How to package House and Land and the Hidden Costs

Your Client is looking for a house and land package and is confused as to why prices are different from one house and land package to another in the same estate with a home of similar specifications.

There are many factors that will affect the price of a wholesale package. Builders will rely on 5 primary information sources that will alter the price of a house and land package.  POS (Plan of Subdivision), Engineering document (Civil engineering document accompanying the land estates subdivision plans) Design Guidelines, House Plans and the Government Bushfire Map.

Builders will make an evaluation of the proposed land using the documents above and determine whether they wish to proceed with building. There are several factors to consider. Some builders have a limitation range on the fall or gradient of the land. If the land falls within the maximum allowable limits set by the builder then the next step is to determine whether the desired home will actually fit on the land. (I will cover site costs in greater detail in my next segment)  By using the house measurements from the plans we are able to make a judgement on whether the home will fit. Generally speaking on lot sizes greater than 300m2 you require a 1 meter setback along the whole side of the house opposite the garage. Therefore when calculating whether the home will fit on the proposed lot you must allow for a 1 metre side setback along one side of the home. For example, if the lot size is 12.5 meters in width by 28 meters in length, the home’s maximum width would need to be approximately 11.5 meters and 20 meters maximum length. The length takes into account a 5 meter  minimum front garage setback and an average 3 meter rear setback allowance for rear open space requirements. Other factors which will affect the type of home allowable on a lot include maximum site coverage.  In most cases, the allowable maximum site coverage for a home must represent 60 percent of the overall lot.  Lots that are less than 300m2 fall into the small lot housing code. They are broken up into 2 types, either Type A or Type B.  In summary, houses that are constructed on lot sizes less than 300m2 have different setback requirements and the code allows for the site coverage to exceed the general 60 percent rule. The example provided is a basic example that would apply to most house and land packages, however the design guidelines in certain land estates may have further restrictions on setbacks to the front, rear and sides of the house. 

Other cost considerations that will affect wholesale packages include:

Building on boundaries.

1. If you decide to build on zero boundary most builders will require the services of a surveyor to reestablish the boundary. These costs generally range between $800 and $1100. 

2. Side and rear easements. Is there an easement running on the side of the proposed lot or the lot beside you? Is there an easement at the rear of the lot?   Depending on how close you build to an easement you will incur further costs. The costs are generally associated with the angle of repose or the pressure that the slab causes being close to the easement. Additional concrete is required on the side of the slab closest to the easement if the distance to the easement is less than 3 meters. These costs generally range from $700 to $4000 per side closest to the easement. There are additional setback requirements for easement with double story homes. As a general rule, single story homes require a minimum setback from an easement of 200mm, however, for a double story the minimum setback from an easement is 450mm.

Adherence to design guidelines. 

When addressing design guidelines there are often many requirements that must be met in order for a home to get approval from the design board. The requirements that are common amongst new estates include: Eaves to front facade extending to the side boundary up to 1 meter. No use of  lightweight material above the garage door. Panel lift garage doors requirement to front facade (No old fashioned roller door) No sliding window as a requirement  to the front facade. Other specific requirements include, roof tile profile,  roof materials, the use of a range of different materials to the front facade,  roof pitch requirements (Most design guidelines state a 22.5 degree roof pitch however some estate require a 25 degree roof pitch as a minimum), minimum ceiling heights, driveway requirements such as colour through concrete or an exposed aggregate as a minimum, fencing profile requirements etc. 

Bushfire

Generally speaking if the house needs to address bushfire requirements, costs generally range from $3500 to $5500 and this will depend on the type of house being built. The cost is associated with roof sarking to prevent embers entering the house through the roof and seals around external doors and windows etc. visit mapshare.vic.gov.au/vicplan to see the latest bushfire maps around Melbourne and Victoria.

Acoustic requirements

Acoustic requirements may be necessary in areas close to train lines, airports or aircraft flight  paths. Visit. www.infrastructure.gov.au/aviation/environmental/aircraft-noise/index.aspx

for further information. Acoustic requirements can add anywhere from $2000 to $4000 in additional costs.

6 Star energy rating

Builders must achieve a 6 star energy rating on new constructions. Most builders will incorporate this fee as part of their costs for a new home. Your 6 star energy rating will be affected by a number of factors. The most common factor is the orientation of the lot. Other factors include overshadowing of nearby buildings, windows orientations and building materials.

In conclusion there are many factors that contribute to the overall cost of a house and land package. We have touched on the more common factors.

Contact Valentino Lunardi on +61 412 910 719 for more info

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