Comparison of different building costs

[snuggleball]

Like to explore the following scenarios to find out their relative costs,

1) Brand new completed house
2) Buy a section ourselves, and builder to build.
3) Buy a section through property agencies, and builder to build
4) Builder to buy section and build

Which is the cheapest option? Pros and cons?

I noticed that the brand new houses are going for a very high value above RV. That was what made me wonder maybe if we were to buy a section ourselves and build, it would have come up to that RV value anyway. So that extra amount on top of the RV was to cover for the "efforts" the sellers took to bring the house to completion? If this deduction is correct, and if we are not in a hurry to move, wouldn't it be cheaper for us to buy a section and build ourselves?

[katandbob]

Hi Snuggleball, yes I would like to hear from those who have done this before, We have noticed that the new houses are way above the older houses in price even when they are on a postage stamp piece of land.

even in Invercargill, but we saw some land for sale on our exploring today, so I would like to price up how much it will cost to build ourselves...at least you get an insulated home that way!

Kat

[backtonz]

New houses in the market are from those who bought land and have build with the primary objective of selling. You may find them offered well above valuation, because the bloke is trying to make 75K for his initiative. You may well be able to buy some of these, well below GV as well - depending on the sellers financial condition 9exetent and cost of leverage) and how slow the market is.

As for building your own - it may well be a good idea. We have gone through this with various builders at one point. What is standard ? Somebody like GJ Gardener can probably do a brick and tile on timber frames for 1300-1400 /m2, if you choose their design and fittings.

Fittings - Major builders have bulk discount on these fittings. If you choose your own, you pay more. A simple handwash basin can vary between 250 NZD to 2000NZD, depending on whether to buy a standard (motel quality) china/thailand make or whether you choose a designer Italian make.

Height - In bigger cities, sections are now 450-500m2. You will need a 2 level house, expect to pay a lot more

Slope - If you want view, you can choose to build on a slope or on absolute beachfront/clifftop. Expect to pay more to build on a slope. If you can afford absolute beachfront or clifftop, then cost of constuction shouldn't worry you.

So, a 2 level house on a slope with high end fittings could end up being a lot more than standard. If you think that cost of building in NZ is too high, then you are right. It is quite ridiculous.

[katandbob]

Slope - If you want view, you can choose to build on a slope or on absolute beachfront/clifftop. Expect to pay more to build on a slope. If you can afford absolute beachfront or clifftop, then cost of constuction shouldn't worry you.

So, a 2 level house on a slope with high end fittings could end up being a lot more than standard. If you think that cost of building in NZ is too high, then you are right. It is quite ridiculous.

oooh a cliff top view, with marble sink....I wish!....but then I could move to Bluff................. there was a house on a section above the harbour for $20,000!

Kat