So as of yesterday, the sale of our home is official and I’m able to go over the complete numbers and journey from start to finish. The project was conceived over 3 years ago now, but it only feels like yesterday when I started researching.
Mid-2013 I ran some numbers, researched areas to invest, looked at long term projections and goals, and eventually settled on Bingara Gorge as the location to buy and build. We purchased our block in October 2013, just before the recent price boom. We built and moved into our new home over the following 8 months and had things more or less finished completely by Christmas 2014. That was the majority of the hard work – during 2015 and 2016, we had a break, lived in our comfortable home and let the booming property market do the hard work for us. We’ve now sold our home which is due to settle at the start of December 2016 and our lives are once again thrown into chaos as we prepare for our next development project in 2017.
So here are the numbers (numbers in brackets are a loss):
- $(269,000) – Purchase of 1000m2 block in October 2013
- $(375,000) – Purchasing costs and construction of the house in 2014
- $(20,000) – Selling costs in November 2016
- $(664,000)– Total project cost from start to finish
- $897,000 – Sale price in November 2016
- $233,000– Total profit (tax free as it’s a principal place of residence)
So as you can see, the project has resulted in a good profit and we’re happy with the result. Essentially the profit covers the cost of my time off work I needed to build, as well as the manual labour put in over a 1 – 2 year period. The market also moved favourably during that time which also added to the profit. Though it’s a good result, it’s not really reliably repeatable given that without the market movement, the profit would barely cover the opportunity cost of the effort put in.
Though we are happy with the outcome, I also believe the purchasers got a good deal as the rebuild cost with all the landscaping would likely be greater than the amount they paid. Also I’ve come to the conclusion that the sustainable features didn’t really add much to the sales value. The issue being that the features are hidden away and so purchasers don’t really know about them unless told. The sales agents don’t have the time and simply don’t understand the systems enough themselves to promote the sustainability and so their benefit to resales is lost through the sales project. So the purchasers don’t even know it yet, but coming from a cheaply built and not very sustainable house to this one will benefit them significantly which they won’t even realise until they are living in the home and wonder why it’s always so comfortable and their electricity bills are so little.
Also I’ve come to the conclusion that the sustainable features didn’t really add much to the sales value. The issue being that the features are hidden away and so purchasers don’t really know about them unless told.
We’ve recently had our DA (development application) approved for our next project with construction plans starting in January – during this time I’ll start to go over the construction of the new house. We’re planning on living in it for the foreseeable future, so we will spend even more time and effort on the design to suit us and sustainable features that will benefit us. So keep an eye out on this blog for future updates, lessons, and tips.