5 Hidden Costs of Building a Home
Building your home is an exciting journey. It is important to do your research on the building process and note that there are some hidden costs of building and finishing off you new house. Here are 5 common costs that you may not be aware of upfront, to keep in mind.
Land registration and location
If you have bought a new block of land, keep in mind the location from builders you are considering. If your land is further remote then some builders may require a surcharge for suppliers and trades travel as well as additional insurances. There is also the stamp duty component on the land also, so keep that in mind when considering loan applications and costs.
Preparing your land for the build can mean paying additional costs for services you might not have considered. Prices can often be over or underestimated by sales representatives simply due to not having all relevant land documents to access. This is required so that engineers can then determine the slab design requirements. Soil and survey tests are necessary for the engineers to make recommendations for the builders which then gets drawn and priced in your contract. Depending on the result of these tests, additional work may be required to prepare the land for construction. During this stage you may also find extra costs in changes to designs due to slopes or other aspects of your land. For fixed costs packages, speak to our consultants who can offer these solutions.
Change of Mind and Modifications
You might not have considered the possibility of change of mind. If you decide to alter your design plans at any stage once costsing has been done, you could be dealing with additional costs as well as extra time added onto your build. Once you decide on the plan make sure you are 100% satisfied before you move forward with this, as any changes can also affect energy rating and costs are then also out of the hands of builders on those occasions.
Charges for conveyancers or solicitors can vary. It is highly recommended that you go through a professional when handing over title to avoid anything that can be missed for general peace of mind. Requesting an itemised statement for services from your conveyancer is best way to ensure upfront costs..
Idea of completion
What some of us may consider home complete can vary and conflict with the builders ideas of basic finishings. When browsing building packages and quotes, you might find that a few things are missing. This can often happen with flooring, basic electrical works, cooling etc. Once your home is built you will have to then pay extra to have these finishing touches put in, and you may find yourself with a bigger bill than you were first estimated. During the planning of your budget it can be a good idea to allow flexibility for additional costs or purchases – this will avoid a last-minute struggle to save or borrow money. If you don’t want to have to do this homework yourself, chat to our consultants for turn key package options.