COVID-19 UPDATE: Builders remain open, and iBuildNew's independent experts are available to guide you through your home-building journey. Find out more Close

How To Mitigate Hidden Costs Of Building A House

The building process is an exciting stage and the time to see your plans come to fulfilment. However, unforeseen costs can begin to build up from aspects that may have been overlooked or easily forgotten. In addition to the costs of construction, the hidden costs of building a house can heavily impact your budget and future payments to secure your property. We have gathered some tips to help you maintain your costs and keep track of them:

Organization Skills
During the initial planning, don’t rush through the choices and make sure to immediately address any improvisations to escape the hidden costs when building your house. For a successful project, every aspect should be confirmed before meeting or making arrangements with the builder. It is helpful to take the time and research which builder best suits your property preferences. This is to ensure they are able to accurately price all the features of the project when handing over your plans. Consequently, you are able to establish a limit with your budget away from unanticipated costs.

hidden costs of building a house

Sort It All Out
From the start, it is important to have a clear decision and to make sure that there aren’t any elements that have been left unplanned. Although it may be tempting to choose as you go, rearranging ideas and making sudden changes when the construction has already begun could quickly lead a costly outcome. The layout and design for the property must be carefully considered to keep away from expensive bills and beginning again from square one. A volume builder, architects or independent contractors may offer a package price but remember that this might only include standard inclusions. If buyers proceed to add upgrades for both house and land, this may result in a massive increase in the total budget.

Setting The Scene
In order for the construction to be carried out, the builder will have to prepare the site and is also responsible for checking that the worksite is in line with the correct safety procedures. There may be more hidden costs from building a house due to the need for safety fencing, permits, projects facilities and more fees that may arise. The completion of these processes will vary for each property but should take around two to four weeks. It would be a good idea for buyers to have a plan ready in case of any delays and to regularly keep in contact with their builders.

New house under construction

Total Expenses
Apart from paying the contract price provided by the builder, there may be other hidden costs when building a house such as prime cost and provisional sums. Despite both being allowances, prime cost sum is related to the supply of work and materials while provisional sum revolves around the undefined elements or unfinished details. The builder will come up with an estimated allowance with the possibility of requiring extra funds to meet the actual costs. Buyers should be prepared to space out their expenses and be willing to make adjustments to keep in track with the original budget.

Thinking of building your own home and looking for financial advice? Book a call to get free independent advice from iBuildNew today or call 1800 184 284 to chat with our team of experts.

Davina Deluao

Davina graduated from Swinburne University with a Bachelor of Arts. Through travelling and studying abroad in NYC and LA, her interests for property and design grew and have become her strong pursuit.

About

iBuildNew is the market leading aggregator dedicated to residential home construction and land development. As an independent platform, iBuildNew helps Australians identify and compare new home designs, house and land packages and land estates. It’s the smart way home buyers, who are considering a new build, can find the ideal options to match their individual needs. Home building is a big decision, we make sure you get it right.

You may also like

Jul 28, 2020

Stamp Duty Temporarily Paused For First Home Buyers ...

This article was originally posted on www.ibuynew.com.au Good news for first home buyer...
Read More
Aug 06, 2020

Vic Gov announces a 3-month extension on HomeBuilder...

This article was originally posted on www.ibuynew.com.au Victorian Homebuyers worried a...
Read More
Sep 02, 2020

Our Tips For Choosing A House And Land Package

For many first-time homeowners, choosing a house and land package is an easier alternat...
Read More
Sep 02, 2020

Buying A Property? Here Are The Inspections You Need...

We know finding your dream house can be difficult and when you finally do, it’s natural...
Read More
Aug 04, 2020

How Will Stage 4 Restrictions Impact The Building An...

PLEASE NOTE: This article is being updated as new information is announced by Premier D...
Read More
Sep 10, 2020

Your Land Is About To Be Registered. What Happens Next?

This piece was written in association with Eden Brae Homes. Your deposit has been paid ...
Read More

Get more from

Browse House and Land Packages