A game-changer for the Australian dream of home ownerhip
A call to action from the residential construction industry!
The residential land market in Australia is facing its latest, and most likely its greatest challenge in recent history.
With transport, material and labour costs on the rise, and further funding pressures on the horizon, uncertainty around the cost of new home pricing will see consumer confidence plummet to post-HomeBuilder levels.
To keep first time buyers interested in buying land and building a home, we call all residential builders and land developers to offer what we term a "𝗗𝘂𝗮𝗹 𝗣𝗵𝗮𝘀𝗲 𝗛𝗼𝗺𝗲".
Quite simply, its a practical approach to buying now and extending later - to keep the dream alive. Not all new buyers want to live in an apartment or townhouse. Not all new buyers want to take on the maintenance burden of an old home.
Land rezoning has reached a point where lot sizes cannot sensibly reduce any further to maintain revenues. Once two storey construction is required, the costs associated become prohibitive - and buyers retreat.
The solution? A clever approach allowing buyers to build what they need now, with the ability to readily expand as their needs grow in future.
Both mainstream and social media perpetuate the property myth that a home needs to have four bedrooms for future resale value. As we all know - the value in residential real estate (after the location) is in the land!
Buyers will have the confidence to announce they are building a "𝗙𝘂𝘁𝘂𝗿𝗲 𝟰” home in an affordable way:
Now: Two bedrooms plus a home office / third bedroom, a single bathroom, stacked laundry, and a double garage to maintain the streetscape and appeal for both the buyer and the developer. All plumbing and electrical services laid at time of site works and capped off ready for phase two..
Future: Living room extension, master bedroom with walk-in robe and ensuite, full size laundry and undercover alfresco.
Reducing the number of wet areas upfront dramatically reduces the construction cost and time to deliver a home, capitalising on funding windows. Limiting the initial scope also improves buyer confidence around the contract price during the construction phase.
Buyers can own their own piece of Australia now, with the added benefit of saving thousands on stamp duty in future by extending, rather than moving. Plus - the design already facilitates a live-in renovation and extension.
Let's keep Australians buying land and building! A "𝗙𝘂𝘁𝘂𝗿𝗲 𝟰” four bedroom home built in two phases might just be the answer.
