Hidden Costs of Building a Home
Building your own home is a wonderfully creative and rewarding experience. Though the initial stages can also be confusing when deciding on your Custom Home Builder. Comparing services, inclusions and pricing can be overwhelming.
Additionally, there are a few costs that cannot be ‘fixed costs’ prior to project commencement. This list has been compiled to ensure you are aware of these costs and can speak to your Custom Home Builder about how much you should expect to pay for these things.
There should always be open and honest communication between yourself and your Custom Home Builder. Don’t be afraid to ask questions to ensure your expectations are what occur.
Potential Hidden Costs
Services
If your allotment has no available services such as electricity/gas/water/storm water/sewer/NBN available at the allotment, then applications need to be made to relevant authorities to have these services made available. An assessment for all these services needs to be made by the relevant authorities. The costs associated with the reticulation of these services are unknown until these assessments have been completed. If building a single dwelling, more often than not these services are readily available to accommodate a single dwelling. However when developing multiple units, additional services such as electricity/gas/water/NBN are required to accommodate the additional dwellings and therefore are at additional cost of the owner.
Home Owners Warranty Insurance
Domestic Building Insurance is a mandatory requirement for all building contracts that exceed $16,000. This insurance is provided by a builder and can be claimed in cases where the builder dies, goes bankrupt or otherwise cannot be found. Ensure with your Custom Home Builder that this fixed cost will be included in your building contract. A building permit cannot be obtained without the Insurance Certificates as the building surveyor will not issue the building permit until the certificates are issued. Furthermore a builder is not entitled to claim the maximum 5% contract deposit until the Insurance Certificates are issued.
Council and Work Health and Safety Requirements
Speak to your builder and ensure these things are included in your contract. Council and WH&S requirements can include the following:
- Temporary Fencing
- Site Toilet
- Asset Protection Permit
- Termite Protection (if required)
- Bushfire Attack Level (BAL) conditions (if applicable)
- Crossover Protection
- Sediment Control
- Perimeter Guardrail Safety Barrier
Site Costs
Site access difficulties, the fall of the land and poor soil quality can have an enormous impact on your budget.
A soil test and a land survey are the two initial things conducted on your block of land when you decide you’re going to design and build. This can cost upwards of $2,500. The two tests are carried out in the design phase of your project.
Soil Test
A Soil Test is conducted by a Geo Technician who drills two to three small holes on your Lot of land to a certain depth and analyse the soil. Your soil will be given a rating that determines the engineering of your foundations. If you have soft clay or another type of ‘reactive’ soil, it’s likely to be more expensive to build. In these cases special measures like bored piers, screw piles or a heavily engineered concrete slab design may be required in order to ensure a stable foundation for your new home.
Land Survey
A land survey involves measuring the dimensions and slope of your land. A report is then prepared and provided to the builder. The plans for your custom home may need to be adjusted based on the slope. Usually the larger the slope, the greater your costs will be.
After completing these tests, working drawings such as architectural plans and structural engineering drawings are based on the soil test and land survey report results. However, site costs may still vary, as your builder has no way of knowing the exact soil conditions until the site is prepared for the foundations.
Upgrades to Fixtures and Fittings
Your fixtures and fitting costs can vary. For example, a laminate island bench might cost less than $1,000 whereas the same in marble could be $16,000.
As well as doing your due diligence with the required costs above, you should think in the same way about the nicer things that you want in your home.
Once your home has been fully designed, the details of these items should be included in the building contract and specification. This way you can make an informed decision before you commit. If later you change your mind however, this may be a variation to your costs.
Remember this is your home, and your money. Take your time, and know the options that are available to you. Your builder should work and communicate with you to create your home the way you have dreamed it to be.
If you are looking for professional guidance to help you build your dream, give delcon a call today on 1800 335 266 or get in touch via email info@delcon.net.au.