budgeting for building: costs to consider during construction
Committing to new home building can be an exciting period for anyone, especially those undertaking property construction for the first time in their lives. You are put into the driver's seat and have the opportunity to create the ultimate living space for you and your family.
However, building your own home can be an expensive experience, and it can be easy to lose sight of your financial limitations when you're swept up in the thrill of designing your home.
For example, when it comes to purchasing the land needed for construction, you should be aware of the various costs associated with purchasing lots. Stamp duty and settlement costs can be an unpleasant surprise for those unaware of their financial obligations.
Furthermore, with the increasing prices of land, it isn't uncommon for this to comprise up to 50 per cent of your overall costs. This highlights the importance of maintaining a succinct and accurate budget, to ensure your spending doesn't run away from you.
Site and Demolition Costs
After purchasing your land, you may think you're ready to begin construction. But more often than not, there will be costs associated with preparing the site before building can begin.
Retaining walls, levelling blocks, tree removal, preparing the site for essentials like gas and water, or even demolishing the remnants of an older home are all aspects to be considered and factored into your overall budget.
When building a pre-designed home, it could be worth investigating exactly what is included in the project. Sometimes, things in the pictures and display homes are not included in the construction package.
Understanding what is and isn't included can help you to create a post-construction budget, which you can use to fill out the home with various products and features that weren't included with the project package.