how much can you save building 2 houses at once

IvoryTower

My brother and I are saving for our deposits, our dad owns a field beside their home and says we can have a plot there.

I was wondering if you could save much by building the 2 houses at the same time. Would it be worth waiting for both of us to be ready. Not sure yet but for example one person might have their deposit ready 6-12 months before the other? Both are paying rent as it stands

BryanF

That'll be an interesting visit to the bank followed by and interesting visit to the planning authority..

Is this rural? Is the land zoned for residential? Is there mains sewerage? Etc

Tefral

IvoryTower wrote: »

My brother and I are saving for our deposits, our dad owns a field beside their home and says we can have a plot there.

I was wondering if you could save much by building the 2 houses at the same time. Would it be worth waiting for both of us to be ready. Not sure yet but for example one person might have their deposit ready 6-12 months before the other? Both are paying rent as it stands

Honestly, you wont save a whole pile.

If your getting a design done and both houses are going to be the same then you will save money on design fees.

The builder might give you a percent or two off the preliminaries to get the job but overall the costs to build both will be the same as you wouldnt be dealing with premiums for small quantities in the first instance.

If one is gonna raise the deposit faster than the other and the other has to wait, what happens there? Is your brother for example gonna keep paying rent just because you cannot raise the deposit? Thats a cost there and also it will be highly unlikely that both houses even if started together would finish together so there is a rent cost there too..

IvoryTower

Okay assuming all that falls into place, do you think you could make a sizable saving from doing both at once? Architect has had a look at the field and will be speaking to local authority soon to get an idea of what can be done

IvoryTower

Tefral wrote: »

Honestly, you wont save a whole pile.

If your getting a design done and both houses are going to be the same then you will save money on design fees.

The builder might give you a percent or two off the preliminaries to get the job but overall the costs to build both will be the same as you wouldnt be dealing with premiums for small quantities in the first instance.

If one is gonna raise the deposit faster than the other and the other has to wait, what happens there? Is your brother for example gonna keep paying rent just because you cannot raise the deposit? Thats a cost there and also it will be highly unlikely that both houses even if started together would finish together so there is a rent cost there too..

Okay thanks man thats what i was wondering

Whatwicklow

There would certainly be a saving due to the builder only mobilising once-plant etc I can't see it as massive thou- few % off each trade (if everything is built in tandem that is)

IvoryTower

Whatwicklow wrote: »

There would certainly be a saving due to the builder only mobilising once-plant etc I can't see it as massive thou- few % off each trade (if everything is built in tandem that is)

Yeah the idea is for them to be similar style to the parents house across the road. thanks

Calahonda52

Take advice on how best to transfer the land from a CAT/CGT perspective.
In simple terms best transferred, in most cases, before PP is sought/granted

Gumbo

Unless they are both attached to each other I'd say the savings will be way way less than 10%.

Metric Tensor

Agree with kceire - less than 10% unless you find some way to share services such as:

Shared well - might be worth looking at - may count as a small group water scheme
Shared effluent treatment - not great but possible
Shared driveway - avoid in my opinion
Shared heating - good idea in theory - v difficult to implement right
Shared renewables - as above

Tefral

Metric Tensor wrote: »

Agree with kceire - less than 10% unless you find some way to share services such as:

Shared well - might be worth looking at - may count as a small group water scheme
Shared effluent treatment - not great but possible
Shared driveway - avoid in my opinion
Shared heating - good idea in theory - v difficult to implement right
Shared renewables - as above

All well and good until one of them sells. Problems will begin then. You may think you wont now but you've no idea what the future holds.

This tenant in property is always right "the day you buy is the day you sell"

Metric Tensor

I totally agree Tefral - hence my provisos on all of the above.

Possible but not ideal on all counts and not practical on most!

IvoryTower

Yep we wouldn't be sharing anything. Thanks for all the replies appreciate it

dellas1979

Calahonda52 wrote: »

Take advice on how best to transfer the land from a CAT/CGT perspective.
In simple terms best transferred, in most cases, before PP is sought/granted

Funnily enough, I had this conversation recently with solicitor.

They advised me NOT to transfer the land until PP is gotton, as why would you transfer a plot into your name you dont know you can get PP for. You can submit for PP and not own the land (youll need a letter from land owner at PP stage).

There is also a 1% stamp duty on value of the land from parent to child. And may be a CGT (capital gains tax) on the land owner. I was advised to get the auctioneer to value it as low as possible.

And FYI, most banks (at least ones Ive talked to) you dont need to pay a deposit, as the land is essentially the deposit.

And to be aware, the bank will only give you cost to build the house, and will expect you to use any savings. Ive calculated about 30-40k ex what the house will cost to build (thats what the mortgage will pay for-not architect or ESB or water or percolation etc).