Plantation ready built ??

Hello All,

We are currently considering the following option

1. Buy land and build 2 stories house with Coral

2. Or Buy a ready build house by planation

Both the above are in the same location, I wasn't sure which is the most cost effective option. I realised that it I am building a house, it would roughly take 12 months and I have to pay 12 months rent and this being my first home, I was not confident about all the frills / selections process that Coral is going to take me through.

In case of plantation ready built, I just have to move in with every thing ready including the driveways, fences, drains etc. Also, I can move in as soon as possible.

I am not able to think of any things, could you please suggest what are the other points I must consider in this process.

valuations are falling...
I would negotiate the price of "ready build" house and make the most there.
chances are high that you buy land for (say) 500K. The moment you approach the build stage, the bank will revalue the land and the build costing.....chances are high that land valuation will come out lower.
Also the first home buyer grant..

Hello Sam,

Thank you that makes sense, I just saw the land of the ready build is valued at $280 while the new land I am looking at buying is in the same street is valued at $325K, which as you suggested on valuation would come down to ~280

Coral has given me a quote of $230 (base price) + 60 K for all the frills = $300K, which means, I am looking at overall spend of $325K (land) + $300k on building = $625K, which will take me 12 months to build. Adding another $20k for the rent I am paying now = total cost would be ~$645K

While, the plantation ready build is not ready for any negotiation as they have given us a 10k discount upfront (marketing gig), their price is ~$655K


I would like to know if option 1 would have any more surprises to my quote other that the initial quote given by the sale consultant? Are there any usual expenses that are not mentioned in the initial quote given by builders.


Thanks in advance

The quote from Coral (230K base) is that for a lot of land that has been shown to them? Or is it general quote for the type of build you have chosen? Beware that site costs (depending upon slope of land, soil classification, BAL rating, any electric, water supply or drainage assets already on the land etc) will come as a suprise unless those have been factored in based on available land reports.
To explain a bit:
a) slope of land - this will require cut/fill, drop edge beams, retaining walls, additional brick work and many more
b) soil type - some soil types will require specific slab/foundation type
c) BAL rating - higher the rating higher the associated costs

Spot on SAM,

The quote 230 K base did not include that but the additional quote of 60 k included provision for BAL rating and h1 soil.

But I don't see reference to electric, water supply, drainage assets etc. I will check with coral. If they are not including and if its gonna cost me around 10K addl, then I think you suggestion of going with ready built is better option.

Thank you so much, I am getting much clarity now.

Best regards,

Vijay

To clarify regarding site costs due to "electric, water supply, drainage asset" - sometimes on the land / lot there are existing assets like electric transformer, water supply pipe lines or drain lines. Do not confuse these with the electric, water and drain connections that are pertaining to your construction as these are all considered in the costing for the house.

The pre-existing assets sometimes can become a headache (and extra costs) as your building plans will require changes to accommodate these assets (e.g) additional/deeper piering to protect the sewage lines, building restriction over/near those assets, tiger tails, relocation of assets, easement restrictions

I am not trying to scare you away from building your dream home....however it is good to know where extra costs can pop up.

See attached example for sewage line, sewage drain, land gradient, maintenance easement

Hello Sam,

Thank you once agin, this is exactly what I was looking for, the sales consultant confirmed that the charges are only from the building the house perspective and not from the land perspective.

Given this and the hassle of going through the process of building our first home, I am looking at buying the ready built which is on the same street and has all the frills that is in the coral quote and also the driveway, retainer walls, fences, landscaping.

Will keep you posted on how I go.

Are there any inspection required when buying already built new house other than building and pest? is there anything like a defect inspection etc?

contact the likes of houspect.com.au and check what they offer.
I would recommend having a professional inspection done as that will identify any issues that require work under warranty. Even if Coral does not fix those issues at least you know what all you need to fix in the next 6-12 months. Coral may decline to fix certain issues if those are determined to be within allowable tolerance as per AU standards

Sure, I will do that. Thank for your inputs.

Hi Sam,

just need your advise on what to ask the builder before signing a contract when its a already built house.

i am looking for the right word, may be a proforma quote or whats in house"" document, which has a list of inclusions in the house for example soil classification, type of slabs used, the make of the windows, the door, the tiles user, etcs..??

is there a name for such a document? Inclusions document?

I know what you man but I do not know if what that is called (if there is a such a standard document). Ask the builder to provide details, specification and guarantee details of the big ticket items.

http://anewhouse.com.au

In WA the document you are after is called the addenda.
The plans show all the sizes and details and the addenda outlines all the specifications.

Thank you so much . I will check with the builder

Thank you Sam.

Hello Sam / Chippy,

the builder just got back to me, i have pasted his response below, as I said earlier the house is ready to move, we are just unsure about the waffle slab, given the amount negative publicity offlate on various internet forums.

Any thoughts on this?

"There was no BAL rating on the block and the soil was H1.
So we did a H1 waffle slab and 90mm timber frame instead of the standard 70mm as we offer a 50 year structural guarantee"

Thank you so much.

I would say over 95% of recent/new houses (construction cost) under $500k will be waffle slab.

I am paying 650K for a double storied (ready built) and land is valued at 300K. I am not sure if its worth the risk. but the builder is plantation and are giving me 50 year structural guarantee.

https://www.cornellengineers.com.au/waffle-slabs-on-h2-class-soil/