Home Builders In Wa

[caminperth]

To get back on topic - I can strongly advise against Domination homes. The ethics of their owner leaves ALOT to be desired. If you want the full story I'll tell you over a beer one day..

[_8OO5TED_]

Yup. The only thing to be very aware of here - and I'm sure you are - is that 99% of building contracts allow the builder to increase his price if his costs go up. Though if you factor this in you should be fine building.

Main problem is that the building association protects builders, not consumers, and it's the one that regulates the contracts that you sign..

Yeah, we are factoring all this in to our calculations, its an exciting time building house, almost as exciting as modding a car!

hmmm maybe im gettting old.....

[caminperth]

hmmm maybe im gettting old.....

Haha - true.. Maybe I'm getting old too.. but I'm trying to gather enough $ so I can afford that open top Ferrari for the mid-life crisis and property is definitely one way to do it..

[_8OO5TED_]

exactly right, i have had enough of driving a $15K shitter R33 gtst!

Property is the only way to get ahead, well in Perth anyway

[SR32]

Great comments guys, thanks

I wanted to build mid last year, but my partner wasnt too keen...now he's kicking himself! Builders (as far as I've been told over the past year) have a price increase of around 1-4% at the end of each month. So waiting one month could even cost you another $5k.

I could only look at spending around 160k on a one storey. About another 60k will get another storey ontop

Has anyone or is anyone building from scratch? (Not buying off the plan with a specific builder) From plan designs to council approvals to brickies to tilers etc?

[GTS-t VSPEC]

Why do you have the preference to build rather than buy and existing house? Do you already have the block of land ?

[_8OO5TED_]

my partner and i will be most likely building through ross north homes, buying something off a plan and will spend around $150K + allowing another $25K for a complete fit out.

I know there is a price rise set for April of around 3% I think.

Where abouts are u building?

[Wildcat]

one thing i would say dont do...dont buy your land and sit on it for 6 months--we did that and we payed heaps of our mortgage for the land, but because we had waiting we went from building $145k house to 164k house because of the price increases with the building company!!

[SR32]

We purchased the house we are in a month after it's completion at a good price, so it was like building without the hassle (without gardens and some other minor bits which we didnt mind). We're not entirely happy with the house or the area, it's not something we could see ourselves in long term. So we've got our block and we'd prefer to build a home to our specifications and if we did it on budget, we could come in under what it would cost to purchase the house if it was established!!!

[Miller the hoon]

I upgraded my house this year

i am in the carpet/blinds industry and got good stuff cheep

i payed 308000 in canningvale 8 months ago spent 17000 on it and with the 30000 it cost to move = 355000

the house is worth 425000 to 435000 in 8 months

i love realestate

and any 1 with out a house BUY SOMETHING ANYTHING and get into the market and remember your first house is not your last

HER32 Buy another established but get the 1 you wont this time i recon

james

[caminperth]

we'd prefer to build a home to our specifications

Factoring in design, drawing, approval and then finding a builder to build it on top of all that could prove costly...

[Rhianne]

we had to pay 10k for a price rise which happened in 2 weeks, they were going charge us 18k but as an "act of good faith" they dropped the amount... pfffffft!

i have never been so stressed out and fought with my partner so much as when we were getting our house built. i have also never had to make so many phone calls in my life before. i was constantly on their back to get shit done cos they stuffed us around for 2 months with the roof, ringing us each week saying "itll be done next week" etc etc, i put up with it for nearly 2 months, rang up and lost the plot and the roof started getting done the very next day. u really have to be pushy to get stuff done on time and properly.

i feel sorry 4 the liason officer chicks cos they cop all the abuse wen really its the site managers fault!

[GWP021]

if you want a house your way check the fine print on buy it off the plan houses some builders charge extravigant fees for every minor change you make

if you want it drawn to suit your own ideas draw up heaps of ruff scetches and take it to a drafty avoiding the architect will save a heaps and your builder will deal with the council aproval and stuff as part of his contract

being involved in the roofing side of things i can tell you that a 22-26 degree pitch roof is far cheaper and cooler than these 30 degree plus roofs a lot of architects and builders are pushing

if your building down in the mandurah area i can recomend dolphin homes hayden brimson homes rj glossop and co and mike budd homes these are all builders i personally work for and altho a bit more pricey they give a A+ product and are good to deal with

and as for how long it takes with us its normally the supplier cant keep up with demand ive just had two days of with 4 jobs waiting cause theres a 3-5 day wait on gear

[Denver]

Never has property EVER fallen by that much in WA. Even when interest rates were in the 15-20% range. The examples you are looking at are inflated inner city prices for small units/apartments ect in the Eastern States where there was a massive over supply when the demand falls.

It won't fall that much in peth no, but its a pretty good guage to base things against, lets face it, WA eventually follows the same trends as the east, they had a surge is housing prices, so are we, they had a price crash, so will we, the only thing thats prevented it happening here YET, is the resource sector is so strong in WA, that its pushing the economy along, however, it has to stop eventually, otherwise we're heading straight for a recession situation again..

If you're buying a property worth around 600k it would possibly cost this much in fees. I'd imagine your 1st house would be worth around 250-300k which I think you'll find fees, stamp duty and all will be in the 20-30k range. And yes - stamp duty does suck ass..

Its not the first house thats the issue, its the people who currently own that house you would be buying as your first that are not moving into the 600k house, because it will cost them 70k, they don't move, you don't have a house to move into, thus creating a shortage of established reasonably prices housing for people trying to get into the market, the moment stamp duty is axed you will suddenly see a pile of pre existing housing come up for grabs in a big hurry..

That is possibly the stupidest statement I've ever heard. The longer you wait the more it will cost. I've got mates trying to buy in Scarbs and his indecision over the last 18mths has cost him about 200k due to price increases. If you had've bought in NISMOS's area when he did - you would've doubled your money by now.

It not a stupid statement, perth prices are insane at the moment, they are so far out of the reach of most people, something has to give, and i can guantee you employers suddenly won't be giving everyone 40% pay rises to cover the cost of the housing price increases, perth was underpriced in the housing market, but it was more than caught up with those prices, and then gone over them, people can't afford to buy houses now because of this, something has to give, and it'll be property prices..

you can't have a market if there is no one with the money to buy, the housing prices will have to come down at some point..

[caminperth]

It won't fall that much in peth no, but its a pretty good guage to base things against, lets face it, WA eventually follows the same trends as the east, they had a surge is housing prices, so are we, they had a price crash, so will we, the only thing thats prevented it happening here YET, is the resource sector is so strong in WA, that its pushing the economy along, however, it has to stop eventually, otherwise we're heading straight for a recession situation again..

WA does follow the trends of the East to a point - but there are so many other factors that come into play in the East that don't affect WA pricing.

Take Sydney for example. Most of it's industry is based on finance and services, which follows the money market quite closely. This makes the highs very high, but also makes the lows very low and overall makes it a very sensitive market due to it's international connections. Note - this is only one facet of the Sydney market - I'm not saying this is ALL it depends on. Another factor it is also a very sought after place to live by both Australians and Ex-pats alike, but when the ex-pats leave, demand falls a little, which also affects prices.

As for the recession comment - what are you basing this on? Our exports are strong as is our currency and interest rates are steady. I see no problems on the horizon that could cause interest rates to jump 10% and our currency to be worthless. Can you?

Its not the first house thats the issue, its the people who currently own that house you would be buying as your first that are not moving into the 600k house, because it will cost them 70k, they don't move, you don't have a house to move into, thus creating a shortage of established reasonably prices housing for people trying to get into the market, the moment stamp duty is axed you will suddenly see a pile of pre existing housing come up for grabs in a big hurry..

I don't think associated purchasing costs would prohibit most people from changing houses and I don't believe the situation you mentioned above actually exists.

To give you an idea on purchasing costs - they should be no more than approimately 5% of the purchase price. If I was currently looking at housing around 400k, I would allow 25k purchasing costs. Given the current market and based on that I would be buying in a high growth area (or even better, one that is about to see high growth! ) the purchasing costs would be easily eaten up within the 1st year by an increase in capital.

I think what may generate the situation you've mentioned - people not changing housing - is either no change in income, so they can't afford that new 600k house loan, being happy where they are or fear of what the market may do.

It not a stupid statement, perth prices are insane at the moment, they are so far out of the reach of most people, something has to give, and i can guantee you employers suddenly won't be giving everyone 40% pay rises to cover the cost of the housing price increases, perth was underpriced in the housing market, but it was more than caught up with those prices, and then gone over them, people can't afford to buy houses now because of this, something has to give, and it'll be property prices..

you can't have a market if there is no one with the money to buy, the housing prices will have to come down at some point..

I disagree entirely. Perth is a desirable place to live and is growing faster than it ever has. Current mining booms feed some of the growth, but there are many other factors as well. City size and average house price compared to other Australian centers is one of many I can think of. Take a look at any of the big houses in Cottesloe. You could get into the most sought after beach suburb in Perth for around 1.5~2M. Try doing that in Sydney and Melbourne and you'd be paying at least 10 times that amount.

If people can't afford to buy, they'll have to rent, won't they? And who do they rent from? Property investors!

More people who can't afford housing will just push up the rental rates, making it more profitable to invest in property, generating demand for property by investors and keeping capital growth at sustainable levels. Agreed, not as high as some rates we have seen in the past, but it will even out eventually.

All these arguments aside - figures don't lie. Take a look at the average capital gain rate across Perth since 1950. It's 8~9% depending on sources.

Now look at the average interest rates across Australia for the same time period. It's 6~7% depending on sources.

Now join the dots. Property as a commodity can be insured against and will never completely dissapear. I know of many shares and managed funds that have done exactly that. So which one sounds safe eh?

Again, none of this post is an attack on anyone in any way. I just hate seeing fear being bred like this about one of the safest markets around.

[caminperth]

Apologies for the off-topic btw. I know of a few of my friends who are building - I'll have a chat and find out who they're using..

[PRO-L20]

It's stupid to buy now, because the prices WILL CRASH.. at the moment they are just rising rapidly..

And I know this stuff first hand - As we're losing our house

How ya like dem appleZ ?

[caminperth]

Its not the first house thats the issue, its the people who currently own that house you would be buying as your first that are not moving into the 600k house, because it will cost them 70k, they don't move, you don't have a house to move into, thus creating a shortage of established reasonably prices housing for people trying to get into the market, the moment stamp duty is axed you will suddenly see a pile of pre existing housing come up for grabs in a big hurry..

I've just had another thought, and while I'm hanging around killing time I thought I'd share it.

The people in the above scenario would more than likely have owned their house for a long time. Perhaps they have paid it off, or the loan is minmal at most. They also haven't had an increase in wage so they can't afford that new 600k house and it's associated loan repayments.

What if they kept their existing house and rent it out? The rent would help suppliment their income to make the new bigger repayments on the new bigger house. They would also get capital growth on both houses.

Alternatively, they could sell their house, buy a newer one around the same value as an investment, borrowing the entire value including purchasing costs and rent it out.

Then they could use the cash they made from selling their old house to buy that new 600k house with a minimal loan. The rent would help cover the repayments, as would the tax breaks associated with the interest repayments on the loan for the rental property.

The second plan works better for income tax and because they lived in the original house as their primary residence, they wouldn't have to pay capital gains tax on it.

Does this sound like a bad thing? If not - perhaps you should be looking at what you're doing with your property and thinking outside the box.. no pun intended..

Maybe I'm just getting old and have too much time to think about this stuff..

[caminperth]

It's stupid to buy now, because the prices WILL CRASH.. at the moment they are just rising rapidly..

And I know this stuff first hand - As we're losing our house

How ya like dem appleZ

Sounds like sour apples to me..

Why are you loosing your house? There must be some major reason as nothing really has changed in the last year or two on what your repayments should be?

Not good news man - there must be a way to keep it?

[Topaz]

Interesting.

I am 21 at the moment, but would like to have a house by 23-24 and at the moment its really putting me off because of the rapid price rises. I am just hoping the market does crash when everyone realises its too expensive to buy let alone build, so people start living at home longer or renting. I guess hoping for a house at a certain age is not the way too look at it, just jump in when the prices are at a low.