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In recent years, the price of property has changed, and finding quality land can be difficult. If you’re lucky enough to have a big backyard, your land could be ripe for subdivision. This post outlines how to subdivide your property, and what you need to know to potentially make a profit.

What is a subdivision?

Subdivision means dividing your property into two or more lots. To do this, you could:

• Subdivide your land and sell the new lot for someone else to develop.
• Build a house on the newly-created lot, which you could later sell or rent out.
• Demolish your existing home and build three or four townhouses.

Why subdivide?

Over the past few decades, our overall population has increased, while the size of each family has decreased. This means:

• A high value is placed on houses – and vacant land – in established areas. It’s even better if you have access to public transport and communal green spaces.
• There’s a shortage of available properties, especially in urban areas.
• A big lot of land could become potential equity to make a profit.

How does subdivision work?

Before you go any further, it is important to understand how subdivision works, and assess if you are a good candidate for subdividing your land. There are some key questions to ask:

1. First, work out if a subdivision is possible

To be viable for subdivision, your lot of land should:

• Comply with local zoning laws. Check with your local council to see if your property is in an area that allows subdivisions.
• Ideally be relatively flat, to reduce the costs of construction and access.
• Conform to your local council’s minimum lot size. This varies depending on where you live, but a good rule of thumb is to have at least 7535 square feet of usable land.
• Have enough space to install another driveway.

2. Call in an expert

Once you’ve done your own assessment, call in an expert to get a professional perspective on your plan ideas. You could speak to a surveyor, certified town planner, or an experienced builder. They can advise you about zoning, overlays, and minimum lot size. Planning overlays identify features of the environment that might be impacted by a new development. In some cases, subdivisions may not be permitted due to protected vegetation, flooding, bushfire risk, or the location of protected buildings.

3. Apply for planning permission

With the help of your builder or surveyor, it’s time to put together a development proposal. You’ll need to outline how you suggest splitting the land and show plans for a proposed house, driveway, and car parks.

A Final Word

Subdividing your land is a complex endeavour but can be well worth the effort. With over 120 franchisees and multiple global offices, G.J. Gardner Homes has proven project experience coupled with local expertise and can help you through the process. Contact your local office to see how we can assist you with your subdivision plans.

Should you build a one or two story home?

At the beginning of any new homebuyers’ journey, the decision on whether to build a one or two story home is a major one that could impact your family’s lifestyle for years to come. It is essential to do your research before choosing the right house design for your family’s current and future plans.

In this article, we have outlined a few key considerations that will help you choose between building a one or two story home, including building costs, floor plans, land size, and the lot’s aspect. Making the right decision based on these elements will help improve your family’s lifestyle, help maximize the features of the property, utilize the lot better, and even help improve your return on investment over time.

Location and lot size

When deciding whether to build a one vs two story house, the first consideration, and potentially the most important consideration, is the size of your piece of land. Over the past couple of years, property prices have soared in both the inner city and suburban markets – leading to homebuyers spending more money on smaller lot sizes.

For this reason, many home buyers are deciding to capitalize on their new smaller lot size by building a two story home or even a three story home to create the living space that many families desire. When there is no room to build outwards, the only option left is to build up.

However, when moving away from high residential locations, there are more opportunities to own and develop a large plot of land. As we move further away from the city, we see larger pieces of land with one story homes. These properties and home designs are still a very popular option for families and downsizers.

Costs

When considering the cost of building a one story home versus a two story home, it should be no surprise that building a two story home is more expensive than staying on one level. On average, you can expect to pay 30% more when building a two story home than a one story home of comparative size.

Additional costs when building an additional level to your home can include:

• Plans and permits to satisfy local laws and regulations.
• Scaffolding to aid in construction.
• Steel manufacturing to support the additional load.
• Inclusion of multiple staircases for safe access to the second level.

You can also expect the build to take longer and the potential for unexpected extra costs during construction.

However, it is also worth considering that with the added construction cost comes the benefit of selling the home for more. This simply leaves the decision about whether it is worth the value for money and level of investment up to the customer.

Maximizing your property

Whether or not you should select a one or two story build also depends on the aspects of the property and what will maximize your piece of land.

For example, many home builders prefer a two story home design so that their home can have the best view possible and to ensure that trees or other one story homes don’t block their view. Views also add value to any property, whether your home looks out over city skylines or ocean waves.

If your property has beautiful surroundings, this may be a deciding factor in choosing to build a two story home. The invaluable respite and connection gained from a view can often be one of the main reasons people will add a second floor.

Assess the layout of the home

Another design aspect that needs to be considered is the desired layout and floor plan for the home. One story floor plans are great for achieving an open plan house that has large living areas and great flow.

On the other hand, two story homes can be more flexible in terms of layout and are a great option for allowing for more privacy for family members. They can provide zoned living arrangements or separate spaces for entertaining and living.

Consider your family needs and lifestyle.

Every family situation is unique and has different needs to best suit their lifestyle. What may work for one household will not necessarily be the best option for yours.

You should consider how you like to spend your free time if you require more privacy to work from home, have teenagers who want to entertain, or if you want to have room for children to play. If a family has children, the greater privacy and sense of separation afforded by a two story house is the best way to go.

Alternatively, if you live with elderly or disabled family members, it may be beneficial to keep everything at ground level to avoid difficulties walking up and down stairs. This should also be a consideration if you are building a house that you plan to retire in.

Single story and double story house plans

G.J. Gardner Homes offer a great selection of both double story and single story house plans. Some of our single story house plans include:

• A spacious feature packed home, the Barclay impresses with intelligent design and distinctive curb appeal.
• The Lincoln is a high performing three bedroom home designed for compact lots and urban living.
• The Bristol design is family home that is big on substance and style, tailored around a central courtyard that includes an attached, self-contained 557 square foot ADU.

Some of our two story homes include:

• The Ashland two-story design combines simplicity with functionality, and with three distinct living areas there is plenty of space and privacy for the entire family
• Offering the perfect blend of space and style, the Concord design has everything the modern family needs – including a 535 square foot attached ADU. 
• Take advantage of stunning views achieved by elevated, second floor living with the Grandview.

Find out if a one or two storey home is right for you.

If you have any questions or want to get started on building your dream home, contact your local G.J. Gardner office today for exceptional and friendly service.

If you’ve been browsing home designs online or visiting model homes, you will probably find yourself liking a bit of this and a bit of that—a bedroom from one model home and a bathroom from another. As an individual you have the right to change your plans to suit you and you shouldn’t be penalized for it. After all, it’s not built yet!

Most builders will accommodate change. The question is—at what cost? It’s understandable that there are costs that come with customizing a standard plan, but many people are unsure of how much they should be paying for customization.

Understanding customization costs

Unfortunately, it’s impossible to say exactly how much it should cost to customize a standard plan. After all, it is completely dependent on your builder, the plan you have chosen and the modifications you’d like to make.

As a general rule of thumb, we believe you should be able to change things like paint colors and tiles at no cost within certain ranges. More significant items like appliances and bathroom fixtures may involve a relatively low customization cost, depending on your selection.

Finally, changes to things like facades, layout and room sizes will almost certainly involve a customization cost, however these costs should be detailed and line-itemed (rather than charged as a lump sum).

To ensure that you aren’t being charged unnecessarily for ‘customization’, you should review the standard inclusions of the plan. You need to make sure your builder isn’t charging you extra for features that other builders would include in the standard plan price. For example, at G.J. Gardner with a G.J. Designer Plan, you will benefit from:

• An innovative floor plan that has been carefully designed to maximize usable space
• A choice of facade—the majority of our home designs have different facade designs to choose from, including styles like “Modern Farmhouse” and “Urban”
• A degree of personalization e.g. choosing fixtures, fittings and colors (this will depend on the design you choose and your local G.J. Gardner office)
• Expert advice from your new home consultant in regards to layout, positioning on your lot, etc.

Keeping costs down

Even if you’re unable to estimate the customization costs upfront, there are a range of rules to stick to that will help you keep customization costs down.

Plan range

By choosing a builder who has a large and diverse range of home designs and floor plans, you will have a better chance at finding a design that will suit your style and budget, without having to make a large number of changes

Land fit

When choosing a plan from a standard range, watch that it really does optimize your selected block of land, and is not just the closest fit. If—when taking into account the view, north/sun direction, privacy and site slope—you’re compromising to use a particular plan, consider whether this is the right type of plan for you.

Lump sum vs actual cost

Ensure the cost for changes is relevant to the work done and not just an inflated lump sum.

Get a fixed price

If you do want to customize a standard build, get any modifications fully priced up before committing to them (and make sure they’re included in the contract). In reality, at some stage you may have to compromise, either on price or on what you want included. If you leave this until after paying a deposit or signing a contract, you could find yourself trapped in a home that is not your own. Read more about the benefits of a fixed price quote.

Align on suppliers

Choosing a builder who traditionally doesn’t supply the fixtures and finishes you want is not likely to be the most cost effective choice. It will require them to go outside their normal suppliers and subcontractors which can lead to increased costs, complications and mistakes.

The first step

The first step in getting a feel for customization costs is being upfront with your builder about your desire to make changes.

You should take in and show the builder all your ideas, including:

• Clippings and inspiration boards (e.g. Pinterest)
• Floor plans and renders you like the look of
• Any plans you have had drawn up, or architect sketches
• Concept designs

Any builder worth their weight will take notes of your wish list, and try to include your items in their quote. It’s important to discuss this in detail very early so that they can guide you as to how it can fit into your final budget.

A good builder will be flexible and open to your individuality without making you pay exorbitantly for it.

Saving for a home down payment: what does it really take? Forget the quips about cutting back on coffee – we’ll show you how to get ahead and make your American dream a reality. 

So, how much do you need for an average home down payment?

The best way to find out how much is to check in with mortgage lenders. They’ll advise you on minimum deposits, your purchasing power, and other factors like mortgage insurance. Typically, the lowest down payment is 3% of the purchase price which is $15,000 on a $500,000 purchase. You should also start investigating the sort of location and home you’re after so you get a realistic picture of the market. 

Additionally, check your eligibility for down payment assistance, first home buyer programs and grants which can assist with quickening your savings timeline. For example, the ‘American Dream’ scheme from U.S. Bank offers consumers with limited resources the ability to become homeowners.

How long does it take to save for a home down payment?

In terms of how long it takes, everyone is different but recent research puts the average time to save for a 20% home down payment at 6 and a half years. You can also utilize resources such as a savings goal calculator to determine a realistic timeline for you to achieve your home down payment goals.

Once you know where you want to get to, the next question is how to get there. As the saying goes, “if you fail to plan, you are planning to fail.” 

There’s no getting around it: you’re going to need a plan.

A 5-Step Plan for Your Home Down Payment:

These are big dollars you need to save and that means looking at your financial future from all angles. You’ll need to:

1. Double down on debt
2. Track your spending and create a budget
3. Snip and save
4. Earn more money
5. Create healthy habits

1. Double down on debt: 

If you’re carrying historic debts, now is the time to consolidate them, then clear them to avoid paying extra interest. Take care of this first before you start saving.

2. Track your spending and create a budget: 

“You can’t manage what you can’t measure”. Successful saving is made much easier when you know your budget and can see where you’re spending. The good news? There is a huge array of apps to help you do this.

3. Snip and save: 

It’s time to take a long look at your lifestyle and work out what you’re prepared to sacrifice to get ahead. Big ticket items include renting out a room, moving back home, downsizing your car or getting rid of it all together and taking local holidays. Smaller ticket items? Eating and drinking at home rather than dining out, buying in bulk and at cheaper chains, and reducing recurring fees like gyms and media services.

4. Earn more money: 

It’s not all about your current paycheck. Get creative and think about how you can bring more money in to boost your savings. First things first, focus on your current career. 

Can you apply for a promotion, ask for a raise or even change jobs (if it makes sense given your situation)? Or are there other opportunities out there? Can you use your skills to take on freelancing work, or take a second job? With platforms like Uber, Upwork and Task Rabbitr, you can easily turn your side income on and off as it suits. If you’re comfortable, you can also look into making investments if it fits your saving timeline.

5. Create healthy habits: 

The #1 tip here is to pay yourself first. Automatically transfer savings to a high interest account when your pay comes in and decrease the chance that you’ll overspend. Other handy hints: if you’ve got a credit card habit, learn to live without them, limit impulse spending and shopping-as-entertainment, and become more mindful of both your savings goal and spending decisions.

The new home advantage

One aspect of your savings journey is deciding whether to build a new home vs purchase an existing one. There are a number of advantages to building:

• Lower repairs, maintenance and running costs, particularly if you build with sustainability in mind
• The chance to create a home that suits your needs perfectly
• Financial incentives, such as access in some states to grants for building new homes

The best way to save for a home down payment can vary, depending on spending habits but there are various benefits to each of the tips provided above.

Increases your power to borrow: The more frequently you save towards your first home down payment, the less risk you represent to a lender. The more you save, the more you borrow.

More choice: Making consistent savings down payments enables you to access a wider range of loans, as more borrowing power grants you access to more lenders’ products.

Access special rates and deals: Consistent home savings down payments may attract high loan qualifications with low-interest rates that save you more money.

If you want to start saving for a home down payment, talk to your local, friendly G.J. Gardner Homes Design Center first. They’ll give you useful advice to get you started and help you decide whether building a new home is right for you. 

If you are looking to save thousands of dollars and avoid costly legal battles, make sure you ask your custom homebuilder the following questions before you sign any contract or pay any down payment for your dream home.

Down Payment and Pricing Questions

A reputable homebuilder will prepare a contract once you have finalized your plans and detailed specifications. This contract should clearly set out the responsibilities, and importantly, a progress and payment schedule of each party.

1. How much is the deposit and how much will be kept should we not proceed?
2. At what point will we have the final price?
3. Can you give us a price before we pay a deposit?
4. If we pay for things like soil test and property information, do we get these reports to own should we not proceed?

Land Questions

Finding the perfect lot for your new home is an important decision. There are several considerations when choosing the size, location and exposure of your land to ensure you can build your dream home.

If you agree to pay for preliminary information like a soil test, property report and levels, you should ask your builder the following questions. If the answers to any of these questions is ‘yes’, you will need to obtain a cost for each that will likely sit outside standard inclusions.

5. Do I require an engineer-designed foundation? (You may require this if your block is on reactive soil or close to the coast.)
6. Do I require protection against termites?
7. Does the storm or septic water disposal system need to be engineer-designed?
8. Are retaining walls likely to be required?
9. Will there be soil/fill that needs to be taken away or brought onto the site?
10. Will there be services required to receive distant connections?

Plan & Design Questions

11. How many plans do you have in your range?
12. Can I modify your standard plans and at what cost?
13. Can I bring in my own plans for you to price?
14. Will you inspect our lot before we buy it to ensure it is suitable for the kind of home we want to build?
15. What is included in your floor area total? (The total square footage of a home can be measured in different ways. Some builders could include decks, eaves, patios or paved areas.)
16. Will you provide a comprehensive design consultation service? What will this include?
17. Will you provide modern visual design aids and access to professional designers to help me achieve the ideal plan that I want?
18. Will you help me to find out if there are specific requirements or restrictions regarding our home’s location on our lot?
19. Will you give me a simple concept plan with my quote before I pay my deposit?
20. What energy rating will my home be aiming to achieve?
21. Where will the midday sun enter the home?
22. How much afternoon sun is going to enter the home?
23. Where will the view (if any) be visible from inside?
24. Are there long distances for the hot water and if so how will wastage/lag time be reduced?

Standard Inclusion Questions

25. Is your quote comprehensive in its inclusions?
26. Can you explain what is not included?
27. What soil classification is allowed for in your standard inclusions for foundation and slab design? (Some builders often treat even simple excavations and siteworks as extras.)
28. Will my color selections be carried out locally?
29. What heating and cooling is included?
30. What floor coverings are included?
31. Do you have a soil test allowance in your standard inclusions?
32. Does the contract or quote include any provisional sums? (These costs could potentially be a guesstimate that are not fixed and will change once they have the final price from their supplier.)
33. Have you included full drainage and other service costs, or have you listed them as a provisional sum? (This could potentially be listed as a provisional sum which could rise considerably.)

Credibility Questions

34. Are you licensed and insured?
35. Can you show me through any homes that are currently being constructed, or any completed homes? (Here you can check the quality of workmanship of existing customer homes.)
36. Can you provide me written testimonials from past clients?
37. Is it a fixed build time?
38. Will you pay me money if you are over contract time? (This is also known as liquidation damages.)
39. What exceptions enable you to extend the contract time with no liquidation damages payable?

Confidence Questions

40. What jobsite health and safety processes do you have in place?
41. What contractors do you use?
42. Do you have a dedicated construction coordinator who will personally manage all sub-trades on my site, keep me informed of progress and answer my questions?
43. Can I speak directly to the registered builder who is ultimately responsible for my home construction?
44. How can I be sure your company is financially stable?

Guarantees Questions

45. Who does the builder acquire homeowner warranty insurance from?
46. Does this insurer cover loss of down payment, non-completion and defects?
47. Does the builder have public liability insurance, and construction insurance adequate for your home?
48. What is the maintenance or warranty period?

Technical Questions

Although many of these questions are technical in nature, it can be beneficial to have responses so that you can accurately compare quotes.

49. Is the supply of concrete pumping included?
50. What wall and ceiling insulation is included?
51. What type/level of paint system is included? What is the brand of paint?
52. Is sheathing to roofing included?
53. Are gutters and downpipes included?
54. Are eaves standard on our chosen design?
55. What type of toilets and basins are included?
56. Is frosted/privacy glass included in any bathroom?
57. Are there plan-specific upper kitchen cabinets included?
58. Is a gas or electric tankless water heater included?
59. Is the rangehood ducted to natural air i.e. not recirculated?
60. Is termite treatment included and what system is used? Will maintenance be required?
61. Is trenching and conduit for service connections included?
62. Is ceiling plaster fixed onto metal battens, reducing the risk of warping and cracking?
63. Is a finished garage included? What level of finish is included? At what stages will you be able to inspect the works?

Two Golden Rules

Finally, there are two golden rules to follow when dealing with homebuilders. First, never sign anything with your homebuilder until you have read the fine print. If there is something that you do not understand, seek advice from an independent homebuilder, consultant, or obtain legal advice. Remember that there is no ‘cooling off’ period. So, once you sign a homebuilding contract you normally cannot withdraw from it if you change your mind.

Second, ensure you keep a written copy of everything important and that all request, confirmations, and changes are in written correspondents; email is the best way to do this. 

Looking for a homebuilder in your local area? Contact your local G.J. Gardner Homes Design Center.

Before you sign a building contract, it’s incredibly important that you’re confident the quoted price is accurate. 

Although it is impossible to estimate the cost of building to 100% accuracy, a fixed price quote will ensure that your contract is as close as possible to what you will pay at the end.

What is a fixed price quote?

A builder should take many things into consideration to reach the final price in their quote —such as the style of home design, the type of lot you are building on and the level of inclusions you want.

Fixed price quoting (sometimes known as lump sum), is where you, the owner, get a quote based on actual costs rather than an estimate. This is the safest option because you can plan your budget, secure in the knowledge there will be no hidden extras.

Time and effort

A fixed price quote means time has been taken to assess the job including every aspect of the build from siteworks to finishing. It can be a timely exercise to collate all the costs, however the wait, and peace of mind is worth it. 

To conduct a fixed price quote, your builder will need:

1. The results of your soil test, site survey and levels, and a detailed site plan or property report
2. Your complete choice of fixtures & fittings 
3. The details of your custom or modified plan 
4. Specifications to your requirements

As part of the fixed price quoting process, you should also get a concept plan of your house. 

What’s the alternative to a fixed price quote?

Most contracts allow for some extra charges for things like hitting rock, extra foundation work, interest on overdue payments, etc. A Cost-Plus contract has no fixed price, rather you agree to pay for the material, labor cost and a fee. The builder essentially provides a rough estimate of what the job may cost, but the true amount will not be known until the build is finalized. This means you must be actively involved in the contract, budget and reviewing construction costs which can add a level of complexity to the build.

This style of contract allows for added risks like overruns, indirect costs and mistakes which can quickly chew up building budget. A Gross Max Price (GMP) may be included with this style of contract, but this generally includes a higher fee as there then increased risk for the builder. A fixed price quote will help you avoid any surprises like these. 

Fixed Price Inclusions

In addition to reducing or eliminating estimated costs, a fixed price quote should clearly detail all the inclusions of your build.

The type of inclusions offered will vary from builder to builder—depending on the most common style of housing and the market—but some of the high-quality inclusions to look out for are: 

• 8 foot high ceilings
• Quality of roof tiles Level of quality of plumbing fittings
• Ceiling and wall insulation
• Quartz/Granite countertops
• LED lights

Any additional inclusions or customization that you require should be negotiated and included in your fixed price quote.

Tip from a builder: make sure you get a complete fixed price quote that covers all stages of the building process. Some builders will offer a fixed price quote from the slab stage up—the foundations/slab stage is the highest risk area for cost overruns, meaning that this type of quote isn’t truly reflective of your final costs.

The Benefits of a Fixed Price Quote

A fixed price quote will undoubtedly save you time in the long run, and potentially tens of thousands of dollars. The benefits of a fixed price quote include:

1. Avoiding difficult decisions that arise from ‘unknowns’. If there is $20,000 surprise 3 months into your build, you will have to decide to compromise or accept a higher price (and potentially apply for additional finance). Avoid this difficult decision with a fixed price quote.
2. Helping you to accurately compare builders to one another. It is important to consider the quality of the materials when comparing the quote amount
3. Reducing the build time and time spent going back and forth for pricing and decisions
4. Potentially eliminating the need for expensive lawyers and your state’s civil and administrative court of justice
5. Reducing stress, as the risk is transferred to your builder
6. Getting exactly what you want!

When you first start considering your futurebuilder, make sure they have a fixed price policy. Otherwise, your dream home might end up costing you more than you think.

Learn more about what questions to ask your builder, before signing a contract here.