Cost of House Building

Nowadays, there are so many factors that come into play when estimating the cost of house building that it is always a good idea to get pen, paper and calculator out, sit down and start guesstimating. This way, individuals and families with plans to build a new house can set realistic financial expectations, keep within their budget and be happy with the final residential building.

In the following paragraphs, the most important factors and steps that affect the cost of building a new house will be discussed. Keep in mind that each locale will have its own set of benefits to enjoy and challenges to overcome from the cost of the land to the price of the building materials, the local permits and the contractor fees.

Cost per Square Metre

In Australia, the average cost per square metre of residential space varies. It should be noted that dollar value cost-per-square-metre figures can be misleading because averaging lumps together significant cost-saving measures on one hand and decadent lifestyle additions on the other hand.

Consider this: A middle-income family can build a house for $300,000 but a multi-millionaire will build a house worth $10 million. When these two figures are combined, the result is $5.05 million average cost of house building. The said figure is not a true representation of the actual cost of building a new house based on the homeowner's unique needs and wants in the structure.

With that being said, we strongly recommend scrapping average costs of building a house so as to avoid setting unrealistic expectations. Instead, your best bet is to approach a local building contractor who can provide his expert opinion on estimating the total costs for your house based on your building plans.

ANd if you want to be really certain of level-headed, accurate advice . . . and a best value, best quality new home at the end of it - call Building Buddy 1800 710 102. It's free!

Site Preparation

Aside from the cost of the land itself, the cost of actually preparing the land so that the foundation can be built should also be factored in. If the land is already flat, stable and ready for occupancy, then the cost of house building will be less. If the land still requires additional work like clearing trees, grading and other site preparation activities, then you can expect the costs to substantially add up.

Consider the Size and Shape

The size and shape of the house have significant impact on the total costs of building it. The general rule is "the larger the floor area, the higher the costs" for obvious reasons. The more unique the shape of the house with plenty of angles and corners, the higher the costs will be, too.

Think of it: When your house follows the basic rectangle shape, it will be less costly to build than a house with unique shapes like circles, towers and turrets.

Add in Personal Design Preferences

When building a home from scratch, the homeowner's personal design preferences will be reflected in the building plans. Each unique feature will obviously add or subtract from the total costs to build.

For example, a luxurious bathroom with a Jacuzzi will cost more than a basic bathroom with just a run-of-the-mill tub.

Or a kitchen with all the bells and whistles from the cabinets to the granite countertop will dig deep into the pockets.

Indeed, the cost of house building is inseparable from the add-ons that the homeowner wants to put into a basic building design. The more luxurious the needs and wants in a home, the greater the cost will be.

Factor In Market Conditions

And then there are also the market conditions to consider. Because of inflation, market cycles and other economic factors, the cost of building a new home can increase by 2 to 5 percent a year. Of course, the state of the housing market should also be considered - if the market is on a bust cycle, housing costs are lower while a market on a boom cycle can mean higher costs.

Estimate the Costs on a Detailed Basis

Now, when all of the abovementioned factors have been considered, the next step is to add up all the possible expenses. Each possible expense in the following list is presented as a percentage of the total cost, which holds true for majority of cases:

Permits, fees and surveys - 1%
Utilities - 15%
Excavation and Foundation - 10%
Timber and Other Materials - 40%
Labor - 25%
Miscellaneous Expenses - 9% (Yes, the unforeseen expenses must be included in the budget)

In the end, the cost of house building is as unique as a house itself. Call Joh Domingo 1800 710 102 for a free Building Buddy expert opinion. Let Joh know your own needs and wants in your prospective new home, and then him do all the hard work, creating your free step-by-step outline: What you need to do to get a top quality, top value home at a cost that matches your budget.

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