New Home Building and
Investment Property Tips and News
I had a quick chat to The New Daily last month about what trends are popular at the moment and how you can spruce up your home on a tight budget . With everyone spending alot of time at home these past couple of months, DIY is the special BUZZ word!!
Alot of the big display builders are offering large cash discounts at the moment. But did you know you will be paying for the discount later on in the build?
Most of the bigger builders' contracts are not fixed priced. Meaning that the build contract price will most likely be added onto during the build, due to extra site costs and extra Basix or Council requirements that are not covered in the contract.
A common example is rock, alot of blocks have rock that needs to be removed when the builder is cutting the block. The builder needs to dig it out, which is costly and time consuming, the rock has to be loaded onto trucks and the rock needs to be disposed of. Most of the big builders have a rock clause in their contracts stating that they are not responsible for this cost , this can mean an extra bill of around $20,000....and remember it is not only when they are digging for the slab that they can strike rock, but also when the plumber is digging to connect the drainage that they can encounter this problem.
Another example is fill, either the import or export of soil is needed to level the land for your slab. This is another clause in bigger builder contracts that can cost up to $3,000 extra
A further example is piering, the majority of builders will set the amount of piering allowance. Piering is drilling down to solid ground so the slab can be stabilised. The majority of times the piering allowance is not enough and it is not uncommon to see a bill for $1000 extra.
In regards to Turn-key-it means that the builder provides everything inside and out, the client does not need to organise any trades to pour the driveway ,or put up a retaining wall, it is all completed.
Again most of the big builders do not provide this service, at the end of the build the client is left with a lovely house but they have to move a big pile of dirt from the front yard and have sheets at the window because the builder did not provide blinds.
The price of Landscaping without retaining and a driveway is around $20,000 and retaining walls could be anywhere from $3000-$5000 depending on what is needed. A big cost if your block has over 1 metre of slope.
Just ask the question when you receive the build quote from the big builder who is offering a huge discount, what isn't included in the build price?...and if you have an extras bill of around $50,000 at the end of the build ,how will you pay for that? Are you on a strict budget?
You may be surprised at how affordable a fixed priced and turn-key builder is, they may not have the gorgeous display homes to look through but their pricing is honest and genuine with no hidden surprises..it's worth thinking about!
Investing in a new property,with a House and Land Package, may be the best Investment option at the moment.
Not only are interest rates so low, but builders are offering Promotional incentives to entice people to build.
*Stamp duty is only paid on the land value not the whole package amount
*More items are claimable with Depreciation on new properties compared to older properties
Many do worry about the costs during the build and although building may take 10 -12 months from start to handover, if the loan is combined as one ie House and Land together, most banks offer interest only loans during construction ...and this interest , along with other service charges are claimable for Tax purposes.
With genuinely fixed priced House and Land Packages starting at $429,000 , renting around $420 per week. Investing in a real estate this way is an attractive alternative.
**Please note the above is for general information only please speak to your Accountant for more detailed information.
One of the big colour trends at the moment is black with brass or gold accents.
Whether it is a white kitchen with black taps and brass lightfittings over the island bench or black cupboards as above with a crisp white top and gold and brass accessories....these are all on trend.
Reece plumbing have some wonderful taps in black and brushed gold to help with this colour scheme. Beacon lighting have some amazing brass pendants ideal for the kitchen with some with a slightly industrial edge. Polytec have the gorgeous colours to achieve the dark rich look for kitchen cupboards matched with Silestone who have an array of stone benchtop colours to choose from,Ariel being similar to the above. All completed with National tiles subway tile in marble grey and their timber laminate flooring or a tile lookalike. With Lexicon quarter on the walls for the finishing touch!!..Perfect!!
In these awful times investing in Property may be the only sensible investment option.
Some people still have money to invest and seeing as the share market has taken a real dive, the Property market may be the saving grace. With interest rates so low it is perfect and with building a home having more tax advantages then in buying an existing home, building an investment is the best option. People may be worried about finding tenants in these times, but there will always be people who need to move for some reason, be it from a marriage break up or having to find a new job.
Also the build timeframe is normally around 10-12 months so hopefully by the time the home is finished the world will be back to being safe and healthy!!
Above is a picture of a Dual Key design, this is a home that has 2 residences under the one roof. One side is normally 3 or 4 bedroom and the other is 2 bedrooms. 2 rental incomes under the one roof and these designs generally fit on a normal 450m2 block.
The Dual Key design may also be the way people own property after this pandemic, pooling finances together with older relatives to get into the property market and keep loved ones close.
We enjoyed a wonderful Christmas in our brand new home!! I am looking forward to helping more people achieve their dream of being in a brand new home for Christmas this year!!
I have just realised it has been a while since I have posted a blog about our house. Our house is nearly completed....yay!! Our PCI date(Practical Completion Inspection) where we walk through the home with the supervisor and a building inspector is in a a couple of weeks. After this inspection the builder has 10 working days to fix any defects that are noted at the PCI. During this time the bank will send out a valuer to look at the home to make sure it is completed as per the building contract. So around 2-3 weeks from the PCI handover occurs...we get the keys!!very exciting!!
I am very excited about our Insulation!! We have had a lot of hold ups with the building of our house...things that I warn my clients may happen have happened to us!
Anyway our building journey continues...we now have insulation in our walls..the internal and external walls and between the ground and top floor.
The standard insulation is normally a wall wrap with the external walls , sarking under the roof (if in a bushfire area) and batts in the roof cavity.
We paid extra for a thick blanket under the roof(it looks wool wrapped in foil), insulation in the walls(pink fluffy batts) and the floor and some extra acoustic insulation(pink compact batts with mesh) for the bathroom, ensuite and rumpus walls.
We will be toasty warm in Winter and Cool in Summer and our son and his friends won't bother us when they are in the rumpus playing video games!!
The gyprockers have started and the next step will be the carpenter finishing the trimmings around the doors and the skirting boards.
It 's definitely looking like a house now...yay!!
Last week I flew to the Gold Coast to have a look at a couple of land estates and builders.I have not promoted this area before due to thinking you should invest locally but due to the current property market I wanted to look at the Queensland market yet again.I say yet again because my husband and I brought a house off the plan over 20 years ago near the Gold Coast and it is still a sore point that we sold it too early.
Investing in property should be a long term plan not a quick fix...the longer you hang on to a property the more you reap the benefits....values may dip and dive like a rollercoaster but in the long term property prices always go up!
The Gold Coast has that dream like quality!! Endless sunshine and relaxed vibes! however the first day I was there I was told I brought the rain with me...I got drenched several times!!
The estates I visited were in Coomera and Pimpama about 15 mins from Surfers Paradise and around 35 mins from Brisbane.
The first thing I noticed was the amount of infrastructure around these estates.Not like here where a signs stays for years and years stating a school or shopping centre will be built on the site and the residents are still waiting!
In these estate there are large shopping centres actually built just a few minutes drive away ,as well as schools and hospitals.It is great that the Councils and local government recognise that people love living in these estates and provide everything they need on their doorstep. My husband and I went to the new Westfield at Coomera...it was wonderful to walk into a shopping centre that was sparkling new,the shops were so clean ,the toilets were zen like with soothing music and spotless!! and the restaurants were amazing!!This Westfield opened in October last year and there are a couple more stages to complete...it will be huge!
People who live in Coomera and Pimpama mainly work in retail, hospitality, the theme parks and large industrial estates. ...driving around.. these land estates were buzzing!!
Packages start from $489,980 which is a good price point for investing...Buying property in Coomera and Pimpama is a solid investment and while they might not set the world on fire there will always be tenants wanting to live the dream....a couple of locals told me that Coomera is the place to watch they reckon it is about to boom!
It was just a quick trip and I would have loved to have stayed more,considering the sun came out on the day I left... but I was pleasantly surprised by what Gold Coast has to offer investors,it may be a good choice for your investment portfolio or even for your self managed super fund.
Give me a call if you would like some further information.
What your builder isn’t telling you
We all love looking at the display homes and being dazzled by all the shiny tiles, huge rooms with high ceilings and gorgeous outdoor BBQ areas.
But are all these inclusions and the display home plan exactly what you are getting when you sign on the dotted line?.
More often than not No.
With some of the big building companies the display home Inclusions are anything but standard.
You want downlights? No... you only receive the baton, you want carpet and tiles…no they are not included in the standard price and a driveway …well who needs that??
Before you sign any building contract you need to ask your builder about their standard inclusions and these items as well:
*BASIX The Building Sustainability Index-this accesses the energy efficiency of the home and is a requirement of NSW Councils…is the correct Water tank and the right water saving taps included.
*BUSHFIRE Requirements-most blocks of land have a Bushfire Rating…a BAL rating, if the home does not have the correct Bal requirements for example gutter guards then the home will not be approved by Council.
*CORRECT SLAB rating-all soil has a specific type and classification and the slab thickness depends on this classification …has the correct slab type been included?
*ROCK-has rock removal been included in the price? This not only applies to when the builder is excavating but when the plumber is digging for the drainage.
*WATER/SEWER CONNECTION-is there enough allowance for the water/sewer to be connected to your home-have they allowed enough linear metres?
*SOIL and SPOIL REMOVAL-if the builder has to dig out the block for the foundations, where does the extra dirt go? is this included if he needs to take it away to the tip?
*TREE REMOVAL-Often a block needs a good tidy up before building can commence, is the removal of trees and site clearing of overgrown grass and shrubs included? Are you expected to have the block completely cleared?
*EASEMENTS-check if there are any sewer or water easements on your block this can affect how your house is positioned…if the house needs to be moved will it affect the cost
*ALFRESCO-this area is a must nowadays but check if the roof and flooring are included in the price
*LANDSCAPING-although most people feel they can do this themselves…some estates require landscaping to be completed within 3 months of moving in..Does your builder provide turf and fencing?
All these items if not included can cost up to $50,000 extra…and most of the time people do not find this out till they are half way through the build, or at their colour selection appointment.
Having a fixed priced turn-key builder..and I mean a proper fixed priced builder (not a builder who says Fixed Priced with a huge asterix next to the price)…all these worries are eliminated…all these items are included and the home is completed inside and out…so all you need to do is move your furniture in!!
So when you are visiting that display home that is your dream...and you ask for a quote, make sure you ask for all these items to be included so you won’t receive any nasty surprises!
Opinions expressed in this blog are personal opinions and are not to be taken as financial or investment advice.
If you have an enquiry or wish to receive further information from Carnelian Projects click here to Contact Us