at all?
    Are you building on a slab or timber?

    The best idea is to get at least 3 quotes from reputable builders, unless you're planning to do it yourself and owner-build.

    Also factor in about 10% on top of anticipated costs, as a contigency plan. There's always the inevitable overlooked cost or problem that seems to crop up with home extensions, and you need to be prepared.

    Have you considered moving at all? The reason I ask this is that it may be more cost effective to buy a bigger home, should your research indicate that it's more worthwhile.

    Good luck with your decisions and welcome to InvestEd!
     
  3. Scotty

    Scotty Member

    Joined:
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    Location:
    Pheasants Nest,NSW
    Thanks Jacque.

    I realise I sound pretty vague as I am right at the start of what will be a lenghty process.

    In answer to your questions

    Basically we love where we live, have a few acres so there is no problem building out. Land is fairly flat, can go out on one level easily - adding to double brick area but probably brick veneer extension. How many squares? - probably 2 bedroom size type (however many squares that is). Probably not involve roofline.

    Was probably going to get some builders advice, have what I want drawn up by architect and then get quotes from builders then.

    Do you know if there is a rough formula I can apply on a square metre basis?
     
  4. Jacque

    Jacque Team InvestEd

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  5. Scotty

    Scotty Member

    Joined:
    6th Aug, 2006
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    Location:
    Pheasants Nest,NSW
    Thanks Jacque.
    That's a pretty informative cost guide and should come in useful. You're pretty useful - any good with building tools?
     
  6. Jacque

    Jacque Team InvestEd

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    Hehe Scotty :)
    I can operate simple tools, a drill, a belt sander and I'm pretty slick with a paintbrush (got it down to a fine art) but I haven't done a hands-on reno for over two years now. Mainly chequebook renovations have been on the agenda, due to the distance from my IP's and my lack of time.
    Instead, I'm now running my business doing what I love best- helping home buyers and investors to find quality property at the best price possible :D

    I'm sure others more qualified than myself will be able to share cost per sq metre for building costs- Simon? Carl?
     
  7. TryHard

    TryHard Well-Known Member

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    Um, I would have to admit to being one of the least-attentive-to-numbers people I have ever run across, but ...

    I reckon a renovation (if not hands-on) costs more on a per square metre basis than a new build. So Scotty the closer you can make your extension to a hassle-free (for the builder that is) new build, the sharper their pencil is likely to be :) I think builders like simple, no-surprises jobs.

    The only recent experience I've had is the PPOR we are currently building. Its 300 square metres under roof (50 sq m of that being alfresco) - its costed at $666 per square metre (rendered brick, 9 foot ceilings, tile roof, which all affect the price) That's Brisbane prices with a small private builder. The big firms can do cheaper I think, but I've not had great experiences with them. I'm using him 'cos he does a great job (we built our IP with him) At least I thought the bigger firms did it cheaper - but now I've seen that Archicentre link I might stop complaining about the price !

    Scotty - a lot will probably depend on what the rooms are - I guess the more bathroom and kitchen work the higher the price - that Archicentre link breaks the stuff up pretty well.

    In Queensland some extensions can be better value as people build under the existing house - if its a highset style of course ... (effectively needing to spend money on a ceiling, but not needing a roof :) ) Friends recently built under an existing highset and I reckon its cost about $750 per square metre for 80 sq m (fiddly excavation etc adds to the price I 'spose)

    HTH

    Cheers
    Carl
     
  8. Scotty

    Scotty Member

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    Location:
    Pheasants Nest,NSW
    Thanks Jacque and Carl. Got my ballpark figures now and have some thinking to do. Carl - sounds like you are a Queenslander - my next IP will be in your state. The Land tax in NSW on HDT is hurting quite a bit. I believe there is no land tax until you exceed a fairly hefty threshold (can't remember figure of the top of my head) even on a HDT. I don't know the market too well there and am thinking about getting a Buyers agent to help out. Looking for all the usual - CG, and as close to cash flow neutral/positive as possible. Purchase price $350-400k, house rather than unit. Do you have any recommendations?
     
  9. TryHard

    TryHard Well-Known Member

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    Hi Scotty

    That land tax threshold is I believe around $275K (you're right, even for a HDT if I remember correctly) - of course you can fit a lot LESS properties in that threshold these days thanks to the latest round of valuations - bittersweet !

    I'm not really a typical (or smart!) investor and most of our stuff has been bought either as a PPOR or neighbouring property to protect the privacy of the PPOR !

    To my ignorant way of thinking I believe a lot of the areas popular with investors are overpriced - for example there are some huge fans of Ipswich over on Somersoft forum, but for a number of reasons I would never buy there in a pink fit (but then I am following more the Navra way of thinking - but in owner occupier areas at 25% above the bottom end of the market).
    Conversely we are only 15km from Ipswich and got excellent quality tenants in the acreage area of Karana Downs (good returns but a poorly serviced suburb as its kind of stuck between Ipswich and Brisbane).

    With that sort of money to spend I personally would look in the western suburbs within 6km of Brisbane CBD - Red Hill, Paddington, Toowong - I think the CG will remain reasonable there (and I'd look there because we are over-exposed to outerlying acreage property and have nothing close to town :( ) However the typical Red Hill cheapie might well need a lot of money spent on it in that price bracket - beautiful older homes in nice leafy streets, but many 100 + years old (no sign of Depreciation Allowance !)

    (Watch out close to city for resumptions due to all the tunnels they're planning to build !) I think you'll find a lot of FP's etc recommending some of the outerlying new developments on the Gold Coast corridor etc, but that's not my cup of tea.

    As a local on the western side of town, Brisbane is a bloody mess at the moment. The various politicians suddenly pulled their fingers out and we have last-ditch attempts at water pipelines and roads that should have been done 10 years ago. We seriously contemplated moving North and coming back in 10 years - and if it wasn't for our move to a more rural setting we probably would have ! Definitely come and spend a couple of weeks in Brissie before settling on a suburb you believe suits you for investment - they all have their challenges at the moment :) Jacque might know a good Qld-based buyer's agent ?

    Best of luck
    Carl
     
  10. Scotty

    Scotty Member

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    Location:
    Pheasants Nest,NSW
    Thanks Carl.

    As you said Ipswich area is being heavily touted. Will do a bit of research and probably be advised by buyers agent. Thanks for your input.

    Scotty
     
  11. Jacque

    Jacque Team InvestEd

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    Location:
    Sydney
    Hi Scotty
    Have sent you a PM regarding BA in Brisbane.
    I know where you're coming from with the land tax- it is frustrating that NSW doesn't follow Qld's lead here, but the laws can (and hopefully will) change regarding leglislation like this.

    Good luck in your search! :)