Browse Forums Owner Builder Forum 1 May 06, 2010 6:38 pm G'day all I've already started building and need to organise finance, and of course they want estimates, I don't really want to tie up tradespeoples time doing quotes and you always have to chase and chase them so I'm wondering if anyone knows were you can get costing rule of thumb ie price per square metre for concreting, roofing, etc Thanks for your help Re: Costing OB project for bank 2May 06, 2010 7:52 pm Moving this to the right section and then Ill post Custom European Cabinets - Melbourne Kitchen Specialist PM for business details as website currently being updated! Our Crazy Owner Builder Journey! Re: Costing OB project for bank 3May 06, 2010 8:02 pm Alrighty First off, what bank are you looking at going with? Lending has become quite strict in regards to OB loans, so its best to see what requirements they have. I know that some banks (I think CBA may be one??) have a print out of various trades you will need to employ over the construction and would like quotes on each applicable area. Yes, its time consuming and yes, good-luck finding tradies who will quote an OB but not only is it a thorough record for the bank, it is also a thorough record for you. There are too many variables to be able to give you "rough prices" on things. For example, roof tiling - one quote based on a tile profile we cant have came in at $20k, the profile we need came in at $30k - big difference so there's no way I could give you an accurate price on what your requirements are. I have a spreadsheet of estimations, and have already found that Ive underbudgeted on certain things (roof tiles being one!) and yes, its useful and has given us something to work with but they are only estimations and guesswork - definately not thorough enough for a bank to accept I assume! We got a Line of Credit, so didnt need to show anything to the bank in terms of what we're using the money for. We could go and spend it all on food for all they care as long as we make the repayments Custom European Cabinets - Melbourne Kitchen Specialist PM for business details as website currently being updated! Our Crazy Owner Builder Journey! Re: Costing OB project for bank 4May 06, 2010 8:09 pm Hey thanks for the reply, I'm going with St George who seem to be the only bank considering OB's since the GFC. I have a Line of credit at the moment and that is how I've started but need more to finish project. Any ideas who else offers line of credit to OB's Re: Costing OB project for bank 5May 06, 2010 8:17 pm Have you tried to increase your LoC with the bank your currently with?? We have our LoC with the CBA - basically just had to show we could make repayments. So I assume if you can show that you can make repayments on a larger LoC than it shouldnt be too hard? Only thing is, interest rate is more. At the end of our build we're going to refinance and get a standard home loan. BUT our house has to be worth 20% more than what our land loan and LoC is combined in order to do it as they'll only give you 80% of the value (maybe this is so we dont have to pay LMI??). Or something. I have it written down somewhere but not sure where... Custom European Cabinets - Melbourne Kitchen Specialist PM for business details as website currently being updated! Our Crazy Owner Builder Journey! Re: Costing OB project for bank 6May 06, 2010 8:22 pm Thanks thats given me a bit to think about, St george wont do Loc for OB's and all the other points you pointed out are no problem for me so I might go and have a talk to CBA or a Mortgage broker Thanks for your time regards Dasha Re: Costing OB project for bank 8May 06, 2010 9:47 pm Dash, Why do you need to tell them you are OB'ing? Like Bam, we have a LoC also, ( and we refinanced our existing home to allow for the extra ), so in effect have 2 loans going. Plans Done Feb 2010 Permit Done 23 April. Set out Done. Scrape and Excavations Done. Footings Done May 10th. Now, to find a brickie.Got one! Sub-floor bricks & Garage Done - 13th June Sub-floor installed 28 June (?) Re: Costing OB project for bank 9May 06, 2010 11:35 pm We're currently building with an Owner Builder construction loan and have had to provide the bank with comprehensive estimates on each stage of our build. Our building supervisor helped us by putting together an original estimate based on written quotes that we had received or prices that we knew to be true - such as the bricks we like are 90c ea and we need 4600 etc Anything that wasn't covered here was worked out using the Rawlinson's guide to construction. This is published annually and can be used to estimate materials and labour and even takes into account price differentials for each state. It would be worth ringing around to see if you could get a copy at a library as long as it's at 2010 edition. It's important to be as accurate as possible. Now that we're making claims I've realised that the bank refer back to that original spreadsheet that we provided and we have to justify what we are spending and whether it comes in within our budget before they'll pay us back for our expenses. Going through this process has also been great for us as it gives us a guide as to what price we have to get everything for to ensure we stay on track. I hope this helps - good luck with your project Re: Costing OB project for bank 10May 06, 2010 11:40 pm @dashboard64 Not trying to have a shot at you, but why didn't you get a professional estimate done by an estimator before you commenced building. The biggest mistake OB's make is to enter into the building process without an estimate. If you get a full estimation done you know right from the start if you can afford it, there will be no unpleasant surprises that you didn't expect and it also helps you to see if tradies are trying to overcharge you. It also gives you the basis to go to the bank for funds. They can see that you have actually planned out what you will be spending. Not having an estimate is exactly the reason banks are hesitant to lend to owner builders. People have a nasty habit of underestimating what a build will cost, only to run out of money and the bank ends up with an unsaleable half finished house. A professional estimate should cost about $600 give or take a bit and will be the best money you will spend through the whole build. As I said, I'm not trying to hammer you just trying to help you avoid a lot of unnecessary worries and stress. Edit. Tomandkylie beat me to it. Accessible Carpentry & Cabinets accessiblecarpentry@gmail.com accessiblecarpentry.com.au https://www.facebook.com/pages/Accessible-Carpentry-Cabinets/583314911709039 Re: Costing OB project for bank 11May 07, 2010 12:39 am We have a professional estimation and a project manager for our OB. Our project manager suggested the estimation as then we knew what we could spend. I will spend more on some things and less on others. They have also costed every last thing you could think of and things you could not. Money spent early is money well spent. Re: Costing OB project for bank 12May 28, 2010 12:11 pm Hi all, new to the forum today and wish that I had found this a looooong time ago. Didn't even know you could get estimations in this way. Not that there is likely to be any where we are. Also tried for 12 months to get quotes for the bank for an OB loan, Tradies were not very interested in quoting and so by the time I finished getting quotes, the first ones that came in had expired so the bank wouldn't accept them. I ended up going through a mortgage broker, changing banks, getting a line of credit within a month. Downside is, I really don't know specifically how much this massive project is going to cost. RF Build: viewtopic.php?f=38&t=34534 Flooring: viewtopic.php?f=7&t=39733 Chat: viewtopic.php?f=36&t=53303 Re: Costing OB project for bank 14May 28, 2010 10:54 pm Louwa This is completely true. We had a few quotes for plumbers and they one came in close and the other came in 10k over. We went for the close one (they were a referal as well) and told them what our estimation said. They came to the party and are doing it for that. The same thing happened with the brickie! Re: Costing OB project for bank 15May 29, 2010 8:38 am Does anyone think it is still worth getting an estimate done if we can even though we have started building? RF Build: viewtopic.php?f=38&t=34534 Flooring: viewtopic.php?f=7&t=39733 Chat: viewtopic.php?f=36&t=53303 How much are you ahead in payments compared to where the build is at? Have you fully drawn down the loan? 5 11933 DIY, Home Maintenance & Repair That laser level looks lovely! We bought one for less than a quarter of that price off eBay. It worked really well for us and it's still going now, five years later. After… 1 16715 |