“There are so many hidden extras and other variables that, the advertised price is very misleading,” according to Rick Collova, Director with PEB Property 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 the purchaser 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 Property Group we remove the hassle and worry of this happening by offering full turn key (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.
"All you have to do with a full turn key property is connect the amenities and 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 is ready to move into.
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 Property 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 Property 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 Finance is a trading name of PEB Brokers Pty Ltd ACN 604 784 401 | Australian Credit Licence 389510 | Credit Representative Number 476313.
PEB Real Estate is a trading name of PEB Real Estate Pty Ltd (Licensee) ABN 33 604 199 617 | Triennial Number RA70508.
PEB Financial Planning is a trading name of PEB Group WA Pty Ltd ACN 142 958 254. Rebecca Howarth and Howarth (WA) Pty Ltd (ACN 159 904 980) trade as PEB Financial Planning. Rebecca Howarth (ARN 244928) and Howarth (WA) Pty Ltd (ARN 433328) are Authorised Representatives of NEO Financial Solutions Pty Ltd | AFSL 385845 | ABN 64 141 607 098.