If you are considering building a new home, then you definitely would have considered what your budget might be.
Trying to work out how much money you’ll need isn’t easy, but knowing how the overall cost of a home is calculated is helpful.
There are 4 elements that will make up the overall cost of your new build:
- The cost of your block of land
- The cost of the house design you have chosen
- The cost of the site works
- The cost of your home’s finishings
The Cost Of Your Land
This one is pretty self-explanatory: the cost of the land you have picked will make up part of the overall cost of building your home.
Land prices vary massively, depending on size and location. It is up to you where you wish to live, obviously if you are looking to live close to the beach or a river, it will cost a lot more.
Just remember not to blow so much on your budget that you don’t have enough to build the home you desire, or a house design that fits in with the area you have chosen.
You don’t want to buy a hugely expensive block of land in a street full of 2 storey homes, only to find you can just afford a single storey home. This could make your home harder to sell at a later date, and is therefore not a good investment.
The Cost Of The House Design You Have Chosen
House prices vary greatly, so you need to know exactly what you can afford. It is a good idea to look around at multiple display homes, as this will help you see what you can get with the money you have available. Obviously everyone’s family and lifestyle is unique, and so the home design you choose should reflect that.
The Cost Of The Site Works
The work related to getting your block of land ready to build on is known as site works, and unlike choosing land and a home design, you don’t have much control over these.
They are a necessary part of building, but the cost isn’t a standard price. How much you will need to pay can vary depending on where your land is, and what the land/soil is like. If your block is full of rocks or limestone, or has a large slope, then your site works will most likely be more expensive.
The Cost Of Your Home’s Finishings
Ensure you know exactly what is and isn’t included in the standard price of your home, as it can be a bit of a shock to find you have to pay a lot more to get the finishes you want.
Ask your builder if the following finishings are included:
- Lighting fixtures
- Window furnishings
- Internal wall painting
- Floor coverings
There is definitely a lot to consider when trying to figure out your budget, so make sure you ask questions and understand what you are paying for.