32 Degrees Building Blog
February 15, 2019
Often a difficult choice for families looking to increase their living space is whether to purchase a new home or build an addition on their current home. The costs associated with both decisions can vary but there are many hidden and overlooked costs related to purchasing a home which are not applicable when building an addition. We have outlined costs below for you to keep in mind if this is a decision that you are currently looking to make;
Costs related to purchasing a home
Loan fees – This is the fee charged by a bank or other lending institution when you apply for or take out a loan. Approximate cost: $Nil – $800 There may be additional costs preparing and registering a mortgage.
Mortgage discharge fee – If you have a mortgage, you can expect to close your mortgage loan for approximately $1,000, but this cost can vary depending on your bank. This is essentially a fee for the paperwork involved. Approximate cost: $1,000-$2,500
Conveyancing fee – A conveyancer is required for the process of transferring the property from the seller to the buyer. Approximate cost: $700-$2,500
Disbursements – Your solicitor/conveyancer will charge for some of these expenses paid on your behalf during the conveyancing process. Approximate cost: $100-$350
Stamp duty – You must pay contract stamp duty on the purchase price of the property. Approximate cost based on a house valued at $1.1 million: $45,990
Inspection fees -Building Inspection – A building inspection checks structural soundness and lists any visible defects and necessary repairs. Approximate cost: $300-$700 & Pest Inspection – A pest inspection checks for any signs of past or present pest infestation. Approximate cost: $250 – $300
Real estate agent commission – The cost of selling will depend on the amount of commission charged by your real estate agent. The national average commission rate in Australia sits at around 2 per cent, but commission rates vary from agent to agent. Approximate cost based on a house valued at $1.1 million: $22,000
Auctioneer fees – If you’re holding an auction, you’ll often have to pay an auctioneer’s fee. Approximate cost: $6,000
Moving costs – The cost of moving generally depends on the distance you’re travelling, the amount of furniture you’re moving and whether you’ll hire a full-service removalist or pack the truck yourself. You’ll also need to purchase storage boxes if you haven’t got them already. Approximate cost: $400 – $3,000
Property repairs and renovations –When buying a new home spending money on repairs and renovations is very common. Common repairs include painting, flooring, lighting repairs, kitchen repairs and maintenance, bathroom repairs, electrical repairs as well as giving the exterior a touch up to give your new home that personal touch. Approximate cost: $1,500 – $20,000
|Costs associated with moving:|
|Stamp Duty Based on a home valued at $1.1 million||$45,990|
|Real Estate Commission Based on a home valued at $1.1 million at 2% Commission||$22,000|
|Moving Costs||$400 – $3,000|
|Property Repairs and Renovations||$20,000|
|Total Costs Estimate||$103,890|
Additional inconveniences and disruptions related to purchasing a home:
- Relocation of services – When moving you will need to relocate your existing services to your new property. This can include transferring and updating your: Gas, Electricity, TV, Internet/Phone, Insurances, Licenses and addresses for your bills.
- Disruptions in relocating – When moving to a new home you face the uncertainty of not knowing who you are moving next to. You have to consider that your new neighbours may not be as accommodating as your previous neighbours which you have good relationships with.
- Other things to consider are the need to change – Schools, churches, social groups, gyms, childcare and the commute to your workplace.
Benefits of building an addition
One of the benefits of building an addition is that you can custom design your plans to tie in with your existing home and remove the need to move or purchase a new home. Building an addition is the perfect way to add significant value to your existing home whilst bypassing any of the issues related to moving.
We specialise in building second storey additions that seamlessly integrate with the existing structure of your home, giving you an aesthetically pleasing street frontage which will make you the envy of all of your neighbours.
Costs related to building an addition
Plans and drafting – $6,000
Council lodgement – $5,000
Council fees – $2,500-$15,000
The average cost of adding a 3 bedroom, 1 bathroom and 1 living room addition to a home starts from $200,000.
If you are looking for an affordable solution and you are happy with your existing location, have a great relationship with your neighbours and would like to avoid the stresses of moving, then an addition is the perfect option for you to consider.
Give our team a call or complete our Pre-Quote Enquiry Form if you would like to discuss a potential addition to your home. We can conduct a pre-site assessment prior to the builder coming out to meet with you to ensure that building an addition is a viable option on your property for you.
November 8, 2018
You’re in the market for a renovation or addition on your home, but where can you find a builder that is reliable, will minimise the disruption to your family and deliver maximum quality on your investment that will stand the test of time?
You may have been referred to builders by people you trust, however that doesn’t necessarily mean that the builder will be trustworthy. So who do you contact and what should you look out for when contemplating taking the first steps on your building journey? We’ve put together a list of things you should consider when making your decision to select a builder;
1. Do they specialise in your type of build?
You might assume this is obvious, however, it’s vital to ensure that the builder you choose is well-established and reputable. Search for a builder who has experience in the type and style of build you are looking for and see if they are able to provide references for a number of jobs they have completed.
Always do your research – look at their website, social media pages and online presence. Are their projects active and up to date? Can you see samples of their work? How long have they been operating for?
2. Do they belong to a builder’s association?
Builders that have a professional membership in the industry eg. Housing Industry Association (HIA) and Master Builders Association (MBA) participate in continuing education and stay up to date with best practices, new technology and innovations within the field. This ultimately means that these builders will use the newest and correct practices when constructing your home.
3. Are they licenced and insured?
A good indicator of a high-quality builder is one that’s fully licenced and
insured – and that they can provide you with those details upon request.
It’s vital for you and your builder to be protected and insured in the event
that something goes wrong.
Examples of insurance that may be required by the builder are;
- Public Liability Insurance
- Workers Compensation Insurance
- Contract of Works Insurance and;
- Home Warranty Insurance (for all builds over $20K)
You can do a licence check of your builder through the Fair-Trading website, however, we also recommend that you request a copy of their insurances before engaging with them to ensure your family and your investment are protected.
4. Are they able to provide client testimonials or reviews?
The sign of a reputable and successful builder is one that is able to provide
a list of client references from the past, most recent and from those currently going
through the building process with them. This is a good indication that they have been
delivering high-quality service to their clients consistently throughout their years in business.
5. Is there clear communication from the beginning?
Good builders are responsive right from the beginning of your interaction with them. This shows that they invest in their team to ensure that customers and their experience is at the forefront of their business. A builder and their team should be available to communicate with you throughout the project, even after practical completion.
6. The cheapest quote may not result in a quality build
Be wary of going with the cheapest estimate a builder may put in front of you. When searching for a builder ensure you are making as direct a comparison as possible. It is always important to compare apples for apples; a higher quoted price may result in less unforeseen costs and expenses. By choosing a significantly cheaper quote be aware that you can run the risk of finding out halfway through your build that you have been underquoted and the builder is unable to fulfil your project, leaving you stranded and stressed, putting a strain on the family and your investment.
7. Do they offer fixed priced contracts?
Beware of quotations and contracts with a long list of ‘estimates’ and ‘TBA’s’. To avoid a blow-out in costs which could end up exceeding your budget or not being to afford to complete your build, ask for a fixed price contract.
There will be items that a builder cannot foresee such as soil removal, asbestos removal and termite damage, however, the builder should be upfront and discuss these items with you during the planning process. This allows you to properly plan things and have a contingency plan in place.
8. How does the builder operate?
Does the builder utilise sub-contractors to complete your build or do they employ their own team? A benefit of choosing a builder that employs their own tradespeople to complete your build is that they invest in the proper training and management of their team. This also means that they have greater control of the quality and the speed of the build as they will be coordinating the trades across their builds. By limiting the number of sub-contractors being used, your builder can ensure that you know who is working at your home, giving you peace of mind that your family is safe and secure and that disruption is kept to a minimal.
At 32 Degrees Building, we specialise in additions, extensions and renovations. We believe in putting the clients first and have a support team there for you during your build to address any of your concerns throughout the process. We are licenced, fully insured and are more than happy to provide you with references from our clients, past, recent and in progress if you would like to discuss their building experience.
If you have any questions surrounding your future renovation or addition on your home, call the team. We are available to talk to you and run through all of the details with you.
May 10, 2018
Did you get the chance to see our feature on television earlier this year? We aired in a segment on Channel 9’s Open Homes Australia.
Watch Alistair (Director and Builder) alongside Denny (Project Manager) talk you through the transformation of our double storey addition in Cordeaux Heights that we have completed.
This standard brick veneer home has transformed into a now architecturally designed home and features the use of Colorbond cladding mixed with Rubiq Panels to create a modern and contemporary look on the exterior. Internally, we used Hebel cladding on some of the walls to increase the thermal property rating of this home working towards a greatly improved energy efficient home.
July 22, 2017
At 32 Degrees Building, we specialise in ground floor extensions, first floor additions, and custom built homes. Often, whenever someone is planning to make more room in their home, a common question that we get asked is why is it better to build upwards with a second storey instead of outwards with a ground floor extension? What makes a second storey addition a great idea? So we decided to list just some of the benefits of adding second storey to your home:
Gain more living space without moving out
This is perhaps the greatest advantage of building a second storey (as well as the best reason to do so), especially if you live in a location that you really love, somewhere that truly suits your lifestyle. By renovating your home and adding a second storey, you can acquire more living space without having to give up the perks and convenience of living in an area that has all the amenities, services, businesses, and opportunities that you need, want and enjoy.
With greater room, you and your growing family can live more comfortably. On top of that, additional space means that you can stay in the family home for the years to come, as there is enough space available for a multi-generational household.
Keep your outdoor space
Why sacrifice your yard to extend the size of your home, when you can build on top of the ground floor and retain your outdoor space? Adding a second storey is the smart way to go, especially if you need additional space in a house that is built on a small block. This allows you to have the space outdoors as an alfresco living area with a pool, a lovely garden, or an amazing playground for your children and pets.
Get beautiful views
If you live in a picturesque location, a second storey is a great way to take advantage of the amazing views that your area has to offer. For example, if you live near the ocean, you can simply open and look out of a window in your second storey to take in the breathtaking waters without having to leave your house. Or, why not build a balcony where you can relax and have a drink while looking at the pretty sights before you?
Make necessary changes and repairs to the ground floor
On the practical side, if your home needs both repairs and additional space, a second storey lets you hit two birds with one stone. Building a second floor means that your ground floor has to meet the requirements that can provide structural support to the second storey. While the changes are being made, you can grab this opportunity to make some suitable home design decisions and improve your home’s overall interior look and style. You can also use this chance to replace faulty or damaged parts of the house, such as windows and doors and consider upgrading or adding ducted air conditioning.
Add value to your home
Last, but not the least, building a quality second storey can raise the market value of your home, should the need to sell arise. This is great especially if your house is located where there is a high demand for residential properties with close proximity and easy access to good education, career opportunities, medical centres, transportation, and other necessary amenities and services.
Do you want to increase your living space with a second storey addition? We at 32 Degrees Building provide our building services across South West & Western Sydney, the Illawarra, the Southern Highlands, the Eastern Suburbs, and Sutherland Shire. We aim to help our clients achieve their dream family home, with a spacious living area that can meet the needs and demands of their lifestyles. To learn more, contact us.
Article written by: ibuildnew.com.au
April 14, 2017
To fund an addition or extension on your home, you may find yourself applying for a Construction Loan with your lender. This is all well and good, however you may find that the lender will not formally approve and release funds until plans, Council approval and a Contract is in place outlining the progress stage payments of the build. So, to get to this point, how much should you expect to outlay? The short answer is that we find for most of our clients it’s around $13K to complete the preliminary stage.
Here at 32 Degrees Building we break it down into two manageable costs for our clients and below is an explanation of the preliminary process to help you as a client understand what happens before we can issue contracts and start your build:
Preliminary Phase 1: Design and development of your architectural plans
This is the start of your building journey with us. This starts from $6,000 to have a draftsperson come out and meet with you, talk you through your ideas, then design your initial concept plan. Usually a few tweaks may be required and then you can sign off your concept plan and the full architectural drawings can be created and a 3D visual walkthrough can be prepared. The 3D visual walkthrough can be and shown to you either at the office or via an app and we send you the file.
Once your plans are complete (sitemap, elevations, shadow diagrams, floor plans etc..) the documents required to support your plans and lodgement to Council application are prepared, these include your;
- Statement of Environmental Effects – Details the potential environment impacts the proposed build will have.
- Waste Management Plan – Applies to all homes across Australia and explains how waste generated onsite will be managed, maintained and disposed of.
- BASIX – The Building Sustainability Index applies to all residential homes across NSW and is part of the Development Application process.
There may be additional supporting documents required (e.g. Bushfire Report, Flood Report, Acoustic Report etc…)
Preliminary Phase 2: Council Lodgement – Development Application & Construction Certificate OR Complying Development Consent
This next step is where we will lodge your plans to Council either as a Complying Development Consent OR as a Development Application and Construction Certificate
CDC or DA fees will be advised once plans are developed. The Construction Certificate estimate starts from $7,500 however is dependent on the build cost and so we will advise if this changes at this stage of lodgement. Here we obtain the additional relevant documentation needed in order for your build to be ready to start and this includes;
- Engineering plans and if a first floor addition a first floor certification to confirm your existing home will support the addition
- Sydney Water check – To confirm that your build will not impact any of Sydney Waters assets
- Sewer Service Diagram – We obtain this for the plumber to see where the existing connections to the home are
- Long Service Levy – Applies to all residential works over $20K
- Home Warranty Insurance – Applies to all residential works over $20K
- and any other supporting documents as required
How long does it this process take? Well, this all depends on the Council, the service providers and you as the client. We find that from planning to Council approval to issuing you with contracts can take around 3/4 months. Once your build cost and inclusions have been finalised and your HIA fixed price contract has been issued you can then provide these to your lender in order to finalise your finance approval.
If you haven’t built before or have no knowledge of the building and construction industry then preparing all of these documents can seem quite daunting. That’s why with us, you would have us as your main point of contact to do all of the hard work for you. We even liaise between yourself and the draftsperson to help you stay within your budget when developing your plans and address any of the questions you have about the build along the way.
To get started on your building journey with us, we ask you to complete our pre-quote enquiry form and tell us what you would like to build, from there one of our team members will be in touch with you.