Help with costing an owner builder project

chippy12 · Sep 29, 2024 6:14 pm

1. Was told by my financier to get a budget going for a two story house I wish to build and sell.

2. First project and being a registered carpenter, I have formulated a schedule of works for which i need to gather costs based upon a mock plan.

3. I have in mind a 25-30square house on a 350-400 block and this is the schedule I have come across.

My question is, what should I do to collate actual costs. I am thinking base everything off of a square meter costing per trade?

The pre contract stage is not complete as yet nor realter/holding costs. any input would be appreciated.

chippy · Sep 29, 2024 8:59 pm

chippy12

1. Was told by my financier to get a budget going for a two story house I wish to build and sell.

2. First project and being a registered carpenter, I have formulated a schedule of works for which i need to gather costs based upon a mock plan.

3. I have in mind a 25-30square house on a 350-400 block and this is the schedule I have come across.

My question is, what should I do to collate actual costs. I am thinking base everything off of a square meter costing per trade?

The pre contract stage is not complete as yet nor realter/holding costs. any input would be appreciated.

First comment would be that you can't build to sell as an OB. It's meant to be your residence and you technically can't sell it for 7 years (may vary on state)

If you can get around that then you need a detailed estimate based on your plans. I've OB twice (I'm also a carpenter) but both times I used a local estimator who specialises in OB estimates. I was self funding so didn't have to worry about banks, but the estimate was crucial in staying on target financially as it includes a break down of material and labour costs, so you could easily set up a spreadsheet that showed how the actual costs where tracking with the estimate.

From what I hear lenders are very resistant about lending for OB projects so the more detail you can provide and a detailed estimate and project management plan the more chance you have of getting finance.

chippy12 · Sep 30, 2024 6:19 am

Thank chippy.

I have a rough idea as a design size - double story 30-35 square house.

As an official set of drawings and allotment are ye tto be selected - basic grade features. Would an estimating consultant price according to a square meter rate for individual trades specifically and would you be able to mention any here?

Thank you

chippy · Sep 30, 2024 3:55 pm

chippy12

Thank chippy.

I have a rough idea as a design size - double story 30-35 square house.

As an official set of drawings and allotment are ye tto be selected - basic grade features. Would an estimating consultant price according to a square meter rate for individual trades specifically and would you be able to mention any here?

Thank you

I'm in Perth so don't have any recommendations for over east.
You will need to talk to lenders or brokers about exactly what is required. I've never had to borrow to actually OB, but from what I have heard banks are very reluctant to lend for OB projects. High level estimates like you have proposed may not be enough to source funding.
You would be best to sit down with a broker or lender familiar with OB lending and find out exactly what is required.
You still have to find a way around the whole OB to sell issue as it's definitely not what the whole idea is aimed at and you may find that you can't even proceed if that is your plan.

chippy · Sep 30, 2024 3:59 pm

chippy

chippy12

Thank chippy.

I have a rough idea as a design size - double story 30-35 square house.

As an official set of drawings and allotment are ye tto be selected - basic grade features. Would an estimating consultant price according to a square meter rate for individual trades specifically and would you be able to mention any here?

Thank you

I'm in Perth so don't have any recommendations for over east.
You will need to talk to lenders or brokers about exactly what is required. I've never had to borrow to actually OB, but from what I have heard banks are very reluctant to lend for OB projects. High level estimates like you have proposed may not be enough to source funding.
You would be best to sit down with a broker or lender familiar with OB lending and find out exactly what is required.
You still have to find a way around the whole OB to sell issue as it's definitely not what the whole idea is aimed at and you may find that you can't even proceed if that is your plan.

Depends on what sort of loan you are after but here is some information I found from a quick search. You'll need to have a substantial deposit in place.

"The maximum LVR one can raise as an owner builder as full doc is 80%. This can be found with only 2 lenders in Australia. On the other hand, most other lenders will generally accept 50-70% LVR"

Ashington Homes · Oct 01, 2024 3:55 pm

chippy12

1. Was told by my financier to get a budget going for a two story house I wish to build and sell.

2. First project and being a registered carpenter, I have formulated a schedule of works for which i need to gather costs based upon a mock plan.

3. I have in mind a 25-30square house on a 350-400 block and this is the schedule I have come across.

My question is, what should I do to collate actual costs. I am thinking base everything off of a square meter costing per trade?

The pre contract stage is not complete as yet nor realter/holding costs. any input would be appreciated.

Shoot me an email to simeon@ashingtonhomes.com.au and I will send you a costing spreadsheet to get you started

chippy12 · Oct 05, 2024 7:23 am

Thanks for your replies.

I am currently at the stage of detailing an estimate for a bill of quantities and a detailed site investigation analysis report in order to find the best suitable block. As i don't have a block or detailed design its hard at this point but more research to follow and more questions to come.