November 21, 20223 yr Hi, My name is Richard. I am looking for a plot to build for my family (wife and 3 kids) I have a lot of experience in general construction, plumbing & electrics etc, so will be doing a lot of the work myself and bringing in trades where required. I am looking for a plot on the outskirts of London (outside m25), somewhere quiet with at least 0.6 or an acre of land. Looking to build a 4 bed timber framed house, ultra insulated & air tight (MVHR to ventilate). Anyway, Hello to all ! =D Richard
November 21, 20223 yr Author Hi and thanks.... What would you suggest as a suitable budget for the plot itself ?
November 21, 20223 yr 19 minutes ago, Asbestos said: What would you suggest as a suitable budget for the plot itself ? Think of a number, double it and add a bit more. many years ago building costs were roughly 1/3 plot, 1/3 build costs and 1/3 profit or saving, now the plot can cost way more than 1/2 the finished value
November 21, 20223 yr 23 minutes ago, Asbestos said: Hi and thanks.... What would you suggest as a suitable budget for the plot itself ? Plots less than half that size, with planning consent for circa 250m2, sell for circa £400/500k around here (South Hampshire) so I'd guess you'd be looking at double that, or more, unless it's located next to a sewage treatment works.
November 21, 20223 yr Author 11 minutes ago, NSS said: Plots less than half that size, with planning consent for circa 250m2, sell for circa £400/500k around here (South Hampshire) so I'd guess you'd be looking at double that, or more, unless it's located next to a sewage treatment works. What would be a completed value of a property that size ? I see plots listed on plot browser that start at around £700k then the get reduced and the reduced again.... Then they are looking for oieo £350k
November 21, 20223 yr Author 21 minutes ago, markc said: Think of a number, double it and add a bit more. many years ago building costs were roughly 1/3 plot, 1/3 build costs and 1/3 profit or saving, now the plot can cost way more than 1/2 the finished value Yeah, I would be basing my offer on the 1/3, 1/3, 1/3 rule. However, i might have to alter that !
November 21, 20223 yr You seem to have a good idea of values from studying sales. Try local auction catalogues too, for info , not for buying. Agricultural land in SE can be as low as £10,000/ acre. Rising a bit if any good. Suddenly becomes £1M or much more for housing. More for location, more for single plots, more if serviced.
November 22, 20223 yr 8 hours ago, Asbestos said: What would be a completed value of a property that size ? I see plots listed on plot browser that start at around £700k then the get reduced and the reduced again.... Then they are looking for oieo £350k Plots that get listed for sale on plot browser, or anywhere else for that matter, are usually either overpriced, in a poor location, have little prospect of gaining planning consent, or would be difficult (expensive) to build on. Some may even have a combination of all of those issues. And the finished value of a property of 250m2 can vary massively. It would be worth what someone is willing to pay for it.
November 22, 20223 yr I made offers on a few plots in the SE. All went for considerably more than I wanted to pay using the thirds guideline. One half acre plot went for £450k and I offered £250k and it wasn’t a great plot. This was also 9 years ago.
November 24, 20223 yr I looked at plots endlessly on plot finder etc before eventually settling for knock down and rebuild but I’m based in Dover and at the time ( less so now) you could get a detached on about 1/3 acre for about 300k.. These days I notice the small developers around tend to favour the infill plots, buying houses with large gardens and then splitting up the plot, renovate sell up and then build their own or in the opposite order of their cash flow allows.. Disadvantages are that plot size might be a little constrained and the neighbours can be rather annoyed and object to planning applications but usually this is surmountable.. especially if you are replacing a single dwelling with a single dwelling or maximum of two…services tend to cost far less… Deffo won’t get the 1/3rd ratios on plot cost:build cost and profit doing it that way.. our plot ( demolished house) cost just over 1/3rd of likely final value but we were able to live there for 5 years before demolishing and retained the large garage so not so bad I guess … build costs..that’s another story! Sounds like you have been looking for a while for a suitable plot..just outside the m25 might need some flexibility and compromise
November 25, 20223 yr Author What are the tax advantages for new build ? Zero rated vat ? Does that apply to a knock down and replace ?
November 25, 20223 yr 43 minutes ago, Asbestos said: What are the tax advantages for new build ? Zero rated vat ? Does that apply to a knock down and replace ? Yes, no VAT but you need to follow the rules quite carefully as a self builder.
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