“There are so many hidden extras and other variables that, the advertised price is very misleading,” according to Rick Collova, Director with PEB Group.
“Both first time homebuyers and investment property buyers – perhaps all buyers? need to be very wary of some of the package deals advertised,” he said.
“Typically these prices are based on the cheapest block of land and the cheapest home that can be built on the developer’s stock of land within a particular land release.”
“They are just a marketing package, put together by sales people working for the builders.”
“They are not realistic as everything changes once you sit down with a builder and choose your block and house design.”
What a New Property Really Costs
“All the fees and costs associated with building a house are going to change from block to block, suburb to suburb. You just can’t offer a fixed price until you know exactly which block of land you have and what home design you are choosing,” Mr Collova said.
Prospective buyers should read the fine print before committing to any building project.
Things do happen when building and nobody likes costly surprises. It might be escalating site work costs due to difficult terrain, or the realisation that all the little things have been missed and it’s you that needs to pay for them.
For the new home builder this can be upsetting, frustrating and even daunting as it sometimes seems like you need an open cheque book.
"At PEB Group we remove the hassle and worry of this happening by only offering fixed price packages. We can do this because we know what house you are building and what piece of land it is on" Mr Collova said.
"Our properties are tenant ready once completed, meaning that all you have to do is connect the amenities to move in."
"We also take care of and assist where possible in dealing with the builder, developer and settlement agent to organise all applications and rebates, avoiding any of the delays and stress associated with building."
Take Your Time and Compare all the Details
When choosing a new property and builder, take the time to compare all the details. There will often be many extras that you will need to include before your property can be a tenant ready investment property.
These extras can add tens of thousands of dollars to the final price.
What to Look For:
The list below illustrates a selection of items and their likely costs that are commonly excluded from many house and land packages for a 3x2 home.
|Clothesline and brick paving||$2,050|
|Gates and wing fencing||$1,800|
|100mm slab instead of 85mm||$2,500|
|Landscaping and reticulation||$8,000|
|Soak wells and sewage works||$5,500|
|Down lights instead of bayonets||$2,800|
|Range hood instead of extractor||$500|
|Dishwasher and recess||$1,150|
|Stone benches for kitchen, bathroom and ensuite||$5,000|
* Site works are difficult to estimate as factors such as hitting rock can increase costs dramatically. Prices quoted are approximate. When you build with PEB Group all of the above are included in the fixed price contract.
Visit the projects page on our website for full turn key packages, perfect for the investor or first home buyer.
*This article is for general information purposes only. It is not intended as financial or investment advice and should not be construed or relied on as such. Before making any commitment of a financial nature you should seek advice from a qualified and registered financial or investment adviser.
PEB Group is a complete property advisory service for Perth families. Offices are located in Inglewood and Willetton, Perth, Western Australia and offer service in - Financial Planning · Finance Broking · Property Management · Property Sales · Property Investment · Development
PEB Real Estate - Licensee PEB Real Estate Pty Ltd. Trading as PEB Real Estate ABN 33 604 199 617. Triennial Number RA70508
PEB Financial Planning - Howarth (WA) Pty Ltd ARN 433328 trading as PEB Financial Planning is a Corporate Authorised Representative of NEO Financial Solutions Pty Ltd. AFSL 385845 | ABN 64 141 607 098
Fungroup Enterprise Pty Ltd | ABN 50 104 943 412 | Australian Credit Licence 389510 | trading as PEB Finance | ABN 50 104 943 142 | Australian Credit Licence 389510