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Pie chart showing breakdown of new build cost.

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  • 14-09-2021 6:50pm
    #1
    tom1ie
    Registered Users Posts: 10,036 ✭✭✭✭


    Hi all.

    Has anyone ever seen a pie chart that shows the breakdown of the cost of a new house in an estate?

    ie a chart showing what percentage goes towards:

    materials

    profit for builder

    land cost

    labour costs

    design costs

    utility costs for estates eg lighting/ sewage/ electricity etc

    insurance etc

    tax that goes to government.

    It would be interesting to see where the price of a new house goes



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    #2
    Victor
    Registered Users Posts: 78,241 ✭✭✭✭Victor


    1. Nobody analyses construction like that.
    2. Every project is different, sometimes profoundly.

    Land costs whatever the market demands and the developer is willing to pay. The tricks are to buy during a recession and to have low borrowing costs. There may be demolition and site clean up costs.

    Materials and labour costs will very much depend on layouts, specifications, amount of repetition and amount of subcontracting. While many developers will act like main contractors and buy materials and employ labour directly, they will also employ subcontractors. They will have no knowledge of the cost breakdown of pre-manufactured items like roof trusses or windows - they just know the bottom line on-site / installed price

    Design costs - on traditional, design team-led construction, the design team is likely to seek in the order of 15% total. As projects get bigger and more complicated, and more design disciplines are needed, that % doesn't necessarily increase. With housing estates there is a huge amount of repetition, which drives the % down. Do note however that the standard designs in a sales brochure may actually have several sub-designs.

    Utility costs for estates - this will very much depend on location. I understand that ESB Networks will absorb the first €7,000 of the cost of a new connection (they recover this cost through monthly standing charges). After that, the developer pays the full cost. If you build where there is no power supply, you end up paying through the nose.

    insurance - this is likely to be in the order of a few percent.

    Tax - this is meaningless, as there are different taxes. Depending on where you obtain materials and components from, those taxes will vary. Reduced rate VAT that applies to construction is 13.5%. Standard rate VAT that applies to many materials, certain fittings and design services is 23%. Then you have import duties, PRSI, income tax, etc.

    You are missing certain costs, e.g. development charges by councils.



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    #3
    Sofa King Great
    Registered Users Posts: 869 ✭✭✭Sofa King Great


    Try these guys https://mitchellmcdermott.com/insight/ they have a lot of research on build costs



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    #4
    tom1ie
    Registered Users Posts: 10,036 ✭✭✭✭tom1ie


    but we know what the average cost of an average 3 bed is for a new build in dublin for example, surely we know what the average breakdown of what the total cost of the house is spent on?

    a certain % must go to government in the form of taxes

    a certain % must go on materials.

    etc etc



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    #5
    cnocbui
    Registered Users Posts: 19,674 ✭✭✭✭cnocbui


    I seem to recall that VAT and couincil charges in Dub make up about 40%.



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    #6
    tom1ie
    Registered Users Posts: 10,036 ✭✭✭✭tom1ie


    https://www.boards.ie/discussion/comment/117891781#Comment_117891781

    That’s a very high amount.

    You would imagine with something as important as housing we would know what our money is being spent on.

    If we could see a historical pie chart from the 90s and compare it to now I wonder would the slices of the pie be the same?



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    #7
    mickdw
    Registered Users Posts: 23,260 ✭✭✭✭mickdw


    The percentage to government will be frightening if you consider all the taxes involved, directly and indirectly

    Very hard to quantify though. Considering stamp duty, tax on profits throughout all the trades and developer, council fees and levies, vat on the lot.



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    #8
    cnocbui
    Registered Users Posts: 19,674 ✭✭✭✭cnocbui


    https://www.boards.ie/discussion/comment/117891832#Comment_117891832

    Looks like I may have misremembered, it's about 16% - basically the same as the cost of the land: https://scsi.ie/society-of-chartered-surveyors-ireland-publish-new-cost-of-housing-report/

    This one says 20%: https://www.independent.ie/irish-news/future-proof/government-levies-now-make-up-20pc-of-the-cost-of-buying-a-new-house-31035345.html

    Not to mention the VAT on solicitor and engineer's fees.



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