S00136506 Joniyeh Dawood

S00136506 Joniyeh Dawood

CONTENTS
1.Outlining the Topic/ Introduction..Page 3
2.Discussion...Page 4-5
3.Plan..Page 6
4. Mathematics in everyday life..Page 7-8
5.CalculationsPage 9-14
6.Conclusion..Page 15
7. Reference ListPage 16
8. Appendix....Page 17-18

S00136506 Joniyeh Dawood

Topic: Buying an investment property and planning a budget to build a granny flat
Mathematics of the topic: multiplication, subtraction, addition, area, perimeter, percentages and
Pythagoras Theorem
Introduction
The focus of this cultural report is to find out which way would be a cheaper solution for a couple
who have recently bought a house in the Sydney district. Ronald and Martina are planning to get
married next year in early June 2015 and are confused whether or not they can afford the
repayments on the property they have bought. The couple will plan an idea of how to afford to pay
for the investment property by building a granny flat at the back of the house so the couple could
live in and rent out the house. Through this investigation students would be able to develop a
strong mathematical skill as they would be comparing the costs involved and using various types
of calculations to come to a conclusion of which plan would be beneficial for the couple to choose.
In addition, numerous researches will be conducted to support the topic for Ronald and Martinas
situation.
Findings/ Prices
According to Australian Property Monitors, the statistics reveal that Sydney has the highest rates
for purchasing a house compared to the other states in Australia (Australian Property Monitors,
2014). The median price for buying a house in Sydney as shown in the table is $753,168.

S00136506 Joniyeh Dawood

Houses
Median
price

Quarterly Yearly
change
change
Discussion

Sydney

$753,168 6.5%

14.4%

Ronald and Martina have just purchased a

house together in Sydneys West as an

Melbourn
$569,112 4.2%
e

8.9%

investment property in June 2014. The couple

had saved up $60,000 together for the deposit
towards the property. They needed to borrow a

Brisbane $449,644 1.0%

2.9%

further $500,000 from National Bank in order to

cover the costs of the property as the house

Adelaide $446,511 2.2%

3.1%

costed $560,000. Borrowing this amount of

money from the bank was not a problem to the

Perth

$555,600 -0.9%

-2.8%

couple as they both work full time and earn

close to $1700 a week between both and

Canberra $599,927 1.2%

8.2%

managed to save up a fair bit of money. They

are planning to get married next year in early

Gold
Coast

$317,678 1.6%

0.9%

June 2015 and are thinking of moving into their

investment property. The problems that they are
encountering are no rental income will be

National

$665,03
-1.6%
0

5.1%

coming from the tenants if they choose to move

in. The minimum repayments from National
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Bank on the loan is $2917 a month which turns out to be $729.25 a week ($2917 4=$ 729.25
as there is 4 weeks in a month (National Bank, 2014). This is on a 4.98 interest rate percentage,
which will be a long term loan of 25 years. The loan type is principal and interest.
The couple have come up with a solution that would resolve their financial issues of affording the
repayments comfortably. This bar graph showed the couple that Sydney has potential of further
growth, this is why the couple do not want to sell the house and instead thinking of building a
granny flat as the house has a large block of land which is 700m2.

The couple first need to see the regulations in their local council and restrictions for a granny flat.
The couple worked out the best result was to go through complying and development, which is a
quicker way for approval on their granny flat. To begin this they needed some sort of architectural
drawings. The couple approached a few architects and went through the proposed works. Scott
Carver architects came in at the cheapest price at $2500 including council fees (Scott Carver
Architecture and Design, 2014). With the plans given by the architect, the couple decided to
research online for certified builders for quotations to build the couples proposed granny flat. The
table below shows three different quotes from three different builders. The couple showed the
plans and specifications to the builders and that is how we got these quotes;
Granny Flats Australia Pty Ltd

$119 000

Rescon Builders

$103 999

Bellcast Granny Flats

$ 98 499

S00136506 Joniyeh Dawood

The couple went home and discussed these quotations amongst each other and came to a
conclusion that these prices were way

Plan:

above budget. Ronald thought building a

granny flat on his own would be a major
saving as he is already in the construction
industry. The couple decided their budget to
spend on the granny flat was $95,000.00.
Ronald inherited some money from his

55 m

grandfather so they
do not need to borrow
5.500mm
money from the bank. The

Ronald and Martinas Budget

Trades
Architect
Concreter

Estimated Price
$2,600.00

10.000mm

$4,500.00

Carpenter

$26,500.00

Brick Layer

$7000.00

Roofer

$8000.00

Electrician

$2000.00

Plumber

$3000.00

Plasterer

$14,500.00

Painter

$1,200.00

Tiler

$3,500.00

Kitchen

$15,000.00

Total:

$87,800.00

couple now need to work

out the trades involved to
build the granny flat and
budget;

2750mm
6
2400mm

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The use of the mathematics in the topic in everyday life

In everyday life situations the application of mathematics can help students develop a range of
skills such as problem solving skills, how to communicate with mathematics and most importantly
to reason mathematically (Haylock, 2010). In this cultural report, it became evident that building a
granny flat allows you to apply all sorts of mathematics. Haylock stated that is it essential that
children understand how to collect data (Haylock, 2010, p.344). However, builders collect data by
using graphs, tables, diagrams and also timelines to compare prices, keeping a note of all the
expenses involved in building, and the use of measurements. The mathematics that is involved in
relation to this cultural report consists of the following:

Finding the area of the granny flat (length x width which is calculated in m2)
The use of subtraction, addition, multiplication and division as it helps the individual

understand how to calculate all the mathematics involved.

What is the best bank loan to choose for borrowing money to build
The calculation involved to calculate angles e.g. 90 degrees (trigonometry)
Finding the volume (L x W x TH = Volume)

It is important to know these mathematical principles to be able to do everyday things like

calculate the cost of building a granny flat. Building a granny flat requires an individual to think
about the cost of labour involved, construction materials, rental equipment and making decisions
which will maximize the profit. Pricing the granny flat requires the ability to estimate potential costs
and determine an appropriate price for the final job (Math Playground, 2014). Hence, this is why a
budget sheet was prepared by the couple in order to estimate the prices and then compare to
each quote given.
When borrowing money from the bank, an understanding of interest rates and compound interest
will help an individual get the best loan. A builder must also be able to analyze data and assess
the housing market in order to determine if a project will produce a profit or not. Trigonometry is
very important in technical subjects like mathematics, science, engineering, architecture, and even
medicine. An individual studying these subjects will always come across learning about
trigonometry. In order to build a granny flat it is essential for a builder to know how to find the area
and perimeter of any figure this is because a house or any type of building has interesting designs
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which are combinations of shapes (Math Playground, 2014).
As seen in the cultural report, knowing the area of the granny flat helps the builder calculate the
amount of paint needed for the each wall or the number of tiles. Knowing the perimeter is
important as it allows the builder to understand how to add all the costs involved (for example a
plasterer would add up the walls plus the ceiling to calculate how much it would cost to buy the
plaster.
In order to build a solid granny flat design it is important to have a suitable foundation. A simple
foundation is a rectangular prism made of concrete. In order to decide how much concrete is
needed to build a granny flat, it is important to calculate the volume of that prism. That means it is
essential that a builder knows the area of the first floor and the height of the foundation. Volume is
the area times the height. If the measurements were in feet, then the volume would be cubic feet
(Math Playground, 2014). It is also important to budget for the costs of building as it allows you to
calculate all the costs involved and what type of budget you can afford to build a granny flat.

S00136506 Joniyeh Dawood

Calculations
Concrete is measured in volume (m3) this is because it is like a 3D rectangular prism. The
concrete covers the whole area of the granny flat, the concrete is 200mm thick.
Volume = L x W x TH
= 10.000 X 5500 x 0.200
= 11m3
The couple shopped around and found that $335.00 was the cheapest m3 price they found,
So:

= Price x m3
= 335 x 11

Total = $3,685.00
The couple originally estimated that the concrete would cost around $4,500.00 but fell under this
price
($4,500.00 - $3685.00 = $815.00) under budget.
CARPENTRY
The council wants to keep the overall height below 5.3m from ground level to highest point of roof.
The couple found the cheapest price for a carpenter; he charged $190 per square metre for walls
and $200 per square metre for the roof.
W1 & W2 = 10.000 x 2.400 = 24 m
=24 x 2 walls
= 48 m
W3 & W4 = 5.500 X 2.400 = 13.2

= 13.2 x 2 walls
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S00136506 Joniyeh Dawood

= 26.4m2
Therefore, 48m2 plus 26.4m2 = 74.4 say 75 m2. So, 190 x 75 = $14 250
ROOF
To work out roof square metres, we needed to find x.
X = 5500 divided by 2
= 2750
2750 divided by cos degrees
2750 divided by cos 45
= 3889
Total square metres for roof = 10 metres x 3.889
= 38.8m2
= 38.8 x 2 sides
= 77.6 m2 say 78m2
Total roof area = 78m2
Roof cost = $200 x total m2
= $200 x 78
= $15 600
Total Carpentry = $15, 600 + $14 250
= $29 850
Total Height

275 0238892
= 2.749.8
= 2750
Total height of granny flat = 2400mm + 2750mm
= 5150mm
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BRICKLAYER

76mm

110mm
230mm

The couple researched 48.5 bricks are needed per square metre. We already know our walls
come to a total of 76m2.
It is obvious that bricks are not needed for the windows and doors. So 76m 2 the front window
and door.
Door = 2040 x 820 1.6 m2
Window = 1800 x 1200 = 21m2
Total = 3.7m2
So, 76m2 3.7m2 = 72.3m2 of brickwork needed.
So 72.3m2 x 48.5 bricks = 3516 bricks
Bricklayers normally allow 5% waste margin to total.
3516 x 0.05% = 175.8
= 176
= 176 + 3516
Total bricks = 3692
The couple chose to buy red bricks for the granny flat that cost $956.60 per 1000 bricks. A
bricklayer charges 95 cents per brick to lay.
Total brick cost = $956.60 x 3692 bricks
= Total cost of bricks
= $3530
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Labour cost for bricks

3692 bricks x 0.95 cents
= $3,507.40
Total bricklayer cost
$3530 + $3507.40
= $7037.40
ROOFER
The couple researched a few roofers and got three quotes from the following;
Name of company

Price

Black Cat Roofing

$107 per m2

Competent roofers

$160 per m2

Complete roofing

$145 per m2

The couple chose to go with Black Cat Roofing because they were the cheapest upon
Competent Roofers and Complete Roofers.
Roofer = total roof area x price per m2
= 78 m2 x $107
= $8,346.00
ELECTRICIAN
Ronalds friend is an electrician so he has offered to charge the couple $40 per down light and
$50 per power point.
12 down lights
So, $40 X 12 = $480.00
6 power points
$50 x 6 power points = $300
Electrician total
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$480 + $300 = $780
PLUMBER
Ronalds friend quoted $3,300.00 which was a set quote including one bathroom. The couple
originally estimated that the plumbing would cost around $3,000.00. However, the price of the
plumber went over budget by $300. The couple agreed to go ahead with this plumber even though
it was $300 over budget.
PLASTERER
Plasterer charged $125 per m2.
Wall = 74mL

74mL x $125 = $9,250.00

Ceiling:

5500

Ceiling = 10.000 x 5.500 = 55m2

$125 x 55m2 = $6,875.00
Total: walls + ceiling
= 9250 + 6875
= $16,125.00

PAINTER
Ronald decided to paint the walls and ceiling himself to save the extra money (costs).
He worked out by reading the can of paint that 4 litres of paint will do 25m 2. So the total area of
walls plus ceiling needing paint;
Walls = 74 m2
Ceiling = 55 m2
Total = 129 m2
So Ronald worked out (129m2 25m2 = 5.16)
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5.16 tins of 4 litre drums
Ronald needs 5 tins of 4 litres but is still going to be a little short on paint. So he decided to buy a
1-litre tin for the remainder. So total of tins needed is 5, 4 litre tins.
A 4 litre tin = $68.90 x 5 = $344.50
1 litre x $22 = $22
Ronald will need to spend a total of $366.50 to paint the whole house including the walls and
ceilings.
TILER
A tiler charged $40 per m2 labour costs. So 55m2 x $40 = $2,200.00.
Ronald and Martina went to an auction for tiles to save more on budget. They found $26m 2 for tiles
at the auction.
26m2 x 55 = $1,430.00
Total tiling costs = tiles + labour
= $1430 + $2200
= $3,630.00
KITCHEN
Ronald and Martina found a kitchen on special at Ikea down from $9775 to $8610 so that is a total
saving of $1165. Ronald will install the kitchen.

Trades

Ronald and Martinas New Budget Sheet

Prices
New Prices
Over Budget

Under Budget

Architecture

$2,600.00

$2,500.00

$100.00

Concreter

$4,500.00

$3,685.00

$815.00

Carpenter

$26,500.00

$29,850.00

Bricklayer

$7,000.00

$6,883.50

Roofer

$8,000.00

$8,346.00

Electrician

$2,000.00

$780.00

Plumber

$3,000.00

$3,250.00

$3,350.00
$116.50
$346.00
$1,220.00
$250.00

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Plasterer

$14,500.00

$16,125.00

Painter

$1,200.00

$366.50

Tiler

$3,500.00

$3,630.00

Kitchen

$15,000.00

$8,610.00

Total:

$87,800.00

$84,026.00

$1,625.00
$833.50
$130.00
$6,390.00

$5,701.00

$9,475.00

Conclusion
Martina and Ronald originally wanted to spend a maximum of $95,000.00 on the granny flat.
However, their estimated prices came to a total of $87,800.00 and the new prices after the
quotations came to $84,026.00. This is a total saving of $3,774.00. This is because ($87,800 $84,026 = $3,774).
The mathematics that was involved in this cultural report is highly beneficial to everyday life as
students will develop problem solving skills, how to communicate with mathematics and most
importantly to reason mathematically when working out solutions. Students will learn a range of
mathematics such as division, subtraction, multiplication, percentage, calculate area, addition and
most importantly understanding trigonometry. As seen in this cultural report there are always
solutions to work around affording a property, just like Ronald and Martinas solution of building a
granny flat to afford the repayments on the house.

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Reference List
Australian Property Monitors. (2014). Housing Market Report. Retrieved August 12, 2014, from
http://www.domain.com.au/content/files/apm/reports/ap1400103_housingmarketreport_jan_apm.pdf
Haylock, D. (2010). Mathematics explained for primary teachers (4th ed.). London: Sage
Publications.
Math Playground. (2014). Area and Perimeter. Retrieved August 17, 2014,
from http://www.mathplayground.com/MathApprentice/contractor.html
National Bank. (2014). Loan Repayments Calculator. Retrieved August 17, 2014, from
http://www.nab.com.au/personal/loans/home-loans/loan-calculators/loan-repayments-calculator
Scott Carver Architecture and Design. (2014). Architecture Services. Retrieved August 17, 2014, from
http://www.scottcarver.com.au

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Appendix

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