BUY, FIX AND PROFIT FROM OLD HOUSES/APARTMENTS PRESENTED BY SAMUEL LEONG DIRECTOR, SL BUILDERS PTE LTD

Transcription

1 BUY, FIX AND PROFIT FROM OLD HOUSES/APARTMENTS PRESENTED BY SAMUEL LEONG DIRECTOR, SL BUILDERS PTE LTD 1

2 PRESENTATION TOPICS Budgeting different costs in a buy and fix project. How to avoid landmines when buying old apartments/houses Maximizing the value of your property with smart touch-ups 2

3 BUDGETING DIFFERENT COSTS IN A BUY AND FIX PROJECT 3

4 BUDGETING DIFFERENT COSTS IN A BUY AND FIX PROJECT LANDED HOUSING Tear down & rebuilt? (New Erection) Re-construct? Addition & Alteration? Renovation & Repair Work? 4

5 BUDGETING FOR LANDED HOUSING More varied costs involved. CONSULTANCY COSTS SUBMISSION COSTS UTILITIES COST FOR INCOMING & NEW ACCOUNT PRE-DESIGN COSTS CONSTRUCTION COSTS 5

6 CONSULTANCY COSTS Important to appoint a Qualified Person to design the project. To carry out the design of the premise, within approved guidelines. To submit the design to Authorities to attain the required approvals / permit. To administer the project during construction phase, ensuring that it is according to design. To be in attendance during TOP inspection, follow up on attainingtop & CSC. 6

7 CONSULTANCY consists of QP Architect QP Structural Quantity Surveyor M&E Engineer Others, such as Interior Designer, Landscape Consultants. Approximately 8-12% of Project Sum. 7

8 SUBMISSION COSTS Fees paid to various Government Authorities for Review & Approval of the Design & Construction of the Premise. Submission to URA, BCA, LTA, Nparks, etc. Any amendments to design after initial submission will be charged. Total fees approx. S$10,000/-. 8

9 UTILITIES APPLICATON COSTS Need to pay the various utility agencies to lay new incoming supply for their services. Price is dependent on length of new incoming work being affected. For eg., the costs for incoming supply from SP will be higher if a new OG box terminal is needed; or the distance required to tap from the nearest OG box terminal. SP, PUB, SINGTEL, OPEN NET, STARHUB. 9

10 PRE-DESIGN COSTS Need to purchase of information and carrying out site work to obtain the information required in order to proceed with the design of the premise by the QP. Purchase of Existing Plans. Purchase of General Interpretation Plans. Purchase of Road Interpretation Plans. Purchase of Sewer Interpretation Plans. Purchase of Drainage Interpretation Plans. Conduct of Soil Investigation & Report. Conduct Topographical Survey. 10

11 CONSTRUCTION COSTS PRELIMINARIES Insurances. Pre-Condition Survey of Neighbouring Premises & Common Areas. Land Survey & Setting Out. Underground Cable Detection. Pre & Post ConstructionCCTV Report for Sewer Line. Application& Monthly Charges for Utilities. Statutory Requirements (Noise Monitoring, Earth Control Measures,Safety Personnel & Provisions,Vector Control,etc.) 11

12 CONSTRUCTION COSTS PRELIMINARIES Approx. 6-8% of Construction Costs. 12

13 CONSTRUCTION COSTS STRUCTURAL WORKS Foundation With / Without Piling? Main Reinforced Concrete Structure. Metal Roof / Clay Roof or Reinforced Concrete Roof? Lift Shaft. Household Shelter. Swimming Pool. 13

14 CONSTRUCTION COSTS STRUCTURAL WORKS Approx % of Construction Costs 14

15 CONSTRUCTION COSTS ARCHITECTURAL FINISHES Floor Finishes MarbleTiles Mostly at 1 st Sty Living & Dining. HomogenousTiles Mostly at Wet Areas. Teak Flooring Mostly at Bedrooms,Common Areas. Installation rate for Marble is almost twice that for HomogenousTiles. Marble price varies a lot depending on source and quality. Marble installation also involves sealer application& polishing. 15

16 CONSTRUCTION COSTS ARCHITECTURAL Windows UPVC or Powder Coated Aluminium Windows. UPVC generally costs twice that of Aluminium Windows. The bigger the windows, the more costly the rate of the glass. Jumbo sized windows are referred to as more than 3.0m in sized. Required to use laminated tempered glass for fixed panels (safety barrier). 16

17 CONSTRUCTION COSTS ARCHITECTURAL Other Specifications that affect costs Types of Railing - Mild Steel Railing? - Stainless Steel Framed with Laminated Tempered Glass? (This costs more than twice that of mild steel railing). - Stainless steel raw material costs is very expensive and high wastage. 17

18 CONSTRUCTION COSTS ARCHITECTURAL Other Specifications that affect costs External Facade - Plastered & Paint - Spray Textured Finished? - Stone Cladding? - Aluminium / Timber Screen? ARCHITECTURAL FINISHES is approx. 35%-45% of Construction Costs. 18

19 CONSTRUCTION COSTS M&E INSTALLATION Electrical Works Plumbing & Sanitary Works Air-Conditioning Works *Always important for your Builder to engage a proper subcontractor for these works. M&E INSTALLATION is approx. 15%-18% of Construction Costs. 19

20 CONSTRUCTION COSTS EXTERNAL WORKS & SUNDRIES New Meter Box Auto Gate Widening of Entrance Soft landscaping works Approx. 3% to 5% of Construction Costs. 20

21 CONSTRUCTION COSTS PRIME COSTS Prime costs are allowance for costs provided for supply or installation of work that can be nominated by the Owner. Security & CCTV Marble &Tile Supply Purchase of Sanitary Wares & Light Fittings Cabinetry Works Lift Supplier, Swimming Pool Specialist, etc. Approx. 10% to 20% of Construction Costs. 21

22 BUDGETING DIFFERENT COSTS IN A BUY AND FIX PROJECT APARTMENTS Interior Design & Renovation 22

23 BUDGETING FOR APARTMENTS Interior Fitting Out Works Dependent on Age & Condition Repainting of Walls Rewiring of Electrical Works Replacement of Air-Con Change of CabinetryWorks. Replace,overlay, re-varnish of existing floor. Change of Sanitary Wares 23

24 BUDGETING COSTS IMPORTANT NOTES to PREVENT COSTS OVERRUN Always ENGAGE the correct PROFESSIONALS CHEAP always almost DOES NOT mean GOOD There are NO more Cheap Labour in Singapore Preferably Choose a BUILDER with their OWN WORKERS Any Interior Design, need to be Finalised before Final Drawings UNDERSTAND the DRAWINGS Try to AVOID CHANGES during CONSTRUCTION PHASE 24

25 HOW TO AVOID LANDMINES WHEN BUYING OLD APARTMENTS / HOUSES 25

26 HOW TO AVOID LANDMINES WHEN BUYING OLD APARTMENTS / HOUSES Important to KNOW before it is too LATE! Asbestos Roof & Other Asbestos Containing Materials Removal & Disposal of Asbestos, regulated by Government Common in old landed housing, usually at the back kitchen Have to engage Approved Asbestos Removal Contractor to dispose Penalty will be issued for unauthorised removal Quite Costly, depending on the quantity. From S$10,000/- onwards. 26

27 HOW TO AVOID LANDMINES WHEN BUYING OLD APARTMENTS / HOUSES RAILWAY PROTECTION ZONE Any development and building works within the RPZ is regulated by LTA Approval has to be sought by LTA Development & Building Control (DBC) on restricted activities within RPZ. Land within 40m from the Railway is within the RPZ Condition for development within the 1 st Reserve 6m from the Railway, is very stringent Will have restriction on piling works Works within second reserve and third reserve are less stringent. 27

28 HOW TO AVOID LANDMINES WHEN BUYING OLD APARTMENTS / HOUSES FAULTY ELECTRICALWIRING Need to always open up at the Electrical DB Box Be prepared to change the entire wiring works if no recent refurbishment works are done Try all the switches to check for any faulty wiring Be prepare to spend more if wiring works are concealed (hacking, replastering, painting) 28

29 HOW TO AVOID LANDMINES WHEN BUYING OLD APARTMENTS / HOUSES UNAUTHORISEDWORK Always request for original approved plans if possible Building should always set-back from Boundary Look out for unauthorised structure especially at Back Kitchen Unauthorised Mezzanine Floor above if room ceiling is unusually low 29

30 HOW TO AVOID LANDMINES WHEN BUYING OLD APARTMENTS / HOUSES WATER LEAKAGE & SEEPAGE Efflorescence caused by water seepage flow Always look out for patched up ceiling Look out dampness on walls (may indicate corroded water pipe inside) White stains on tiles, walls Efflorescence 30

31 MAXIMIZING THE VALUE OF YOUR PROPERTY WITH SMART TOUCH-UPS UPS 31

32 MAXIMIZING THE VALUE OF YOUR PROPERTY WITH SMART TOUCH-UPS UPS PUT IN A SOME $$, TO INCREASE YOUR VALUE BY $$$$ MUST DOs Painting Internal & External Walls Electrical Change the light fittings to LEDs, especially hard to reach places Parquet Flooring Sand Down and re-varnish Parquet Flooring Replace damaged parquet strips Marble Flooring Re-polish Cabinets Change Cabinetry doors,re-laminate 32

33 MAXIMIZING THE VALUE OF YOUR PROPERTY WITH SMART TOUCH-UPS UPS For LANDED HOUSING Look at touch-ups that improves the tranquillity to your property If your property is located near to any International School, you would need the following; Provide a Dry Kitchen A Swimming Pool Reticulation System, without need for balancing tank 33

34 MAXIMIZING THE VALUE OF YOUR PROPERTY WITH SMART TOUCH-UPS UPS For LANDED HOUSING Improve the landscaping Re-turfing, especially browned patches under any tree canopy Install Aluminium sunshade to block off direct sunlight and also improve look of facade Reduce split-levels for more Spacious look Create split-levels for more Intimate space 34

35 MAXIMIZING THE VALUE OF YOUR PROPERTY WITH SMART TOUCH-UPS UPS For LANDED HOUSING Replace Existing Roof ChangeTiles for External Areas Install Auto Gate 35

36 THERE ARE NO PERFECT BUILDERS ONLY RESPONSIBLE ONES or ALI-BABA ONES ALI-BABA a lingo commonly used in the Construction Industry to refer to companies / workers that does slipshod work 36

37 Thank You Samuel Leong

38 For A&A : 1. Total GFA cannot exceed 50% of existing 2. Total new structure works cannot exceed 50% of existing including construction of floor slabs 3. Total façade changes cannot exceed 50% of existing 4. URA plan fee $1605 For Reconstruction : 1. Any of above strike, will turn to reconstruction case 2. URA plan fee $ HS mostly require. Subject to SCDF s approval For New Erection: 1. URA $3, BCA $1, Nparks$1,605 to $2,500 38