Minor Dwelling/sleepout cost?

[vivo]

Hi all,

My first post here!

I have recently converted a workshop into a studio 'minor dwelling' on the back of one of our property's.
The studio approx. 30m2 and has a kitchentte, & seperate bathroom. The builders etc have finishled it well (some minor faults). Overall we have made it quite nice and are getting a good return so are happy.

Thing is, I was disappointed with the costs relative to budget, esp for the electrician (~$7k!), and was hoping to get some idea of what is realistic?! Maybe they have charged fairly, at today's rates?

We budgeted generously at $70k all up for the lot and it looks like we have come in just above that. This seems high to me for a small project.

Or have I got it wrong??

Please - lend me you experience....

Either way it has been a great experience and a WIN investment!

PS we are keen to do more developments so are quite keen to chat with others with experience on the same path so drop us a line...

[fudosan]

Hi vivo,

A warm welcome to PT

Regardless of whether you have been overcharged, since you have made a profitable investment, congratulations!

[Aston]

Hi,

When I'm doing any building work for myself I try to do it for around $1000 per m2. (I do the building work myself and get plumbing and electrical work done by the professionals.) To do it for this price though I have to buy carefully, shopping for specials etc.

I've also had work done by builders and paid 'the going rate' but done the buying myself. When I've done this I've been able to get the work completed for around $1400 per m2.

I know somebody who recently had an alteration done on a contract basis and it cost him about $2000 per m2.

All of the above prices are for additions though and not renovation or interior work as you've been doing. They'd be built using quality materials too. If the building was for an IP then the pricing would come down a little.

The pricing for the work you've had done sounds excessive but you've done a bathroom and a kitchen and they certainly blow the costs out of proportion on a small job such as this. The electrical work you've had done also sounds very expensive, just for wiring a sleepout???, but it's hard to comment without seeing exactly what was done, did you have to rewire the whole house also?

If you paid $70,000, what sort of rental are you charging for the sleepout?

What's the definition of a sleepout? Are sleepouts allowed to have kitchen facilities? And what's the maximum allowable area of a sleepout before the sleepout becomes a flat?

Regards,

Aston

[Dean@Massiveaction]

Hi Vivo. From an investment point of view it sounds like someone saw you coming. If I read your post right and you converted a workshop then you basically put an interior into four walls and a roof. For $2500 a square metre you should have a palace beyond belief.
Allowing say 5K for a kitchen, max of 5K for a complete bathroom 25K total should have got it pretty well finished. I say this without teh benefit of seeing it or knowing all the details but I can build a whole house for between 900 and 1000 a square metre. An interior should cost you less!!

[Kerry Christian]

Hi vivo

Your cost to complete is high (assumption) and I suspect that you do not have a building team that you work with. I suspect this is a one off "project" for your contractors and see you as the bank

If you get a building team you can reduce your costs considerably - but as a builder/Project manager I have not seen your project and what you needed to have your project work.

As an aside - I pay less than 7k to wire a new house

Kerry

[vivo]

Lesson being learnt

Thank you all for your comments and thoughts, all be it frustrating to hear!!
I guess you confirm my suspicsions that 'they saw us coming' and we have paid on the high side.

No matter - the yield is good and value regained in Capital growth. (it is rented with white wear for $190pw).

It is really a studio flat now, not a sleepout (but not a palace either)!

I won't be using this 'team' again. How does one go about getting a good team of tradespeople together? We have been through a few but are keen to find a team we can stick with and use for all sorts of projects and routine maintenance...?

Thanks again.

[FreezingHot]

Hi Vivo

Sometimes it can be a bit hit and miss with tradespeople. I prefer to get recommendations from other people who are happy with the work done.
I was fortunate to have friends who were builders and handymen who would not rip me off, obviously because I knew them well, also always get quotes for such work, at least 3 would be a start. Check out there previous work, was it done to a high standard? If not move on to someone else.

I have heard of tradesmen giving ridiculous quotes just so they don't have to do the work because they had so much work on. As the demand decreases they will be the ones chasing the work and the cost of building may drop a little.

Also I think it is a good exersize to find out what building materials cost, things such as gib board, tap fittings, benchtops, shower fittings etc etc, that way if
a builder gives you a quote with the materials itemised
you will know whether the price is about right. Some materials are more expensive that others so I tend
to go for the medium quality goods, they last longer and won't break your budget.

Hope this helps, I am relativley new to IP but have learnt a whole lot by listening to tradespeople who are on my side and not out to make money for early retirement.

If there is one positive lesson you will have learnt, it is what price not to pay for a studio, and that has got to be a good thing right!

FH.