#firstflooraddition

Reflecting Spannenberg & Son's heritage

Although we have numerous trucks and utilities in our fleet, which you would have seen on the road, this one is a standout!

Where do building price rises stand for 2025?

How does that effect the cost of your renovation? how can Spannenberg and Son give you some assurances that your build will not blow out in cost?

Typically we have price rises on July 1 every year and we do expect this to occur in 2025 as it does every year, on July 1 almost all government bodies will implement a price rise and an example of this may be an environment levy increase, this puts up tipping prices another example may be council DA charges and levy increases.

So what else is pushing up prices?

Government industrial relations policy changes only recently introduced on small business contractors have put pressure on the transport industry, so transport prices have gone up. Then we have the green movement which has restricted gas supply, gas is used to manufacture a significant amount of building materials like insulation, glass, bricks etc. We know about electricity increases, businesses have to pass this on. Australians are choosing to save the planet and send manufacture and transport costs up and overseas then we are choosing higher prices.

In a snapshot here are the price rises commencing 2025 -

-Bag or concrete - 20 cents for bag

-Fuller adhesives - 4.5%

-Ply - 5-10%

-LVL's - 6%

-CSR fibre cement - 5%

-Wet concrete $8 per cubic metre

-Colourbond steel 5%

-Blocks/pavers - 6%

-Gyprock - 7.5%

-Insulation - 4.75%

Adbri Masonry - 6-10%

What is happening with wages? Some of the heat and demand has come out of the market, which has over the last few years contributed to wage increases, the top end of the market in the multi million dollar home sector is still busy but the rest of the market has cooled slightly which has helped to settle prices, the last of the superannuation increase occurs on July 1 at an additional 0.5% to bring it up to 12%, the government will increase the minimum wage on July 1 as it always does.

How does this effect the cost of your renovation?

Once you have signed a fixed price contract with your builder he cannot pass these increases on and must wear these increases, alternatively you can sign a cost plus contract with your builder and he can pass these costs on throughout the build, with a fixed price contract do expect the builder to need to load some of this risk factor into the price.

Australians are known to take a gamble, an example of this is that most Australians have variable interest rate home loans at a lower amount compared to the overseas market where they are fixed but at a higher rate, its all about who is bearing the risk, some Australians will fix their rates and try and beat the banks, this is an example of how some clients will have differing tolerances for risk, hence some will wish for a fixed price build contract or others may go for a cost plus contract with their builder.

How can your builder give you assurance that your price will not blow out? what it the key?

Right at the start a design that suits your scope and has been accurately priced and selecting a builder who is professional and has a solid track record.

When adding a first floor addition the staircase is a key component of the design, placement is almost always the first consideration, what space in the existing floor plan do we have to place the stairs? commonly close to the front door and central to the first floor plan, are the top of the stairs opening onto a living room. Second consideration may enclosing the stairs in with walls and doors to create a seperate space or having them quite open with a void and filling the ground floor with light from an upstairs window and with that a skylight over the stairs, window or a pendant light. thirdly are we having the underside of the stairs open or using the space for a store room, study or storage? and then fourth consideration is the style of the stairs.

these are all points to consider at the initial design stage with your builder and designer to meet your desired outcome.

Is 2025 your time to invest in your home?

Let us help you!

Book a consultation today to discuss how we can achieve your New Year goals.

www.spannenberg.com.au/request-consultation/

Design Ideas

This is a recent first floor addition