Your house may never be worth as much again

IveSeenTheLight

Graham_Devon wrote: »

I know someone who had their house built for them about 2 years ago. The land and legal fee's made up 90% of the cost at least. The actual cost to construct the house, ignoring materials, was just shy of 12k. Up in 3 months from scratch.

Sorry, I'd have to question this.

£4,000 per month for all the journeyman required to build a house (Your £12k over 3 months)
Doesn't sound enough for me.

I don;t have a breakdown of the figures, but I know someone who built a property about 10 years ago.
I recall them saying the total cost of the land materials labour etc was £90k but that upon completion, the house was valued at £150k.

I recently had a quote from a cheap Joiner I know to put up some substantial decking and ballastrades.
the costs including materials was £1600 for two weeks.
I believe the materials was about £600, so that one guy was earning £500 per week.

That's £2000 per month.

Do you really think that effectively 2 people can build a house in 3 months?

Graham_Devon

I'm not going to argue it. I know it happened. Whether they were lying about the costs I can't comment on, but I don't see why they would.

I've been in the house, and know it wasn't there, and then 3 months later it was and they were in it.

The person commisioning the build was able to do a lot himself afterwards, such as interior decor. They fitted their own kitchen, so no doubt that bought the costs down.

Feel free to question it. They is afterall no definitive "cost to build a house". But I don't fancy arguing over it, as it's not something I can prove, and I have no intentions of doing so.

RenovationMan

Graham_Devon wrote: »

I'm not going to argue it. I know it happened. Whether they were lying about the costs I can't comment on, but I don't see why they would.

I've been in the house, and know it wasn't there, and then 3 months later it was and they were in it.

The person commisioning the build was able to do a lot himself afterwards, such as interior decor. They fitted their own kitchen, so no doubt that bought the costs down.

Feel free to question it. They is afterall no definitive "cost to build a house". But I don't fancy arguing over it, as it's not something I can prove, and I have no intentions of doing so.

We had an extension on our previous home and I was amazed at how cheap the actual build was, including materials. The expense came in with the different trades that then came in, such as the electricians, pumber, kitchen fitter, tiler, etc.

If your friend was quite handy then I could imagine him saving himself a fortune. We're just looking now at replacing the heating system in our new home. I intend doing as many of the jobs as I can to keep costs down (such as lifting the stone slabs in the floor and cutting channels for the pipes in the concrete below. I may even fit some of the pipes if I get the time and have the plumber just fit the more complex bits such as the boiler and the cylinder.

Blacklight

Graham_Devon wrote: »

I'm not going to argue it. I know it happened. Whether they were lying about the costs I can't comment on, but I don't see why they would.

I've been in the house, and know it wasn't there, and then 3 months later it was and they were in it.

The person commisioning the build was able to do a lot himself afterwards, such as interior decor. They fitted their own kitchen, so no doubt that bought the costs down.

Feel free to question it. They is afterall no definitive "cost to build a house". But I don't fancy arguing over it, as it's not something I can prove, and I have no intentions of doing so.

And how is that comparable to someone like Taylor Wimpy building homes?

Exocet

Blacklight wrote: »

And how is that comparable to someone like Taylor Wimpy building homes?

Do they still build houses? I thought they went under?

chucky

Blacklight wrote: »

And how is that comparable to someone like Taylor Wimpy building homes?

their average sale price must be around £150k - build costs at £12k plus land costs plus materials bought in bulk would give them a very, very healthy margin on each sale.

if this was the case why aren't their profits smashing market records?

Graham_Devon

Blacklight wrote: »

And how is that comparable to someone like Taylor Wimpy building homes?

It isn't. But, if you go back and read the posts, Taylor Wimpy (nor any other major building company) was never ever mentioned.

And if you REALLY want to get into comparisons on that, then sorry, but you are going to have to factor in mutlitudes of reimbursements, grants for building certain numbers of certain houses.

In other words, there is no point trying to compare. The two costs are completely and utterly different scenarios with massively different layouts, overheads, etc.

But your 30k for 6 months for one employee was WAY out. If you want to bring in Taylor Wimpy to the mix, then how many of their labourers actually building the constructions are on 60k a year? Even at the cost to the company including pensions, NI etc, they still won't reach anywhere near 60k an employee.

RenovationMan

Graham_Devon wrote: »

It isn't. But, if you go back and read the posts, Taylor Wimpy (nor any other major building company) was never ever mentioned.

And if you REALLY want to get into comparisons on that, then sorry, but you are going to have to factor in mutlitudes of reimbursements, grants for building certain numbers of certain houses.

In other words, there is no point trying to compare. The two costs are completely and utterly different scenarios with massively different layouts, overheads, etc.

But your 30k for 6 months for one employee was WAY out. If you want to bring in Taylor Wimpy to the mix, then how many of their labourers actually building the constructions are on 60k a year? Even at the cost to the company including pensions, NI etc, they still won't reach anywhere near 60k an employee.

A lot of them will be self-employed and so wont have TW supplied pension, sick pay or anything. They'll come in, do their job and then move onto the next building. They'll be paid by the hour for the work they do, if there is no further work, then they don't get paid.

IveSeenTheLight

Graham_Devon wrote: »

Even at the cost to the company including pensions, NI etc, they still won't reach anywhere near 60k an employee.

Can you get your friend to PM me the details?
Labour costs of £12k and completion in three months.

I see an opportunity here.
4 houses built in a year for £48k + Land and materials.

Blacklight

Graham_Devon wrote: »

But your 30k for 6 months for one employee was WAY out. If you want to bring in Taylor Wimpy to the mix, then how many of their labourers actually building the constructions are on 60k a year? Even at the cost to the company including pensions, NI etc, they still won't reach anywhere near 60k an employee.

Graham, you really have no idea. Stop embarrasing yourself.

On top of basic rates including tax you have:

NI, CITB levy, insurances, accidental death, lodging, traveling time, transport and fuel, PPE, training (CSCS, plant tickets, safety: SSSTS, SMSTS, COSHH, CPCS), pension, holiday and bonus payments. All have to be factored in to labour costs to the company.

WAY out?