澳洲Australia property It makes economic sense to build a bigger


在澳大利亚 The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m


It makes economic sense to build a bigger house when you do the maths


M. MATUSIK

ONE of the current social themes is that the consumer is to blame for wanting a big home.

The new social order - excuse me if I get on my hobby horse for a second or two - wants us to buy something smaller and magically make our housing problems disappear.

Sadly, too few of those who clog up the blogosphere with urban commentary understand the economics of new housing or the decision-making process of a rational buyer.

Recent statistics published by CommSec show that Australia has the largest homes in the world, with the average floor area of a new dwelling (including townhouses but excluding apartments) topping 214sq m, up from 150sq m just 25 years ago.

The average floor area of new free-standing houses also set a record at 245sq m.

Our homes are much larger than those in Europe and even many American cities.

Why has this occurred?

It is simply economics. The actual land component of a new house-and-land package is very high and fixed.

The land usually costs two-thirds of the total purchase price.

This is particularly the case for basic or entry level new housing.

For example, the land component of a basic $375,000 house-and-land package in Queensland could cost as much as $250,000.

In contrast, a 150sq m three-bedroom base level house on that land would cost about $135,000 or about $2500/sq m as a total price (including the price of the land).

Now a larger 250sq m four-bedroom house with a study might cost $175,000, making the total package cost $425,000. The buyer gets 100sq m of extra house for just $50,000 more. The total end price per square metre has now dropped to $1700, or 30 per cent less.

Here is the real rub. Assuming that the buyer can afford to pay the extra deposit and fund a $425,000 house-and-land package, all it costs - assuming a 10 per cent deposit and using today's rates - is an extra $10 a day in mortgage payments.

The new home buyer can now own a home that is two-thirds larger for just $70 a week. To upsize the house, as outlined in the example above, would cost the buyer an extra $3640 a year.

cont...Click to expand...
Source  

评论
Gee I would hate to live in a house that costs $125,000 to build...you might as well live in a cubby house.  

评论
Too often, to my thinking, plots are overbuilt. I think it a big mistake to be building houses with no eaves since they provide weather protection to the walls and a good bit of shading to windows when the sun is high, apart from looking much better (IMO). The worst things of all (again IMO) is when you get a wall built up to a boundary with the gutter sitting on top of the brick veneer. T.  

评论
Im glad Im helping out with the averages - our house is twice the average! :D

pinkboy  

评论
While it may be cheaper per sqm to build bigger, how many times have you been to a display village and just thought "what a waste of space". Huge landings at the top of stairs which never get used, vast bedrooms so huge that you need to put unnecessary furntiure (seriously a daybed in your bedroom along with your bed).

Apart from sleeping, adults would not spend a huge amount of time in their bedrooms. I would rather have normal sized rooms, and extra living space/ better fittings.

And those house with no eaves are an eyesore.  

评论
Blurbman said: ↑
While it may be cheaper per sqm to build bigger, how many times have you been to a display village and just thought "what a waste of space". Huge landings at the top of stairs which never get used, vast bedrooms so huge that you need to put unnecessary furniture (seriously a daybed in your bedroom along with your bed).

Apart from sleeping, adults would not spend a huge amount of time in their bedrooms. I would rather have normal sized rooms, and extra living space/ better fittings.Click to expand...
I was just thinking that yesterday too. I think kids need a double sized bedroom cause they accumulate books, toys, collectables, enjoy their own space, listen to music, lie around, etc.  

评论
My old house used to annoy me being so big. Was too much to clean, kids loved to spread all their stuff around. Kids would get scared and be so far away from our bedroom so we ended up living in the front 2/3 house. Spiders seemed to know there were unused rooms and moved in. Maybe when the kids are 15-30 :eek: it would be appropriate. I love the size of house I'm in now, about 2/3 of the size. The block size is 55m2 smaller but I guess the house would be 80-100m2 so you get to enjoy a bit more of your yard. I'd say we use all/most of the space inside and out. Pool, sandpit, mudpit for my sons monster truck tracks, vege gardens, outdoor bar, useable private back, side and front yards.  

评论
INVSTOR said: ↑
My old house used to annoy me being so big. Was too much to clean, kids loved to spread all their stuff around. Kids would get scared and be so far away from our bedroom so we ended up living in the front 2/3 house. Spiders seemed to know there were unused rooms and moved in. Maybe when the kids are 15-30 :eek: it would be appropriate. I love the size of house I'm in now, about 2/3 of the size. The block size is 55m2 smaller but I guess the house would be 80-100m2 so you get to enjoy a bit more of your yard. I'd say we use all/most of the space inside and out. Pool, sandpit, mudpit for my sons monster truck tracks, vege gardens, outdoor bar, useable private back, side and front yards.Click to expand...
80-100 sqm seems small to me, though we seem to use all areas of our house with a teenager and two smaller girls along with ourselves  

评论
People seem to only think about the build cost of the house and not the long-term costs such as signficantly higher power bills etc. Not to mention the social cost that come with many of these new 500sqm houses such as very long commute times and isolation from amenities.

My parents and sister live in one of these houses and I just don't get it at all. Their quarterly bill for electricity and gas is pretty much what we pay for the whole year living in an apartment (should also be noted that they live in Melbourne and we're in Canberra which is colder) and that's with electric hot water, electric heating and regular dryer use for us.  

评论
redwing said: ↑
80-100 sqm seems small to me, though we seem to use all areas of our house with a teenager and two smaller girls along with ourselvesClick to expand...
OOps, meant to say the house I'm living in now is 80-100sqm smaller. I think it's about 160-180sqm and my old house was about 320sqm. (could be wrong though...It was built by Webb and Brown Neaves - one storey, but just having a quick look at their latest plans, they've designed them a fair bit smaller now)  

评论
House size for PPOR and IP obviously are very different thought processes.

For mine - bigger the house the more there is to keep clean.  

评论
Actually I quite like the size of Webb and Brown Neaves latest one storey designs!  

评论
cimbom said: ↑
My parents and sister live in one of these houses and I just don't get it at all. Their quarterly bill for electricity and gas is pretty much what we pay for the whole year living in an apartment (should also be noted that they live in Melbourne and we're in Canberra which is colder) and that's with electric hot water, electric heating and regular dryer use for us.Click to expand...
Meh. If you can afford a big house presumably the power bills are just a small matter for you.

Having said that, I don't like the 50 square monoliths that have been popping up in Melbourne, particularly in once-nice suburbs like Canterbury and Balwyn. Taking a trip down Monomeath Avenue is a shocking affair these days.  

评论
pinkboy said: ↑
Im glad Im helping out with the averages - our house is twice the average! :D

pinkboyClick to expand...
Give me high five :)
Ours is 42 square and we use every bit of it :)  

评论
INVSTOR said: ↑
Actually I quite like the size of Webb and Brown Neaves latest one storey designs!Click to expand...
I don't understand their pricing model tho. Aren't they just a dale alcock home but about 2.5 times the price?  

评论
Having said that, I don't like the 50 square monoliths that have been popping up in Melbourne, particularly in once-nice suburbs like Canterbury and Balwyn. Taking a trip down Monomeath Avenue is a shocking affair these days.[/QUOTE]

Its happening here in Fremantle.......lovely streetscape in one of the best streets being ruined by monster house built over 2 blocks. When I built in SOuth Fremantle the council were so strict that I did not get my extra bit of eaves that I wanted (as that would have taken me a fraction closer to the boundary).

The builder encouraged more house..in hindsight I would have been better with the bigger eaves.

One of the things I loved about Fremantle was the streetscapes and the character, even though I am in a new cul de sac. There were strict guidlines for all of us who built in the fist 10 years with type of roof specified (25 degree pitch and no tiles). For the most part the streetscape works quite well with only only house not built to those guidelines.

As far as big homes ...I have trouble looking after this little one and 240 sqm of land is just enough.

V  

评论
Aaron_C said: ↑
Meh. If you can afford a big house presumably the power bills are just a small matter for you.

Having said that, I don't like the 50 square monoliths that have been popping up in Melbourne, particularly in once-nice suburbs like Canterbury and Balwyn. Taking a trip down Monomeath Avenue is a shocking affair these days.Click to expand...
It's not just a matter of "affording" it - it's a very poor allocation of resources. Using my parents' house as an example, if the heater is on downstairs, only about 20% of the heated space is actually used. Sure you can afford it but you're just throwing money away. Also, many actually can't afford these huge houses - these new outer suburban estates have the highest rates of mortgage stress out of all areas.  

评论
cimbom said: ↑
It's not just a matter of "affording" it - it's a very poor allocation of resources. Using my parents' house as an example, if the heater is on downstairs, only about 20% of the heated space is actually used. Sure you can afford it but you're just throwing money away. Also, many actually can't afford these huge houses - these new outer suburban estates have the highest rates of mortgage stress out of all areas.Click to expand...
the argument is that it is the land they can't afford. It's a circular argument tho... make the land smaller so they can afford it and then they can only build a smaller house. Yes relative to the land the house is cheap, but it isn't cheap if you can barely afford the land  

评论
Ausprop said: ↑
I don't understand their pricing model tho. Aren't they just a dale alcock home but about 2.5 times the price?Click to expand...
Probably, I've never read the spec's for Webb and Brown Neaves as the previous owners built it, realised they couldn't have kids so decided to sell up and build a smaller house. My friend built with Dale Alcock about 6 years after ours was built and they seemed similiar quality. Possibly ours was built with a more expensive brick and hers was bagged or rendered. The only thing that stood out otherwise was her door handles were more plain. There doesn't look like any difference in the latest designs between the two though!  

评论
Its happening here in Fremantle.......lovely streetscape in one of the best streets being ruined by monster house built over 2 blocks. When I built in SOuth Fremantle the council were so strict that I did not get my extra bit of eaves that I wanted (as that would have taken me a fraction closer to the boundary).Click to expand...
And I know the one you mean :eek:. It looks so out of place, doesn't it?!

cheers  

Property Investment

Australia property Selling Hints | Sydney

澳大利亚Hi folks I recall ready somewhere about what are some simple tricks for making your place more attractive during a home open. Im seriously thinking of selling my little pad and want to maximise my efforts. Any hints greatly appreciated. 评论 ...

Property Investment

Australia property Re-zoning | Sydney

澳大利亚What would the chances of a NSW Local Council allowing a community titled development (homes, community buildings, etc) on an area zoned Protected Agricultural land? Does anyone have experience in this area? Looking at the local council LEP, ...