The big question when it comes to building a new home is “how much does it cost to build a house?” Formulating a smart, effective budget for your new home is an absolute must. It is important to consider that building a house is not cheap, and there are several things that will add up. There are many different variables you should consider before writing up your budget. For instance, the cost of the land on which you are building, or even whether you are wanting a single storey or double storey home. Also factor in whether you would like any modifications to the original floor plan or design, as changes often cost more.
It’s also important to create a budget which factors in getting a home loan. But also, some leeway on top of that if you need to borrow more that you originally planned for. For this, do your research and contact industry professionals to inform all your decision making when asking how much it costs to build a home.
Best Value
Figure out precisely what you want your house to be. Naturally, the bigger the home and the land you’re building on, the more expensive it’s going to be. What you will need to factor into your budget comes down to value – what you can get for your money, and what’s going to work best for you and your family.
Generally, double storey homes will cost approximately $50,000 more expensive than single storey homes, but this always depends on the specific circumstance. Could you potentially save that money with a smaller lot?
Your budget should reflect your wants, needs, but also the value of everything. By preparing a “value proposition” you are evaluating and analysing overall benefits, costs and overall worth of the home you’re planning for. It is also worth thinking about your home’s value in years to come. As it may become appealing to potential buyers down the line.
Build Costs
Building a home can feel like it comes with a lot of grey area within your budget. Most homes that are quoted on builder websites, or on the iBuildNew website are base rates. This means that they only include a limited amount of features. The thing about this is these features included in the base rate are not standard and vary builder to builder.
In order to get a true indication of what is and isn’t going to be included in the base rate you will need to get a quote from your chosen builder, or from a range of builders to compare.
Additional inclusions can add up out of sight, sometimes adding 100k+ (depending on what you get) to the base price.
Other common things or more “hidden costs” you will need to budget for include:
Landscaping (plants, pavement, paths, any walls erected) $10,000 – $30,000
Fences and gates – $2,000 – $4,000
Driveways and paths – $2,000 – $4,000
Excluded Building Costs
Some costs may not be included, but may be added into your quotation if they are deemed necessary by the builder. These may include:
- Engineering fees
- Drafting fees
- On-site connection to services
- Removal of rock and/or soil
- Removal of trees
- Another additional council requirements
Home Loans
Among the most important things on your budget list is factoring in home loans. It is important to fully understand and consider some important things before you apply for a home loan.
Before you apply for one, you will need to ensure all your finances are in order. Remember to factor in costs, which may include stamp duty, legal fees, any insurance, land and water rates, and so forth, as well as rent or housing costs while your home is under construction. These costs will help determine whether or not you can afford a home loan.
Your Next Step
We understand that applying for a home loan is a major financial decision. You shouldn’t look to rush into any decision making. Shop around, look into all your options and review your budget to make sure you’re not making any oversights or poor judgement calls
If you are still uncertain about planning out the budget for your home, then don’t hesitate on contacting one of our home building experts on 1800 184 284. They are independent and highly motivated to help map out your ideal budget and ensure you get results. You can also book a call online.
Having trouble understanding how to finance? Download our FREE guide today to get a comprehensive overview of what you should expect and prepare for.
Let us do the legwork for you.
- We’ll ask the right questions to better understand your needs
- We’ll create a recommended shortlist ideally matched to you
- We’ll answer specific questions or concerns related to home building, land purchasing or financing
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