MWa Latest News

5 RESIDENTIAL BUILDING COST & CASH FLOW: 2018 CASE STUDY which shows you where the money goes and the cashflow from start to finish.

5: Residential building cost and cash flow: A 2018 CASE STUDY which shows you where the money goes and the cashflow from start to finish.

Read on…click below on MWa’s STRAIGHT TALKING client advice articles:

1 Architects – Do you need one? Is your project suitable?

2 Your Brief: Wish List, Shopping List & Priorities List: Decide what you need, what you want and what you can spend – before finding your architect.

3 Your Architect – A Good Match: How to find the right architect.

4 Process: Strategy, Vision, Compliance, Detail & Delivery: How it all works 

5 Costs & Cashflow – 2018 Case Study: A recent renovation case study which shows you where the money goes and the cashflow from start to finish.

6 Time – How long will it take?: How to cut six months off a renovation time frame.

7 Fees – Myth vs Reality

8 Manage Costs, Save Money: 10 Ways to Manage Costs, 10 Ways to Save Money

6 RESIDENTIAL RENOVATION TIME – How long will it take? And how to cut six months off a renovation.

6 Residential Renovation Time – How long will it take? And how to cut six months off a renovation.

Most prospective clients are interested in how long will their residential renovation will take.  (residential renovation time how long will it take?)

In Sydney, with our current planning framework, and for a reasonable size renovation which requires DA approval with Council, the short answer is about two years from start to finish, from an initial consultation with an architect to completion on-site and move in.

This is not what most prospective clients want to hear.

What takes so long?

Regardless of client pressure and expectations on time frame, most projects have to step through the process of feasibility and initial design, approvals, documentation, tendering, appointing a builder, construction approvals and then the construction on-site.

It’s complex and requires a team of people working together in sequence, each contributing what’s necessary at the right time, to keep the project on track.

Generally, preparing to get onto the building site will take longer than the construction on-site.

The cliche “Rome wasn’t built in a day” still rings true.

However, there are 5 factors which can significantly impact a project timeline.

If TIME is important to you, knowing the following can save you at least 6 months of time, depending on your circumstances:

1  Get your finances in order, and match your spend with your project budget.

Regardless of following any of the other factors included in this article, the single reason why project timelines extend on residential projects is the client decision making process around money.  This takes up the most amount of time throughout the entire process.  Projects which run smoothly and swiftly have decisive clients, where finances are aligned with the project scope.

2  Follow MWa’s advice and and prepare well.

Know your brief, engage the right architect, step through the sketch design process to set the strategy and vision.  This is common sense.  Starting your project off on the right track will save you time with a more efficient process.  Successful projects move along consistently at each step of the process.  There are no delays and hand-wringing over decisions.  Your decisions are easy when your vision is clear. 

3   Avoid a DA approval completely.  

If your site is eligible, consider tailoring your project to suit an approval via the NSW General Housing Code for Exempt and Complying Development.  In most cases, this will save at least six months off your renovation time frame, if not more.  It will save time in preparing documents for the DA submission (which are not needed for a CDC application), and then the time Council takes to consider the DA (often between three and six months).  A CDC application may also save you money, with less fees and less time.  See more on this in 8. Manage Costs, Save Money.

4   If you have to do a DA, then there are a couple suggestions to reduce the DA time:

Progress the DA process smoothly and efficiently with a well run application lead by a good architect.  Factors such as submitting a robust design and a thorough DA submission (maybe even a Pre DA session with Council), as well as maintaining good neighbourly relations, can also save time through the DA process.

Don’t wait for your DA to be approved to commence detailed documentation for tender and construction.  Liaise with your architect to assess the risk of moving on to the next stage of work, before the DA approval is final.  Commence documentation for tender/construction/construction certificate as soon as the indicators are positive that the DA submitted design is to be approved.  Some councils take weeks to process the final DA release.

5  Don’t do a competitive tender.  

Select your preferred builder early on, for example Sketch Design stage, and enjoy the benefits that come with working with a trusted builder involved in the process.

No matter what the anticipated time program, or the benefits of a competitive tender are, it takes TIME.

In 2018,  with a busy residential sector, the tender process is taking longer than anticipated.  Lining up three to four builder to tender, briefing them, providing them the usual 3 weeks time to tender, which in some cases invariable extends to 4 to 6 weeks – adds time.  Assessing tenders, meeting with a preferred tender, negotiating the details, identifying cost savings (note factor #1 above about aligning your brief and budget), documenting changes and agreements for contract signing – can take 3 months all up. 

And then the builder needs to have finished their last project and be ready to start on yours.

Selecting your preferred and trusted builder early speeds up this process, as the issues can be resolved earlier in the process.

There are benefits to doing a competitive tender.  It’s human nature to want choice and to know what’s a fair and reasonable price for your renovation – the going market rate.  Often clients go with the tendering builder they already know or has the most established relationships anyway.   It’s never best to select a builder on price alone.

You can save TIME by selecting a builder earlier in the process, based on criteria other than COST.

Conclusion

At MWa, our shortest time frame in recent years has been 7 months from initial consultation to starting on site.  That’s our office record, going down the CDC route and building selected by the client early on, with no competitive tender.

A more usual time frame is 12 months, for a project including a smooth DA approval and where the client’s brief and budget are aligned so their decision making is fast.

Download this article and MWa’s TYPICAL RESIDENTIAL RENOVATION PROGRAM to help you plan your project.

Read on…click below on MWa’s STRAIGHT TALKING client advice articles:

1 Architects – Do you need one? Is your project suitable?

2 Your Brief: Wish List, Shopping List & Priorities List: Decide what you need, what you want and what you can spend – before finding your architect.

3 Your Architect – A Good Match: How to find the right architect.

4 Process: Strategy, Vision, Compliance, Detail & Delivery: How it all works 

5 Costs & Cashflow – 2018 Case Study: A recent renovation case study which shows you where the money goes and the cashflow from start to finish.

6 Time – How long will it take?: How to cut six months off a renovation time frame.

7 Fees – Myth vs Reality

8 Manage Costs, Save Money: 10 Ways to Manage Costs, 10 Ways to Save Money

8 MANAGE COSTS, SAVE MONEY: 10 Ways to Manage Costs & 10 Ways to Save Money On Your Residential Project

08 Manage Costs, Save Money: 10 Ways to Manage Costs & 10 Ways to Save Money

If you are about to build a new home or renovate, and you are cost conscious, the best way to save money on your project is to manage your costs.

It’s that simple.

Here are 10 ways to manage your costs to save money on your residential project, have it run smoothly and successfully and avoid the nightmare scenarios which seem so prevalent.

# 1 Do your homework at the start of your project, as follows:

Make an educated choice about which segment of the residential market suits you best.  ie: project home, design and construct, individual solution.  It’s not just about cost, it’s about time, complexity, energy, capacity, risk and how best to satisfy your desires and wishes.  Read more about this 01 Architects – Do you need one?

Fix an overall project “spend”.  Otherwise you are in the land of hope and promise.  Your decisions are not real until there is a cost. Read more about this 02 Brief – Wish List, Shopping List & Priorities List.

Prioritise your needs and wants. Read more about this 02 Brief – Wish List, Shopping List & Priorities List.

#2  Get the big picture right.  

The strategic design decisions you make at the beginning of your project will have the largest impact on your project costs, not fussing over the price of tiles towards the end of construction.  

The more strategic the decision, often the greatest impact on cost.  

Size and complexity of construction generally has an impact on building costs. A larger home will be more expensive than a smaller home.  Roof terraces, upper floor balconies and roof gardens can be fabulous but require expensive construction.  Excavation into rock to gain garaging / living space / outdoor levels is often feasible but expensive.  Exceeding the hard/soft ratio for site cover for stormwater may incur additional on-site stormwater infrastructure.  A pool and associated equipment including heating can easily cost $120K.

#  3  Do an OPC (Opinion of Probable Cost) with an architect and a consultant builder/QS at sketch design stage.  

If you don’t establish the overall project cost at the start of the project, then you can’t manage costs and make decisions accordingly to adjust costs, selections, methods and cost allocations.   

Waiting until the final tender process, or until you are building on-site to make changes, can waste time and money. ie: on processes such as additional approvals / Sec 96 modifications to a DA consent, changes to documentation including consultant documentation, changes on site to un-do or re-do work, delays in the smooth running of the project and program. Such changes are sometimes necessary for other reasons, but are not a an effective way to manage costs.

#4  Take out as many of the items that you can supply, out of the building contract, to save money on builder’s margin.

This strategy can deliver a substantial saving on your project.

On a construction contract of $1.2mil, supply items such as joinery, flooring, light fixtures and fittings, door hardware and a host of other possible items, depending on the particulars of the project.

However, but should be done in consultation with your architect and builder, to make sure it makes sense to do this. There are many items where its not appropriate and its essential that the builder is responsible for managing and overseeing the works. This includes their management, building quality and control, insurances etc.  Builders earn their margin for a reason.  

If this strategy is agreed upon, the building contract documentation and specification needs to reflect this arrangement, to cover items by owner, provisional sums and prime cost sums, and works excluded entirely from the building contract.

#5  Construction Costs & Project Costs: Know the Difference

A construction contract of $1.2mil can have a project cost of $1.6mil, when project costs such as consultant fees, statutory costs (council and utility authorities), items by owner, other works associated with the project but excluded from the works (for example, some repairs, fencing, landscaping etc) and costs to finish the project off property, like window coverings, essential furniture etc.

Other types of costs incurred by owners, not within the cost ballpark above, include finance costs and rental accommodation if required for the duration of the construction build.

These costs are all project specific but if you are cost conscious, these costs need to be identified and budgeted for at the beginning of the project to ensure the financial viability of the project.

#6  Do not save money by cutting out the architect and their fees.  

Saving on architects fees does not translate into a project cost saving.  In nearly all cases, it’s a false economy.  Read more about this #7 below and refer to 07 Fees: Myth vs Reality.

#7  Engage your architect to document your project fully.  

This is a sub set category related to #7.  

Ironically, its the biggest mistake made by cost-conscious clients.

Not documenting a project heightens the risk that costs will blow out during construction, due to lack of considered design, materials selection & documentation, lack of co-ordination, lack of forethought as to the real scope of building works required.

Once construction has started, there are fewer ways, if any, to make significant amendments to the design or pull out of the construction works.  Variations during construction are costly and will make your architect’s fees look like good value in hindsight.

It can easily cost $20K a week to have your builder on-site, so that the cost of any delays or mistakes on-site hugely outweigh the architects fees to plan ahead, co-ordinate and limit this risk.

Consider the following cliches: 

“Failing to Plan is Planning to Fail” and “Measure Twice, Cut Once”

 #8 Do a competitive tender.  

Refer to 06 Time – How Long Will It Take? And How to Take 6 Months off a Renovation Timeframe for why avoiding a competitive tender can save you TIME.  

However, if your objective is to SAVE MONEY, a competitive tender can be an advantage.  

And its not by selecting the cheapest tender.  It’s to test the approach and performance of your prospective builders, as a test run for their performance and attitude through construction.  Test their conduct, responsiveness, references, thoroughness, their knowledge of your job and site.  Create a small problem in during the tender process and see how they communicate with you.  

A good relationship with the right builder will save you money and stress during construction. 

Just like one of those TV Mastercard adds…”priceless”.

# 9.  KIS(S).  Keep it simple (stupid).  KIMM.  Keep it mostly modest.  

Why does it cost so much to build or renovate today? Why is housing affordability an issue for most of Australia?  

See more about this on the MWa blog: Housing Affordability and Your Renovation.

My observation is that affluence and expectations are contributing to our housing affordability crisis.  Australian’s are building the 2nd largest homes in the world, after the US.  Like walking past the buffet table, there’s so much choice and you can probably do with less.  Keep this in mind with all the choices you make along the building journey.

# 10.  Have a Contingency Sum set aside of at least 5% to 10%, and for complex alterations and additions 10% to 15%.

A contingency sum is an allowance set aside by the client, to provide for the unexpected.  There are nearly always items which come up  during building which were not anticipated or forseen, despite everyone’s best intentions.  There are also frequently additional scopes of work which clients choose to undertake which were optimistically omitted from the building scope, to lower costs, at the beginning of the project.

A contingency sum is a hedge and a buffer.  It lowers stress.  A suggestion straight from Kevin McCloud’s Grand Design’s Handbook, if you don’t spend your contingency during the build, spend it on new furniture or a great family holiday!

Another contingency worth considering is a time contingency, especially on the anticipated move in date at the end of construction.  Plan for a buffer of time and don’t make arrangements which are not flexible.  This single factor alleviates an enormous amount of client stress at the end of a project which is easy to avoid completely, if thought about before hand.

10 WAYS TO SAVE MONEY

Finally, here are 10 tips for making materials selections for your project that will save you money

(which should always be balanced against what you really need and expect in terms of quality and performance).

Download MWa’s 10 tips here.

Read on…click below on MWa’s STRAIGHT TALKING client advice articles:

1 Architects – Do you need one? Is your project suitable?

2 Your Brief: Wish List, Shopping List & Priorities List: Decide what you need, what you want and what you can spend – before finding your architect.

3 Your Architect – A Good Match: How to find the right architect.

4 Process: Strategy, Vision, Compliance, Detail & Delivery: How it all works 

5 Costs & Cashflow – 2018 Case Study: A recent renovation case study which shows you where the money goes and the cashflow from start to finish.

6 Time – How long will it take?: How to cut six months off a renovation time frame.

7 Fees – Myth vs Reality

8 Manage Costs, Save Money: 10 Ways to Manage Costs, 10 Ways to Save Money

TAILORED ARCHITECT SERVICES

Tailored Architect Services.

Having worked on hundreds of residential projects over the past 12 years, we recognise that all projects and clients are slightly different.

MWa  tailor our architect services to suit your needs, project and budget.

We offer our services with the following options:

1. 1. BASIC

0. 2. STANDARD

0. 3. PREMIUM

All MWa services are broken into 4 stages:

Stage 1 Sketch Design: Strategy and Good Decisions

Stage 2 Approvals: The Necessary Compliance

Stage 3 Documentation for Tender, Construction and Construction Certificate:  The Details and The Details

Stage 4: Services During Construction: Getting It Right On-Site and Getting What You’ve Paid For

All levels of MWa service provide what you need to progress your project, along with the best advice and the best design solution to possible, for your home, site and circumstances.

So, what are the differences then between BASIC, STANDARD and PREMIUM services?

WHAT TYPE OF SERVICE WILL SUIT MY PROJECT?

The type of MWa service that will suit your project will depend on many factors.

These including the type of design, type of construction, complexity and sensitivity of the approvals, the number of design consultants and specialist suppliers, the construction and financial risks, the overall budget, and client requirements including time to dedicate to the project, renovation & construction experience & expertise.

MWa BASIC service may be suitable for:

• a client who has renovated before, or works in the construction or building industry, who can bring their own know-how to the project
• a client who has adequate time resources to manage their project on an almost full time basis, and can be on-site during construction several times a week, if not daily
• a project with relatively standard residential construction, which does not require specialist construction design or detailing
• a project on a straight forward, low risk site (ie not heritage, flood, bushfire, geotechnical slip etc…)
• a project suitable for approval via the NSW Complying Development Code – so no DA is required
• a client who will manage their own tendering and building contract negotiation with a builder
• a client who will manage their relationship and logistics with the builder through construction, including the interior fit out ie: select and supply all the interior fixtures and fittings ie: kitchen, bathroom, robes etc
• a client who may be happy to proceed on a cost plus basis with a builder, with less documentation at the start, relying on the builder to work things out on-site
• a client who is not too concerned about the building costs, having some capacity for flexibility to deal with costs as they arise

The basic service delivers great layout and design for the client, and the minimum type of documentation so that the client can manage tendering, negotiating and signing a building contract, applying for a Complying Development Certificate with an Independent Certifier and manage the builder and all other aspects of the project through construction.

The type of minimum documentation for a MWa’s  BASIC service may include 1:100 architecturals, co-ordination with the structural engineer and stormwater engineer, an external window schedule and BASIX certificate, reflected ceiling plan/electrical layouts and an industry standard specification.

As a case study, MWa’s BASIC service may suit a retired couple with some construction management experience, who want a well designed and individual and thoughtful upper floor addition, with project budget around $350K.  The client will manage their own tender and work closely with a trusted builder to deliver the project.  The building contract is likely to be a Dept of Fair Trade / MBA or HIA residential building suitable for NSW.

MWa STANDARD  service may be suitable for:

• a client who works full time and requires professional services to assist and manage the project as it progresses (albeit the client still requires adequate time to dedicate to the project to fulfil their role an active client)
• a project with a reasonable degree of residential construction complexity and risk, which warrants thorough documentation and co-ordination with design consultants – ie: planner, heritage, arborist, landscape, structural, stormwater, geotechnical and co-ordination with sub contractors/suppliers ie: lift, pool, solar, hydronic heating, air conditioning etc
• a project with some complexity of residential construction and character, which requires construction design and detailing
• a project with some site risks ie steep site, drainage,  heritage, flood, bushfire, geotechnical slip etc
• a project where a DA is required to be lodged with the local Council for approval
• a project where the construction budget warrants full and complete documentation to seek competitive tenders on the basis of a fixed lump sum contract
• a project where the client wants to manage their costs and wants to know the full expenditure for construction and the overall project at tender,  BEFORE construction commences
• a project where the architectural and interiors and outdoor spaces are documented together, prior to tender
• a project which warrants the involvement of the architect during construction in a design management role, to work with the builder and client through construction to deliver what is designed and documented – although the client remains the main point of contract with the builder
• a client who may manage the financial aspects of the relationship with the builder and the building contract

MWa’s  STANDARD service delivers great layout and design for the client, full co-ordination of design consultants and specialist suppliers, through documentation for a competitive tender of the architectural and interiors components, and management services in getting to signing a building contract and obtaining a construction certificate.

The architect remains involved throughout construction providing design management services, including the delivery of the interiors and finishes, although it does not include any formal contract administration services.   The building contract is likely to be a Dept of Fair Trade / MBA or HIA residential building suitable for NSW.

As a case study, MWa’s STANDARD service may a professional couple with a family, with the renovation of their house within a heritage conservation area, which involves a rear addition, outdoor space and pool.  The design work includes all architectural and interiors including full joinery package, and a project construction of $1.2mill.  The client may live in the home throughout construction and see the builder on a daily basis, or have the capacity to dedicate at least one to two days a week to the project during construction.

MWa PREMIUM  service is a full traditional service provided by an architect, throughout all stages of design, approvals and construction.

The main difference between STANDARD and PREMIUM is the architect’s full contract administration services during construction, through to the end of the defects liability period.  The building contract is an Australian Building Industry Contract (ABIC) with Owner, Contractor and Architect;  a fixed lump sum contract with provisions for variations, retention, liquidated damages and defects liability period – amoung other features.

MWa  is responsible for all instructions to the builder on-site, assessing & certifying progress claims and variations (so that’s the financial aspects of the relationship with the builder) and all other aspects of the contract.  This service and contract provides the greatest level of consumer protection to the client of all NSW building contracts.  The service lowers the construction risk and financial exposure of the client to issues on site.

This services usually requires weekly or fortnightly site meetings with the builder, client and architect, as the design develops on-site through construction, and co-ordination by the architect continues with the design consultants and suppliers as needed.

Typically, the client is not living in the house during construction, and the project value and complexity warrants the professional involvement of the architect to deliver the results on-site.

Contract administration serviced during construction can suit any project budget size, but generally suit projects which are around $1mil +, involve architectural and interior services and busy clients who are relying on a full and integrated services of MWa to deliver the project.

The above categories of services are not absolute or fixed, and your project may suit a hybrid approach.  To find out more about how MWa can help you with your new home or renovation, book an on-site consultation on 0421 088 110. 

HOUSING AFFORDABILITY AND YOUR RENOVATION: Why does it cost so much to build / renovate?

Housing Affordability and Your Renovation: Why does it cost to much to build / renovate?

A quick scan of the google search results for “housing affordability” brings up the following headlines:

“Sydney house prices are almost 13 times higher than the median household income.”

“Australia’s 5 biggest cities have “severely unaffordable” housing markets.”

“The average Australian mortgage has cracked half a million dollars for the first time.”

“Australia is the 3rd least affordable housing market…”

Housing affordability is a complex and real issue and we don’t claim to have an thorough understanding or fix on this pressure.

However, there seems to be an elephant in the room when we come across policy discussion – which invariably centres around the supply of housing, “solutions” for the delivery of affordable housing initiatives, and financial incentives such as aid first home buyers.

No one mentions the fact that there has been a generational cultural shift in affluence and expectation, and this is perhaps an immeasurable, intangible and significant contributor to Australia’s current housing affordability crisis.

A 2017 report by Comm Sec on housing affordability provides the following information (quotes in italics)

Australia is building, on average, the 2nd largest homes in the world, trailing behind only the US in size of freestanding homes.

What is now expected was once luxury.

Our impression is that most people of my vintage (say over 40) are living in homes far larger than they grew up in.

Why is this an issue to include on our MWa blog?

The MWa straight talking advice for clients dedicates lot of our resources to the issue of project and construction costs.

All of our clients are focused on their finances and capacity to undertake a new build or renovation.

The choices our clients are making in regards to their brief and what is being built, it the result of cultural expectations.

And we constantly wonder ourselves, why does it cost to much to build / renovate in 2018?

Our observations are that residential building costs and therefore, housing affordability, are on the increase, not just due to inflation, labour costs and materials costs.  Other contributing factors are:

1. drastic changes in how we think about our homes since the 1940s (see points above)
2. population growth (ie in Sydney), rising property prices and demographics
3. the planning approvals and building regulation framework

1  changes in how we think about our homes since the 1940s, due to affluence and expectations

A typical post world war 2 home in Sydney was built in a time of both rapid suburban growth and during a time of austerity, where materials were in short supply.

A typical suburban home (ie Manly Vale Bush Home in Sydney’s northern beaches) was a three bed, one bathroom, 120sqm fibre shack with a brick foundations, timber structure clad in fibre with a tiled roof.  No garage, just a carport.  No swimming pool, just a large front and back yard on a 700sqm block of land. No large outdoor living area, just a front porch.  Small bedrooms, no built in robes or storage, one bayonet light fitting per bedroom, no powerpoints in the bathroom, no heating, no insulation. One small kitchen, one living room. 

Every older home MWa have renovated in the past 11 years, we have made the home bigger in nearly all ways, both in terms of size of the home (total area), numbers of room, types of room and functions within the home.

From the original 120sqm to the current 170sqm, the Manly Vale Bush Home is perfectly adequate for a family of six (no garage) and yet many homes we are renovating/builder are commonly 280sqm to 330sqm, including garaging.

The number of rooms is increasing including the number of:

bedrooms (ie: main bedroom, a bedroom for each child, a guest room or an au pair room, plus another room as a dedicated study for work from home) (note here: all main bedrooms have walk in robe space with an ensuite, all bedrooms have built in robes and sometimes desks, all bedrooms are large in comparison to the 1940s room sizes (sometimes not quite 3x3m)

bathrooms (ie: powder room, ensuite, family bathroom, sometimes guest bathroom or a bathroom for outdoor use with the pool) (sometimes we talk clients out of adding that 5th or 6th bathroom)

living rooms (ie: 2 living rooms, one new open planned living room plus a 2nd cosy TV room or a games room, one for the kids and one for the adults, and then an outdoor living room also with lounging and outdoor dining)

size and number of  kitchens (the size of kitchens in expanding and now often includes the front of house kitchen on display in the open planned living space plus the back of house – walk in pantry or butlers pantry, necessitating a doubling up of appliances – sometimes 2 sinks, 2 dishwashers, 2 ovens, 2 fridges, space for additional appliances such as microwaves/steam ovens/plate warmers/coffee machines/zip taps, space for wine and drinks storage with wine/bar fridges)

in addition to the indoor kitchen, there’s the outdoor kitchen – and these are also becoming so popular and so well equiped that they are full kitchens with sink, fridge, bbq, range hood, bar/drinks etc.

size of laundries & their storage is also increasing, with washers, dryers, ironing, storage space for the management of large families and the abundance of clothes we all have

facilities for housing the increasing number of cars – double garages, carports, plus the growing requirement for the amenity of internal access or at least covered access from the home to the car, when the garage is actually being used for cars and not for the storage of all the other household “stuff” – ie bikes, sporting equipment, luggage, gardening & pool equipment and overflow from the house

outdoor living spaces, large enough for the bbq and outdoor kitchen, outdoor dining space, sometimes big enough for outdoor lounging 

pools and pools with spas, including pool cover and heating

guest accommodation & bathroom, refer to number of bedrooms and bathrooms

secondary dwellings, as under the NSW planning legislation for Housing Affordability (aka the granny flat code), secondary dwellings of up to 60sqm can be built to co-exist with an existing residence on a single land title.

In addition to size, what is now expected was once luxury, in terms of the inclusion in our residences.

Consider this list of common inclusions in contemporary renovations and note that very few of these were available or commonly included in new typical suburban homes built in the 1940s, 50s and 60s:

• in floor heating
• heated towel rails
• frameless glass
• double basins
• larger bathrooms to fit the resort like bathrooms and freestanding baths
• walk in robes larger than most bedrooms
• built in joinery 
• number of powerpoints
• usb charging points included in power pointspoints
• ceiling fans
• air conditioning
• water tanks
• solar panels for hot water or generating electricity
• pools, spas, heaters, pumps
• double fridges or two fridges
• wine storage and wine/bar fridges
• internal access from garage (if you can past the stuff)
• multiple TVs
• home offices – computers essential, charging point
• separate homework spaces for kids
• newer and newer home automation gadgets
• feature fireplaces

2      population growth (ie in Sydney), rising property prices and demographics

Interestingly, as the potential for and the increasing popularity of secondary dwellings is due to housing affordability (or lack of affordability), it is also causing our suburban homes to become larger.  

As housing affordability stress is caused by population growth, rising land and house prices and demographics change, a large home or a secondary dwelling in Sydney enables families to share their residence with more people ie: multi generational guests/grandparents, au pair live in help, teenagers to young adults who stay at home longer, co-living with  young couples/young families, who can’t afford their own apartment or home.  

Our large homes are now working harder for us, being more fully utilised.   Australia’s residential density, in terms of number of people per dwelling, has started to increase, after decades on decreasing. 

3  the planning approvals and building regulation framework

The residential building industry is affected by increasing complexity of statutory planning approvals requirements and building regulation framework, which significantly impacts on construction costs and housing affordability.

These regulations were just not in place for past generations of home owners, a case of inter-generational inequity.

One hopes this increasing regulation is improving the minimum standards of our housing stock, however it is certainly increasing the costs.

Local council requirements for standard residential DA submissions can be in the ballpark of  $25K.  

Local council requirements to provide on-site stormwater infrastructure can be in the order of $5 to $30K.

BASIX requirements for energy and water conservation are worthy, should improve the comfort and reduce the ongoing operational costs of homes, as well as reducing the use of natural resources, however, they come at an increased building cost.

The cost of compliance with DA conditions of consent and building regulation compliance – imposed by Councils, National Construction Code, Building Regulations, Australian Standards, the insurance industry, and other factors such as awareness over bush fire prone land etc, is extraordinary in comparison to how things used to be.

These higher standards should be delivering greater public benefit and raising the average standard of Australian housing.  They are in some cases, but I’m skeptical about many.  But the cost of compliance is certainly rising and is a contributor to our housing affordability.

So when considering your home renovation or new build, and you wonder why  it cost so much to build / renovate in 2018, consider the possibility that doesn’t have to cost quite so much.  

Consider keeping things simple and more modest.  

A large home does not necessarily make you a happier person or a happier family.

A beautiful, considered and comfortable home can. 

A less stressful financial position probably will.

Make some hard decisions at the beginning of your project, and then enjoy the process and the benefits that flow.