Is it really worth it?

Stampman

Hi all. We have a small mid-terraced single storey cottage in Blackrock, Dublin, built 1900s, currently 62 sq m. We are looking to demolish the rear 22 sq m (which was added in the 1960s), rebuild about 32 sq m, and totally refurb the original 40 sq m. All new wiring, plumbing, insulation, roof, underfloor heating, flooring, bi-fold doors at rear, etc., but nothing too snazzy. There's a lane at the back so there is rear access for a small digger. The quote from our builder is currently coming in at €209k ex-VAT (so €237k incl-VAT) and then there's the architect fees / engineer / planning contribution / kitchen / etc. which would all add up to over €50k. While I know building costs have sky-rocketed in the last few years, I also know demand for construction services has dipped since July, so my simple question is, is it really worth it for us to spend about €290k on this now??? Thanks

DOCARCH

Seems high even in the current climate. You appear just to have one quote? If that is the case, get two more.

fliball123

https://www.boards.ie/discussion/2058261351/is-it-really-worth-it

He is taking you for a ride I think lads building extensions see the end of the line with regards to these kind of projects. People just cant afford them so for the foreseeable future only people that badly need the work done and those who are mega rich will be in their market. They are currently extracting as much as they can from people like yourself. You would be mad to pay that money it shouldn't even be half that amount. I had an extension completed in May of this year in effect it 2 bedroom, 1 kitchen 1 bathroom, utility room and a sitting room, and a hall and the size was 100 sq meters for what your being quoted. Your in Blackrock he probably sees you as a walking Euro sign

society4

https://www.boards.ie/discussion/comment/119555330#Comment_119555330

What did you decide to do? Did you get any other quotes …290k is a lot !!

fliball123

https://www.boards.ie/discussion/comment/119590568#Comment_119590568

Yeah I would be interesting finding out as well as anyone getting work done now with record high prices for materials, energy and an expectation of wages in the construction industry to rise due to inflation and now the upping of interest rates could not be picking a more expensive time to build. I think we will see prices come down big time in about 12 to 24 months, people in the main cannot afford it.

houseyhouse

https://www.boards.ie/discussion/comment/119590588#Comment_119590588

What makes you think prices will come down? We are looking to do an extension next year and would only love if prices went down but I don’t see any reason they would. I don’t see raw materials going down much and I don’t think labour will drop given the cost of living increases.

society4

I agree, I don’t see pieces of materials dropping but I can see on the ground less skips/vans doing renovations around the area..there is a fall off on people getting works done at the moment and that must have an impact on supply/demand costs.

Borzoi

https://www.boards.ie/discussion/comment/119602390#Comment_119602390

I'm in construction, material prices continue to rise. labour cost too, due to scarity of skills and demands for increases due to cost of living.

to the OP - get at least one more quote or have a QS review.

Have you considered knocking the existing house, you could probably rebuild better and cheaper.

fliball123

https://www.boards.ie/discussion/comment/119602369#Comment_119602369

Well people simply cannot afford the prices so either they come down or builders will be going out of businesses only people who are mega rich and projects that are a necessity will be done. Vanity projects will not be done. We are going hit an absolutely horrible recession, so big ticket items like extensions will be one of the first things crossed off the list. Everything has gone up due to the supply chain issues and energy crisis due to the war. If both of these issues clear up prices will drop. I put off my own extension was supposed to start in May and dont need it as its vanity so will put it off for 12/18 even 24 months until we have more builders in the market and costs coming down with the Russian war over (hopefully) and the covid supply issues a thing of the past.

houseyhouse

https://www.boards.ie/discussion/comment/119606674#Comment_119606674

I hope you’re right. Our house is just too small for us but nothing suitable is for sale in the area. There are just no good options at the moment.

eusap

you should look back at some of the earlier episodes of room to improve on the RTE player, it is amazing what some people got done in 2012-2015 for 50-60K. Yes it doesn't include big ticket items like heat pumps/insulation etc.... but the value for money they got is crazy in todays terms

fliball123

https://www.boards.ie/discussion/comment/119607406#Comment_119607406

That is changing supply is starting to ramp up for sale on the likes of myhome and daft add in the interest rates increase and there is talk of another .75% increase before the end of the year the likelihood is we will see our youth emigrating again to the likes of Oz, Canada and US as property prices have dropped in those countries. Ireland will see a correction in the next 12 to 24 months as supply increases and demand decreases. You just have to hold tight I get the feeling builders are holding on for the last drop juice out of the current paradigm but we will be in a recession by the end of the year. What will be apparent is tradesmen will have to take less of a profit or hit the wall. Prices for raw materials and energy will have to come down its impossible that they will stay at this level and it can already been seen in the global construction slowdown including Ireland.