STYLE HOMES

Does Your Site Qualify For A Dual Occupancy and $280,000 PROFIT?

The owner of the site was originally told by someone else that he could only get a 2 bedroom granny flat. With careful planning and design, we got him a 4 bedroom, with Study, ensuite and walk in to main bedroom, single garage and huge living spaces and a yard to match.

so what does that mean for our client? A weekly rental of up to $680 (compared to $350 for a granny flat).... But that’s not the best part.

We are able to Strata subdivide the property which means that he can hang onto 1 of the houses and sell the second one separately. So whats the value increase? The new home alone would receive offers over $780,000 with the existing house not too far behind on price. Total potential return on the site itself would be around $280,000 PROFIT.

What Do The Statistics Mean For You?

With the residential building industry booming, there are a huge number of houses being constructed which is leading to a rise in complaints lodged by consumers.

The statistics released by the NSW Department of Fair Trading show an increase in complaints from 2013-14 to 2014-15 (the 2015-16 financial year results yet to be compiled). Grab the stats here

The greatest complaints being around Workmanship and Quality of finish - the builder coming back to fix defects. So why is this happening?

With the large volume on building happening and increase in land pricing, the consumer is screaming for a cheaper build and some builders are happy to oblige. When pricing becomes the main point of the home, that’s when builders cut corners to save cost. This also includes them not returning to fix defects.

We all want a fair price right? We’re happy to pay a good price for a nice dinner or some nice clothes.... so why do we compromise for the sake of price with such a huge investment as a new home?

The best way to avid becoming pat of the statistics is to research your builder and see if they have any current complaints lodged against them and how they resolved these (if they did).

Now don’t get me wrong, we all make mistakes on building projects (Yes, even me) but the difference is when the builder actually owns the mistake and does the right thing and fixes it.

Ask your builder what their defects management system is like, how do they handle defects and how do they manage dispute resolution if it does arise.

Your house design is the start of your dream home, this is where you get to lay out all of your ideas and combine them into one master plan. Its purpose is to give you a map and an image of what you want but more importantly it is meant to convey that image to the builder. Too often we see the message being lost in translation from home owner to designer to builder.

These steps are essential to ensure that you get the house you want

1. Do your homework

Make sure you take some time to figure out exactly what you are looking for in a house. Start with the essential items such as kitchen, bedroom, living and so on. Start from most important and slowly work your way along the list to the “dream items”. List these in priority, this list will be essential to get the designer working on your list and not theirs

2. Set your Building budget

This is critical, have a real understanding of how much money you can truly invest in your home. This amount will be crucial when the designer begins working through your list from step 1 above. Again, highlight the dream items so your designer knows where they can stretch the boundaries.

3. Choose Wisely

Choose a designer who has a detailed understanding of building structures and building processes as well as the Council and State Planning Requirements. We have seen a lot of designs over the years where the designer has not considered major design components which require increased structural works. Remember your budget you set above, well say goodbye to that. Design is more than just a pretty picture, there should be serious consideration of the cost implications of any design, if you’re designer doesn’t have the right experience, it will be costly in the long run. The image below shows how an inexperienced designer can get critical items wrong.

4. Experience over price – You Get What You Pay For

We are all after a good deal but the designers experience should be the first question you ask, not how much. We have had clients come to us for building quotes with plans that are not practical, not complete and sometimes not possible. The worst thing is when the clients go back to the original designer who made the mistakes, the designer then charges them AGAIN to fix their own mistakes. Remember, you are paying for an experienced person so make sure they are delivering on that experience.

These mistakes not only cost you more with re-design fees, but the delays can cost you lost time and money from interest on loans on your land as well as cause lengthy delays during Council approval process.

If you’re uncertain, get an independent builder or engineer to inspect the plans and highlight any potential issues. Again, if you get it wrong at this level then the costs will blow out as you build.

5. Make sure its complete

It is crucial to make sure that your design covers as much detail as possible prior to giving it to a builder to quote. If there are items not covered correctly it could open you to building variations and cost you more. Too many designers lack the building knowledge and background to ensure that they cover the essential items, most of the time they will only complete what is the minimum required to achieve council approval and are quick to wipe their hands when things go wrong.

Also include a materials finish schedule and a specification of the internal fittings and materials that you expect. Remember that a builders “standard” inclusion may not always match your interpretation of standard so be specific, ask the questions and get the right information before you sign on the dotted line.

  If you’re not sure if your design is right then ask for a second opinion. We often look over our clients plans prior to the designer releasing them to ensure that the construction and building issues have been addressed and that the design is a true reflection of the budget.

Do you have some plans that need checking? Send them to us at [email protected]  with a list of your concerns and we’ll provide you with a free assessment. For more tips and ideas head to our website http://ift.tt/2oX9q0U

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CUSTOM DUAL OCCUPANCY NEARING COMPLETION

We’re adding the final finishes to this Custom Dual Occupancy. Does your block have the potential to give you a great return?