Have a look at the internals of this house via a Virtual tour here. Hope you enjoy the experience.

For an extensive slope (greater than 2m), a design similar to our Boyne may be suitable (More on the Boyne a bit later). But for sites lesser than 2m of slope different ideas can be used. Most Volume builders will consider cutting the block to level the site. But this can cause unforeseen problems such as:

• Greater driveway slope. You will not enjoy the feeling similar to driving off the side of a mountain. As a client once mentioned, it’s like building a house in a hole.
• Massive retaining walls. Often Retaining walls are part of landscaping, so not the problem of the builder.
• No view from the house. The fence line would still follow the profile of the block, so you would have super high fencing around your block
• Drainage issues
• A house that will be difficult to resell, as what may not be obvious on plans is now built and right in front of you

A much better option would be to have stepped slab. The slab of the house follows the slope of the land. It gives you the benefit of much reduced site costs, at the same time giving you a design with a “WOW” factor.

Well we thought it was time to put our builder’s perspective on the so called “Housing Bubble”

First things first – what really is a Bubble? To our surprise, we couldn’t find an “official” definition. But our understanding is that a bubble occurs when house prices rise irrationally, backed by artificial demand. The supply then cannot keep pace, and the prices rise. In the current market this “artificial” demand is set to be based on speculative investments because of low interest rates, demand from overseas buyers etc.

The key problem here is that you can only definitively label it a bubble, after the “bubble” has been burst. In the words of JM Keynes: “Markets can remain irrational longer than you can remain solvent.” The alternative view is that this is part of a Boom cycle, and people left watching for a “bubble burst” are left facing never ending price rises.

The reason there is so much talk about price rises is that there has been an average 22% price rise in the Melbourne median prices in the last 3 years. According to the REIV, the median price in Metro Melbourne is $688,000, while the median price in the inner suburbs is $1,164,500

So back to the causes of this boom in demand. While the dramatic rise in overseas buyers and demand from investors are factors, other reasons for the price rise being mentioned is the lack of supply and planning regulations. Comparing our current market to the GFC and the sub-prime crisis, is a bit misleading. The sub-prime crisis was due to lack of regulation, where mortgages were offered to all and sundry, without deposits, and the ability to walk away from a mortgage if it became all too much. That definitely does not seem to be the case here in Melbourne.

The Bubble effect also promises a drastic decrease in prices if the “bubble” were to burst. That, to my knowledge, has never been the case in Melbourne. A gentle, but brief correction does occur from time to time. And also the type of investors being generally blamed, do often have the resources to out ride these corrections, and project a longer term view.

A quick glance through history may prove the point that the inner suburbs, or the “in demand” suburbs” would always have been unaffordable to all, except the top percentage of earners. This is the way it has always worked, and all over the world. Today’s fringe suburb, could be the “in-demand” location of the future, and what seems cheap now, will have been a bargain in a few years’ time.

So, are we calling it a Bubble or a Boom? Unfortunately we at InnoHomes are not qualified to call it either way. But our homes do not just meet our client’s financial needs, but also their physical, social and emotional requirements. Be comfortable in your purchase, if it ticks all these boxes.

The Ararat 45 Display Home by InnoHomes

The introduction is from Kathy Burgstahler of Kathy Burgstahler Real Estate.

Videography by John Chaillet

site costs

3) Site Costs

This is a favourite cause of frustration from all the feedback we have received so far. How do you account for site costs? In our books, there is no easy way to do it.

In simplistic terms there are two major variables that affect site costs – the slope on the site, and the effort required to reach stable soil. Engineers and builders could tackle these two variables from a wide range of approaches. They are the ones guaranteeing your product, so rule 1 is that they should be comfortable with the approach. Each approach would have its cost, and it may not be the same.

As a Builder, we often have access to engineering reports from new estate developers. These reports do give limited information that is useful for limited estimation of the site costs – slope, fill etc. But the only way to get the correct estimate is to do a comprehensive soil test and contour profile on each plot. For peace of mind it may be worth your while to spend a few hundred dollars on these reports, so that the builders can cost you accurately.

We have heard of some Builders offering fixed site costs without the soil test and contour report. In our opinion this is best described as hedging your bets – some you win some you don’t. Or in other words, the majority of customers are paying more to subsidise the minority who require expensive site works.

It is also very advisable to look at total costs. Over the years we have been exposed to many site works – other builders of Course , that make us scratch our heads (putting it mildly). One standout case involved completely cutting out a slope about 3 meters away from the road. The customer then ended up with a driveway 3 meters deep, and large costs for retaining walls (these retaining walls fell very conveniently into landscaping costs and are not normally part of the building contract). It is highly recommended that you discuss the approach that your builder is taking, and feel comfortable in all aspects of this approach.

4) Customisation

In the end all houses have a very similar theme- so many bedrooms, a kitchen, some living areas. What really sets yours apart is the customisation that you do to make it perfect for you. It may be as minor as colours, or as major as structural works. But in the longer term, without these customisations, your house would be a bigger compromise that it needs to be. So make sure the product or design that you shortlist ticks all the boxes you think is important. There are far too many people with regrets, when all it required was a clear head, at the beginning of the process.

And accept the fact that there are going to be variations – it is just human nature. It is impossible to think of everything right at the start. It may be an idea to consider working with a builder who does not consider a variation an opportunity to plunder the customer.

And do not hesitate to think outside the square. Will automation help your lifestyle? Is connectivity important? Is mobility going to be an issue? Thinking of these things may just help you enjoy your house that much longer.

Design your InnoHome

5) Profit Margins

A few clients have told us that they believe that all builders make at least 30% profit, and therefore there should be a lot of room for negotiation. Considering that there are over 2000 builders in Victoria alone, there is a possibility that this could be true for some, but not any that we have met.

Most builders would have 3 components to their price: X (Cost of Build) + Y (Overheads) + Z (Profit)

X is the total of materials and subcontractor charges, Y is where the payments for salaries, advertising, office overheads and the BMW’s come from. Z is generally the small profit margin that will ensure that the business will remain a viable business in the years to come (and support your warranty claims if any).

Larger builders are generally able to achieve a smaller X (volumes and buying power), but have a larger Y (more staff and costs). Smaller builders have a more efficient Y, but often pay out more in X. We have only heard of examples and case studies of Builders who give up on Z, just to generate work, but it often comes at a disastrous cost.

If any builder is able to generate a 30% profit, they are in a very lucky place. When this figure includes both Y & Z components, it starts making more sense – for certain builders.

We hope, that we have cleared up at least some points for you. Feel free to call us on 1300 722 703 if you need any of these points to be further detailed. And come visit us at the InnoHomes display home at 4 Clovelly Way, Officer, Vic. 3809 to see what this new approach to home building is all about.

1) Pricing the house on a per-square rate.

This strategy probably works best as a rough guide only. The two major cost elements into your house are the structural items and the inclusions. The inclusions are visible, so price comparisons can be fairly transparent and accurate. The structure not so much. Standard designs from major builders will have a very lean and efficient structure, to keep costs down to a minimum. Block on Block designs, single roof design, etc. all contribute. This is where custom designs may lose out on. To achieve the design modification that you consider perfect for yourself, we may have to include structural elements like Iron Beams, Complex truss designs etc. This cost is not easily visible to the customer, hence the price per square rate strategy may not apply.

2) Bait Pricing

This is a strategy used to attract customers by luring them with the thought that they will have to pay less for something that costs more. This is often achieved by stripping the house down to the bare minimum needed for an Occupancy Certificate. Although there may be customers who are looking to buy such a product, we haven’t come across very many.

Most builders will price their houses at this minimum, so that they don’t lose out in a basic comparison. If the customer gets it in their mind that the builder is too pricey, it is never a good start. Most builders will then have an inclusion list that the majority of their customers will be happy with. This is probably a better start for comparisons. Also it is very important to factor what is not included. An advertised special may list all the wonderful items that are included, but the bite most certainly is in the items that are not. We have had feedback stating the major cost factors to be in site costs, driveways, cooling, minor customisations, etc. We have also seen quotes from other builders also charging extra for construction costs (scaffolding and temporary fencing!!). The only way to then realistically know what your true costs are, is to get a comprehensive quote on the product. Naturally this is going to be time consuming for both you and the builder, so it makes sense to go through this process if you are interested in the product offering.

In our next blog we will go through a few more of these points, to try and clarify them for you. Feel free to call us on 1300 722 703 if you need any of these points to be further detailed. And come visit us at the InnoHomes display home at 4 Clovelly Way, Officer, Vic. 3809 to see what this new approach to home building is all about.

Concrete roof tiles have been used in various Australian cities for more than 75 years. Colorbond may be newer, but just as popular. However, there are some key differences which are worth considering when choosing one over the other.

Architectural Merit:
The concrete roof tiles have come a long way from being just a standard half-pipe tile.  While maintaining a traditional look, these tiles are available in a variety of colours. Colorbond has a modern stylish look with clean lines and are also available in a wide range of colours.

Noise:
Colorbond roof is not known for its sound proofing quality. Tile roofs are admittedly much quieter. While you can lay additional soundproofing to dampen the sound of rain and hail on a Colorbond roof, you cannot really get rid of the noise.

Weight:
Colorbond is much lighter than tile roof. Thus, your roof framing is much lighter; rafter spacing can be wider.

Resilience:
Colorbond is more resilient than concrete roof tiles.  So, in case you need to climb on the roof for maintenance work, be more careful on tile than on Colorbond.

Maintenance:
While there are reports that say Concrete tiles crack easier than Colorbond, it is almost always due to misuse. Also concrete tiles would be the preferred option if you wanted to modify portion of the roof later, for example installing a skylight.

Cost:
While concrete tiles are cheaper than Colorbond, the total costs depends on the roof design,  which includes the trusses, insulation etc. The total costs are normally not significantly different for each of them.

Siting:
Concrete tiles may be a better option in corrosive environments such as areas near the sea etc.

They are both excellent choices, and is truly determined more by personal preferences than any other criteria.

The steel reinforced raft slab is also commnly called an engineered slab. It consists of thick steel reinforced concrete slab integrated with steel reinforced concrete beams founded into the bearing soil for strength and support.

The classic approach is:

1. Trenches about 450mm wide x 450mm deep are dug around the perimeter of external walls and under load bearing walls
2. Reinforcement cages are laid in the trenches and reinforcement bars are also laid at this time, and turned up to pass above the top of the strip footing to accommodate later slab structure
3. Concrete mix is poured into the trench to ground level with vertical reinforcement bars protruding up to be formed with the floor slab
4. Moisture protection, termite protection, electrical conduit, drainage and sewerage pipes for bathrooms and kitchens are positioned
5. Formwork for the slab is then erected along the outer edges of the building footprint and on top of the cured concrete footings
6. Steel reinforcement is laid for the slab
7. Concrete is poured in one operation creating a slab that covers the entire floor area

Waffle Slabs

Waffle slabs are a reinforced concrete footing and slab system constructed on ground. They consist of a perimeter footing (edge beam) and a series of narrow internal beams (strip footings) at one metre nominal centres running each way. The whole footing and slab system is constructed on top of the ground.

The sides of the slab are made by edged Formwork, and polystyrene blocks (pods) create the formed voids between the strip footings. When viewed from underneath, the system of internal strip footings looks like a waffle – hence its called the Waffle Slab.

Waffle slabs achieve their strength by varying their height above ground. The higher the slab above ground – the deeper the beams. The deeper the beams – the more stiffness the system has.

It is InnoHomes’ preference to build on Engineered Raft Slabs. While Waffle Slabs may be cheaper to build in some circumstances, they do not work very well in:

• Soft ground conditions or where the soil can move.
• Sloping sites. In simplistic terms – there is only their weight stopping them from sliding down a hill.
• Cyclonic areas and high wind areas. High wind forces will engage enough of the waffle slab to resist the force but not without deflection of the slab. In very high Wind conditions it is possibe that the waffle slab will lift and the walls crack.

Also these are some considerations in our opinion, for preferring an engineered raft slab

1. If the ground around your house gets eroded or washed away, the area under a waffle slab is exposed. Exposed areas under the Waffle Slab can attract reptiles and other wildlife seeking Shelter.
2. Ground preparation must be immaculate and kept that way for the life of the slab, by the owner/resident of the House. Care must be taken not to overwater the ground near your house, build up the ground around your house, allow surface water to run towards your house (and under your house) or plant gardens next to your house, as this may all affect the slab.
3. Raft slabs are cast against the ground whereas waffle slabs are cast onto polystyrene void formers and strips of concrete. An overloaded raft slab is less likely to crack because it is cast onto the ground.

Diagrams used are from the RMIT website.

Subdividing land indubitably sells by itself. Obtain a block at just one value, subdivide the land and market the two (or more) lots in a hopefully much bigger selling price than you paid for the first block.  It is a great idea on paper, but there are several things which you need to take into account to help make everyone be a winner.  One matter that is certainly quite vital, whilst it seems simple, is that you wish to buy property that is in an attractive place. There’s not much economic sense in buying a block out in the course of nowhere, or which includes very little attractiveness for purchasers. It is a good idea to evaluate your decision, is my block more than enough area for anyone to invest in a subdivided residence? A helpful trick is to search about the region to view if there are lots of other sub-divided lots around and if you will find it, well it’s a sign that individuals are delighted to buy subdivided assets there.

Whilst on the subject of basic factors, it’s vital to acquire in a locality that is subdivision friendly regarding council laws and planning. Some councils are more development friendly than others.  A few of the trickier pitfalls contain making sure the subdivided loads will likely be in a position to hook up to water, sewerage, electrical energy and storm water drainage identical to any other typical block ; connecting these solutions may be problematic. It could possibly certainly be an excellent idea to consult a professional to resolve challenges just before they occur.  Should the house be very old, there may be heritage issues that hinder or halt the subdividing approach.

The absolute initial step in subdividing your residence is discovering the zoning. You are able to achieve this information and facts simply by contacting your friendly neighborhood council either personally or over the phone. The zoning or density codes ascertain the minimum amount and typical location for every dwelling, the utmost plot ratio, what share of household protection for every block, minimal and common setbacks, and the measurement of your courtyard area.  Once you’ve established the zoning, you are aware just what exact guidelines to work with. The planning acceptance would be the first step in subdividing your home, along with the acceptance system can normally take months longer whether it is incorrectly submitted.

The form and slope of the block also engage in a considerable function in the quantity of dwellings can be crafted with your home. Slope of your land has the identical effect, and sadly lots of 1st time owners are caught out by not having this encounter.  When blocks are now being marketed by real estate brokers, they also make no allowance for these characteristics that have big money impacts on your dreams.

Some items that boost the cost of building on a sub-divided plot are:

1)      Connection to Power
2)      The Drainage plan as approved
3)      Retaining wall system
4)      Access and traffic management costs

These costs reflect in a much higher than needed price per square on your property. So do work with a good builder in conjunction with a good town planner to ensure that not only will your dream units take shape, but do so within a reasonable budget.

InnoHomes has the expertise to advise and construct on subdivided blocks. Call us on 1300 722 703 for more details.

Indubitably, more and more family homes are being constructed with an elevator or are being renovated to include one.  One of the best reasons why it’s a pretty good option to install a home elevator is that because all of us will get old.  The staircase in our homes that used to be sufficient for going upstairs and downstairs would definitely start looking more of a burden.  Carrying groceries, for example, up and down the stairs is not only difficult for older people but is dangerous, too.

Now, it is important to identify what is the right choice of elevator for your convenience.

The industry has a relatively new elevator product called Machine Room-Less Elevators (MRL’s).

MRL is a result of technological advancements that usually permit relevant reduction in the size of electric motors with traction. These innovated permanent magnet motors allow manufacturers to place the machines in the hoist way overhead, hence it eliminates the need for a machine room over the hoist way.

Let’s look into the benefits of the MRL Elevator:

• Using an MRL Elevator can save energy, as compared to a hydraulic elevator.
• MRL’s power feeders are greatly reduced because of the efficient design and counter-balancing from the traction equipment.
• For many years, hydraulic elevators have undergone scrutiny with regards to environmental concerns due to its hydraulic cylinder. However, MRL Elevator is more environmental- friendly, since it is a traction elevator with no hydraulic fluid required.
• In our opinion, MRL elevators provide superior performance and ride quality as compared to hydraulic elevators, this is because of their gearless traction machine.

Here are some of the known advantages of MRL elevators over hydraulic elevators.

• more energy efficient
• has smaller power feed requirements
• its motor size is generally less than a hydraulic
• gearless ride quality
• has no hydraulic oil
• relatively quiet

MRL Elevators are highly recommended for residential projects. They’re the right choices for an innovated living. For someone who needs genuine mobility, convenience and efficiency, MRL elevators will surely be the right choice.

Although, MRL elevators may have a higher initial cost, they still score higher on the design and efficiency criteria. Any cost paid for an MRL elevator will be an owner’s investment, coupled with satisfaction.

InnoHomes Ararat 45 showcases one of the best home features: MRL elevator with pass through entry on all levels.  Our office is located at our Ararat 45 display home: 4 Clovelly Way Timbertop Estate Officer, VIC 3809.