Build v. Buy Paradox

donardyankee

Can someone please explain this paradox to me. The costs quoted here for build/extension (Nothing lower than ~1000 sqm to builder's finish, excl site, excl prof fees, excl connections, etc.) how in the world does this reconcile for what you can buy second hand? We're talking a build price of ~140,000 to ~150,000 for a 100 sqm house (outside of Dublin). But if you go on Daft or MyHome you can find hundreds of recent builds all across the country that would come in at ~1000 sqm TURNKEY (outside of Dublin). Are all of the people selling these houses just taking a huge hit or are builders just taking a massive profit on self-builds? Why does anyone build when they could get so much more buying?

BryanF

Put up an example

donardyankee

It won't let me post links because I'm new but I found all these as finished, newish builds (last 10-15 years)

Kerry - 2000 sqft, 199,000

Cavan - 2400 sqft 220,000

Donegal - 1755 sqft, 110,000

Galway - 1700 sq ft, 125,000

Galway 2000 sq ft, 135,000

Mayo 2420 sq ft, 140,000

Mayo 3000 sq ft, 175,000

Limerick, 1445 sq ft, 145,000

Galway 1500 sq ft, 150,000

Cavan 2000 sq ft, 149,000

Mayo 3000 sq ft, 175,000

Tipperary 6 bd (> 2000 sq ft) 200,000

And on and on and on (I don't want to spend all day going through Daft - but look pretty much anywhere outside the metro areas and you'll find plenty). Are all of these sellers just taking like 20, 30 or 50% hits on their build costs?

overshoot

donardyankee wrote: »

Why does anyone build when they could get so much more buying?

it is cheaper to buy than build but "much more" depends on your definition. Part L regs, (heating insulation etc) jumped massively in 2011. The thermal comfort, lower drafts and running costs of a house completed under these regs is far beyond anything built 'to regulations' before that. Anything under new regs will be A rated.

On the price fluctuations around the country, It's simply a case of supply and demand. Which obviously affects the wage/profit a builder can take.

fits

We would happily buy but the truth is that most new houses available around here are badly designed, badly built and too large. Older houses are normally fridges and again poorly designed and would require a large investment to bring them up to standard.

kieran.

There is very little U] suitable [/U]to buy in rural areas. 4 bed houses built in the last 10-20 years in walk in condition are €1200/m2 + in areas local to me and that would be for generic/poor of the peg design with basic build quality aswell.