What cost more? House or land?

Dreamer · Mar 28, 2008 10:36 pm

Just curious. Is there a right or wrong way?

We haven't bought a block yet but are looking at blocks which are probably going to be mid to high $200Ks.

We would like to build a house for about $200K.

We have a strict budget but at this stage I'm not sure if it's all going to work!

So I would say that if we go ahead with building, our land will cost more than the house.

brittany · Mar 28, 2008 10:39 pm

House - but in todays values the land is worth more now.

Mrs B · Mar 28, 2008 10:43 pm

Hi Dreamer, our block cost more than the house by 20k.

The way I see it is to not over capitalise for the area when you combine house and land together unless of course you intend to live there for a very long time. No right or wrong way but rather to make sure you dont over extend yourself financially.

Mrs B

Dreamer · Mar 28, 2008 10:59 pm

Mrs B

The way I see it is to not over capitalise for the area when you combine house and land together unless of course you intend to live there for a very long time.

By this you mean the price of what houses are selling for in the area?

We hope to spend about $450K in total. Houses in the area sell for well over $500K.

'chelle · Mar 28, 2008 11:03 pm

Hi Dreamer, we inherited our land, but going on a valuation we had done a while back our house is likely to cost over 3 times the value of the land :shock:

Maybe things are a bit different in Tassie. Land is still relatively cheap, but going up rapidly (25% in the last year or quarter or something, I heard recently) and builders charge the earth :cry:

But as Mrs B said we are planning to stay in this house for a long, long time, so it does't really bother us...much

Mrs B · Mar 28, 2008 11:08 pm

Dreamer

Mrs B

The way I see it is to not over capitalise for the area when you combine house and land together unless of course you intend to live there for a very long time.

By this you mean the price of what houses are selling for in the area?

We hope to spend about $450K in total. Houses in the area sell for well over $500K.

Yes that is what I mean

Mrs B

anthea · Mar 28, 2008 11:29 pm

our land... but it wasn't intended that way.

We bought our house in late 2006 then almost a year later had a fire. which did a lot of damage....
so we decided to knock the house down and built a new one.

We love our location as we're in a developed area, got a decent block (18.5x36) so it just seem like the best thing to do.

What's its costing us now (i.e. previous purchase + new build house+demolition costs+paying rent in the mean time) is way more that I would have considered 18 months ago when we first bought the house, but we didn't see this coming.

Anthea

Paula · Mar 29, 2008 8:58 am

land $325K House quotes now $660k trying to cut down to $550K :wink:

Will cut down the size I think...

donuts · Mar 29, 2008 10:14 am

Our land cost more by $50k. So far :lol:

Talinsmum · Mar 29, 2008 10:17 am

land $198,000
house $159,000 base price + $100 000 budget to finish/upgrate/landscape etc the rest (hopefully that will also include some furniture and kitting out the home theatre)

house prices in the area (for houses on much smaller blocks that the one we are building on) start around $450,000 and go to $590,000 on average ...

First_Timer_Ray · Mar 29, 2008 10:43 am

Land is the expensive bit, which is why there are so many small blocks - so people can still afford them! If you can find a good buy on a block then you are fortunate. I guess the main consideration is that you don't end up with a shack on 3 acres that cost $1 million, or a mansion on a piece of land worth $50K. We always went into this building project with the mindset that if it didn't work out, we could always sell it and not have lost anything but our time.

Land: $92,000
House: $195,000 plus carpet, curtains, concrete and final fittings (clothes line, letter box, garden, etc).

Houses are selling in the area for $350K - $900K

Ray.

Alicante · Mar 29, 2008 10:43 am

Our budget is for land $450-500k and house including landscaping etc $350-400k. I think if you are planning on doing a knockdown and rebuild in an established area the land will always cost more as it will likely be closer to the CBD and you are paying for a crappy house on the block to start with.

haywgl · Mar 29, 2008 10:52 am

I'm the same as Alicante

taylormade · Mar 29, 2008 11:53 am

Our house (without landscaping, driveway, fences etc) will cost $60k more than our land BUT blocks of land smaller than ours (we have 1.5 plus acres) have sold for up to $25k more than ours (and we only bought it in September of last year :shock:

). Houses (similar in size to ours and on a similar sized block) are going for anything up to the high $600ks, so it's all good so far

.

Where in Brisbane are you hoping to build?

lrhodes1 · Mar 29, 2008 12:52 pm

My block was $170k more than the house ($370k vs house $186+ extras)

But thats what u get in an established area in sydney. A block down the rd on a busy rd is for sale at $600k!! OMG!!

PhoenixStar · Mar 29, 2008 7:27 pm

Our land was $172K which we bought 8 months ago and the contract price for our house is $229K...with lots more to spend to get it to what it the way we want it...

Established houses in our estate start at about $475K for a 3br on a small block.

Dreamer · Mar 29, 2008 10:06 pm

taylormade

Where in Brisbane are you hoping to build?

Upper Kedron.

Yak_Chat · Mar 30, 2008 1:03 am

Land and house should be equal or the land value greater is preferred.
Without a house hat have you got?
Land
Steve

Rachelle · Mar 30, 2008 9:26 am

Our land was double the cost of our house.

Djelibeybi · Mar 30, 2008 9:41 am

Our land will end up costing anywhere from $40k to $100k more than the house, once we find out how much the house will cost.