Building Costs

[Bazile]

A developer selling  bungalows for 100k 

What sort of figure roughly would it have cost to build the bungalow ?

[barry1010]

What costs are you including? Developers aim to make a 20% profit after all costs, which is very different from the costs of materials.

[Hymie]

Unless it is situated in the outer-Hebrides or somewhere similar – that sounds a bargain to me.

 

Back in the early 2000s when I owned an end of terrace 3 bedroom property (subject to a mortgage), for insurance purposes the rebuild cost was circa £80k with a total property value of circa £180k – so the land alone was worth £100k.

[naomi24]

That's little more than a shed where I live.  Where is it and how big are the bungalows?

[chelle7272]

According to this the minimum cost for a 2 bed is £146K!

https://buildpartner.com/how-much-does-it-cost-to-build-a-bungalow-in-the-uk/

How big (or small!) are the bungalows?

[jackthehat]

Get yourself a piece of string and measure it, Bazile......😁

Far too many variables to give you a proper idea.

Is there a reason you want to know apart from nosiness? LoL

[barry1010]

I assumed there are no bungalows for sale for £100k and Bazille wants an idea of profit margins/costs

[Bazile]

I was just curious to know how much these new builds cost the developer in total .

It's from an ad that popped up on my phone .

I was waiting to see if that particular one came up again , from 'on the market com ' to see the location of properties - but i have not seen it yet .

 

 

 

 

 

 

 

 

 

 

Sr

 

 

 

 

 

[pastafreak]

Could it be a kit or a prefab?

[Canary42]

£100k round here would get you a beach hut.

[jackthehat]

'Economies of scale' come into play.

Ifyou have the materials, labour and machinery to hand it becomes cheaper to build the next house.

If you build house A, house B will be slightly cheaper, house C slightly cheaper still, an so on......

If you build enough houses, the last several/few are, essentially, built for nothing and that's where the developermakes his/her money.

[The Builder]

In my early days, there was a (very) rough rule of thumb that gave the cost of the plot as a third. The other two thirds were for construction and profit.

During the Margaret Thatcher years it crept up to around 40/60. Then 50/50. Since then, the figures have been meaningless. It all depends on location etc.

That's for single plots. Volume builders have a different set of parameters. To answer your question Baz, I'm with Jack and her piece of string. It's impossible to quantify.  🤔

It is possible to build a modest bungalow for 100k, but someone would have give you the land for free.  😁

[Bazile]

Thanks all