cost of building a House

ad44downey

The average house price is about £180K I think.

Does anyone know roughly how much it costs to actually build the average house (i.e. materials and labour)? Is it about 50% of the sale price? The other 50% being for the cost of land and profit for the builder/developer. Just curious to know

justpurchased

ad44downey wrote: »

The average house price is about £180K I think.

Does anyone know roughly how much it costs to actually build the average house (i.e. materials and labour)? Is it about 50% of the sale price? The other 50% being for the cost of land and profit for the builder/developer. Just curious to know

Hi I think builders base it on 1/3 land, 1/3 build 1/3 profit.
But to tell you the truth the estimated rebuild cost for our house on insurance is nearly the same as what we purchased for. so to get a house built for you the build cost would go up due to the economies of scale large building companies have.

adr0ck

justpurchased wrote: »

Hi I think builders base it on 1/3 land, 1/3 build 1/3 profit.
.

builders are not Tesco

profit on homes would normally be 10-15%

justpurchased

adr0ck wrote: »

builders are not Tesco

profit on homes would normally be 10-15%

:rotfl:

Wrong I have a friend who manages large building projects for a large group of builders.

adr0ck

justpurchased wrote: »

:rotfl:

Wrong I have a friend who manages large building projects for a large group of builders.

does he have access to all costs? or just site costs?

ad44downey

House prices are falling. I presume building costs are about the same as before but the cost of the land and the developer's profit have fallen significantly?

adr0ck

ad44downey wrote: »

House prices are falling. I presume building costs are about the same as before but the cost of the land and the developer's profit have fallen significantly?

yep

if your looking to buy some land and get a house built by a builder (now would probably be a good time to do it) - you should be able to (with a bit of negotiation) get a good price

(i will be very surprised if the builders who quote for the work will be making 33% profit) :rotfl:

Jonbvn

Assuming conventional construction with reasonable finishes in a suburban area you would be looking at about 100k for a 3/4 bed detached.

adr0ck

i always recommend this book for anyone building their own home

http://www.amazon.co.uk/Housebuilders-Bible-Insiders-Construction-Jungle/dp/0954867440/ref=sr_1_1?ie=UTF8&s=books&qid=1219828115&sr=8-1

justpurchased

adr0ck wrote: »

yep

if your looking to buy some land and get a house built by a builder (now would probably be a good time to do it) - you should be able to (with a bit of negotiation) get a good price

(i will be very surprised if the builders who quote for the work will be making 33% profit) :rotfl:

i am talking large builders Persimon, bovis, george wimpy Etc. Not John Wyne ltd. As I said One of the above would be able to build a house cheaper as they can get building materials at a low cost and dont need to pop to jewsons. 1/3,1/3,1/3 as been the standard for years any EA, builder property expert would tell you that. so if you need to build a house to be worth £300k you would budget the land at £100K and Building and materials at £100K.
I cant even beleive anyone is arguing with this!

justpurchased

ad44downey wrote: »

The average house price is about £180K I think.

Does anyone know roughly how much it costs to actually build the average house (i.e. materials and labour)? Is it about 50% of the sale price? The other 50% being for the cost of land and profit for the builder/developer. Just curious to know

so to answer the question if it was a house to be built to be sold a build company would look to buy the land for the one house at £60K, building and materials £60K, Profit, Admin costs etc, £60K.