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Project homes - advice

Discussion in 'Real Estate' started by bobo, 24th Mar, 2008.

  1. bobo

    bobo New Member

    24th Mar, 2008
    I finally got myself a property in northern suburb of Melbourne. Nice block for the area 550m2. The house sitting on it is pretty old, at a minimum re-stumping and a new roof is needed.
    I want to build units but the costs associated with it scares me off a little. So I think I have settled on rebuilding and my job is not going to allow me to self-manage the project. So after looking around I started to bump into sites such as Metricon, Burbank, Somonds ect. Their prices are in my range ~$150-175 and the houses look good (from the internet).

    So I guess my question is are these type of places reputable? Is it value for money considering you sit back? How high are penalty fees for deviating from their plan, i.e put my own oven, or move the bathroom ect.?

    I'm looking to make this place my primary residence, dog and all.
  2. Aimjoy

    Aimjoy Member

    13th Jul, 2007
    Central Coast NSW
    Bobo, Metricon is probably one of the largest builders in the state. Sorry I can't make comment about the other two - don't know them. Have to be reputable IMHO or they could not be the biggest and stay around without appearing on Current Affairs type programs.

    Look, these guys make money from a couple of things:
    1. High volume
    2. Standard plans over and over
    3. Screwing their suppliers and sub-contractors down to a price
    4. Variations - this answers your Q re deviating from the plan. If you change from the std you are going to pay. It just upsets the whole train of the sausage-making machine.

    All the best with it bobo.

    Last edited by a moderator: 24th Mar, 2008
  3. Billv

    Billv Getting there

    15th Jul, 2007
    Sydney, NSW

    I am in Sydney so I don't know Melbourne developers that well.
    I would ask Michael Yardney for his opinion on local builders
    and he could have some advise as to the development you are thinking of doing.
    His phone number is on the website
    Michael Yardney's Property Investment Update

  4. Chomp

    Chomp Well-Known Member

    12th Jul, 2007
    I can only comment on WA Project Home Builders, as Aimjoy has said they set up a system (sausage factory) and do not like to deviate to much from this as it causes problems, the charges are not really a penalty, they need to make a percent of profit on changes. If you do want to make changes make them before the contract is signed and do them all at once.

    They are generaly good value for money as their profits are from volume of sales. You need to check the quality of fittings they supply as generally they are the cheapest available.

    If it was me I would put a finishing date on the contract with a penalty clause for late completion.